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 2021-12-31 (rebased)

No chart data available

Performance per 2021-12-31

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  Fund Benchmark
1 month 5.0 % 3.6 %
3 months 4.8 % 2.4 %
This year 29.2 % 29.4 %
2018 -20.0 % -17.8 %
2019 34.7 % 37.8 %
2020 15.2 % 14.6 %
1 year (on annual basis) 29.2 % 29.4 %
3 years (on annual basis) i 26.1 % 26.9 %
5 years (on annual basis) i 15.6 % 16.7 %
Since inception (on annual basis) i 11.9 % 10.1 %
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 186.16 M 2021-12-31
Share class size
EUR 186.16 M 2021-12-31
Number of shares
1,342,191 2021-12-31
Net Asset Value i
EUR 140.78 2022-01-20
Transaction price i
EUR 140.50 2022-01-20
Morningstar rating â„¢
Morningstar Analyst rating
Gold

Fund characteristics per 2021-12-31

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  Fund Benchmark
Number of holdings 24 56
Dividend yield i 3.36 % 2.34 %
Weighted average market capitalization i EUR 3,202 M EUR 3,388 M
P/E ratio i 15.88
Active share i 39.43 %
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 2021-12-31

KOF earned a positive return of 5.0% in December, while the GPR Dutch Small Cap index was up by 3.6%. In 2021, KOF’s Net Asset Value (NAV) increased by 29.2% versus 29.4% for the benchmark.

Although there are still many unknowns about the Omicron variant, initial reports are cautiously positive, with a higher infectivity rate but at the same time less severe symptoms. This reassuring news caused equity markets to resume their upward trend in December. Growing tensions on the (European) energy market pushed gas prices sharply higher, further fanning what is already historically high inflation. Whereas central banks had so far insisted the rising inflation was transitory, in December the US Fed announced it would accelerate tapering of its stimulus programme and later raise interest rates. In contrast, the ECB is adhering to its original view that inflation will weaken without the need for policy interventions, although it has started to scale back its purchases under the Pandemic Emergency Purchase Programme, which is due to end in March. The difference in monetary policy is positive for the US dollar. The Netherlands’ unexpected (second) lockdown is having a mixed impact on the KOF portfolio; we expect ASR, PostNL and Ordina to profit but Sligro, Fagron and BeterBed to be temporarily affected.

The largest increases to positions in the KOF portfolio in December were to BeterBed, Accell and Aalberts. The biggest sales were of Intertrust and TKH Group. No new positions were accrued during the month. Other positions were adjusted based on changes to the model portfolio driven by valuations and upward price potential.

At Aalberts’ planned capital markets day it was mostly its 4-6% revenue growth target that stood out in a positive sense, as this translates into a significant acceleration versus the company’s historical average in which it grew in line with the economy. The main reasons for this are increased investment in innovation, the divestment of activities displaying sluggish growth and acquisition of activities in end markets that are growing at an above-average rate. When combined with additional cost-cutting measures this will further improve the company’s margins.

Persisting concerns about the (negative) impact of component shortages in the run-up to Signify’s fourth-quarter results had a downward effect on its share price. Our focus on the longer term has prompted us to take advantage of this price weakness and expand our position over the past few months. The acquisition of Fluence (active in the agricultural segment) announced in December will make a small contribution to profits and increase the company’s exposure to (sub-)segments with above-average growth potential (an average of 20% per year up to 2024). Signify is paying twice Fluence’s revenue in the deal, which is double the company’s own valuation. The acquisition certainly demonstrates the upward potential once Signify is in a position to structurally improve its growth profile.

Accell unexpectedly published an interim report showing that its revenue growth had been better than expected in the second half of the year, despite the ongoing difficulties surrounding the availability of components. Profitability has improved substantially thanks to a combination of relatively small (price) discounts to customers caused by the limited supply and a high proportion of fixed (production) costs. The better-than-expected second half of the year means that significant progress has been made on achieving the company’s financial targets for 2022. Partly because of the coronavirus, we anticipate structurally higher demand for bicycles (especially e-bikes) in the medium term. Together with the potential for further (internal) operational improvements within Accell, this paves the way for even higher operating margins in 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.

Performance per 2021-12-31 (rebased)

No chart data available

Performance per 2021-12-31

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  Fund Benchmark
1 month 5.0 % 3.6 %
3 months 4.8 % 2.4 %
This year 29.2 % 29.4 %
2018 -20.0 % -17.8 %
2019 34.7 % 37.8 %
2020 15.2 % 14.6 %
1 year (on annual basis) 29.2 % 29.4 %
3 years (on annual basis) i 26.1 % 26.9 %
5 years (on annual basis) i 15.6 % 16.7 %
Since inception (on annual basis) i 11.9 % 10.1 %
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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Risk analysis (ex post) per 2021-12-31

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  3 years Since inception
Maximum drawdown i -25.65 % -59.19 %
Tracking error i 4.81 % 5.68 %
Information ratio i -0.17 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 (2021-12-31)

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  Contribution i Performance i
Ordina 0.87 % 19.72 %
TKH Group 0.63 % 12.36 %
Accell 0.62 % 24.53 %
Aalberts 0.55 % 7.47 %
Arcadis 0.42 % 7.74 %

Bottom 5 contribution (2021-12-31)

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  Contribution i Performance i
BE Semiconductor Industries -0.80 % -10.41 %
Intertrust -0.22 % -3.85 %
ASM International -0.04 % -2.04 %
NX Filtration -0.02 % -1.99 %
Beter Bed 0.03 % 2.74 %

Geographic allocation (2021-12-31)

92.1 %
Netherlands
5.3 %
Belgium
2.6 %
Cash
Total
100 %

Top 10 holdings (2021-12-31)

8.2 %
Signify
7.5 %
Aalberts
6.6 %
BE Semiconductor Industries
6.5 %
SBM Offshore
5.6 %
ASR Nederland
5.5 %
Arcadis
5.4 %
TKH Group
5.1 %
Ordina
4.7 %
Amsterdam Commodities
4.6 %
Corbion
Total
59.6 %

Sector allocation (2021-12-31)

37.3 %
Industrials
17.9 %
Technology
12.4 %
Consumer Discretionary
8.6 %
Financials
6.5 %
Energy
4.7 %
Consumer Staples
4.6 %
Basic Materials
3.6 %
Telecommunications
2.6 %
Other
1.8 %
Health Care
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
0.750 %
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
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
Administrator
BNP Paribas Securities Services S.C.A., Amsterdam branch
Management company
Kempen Capital Management N.V.
Depositary and custodian
BNP Paribas Securities Services S.C.A., Amsterdam branch
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.