European Small Caps PE Factor
Below you can find more information about the “Value Square Fund European Small Caps PE Factor” compartment.
Remarks
Before deciding to invest in the compartment, you should first read the prospectus and the essential information document (PRIIPS KID). The documents are available in Dutch. You can find these documents further on this page. This is an advertising announcement.
Goal
The purpose of the sub-fund is to aim for the highest possible return in absolute terms, rather than surpassing stock market indices and at the same time limiting risks. The assets of this sub-fund are mainly invested in European stocks of issuers with a relatively small capital (small caps). The selection of stocks is based on fundamental analysis and a bottom-up approach where listed stocks are screened based on internally determined criteria, often used in the Private Equity world.
At least 90% of the income received is paid annually to the holders of distribution shares in the compartment after deduction of costs, fees and commissions so that they can benefit from the Definitive Taxed Income scheme in accordance with Articles 202 and 203 of the Income Tax Code (WIB). In any case, when deciding on the dividend due to the holders of distribution shares, the Annual General Meeting of Shareholders must always adhere to the required minimum distribution percentage as set out in article 203 §2 of the WIB.
The shareholders of the sub-fund do not enjoy any protection or capital guarantee.
Strategy
The assets of this sub-fund are invested at least 65% in European stocks of issuers with a relatively small capital (“small caps” - A market capitalization of up to 5 billion EUR). European stocks mean shares of issuers located in the European Economic Area (EEA), Switzerland or the United Kingdom.
The selection of the stocks is based on fundamental analysis and a bottom-up approach where listed stocks are screened based on internally determined criteria, often used in the Private Equity world (Private Equity Factor or PE Factor for short). Quantitative screenings are used to select listed companies that have traditionally been the hunting ground for “private equity” players. Among other things, the underlying profit growth, free cash flow generation, profitability on the capital used, the debt ratio and the valuation are examined.
In circumstances where the manager estimates the downside risks higher than the potential return, the portion invested in stocks may be reduced to invest in cash and money market instruments. The compartment can be invested up to 50% in cash and/or money market instruments. The sub-fund will always be at least 50% invested in shares.
Active portfolio management
The sub-fund's portfolio is actively managed by the portfolio manager, which means that he makes discretionary investment choices at portfolio level within the limits of the investment objective and policy.
The sub-fund's reference index is the MSCI Europe Small Cap Net Return (EUR). The manager of this index is MSCI Limited and is included in the register referred to in Article 36 of Regulation 2016/1011. This index only serves as a tool for the investor to compare the performance of the fund with that of the index and thus assess the performance of the fund in an informed manner. The management method is not aligned with this index, but the calculation of the performance fee is.
If this index changes in content or is no longer offered, the Board of Directors may decide not to provide any further reference index or to replace an alternative reference index. In the latter case, the Governing Council also decides which reference index.
features
General
- Compartment of: Value Square Fund
- Legal form: self-managed order
- Domicile: Belgium
Fees and taxes
Costs
- Entry fee: Maximum 1%, for the benefit of your distributor
- Exit allowance: none
- Management fee: P class: 1.50%, PL Class: 1.20%
- Ongoing costs (sum of “Management costs and other administrative or operating costs”) and “Transaction costs”): P CAP class: 1.90%, P DIS class: 1.91%, PL CAP class: 1.61%, PL DIS class: 1.60%
- Performance fee: 10% on the increase in the sub-fund's net asset value above the benchmark's performance, in particular the MSCI Europe Small Cap Net Return (EUR) index. More information can be found in the sack's prospectus.
- Anti-dilution levy: In exceptional circumstances, an additional cost (anti dilution levy) may be charged on all entries or withdrawals of a compartment to protect investors against liquidity risk. This cost can range from 0% to a maximum of 5%. More information can be found in the stock prospectus.
Taxes
- The following taxes are imposed on an average non-professional investor (physical person, resident of Belgium).
- Stock market tax: Capitalization classes: 0% upon entry; 1.32% upon exit (max. €4,000). Distribution classes: None.
- Withholding tax: Capitalization classes: None. Distribution classes: 30% on dividends
Minimal investment
- P class: 250,000 euro
- PL class: 1,000,000 euro
Risks
Description of the risks that are considered significant and relevant, as assessed by the compartment:
- Market risk: the sub-fund invests mainly in listed stocks whose prices may fall (significantly), as a result of worsening macroeconomic conditions, specific business conditions, or as a result of general market psychology.
- Liquidity risk: the fund's investment strategy focuses on the shares of issuers with a small capital (small caps). Small caps usually have lower liquidity than shares of issuers with a larger stock market capitalization.
- Concentration risk: this risk is estimated to be medium by the compartment, due to its focus on the European market.
- Return risk: the compartment is actively managed and is not linked to an index. As a result, the compartment's return can differ significantly from the general market return.
- Risk depends on external factors: the benefit for the holders of distribution shares in this compartment is highly dependent on maintaining the current tax regime for Definitive Taxed Income and may decrease or even disappear altogether if tax legislation changes
Investor rights
For more information about investor rights, you can always visit our”Legal information“visit the web page or open this link. The information in the document is available in Dutch, French and English.