Kempen Non-Directional Partnership - Class B

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 2018-04-30 (rebased)

No chart data available

Performance per 2018-04-30

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  Fund
1 month 0.1 %
3 months 0.1 %
This year 1.4 %
2015 -0.3 %
2016 3.7 %
2017 6.3 %
3 years (on annual basis) i 3.0 %
5 years (on annual basis) i 3.5 %
Since inception (on annual basis) i 3.0 %
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 115.21 M 2018-04-30
Number of shares
1,397,349 2018-04-30
Net Asset Value i
EUR 18.13 2018-04-30
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 2018-03-31

In Q1-2018, KNDP (Class B) produced a return of +1.4% versus reference indices that were -1.8% (HFRX Global Hedge Fund EUR Index, ‘HFRX’), -2.7% (MSCI World, TR, hedged to EUR), and +1.4% (Citigroup WGBI EMU Govt, TR, EUR). After a strong January, KNDP fully protected its gain in the ensuing two months, helping it to produce a solid positive quarterly return in an environment where most asset classes were down. On a 5-years’ basis, KNDP produced a net return of Euribor +3.7% with an equity beta of 0.16 versus the longterm target to generate a net return of more than Euribor + 2% with an equity beta of less than 0.15.

After a solid start to the year, surprisingly strong jobs and wages growth in the US led to inflation fears and a spike in volatility, which in turn caused a synchronized global decline in equity markets in early February. Whilst the S&P500 hadn’t seen a down-day of more than -2% for 351 consecutive trading days, there were three of those in the first six days of February. Markets continued to fall as Trump triggered the idea of a potential trade war in March. With that, the MSCI World ended the quarter in negative territory (-3% when hedged to EUR and -4% unhedged in EUR). Regionally and in local currencies, the US (-1%) outperformed Europe (-3%) and Japan (-4%). Meanwhile, rates rose. The 10-year US Treasury rate started the quarter at 2.43%, reached a peak of 2.95% and ended it at 2.74%. German 10-year rates moved from 0.43% to a peak of 0.81% but finished the quarter only modestly higher at 0.50%. Currency markets didn’t move much with the USD weaker against most other currencies. In commodities, prices moved in a jigsaw-like pattern. By way of example, oil (Brent, price per barrel in USD) moved from $67 to $69 over the quarter whilst ranging between $62 and $71 within the quarter.

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

Portfolio developments per 2018-03-31

For the eighth consecutive quarter, Structured Credit managers posted a positive return of more than +2% (+3.2%, contributing +0.54%). Gains were broad-based, driven not only by gains on the long side (RMBS, CMBS, CLOs, and Consumer ABS) but also by interest rate hedges. Although the group of Macro / Systematic managers (+2.1%, contributing +0.30%) includes a systematic trend follower that was impacted by trend reversals in equities and commodities (see next paragraph), this was more than offset by two profitable global macro managers. Multi-Strategy / RV managers performed solidly (+2.4%, contributing +0.48%) with gains across equity market neutral and event driven strategies. Credit / Distressed (+1.1%, contributing +0.05%) and ILS managers (+1.2%, contributing +0.01%) had a modestly positive impact on performance.

On the individual manager level 12 out of 14 core holdings (excluding holdings < 1%) contributed positively with the following top-5:
1. D.E. Shaw Composite (+4.6%, contributing +0.46%). This Multi-Strategy manager is a specialist in and has a large allocation to equity market neutral strategies, helping it to be immune for the February-March sell-off and be profitable in each of the three months in the quarter.
2. Pharo Gaia (+4.9%, contributing +0.38%). This EM-focused Global Macro manager generated gains in rates (short US, long select emerging markets) as well as in sovereign credit (amongst others long Greece, Italy, and Argentina).
3. One William Street (+2.9%, contributing +0.28%). With three positive months in Q1-2018, this Structured Credit manager has now posted positive performance for 25 consecutive months. All long categories contributed positive, RMBS most notably, and so did the interest rate hedges.
4. OZ Credit Opportunities (+3.7%, contributing +0.23%). This manager invests in Structured Credit and Corporate Credit, across the US and Europe, and each of the four buckets contributed to quarterly performance.
5. Bridgewater (+3.7%, contributing +0.23%). This Global Macro manager’s decision ahead of the Februarycorrection to considerably reduce net equity exposure and within that to prefer the US above the rest of the world paid off as it helped to retain gains in equities. Short positions in US Treasuries as well as long positions in select emerging market currencies also contributed positively.

There was one (meaningful) detractor:
1.Transtrend (-6.0%, detracting -0.22%). This price trend follower went into February with elevated net long equity exposure as a result of the strong and prolonged positive trend in this asset class, which hurt performance in the ensuing two months. Positions in commodities were also loss-making due to continuous trend reversals, while modest gains were generated on rates (short US).

After an active Q4-2017, when we added two new managers to the portfolio, whilst redeeming two others, there were no portfolio changes in Q1-2018. The portfolio consists of 14 holdings (>1%).
Look-through net equity exposure decreased substantially, to 6% as two Macro / Systematic significantly reduced their net equity positioning (one global macro manager ahead of the correction, one trend follower in response to the trend reversal). Whilst these two managers accounted for 9% of the net equity exposure at the end of 2017, by the end of Q1-2018 they actually detracted almost -2% of net equity exposure at the portfolio level, for a swing factor of almost 11%. At 6%, KNDP’s look-through net equity exposure is slightly below the historical average.

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 2018-04-30 (rebased)

No chart data available

Performance per 2018-04-30

Slide to see more
  Fund
1 month 0.1 %
3 months 0.1 %
This year 1.4 %
2015 -0.3 %
2016 3.7 %
2017 6.3 %
3 years (on annual basis) i 3.0 %
5 years (on annual basis) i 3.5 %
Since inception (on annual basis) i 3.0 %
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 2018-04-30

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  3 years Since inception
Maximum drawdown i -5.03 % -22.72 %
Tracking error i 2.64 % 2.99 %
Information ratio i 1.68 1.22
Beta i 0.47 0.69
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
0.65 %
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
2.72 %

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
B 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
2006-05-01
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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Minimum subscription
Initial subscription: €50,000, additional subscriptions: €10,000
Listed
no
Subscription/Redemption Frequency
Quarterly, on the first business day of January, April, July and October
Lock-up period
Rolling 1 year
ISIN i
LU1038279904
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 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.