KPSCX — KP Small Cap Equity Fund

KPSCX Fund Overview

KPSCX — KP Small Cap Equity Fund is a US mutual fund managed by Kp Funds, categorised as United States Small Cap Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Kp Funds
• Category: United States Small Cap Blend / Core Equity
• Assets under management: $1.38B
• 1-year return: 0.7%
• Ticker: KPSCX
• SEC CIK: 0001573386
• SEC series ID: S000041507
• Share class ID: C000128999

KPSCX Investment Objective and Strategy

KP Small Cap Equity Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Kp Funds.

Investment objective

"The KP Small Cap Equity Fund (the ""Fund"") seeks long-term capital appreciation primarily through investments in a diversified portfolio of small cap equity securities."

Principal investment strategy

"Under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of small capitalization companies. For purposes of the Fund's 80% policy, equity securities consist of common stocks and derivatives with economic characteristics similar to equity securities. Callan LLC (the ""Adviser""), the Fund's investment adviser, considers small capitalization companies generally to be those companies with market capitalizations within the range of market capitalizations of the companies included in the Russell 2000 Index. As of December 31, 2017, the market capitalization of companies included in the Russell 2000 Index ranged from $0.022 billion to $9.266 billion, as calculated by the index provider. The Russell 2000 Index is reconstituted annually.

The Fund may change its 80% policy at any time and will notify shareholders 60 days in advance of the change. For purposes of the Fund's investment objective, the Adviser considers ""long-term capital appreciation"" to be capital appreciation over a period of greater than five years. The Fund principally invests in securities issued by domestic issuers. The Fund uses a ""multi-manager"" approach, whereby the Adviser allocates the Fund's assets among a number of sub-advisers with differing investment philosophies and strategies (each, a ""Sub-strategy""). The Adviser determines the target Sub-strategy allocation for the Fund, identifies sub-advisers to manage the Fund's assets according to those Sub-strategies, and allocates Fund assets among sub-advisers to maintain the Fund's target Sub-strategy allocation.

Sub-advisers generally are selected and retained based on: the Adviser's view regarding their expected contribution to excess return; their performance in managing the Fund's assets pursuant to their respective Sub-strategies; the Adviser's confidence in their investment process, personnel, investment resources, and organizational stability; the Adviser's belief in their ability to take on additional assets without undermining future Fund performance; and the Adviser's confidence in the robustness of their operational, back-office, trading, and compliance platforms. Each sub-adviser invests the portion of the Fund's assets allocated to it under the general supervision of the Adviser. Each of the seven Sub-strategies is described below: Passive Small Cap Equity : SSGA Funds Management, Inc.

(""SSGA FM"") manages the portion of the Fund's assets allocated to the Passive Small Cap Equity Sub-strategy. The primary objective for the Sub-strategy is to seek to replicate, before fees and expenses, the performance of the S&P 600 Index. The S&P 600 Index is a free float-adjusted capitalization-weighted index designed to measure the small-cap segment of the U.S. equity market, and comprised of equity securities issued by approximately 600 small-size U.S. companies. As of December 31, 2017, the market capitalization of companies included in the S&P 600 Index ranged from $0.095 billion to $9.404 billion, as calculated by the index provider. The S&P 600 Index is reconstituted from time to time as additions and deletions of companies included in the S&P 600 Index are made in response to corporate actions and market developments.

Under normal circumstances, SSGA FM will seek to invest a substantial portion of the Sub-strategy's assets in securities of companies included in the S&P 600 Index and futures contracts that are designed to track the S&P 600 Index. SSGA FM seeks to replicate the performance of the S&P 600 Index by investing in the constituent securities of the S&P 600 Index in approximately their S&P 600 Index weight. However, under various circumstances, it may not be possible or practicable to purchase all of those securities in those weightings. In those circumstances, SSGA FM may purchase a sample of stocks in the S&P 600 Index in proportions expected to replicate generally the performance of the S&P 600 Index as a whole. In addition, from time to time, stocks are added to or removed from the S&P 600 Index.

