Kempen Orange Fund NV

Profile

Kempen Orange Fund N.V. invests in smaller and medium-sized Dutch companies that are included in the GPR Dutch Small Cap Index. The fund can also invest in Dutch and Belgian companies which are not included in the Index, provided that their market capitalisation is less than € 5 billion at the time of purchase. Investments in Belgian companies may not exceed 20% of the fund’s portfolio. The environmental, social and governance (ESG) criteria are incorporated in the investment process.

The fund positions itself as an engaged shareholder.

Kempen Orange Fund N.V. has the objective to earn a structurally higher return (capital gain and dividends) than its benchmark: GPR Dutch Small Cap Index.

Management team

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

Performance per 2020-08-31 (rebased)

No chart data available

Performance per 2020-08-31

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  Fund Benchmark
1 month 6.7 % 9.5 %
3 months 14.9 % 16.7 %
This year -0.7 % -4.3 %
2017 28.7 % 28.7 %
2018 -20.0 % -17.8 %
2019 34.7 % 37.8 %
1 year (on annual basis) 11.8 % 7.5 %
3 years (on annual basis) i 5.0 % 6.1 %
5 years (on annual basis) i 9.3 % 9.8 %
Since inception (on annual basis) i 10.9 % 9.0 %
Untill 1 januari 2004 was de benchmark de CBS Small Cap Index. 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 127.68 M 2020-08-31
Share class size
EUR 127.68 M 2020-08-31
Number of shares
1,353,462 2020-08-31
Net Asset Value i
EUR 93.96 2020-10-01
Transaction price i
EUR 93.77 2020-10-01
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Fund characteristics per 2020-08-31

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  Fund Benchmark
Number of holdings 24 58
Dividend yield i 4.53 % 3.53 %
Weighted average market capitalization i EUR 2,335 M EUR 2,257 M
P/E ratio i 14.78
Active share i 37.67 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen Orange Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Developments per 2020-08-31

At a return of 6.7% in August the KOF underperformed versus the GPR Dutch Small Cap Index, which rose by 9.5%. In the first eight months of this year, the KOF’s Net Asset Value (NAV) declined by 0.7% versus a drop of 4.3% for the benchmark. Across the month, several equities in the benchmark that already enjoyed high valuations underwent further substantial price increases. As the KOF either holds an underweight or does not hold positions (any longer) in these specific names, this resulted in an underperformance over the month.

Positive macro-economic figures and better-than-expected corporate results overall generated a further strong upturn on the global equity markets in August. The better-than-expected company results can partly be explained by the government support and a number of businesses profiting from fairly full order portfolios during the second quarter. By maintaining a strong focus on reducing working capital and investments, management teams have mostly been quick to act during the COVID-19 outbreak and the balance sheets of many companies are robust enough to bridge a longer period of uncertainty. Negative COVID-19 trends in parts of France and Spain are causing negative travel advice to be issued for some regions, but national lockdowns are not being imposed and this will likely only have a minor economic impact. With violence flaring in the US and presidential elections just around the corner, President Trump is mainly focusing on local issues. The US dollar continued to weaken versus the euro across the month, resulting in a negative impact on earnings forecasts for Dutch exporters.

The largest increases to positions in the portfolio in August were to Sligro, TKH Group and Ordina. The biggest sales were Euronext, IMCD and Arcadis. Other positions were adjusted based on changes to the model portfolio driven by valuations and upward potential.

As a supplier to (the automotive) industry, it’s no surprise that Kendrion noted significantly lower revenue during the first half of the year. Its management kept the company’s cash position more or less stable via a combination of cost savings, government subsidies, a larger share of higher margin products, strict working capital management and a minimum level of investment. It pro-actively agreed more accommodating conditions with the banks and this has given the company greater flexibility. Our enthusiasm for Kendrion is driven by its tight operations and well-filled innovation pipeline combined with a low equity valuation. In China sales of new cars have already reverted to pre-COVID-19 levels and this creates the prospect of a relatively rapid recovery in the rest of the world.

