Kempen (Lux) European Small-cap Fund - Class I

Profile

Kempen International Funds SICAV – the Kempen (Lux) European Small-cap Fund (the Fund) manages a bottom-up investment process to a concentrated portfolio containing relatively high-quality, small European businesses, with the aim of earning an attractive return in the long term. Quality companies have a proven and sustainable competitive edge that expresses itself in a high return on the invested capital and above-average earnings growth, and the fund manager believes that consistent investment results can be achieved via an investment philosophy that focuses on these aspects. The Fund only invests in companies with an asymmetrical risk/reward ratio.

Management team

Michiel van Dijk, Erwin Dut, Sander van Oort; Ingmar Schaefer

Performance per 2019-01-31 (rebased)

No chart data available

Performance per 2019-01-31

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  Fund Benchmark
1 month 6.8 % 9.0 %
3 months -0.9 % -1.5 %
This year 6.8 % 9.0 %
2016 2.9 % 3.2 %
2017 13.3 % 19.1 %
2018 -17.9 % -15.9 %
1 year (on annual basis) -12.7 % -10.0 %
3 years (on annual basis) i 3.2 % 6.9 %
5 years (on annual basis) i 6.3 % 8.0 %
Since inception (on annual basis) i 9.9 % 6.6 %
On 23 October 2013 Kempen European Smallcap Fund (KESF) was merged with Kempen (Lux) European Small-cap Fund (the Fund). In March 2010 the first institutional class of the Fund was launched. The results shown of the period before March 2010 (date of first institutional class) are those of KESF. KESF had a similar investment structure, a higher cost structure and a different tax regime that could have influenced the returns shown. Until 31 May 2011 the benchmark of the Fund was the HSBC Smaller European Companies Index. As of 31 May 2011 until 28 February 2017 the benchmark of the Fund was the MSCI Europe Small Cap Total Return Index, of which the constituents are adjusted by reducing the UK component by 50%. 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 185.48 M 2019-01-31
Share class size
EUR 125.30 M 2019-01-31
Number of shares
52,954 2019-01-31
Net Asset Value i
EUR 2,446.86 2019-02-22
Morningstar rating â„¢

Fund characteristics per 2019-01-31

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  Fund Benchmark
Number of holdings 37 997
Dividend yield i 3.01 % 2.75 %
Weighted average market capitalization i EUR 1,978 M EUR 2,622 M
P/E ratio i 15.71 14.04
Active share i 95.99 %
Kempen (Lux) European Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Market developments per 2019-01-31

The Fund increased in value by 6.9% in January underperforming the benchmark by 2.1% attributed to stock selection.

Portfolio developments per 2019-01-31

In December we have expanded our portfolio with three new names: Fabege, Beazley and Coats Group. During January we increased the weight of these three names and added another new name to our portfolio which is relatively small. In addition, we have completely sold our position in Moncler. Consequently, the Kempen (Lux) European Sustainable Small-cap Fund now holds the same names as the Kempen (Lux) European Small-cap fund.

The best performing companies were Greggs, Dunelm and Safestore. Greggs (+26%) reported a stronger than expected like-for-like sales growth acceleration to 4.2% in 2H18 from 1.5% in 1H18 in its January trading update. A strong 5.2% like-for-like sales growth for December shows that sales momentum following earlier marketing and product investments is paying off and triggers further earnings upgrades. Dunelm (+38%) reported a much stronger than expected acceleration in like-for-like store sales growth to +5.7% versus +1.3% in the previous quarter in its January trading update suggesting that increased focus on its core Dunelm proposition is paying off. Safestore (+17%) released its annual report and gave a trading update. Safestore has indicated towards a strong beginning of their 2018/19 financial year with the first two months to December already seeing +6.4% like-for-like revenue growth.

Weakest performers were Mekonomen, Sweco and Gym group. Mekonomen (-23%) experienced slow trading in all regions during the fourth quarter, which lead to a pre-announcement in January. Although the weak results were largely anticipated by the market, the lower earnings continue to put pressure on the financial debt ratios, despite the equity raise that was completed a few months ago. Sweco (-8%) announced the departure of CFO Jonas Dahlberg. Mr. Dahlberg was appointed in 2012, and he was one of the architects of the successful acquisition and integration of Grontmij, Sweco’s largest acquisition in history. No successor has been appointed yet. Gym group (-20%) reported a weaker than expected membership growth due to back-end loaded club openings and downtime due to site conversions following earlier M&A. Management is optimistic about future growth prospects and guides for 15-20 new club openings for FY19.

