- Kempen
- Kempen Lux Global Small cap Fund Class I GBP
Kempen (Lux) Global Small-cap Fund - Class I GBP
This fund/strategy is currently under the soft-close regulation. Please see this link for more information.
Profile
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
Performance per 2021-02-28 (rebased)
Performance per 2021-02-28
Fund | Benchmark | |
---|---|---|
1 month | 8.9 % | 3.1 % |
3 months | 17.0 % | 9.9 % |
This year | 11.8 % | 4.8 % |
2018 | -4.8 % | -8.5 % |
2019 | 19.5 % | 21.3 % |
2020 | 5.5 % | 12.4 % |
1 year (on annual basis) | 35.8 % | 28.6 % |
3 years (on annual basis) i | 11.7 % | 10.2 % |
5 years (on annual basis) i | 17.2 % | 14.9 % |
Since inception (on annual basis) i | 14.5 % | 12.7 % |
Key figures
Total fund size | EUR 1,096.56 M 2021-02-28 |
Share class size | GBP 13.41 M 2021-02-28 |
Number of shares | 10,546 2021-02-28 |
Net Asset Value i | GBP 1,376.23 2021-04-13 |
Turnover rate | 51.86 % |
Morningstar rating â„¢ | |
Morningstar Analyst rating | Bronze |
Fund characteristics per 2021-02-28
Fund | Benchmark | |
---|---|---|
Number of holdings | 64 | 4278 |
Dividend yield i | 1.87 % | 1.50 % |
Weighted average market capitalization i | EUR 3,070 M | EUR 3,655 M |
P/E ratio i | 15.47 | |
Active share i | 97.90 % |
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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.
This fund/strategy is currently under the soft-close regulation. Please see this link for more information.
Developments per 2021-02-28
Three top contributing stocks during the month of February were Teradata (+52%), Thermon (40%) and Dialog (+24%). Teradata was the highest contributor in February with a 52% return and 195bp contribution. The company reported solid Q4 results. Our investment case has not changed. We remain excited about the transformation driven by new CEO Steve McMillan. The journey is still long, but if successful there remains a lot of upside. Thermon’s share price was up 40% in February, continuing its recovery. As one of the leading players in industrial process heating and freeze protection solutions, Thermon is likely to see incremental demand for its products and services as a result of the Winter Storm in the United States. Dialog's stock price rose 24% in February. On February 8 2021, Dialog and Renesas announced they had reached an agreement on a recommended all-cash acquisition by Renesas of Dialog's shares. The proposed acquisition price is EUR 67.5 per share, nicely above our initial entry price of EUR 13.8 in June 2018.
Negative contributors in February were First Solar (-18%), Coresite (-10%), and Bed Bath & Beyond ( 21%). First Solar, a leading North American producer of solar panels, saw its share price decline 18% in February. First Solar performed strongly in 2020 and was one of the top contributors to the strategy's return in that year. We significantly reduced our position late last year, taking profit after the strong run up in First Solar's share price. The long-term investment case is still very much intact and at current levels risk/reward screens attractive again. Coresite's share price, an owner and operator of data centres in North America, declined 9.5% in February as it reported a cautious outlook for 2021. The positive sentiment on the reopening of the economy also did not help Coresite's share price as it is regarded as a defensive stock that is not affected by lockdowns. The share price of Bed Bath & Beyond (BBBY) was down 21% in February. Please remember in the wake of the Gamestop saga in January, BBBY's stock was also bid up significantly and we made a 141% return in January. As we decided to sell about 70% of our holding north of $40 per share in the previous month our loss was very limited in February. We lost 12% of the January gains in the month where the stock came back on earth.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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.
This fund/strategy is currently under the soft-close regulation. Please see this link for more information.
Performance per 2021-02-28 (rebased)
Performance per 2021-02-28
Fund | Benchmark | |
---|---|---|
1 month | 8.9 % | 3.1 % |
3 months | 17.0 % | 9.9 % |
This year | 11.8 % | 4.8 % |
2018 | -4.8 % | -8.5 % |
2019 | 19.5 % | 21.3 % |
2020 | 5.5 % | 12.4 % |
1 year (on annual basis) | 35.8 % | 28.6 % |
3 years (on annual basis) i | 11.7 % | 10.2 % |
5 years (on annual basis) i | 17.2 % | 14.9 % |
Since inception (on annual basis) i | 14.5 % | 12.7 % |
Dividends
Distributing | No |
Risk analysis (ex post) per 2021-02-28
3 years | Since inception | |
---|---|---|
Maximum drawdown i | -30.68 % | -30.68 % |
Tracking error i | 6.59 % | 5.78 % |
Information ratio i | 0.22 | 0.31 |
Beta i | 1.09 |
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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.