ASR reported better-than-expected results over the first half of the year. The company’s highly diversified portfolio meant that it was able to prove its added value even during the COVID-19 pandemic, given that it estimates the negative impact of COVID-19 to be just a couple of million Euros. On the one hand the profitability of its disability insurance business came under pressure, while on the other non-life insurance policies were paying out much less due to the much lower number of traffic accidents and break-ins. Moreover, ASR is achieving substantial organic growth (both in terms of prices and new policies), which we believe can be explained by the more rational Dutch market following the acquisition of Delta Lloyd by NN and of Vivat by Athora. The better-than-expected results prompted ASR’s management to adjust the forecasts for 2020 slightly. The company’s solid capital generation, a large portion of which is paid out, results in an attractive dividend yield of over 6%.

As the organic growth in revenue at Corbion in the first quarter was driven by consumers around the world stocking up on long-life foods, it was no surprise that Corbion was unable to sustain the strong growth in the second quarter. The company in fact announced better-than-expected operating profits in the second quarter. The new CEO’s hand was clearly visible in the (structurally) loss-making innovation division. The combination of a broader product and geographical focus as well as an adjustment to the scale of operations should reduce future losses further. In addition, the PLA joint venture with Total contributed more than expected given that scarcity has an upward impact on sales prices. The new restricted capacity over the coming two to three years means that this positive situation may well persist for the time being.

Kempen Capital Management N.V. (KCM) is the management company of Kempen Orange Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Performance per 2020-08-31 (rebased)

No chart data available

Performance per 2020-08-31

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  Fund Benchmark
1 month 6.7 % 9.5 %
3 months 14.9 % 16.7 %
This year -0.7 % -4.3 %
2017 28.7 % 28.7 %
2018 -20.0 % -17.8 %
2019 34.7 % 37.8 %
1 year (on annual basis) 11.8 % 7.5 %
3 years (on annual basis) i 5.0 % 6.1 %
5 years (on annual basis) i 9.3 % 9.8 %
Since inception (on annual basis) i 10.9 % 9.0 %
Untill 1 januari 2004 was de benchmark de CBS Small Cap Index. 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 2.50
Ex-date last dividend
2020-06-05
Number of distributions per year
1
Dividend calendar

Risk analysis (ex post) per 2020-08-31

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  3 years Since inception
Maximum drawdown i -25.65 % -59.19 %
Tracking error i 4.67 % 5.77 %
Information ratio i -0.24 0.34
Beta i 0.88 0.88
Kempen Capital Management N.V. (KCM) is the management company of Kempen Orange Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Top 5 contribution (2020-08-31)

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  Contribution i Performance i
SBM Offshore 0.93 % 10.28 %
Arcadis 0.80 % 10.95 %
Corbion 0.74 % 19.02 %
Flow Traders 0.60 % 19.48 %
Signify 0.59 % 10.41 %

Bottom 5 contribution (2020-08-31)

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  Contribution i Performance i
Intertrust -0.15 % -4.08 %
ASM International -0.05 % -1.41 %
TKH Group -0.05 % -1.01 %
Forfarmers -0.01 % -0.73 %
Fagron 0.00 % 0.24 %

Geographic allocation (2020-08-31)

95.0 %
Netherlands
2.0 %
Belgium
3.0 %
Cash
Total
100 %

Top 10 holdings (2020-08-31)

9.3 %
SBM Offshore
8.6 %
BE Semiconductor Industries
7.5 %
Arcadis
7.0 %
IMCD
6.0 %
Signify
5.1 %
TKH Group
4.5 %
Corbion
4.3 %
Amsterdam Commodities
4.3 %
ASR Nederland
3.8 %
ASM International
Total
60.5 %

Sector allocation (2020-08-31)

19.8 %
Technology
13.0 %
Personal & Household Goods
11.8 %
Financial Services
11.7 %
Construction & Materials
10.8 %
Food & Beverage
9.3 %
Oil & Gas
9.3 %
Industrial Goods & Services
4.3 %
Insurance
3.0 %
Retail
2.0 %
Health Care
1.9 %
Travel & Leisure
3.0 %
Other
Total
100 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen Orange Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

 

SWING FACTORS

An overview of the current swing factors are available here.

