As of 10 September 2019 Kempen (Lux) European Small-cap Fund is incorporated into Kempen (Lux) Sustainable European Small-cap Fund. Read the official announcement here.

Kempen Lux Sustainable European Small-Cap Fund - Class A

Profile

Kempen (Lux) Sustainable European Small-cap fund (the Fund) offers Investors the opportunity to invest in an actively and professionally managed portfolio of smaller listed European companies, while at the same time complying with strict exclusion and sustainability criteria. These are defined as companies with a maximum market capitalisation at the time of initial purchase of either EUR 5 billion, or the highest market capitalisation of any company included in the MSCI Europe Small Cap Total Return Index, whichever is the greater. The strategy primarily aims to generate a better long-term return than the benchmark.

The portfolio construction process involves a disciplined end to end framework initially utilizing proprietary in-house stock filters screening for high quality and attractively valued stocks. Thereafter,
fundamental in-house research is carried out to identify high conviction investment ideas. The end result is a portfolio of 30-50 stocks, well diversified across all regions and sectors.

On 10 September 2019 Kempen (Lux) European Small-cap Fund was incorporated into Kempen (Lux) Sustainable Small-cap Fund. You can find more information under the Documents tab.

 

Management team

Michiel van Dijk, Erwin Dut, Sander van Oort; Ingmar Schaefer

Performance per 2020-12-31 (rebased)

No chart data available

Performance per 2020-12-31

Slide to see more
  Fund Benchmark
1 month 3.5 % 6.0 %
3 months 13.0 % 16.6 %
This year -0.6 % 4.6 %
2017 11.2 % 19.1 %
2018 -19.0 % -15.9 %
2019 27.9 % 31.4 %
1 year (on annual basis) -0.6 % 4.6 %
3 years (on annual basis) i 1.0 % 5.0 %
5 years (on annual basis) i 2.5 % 7.3 %
Since inception (on annual basis) i 10.1 % 10.1 %
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 136.48 M 2020-12-31
Share class size
EUR 0.61 M 2020-12-31
Number of shares
21,851 2020-12-31
Net Asset Value i
EUR 29.02 2021-01-21
Turnover rate
55.71 %
Morningstar rating â„¢

Fund characteristics per 2020-12-31

Slide to see more
  Fund Benchmark
Number of holdings 42 977
Dividend yield i 1.64 % 1.91 %
Weighted average market capitalization i EUR 3,043 M EUR 2,970 M
P/E ratio i 18.52
Active share i 93.30 %
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 Dutch Authority for the Financial Markets (AFM).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Developments per 2020-12-31

In December the Fund (I-class) increased by 3.6% (net of fees) while the MSCI Europe Small-cap index increased by 6.0%.

Although business news is traditionally quiet, December remained tense in terms of macroeconomic and political events. With a large number of negotiating points unresolved, it remained unclear until the last moment whether there would be a Brexit deal. In the United States, the approval of the COVID-19 stimulus package by president Trump was uncertain for quite some time. Ultimately, an agreement was reached in both cases which caused financial markets to remain calm. There were also reassuring words from the FED, which announced an increase in growth forecasts for 2020 and the coming years on the back of better-than-expected economic data and pledged to continue at the current pace of USD120 billion in bonds each month. Following last month's vaccine euphoria, December statistics for both COVID-19 infections and hospitalizations show that the road to normalization will not be a straight line.

During the month we added Computacenter and Signify to the portfolio and fully sold the remaining position in Addtech. Following the regulatory approval of COVID-19 vaccines the scenario of normalization of global economies in the course of FY21 looks increasingly likely. However the short term challenges remain largely unchanged as daily statistics on new COVID-19 infections and hospitalization rates show that the virus is everything but contained. Although medium-term prospects are encouraging, short-term challenges remain. Financial markets can therefore remain volatile, especially as hurdles like regulatory approval, availability of the vaccine and logistics determine the speed and shape of the recovery. Despite the recent strong move in stock markets we still see attractive long-term potential for our portfolio holdings but remain focused on near-term earnings risks and balance sheet strength. As flagged earlier we continue to focus on the margin of safety in our valuations.

