Kempen (Lux) Global Small-cap Fund - Class I GBP

Profile

Kempen (Lux) Global Small-cap Fund (the Fund) invests primarily in global smaller listed companies, with maximum market value at the time of the initial purchase of €4bn, or the highest value of any company included in the benchmark, whichever is greater. The benchmark is the MSCI World Small Cap Index. The Fund primarily aims to generate a better long-term return than the benchmark.

The portfolio construction process involves a disciplined end to end framework initially utilizing proprietary in-house stock filters screening for high quality and attractively valued stocks. Thereafter, fundamental in-house research is carried out to identify high conviction investment ideas. The end result is a portfolio of approximately 60 - 90 stocks, well diversified across all regions and sectors.

Management team

Jan Willem Berghuis, Maarten Vankan, Chris Kaashoek, Luuk Jagtenberg

Performance per 2018-06-30 (rebased)

No chart data available

Performance per 2018-06-30

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  Fund Benchmark
1 month -0.7 % 0.5 %
3 months 10.5 % 9.7 %
This year 5.2 % 5.2 %
2015 6.0 % 5.5 %
2016 46.2 % 34.4 %
2017 17.1 % 12.0 %
1 year (on annual basis) 14.7 % 13.0 %
3 years (on annual basis) i 21.5 % 16.7 %
Since inception (on annual basis) i 17.8 % 15.5 %
As of 30 June 2018 a deviating Net Asset Value (NAV) is used for the calculation of the performance figures. This NAV is calculated based on closing prices of the Fund investments thereby deviating from the NAV which was originally issued and partly calculated based on snapshots (Asia & Pacific investments). The deviating NAV is used to make a better comparison with the benchmark, which is also solely based on closing prices of the investments.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 413.41 M 2018-06-30
Share class size
GBP 87.32 M 2018-06-30
Number of shares
87,710 2018-06-30
Net Asset Value i
GBP 995.56 2018-06-30

Fund characteristics per 2018-06-30

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  Fund Benchmark
Number of holdings 70 4390
Dividend yield i 1.88 % 1.84 %
Weighted average market capitalization i EUR 2,408 M EUR 2,869 M
P/E ratio i 10.34 17.47
Active share i 97.77 %
Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Market developments per 2018-06-30

In June the Fund (I-class) was down 1.2%, versus a 0.4% decline of the MSCI World Small-cap index. Year-to-date, the Fund (I-class) is up 5.9% vs the benchmark return of 5.6%. The outperformance in H1 2018 was realised despite some style headwind as indicated by the MSCI World Small-cap value index which returned only 3.0% in the first half of 2018. At the end of June, Morningstar published its first qualitative analyst review of the Fund. We are very pleased to have received a Bronze qualitative rating from the Morningstar analysts in addition to our 5-star Morningstar rating based on performance.

Three top contributing stocks during the month of June were LHC Group (+11%), Synaptics (+19%) and Sparebank SR1 (+10%). LHC Group, a US home health provider, presented at several broker conferences in June. The key take-away from the management presentations was the integration of the Almost Family acquisition that is tracking ahead of plan. Furthermore the regulatory environment is improving for the home health industry, which is also supporting the shares. Synaptics, a pioneering human interface technology, confirmed on 19 June that it is engaged in discussions with Dialog Semiconductor plc regarding the potential acquisition of Synaptics by Dialog. We think a deal makes sense for both companies and we shared our view on the current situation in a (non-public) letter to the Board of Directors of Synaptics. There is no assurance however that a transaction will result from these discussions. Sparebank SR 1 shares recovered from a weak start of 2018. The company announced a small one-off gain in one of its subsidiaries and a merger of the insurance activities in which it has a 19.5% stake with the non-life insurance activities of DNB. Both announcements are small positives for the shares. We also met with the management last month. The CEO believes the worst is behind in terms of oil related loans, as industry conditions have improved and loans have been restructured and appropriate loan loss provisions have been taken.

Negative contributors in June were Luxfer (-8%), US Silica (-17%), and First Solar (-22%). The shares of Luxfer declined by 8% in the month of June, after the share price had rallied 37% in May. The strong performance in May was not only driven by solid fundamentals, but also by the expectation that Luxfer would be included in a US small-cap equity index. This not happening, caused somewhat of a disappointment by the financial market. US Silica was down 17% in June, after a strong run up in the past two months. Takeaway capacity constraints in the Permian have led to the horizontal rig count plateauing and the market worrying that well completion activity, where US Silica's sand is used, would slow. In our view, with WTI crude above $70, other oil-producing basins will pick up the slack and the market for sand will remain very tight, at least in the near future. Most of US Silica's production capacity will be sold at solid margins under long-term contracts with blue-chip customers, which should lead to sizable free cash flow growth in the back half of the year. First Solar's stock price was down 22% last month after the Chinese government reduced its installation target for 2018. Since China is 40% of global demand this could lead to a small reduction in global demand in 2018 as other regions are not able to fully compensate for this decline. The expected ASP pressure due to the potential oversupply has weakened the short-term outlook for the solar industry. First Solar's shares declined less than its peers as the company has a strong orderbook that gives visibility till mid-2020. We remain positive on First Solar as the underlying long-term demand is healthy and First Solar latest technology (Series 6) has the lowest cost price per watt in the industry. Moreover, the strong balance sheet and solid orderbook provides downside protection.

 

The latest Quarterly you will find here.