Ongoing charges

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Management fee i
0.75 %
Service fee i
0.25 %
Expected ongoing charges i
1.00 %
Ongoing charges last financial year i
1.00 %
The Ongoing Charges Figure of the last financial year relates to 2019.

The service fee is determined annually on basis of the net asset value as of the last day of the previous financial year:
< or equal to EUR 200 million: 0.25%
>EUR 200 million: 0.20%
Kempen Capital Management N.V. (KCM) is the management company of Kempen Orange Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Share class details

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Investor type
Institutional & Private
Distributing
Yes
Benchmark i
GPR Dutch Small Cap Index (dividends reinvested)
Investment category
Small-caps
Universum
Dutch and Belgian Small- and Mid-caps
Inception date
1990-09-07
Domicile
The Netherlands
May be offered to all investors in
The Netherlands
UCITS status i
No
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Management company
Kempen Capital Management N.V.
Depositary and custodian
BNP Paribas Securities Services S.C.A.
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Tradability

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Listed
yes, listed on the NAV Trading Facility of Euronext
Subscription/Redemption Frequency
daily
ISIN i
NL0000289627
Kempen Capital Management N.V. (KCM) is the management company of Kempen Orange Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.
Kempen Capital Management N.V. (KCM) is the management company of Kempen Orange Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

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.

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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.

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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.

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Our full voting records are available here.

Our fund approach to responsible investment

Kempen’s ESG policy is fully implemented in our fund’s investment process across the three relevant pillars of: Exclusion, ESG integration and Active ownership

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The Kempen Orange Fund (KOF) N.V. invests in smaller and medium-sized Dutch companies that are included in the GPR Dutch Small Cap Index. The fund can also invest in Dutch and Belgian companies which are not included in the Index, provided that their market capitalisation is less than €5 billion at the time of purchase. KOF positions itself as a long-term engaged shareholder. We engage with our investee companies on a regular basis. These engagements include, but are certainly not limited to, our voting instructions at the company’s AGM. We always vote the shares of investee companies and if necessary attend annual meetings to stress our discussion points to management, potentially in collaboration with other stakeholders.

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The figure 'ESG integration in the investment process' is a step-by-step illustration of how Kempen’s ESG policy is integrated in the fund’s investment process.

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1. Exclusion

The fund excludes investment in entities involved in the production tobacco and of controversial weapons, such as cluster munitions, anti-personnel mines, nuclear warheads, chemical and biological weapons.

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2. ESG integration

In the fundamental analysis phase, we dive deeper into the ESG characteristics of a company. During the process we focus on each company on a case by case basis looking at the material risks in that specific industry and the firm’s exposure, practices and disclosure. In this phase we use various data sources, including MSCI ESG Research and Sustainalytics. If our opinion deviates from the external ESG research providers we explain why. Furthermore we look into the company’s exposure to controversies and opportunities which could reduce or increase our ESG score. Based on the above analysis we form an opinion on the quality of a company’s ESG profile and give each company a score (1-5). A lower score would require a higher upside potential to be included in the portfolio.

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3. Active ownership

As active long-term investors we perform comprehensive engagements with our portfolio companies. We strongly believe that our level of engagement with our portfolio companies is much deeper compared to our competitors. We frequently speak with the management teams of our portfolio companies. Each controversial item, as well as every individual engagement, is well-documented. We monitor the progress the company is making and continue to use our influence to create positive change.

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Exercising our voting rights is also an essential part of our responsible investment philosophy. We are actively engaging with our portfolio companies and make remarks on the agenda of annual and extraordinary meetings. We often attend annual meetings in person to stress our discussion points towards management, sometimes in collaboration with other stakeholders.

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Kempen’s ESG Team also performs a quarterly screen on our portfolio and may propose engagement with low ESG performers. The results of this screening are discussed in a separate meeting and an action list is created based on the outcomes of this meeting.

Risks

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

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*

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
Screening MSCI ESG research
Screening MSCI ESG research
UN global impact
Carbon intensity
ESG integration in the investement process
ESG integration in the investement process
Bron EN
Source
disclaimer
Kempen Capital Management N.V. (KCM) is the management company of Kempen Orange Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch and English) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.