In December Befesa, BESI and Bakkafrost delivered the strongest contribution to the portfolio. Befesa (+18.5%) shares benefited from a combination of strong momentum in its recycling capacity construction program in China as well as continued rising zinc prices which allows the company to extent its pricing hedges over a longer period of time, thus increasing earnings visibility. As the semiconductor market is poised for strong growth in 2021, BESI (+13.1%) continued to benefit from money flowing to this sector as investors are searching for growth in the low yielding environment. BESI is the market leader in advanced packaging, which is also underlined by their recently announced partnership with Applied Materials. Advanced packaging becomes increasingly important for miniaturization, making BESI more valuable in the whole semiconductor supply chain. Bakkafrost (+11.2%) shares recovered in December on the back of stabilizing salmon spot prices and the expectation of increased global demand for salmon (and salmon prices) in 2021 due to resumption of out of home food consumption whilst global salmon supply growth remains subdued. Also, in 2021 Bakkafrost expects to see the first synergy effects of its acquisition of Scottish Salmon Co.

The companies with the worst contribution to the portfolio in December were Software AG, Hikma and Sbanken. Besides a broker downgrade there was no company specific news around Software AG (-7.5%). The company is in the midst of the subscription transition, making revenues and growth more predictable going forward. However this transition comes along with short term margin pressure. Financial analysts and investors are trying to guess whether 2020 or 2021 will be trough in margins. We tend to look longer-term and believe that the company is on track to meet its mid-term ambitions, also fuelled by strong bookings from partners like Microsoft and Adobe. Assuming the company will reach its financial targets, we believe Software AG is undervalued on a standalone basis, leaving aside the massive undervaluation in comparison to other software companies. The shares of Hikma (-3.4%) had a soft finish to a strong year despite positive news during the month that a key product (generic Advair) had received regulatory approval. In September 2020 it was said that the launch of this product was delayed until the first quarter of 2021. Broadly in line with the sector Sbanken (-2.3%) shares traded slightly lower during the month without relevant company specific news. We believe the sector weakness is explained by the issuance of a new recommendation by the European Systematic Risk Board (ESRB) to refrain from making dividend distributions until 30 September 2021, unless extreme caution is applied and distributions do not exceed conservative thresholds set by the national supervisory authorities.

ESG commentary
In 2020 we announced a new climate change policy and ambitious emission reduction targets. We committed to a net zero emission portfolio by 2050 that is in line with the Paris Agreement. We are also working on the alignment of the portfolio with the Climate Transition Pathway, according to which we gradually decarbonize the portfolio to the targeted net zero carbon emissions in 2050. As an active shareholder we deem engagement to be crucial to our successful ESG approach and a catalyst to achieving our newly defined climate change goals. Getting companies to report useful carbon emissions data is key for investors to play a role in the transition. In December we encouraged JOST Werke to increase its disclosure around scope 1 and scope 2 carbon emissions in 2021.

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 Dutch Authority for the Financial Markets (AFM).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.

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 2020-12-31 (rebased)

No chart data available

Performance per 2020-12-31

Slide to see more
  Fund Benchmark
1 month 3.5 % 6.0 %
3 months 13.0 % 16.6 %
This year -0.6 % 4.6 %
2017 11.2 % 19.1 %
2018 -19.0 % -15.9 %
2019 27.9 % 31.4 %
1 year (on annual basis) -0.6 % 4.6 %
3 years (on annual basis) i 1.0 % 5.0 %
5 years (on annual basis) i 2.5 % 7.3 %
Since inception (on annual basis) i 10.1 % 10.1 %
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
No

Risk analysis (ex post) per 2020-12-31

Slide to see more
  3 years Since inception
Maximum drawdown i -30.51 % -62.09 %
Tracking error i 5.09 % 5.15 %
Information ratio i -0.78 0.00
Beta i 1.02 0.99
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 Dutch Authority for the Financial Markets (AFM).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.

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 (2020-12-31)

Slide to see more
  Contribution i Performance i
Befesa 0.52 % 18.54 %
BE Semiconductor Industries 0.34 % 13.13 %
Bakkafrost 0.29 % 11.18 %
JOST Werke 0.27 % 9.95 %
Vesuvius 0.25 % 9.50 %
Percentages shown for contributions and performances are based on Euros.

Bottom 5 contribution (2020-12-31)

Slide to see more
  Contribution i Performance i
Software -0.23 % -7.54 %
Hikma Pharmaceuticals -0.08 % -3.39 %
Sbanken -0.06 % -2.26 %
Fagron -0.04 % -2.16 %
Fabege AB -0.04 % -2.21 %
Percentages shown for contributions and performances are based on Euros.