ESG commentary: with the Shareholder Rights Directive becoming legally binding in the EU members states in 2019, investors continue to promote the importance of transparency along the investment value chain. Transparency has always been a key driver of our sustainability scoring. One of our portfolio companies, Ascom Holding AG, improved its score from a provisional to a pass, due to its increased disclosure around environmental policies and certifications. Following on from the recent engagements related to data protection, the company recently put in place a data protection officer to improve compliance in this area.
Kempen (Lux) European Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Performance per 2019-01-31 (rebased)

No chart data available

Performance per 2019-01-31

Slide to see more
  Fund Benchmark
1 month 6.8 % 9.0 %
3 months -0.9 % -1.5 %
This year 6.8 % 9.0 %
2016 2.9 % 3.2 %
2017 13.3 % 19.1 %
2018 -17.9 % -15.9 %
1 year (on annual basis) -12.7 % -10.0 %
3 years (on annual basis) i 3.2 % 6.9 %
5 years (on annual basis) i 6.3 % 8.0 %
Since inception (on annual basis) i 9.9 % 6.6 %
On 23 October 2013 Kempen European Smallcap Fund (KESF) was merged with Kempen (Lux) European Small-cap Fund (the Fund). In March 2010 the first institutional class of the Fund was launched. The results shown of the period before March 2010 (date of first institutional class) are those of KESF. KESF had a similar investment structure, a higher cost structure and a different tax regime that could have influenced the returns shown. Until 31 May 2011 the benchmark of the Fund was the HSBC Smaller European Companies Index. As of 31 May 2011 until 28 February 2017 the benchmark of the Fund was the MSCI Europe Small Cap Total Return Index, of which the constituents are adjusted by reducing the UK component by 50%. 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 2019-01-31

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  3 years Since inception
Maximum drawdown i -20.31 % -59.77 %
Tracking error i 4.96 % 8.03 %
Information ratio i -0.75 0.41
Beta i 0.96
Kempen (Lux) European Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Top 5 contribution (2019-01-31)

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  Contribution i Performance i
Greggs 1.03 % 25.80 %
Dunelm Group 0.82 % 36.87 %
BE Semiconductor Industries 0.54 % 22.63 %
Safestore 0.54 % 17.12 %
Aurelius 0.48 % 17.80 %

Bottom 5 contribution (2019-01-31)

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  Contribution i Performance i
Mekonomen -0.48 % -23.05 %
Sweco AB -0.29 % -7.92 %
Gym Group -0.23 % -20.12 %
Hill & Smith -0.20 % -5.41 %
Kingspan Group -0.17 % -4.53 %

Geographic allocation (2019-01-31)

36.0 %
United Kingdom
10.0 %
Germany
9.5 %
Sweden
6.8 %
Italy
6.6 %
Switzerland
6.5 %
Finland
6.1 %
Spain
5.9 %
Netherlands
3.7 %
Ireland
3.2 %
Denmark
3.6 %
Cash
2.1 %
Overig
Totaal
100 %

Top 10 holdings (2019-01-31)

4.7 %
Greggs
4.0 %
Huhtamaki
3.9 %
Hilton Food Group
3.8 %
Industria Macchine Automatiche
3.7 %
Kingspan Group
3.6 %
Rotork
3.6 %
Safestore
3.6 %
Sweco
3.4 %
Hill & Smith
3.3 %
Viscofan
Totaal
37.5 %

Sector allocation (2019-01-31)

32.0 %
Industrial Goods & Services
13.9 %
Technology
9.6 %
Retail
8.6 %
Food & Beverage
8.0 %
Automobiles & Parts
6.0 %
Personal & Household Goods
4.2 %
Insurance
3.9 %
Health Care
3.6 %
England
3.6 %
Other
6.7 %
Overig
Totaal
100 %
Kempen (Lux) European Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Ongoing charges

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Management fee i
0.70 %
Service fee i
0.20 %
Taxe d'abonnement i
0.01 %
Expected ongoing charges i
0,91 %

Other costs

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Upward swing factor i
0.45 %
Downward swing factor i
0.25 %
As of 14 January 2019 the swing factor has been adjusted from 0.50%/0.30% to 0.45%/0.25%.
Kempen (Lux) European Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Share class details

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Share class
I i
Investor type
Institutional
Distributing
No
Benchmark i
MSCI Europe Small Cap Total Return Index
Investment category
Small-caps
Universum
European Small- & Mid-caps
Inception date
2010-03-09
Domicile
Luxembourg
May be offered to professional investors only in
Belgium, Finland, France, Germany, Italy, Luxembourg, Sweden, Switzerland, The Netherlands, United Kingdom
UCITS status i
Yes
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.
Morningstar rating â„¢

Tradability

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Minimum subscription
Initial subscription: €50,000, additional subscriptions: €10,000
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU0427931919
Kempen (Lux) European Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Kempen (Lux) European Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

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 full voting records are available here.

Our fund approach to Responsible Investment

Exclude

Exclude investment in entities involved in the production tobacco and of controversial weapons, such as cluster munitions, anti-personnel mines, nuclear warheads, chemical and biological weapons

For the sustainable strategies exclude adult entertainment, alcohol, animal testing, fur, gambling, GMO, nuclear energy, thermal coal and weaponry.

Integrate

We undertake our own fundamental ESG research on each company

Then an independent sustainability consultant checks the scores which drives the rating

We will only invest in companies that have either a Provisional or Pass rating

If a company receives a Fail rating then we will not invest

Engage

ESG engagement can enhance performance through increasing upside potential and mitigating downside risk

We believe that all companies face ESG issues and that it is important to address these before and during investment

As long-term shareholders it is our fiduciary duty to consistently encourage positive change through engagement and exercising proxy voting rights

Kempen (Lux) European Small-cap Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.