Kempen Lux Sustainable European Small-Cap Fund - Class A

Profile

Kempen International Funds SICAV - Kempen (Lux) Sustainable Small-cap Fund (the Fund) aims to generate strong long-term investment results by investing in a concentrated portfolio of smaller European companies that adhere to strict sustainability criteria integrating environmental, ethical, and social standards.

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.

Novethic has certified the Fund with the SRI Label. Novethic Research Centre is a non-profit organisation, that screens sustainable portfolios. Novethic guarantees that labelled funds systematically take into account ESG criteria and that their investment process and composition are transparent.

Management team

Mark McCullough, Tommy Bryson. Analysts: Kathleen Dewandeleer, Karen McGrath, Michael Gray

Performance per 2017-10-31 (rebased)

No chart data available

Performance per 2017-10-31

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  Fund Benchmark
1 month 1.1 % 2.1 %
3 months 5.0 % 6.0 %
This year 13.5 % 18.5 %
2014 3.9 % 6.3 %
2015 23.3 % 24.3 %
2016 -1.5 % 3.2 %
3 years (on annual basis) i 14.1 % 16.6 %
5 years (on annual basis) i 13.9 % 17.7 %
Since inception (on annual basis) i 12.3 % 11.2 %
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 239.28 M 2017-10-31
Number of shares
68,532 2017-10-31
Net Asset Value i
EUR 26.73 2017-11-17
Morningstar Analyst rating
Neutral

Fund characteristics per 2017-10-31

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  Fund Benchmark
Number of holdings 32 980
Dividend yield i 2.24 % 2.22 %
Weighted average market capitalization i EUR 2,680 M EUR 3,033 M
P/E ratio i 21.22 14.25
Active share i 97.99 %
Kempen (Lux) Sustainable 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 Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund. 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.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Information Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg 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.

Market developments per 2017-10-31

The portfolio increased in October, underperforming the benchmark. The best performing positions were CIE Automotive, Straumann and Addtech. DIA, Sweco and IBA were the worst performers. CIE released another set of strong quarterly results and delivered a positive message for the next strategy meeting which will take place in November.

The European small cap index increased in October. In a further sign that economic growth in Europe is accelerating the ECB has cut the rate at which it buys securities to €30bn a month from €60bn. The UK posted a strong Q3 GDP growth. In Spain, Catalonia made again calls for an independent state and the Catalonian parliament declared independence. This is largely symbolic as under Spanish law it is illegal. The Madrid government endorsed article 155 and took direct control of the region. Elections have now been announced to vote on a new regional government in Catalonia by 21 December. We see very limited impact on our portfolio.

The UK, Portugal and Switzerland were the best performing countries during the month while Ireland, Finland and Italy were the weakest. From a sector perspective, information technology, telecoms and materials were the strongest performers with real estate, industrials and energy lagging.

Portfolio developments per 2017-10-31

We bought a new position in FDM. Its activities involve recruiting, training and placing its own permanent IT and business consultants (known as ‘Mounties’) at client sites. FDM train the Mounties and in return the Mounties agree to work for FDM for 2 years. FDM is a niche market leader and management is solid. The market underestimates the long term growth opportunities for this business.

There were no sales in October.

We are seeing a continued focus on quality in the supply chain with significant reputational risks arising. The recent scandal of the Japanese company Kobe Steel is an example of this. The depth of this company’s reach should not be underestimated, and therefore we engaged with our companies that have some exposure to the automotive sector that could have potentially acquired aluminium from Kobe steel. We are reassured that the companies in our portfolio have supplier auditing standards in place. Only one company had minimal exposure having purchased from Kobe Steel.

Looking forward, market focus will likely remain on politics – the Independence elections in Catalonia in December and the continuing evolution of Brexit negotiations. Given the greater domestic focus of European small-caps we believe the asset class is well placed to benefit from the tailwind of macroeconomic improvement. In our opinion the Fund is well positioned to benefit from the winning combination of quality companies at attractive valuations. As bottom up stock pickers, we continue to see good opportunities in the European small-cap space.
Kempen (Lux) Sustainable 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 Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund. 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.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Information Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg 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.

