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

Profile

Kempen International Funds SICAV - Kempen (Lux) European Small-cap Fund (the Fund) aims to generate strong long-term investment results by investing in a concentrated portfolio of small European companies. The Fund is managed on the basis of a bottom-up stock picking strategy that focuses on the identification of high quality companies and special situations. High quality companies have a proven and sustainable competitive advantage which is characterised by strong returns on invested capital, while special situations include companies that will benefit from a restructuring of their cost base or capital structure, a change in management, or for example, new regulation.

The fund manager believes that consistent investment results can be achieved using its investment philosophy that focuses on earnings as a key driver of stock prices in the long run, and change within a company as a catalyst. The Fund only invests when risk and reward are asymmetrically related.

Management team

Mark McCullough, Tommy Bryson, Analysts: Karen McGrath, Michael Gray, Athole Skinner

Performance per 2018-05-31 (rebased)

No chart data available

Performance per 2018-05-31

Slide to see more
  Fund Benchmark
1 month 3.6 % 1.7 %
3 months 5.8 % 4.1 %
This year 3.0 % 3.0 %
2015 22.7 % 24.3 %
2016 2.8 % 3.2 %
2017 13.2 % 19.1 %
1 year (on annual basis) 3.2 % 8.3 %
3 years (on annual basis) i 6.3 % 8.4 %
5 years (on annual basis) i 13.2 % 14.5 %
Since inception (on annual basis) i 10.9 % 7.5 %
On 23 October 2013 Kempen European Smallcap Fund (KESF) was merged with Kempen (Lux) European Small-cap Fund. In May 2009 the first retail class of the Fund was launched. The results shown of the period before May 2009 (date of first retail class) are those of KESF. KESF had a similar investment structure and cost structure, but had a different tax regime that could have influenced the returns shown. In November 2013 the rebate free class (BN) of Kempen (Lux) European Small-cap Fund was launched. The results shown of the period October 2013 - November 2013 are those of class B of the same fund. The higher management fee of class B has had an impact on the performance quoted. 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 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

Slide to see more
Total fund size
EUR 373.84 M 2018-05-31
Share class size
EUR 80.10 M 2018-05-31
Number of shares
1,588,501 2018-05-31
Net Asset Value i
EUR 50.13 2018-06-21
Morningstar rating â„¢
Morningstar Analyst rating
Neutral

Fund characteristics per 2018-05-31

Slide to see more
  Fund Benchmark
Number of holdings 33 991
Dividend yield i 2.48 % 2.41 %
Weighted average market capitalization i EUR 2,843 M EUR 3,042 M
P/E ratio i 19.12 15.93
Active share i 96.50 %
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. The management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no. 166063.

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 2018-05-31

The European small-cap fund increased in May, outperforming the benchmark. The best performing companies were Simcorp, Sweco and Ion Beam. Greggs, Dia and Dunelm were the worst performers.

The European small-cap index climbed 1.8% in May, continuing the positive momentum from April. Political uncertainty remained to the fore, nowhere more so than in Italy where toing and froing over new government formation caused Europe-wide volatility in markets late in the month. Looking into June, Spain will likely join Italy in dominating headlines from political instability, where relevant developments will continue to influence markets. In this context we note that our Italian and Spanish holdings have limited operational or revenue exposure to their domestic economies so their intrinsic value ought not to be materially affected. More broadly in Europe economic data weakened during May. PMIs in particular disappointed relative to expectations. In this context of higher economic and political uncertainty we saw ‘Quality’ style outperform ‘Value’, to the benefit of our strategy. The softer data gives the ECB a difficult job in deciding when to further tighten monetary policy, especially when combined with the significant increase in inflation seen during May – driven largely by rising energy costs from oil’s continuing recovery towards $80 per barrel. This job is easier for the Fed where recent data reflects a strengthening US economy, their own political volatility notwithstanding. The US remains an important end-market for many of our portfolio companies. Looking through the noise we remain focused on the long-term prospects of our investments, ensuring that portfolio weighting reflects valuation opportunity.

Denmark, Switzerland and Norway were the best performing countries during the quarter while Italy, Spain and France were the worst. Energy, information technology and healthcare were the strongest outperforming sectors with utilities, financials and telecoms lagging.

Portfolio developments per 2018-05-31

There were no new complete purchases or sales during May.

As the voting season starts to quieten, we can review the AGM results to see which items passed and failed relative to our votes. As we have discussed previously remuneration policies were at the forefront of our dialogue with companies surrounding AGMs. Another interesting topic raised was an item seeking to introduce anti-takeover measures – a so-called ‘poison pill’. Our view is that shareholders ought to be have the opportunity to decide on the relative merit of any given takeover offer without the company holding a veto right, so we opposed the item. Preparation for voting on each AGM and EGM takes time and research, but the importance of this analysis is not to be underestimated. Engagement with companies before and after voting on these items can help strengthen company governance and protect shareholders’ interests.