Geographic allocation (2020-12-31)

26.4 %
United Kingdom
14.3 %
Netherlands
14.2 %
Germany
7.2 %
Sweden
6.8 %
Luxembourg
4.8 %
France
3.8 %
Norway
3.8 %
Belgium
2.7 %
Finland
2.7 %
Austria
2.6 %
Spain
2.4 %
Ireland
2.3 %
Cash
1.6 %
Denmark
1.6 %
Italy
2.8 %
Other
Total
100 %

Top 10 holdings (2020-12-31)

3.9 %
Dialog Semiconductor
3.6 %
ASR Nederland
3.2 %
Befesa
3.1 %
Bunzl
3.1 %
Tate & Lyle
3.1 %
Arcadis
3.0 %
Takkt
2.9 %
Software
2.9 %
JOST Werke
2.9 %
Vesuvius
Total
31.7 %

Sector allocation (2020-12-31)

26.3 %
Industrial Goods & Services
11.8 %
Technology
8.7 %
Food & Beverage
5.8 %
Health Care
5.7 %
Construction & Materials
5.5 %
Automobiles & Parts
5.4 %
Banks
3.9 %
Retail
3.7 %
Media
3.7 %
Belgium
3.6 %
Insurance
2.9 %
Oil & Gas
2.7 %
Germany
2.4 %
Ireland
1.8 %
Sweden
1.7 %
Financial Services
1.0 %
Telecommunications
1.0 %
Personal & Household Goods
2.3 %
Other
Total
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 Dutch Authority for the Financial Markets (AFM).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

 

SWING FACTORS

An overview of the current swing factors are available here.

Ongoing charges

Slide to see more
Management fee i
1.50 %
Service fee i
0.20 %
Taxe d'abonnement i
0.05 %
Expected ongoing charges i
1.75 %
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 Dutch Authority for the Financial Markets (AFM).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.

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
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, Italy, 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.
Depositary and custodian
J.P. Morgan Bank Luxembourg S.A.
Morningstar rating â„¢

Tradability

Slide to see more
Minimum subscription
Initial subscription € 1
Listed
no
Subscription/Redemption 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 Dutch Authority for the Financial Markets (AFM).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.

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) 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 Dutch Authority for the Financial Markets (AFM).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.

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's vision & mission

Kempen Capital Management is an asset manager that believes in stewardship and investment focusing on the long-term for the benefit of all stakeholders. Value creation is at the heart of the services we provide to our clients. We believe that being an engaged shareholder on environmental, social and governance (ESG) issues and retaining a long-term focus, is critical to helping our clients to preserve and create sustainable wealth that has positive real world impact and economic returns.

Kempen wide approach to responsible investment

We are committed to create sustainable alpha. The four pillars of our ESG-policy are:

  • ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.

  • Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.

  • Active ownership: Being responsible stewards of our clients’ capital and using our influence through engagement and voting to improve corporate behaviour on specific ESG issues and achieve positive change

  • Positive impact: Investing with an objective to achieve positive real world outcomes and impact, such as contributing to the UN Sustainable Development Goals.

Â

To put our mission and vision into practice we engage with our investee companies on a wide array of strategic, financial, and ESG topics. As an active owner we use our influence to improve our investee companies’ ESG performance.  This helps us address some of the most pressing and important sustainability issues facing business and the world. Our focus themes for engagement are: human rights, labour rights, climate change and governance.

Â

Through collaboration with other investors and industry think tanks we contribute to the development of principles and standards of corporate responsibility both at sector levels, as well as investee company level.

Â

Our full voting records are available here.

Climate change

As a long-term investor, we believe climate change represents a systemic risk facing the economy, society and environment. We want to consider the risks and opportunities this presents to our investments in the coming decades. We have therefore set a long-term commitment (2050), a mid-term ambition (2030) and short-term objectives (2025).

  • 2050 commitment: Net-zero investor. Â
  • 2030 ambition: To align with a Paris Agreement pathway (listed and non-listed investments) and Dutch Klimaatakkoord.Â
  • 2025 objectives: To align with a pathway towards achieving the Paris Agreement (listed investments) and Dutch Klimaatakkoord goals.[1]

Â

The Kempen climate change policy can be found here (under climate change policy).

Â

[1]We use carbon intensity as a metric to come to the pathway of net-zero emissions. As we care about the direction of travel and reduction of carbon emissions in the economy, it might be that the actual reducing trend may deviate from the suggested average trend line. The pathway is derived from the pathway of the EU Benchmarks.