Portfolio developments per 2018-06-30

The Fund invests world-wide in smaller companies (small-caps). One attractive feature of small-caps is that they are generally monitored by a small number of analysts, which leaves plenty of opportunity to add value as active investors. When looking for new investment opportunities, screening is applied to reduce the investment universe to a manageable size of 500 companies. We screen for companies that are of above-average quality and that are attractively valued. Extensive fundamental analysis is done on both existing portfolio companies and new portfolio candidates. This includes analysis of the company’s public filings (like annual reports) and comprehensive dialogues with the management teams of companies that we invest in. For each stock we base our investment decision on an extensive investment case, which is supported by a proprietary financial model. ESG topics (Environmental, Social and Governance) are fully integrated in our investment process. The result is a well-diversified portfolio of 60-90 companies spread across sectors and regions. Many portfolio companies have leading positions in the niche markets in which they operate. The companies in the portfolio typically have robust balance sheets and high returns on capital employed, which indicates that these companies are structurally capable of increasing shareholder value via their operations. The portfolio has a more attractive price earnings ratio versus the benchmark.
Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Performance per 2018-06-30 (rebased)

No chart data available

Performance per 2018-06-30

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  Fund Benchmark
1 month -0.7 % 0.5 %
3 months 10.5 % 9.7 %
This year 5.2 % 5.2 %
2015 6.0 % 5.5 %
2016 46.2 % 34.4 %
2017 17.1 % 12.0 %
1 year (on annual basis) 14.7 % 13.0 %
3 years (on annual basis) i 21.5 % 16.7 %
Since inception (on annual basis) i 17.8 % 15.5 %
As of 30 June 2018 a deviating Net Asset Value (NAV) is used for the calculation of the performance figures. This NAV is calculated based on closing prices of the Fund investments thereby deviating from the NAV which was originally issued and partly calculated based on snapshots (Asia & Pacific investments). The deviating NAV is used to make a better comparison with the benchmark, which is also solely based on closing prices of the investments.

Dividends

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Distributing
No

Risk analysis (ex post) per 2018-06-30

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  3 years Since inception
Maximum drawdown i -6.89 % -10.75 %
Tracking error i 5.15 % 5.00 %
Information ratio i 0.91 0.46
Beta i 0.89 0.91
Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Top 5 contribution (2018-06-30)

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  Contribution i Performance i
LHC Group 0.29 % 11.15 %
Synaptics 0.26 % 18.20 %
SpareBank 1 SR-Bank ASA 0.18 % 10.49 %
Hikma Pharmaceuticals 0.10 % 10.13 %
TGS Nopec Geophysical 0.10 % 9.35 %

Bottom 5 contribution (2018-06-30)

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  Contribution i Performance i
First Solar -0.54 % -21.39 %
U.S. Silica -0.30 % -16.77 %
Luxfer (US) -0.27 % -7.97 %
Enersys -0.16 % -6.41 %
Hitachi High Technologies -0.15 % -10.64 %

Geographic allocation (2018-06-30)

61.6 %
North America
24.2 %
Europe Middle East and Africa (EMEA)
11.0 %
Japan
2.0 %
Asia Pacific ex Japan
1.3 %
Other
Totaal
100 %
The cash position is included in ‘Other’.

Top 10 holdings (2018-06-30)

3.1 %
Luxfer (US)
3.1 %
Trinity Industries
3.1 %
Thermon Group
3.0 %
Dena
2.9 %
Brunswick
2.8 %
LHC Group
2.7 %
Western Forest Products
2.5 %
Spirit Airlines
2.5 %
First Solar
2.3 %
Enersys
Totaal
28.1 %

Sector allocation (2018-06-30)

26.4 %
Industrials
22.6 %
Financials
13.2 %
Technology
11.1 %
Consumer goods
10.3 %
Consumer services
5.9 %
Health Care
5.9 %
Basic Materials
2.4 %
Oil & gas
1.3 %
Other
0.9 %
Telecommunications
Totaal
100 %
The cash position is included in ‘Other’.
Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Ongoing charges

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Management fee i
0.70 %
Service fee i
0.20 %
Taxe d'abonnement i
0.01 %
Expected ongoing charges i
0,91 %

Other costs

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Upward swing factor i
0.30 %
Downward swing factor i
0.25 %
Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Share class details

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Share class
I - GBP i
Investor type
Institutional
Distributing
No
Benchmark i
MSCI World Small Cap Index
Investment category
Small-caps
Universum
Global Small- & Mid-caps
Inception date
2018-06-22
Domicile
Luxembourg
May be offered to professional investors only in
Luxembourg, The Netherlands, United Kingdom
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
GBP
Management company
Kempen Capital Management N.V.
Custodian
J.P. Morgan Bank Luxembourg S.A.

Tradability

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Minimum subscription
Initial subscription €50,000, additional subscriptions €10,000
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU1833119990
Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future.
Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

KCM Vision

Kempen Capital Management is an asset manager with a long-term investment approach. We strongly believe in engaged shareholdership that benefits all stakeholders. As a long-term responsible investor, we firmly believe that active ownership and shareholder engagement contribute to positive change across the board.

Our KCM wide approach to responsible investment

To put our vision into action we engage with our investment targets on a wide array of strategic, financial, environmental, social and governance (ESG) topics. Our long-term investment worldview paired with thorough analysis and an experienced and diverse ESG team allow us to use both voting and engagement as means to consistently encourage positive change. Through this process of constructive engagement, we are able to contribute to the development of principles and standards of corporate responsibility within companies that we invest in. Our full voting records are available here.

Our fund approach to Responsible Investment

Exclude

Screen on controversies using MSCI ESG research

Exclude companies based on UNGC criteria

Exclude tobacco, weapons producers, pornography and gambling companies.

Avoid companies with high ESG risk in Quick Scan

Integrate

Form own ESG opinion and score in investment case (1-5)

Look for sustainable business models and practices

Require higher return for lower ESG score

Engage

Review ESG profile of portfolio on quarterly basis

Take responsibility by engaging with companies

Document all engagement and controversial voting items

Kempen (Lux) Global Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future.