Kempen European Property Fund NV

Profile

Kempen European Property Fund N.V. (KEPF) has the objective to achieve strong relative investment results by investing in a portfolio of listed European property companies. KEPF is managed on the basis of a bottom-up stock picking approach.

KEPF's strategy is to exploit mispricing between the valuation of property companies in relation to the quality of their real estate portfolios, balance sheets, corporate governance and management capability to add value to the property portfolio.

Management team

Matthijs Storm, Egbert Nijmeijer, Lucas Vuurmans, Anna Niegowska, Jorrit Arissen, Dan Petrisor

Performance per 2017-08-31 (rebased)

No chart data available

Performance per 2017-08-31

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  Fund Benchmark
1 month 0.1 % 0.4 %
3 months -2.7 % -1.9 %
This year 4.5 % 5.0 %
2014 24.7 % 25.0 %
2015 21.5 % 18.0 %
2016 -3.8 % -5.3 %
3 years (on annual basis) i 9.0 % 7.6 %
5 years (on annual basis) i 11.8 % 11.2 %
Since inception (on annual basis) i 5.7 % 8.2 %
Untill 2014 the benchmark was the GPR 250 Europe Index, in which the UK component was reduced to 20%. Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. 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 149.20 M 2017-08-31
Number of shares
9,192,641 2017-08-31
Net Asset Value i
EUR 16.21 2017-09-21
Transaction price i
EUR 16.15 2017-09-21
Morningstar rating â„¢
Morningstar Analyst rating
Neutral

Fund characteristics per 2017-08-31

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  Fund Benchmark
Number of holdings 30 102
Dividend yield i 3.48 % 3.69 %
Weighted average market capitalization i EUR 6,099 M EUR 7,211 M
P/E ratio i 8.12 8.53
Active share i 55.91 %
Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM 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 are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Market developments per 2017-08-31

European property stocks posted flat return at 0.1% for the Fund. The benchmark returned 0.4%. Portfolio holding ADO Properties (return +7.3%) published strong results resulting in 10% NAV growth thanks to their focus on the very strong Berlin residential market. CA Immobilien (return +9.9%), which is not part of the portfolio, was bought by Immofinanz and published strong results last month.

Swedish property names posted negative returns this month after data showed the Swedish inflation rose above the 2% target for the first time since 2010, leading to the speculation the Riksbank might make a monetary move rather sooner than later. German residential property companies continued to publish strong NAV growth and a strong outlook and was the clear outperformer in August. ADO Properties was the winner within the group as shareholder Shikun & Binui published a tender for an additional 10% in ADO Group which would boost its holding beyond 50%. At the 17H1 results retail landlord Deutsche Euroshop commented that "tenancy agreement negotiations are becoming more challenging in places". Rents fell by €1.1mio suggesting further pressure on rental growth is being felt.

Portfolio developments per 2017-08-31

Portfolio construction of the KEPF is based on cluster neutrality. The European portfolio has 6 clusters defined as homogeneous groups of real estate companies with similar underlying currency exposure. Examples are United Kingdom, European Residential and Switzerland. The portfolio weight of each cluster is approximately equal to the cluster’s benchmark weight. This ensures a diversified portfolio and neutralizes currency and macro-economic exposure versus the benchmark. KEPF assigns its risk budget on the real estate company level and is positioned towards companies with strong balance sheets and management teams with proven track records in NAV creation, and avoids property developers without stable income from an investment portfolio.

In the cluster United Kingdom the position in Segro was reduced with proceeds reinvested into Great Portland Estates. We fully underwrite the fundamental prospects for Segro within the Logistics industry. However we are of the opinion that these strong prospects are priced-in both at the real estate level and at the implied share price level.
Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM 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 are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Performance per 2017-08-31 (rebased)

No chart data available

Performance per 2017-08-31

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  Fund Benchmark
1 month 0.1 % 0.4 %
3 months -2.7 % -1.9 %
This year 4.5 % 5.0 %
2014 24.7 % 25.0 %
2015 21.5 % 18.0 %
2016 -3.8 % -5.3 %
3 years (on annual basis) i 9.0 % 7.6 %
5 years (on annual basis) i 11.8 % 11.2 %
Since inception (on annual basis) i 5.7 % 8.2 %
Untill 2014 the benchmark was the GPR 250 Europe Index, in which the UK component was reduced to 20%. Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The value of your investments may fluctuate. Past performance provides no guarantee for the future.

