Kempen Lux Sustainable European Small-Cap Fund - Class B

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 2017-11-30 (rebased)

No chart data available

Performance per 2017-11-30

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  Fund Benchmark
1 month -3.4 % -1.8 %
3 months 3.6 % 4.7 %
This year 9.6 % 16.3 %
2014 3.9 % 6.3 %
2015 23.2 % 24.3 %
2016 -1.5 % 3.2 %
3 years (on annual basis) i 11.5 % 14.7 %
5 years (on annual basis) i 12.8 % 17.0 %
Since inception (on annual basis) i 12.0 % 11.0 %
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

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Total fund size
EUR 235.62 M 2017-11-30
Number of shares
61,812 2017-11-30
Net Asset Value i
EUR 42.49 2017-12-15
Morningstar rating â„¢
Morningstar Analyst rating
Neutral

Fund characteristics per 2017-11-30

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  Fund Benchmark
Number of holdings 32 980
Dividend yield i 2.38 % 2.34 %
Weighted average market capitalization i EUR 2,331 M EUR 3,058 M
P/E ratio i 19.96 13.90
Active share i 96.84 %
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 management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no.166063.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Market developments per 2017-11-30

The portfolio underperformed the benchmark in November. The best performing companies were Straumann, Aurelius and Basware. Dignity, Duerr and IMA were the worst performers. Dignity’s earnings release highlighted higher competition within the UK funerals market. Their unique position of competitive strength in funerals and cremations presents tremendous long-term growth potential, so we added materially to our investment on weakness.

The European small-cap index decreased modestly by 1.8% in November. Europe saw a continued rise in Consumer Confidence, with levels approaching the all-time high, while businesses appeared to reflect this sentiment as Business Confidence and PMIs also reported strong readings. Political tremors across the Mainland, most recently in Germany and Spain, appear to be having little economic impact as yet. The same cannot be said for the UK, which is proving less optimistic. Tumultuous Brexit negotiations and the related uncertainty saw Consumer Confidence slide to the lowest level since 2013, while the OBR revealed sharply lower GDP growth expectations for this year and next. Investment opportunities persist across the continent despite this dichotomy of economic fortunes.

Germany, Switzerland and Ireland were the best performing countries while Norway, Denmark and Sweden were the weakest. Utilities, telecoms and real estate were the strongest outperforming sectors with health care, energy and industrials lagging.

Portfolio developments per 2017-11-30

We completed buying a new position in the UK meat packing company Hilton Food Group. Hilton process and package meat for market leading supermarket partners, primarily in Europe. One of the most material ESG risks that the business faces is Food Safety and Health & Safety more generally. We visited a Hilton facility earlier in the year, during which the best-in-class operating standards Hilton have developed through their partnership with Tesco became abundantly clear. We are very excited by the long-term growth opportunities for Hilton in new markets, specifically in Australia, New Zealand and Portugal where they are actively expanding. Replicating their high-returning business model (the company ranks top-decile in our universe on ROCE) in these markets will generate significant value for shareholders over time. The extent of this opportunity is not properly understood by the market or reflected in the current share price.

There were no complete sales during November.

A recent discussion topic in our company meetings has been the seventeen UN Sustainable Development Goals (SDGs). We have been encouraged by the awareness from the companies we have spoken to, with many having already taken action in aligning their activities with the SDGs. One example is Amer Sports, the Finnish sporting goods company, who have aligned with Goal 3: Good Health & Wellbeing, Goal 8: Decent Work & Economic Growth and Goal 13: Climate Action. We have welcomed the responsiveness to the Goals of Amer and other companies to date.

Looking forward, market focus will likely remain on politics – namely the continuing evolution of Brexit negotiations and the uncertain situation in Germany and Spain. 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 management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no.166063.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Performance per 2017-11-30 (rebased)

No chart data available

Performance per 2017-11-30

Slide to see more
  Fund Benchmark
1 month -3.4 % -1.8 %
3 months 3.6 % 4.7 %
This year 9.6 % 16.3 %
2014 3.9 % 6.3 %
2015 23.2 % 24.3 %
2016 -1.5 % 3.2 %
3 years (on annual basis) i 11.5 % 14.7 %
5 years (on annual basis) i 12.8 % 17.0 %
Since inception (on annual basis) i 12.0 % 11.0 %
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

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Distributing
Yes
Last dividend
EUR 0.50
Ex-date last dividend
2017-07-10
Number of distributions per year
2
Dividend calendar

Risk analysis (ex post) per 2017-11-30

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  3 years Since inception
Maximum drawdown i -10.02 % -62.09 %
Tracking error i 4.32 % 5.14 %
Information ratio i -0.76 0.23
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 management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no.166063.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Top 5 contribution (2017-11-30)

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  Contribution i Performance i
Aurelius 0.16 % 3.36 %
Basware 0.16 % 9.22 %
Greggs 0.15 % 3.77 %
Straumann Holding 0.12 % 4.25 %
Viscofan 0.10 % 3.57 %
Percentages shown for contributions and performances are based on Euros.

Bottom 5 contribution (2017-11-30)

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  Contribution i Performance i
Dignity -1.34 % -28.93 %
Duerr -0.50 % -10.64 %
Industria Maccine Automatiche -0.34 % -7.77 %
Brembo Spa -0.32 % -8.33 %
Sweco AB -0.23 % -6.53 %
Percentages shown for contributions and performances are based on Euros.

Geographic allocation (2017-11-30)

25.1 %
United Kingdom
13.4 %
Switzerland
10.9 %
Germany
9.5 %
Spain
8.4 %
Finland
7.9 %
Italy
7.8 %
Sweden
5.0 %
Ireland
3.2 %
Denmark
3.0 %
Belgium
2.4 %
The Netherlands
3.3 %
Cash
Totaal
100 %

Top 10 holdings (2017-11-30)

5.0 %
Kingspan Group
4.7 %
Aurelius
4.4 %
Duerr
4.3 %
Greggs
4.3 %
Cie Automotive
4.2 %
Industria Maccine Automatiche
3.8 %
Dignity
3.7 %
Brembo Spa
3.5 %
Belimo
3.3 %
Sweco
Totaal
41.3 %

Sector allocation (2017-11-30)

29.6 %
Industrial Goods & Services
15.5 %
Retail
9.7 %
Automobiles & Parts
9.6 %
Technology
8.0 %
Personal & Household Goods
7.4 %
Health Care
5.5 %
Construction & Materials
4.7 %
Financial Services
4.4 %
Food & Beverage
2.4 %
Other
3.3 %
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 management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no.166063.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Ongoing charges

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Management fee i
1.50 %
Service fee i
0.20 %
Taxe d'abonnement i
0.05 %
Expected ongoing charges i
1.75 %

Other costs

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Upward swing factor i
0.45 %
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 management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no.166063.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Share class details

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Share class
B i
Investor type
Private
Distributing
Yes
Benchmark i
MSCI Europe Small Cap Total Return Index
Investment category
Small-caps
Universum
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.
Custodian
J.P. Morgan Bank Luxembourg S.A.
Morningstar rating â„¢
Morningstar Analyst rating
Neutral

Tradability

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Minimum subscription
Initial subscription €1,000
Listed
no
Pricing 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 Netherlands Authority for the Financial Markets. The management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no.166063.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Kempen (Lux) 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 management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no.166063.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

KCM Vision

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

Our KCM wide approach to responsible investment

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

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 management company has entrusted, under its control and responsibility, Kempen Capital Management (UK) Ltd. with the execution of the investment policy of the Subfund. This investment firm is subject to regulation of the Financial Conduct Authority and registered under no.166063.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.