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 B

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 2020-05-31 (rebased)

No chart data available

Performance per 2020-05-31

Slide to see more
  Fund Benchmark
1 month 5.1 % 5.2 %
3 months -7.3 % -7.8 %
This year -17.7 % -16.7 %
2017 11.2 % 19.1 %
2018 -19.0 % -15.9 %
2019 27.9 % 31.4 %
1 year (on annual basis) -8.1 % -2.6 %
3 years (on annual basis) i -5.4 % -1.1 %
5 years (on annual basis) i -1.0 % 2.6 %
Since inception (on annual basis) i 9.3 % 9.0 %
On 23 October 2013 Kempen SeNSe Fund (KSF) was merged with Kempen (Lux) Sustainable European Small-cap Fund (the Fund). The results shown of the period before 23 October 2013 are those of KSF. KSF had a similar investment structure and cost structure, but had a different tax regime that could have influenced the returns shown. 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 196.45 M 2020-05-31
Share class size
EUR 1.89 M 2020-05-31
Number of shares
55,094 2020-05-31
Net Asset Value i
EUR 34.85 2020-07-01
Turnover rate
55.71 %
Morningstar rating â„¢

Fund characteristics per 2020-05-31

Slide to see more
  Fund Benchmark
Number of holdings 42 960
Dividend yield i 2.83 % 2.96 %
Weighted average market capitalization i EUR 2,591 M EUR 2,940 M
P/E ratio i 19.07 18.25
Active share i 93.00 %
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.

Market developments per 2020-05-31

In May the Fund (I-class) increased by 5.2% (net of fees), which is in line with the MSCI Europe Small-cap which also increased by 5.2% (for the performance of the other shareclasses please check the performance tab on the website https://www.kempen.com/en/asset-management).

While the economic impact from COVID-19 is far from over, European countries are planning and implementing relaxations of their national lockdown measures as new COVID-19 cases are declining in almost all countries. The fear of a second virus wave engulfing the globe remains top of mind but equity markets reacted positively to European stimulus measures, declining COVID-19 cases and relaxations of measures. Several companies used investors’ appetite for equities by announcing new share issuances in order to strengthen their balance sheets. Companies reported relatively normal earnings for the first quarter of the year with a sharp deterioration since mid-march which lasted throughout April and May. Results for Q2 will be severely impacted and it remains unclear what the earnings recovery path will look like while in many cases share prices have recovered materially. Currently, portfolio companies with global activities report of a normalization of business activity in Asia which might gradually move from east to west globally, just as the virus has done.

During the month we completely sold one name because of a rich valuation and no new names were added to the portfolio. It remains difficult to predict the future development of the COVID-19 virus, its economic consequences and the green shoots of normalization. We remain in close contact with the management teams of the companies we invest in. Depending on the individual circumstances, companies are working through the slowdown in economic activity, the relaxation of lockdown measures and are preparing for the new normal. We believe that equity markets increasingly price in a fairly quick normalization scenario. We still see strong long-term potential for our portfolio holdings but remain focused on near-term earnings risks and their balance sheet strength. As flagged earlier we continue to focus on the margin of safety in our valuations and remain cautious in estimating a recovery scenario in our models.

Portfolio developments per 2020-05-31

The best performing stocks in the portfolio in May were Dialog Semiconductor, Bakkafrost and SBanken. Dialog Semiconductor shares rebounded another 24% in May as the company reported better than expected Q1 results combined with a Q2 guide materially ahead of consensus. To us the main news did not relate to H1 2020 expectations, but was more medium to longer-term in nature. Dialog announced a new market opportunity in next generation battery management systems in consumer IoT and mobile. We believe that the potential of this announcement could still be underestimated by the market. We have a lot of trust in Dialog's management team and the stock remains attractively valued , while the strong balance sheet provides downside protection in an uncertain environment. Shares of salmon farmer Bakkafrost (+23.7%) performed strongly in line with a broad recovery of the sector following earlier weakness on the back of lockdown measures that have impacted out-of-home consumption of salmon. Salmon prices have remained firm over recent weeks, supported by weak supply growth, which is likely to persist for the foreseeable future. In its Q1 results report, Bakkafrost reiterated its growth ambitions for its Faroe operations as well as for newly acquired SSC. SBanken (+22.3%) the Norwegian online bank, reported good Q1 results with 6% lending growth YoY. Costs were also well under control, and the cost income ratio came in at 38.8% including one-off severance costs. Unlike many other banks we see SBanken as a safe play in the current difficult economic environment as the loan book of SBanken consists for 94% out of home loans with a low loan-to-value of 53%.

The worst performing stocks in the portfolio in May were Vesuvius, Hibernia and Safestore. Vesuvius (-11.3%) updated the market on Q1 developments but also on April sales developments in the light of COVID-19. While Vesuvius is imposing adequate counter measures to mitigate the impact from lower demand, through a combination of controlling costs and capital investments, the company remains cautious on the recovery of underlying markets. Taking a longer-term view, we remain attracted to Vesuvius’ leading market positions, the healthy balance sheet and appealing valuation. Hibernia (-7.8%) reported a solid set of results over the year ended March 2020, where the portfolio value increased with 2% and rental income almost 10%. More important in the current market, Hibernia has a low loan-to-value of 16.5%. This couldn’t protect Hibernia from the negative view of investors on the office market in general, especially as there is still growth in office space in Dublin. There was no meaningful news on Safestore (-10.6%) in May.

