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

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 2018-10-31 (rebased)

No chart data available

Performance per 2018-10-31

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  Fund Benchmark
1 month -9.6 % -7.6 %
3 months -11.8 % -9.8 %
This year -12.1 % -6.9 %
2015 21.8 % 24.3 %
2016 2.0 % 3.2 %
2017 12.3 % 19.1 %
1 year (on annual basis) -13.6 % -6.4 %
3 years (on annual basis) i 1.5 % 5.4 %
5 years (on annual basis) i 6.4 % 9.4 %
Since inception (on annual basis) i 9.6 % 6.8 %
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. The results shown of the periode 15 May 2009 - 23 October 2013 are those of class A of the Fund. as of 23 October 2013 the results shown are those of class B of the Fund. 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 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 239.68 M 2018-10-31
Share class size
EUR 2.24 M 2018-10-31
Number of shares
54,356 2018-10-31
Net Asset Value i
EUR 40.28 2018-11-16
Morningstar rating â„¢
Morningstar Analyst rating
Neutral

Fund characteristics per 2018-10-31

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  Fund Benchmark
Number of holdings 36 1005
Dividend yield i 3.07 % 2.72 %
Weighted average market capitalization i EUR 1,984 M EUR 2,658 M
P/E ratio i 16.18 13.69
Active share i 96.34 %
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 2018-10-31

The Fund decreased in October, underperforming the benchmark. The best performing companies were Greggs, Dunelm and Takkt. IMA, DIA and Basware were the worst performers.

Equity markets fell globally during October as volatility significantly increased in a turbulent month. The European small-cap index fell by 7.6%. The source of this stark drop in risk appetite has not been clear-cut, but can be attributed to a range of ongoing worries – the Trade War beginning to impact corporate earnings, economic indicators softening in many regions, certain Emerging Markets in turmoil, and political uncertainty across Germany, Italy and the UK. In the context of the tremendous rally in global equities over the past decade, and a commensurate rise in valuation levels, a material correction is not unexpected – particularly in the US where markets have risen to a greater height. Corporate earnings have so far been robust (JP Morgan report that over half of the European companies that have published Q3 figures beat estimates; over 80% of the S&P500 also ‘beat’), but October’s sell-off implies greater doubt looking forward. Periods of heightened volatility create excellent buying opportunities for stock-pickers focused on long-term company fundamentals. As such we have commenced buying three New Ideas from our research pipeline during October. These will be reported upon completion.

Ireland, Portugal and Belgium were the best performing countries during the month, while Italy, Denmark and Spain were the worst. Telecoms, utilities and real estate were the best performing sectors during the month, while materials, energy and industrials were the worst.

Portfolio developments per 2018-10-31

We commenced buying three new ideas in October, to be reported in detail once a full position has been built.

We sold our position in DIA during the month. The company unexpectedly announced a substantial Profit Warning in October. The expected profit shortfall was attributed partly to erroneous accounting, and accompanied news that the CFO and Chairman were leaving the company. Due to the greatly heightened uncertainty surrounding this alarming news, and insufficient financial disclosure, we took the decision to sell our position. This follows a year of disappointing share price performance, as the investment case of superior ‘convenience’ supermarket locations and greater price discounting capability failed to materialise over our holding period.

The detrimental impact that plastics are having on our oceans is becoming well publicised. Fresh research from Orb Media suggests that plastic particles or fibres are now commonly found in drinking water. The United Nations has created a Global Plastics Platform to help countries reduce plastic use. Pragmatic solutions are clearly required. For those companies where plastic supply or consumption is a material concern we are discussing the strategies they have in place to reduce and replace. As ever, economic feasibility remains a natural brake on progress, but we are pleased to see greater resource being committed to this area. Stressing the relevance of such environmental concerns remains central to our conversations with management teams.

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. This combination of political and economic uncertainty should provide good stock picking opportunities, at attractive valuations, within our favoured universe of quality companies.
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 2018-10-31 (rebased)

No chart data available

Performance per 2018-10-31

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  Fund Benchmark
1 month -9.6 % -7.6 %
3 months -11.8 % -9.8 %
This year -12.1 % -6.9 %
2015 21.8 % 24.3 %
2016 2.0 % 3.2 %
2017 12.3 % 19.1 %
1 year (on annual basis) -13.6 % -6.4 %
3 years (on annual basis) i 1.5 % 5.4 %
5 years (on annual basis) i 6.4 % 9.4 %
Since inception (on annual basis) i 9.6 % 6.8 %
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. The results shown of the periode 15 May 2009 - 23 October 2013 are those of class A of the Fund. as of 23 October 2013 the results shown are those of class B of the Fund. 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 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 2018-10-31

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  3 years Since inception
Maximum drawdown i -14.40 % -59.77 %
Tracking error i 4.81 % 8.06 %
Information ratio i -0.81 0.35
Beta i 1.00 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 (2018-10-31)

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  Contribution i Performance i
Greggs 0.44 % 10.46 %
Dunelm Group 0.29 % 9.50 %
Takkt 0.26 % 9.76 %
Mekonomen 0.21 % 33.70 %
BE Semiconductor Industries 0.11 % 4.16 %

Bottom 5 contribution (2018-10-31)

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  Contribution i Performance i
Industria Macchine Automatiche -1.15 % -26.40 %
Distribuidora Internac.de Alimentacion -1.13 % -61.40 %
Basware -0.80 % -43.96 %
Viscofan -0.67 % -15.92 %
Sweco AB -0.55 % -12.08 %

Geographic allocation (2018-10-31)

33.4 %
United Kingdom
10.7 %
Germany
9.6 %
Sweden
9.1 %
Switzerland
8.0 %
Finland
7.6 %
Italy
6.6 %
Spain
4.7 %
Netherlands
3.6 %
Ireland
2.2 %
Cash
4.5 %
Overig
Totaal
100 %

Top 10 holdings (2018-10-31)

4.5 %
Greggs
4.1 %
Aurelius
3.8 %
Sweco
3.6 %
Rotork
3.6 %
Hilton Food Group
3.6 %
Kingspan Group
3.6 %
FDM Group Holdings
3.5 %
Amer Sports
3.5 %
AddTech
3.5 %
Viscofan
Totaal
37.2 %

Sector allocation (2018-10-31)

30.1 %
Industrial Goods & Services
13.2 %
Technology
12.1 %
Retail
8.2 %
Food & Beverage
8.0 %
Automobiles & Parts
7.0 %
Personal & Household Goods
4.4 %
Health Care
4.1 %
Financial Services
4.1 %
Construction & Materials
3.4 %
England
3.2 %
Insurance
2.2 %
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
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
0.50 %
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
B 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
2013-10-23
Domicile
Luxembourg
May be offered to all investors in
Belgium, 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 subscription €1,000
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU0943634971
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

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.