Kempen Orange Investment Partnership - Class I-GBP (hedged)

Profile

Kempen Orange Investment Partnership (KOIP) is a fund-of-hedge-funds with a diversified exposure to hedge fund strategies. The portfolio typically consists of between 15 and 35 underlying hedge funds. The fund has an unconstrained mandate and can invest in a wide array of strategies, ranging from directional strategies such as long-biased long/short equity to global macro and non-directional arbitrage 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 ten members of the investment committee each have a minimum industry experience of ten years. The objective of the fund is to generate a long-term return in excess of Euribor + 4%.

Management team

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

Performance per 2017-07-31 (rebased)

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Performance per 2017-07-31

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  Fund
1 month 0.9 %
3 months 1.2 %
This year 4.9 %
Since inception (on annual basis) i 7.6 %
De benchmark is the HFRX Global Hedge Fund GBP Index. 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 391.73 M 2017-07-31
Number of shares
870,931 2017-07-31
Net Asset Value i
GBP 109.65 2017-07-31
Kempen Orange Investment 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 2017-06-30

During the second quarter global equity markets produced a gain (in local currencies) of about 3%. Europe was the worst performing region – up only modestly - while Emerging Markets and Japan witnessed stronger returns. Given the USD’s 7% decline versus the EUR, global equity returns were negative to the tune of -3% when measured in EUR. European rates continued to bounce back and forth; between 20bps and 50bps in the case of 10-year German rates. The latest move up occurred towards the very end of the quarter as Draghi’s rhetoric appeared more hawkish. US 10-year rates also bounced up in the final days of the quarter after having reached a YTD low as recently as the 27th of June. Commodity prices too went through whipsaw like moves but ultimately finished the quarter lower with the oil price falling from $51 to $46 (WTI, price per barrel).
In this environment, Equity-related strategies put up the strongest numbers while Macro / Systematic managers on average struggled. Within Equity-related (+3.7%, contributing +0.83%), Asia/EM-focused managers performed best, finishing the quarter on spot #1, #5, #7, and #8 with respect to the contribution to performance. Structured Credit managers (+3.0%, contributing +0.59%) also experienced a strong quarter (their fifth consecutive quarter of positive contribution), with gains across RMBS, CMBS, CLOs and Consumer ABS. The Multi-Strategy managers (+7.3%, contributing +0.40%) also had a good quarter – with one of them to be discussed on the next page as the #2 contributor. The group of Macro / Systematic managers (-2.9%, detracting -0.75%) detracted the most from performance, with three of them making up the bottom of the quarterly list, while the fourth manager was the one exception with healthy gains. The three detracting Macro / Systematic managers each were down for their own specific reasons, including being hurt by the whipsaw-environment, by the Brazilian political scandal, and by the underperformance of European equities and a stronger Euro. Credit / Distressed managers on balance had very little impact on quarterly performance.

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

Portfolio developments per 2017-06-30

On the individual manager level 14 out of 21 core holdings (excluding holdings < 1%) contributed positively with the top-3 managers being:
1. Tybourne (+7.2%, contributing +0.40%). This Asia-focused global Long / Short Equity manager’s long book performed strongly in Q2-17 with four of the top-10 positions being up double-digit, including the fund’s two largest positions. Shorts in old industries that are in secular decline (fixed line telecom, broadcasting, fashion retail) also contributed positively.
2. Boussard & Gavaudan (+7.8%, contributing +0.40%). Two of this European Multi-Strategy fund’s largest positions were taken out during the second quarter, leading to solid gains. First, in April it was announced that EDF Energies Nouvelles was looking to acquire wind energy developer and operator Futuren at a premium to the last stock price. Given that Boussard & Gavaudan owned a material part of both the equity and the bonds of Futuren, this news helped the fund to produce a strong NAV gain. Second, in May it was announced that Mannai Corporation will be acquiring Boussard & Gavaudan’s remaining shares in GFI Informatique, at a price that was well above the last known stock price, leading to further NAV gains.
3. Pharo Gaia (+6.9%, contributing +0.39%). This EM-focused Global Macro manager made money in Sovereign Credit (long of a host of EM countries in LatAm and Southern Europe amongst others), FX (long both EUR and EM currencies versus the USD), Rates (long a range of EM countries and short the short-end in the US), and Commodities (short oil).

The top-3 detractors were:
1. Transtrend (-9.2%, detracting -0.37%). This trend-follower – like the vast majority of CTA’s during the second quarter – encountered a very difficult environment in light of (continuous) trend reversals in commodities, currencies, and rates. Slight gains in equities (where the fund is long) were not enough to offset losses in commodities (both long and short oil and natural gas as well as long silver), currencies (short Euro in April) and interest rates (long Bunds in June).
2. Discovery (-6.4%, detracting -0.36%). This Global Macro manager got hurt on long positions in Brazilian equities and FX as these sold off in the wake of the political scandal involving President Temer. Shorts in Europe (FX, equity and credit) and security selection in the US (equity and credit) also detracted from performance.
3. Bridgewater (-4.9%, detracting -0.27%). Shorts in Europe (EUR and periphery sovereign credit) and longs in commodities were the key quarterly detractors for this Global Macro manager.

At the end of the quarter, we redeemed the investment in Blakeney. This specialist long-only MENA equity manager has been part of the portfolio since December 2005 and over that period annualized a return of +4.1%. On a forward-looking basis we did not have enough conviction in the return potential to offset concerns about risks (liquidity, equity beta, political). Over the almost 12 year period, we have come to greatly appreciate the people behind Blakeney and we wish them well. Per July 1st 2017 the fund was invested in 20 core holdings (excluding holdings < 1%).
The look-through net equity exposure decreased from 27% to 26% and the look-through net corporate credit exposure decreased from 6% to 4%. Only half of the net equity exposure comes from Equity-related managers with the rest coming from Macro / Systematic, Credit / Distressed, and Multi-Strategy managers.

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

The performances and contribution mentioned are those of Kempen Orange Investment Partnership Class C.

Kempen Orange Investment 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 2017-07-31 (rebased)

No chart data available

Performance per 2017-07-31

Slide to see more
  Fund
1 month 0.9 %
3 months 1.2 %
This year 4.9 %
Since inception (on annual basis) i 7.6 %
De benchmark is the HFRX Global Hedge Fund GBP Index. 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
Kempen Orange Investment 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 Orange Investment 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
0.01 %
Indirect costs i
2% (estimate excl. possible performance fees)
Expected ongoing charges i
2.76 %

Other costs

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Entry fee
0,00 %
Exit fee
0,50 %
Kempen Orange Investment 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
I-GBP (hedged)
Investor type
Institutional
Distributing
No
Objective
In excess of Euribor plus 4% on an annual basis
Investment category
Hedge Fund Solutions
Universum
Global multi assets
Inception date
2016-05-02
Domicile
Luxembourg
UCITS status i
No
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: £1,000,000, additional subscriptions: £10,000
Listed
no
Pricing frequency
Subscriptions monthly on the first business day, redemptions quarterly, on the first business day of January, April, July and October
ISIN i
LU1397133460
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 applicable dealing day.
Kempen Orange Investment 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 Orange Investment 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.

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 Orange Investment 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.