KP Small Cap Equity Fund

Investment Objective

The fund seeks long-term capital appreciation primarily through investments in a diversified portfolio of small capitalization equity securities.

Investment Strategy

The fund seeks to out-perform the Russell 2000 Index over time by employing a “multi-manager” approach, whereby the fund’s advisor, Callan LLC (“Callan”), allocates the fund’s assets among a number of experienced sub-advisors with differing investment philosophies and strategies.

The sub-advisors use a combination of fundamental, macroeconomic, and quantitative analysis to identify companies held in the portfolio. No assurances can be made that the fund will achieve its investment goals.


Fund Advisor

Callan

Fund Administrator

SEI Investments Global Fund Services

Asset Class

Small Cap Equity

Ticker

KPSCX

Gross Expense Ratio

0.52%

Net Expense Ratio

0.52%


Fund Characteristics

as of September 30, 2020

Current Allocation
Sub-AdvisorStrategyPercentage
Aristotle Capital BostonSmall Cap Core13%
CastleArk Management, LLCSmall Cap Growth16%
Columbus Circle InvestorsSmall/SMID Cap Growth17%
DePrince Race & Zollo, Inc.Small Cap Value12%
PENN Capital ManagementMicro Cap Core13%
SSGA Funds ManagementS&P 60017%
Walthausen & Co., LLCSmall/SMID Cap Value11%
Strategy
Small Cap Core
Percentage
13%
Strategy
Small Cap Growth
Percentage
16%
Strategy
Small/SMID Cap Growth
Percentage
17%
Strategy
Small Cap Value
Percentage
12%
Strategy
Micro Cap Core
Percentage
13%
Strategy
S&P 600
Percentage
17%
Strategy
Small/SMID Cap Value
Percentage
11%
Fund Characteristics
NamePercentage
Forecast Earnings Growth13.5%
Price/Book Value1.8
Price/Earnings Ratio27.9
Median Market Capitalization$2.4 billion
SEC Yield0.95%
Percentage
13.5%
Percentage
1.8
Percentage
27.9
Percentage
$2.4 billion
Percentage
0.95%
Sector Allocation
NamePercentage
Consumer Discretionary14.6%
Consumer Staples4.5%
Energy1.4%
Financials15.4%
Fund0.3%
Health Care16.6%
Industrials18.5%
Information Technology15.8%
Materials5.1%
Real Estate4.2%
Telecommunications1.6%
Utilities2.0%
Total100.0%
Percentage
14.6%
Percentage
4.5%
Percentage
1.4%
Percentage
15.4%
Percentage
0.3%
Percentage
16.6%
Percentage
18.5%
Percentage
15.8%
Percentage
5.1%
Percentage
4.2%
Percentage
1.6%
Percentage
2.0%
Percentage
100.0%
Top 10 Holdings
NamePercentage
Horizon Therapeutics PLC1.01%
Nuance Communications Inc0.90%
Natera Inc0.80%
Tandem Diabetes Care Inc0.79%
Sanderson Farms Inc0.70%
Merit Medical Systems Inc0.66%
Floor & Decor Holdings Inc0.63%
MACOM Technology Solutions Holdings Inc0.59%
Inspire Medical Systems Inc0.57%
SVB Financial Group0.54%
Total
Holdings are subject to change
7.18%
Percentage
1.01%
Percentage
0.90%
Percentage
0.80%
Percentage
0.79%
Percentage
0.70%
Percentage
0.66%
Percentage
0.63%
Percentage
0.59%
Percentage
0.57%
Percentage
0.54%
Percentage
7.18%

Performance1

as of September 30, 2020

Average Annual Total Return
NameLast QuarterLast
Year
Last 3
Years
Last 5
Years
Since
Inception2
KP Small Cap Equity Fund6.30%0.70%3.44%8.61%5.84%
Russell 2000 Index4.93%0.39%1.77%8.00%
Morningstar Small Blend4.25%-6.60%-0.74%5.88%
Last Quarter
6.30%
Last Year
0.70%
Last 3 Years
3.44%
Last 5 Years
8.61%
Since Inception
5.84%
Last Quarter
4.93%
Last Year
0.39%
Last 3 Years
1.77%
Last 5 Years
8.00%
Since Inception
Last Quarter
4.25%
Last Year
-6.60%
Last 3 Years
-0.74%
Last 5 Years
5.88%
Since Inception

1 The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth less than their original cost and current performance may be lower than the performance quoted. Returns greater than one year are average annual total returns. For performance data current to the most recent month end, please call 855-4-KPFNDS.

