Kempen Non-Directional Partnership - Class F

Profile

Kempen Non-Directional Partnership (KNDP) is a fund-of-hedge-funds with a diversified exposure to hedge fund strategies. The portfolio typically consists of 10 to 20 underlying hedge funds. The fund has an unconstrained mandate and can invest in a wide array of primarily non-directional strategies, ranging from relative value strategies (e.g. arbitrage and long/short equity with limited directionality) to event driven strategies. The fund can invest in all asset classes and the structure of the fund also allows for investments in less liquid opportunities like distressed debt.

Hedge funds are sourced through an extensive industry network that shares a preference for focused, independent investment managers above the larger traditional asset managers. The concentrated investment approach allows for a thorough due diligence process that is executed by an experienced and specialized team. The members of the Investment Committee have an average industry experience of over twenty years.

The objective of the fund is to generate a long-term return in excess of Euribor + 2%.

Management team

Michiel Meeuwissen, Remko van der Erf, Igor Puljic, Jeanne Spronck

Performance per 2018-06-30 (rebased)

No chart data available

Performance per 2018-06-30

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  Fund
1 month -0.0 %
3 months -0.2 %
This year 1.2 %
2015 -0.4 %
2016 3.6 %
2017 6.2 %
1 year (on annual basis) 3.8 %
3 years (on annual basis) i 3.0 %
5 years (on annual basis) i 3.2 %
Since inception (on annual basis) i 4.1 %
Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 115.98 M 2018-06-30
Share class size
EUR 82.76 M 2018-06-30
Number of shares
580,025 2018-06-30
Net Asset Value i
EUR 142.69 2018-06-30
Kempen Non-Directional Partnership (the Sub-Fund) is a sub-fund of Kempen Alternative Investment Fund Sicav (the “Fund”), domiciled in Luxembourg. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

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 on the website of KCM (www.kempen.com/investmentfunds). The Subfonds is registered for offering in a limited number of countries. The countries where the subfund 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 Q2-2018, KNDP (Class B) produced a return of -0.1% versus reference indices that were -0.6% (HFRX Global Hedge Fund EUR Index, ‘HFRX’), +3.3% (MSCI World, TR, hedged to EUR), and -0.9% (Citigroup WGBI EMU Govt, TR, EUR). This puts YTD numbers at +1.2%, -2.5%, +0.6%, and +0.5%. The fund’s USD share class (Class I-USD) has generated a YTD return of +2.4%.

On a 5-years’ basis, KNDP produced a net return of Euribor + 3.4% with an equity beta of 0.16 versus the long-term target to generate a net return of more than Euribor + 2% with an equity beta of less than 0.15.

The second quarter of 2018 was characterized by emerging market weakness and politics-driven turbulence in Italy. Whilst developed market equities (MSCI World, TR, hedged to EUR) finished the quarter at +3%, the opposite was true for emerging markets. The MSCI Emerging Markets (TR) was -3% in local currencies and within the region China was the weakest with a return of -10% (A-Shares, CSI 300 Index, TR). In addition to weak equity markets, emerging market currencies were also down across the board. The most notable examples were the Brazilian Real (-30% versus the US Dollar), the Argentinian Peso (-15% versus the US Dollar), and the Turkish Lira (-9% versus the Euro). Finally, emerging/periphery government bonds were also down for the quarter with examples including Brazil (10y government bonds -8%) and Italy (10y government bonds -7%). Away from emerging markets, US and European equities performed solidly and the USD strengthened versus most other developed market currencies.

This environment proved difficult for one emerging markets-focused manager, whilst all other managers were insulated from EM-turbulence. Credit / Distressed managers (+2.0%, contributing +0.28%) and Structured Credit managers (+2.2%, contributing +0.31%) generated gains across sectors (from corporate restructurings to residential mortgage backed securities) and across situations (examples including Steinhoff and Caesars). The group of Macro / Systematic managers (-4.0%, detracting -0.78%) includes two winners, but their contributions were more than offset by losses from an EM-focused macro manager. Multi-Strategy / RV (+0.8%, contributing +0.02%) and ILS (+1.6%, contributing +0.03%) had a modest positive impact
on quarterly performance.