This fund/strategy is currently under the soft-close regulation. Please see this link for more information.
Top 5 contribution (2021-02-28)
Contribution i | Performance i | |
---|---|---|
Teradata | 1.88 % | 50.15 % |
Thermon Group | 1.02 % | 39.96 % |
Dialog Semiconductor | 0.81 % | 23.89 % |
Delek | 0.51 % | 30.98 % |
Sleep Number | 0.49 % | 28.24 % |
Bottom 5 contribution (2021-02-28)
Contribution i | Performance i | |
---|---|---|
First Solar | -0.25 % | -17.25 % |
Takuma | -0.10 % | -7.07 % |
CoreSite Realty | -0.10 % | -9.30 % |
Hikma Pharmaceuticals | -0.10 % | -4.90 % |
Bed Bath & Beyond | -0.09 % | -19.92 % |
Geographic allocation (2021-02-28)
Top 10 holdings (2021-02-28)
Sector allocation (2021-02-28)
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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.
This fund/strategy is currently under the soft-close regulation. Please see this link for more information.
Ongoing charges
Management fee i | 0.700 % |
Service fee i | 0.20 % |
Taxe d'abonnement i | 0.01 % |
Expected ongoing charges i | 0,91 % |
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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.
This fund/strategy is currently under the soft-close regulation. Please see this link for more information.
Share class details
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. |
Depositary and custodian | J.P. Morgan Bank Luxembourg S.A. |
Morningstar rating â„¢ | |
Morningstar Analyst rating | Bronze |
Tradability
Minimum subscription | Initial subscription £50,000, additional subscriptions £10,000 |
Listed | no |
Subscription/Redemption Frequency | Daily |
ISIN i | LU1833119990 |
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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.
This fund/strategy is currently under the soft-close regulation. Please see this link for more information.
Factsheets
Annual Reports
Semi- Annual Reports
Key Investor Information
Sustainability related disclosures
Formal documents other
Other
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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.
This fund/strategy is currently under the soft-close regulation. Please see this link for more information.
Kempen's vision & mission
Kempen Capital Management is an asset manager that believes in stewardship and investment focusing on the long-term for the benefit of all stakeholders. Value creation is at the heart of the services we provide to our clients. We believe that being an engaged shareholder on environmental, social and governance (ESG) issues and retaining a long-term focus, is critical to helping our clients to preserve and create sustainable wealth that has positive real world impact and economic returns.
Kempen wide approach to responsible investment
We are committed to create sustainable alpha. The four pillars of our ESG-policy are:
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ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.
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Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.
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Active ownership: Being responsible stewards of our clients’ capital and using our influence through engagement and voting to improve corporate behaviour on specific ESG issues and achieve positive change
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Positive impact: Investing with an objective to achieve positive real world outcomes and impact, such as contributing to the UN Sustainable Development Goals.
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To put our mission and vision into practice we engage with our investee companies on a wide array of strategic, financial, and ESG topics. As an active owner we use our influence to improve our investee companies’ ESG performance. This helps us address some of the most pressing and important sustainability issues facing business and the world. Our focus themes for engagement are: human rights, labour rights, climate change and governance.
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Through collaboration with other investors and industry think tanks we contribute to the development of principles and standards of corporate responsibility both at sector levels, as well as investee company level.
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Our full voting records are available here.Â
Climate change
As a long-term investor, we believe climate change represents a systemic risk facing the economy, society and environment. We want to consider the risks and opportunities this presents to our investments in the coming decades. We have therefore set a long-term commitment (2050), a mid-term ambition (2030) and short-term objectives (2025).
- 2050 commitment: Net-zero investor.
- 2030 ambition: To align with a Paris Agreement pathway (listed and non-listed investments) and Dutch Klimaatakkoord.
- 2025 objectives: To align with a pathway towards achieving the Paris Agreement (listed investments) and Dutch Klimaatakkoord goals.[1]
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The Kempen climate change policy can be found here (under climate change policy).