Dividends

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Distributing
Yes
Last dividend
EUR 0.54
Ex-date last dividend
2017-01-30
Number of distributions per year
1
Dividend calendar

Risk analysis (ex post) per 2017-08-31

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  3 years Since inception
Maximum drawdown i -12.65 % -74.77 %
Tracking error i 1.61 % 4.76 %
Information ratio i 0.92 -0.52
Beta i 1.01 1.05
Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM 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 are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Top 5 contribution (2017-08-31)

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  Contribution i Performance i
Leg Immobilien 0.32 % 4.41 %
BUWOG-Gemeinnuetzige Schnung 0.26 % 4.04 %
ADO Properties 0.22 % 7.24 %
Gecina 0.11 % 2.54 %
Unibail Rodamco 0.10 % 0.98 %

Bottom 5 contribution (2017-08-31)

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  Contribution i Performance i
Land Securities -0.33 % -4.16 %
Derwent London -0.24 % -5.27 %
Grainger Trust -0.20 % -5.76 %
Safestore -0.15 % -5.16 %
Great Portland Estates -0.13 % -4.75 %

Geographic allocation (2017-08-31)

28.3 %
United Kingdom
17.0 %
Germany
14.1 %
France
10.9 %
The Netherlands
9.1 %
Nordics
6.5 %
Austria
5.9 %
Switzerland
5.3 %
Spain
1.6 %
Other
1.4 %
Ireland
Totaal
100 %
On basis of country of exchange of the investments. The cash position is included in ‘Other’.

Top 10 holdings (2017-08-31)

9.1 %
Unibail Rodamco
8.0 %
Land Securities
7.4 %
Leg Immobilien
6.5 %
BUWOG-Gemeinnuetzige Schnung
6.0 %
Klepierre
4.6 %
PSP Swiss Property
4.4 %
Gecina
4.3 %
Derwent London
3.5 %
Great Portland Estates
3.5 %
Hufvudstaden
Totaal
57.3 %

Sector allocation (2017-08-31)

28.9 %
Retail
27.3 %
Residential
25.0 %
Offices
10.7 %
Industrials
8.1 %
Other
Totaal
100 %
On basis of 'look through' data. The cash position is not included.
Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM 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 are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Ongoing charges

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Management fee i
0.63 %
Service fee i
0.25 %
Expected ongoing charges i
0,88 %
Ongoing charges last financial year i
0.89 %
The Ongoing Charges Figure of the last financial year relates to 2015/2016.

The service fee is determined annually on basis of the net asset value as of the last day of the previous financial year:
< or equal to EUR 200 million: 0.25%
>EUR 200 million: 0.20%

Other costs

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Upward swing factor i
0.35 %
Downward swing factor i
0.35 %
More about our swing pricing policy
Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM 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 are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Share class details

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Investor type
Institutional & Private
Distributing
Yes
Benchmark i
FTSE EPRA/NAREIT Developed Europe Index (dividends reinvested)
Investment category
Real Estate
Universum
European real estate equities
Inception date
2000-10-26
Domicile
The Netherlands
May be offered to all investors in
The Netherlands
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Management company
Kempen Capital Management N.V.
Custodian
BNP Paribas Securities Services S.C.A.
Morningstar rating â„¢
Morningstar Analyst rating
Neutral

Tradability

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Listed
yes, listed on the NAV Trading Facility of Euronext
Pricing frequency
Daily
ISIN i
NL0009296649
Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM 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 are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.
Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM 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 are available on the website of KCM (www.kempen.com/investmentfunds). 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

ESG is fully integrated in our investment process for the real estate funds. We believe financial and sustainability returns are indivisible and that those companies that can find the right balance between all stakeholders will drive value. In our investment framework there are three key aspects we look at in determining the warranted valuation: management value add, balance sheet and ESG. We are willing to pay up for those companies that excel in ESG. This believe is underpinned by academic literature.

We track the CO2 intensity for all companies in our universe and use this information to for our assumption for capital expenditure in valuing the real estate portfolio. We do not only invest in the ESG leaders but also in the laggards as we the potential value to be unlocked by providing capital to those who need it the most is massive

Kempen Capital Management NV (KCM) is the management company of Kempen European Property Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM 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 are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.