SSGA FM may sell stocks that are represented in the S&P 600 Index, or purchase stocks that are not yet represented in the S&P 600 Index, in anticipation of their removal from or addition to the S&P 600 Index. SSGA FM may at times purchase or sell futures contracts in lieu of investment directly in the stocks making up the S&P 600 Index. SSGA FM might do so in order to increase the Fund's investment exposure pending investment of cash in the stocks comprising the S&P 600 Index. Alternatively, SSGA FM might use futures to reduce its investment exposure to the S&P 600 Index in situations where it intends to sell a portion of the stocks in the Fund's portfolio but the sale has not yet been completed. Active Small/SMID Cap Growth : Columbus Circle Investors (""CCI"") manages the portion of the Fund's assets allocated to the Active Small/SMID Cap Growth Sub-strategy.

The primary objective for the Sub-strategy is to out-perform the Russell 2500 Growth Index over a full market cycle. No assurances can be given that this objective will be achieved. The Russell 2500 Growth Index is a free float-adjusted capitalization-weighted index comprised primarily of equity securities issued by small capitalization and mid-capitalization Growth-oriented U.S. companies. As of December 31, 2017, the market capitalization of companies included in the Russell 2500 Growth Index ranged from $0.022 billion to $16.964 billion, as calculated by the index provider. The Russell 2500 Growth Index is reconstituted annually. Under normal circumstances, CCI will seek to invest the Sub-strategy's assets in common stocks of companies within the market capitalization range of the Russell 2500 Growth Index.

CCI targets small to mid-sized businesses providing new technologies, products or services. CCI's Positive Momentum & Positive Surprise investment philosophy is based on the premise that companies producing better than expected results will have rising securities prices, while companies producing less than expected results will not. CCI's investment research process is focused on finding Positive Momentum & Positive Surprise, that is, companies with strengthening business momentum and a dynamic potential to exceed investors' expectations. Through thorough analysis of companies' fundamentals in the context of the prevailing economic environment, CCI's team of investment professionals selects companies that meet the criteria of CCI's investment discipline. Companies whose stocks are experiencing Positive Momentum & Positive Surprise are considered attractive for purchase, while companies falling short or in line with CCI's expectations are avoided or sold.

Active Small/SMID Cap Value : Walthausen & Co., LLC (""Walthausen"") manages the portion of the Fund's assets allocated to the Active Small/SMID Cap Value Sub-strategy. The primary objective for the Sub-strategy is to out-perform the Russell 2500 Value Index over a full market cycle. No assurances can be given that this objective will be achieved. The Russell 2500 Value Index is a free float-adjusted capitalization-weighted index comprised primarily of equity securities issued by small capitalization and mid-capitalization value-oriented U.S. companies. As of December 31, 2017, the market capitalization of companies included in the Russell 2500 Value Index ranged from $0.022 billion to $13.747 billion, as calculated by the index provider. The Russell 2500 Value Index is reconstituted annually.

Under normal circumstances, Walthausen will seek to invest the Sub-strategy's assets in the common stocks of small and mid-capitalization companies that Walthausen believes have the potential for capital appreciation. The sub-strategy emphasizes a ""Value"" investment style, investing in companies that appear under-priced according to Walthausen's analysis of their financial measurements of worth or business prospects. Walthausen may sell a company's stock when the company reaches Walthausen's appraised value, when there is a more attractively priced company as an alternative, when the fundamentals of the business have changed, or when Walthausen determines that management of the company is not enhancing shareholder value. Active Small Cap Growth : CastleArk Management LLC (""CastleArk"") manages the portion of the Fund's assets allocated to the Active Small Cap Growth Sub-strategy.