2 The inception date for the KP Small Cap Equity Fund is January 10, 2014.

SEC Yield: 30-Day SEC Yield is a standard yield calculation developed by the Securities and Exchange Commission that allows for fairer comparisons among funds. It is based on the most recent month end. This figure reflects the interest earned during the period after deducting the Fund’s expenses for the period.

Dividend Yield: The total amount of dividends paid out for a stock over the preceding twelve months divided by the closing price of a share of the common stock. This value is expressed in percent.

Forecast Growth In Earnings: This growth rate is a measure of a company's expected long-term success in generating future year-over-year earnings growth. This growth rate is a market value weighted average of the consensus (mean) analysts' long-term earnings growth rate forecast for each company in the portfolio. The definition of long-term varies by analyst but is limited to a 3-8 year range. This value is expressed as the expected average annual growth of earnings in percent.

Price/Book Value: The Price to Book Value (P/B) is a measure of value for a company. It is equal to the market value of all the shares of common stock divided by the book value of the company. The book value is the sum of capital surplus, common stock, and retained earnings.

Price/Earnings Ratio: The Price to Earnings Ratio (P/E) is a measure of value for a company. It is equal to the price of a share of common stock divided by the earnings per share for a twelve-month period.

Median Market Capitalization: The weighted median market capitalization is the point at which half of the market value of the portfolio is invested in stocks with a greater market capitalization, and consequently the other half is invested in stocks with a lower market capitalization. This value is expressed in dollars and is scaled in billions.

Russell 2000 Index: The Russell 2000 Index is a free float-adjusted capitalization-weighted index comprised of approximately 2000 equity securities issued by small companies based primarily in the U.S.

Morningstar Small Blend Funds Median: Represents the median return for the Morningstar Small Blend Funds group, which is comprised of funds that favor U.S. firms at the smaller end of the market-capitalization range. Some aim to own an array of value and growth stocks while others employ a discipline that leads to holdings with valuations and growth rates close to the small-cap averages. Stocks in the bottom 10% of the capitalization of the U.S. equity market are defined as small cap. The blend style is assigned to portfolios where neither growth nor value characteristics predominate.

The KP Core Funds serve as core building blocks for the KP Retirement Path Funds. Only the KP Small Cap Equity Fund is available for direct investment. Other information may be found in the fund's summary and full prospectuses, which may be obtained by calling (855)4-KPFNDS or on this website. Please read the prospectus carefully.

The KP Core Funds are mutual funds. They are part of The KP Funds Series Trust, an open-end management investment company that offers shares of diversified portfolios. The funds are advised by Callan LLC, a registered investment advisor. They are administered by SEI Investments Global Funds Services and distributed by SEI Investments Distribution Co., which are not affiliated with Callan.

There can be no assurance that a Fund will achieve its stated objectives. Diversification is not guaranteed to protect against market loss.

Investing involves risk including loss of principal. International investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. These risks are heightened when investing in emerging markets or in a single state.

Currency risk is the risk that foreign currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged. In either event, the dollar value of an investment in the Underlying Fund would be adversely affected.

Fund Risks

The KP Core Funds serve as core building blocks for the KP Retirement Path Funds. Only the KP Small Cap Equity Fund is available for direct investment. Other information may be found in the fund’s summary and full prospectuses, which may be obtained by calling (855)4-KPFNDS or on this website. Please read the prospectus carefully.

The KP Core Funds are mutual funds. They are part of The KP Funds Series Trust, an open-end management investment company that offers shares of diversified portfolios. The funds are advised by Callan LLC, a registered investment advisor. They are administered by SEI Investments Global Funds Services and distributed by SEI Investments Distribution Co., which are not affiliated with Callan.

Only participants in the Kaiser Permanente defined contribution plans can invest in the funds.

There can be no assurance that a Fund will achieve its stated objectives. Diversification is not guaranteed to protect against market loss.

Investing involves risk, including loss of principal.

The prices of common stocks may fall over short or extended periods of time. In particular, growth stocks may be susceptible to rapid price swings, especially during periods of economic uncertainty;

Small and medium capitalization stocks may be more volatile than those of larger companies;

The use of leverage by underlying fund managers may accelerate the velocity of potential losses;

The use of derivatives are often more volatile than other investments and magnify the fund’s gains or losses.

SEI Investments Distribution Co. (1 Freedom Valley Drive, Oaks, PA, 19456) is the distributor for the KP Funds. Check the background of SIDCO on FINRA’s BrokerCheck.