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

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 2019-04-30 (rebased)

No chart data available

Performance per 2019-04-30

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  Fund Benchmark
1 month 6.4 % 4.6 %
3 months 14.3 % 9.6 %
This year 22.0 % 19.5 %
2016 2.0 % 3.2 %
2017 12.3 % 19.1 %
2018 -18.6 % -15.9 %
1 year (on annual basis) 0.1 % -0.8 %
3 years (on annual basis) i 6.1 % 8.8 %
5 years (on annual basis) i 7.9 % 8.9 %
Since inception (on annual basis) i 10.0 % 7.0 %
On 23 October 2013 Kempen European Smallcap Fund (KESF) was merged with Kempen (Lux) European Smallcap Fund (the Fund). In May 2009 the first private class of the Fund was launched. The results shown of the periods before 15 May 2009 (date of first private class) are those of KESF. KESF had a similar investment and cost structure, but had 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 181.78 M 2019-04-30
Share class size
EUR 2.49 M 2019-04-30
Number of shares
28,676 2019-04-30
Net Asset Value i
EUR 84.84 2019-05-22
Morningstar rating â„¢

Fund characteristics per 2019-04-30

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  Fund Benchmark
Number of holdings 39 991
Dividend yield i 2.44 % 2.57 %
Weighted average market capitalization i EUR 2,474 M EUR 3,043 M
P/E ratio i 17.59 15.44
Active share i 95.46 %
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 2019-04-30

In April the Fund (I-class) increased by 6.5% (net of fees), versus a 4.6% increase for the MSCI Europe small-cap index. Year to date, the Fund (I-class) increased by 22.4% (net of fees) versus a 19.5% increase of the benchmark.

Portfolio developments per 2019-04-30

In April we have expanded our portfolio with one new name: Hikma Pharmaceuticals. During the month we have also closed our position in Implenia.

The best performing companies were Addtech, Brembo and Kingspan. Addtech (+17%) did not issue relevant press releases during the month. In our view the share price increase was driven by generally buoyant market sentiment for European small cap industrial companies. Brembo (+16%) shares performed strongly as its chairman announced that the controlling family would accept the reduction of their stake below 50% in case of a sizeable acquisition. Kingspan’s (+14%) share price increased supported by general positive market sentiment on top of which the group announced the intention to acquire two units of the Belgian Recticel. However, Recticel subsequently announced not to be willing to pursue this offer.

The weakest performers were Fabege, TAKKT and Viscofan. Fabege (-3%) reported first quarter results in line with expectations. Both rental income and net operating income rose 19%, to SEK 718m and SEK 509m respectively. The pipeline of new projects screens well, but the company faces some cost increases in these projects. TAKKT (-4%) reported a strong start of the year. The organic sales growth of 5% in 1Q 2019 is well balanced between EU & US and in line with previous three quarters. Despite the strong start of the year the company reiterates FY19 guidance of ‘slight’ organic sales growth suggesting a slowdown in the remainder of the year. Although partly explained by a more difficult comparison basis, management is also cautious on the macro environment given the deterioration in leading macroeconomic indicators. The unchanged FY19 12-16% EBITDA margin guidance looks realistic given the 12.7% shown in the first quarter and the cost savings measures that management plans to implement in case sales growth slows. Viscofan (-4%) shares were weak as the African Swine Fever outbreak in China continues to worsen with pork production loss in China of 25-35% in 2019, possibly impacting Viscofan’s earnings later in the year.

ESG commentary
Corporate governance is an important constituent in our investment decision making process. We promote governance codes around the world and have participated in several consultations in European markets. With the revision of the German Corporate Governance Code in 2019, investors’ attention is raised for board independence and remuneration practices. We previously engaged with our portfolio company SAF-Holland, an auto components manufacturer, on board independence and are pleased to see a majority independent board since the 2019 AGM. In addition, we appreciate the company signing the UN Global Compact in the beginning of the year.
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 2019-04-30 (rebased)

No chart data available

Performance per 2019-04-30

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  Fund Benchmark
1 month 6.4 % 4.6 %
3 months 14.3 % 9.6 %
This year 22.0 % 19.5 %
2016 2.0 % 3.2 %
2017 12.3 % 19.1 %
2018 -18.6 % -15.9 %
1 year (on annual basis) 0.1 % -0.8 %
3 years (on annual basis) i 6.1 % 8.8 %
5 years (on annual basis) i 7.9 % 8.9 %
Since inception (on annual basis) i 10.0 % 7.0 %
On 23 October 2013 Kempen European Smallcap Fund (KESF) was merged with Kempen (Lux) European Smallcap Fund (the Fund). In May 2009 the first private class of the Fund was launched. The results shown of the periods before 15 May 2009 (date of first private class) are those of KESF. KESF had a similar investment and cost structure, but had 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 2019-04-30

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  3 years Since inception
Maximum drawdown i -20.70 % -59.77 %
Tracking error i 5.17 % 8.00 %
Information ratio i -0.53 0.38
Beta i 0.99 1.04
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 (2019-04-30)

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  Contribution i Performance i
AddTech 0.52 % 17.14 %
Kingspan Group 0.46 % 13.60 %
Brembo Spa 0.46 % 15.62 %
BE Semiconductor Industries 0.45 % 14.99 %
Rotork 0.41 % 11.89 %

Bottom 5 contribution (2019-04-30)

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  Contribution i Performance i
Viscofan -0.13 % -3.95 %
Takkt -0.09 % -4.37 %
Fabege -0.07 % -2.61 %
Hikma Pharmaceuticals -0.05 % -2.63 %
Sabre Insurance Group -0.03 % -2.56 %

Geographic allocation (2019-04-30)

35.2 %
United Kingdom
10.0 %
Sweden
8.2 %
Netherlands
7.8 %
Germany
6.8 %
Italy
5.9 %
Ireland
5.7 %
Spain
4.8 %
Denmark
3.6 %
Finland
3.0 %
Switzerland
3.6 %
Cash
5.3 %
Overig
Total
100 %

Top 10 holdings (2019-04-30)

3.8 %
Kingspan Group
3.7 %
Industria Macchine Automatiche
3.7 %
Rotork
3.6 %
Huhtamaki
3.6 %
Sweco
3.5 %
Hilton Food Group
3.5 %
Greggs
3.2 %
Viscofan
3.1 %
Brembo Spa
3.1 %
Safestore
Total
34.8 %

Sector allocation (2019-04-30)

33.5 %
Industrial Goods & Services
11.0 %
Technology
8.7 %
Automobiles & Parts
8.2 %
Food & Beverage
5.6 %
Retail
5.1 %
Health Care
5.0 %
Personal & Household Goods
4.2 %
Banks
4.1 %
Insurance
3.1 %
England
3.6 %
Other
7.8 %
Overig
Total
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
1.50 %
Service fee i
0.20 %
Taxe d'abonnement i
0.05 %
Expected ongoing charges i
1,75 %

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
A i
Investor type
Private
Distributing
No
Benchmark i
MSCI Europe Small Cap Total Return Index
Investment category
Small-caps
Universum
European Small- & Mid-caps
Inception date
2009-05-15
Domicile
Luxembourg
May be offered to all investors 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.
Depositary and custodian
J.P. Morgan Bank Luxembourg S.A.
Morningstar rating â„¢

Tradability

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Minimum subscription
Initial subscription €1
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU0427931596
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.