More information can be found in the Investment Letter on the documents page of this fund.

Portfolio developments per 2018-06-30

On the individual manager level 13 out of 15 core holdings (excluding holdings < 1%) contributed positively with the following top-3:
1. OZ Credit Opportunities (+3.9%, contributing +0.24%). This manager was profitable across longs (Corporate Credit and Structured Credit) and hedges (Government Bonds). Corporate Credit performance was driven by a range of situations including (a) a successful sale of Tropicana Entertainment to Gaming and Leisure Properties, (b) long positions in exploration & production companies which were helped by positive sentiment in the Energy sector, (c) Caesars (traded up as sector valuations increased), and (d) Steinhoff (bonds rebounded after weak performance in February/March). Structured Credit gains were also idiosyncratic in nature, and Italian government bond shorts were profitable in the hedge book.
2. Silver Point (+2.4%, contributing +0.20%). This Credit / Distressed manager also generated gains on long positions in Steinhoff and Quality Care Properties.
3. Diameter (+3.1%, contributing +0.19%). Among this Credit / Distressed manager’s profitable positions was satellite services company Intelsat, which benefited from news that the industry’s regulator FCC seemed open to allowing the company to use its spectrum for 5G technology.

There was one material detractor:
Pharo Gaia (-10.4%, detracting -0.83%). Following a very strong period (+14% in 2016, +27% in 2017 and +5% in Q1-2018) this EM-focused macro manager was hurt by EM-weakness in Q2-2018. A wide range of sovereign credit longs (including Argentina, Venezuela, and Turkey) as well as local rates longs (most notably Brazil) detracted from performance. In addition, a long position in Italian government bonds which had been profitable in Q1 was loss-making in April and it was cut early on in the month.

At the start of May, we added Ionic Volatility Arbitrage Fund II to the portfolio. Ionic is a specialist volatility manager, established in 2006 by a team that has worked together since the mid-1990s. The firm manages $3bn and almost 80% of that is in a long volatility strategy that they started in 2013 when the opportunity to be long volatility with a positive roll yield first presented itself. The most interesting risk/reward is found in Interest Rates markets and this is where over half of the portfolio risk is allocated. The balance of the portfolio is mainly invested in FX (about 20%) and Credit (about 20%). What remains is a modest sliver in select Equity and Commodity markets where it is possible to be long volatility without a negative carry/roll-down. The strategy is expressed through liquid plain vanilla instruments including forward-starting straddles (combination of puts and calls, such that it doesn’t matter whether volatility is caused by a big move up or down in the underlying market). We are excited about this new addition both because of its stand-alone risk/reward potential and because of the potential diversification benefit to the broader portfolio. The portfolio consists of 15 holdings (>1%)

During the quarter, look-through net equity exposure remained unchanged at 6%. Look-through corporate credit exposure decreased from 13% to 11%.

More information can be found in the Investment Letter on the documents page of this fund.

Kempen Non-Directional Partnership (the Sub-Fund) is a sub-fund of Kempen Alternative Investment Fund Sicav (the “Fund”), domiciled in Luxembourg. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

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 on the website of KCM (www.kempen.com/investmentfunds). The Subfonds is registered for offering in a limited number of countries. The countries where the subfund 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
1 month -0.0 %
3 months -0.2 %
This year 1.2 %
2015 -0.4 %
2016 3.6 %
2017 6.2 %
1 year (on annual basis) 3.8 %
3 years (on annual basis) i 3.0 %
5 years (on annual basis) i 3.2 %
Since inception (on annual basis) i 4.1 %
Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future.

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 -4.37 % -5.10 %
Tracking error i 2.66 % 2.66 %
Information ratio i 1.60 1.44
Beta i 0.45 0.46
Kempen Non-Directional Partnership (the Sub-Fund) is a sub-fund of Kempen Alternative Investment Fund Sicav (the “Fund”), domiciled in Luxembourg. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

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 on the website of KCM (www.kempen.com/investmentfunds). The Subfonds is registered for offering in a limited number of countries. The countries where the subfund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

More information can be found in the the document Facts and Figures on the Documents page of this fund.

