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 2021-06-30 (rebased)

No chart data available

Performance per 2021-06-30

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  Fund Benchmark
1 month -0.5 % -0.5 %
3 months 4.5 % 6.0 %
This year 23.3 % 25.2 %
2018 -20.0 % -17.8 %
2019 34.7 % 37.8 %
2020 15.2 % 14.6 %
1 year (on annual basis) 53.9 % 66.2 %
3 years (on annual basis) i 16.9 % 17.9 %
5 years (on annual basis) i 17.6 % 19.8 %
Since inception (on annual basis) i 11.9 % 10.2 %
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 180.51 M 2021-06-30
Share class size
EUR 180.51 M 2021-06-30
Number of shares
1,363,211 2021-06-30
Net Asset Value i
EUR 132.55 2021-07-26
Transaction price i
EUR 132.82 2021-07-26
Morningstar rating â„¢
Morningstar Analyst rating
Gold

Fund characteristics per 2021-06-30

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  Fund Benchmark
Number of holdings 25 59
Dividend yield i 3.84 % 2.38 %
Weighted average market capitalization i EUR 3,015 M EUR 3,259 M
P/E ratio i 15.62
Active share i 40.02 %
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 2021-06-30

KOF declined by 0.5% in June and in doing so performed in line with the GPR Dutch Small Cap Index. In the first six months of this year, KOF’s Net Asset Value (NAV) climbed by +23.3% versus +25.2% for the benchmark.

After five consecutive months of positive momentum, the equity market marked time in June. On the one hand, in the run-up to publication of interim results there was relatively little company-specific news to trigger a response from financial markets. On the other hand, the strong upsurge in the Delta variant of the COVID virus created fresh uncertainty about the economic recovery scenario. Finally, the news from the Fed, the US central bank, that it would raise interest rates a year earlier than expected is negative for the equity market. The cautious sentiment was also visible in the fact that following a wave of market flotations earlier this year, a number of planned new stock market listings have been withdrawn. The first companies will publish their interim reports in mid-July. Positive macro-economic data in the first half of 2021 and well-filled order books give businesses a solid basis for growth. The real test is whether companies can pass on cost-push inflation and in doing so safeguard their profit margins. In terms of corporate results, we expect a negative impact on operating cashflows from the repayment of COVID-related support, the payment of deferred taxes/VAT obligations and the normalisation of working capital. Shortages will result in sharp increases to the presented order books in order to safeguard future deliveries. However, the predictive nature of an order book reduces in this respect as its length then increases.

The largest increases to positions in the KOF portfolio in June were to ASR, Corbion and Aalberts. The biggest sales were of ForFarmers, ASM International and Amsterdam Commodities. Across the month a new position was accrued in NX Filtration and no positions were sold in their entirety. Other positions were adjusted based on changes to the model portfolio driven by valuations and upward price potential.

KOF participated in the share issue held by NX Filtration. The company sells water purification systems based on membrane technology for purifying both industrial waste water and drinking water. Its business model is founded on expanding the number of installations that in turn periodically require new membranes. The predictability of the business is therefore relatively high. Market growth is being driven by ever-stricter laws and legislation and the fact that existing purification methods are increasingly ill-equipped to remove new impurities from the water. Our central scenario, in which we assume multi-year double-digit revenue growth and a market share for NX Filtration of under 5% in ten years’ time, points to the stock being undervalued. As the company has ambitions to achieve a higher market share, we believe the risk/return profile to be attractive.

The 2022-2026 goals that Ordina presented at its capital markets day confirm that the company will note an acceleration in sales growth in the new strategic period following a period (2018-2022) of partly internal focus on improving margins. The operational leverage from the expected 5-8% revenue growth, combined with the fact that the portion of revenue derived from business propositions with above-average margins will increase (40% of the revenue in 2020 to 66% in 2022 and 75% in 2026), will contribute to a further improvement in the EBITDA margin to 12-14% (10-12% for 2018-2022). While the company has displayed solid revenue growth in Belgium (1/3 of its revenue) over the past few years, following the rationalisation in the Netherlands (2/3 of its revenue) the way is now clear for an acceleration in growth there too. The company’s debt-free balance sheet, sound revenue growth, the prospect of improved margins and its niche positioning demonstrate that there is scope for a further revaluation of the stock.

We talked to the CEO and CFO of Accell shortly after the announcement of CSCO (Chief Supply Chain Officer) Jeroen Both’s unexpected departure. The news surprised us in view of the perfect storm the global bicycle industry currently finds itself in (persisting strong demand driven by COVID combined with a shortage of components). A good interim solution means that the company’s focus on the supply chain will remain as high as ever. At the same time, there is a sound basis on which Both’s successor can (rapidly) build further. Examples include the insourcing of frame production, further standardisation towards platforms (similar to those in the automotive industry) and rationalisation of the number of suppliers. In the meantime market conditions seem largely unchanged, with persisting strong demand, an ongoing shortage of components and sharply higher logistics costs. Fresh local outbreaks of COVID in Chinese/Taiwanese ports and suppliers that are only marginally expanding capacity will result in this tense situation continuing in the medium term. One positive aspect is that the shortages allow manufacturers to pass price increases on relatively easily, making it unlikely that margins will be squeezed.

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 2021-06-30 (rebased)

No chart data available

Performance per 2021-06-30

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  Fund Benchmark
1 month -0.5 % -0.5 %
3 months 4.5 % 6.0 %
This year 23.3 % 25.2 %
2018 -20.0 % -17.8 %
2019 34.7 % 37.8 %
2020 15.2 % 14.6 %
1 year (on annual basis) 53.9 % 66.2 %
3 years (on annual basis) i 16.9 % 17.9 %
5 years (on annual basis) i 17.6 % 19.8 %
Since inception (on annual basis) i 11.9 % 10.2 %
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
2021-05-27
Number of distributions per year
1
Dividend calendar

Risk analysis (ex post) per 2021-06-30

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  3 years Since inception
Maximum drawdown i -25.65 % -59.19 %
Tracking error i 4.78 % 5.72 %
Information ratio i -0.21 0.31
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 (2021-06-30)

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  Contribution i Performance i
BE Semiconductor Industries 0.48 % 7.15 %
Signify 0.45 % 5.08 %
Amsterdam Commodities 0.26 % 6.26 %
ASM International 0.18 % 7.67 %
Nedap 0.08 % 2.11 %

Bottom 5 contribution (2021-06-30)

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  Contribution i Performance i
SBM Offshore -0.69 % -9.34 %
ASR Nederland -0.37 % -7.41 %
Sligro Food Group -0.25 % -5.71 %
Arcadis -0.21 % -3.31 %
PostNL -0.17 % -4.95 %

Geographic allocation (2021-06-30)

93.2 %
Netherlands
4.9 %
Belgium
2.0 %
Cash
Total
100 %

Top 10 holdings (2021-06-30)

9.2 %
Signify
7.2 %
BE Semiconductor Industries
6.8 %
SBM Offshore
6.3 %
Arcadis
5.5 %
Aalberts
5.5 %
Intertrust
5.1 %
TKH Group
4.7 %
ASR Nederland
4.7 %
Corbion
4.6 %
Kendrion
Total
59.6 %

Sector allocation (2021-06-30)

39.4 %
Industrials
17.9 %
Technology
7.8 %
Financials
6.8 %
Energy
4.7 %
Basic Materials
3.4 %
Telecommunications
2.0 %
Other
1.5 %
Health Care
Total
83 %
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
0.750 %
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 2020.

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
Gold

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
ESG integration in the investement process
ESG integration in the investement process
Bron en
disclaimer en
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.