Looking forward, European growth should remain robust and we expect further moderate monetary policy tightening from Central Banks. Given the greater domestic focus of European Small-caps we believe the asset class is well placed to benefit from the macroeconomic improvement. Politics will remain an important influence on market sentiment - particularly the continuing evolution of Brexit negotiations. This combination of modest uncertainty in a favourable economic landscape provides good opportunity in seeking out our favoured combination of quality companies at attractive valuations.
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. The management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no. 166063.

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 2018-05-31 (rebased)

No chart data available

Performance per 2018-05-31

Slide to see more
  Fund Benchmark
1 month 3.6 % 1.7 %
3 months 5.8 % 4.1 %
This year 3.0 % 3.0 %
2015 22.7 % 24.3 %
2016 2.8 % 3.2 %
2017 13.2 % 19.1 %
1 year (on annual basis) 3.2 % 8.3 %
3 years (on annual basis) i 6.3 % 8.4 %
5 years (on annual basis) i 13.2 % 14.5 %
Since inception (on annual basis) i 10.9 % 7.5 %
On 23 October 2013 Kempen European Smallcap Fund (KESF) was merged with Kempen (Lux) European Small-cap Fund. In May 2009 the first retail class of the Fund was launched. The results shown of the period before May 2009 (date of first retail class) are those of KESF. KESF had a similar investment structure and cost structure, but had a different tax regime that could have influenced the returns shown. In November 2013 the rebate free class (BN) of Kempen (Lux) European Small-cap Fund was launched. The results shown of the period October 2013 - November 2013 are those of class B of the same fund. The higher management fee of class B has had an impact on the performance quoted. 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 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

Slide to see more
Distributing
Yes
Last dividend
EUR 0.50
Ex-date last dividend
2018-01-22
Number of distributions per year
2
Dividend calendar

Risk analysis (ex post) per 2018-05-31

Slide to see more
  3 years Since inception
Maximum drawdown i -8.82 % -59.77 %
Tracking error i 4.57 % 8.08 %
Information ratio i -0.45 0.42
Beta i 0.97 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. The management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no. 166063.

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 (2018-05-31)

Slide to see more
  Contribution i Performance i
SimCorp 0.58 % 14.92 %
Sweco AB 0.54 % 16.22 %
Ion Beam Applications 0.50 % 32.51 %
Kardex 0.42 % 12.57 %
Amer Sports 0.34 % 8.66 %

Bottom 5 contribution (2018-05-31)

Slide to see more
  Contribution i Performance i
Greggs -0.54 % -13.38 %
Distribuidora Internac.de Alimentacion -0.46 % -24.39 %
Dunelm Group -0.11 % -4.44 %
Basware -0.09 % -5.37 %
Aurelius -0.05 % -2.13 %

Geographic allocation (2018-05-31)

21.9 %
United Kingdom
13.0 %
Switzerland
12.1 %
Italy
10.3 %
Germany
9.4 %
Spain
8.9 %
Finland
8.1 %
Sweden
4.8 %
Ireland
4.2 %
Denmark
3.3 %
Cash
4.1 %
Overig
Totaal
100 %

Top 10 holdings (2018-05-31)

5.0 %
Cie Automotive
4.8 %
Industria Macchine Automatiche
4.8 %
Kingspan Group
4.2 %
SimCorp
4.2 %
Amer Sports
3.8 %
Aurelius
3.8 %
Sweco
3.7 %
Moncler
3.7 %
Kardex
3.5 %
Brembo Spa
Totaal
41.6 %

Sector allocation (2018-05-31)

30.1 %
Industrial Goods & Services
14.6 %
Retail
10.2 %
Technology
9.8 %
Automobiles & Parts
7.3 %
Personal & Household Goods
7.1 %
Construction & Materials
6.2 %
Health Care
4.8 %
Food & Beverage
3.8 %
Financial Services
2.9 %
Overig
3.3 %
Cash
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. The management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no. 166063.

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

Slide to see more
Management fee i
0.75 %
Service fee i
0.20 %
Taxe d'abonnement i
0.05 %
Expected ongoing charges i
1 %

Other costs

Slide to see more
Upward swing factor i
0.50 %
Downward swing factor i
0.30 %
As of 1 January 2018 the swing factor has been adjusted from 0.45%/0.45% to 0.50%/0.30%.
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. The management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no. 166063.

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

Slide to see more
Share class
BN i
Investor type
Private
Distributing
Yes
Benchmark i
MSCI Europe Small Cap Total Return Index
Investment category
Small-caps
Universum
European Small- & Mid-caps
Inception date
2013-11-07
Domicile
Luxembourg
May be offered to all investors in
Luxembourg, 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„¢
Morningstar Analyst rating
Neutral

Tradability

Slide to see more
Minimum subscription
Initial subscriptions €1,000
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU0927663731
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. The management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no. 166063.

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. The management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no. 166063.

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 fund approach to Responsible Investment

Exclude

Screen on controversies using MSCI ESG research.

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

Integrate

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

We undertake our own fundamental ESG research on each company then an independent sustainability consultant applies the scores which drive the rating.

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

Engage

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

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

As long-term shareholders it is our fiduciary duty to consistently encourage positive change through engagement and exercising our 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. The management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no. 166063.

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.