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[1]We use carbon intensity as a metric to come to the pathway of net-zero emissions. As we care about the direction of travel and reduction of carbon emissions in the economy, it might be that the actual reducing trend may deviate from the suggested average trend line. The pathway is derived from the pathway of the EU Benchmarks.
OUR FUND APPROACH TO RESPONSIBLE INVESTMENT
The investment objective of Kempen (Lux) Global Small-cap Fund is to offer investors the opportunity to invest in an actively and professionally managed portfolio of smaller listed companies worldwide, while at the same time complying with strict exclusion and sustainability criteria.
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By 2025, we aim to align with a pathway towards achieving the Paris Agreement and Dutch Klimaatakkoord goals for our portfolio, as well as the EU Climate Transition Benchmark[2].
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Kempen’s ESG policy is implemented in our fund’s investment process by the following pillars: Exclusion, Integration and Active ownership.
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[2] The EU Benchmarks consists of two climate benchmarks, Climate Transition Benchmark and Paris Aligned Benchmark, which have the aim to reach net-zero emissions by 2050 - in line with the 1.5?C scenarios from the IPCC. As we care about the direction of travel and reduction of carbon emissions in the economy, it might be that the actual reducing trend may deviate from the average pathway. We use carbon intensity (based on Revenues) as the forward-looking climate metric.
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Exclusion & Avoidance
In line with the general Kempen policy, the Global Small-cap Fund excludes all companies on the KCM Exclusion- or Avoidance list.
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Companies that ‘Fail’ or are on ‘Watchlist’ marked against the criteria of the United Nations Global Compact are excluded.
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We determine a company’s ESG score (1-5) and exclude companies with a score of 1. Companies with a score of 2 are excluded on a comply or explain basis.
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More information on our exclusion criteria and thresholds can be found here.
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The Global Small-cap Fund also excludes companies based on additional sustainability criteria as listed in the table below.
 | KEMPEN CRITERIA | ADDITIONAL SUSTAINABILITY CRITERIA |
Business Conduct x    Human Rights x    Labour x    Environment x    Anti-corruption Product Involvement x    Controversial Weapons x    Tobacco x    Thermal coal x    Tar sands x    Adult Entertainment x    Alcohol x    Animal Welfare & GMO x    Gambling x    Power Generation       Nuclear x    Power Generation       Carbon Intensive x    (Un)conventional Oil &       Gas Extraction x    Weaponry |  V V V V  V V V V             |           V V V V V  V  V  V |
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ESG integrationÂ
In the investment process we assess the ESG profile of a company. We assess each company on a case-by-case basis, taking into account material risks in a given industry in combination with the company’s respective risk exposure, practices and disclosure.
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A lower score (1-5) requires a higher return as used in our Discounted Cash Flow (DCF) models. If ESG risks are deemed too severe, an investment in the company will be avoided and/or existing holdings will be sold.
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On a quarterly basis, the Kempen Responsible Investment team screens the holdings of the Kempen Global Small-cap Fund and discusses the findings with the portfolio managers.
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Active ownership: Engagement
As active investors we perform comprehensive engagements with our portfolio companies with the objective to unlock value and reduce risk.Â
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Our engagement process defines clear objectives of which the progress and result is tracked and well documented. If at any stage the company refuses to cooperate, divestment has to be considered.
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In the first half of 2019, we engaged with 20 companies on strategic, environmental, social and governance issues.
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You can find the engagement factsheet of A&F here
You can find the factsheet of Kaiser Aluminium here
You can find the engagement factsheet of Western Forest here
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Active ownership: Voting
Exercising our voting rights is also an essential part of our responsible investment philosophy. ISS provides us with voting recommendations based on our own voting and governance policy. Items are further analyzed on a case by case basis.
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Often, we inform the company about our voting intention ahead of the meeting and, where there is a recommendation to vote against management, we ask the company to clarify their viewpoints. After careful analysis, we form our own opinion and vote accordingly.
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Risks
For more information about the mid and long term risks associated with the investments:
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Although Kempen Capital Management N.V.’s information providers, including without limitation, MSCI ESG Research LLC and its affiliates (the “ESG Partiesâ€), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of any data herein. None of the ESG Parties makes any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
ESG Report






The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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.