Performance per 2017-10-31 (rebased)

No chart data available

Performance per 2017-10-31

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  Fund Benchmark
1 month 1.1 % 2.1 %
3 months 5.0 % 6.0 %
This year 13.5 % 18.5 %
2014 3.9 % 6.3 %
2015 23.3 % 24.3 %
2016 -1.5 % 3.2 %
3 years (on annual basis) i 14.1 % 16.6 %
5 years (on annual basis) i 13.9 % 17.7 %
Since inception (on annual basis) i 12.3 % 11.2 %
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
No

Risk analysis (ex post) per 2017-10-31

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  3 years Since inception
Maximum drawdown i -10.01 % -62.09 %
Tracking error i 4.25 % 5.15 %
Information ratio i -0.59 0.21
Beta i 1.03 0.98
Kempen (Lux) Sustainable 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 Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund. 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.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Information Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg 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.

Top 5 contribution (2017-10-31)

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  Contribution i Performance i
Cie Automotive 0.48 % 12.97 %
Straumann Holding 0.47 % 10.31 %
AddTech 0.30 % 12.26 %
BE Semiconductor Industries 0.28 % 14.61 %
Belimo 0.26 % 8.64 %
Percentages shown for contributions and performances are based on Euros.

Bottom 5 contribution (2017-10-31)

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  Contribution i Performance i
Distribuidora Internac.de Alimentacion -0.43 % -14.89 %
Sweco AB -0.42 % -11.18 %
Ion Beam Applications -0.28 % -8.49 %
Aurelius -0.25 % -5.59 %
Mekonomen -0.20 % -9.37 %
Percentages shown for contributions and performances are based on Euros.

Geographic allocation (2017-10-31)

23.3 %
United Kingdom
15.2 %
Switzerland
10.3 %
Germany
9.1 %
Spain
8.0 %
Italy
7.9 %
Sweden
7.5 %
Finland
4.8 %
Ireland
3.7 %
Denmark
3.0 %
Belgium
2.2 %
The Netherlands
5.2 %
Cash
Totaal
100 %

Top 10 holdings (2017-10-31)

4.9 %
Straumann Holding
4.8 %
Kingspan Group
4.7 %
Duerr
4.2 %
Industria Maccine Automatiche
4.2 %
Aurelius
4.1 %
Cie Automotive
4.1 %
Dignity
3.9 %
Greggs
3.8 %
Brembo Spa
3.7 %
SimCorp
Totaal
42.4 %

Sector allocation (2017-10-31)

28.8 %
Industrial Goods & Services
14.6 %
Retail
10.0 %
Health Care
9.7 %
Automobiles & Parts
9.5 %
Technology
7.7 %
Personal & Household Goods
4.8 %
Construction & Materials
4.2 %
Financial Services
3.4 %
Food & Beverage
2.1 %
Other
5.2 %
Cash
Totaal
100 %
Kempen (Lux) Sustainable 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 Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund. 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.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Information Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg 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.

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
0.45 %
Kempen (Lux) Sustainable 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 Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund. 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.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Information Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg 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.

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
Sustainable European Small- & Mid-caps
Inception date
2015-04-21
Domicile
Luxembourg
May be offered to all investors in
Belgium, France, 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 Analyst rating
Neutral

Tradability

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Minimum subscription
€1,000
Listed
no
Pricing frequency
Daily
ISIN i
LU0427934343
Kempen (Lux) Sustainable 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 Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund. 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.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Information Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg 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.
Kempen (Lux) Sustainable 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 Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund. 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.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Information Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg 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.

KCM Vision

Kempen Capital Management is an asset manager with a long-term investment approach. We strongly believe in engaged shareholdership that benefits all stakeholders. As a long-term responsible investor, we firmly believe that active ownership and shareholder engagement contribute to positive change across the board.

Our KCM wide approach to responsible investment

To put our vision into action we engage with our investment targets on a wide array of strategic, financial, environmental, social and governance (ESG) topics. Our long-term investment worldview paired with thorough analysis and an experienced and diverse ESG team allow us to use both voting and engagement as means to consistently encourage positive change. Through this process of constructive engagement, we are able to contribute to the development of principles and standards of corporate responsibility within companies.

Fund approach to Responsible Investment

Exclude

We exclude certain activities that are not aligned to a sustainable fund. These include alcohol, animal testing, tobacco, pornography, fur, gambling, nuclear energy and thermal coal.

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) Sustainable 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 Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund. 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.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Information Document and the prospectus. These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg 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.