OUR FUND APPROACH TO RESPONSIBLE INVESTMENT

The investment objective of Kempen (Lux) Sustainable European Small-cap Fund is to offer investors the opportunity to invest in an actively and professionally managed portfolio of smaller listed European companies, while at the same time complying with strict exclusion and sustainability criteria.

Â

By 2025, we aim to align with a pathway towards achieving the Paris Agreement and Dutch Klimaatakkoord goals for our portfolio, as well as the EU Climate Transition Benchmark[2].

Â

Kempen’s ESG policy is implemented in our fund’s investment process by the following pillars: Exclusion, Integration and Active ownership.

Â

[2] The EU Benchmarks consists of two climate benchmarks, Climate Transition Benchmark and Paris Aligned Benchmark, which have the aim to reach net-zero emissions by 2050 - in line with the 1.5?C scenarios from the IPCC. As we care about the direction of travel and reduction of carbon emissions in the economy, it might be that the actual reducing trend may deviate from the average pathway. We use carbon intensity (based on Revenues) as the forward-looking climate metric.

Â

Exclusion & Avoidance

In line with the general Kempen policy, the European Sustainable Small-cap Fund excludes all companies on the KCM Exclusion- or Avoidance list.

Â

Companies that ‘Fail’ or are on ‘Watchlist’ marked against the criteria of the United Nations Global Compact are excluded.

Â

We determine a company’s ESG score (1-5) and exclude companies with a score of 1. Companies with a score of 2 are excluded on a comply or explain basis.

Â

The Sustainable European Small-cap Fund also excludes companies based on additional sustainability criteria as listed in the table below.

Â

More information on our exclusion criteria and thresholds can be found here.

Â

Â

KEMPEN

CRITERIA

ADDITIONAL SUSTAINABILITY CRITERIA

Business Conduct

x     Human Rights

x     Labour

x     Environment

x     Anti-corruption

Product Involvement

x     Controversial Weapons

x     Tobacco

x     Thermal coal

x     Tar sands

x     Adult Entertainment

x     Alcohol

x     Animal Welfare & GMO

x     Gambling

x     Power Generation

       Nuclear

x     Power Generation

       Carbon Intensive

x     (Un)conventional Oil &

       Gas Extraction

x     Weaponry

Â

V

V

V

V

Â

V

V

V

V

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

Â

V

V

V

V

V

Â

V

Â

V

Â

V

Â

Â

ESG integration

In the investment process we assess the ESG profile of a company. We assess each company on a case-by-case basis, taking into account material risks in a given industry in combination with the company’s respective risk exposure, practices and disclosure.

Â

A lower score (1-5) requires a higher return as used in our Discounted Cash Flow (DCF) models. If ESG risks are deemed too severe, an investment in the company will be avoided and/or existing holdings will be sold.

Â

On a quarterly basis, the Kempen Responsible Investment team screens the holdings of the Kempen Sustainable European Small-cap Fund and discusses the findings with the portfolio managers.

Â

Active ownership: Engagement

As active investors we perform comprehensive engagements with our portfolio companies with the objective to unlock value and reduce risk.

Â

Our engagement process defines clear objectives of which the progress and result is tracked and well documented. If at any stage the company refuses to cooperate, divestment has to be considered.

Â

In the first half of 2019, we engaged with 13 companies on strategic, environmental, social and governance issues.

Â

Active ownership: Voting

Exercising our voting rights is also an essential part of our responsible investment philosophy. ISS provides us with voting recommendations based on our own voting and governance policy. Items are further analyzed on a case by case basis.

Â

Often, we inform the company about our voting intention ahead of the meeting and, where there is a recommendation to vote against management, we ask the company to clarify their viewpoints. After careful analysis, we form our own opinion and vote accordingly.

Â

Our full voting records are available here.

Â

Risks

For more information about the mid and long term risks associated with the investments:

--------------------------

Although Kempen Capital Management N.V.’s information providers, including without limitation, MSCI ESG Research LLC and its affiliates (the “ESG Parties”), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of any data herein. None of the ESG Parties makes any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

ESG Report
Febelfin
Screening MSCI ESG research
Screening MSCI ESG research
UN global impact
ESG integration in the investment process
ESG integration in the investment process
Bron EN
disclaimer
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 Dutch Authority for the Financial Markets (AFM).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.