ESG commentary
In May we move the focus of our ongoing engagement with Befesa to governance related topics. The company IPO’ed in late 2017. While Befesa already has an incentive plan in place, the company is currently in the process of further developing and detailing the remuneration policy and report. Our recommendation to Befesa is to increase disclosure around remuneration policy and payments. As the company proposes to add a variable components to the incentives of non-executive directors, we explained that we see potential conflicts of interest for directors whose role should be to supervise. We will evaluate further company disclosure throughout the year. Befesa provides solutions for industrial waste management, helping recycle hazardous residues from the steel and aluminum industries.
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 2020-05-31 (rebased)

No chart data available

Performance per 2020-05-31

Slide to see more
  Fund Benchmark
1 month 5.1 % 5.2 %
3 months -7.3 % -7.8 %
This year -17.7 % -16.7 %
2017 11.2 % 19.1 %
2018 -19.0 % -15.9 %
2019 27.9 % 31.4 %
1 year (on annual basis) -8.1 % -2.6 %
3 years (on annual basis) i -5.4 % -1.1 %
5 years (on annual basis) i -1.0 % 2.6 %
Since inception (on annual basis) i 9.3 % 9.0 %
On 23 October 2013 Kempen SeNSe Fund (KSF) was merged with Kempen (Lux) Sustainable European Small-cap Fund (the Fund). The results shown of the period before 23 October 2013 are those of KSF. KSF had a similar investment structure and cost structure, but had a different tax regime that could have influenced the returns shown. Until 28 February 2017 the benchmark of the Fund was the MSCI Europe Small Cap Total Return Index, of which the constituents are adjusted by reducing the UK component by 50%. Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The value of your investments may fluctuate. Past performance provides no guarantee for the future.

Dividends

Slide to see more
Distributing
Yes
Last dividend
EUR 0.50
Ex-date last dividend
2020-01-16
Number of distributions per year
2
Dividend calendar

Risk analysis (ex post) per 2020-05-31

Slide to see more
  3 years Since inception
Maximum drawdown i -30.49 % -62.09 %
Tracking error i 5.41 % 5.19 %
Information ratio i -0.80 0.05
Beta i 1.03 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 (2020-05-31)

Slide to see more
  Contribution i Performance i
Dialog Semiconductor 0.74 % 23.47 %
Bakkafrost 0.65 % 23.69 %
Sbanken 0.65 % 22.29 %
AddTech 0.61 % 32.47 %
Bravida 0.46 % 16.40 %
Percentages shown for contributions and performances are based on Euros.

Bottom 5 contribution (2020-05-31)

Slide to see more
  Contribution i Performance i
Vesuvius -0.28 % -11.31 %
Hibernia Reit -0.25 % -7.93 %
Safestore -0.24 % -10.60 %
Tate & Lyle -0.21 % -9.29 %
Industria Macchine Automatiche -0.20 % -13.14 %
Percentages shown for contributions and performances are based on Euros.

Geographic allocation (2020-05-31)

34.4 %
United Kingdom
13.1 %
Netherlands
9.5 %
Sweden
8.0 %
Germany
4.9 %
Norway
4.3 %
Luxembourg
3.2 %
Finland
3.1 %
Spain
2.9 %
Ireland
2.8 %
Austria
2.6 %
France
2.4 %
Belgium
1.8 %
Denmark
3.1 %
Other
3.8 %
Cash
Total
100 %

Top 10 holdings (2020-05-31)

3.5 %
Dialog Semiconductor
3.2 %
Arcadis
3.2 %
Huhtamaki
3.2 %
Coats
3.2 %
Sbanken
3.2 %
ASR Nederland
3.1 %
Bakkafrost
3.1 %
Bravida
3.0 %
Bunzl
2.9 %
Hibernia REIT
Total
31.8 %

Sector allocation (2020-05-31)

25.2 %
Industrial Goods & Services
11.8 %
Technology
10.6 %
Food & Beverage
6.3 %
Construction & Materials
6.0 %
Health Care
6.0 %
Banks
5.6 %
Insurance
4.8 %
England
3.7 %
Retail
3.3 %
Oil & Gas
2.9 %
Ireland
2.6 %
Sweden
3.8 %
Other
7.2 %
Overig
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
B i
Investor type
Private
Distributing
Yes
Benchmark i
MSCI Europe Small Cap Total Return Index
Investment category
Small-caps
Universum
Sustainable European Small- & Mid-caps
Inception date
2013-10-23
Domicile
Luxembourg
May be offered to all investors in
Belgium, Germany, 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
LU0636593559
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.

Â

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

We strive to invest in a portfolio of companies that has a carbon intensity well below the benchmark. Furthermore, we engage with the most carbon intense companies in our portfolio in order to improve disclosure and policies that should contribute to a reduction in carbon intensity.

Â

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

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

EXCLUSION CRITERIA KEMPEN (LUX) SUSTAINABLE EUROPEAN SMALL-CAP FUND

Â

KEMPEN CRITERIA

ADDITIONAL SUSTAINABILITY CRITERIA

Â

Business Conduct

Â

Â

Â

x    Human Rights

V

Â

Â

x    Labour

V

Â

Â

x    Environment

V

Â

Â

x    Anti-corruption

V

Â

Â

Product Involvement

Â

Â

Â

x    Controversial Weapons

V

Â

Â

x    Tobacco

V

Â

Â

x    Adult Entertainment

Â

V

Â

x    Alcohol

Â

V

Â

x    Animal Welfare & GMO

Â

V

Â

x    Gambling

Â

V

Â

x    Power Generation Nuclear

Â

V

Â

x    Power Generation Carbon Intensive

Â

V

Â

x    Thermal Coal

Â

V

Â

x    (Un)conventional Oil & Gas Extraction

Â

V

Â

x    Weaponry

Â

V

Â

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.