Kempen Non-Directional Partnership (the Sub-Fund) is a sub-fund of Kempen Alternative Investment Fund Sicav (the “Fund”), domiciled in Luxembourg. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

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 on the website of KCM (www.kempen.com/investmentfunds). The Subfonds is registered for offering in a limited number of countries. The countries where the subfund 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
0.75 %
Service fee i
0.08 %
Taxe d'abonnement i
0.05 %
Indirect costs i
1,94% (estimate excl. possible performance fees)
Ongoing charges last financial year i
2.82 %

Other costs

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Entry fee
0,00 %
Exit fee
0,50 %
Kempen Non-Directional Partnership (the Sub-Fund) is a sub-fund of Kempen Alternative Investment Fund Sicav (the “Fund”), domiciled in Luxembourg. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

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 on the website of KCM (www.kempen.com/investmentfunds). The Subfonds is registered for offering in a limited number of countries. The countries where the subfund 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
F i
Investor type
Institutional & Private
Distributing
No
Reference index i
HFRX GI Hedge Fund USD
Objective
To generate a long term return in excess of Euribor +2%
Investment category
Hedge Fund Solutions
Universum
Global multi assets
Inception date
2009-10-01
Domicile
Luxembourg
May be offered to all investors in
The Netherlands
May be offered to professional investors only in
Luxembourg, United Kingdom
UCITS status i
No
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Management company
Kempen Capital Management N.V.
Custodian
J.P. Morgan Bank Luxembourg S.A.

Tradability

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Listed
no
Subscription/Redemption Frequency
Subscriptions monthly on the first business day, redemptions quarterly, on the first business day of January, April, July and October
ISIN i
LU0452418154
Entry period purchase order
In order to be executed, orders must be received by J.P. Morgan Bank Luxembourg S.A. 5 business days before the dealing day. Your distributor may use longer entry periods.
Entry period sell order
In order to be executed, orders must be received by J.P. Morgan Bank Luxembourg S.A. 90 calendar days before the dealing day. Your distributor may use longer entry periods.
Details
Settlement for subcriptions is due 5 business days before the applicable dealing day. Settlement for redemption will normally take place within 19 business days after the appllicable dealing day.
Kempen Non-Directional Partnership (the Sub-Fund) is a sub-fund of Kempen Alternative Investment Fund Sicav (the “Fund”), domiciled in Luxembourg. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

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 on the website of KCM (www.kempen.com/investmentfunds). The Subfonds is registered for offering in a limited number of countries. The countries where the subfund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future.
Kempen Non-Directional Partnership (the Sub-Fund) is a sub-fund of Kempen Alternative Investment Fund Sicav (the “Fund”), domiciled in Luxembourg. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

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 on the website of KCM (www.kempen.com/investmentfunds). The Subfonds is registered for offering in a limited number of countries. The countries where the subfund 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

  • As we invest in hedge funds, we don't actively choose to invest in a certain company.
  • During our thorough due diligence process we ask managers what efforts they make regarding responsible investing.
  • Also, we check on as annual basis whether our funds have any exposure to the companies on our exclusion list.
  • We hope that by continuing to ask our managers about their ESG and RI policy, they will start considering formulating an RI policy especially if faced with similar queries from other investors.
  • When a manager is or becomes a signatory or informs us about a RI policy they are using, we open a dialogue to discuss the topic and find out what drove them to their current RI stance.
Kempen Non-Directional Partnership (the Sub-Fund) is a sub-fund of Kempen Alternative Investment Fund Sicav (the “Fund”), domiciled in Luxembourg. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Sub-Fund is registered under the license of the Fund at the The Netherlands Authority for the Financial Markets.

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 on the website of KCM (www.kempen.com/investmentfunds). The Subfonds is registered for offering in a limited number of countries. The countries where the subfund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future.