The primary objective for the Sub-strategy is to out-perform the Russell 2000 Growth Index over a full market cycle. No assurances can be given that this objective will be achieved. The Russell 2000 Growth Index is a free float-adjusted capitalization-weighted index comprised primarily of equity securities issued by small capitalization growth-oriented U.S. companies. As of December 31, 2017, the market capitalization of companies included in the Russell 2000 Growth Index ranged from $0.022 billion to $9.266 billion, as calculated by the index provider. The Russell 2000 Growth Index is reconstituted annually. Under normal circumstances, CastleArk will seek to invest the Sub-strategy's assets in common stocks of small capitalization companies that CastleArk believes have improving business fundamentals and accelerating earnings growth.

CastleArk believes earnings growth drives long-term stock prices, and that excess returns can be achieved by investing in companies with improving business fundamentals. CastleArk's investment strategy emphasizes three attributes: the direction of the change in a company's growth rate; actual improvements of a company's fundamentals; and a disciplined analysis focused on the magnitude and sustainability of the drivers of a company's fundamental improvement. CastleArk's sell discipline derives from the belief that investment losses can be minimized by identifying potential performance detractors before they become fully reflected in the stock price. CastleArk's willingness to sell a stock when it identifies potential performance detractors is a key aspect of its risk management process. Active Small Cap Value : DePrince Race & Zollo, Inc.

(""DRZ"") manages the portion of the Fund's assets allocated to the Active Small Cap Value Sub-strategy. The primary objective for the Sub-strategy is to out-perform the Russell 2000 Value Index over a full market cycle. No assurances can be given that this objective will be achieved. The Russell 2000 Value Index is a free float-adjusted capitalization-weighted index comprised primarily of equity securities issued by small capitalization value-oriented U.S. companies. As of December 31, 2017, the market capitalization of companies included in the Russell 2000 Value Index ranged from $0.022 billion to $8.907 billion, as calculated by the index provider. The Russell 2000 Value Index is reconstituted annually. Under normal circumstances, DRZ will seek to invest the Sub-strategy's assets in common stocks of small capitalization companies that DRZ believes have the potential for growth and that appear to be trading below their perceived value.

DRZ generally employs a multi-step, bottom-up investment process. Initially, DRZ screens the investible universe for small market capitalization companies that pay a dividend. DRZ then applies various valuation multiples, such as price-to-earnings, price-to-book and price-to-cash flow, to companies in the universe to find companies that it believes are trading at the low end of their historical relative valuation levels. DRZ then conducts fundamental analysis to identify a likely catalyst which it believes may lead to future price appreciation. Next, DRZ establishes relative price targets for those stocks that have identifiable catalysts.

KPSCX Performance

Total returns for KPSCX (as of 2026-10-01), from SEC filings.

KPSCX Risk Information

Risk metrics for KPSCX, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 31.3%

KPSCX Costs and Fees

KPSCX costs about $52 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.52%
• Gross expense ratio: 0.52%
• Portfolio turnover: 83%
• Brokerage commissions: 19.49 bps of average net assets (SEC N-CEN)

KPSCX Cashflows

Over the 12 months to 2020-09, KP Small Cap Equity Fund had net inflows of $514.21M, from monthly SEC N-PORT filings.

KPSCX Debt Constituents

No individual debt constituents are reported in KP Small Cap Equity Fund's latest SEC N-PORT filing.

KPSCX Prospectus and SEC Filings

Official KP Small Cap Equity Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2020-05-14
• Prospectus (485BPOS) — filed 2019-05-14
• Prospectus supplement (497) — filed 2020-06-01
• Portfolio holdings (N-PORT) — filed 2020-11-25
• Portfolio holdings (N-PORT) — filed 2020-08-26
• Portfolio holdings (N-PORT) — filed 2020-05-29
• Annual census (N-CEN) — filed 2020-03-16
• Annual census (N-CEN) — filed 2019-03-14

Related Funds

Other United States Small Cap Blend / Core Equity funds tracked on ABC INVEST:

• iShares Core S&P Small-Cap ETF (IJR)
• iShares Russell 2000 ETF (IWM)
• Fidelity Small Cap Index Fund (FSSNX)
• Schwab U.S. Small-Cap ETF (SCHA)
• U.s. Small Cap Portfolio (DFSTX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.