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

Michiel van Dijk, Erwin Dut, Sander van Oort

Performance per 2018-11-30 (rebased)

No chart data available

Performance per 2018-11-30

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  Fund Benchmark
1 month -2.0 % -3.4 %
3 months -12.1 % -12.4 %
This year -13.4 % -10.1 %
2015 22.7 % 24.3 %
2016 2.8 % 3.2 %
2017 13.2 % 19.1 %
1 year (on annual basis) -11.6 % -7.9 %
3 years (on annual basis) i 0.1 % 2.8 %
5 years (on annual basis) i 6.4 % 8.2 %
Since inception (on annual basis) i 9.7 % 6.6 %
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

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Total fund size
EUR 237.59 M 2018-11-30
Share class size
EUR 50.24 M 2018-11-30
Number of shares
1,196,188 2018-11-30
Net Asset Value i
EUR 40.17 2018-12-14
Morningstar rating â„¢
Morningstar Analyst rating
Neutral

Fund characteristics per 2018-11-30

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  Fund Benchmark
Number of holdings 34 1001
Dividend yield i 3.05 % 2.82 %
Weighted average market capitalization i EUR 1,929 M EUR 2,558 M
P/E ratio i 16.31 12.99
Active share i 96.30 %
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.

Market developments per 2018-11-30

The MSCI Europe small-cap index posted a decline of 3.4% in November, resulting in a YTD decline of 10.1%. Worldwide, stock markets weakened as a result of a combination of economic and political factors, most notably the ongoing trade war between the US and China and the Brexit negotiations. Volatility and risk aversion in the financial markets rose, as illustrated by a rising VIX as well as a declining German bund yield. Corporate earnings releases showed weakness in cyclical sectors like automotive, shipping and semiconductor equipment as many global value chains run on low inventories and prepare for further economic weakness in the months ahead. The Fund decreased in value in November, outperforming the benchmark. Year to date, the Fund is down 13.3%.

Looking forward, European growth appears to have eased from the levels recorded in previous quarters. Politics will remain an important influence on market sentiment – particularly the continuing evolution of Brexit negotiations and budget risks in Italy. For investors it is key to remain prudent when assessing the short term and long term earnings outlook of companies, seeking a margin of safety in their valuations as well as mitigate portfolio risks through sufficient diversification over sectors and geographies. With share prices considerably lower, current markets offer ample opportunities to invest in quality companies at attractive valuations that are in our investable universe.

Portfolio developments per 2018-11-30

The best performing companies were Greggs, Hill & Smith and Huhtamaki, Greggs, a bakery retailer in the UK, showed a strong share price reaction following an excellent trading update. The company reported like-for-like sales growth of 4.5% for the 8 weeks to November 24. The company also raised its full year guidance of profit before tax to at least GBP86m. Hill and Smith benefitted from a good trading update and the announcement from the UK government of a further significant investment in the UK roads network. The shares are recovering from the impact of the weak H1 2018 results reported in August. Huhtamaki, manufacturer of consumer and specialty packaging for food and drink, recovered after a weak Q3 update at the end of October which was impacted by higher costs and uncertainty in emerging markets and weaker currencies.

Weakest performers were Rotork, Simcorp and First Derivatives. Rotork, active in electric valve actuators and gas and fluid flow control systems, sold off following a weaker than expected 3Q trading update and fall in the oil price. After a strong H1 2018 order intake, Q3 orders were slightly down year-over-year, which was partly related to project timing. SimCorp, a provider of specialty software for the investment management industry, reported weaker than expected 3Q18 results and order intake. Despite the miss the company reiterates its FY18 outlook of 10-15% revenue growth and 24.5%-27.5% EBIT margin and implies performance is much more back end loaded than expected. First Derivatives reported inline 1H19 results, improved disclosure and reassuring comments on sales/EBITDA for the remainder of the year but shares were under severe pressure due to derating of high growth businesses in general.
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 2018-11-30 (rebased)

No chart data available

Performance per 2018-11-30

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  Fund Benchmark
1 month -2.0 % -3.4 %
3 months -12.1 % -12.4 %
This year -13.4 % -10.1 %
2015 22.7 % 24.3 %
2016 2.8 % 3.2 %
2017 13.2 % 19.1 %
1 year (on annual basis) -11.6 % -7.9 %
3 years (on annual basis) i 0.1 % 2.8 %
5 years (on annual basis) i 6.4 % 8.2 %
Since inception (on annual basis) i 9.7 % 6.6 %
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

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Distributing
Yes
Last dividend
EUR 0.50
Ex-date last dividend
2018-07-23
Number of distributions per year
2
Dividend calendar

Risk analysis (ex post) per 2018-11-30

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  3 years Since inception
Maximum drawdown i -15.86 % -59.77 %
Tracking error i 4.89 % 8.03 %
Information ratio i -0.55 0.39
Beta i 0.98 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 (2018-11-30)

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  Contribution i Performance i
Greggs 0.76 % 19.92 %
Hill & Smith 0.73 % 21.76 %
Huhtamaki 0.31 % 8.99 %
Sabre Insurance Group 0.29 % 8.94 %
Ion Beam Applications 0.13 % 6.03 %

Bottom 5 contribution (2018-11-30)

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  Contribution i Performance i
First Derivates -0.81 % -35.72 %
SimCorp -0.48 % -17.80 %
Rotork -0.45 % -12.61 %
Consort Medical -0.26 % -10.38 %
Implenia -0.25 % -8.16 %

Geographic allocation (2018-11-30)

35.9 %
United Kingdom
10.7 %
Germany
9.4 %
Sweden
7.8 %
Italy
7.6 %
Switzerland
7.5 %
Finland
6.5 %
Spain
4.9 %
Netherlands
3.6 %
Ireland
1.5 %
Cash
4.7 %
Overig
Totaal
100 %

Top 10 holdings (2018-11-30)

4.5 %
Greggs
4.2 %
Hill & Smith
4.0 %
Aurelius
3.8 %
Huhtamaki
3.8 %
Sweco
3.7 %
Amer Sports
3.6 %
Kingspan Group
3.6 %
FDM Group Holdings
3.6 %
Sabre Insurance Group
3.5 %
Hilton Food Group
Totaal
38.2 %

Sector allocation (2018-11-30)

31.0 %
Industrial Goods & Services
12.8 %
Technology
12.1 %
Retail
8.9 %
Food & Beverage
7.8 %
Automobiles & Parts
6.1 %
Personal & Household Goods
4.4 %
Health Care
4.0 %
Financial Services
3.6 %
Insurance
3.4 %
England
5.9 %
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. 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

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

Other costs

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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

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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

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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 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. 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.