- Kempen
- Kempen Orange Fund NV
Kempen Orange Fund NV
Profile
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
Performance per 2020-12-31 (rebased)
Performance per 2020-12-31
Fund | Benchmark | |
---|---|---|
1 month | 2.6 % | 3.3 % |
3 months | 16.4 % | 20.1 % |
This year | 15.2 % | 14.6 % |
2017 | 28.7 % | 28.7 % |
2018 | -20.0 % | -17.8 % |
2019 | 34.7 % | 37.8 % |
1 year (on annual basis) | 15.2 % | 14.6 % |
3 years (on annual basis) i | 7.4 % | 9.1 % |
5 years (on annual basis) i | 11.6 % | 12.4 % |
Since inception (on annual basis) i | 11.3 % | 9.5 % |
Key figures
Total fund size | EUR 140.96 M 2020-12-31 |
Share class size | EUR 140.96 M 2020-12-31 |
Number of shares | 1,288,368 2020-12-31 |
Net Asset Value i | EUR 116.27 2021-01-21 |
Transaction price i | EUR 116.04 2021-01-21 |
Morningstar rating â„¢ | |
Morningstar Analyst rating | Silver |
Fund characteristics per 2020-12-31
Fund | Benchmark | |
---|---|---|
Number of holdings | 24 | 57 |
Dividend yield i | 3.08 % | 2.01 % |
Weighted average market capitalization i | EUR 2,730 M | EUR 2,719 M |
P/E ratio i | 15.94 | |
Active share i | 41.07 % |
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 2020-12-31
Although a traditionally quiet period for corporate news, tensions were high in macro-economic and political terms. With a large number of issues still to be resolved, it was unclear until the very last moment whether a Brexit deal was going to be struck. In the US, President Trump caused a huge amount of uncertainty as to whether the US COVID-19 aid package would be approved. In both cases agreement was ultimately reached, allowing the calm on the financial markets to be preserved. There were also reassuring words from the Fed, which announced it was to adjust its growth forecasts for 2020 and the coming years upwards due to the better-than-expected economic data. Moreover, the Fed promised to continue the current pace of buying up USD120 billion in bonds each month for some time. In the wake of the vaccine euphoria of the previous month, the statistics on both new COVID-19 cases and hospital admissions for December show that the path to normalisation will not be a straight one.
The largest increases to positions in the KOF portfolio in December were to Accell, Fugro and Aalberts. The biggest sales were of BESI, ASMI and Basic-Fit. In addition, KOF tendered its remaining NIBC shares in December. Other positions were adjusted based on changes to the model portfolio driven by valuations and upward share price potential.
Following the sharp share price rally in the run-up to Signify’s Capital Markets Day, financial markets were fairly unimpressed by the announced new targets for the medium term. On the one hand, the organic revenue growth target of 0-5% is reassuring, given the company has only reported positive organic revenue growth in a single year since 2014 (2017: +0.5%). On the other, the positive impact of the easy comparison basis for 2021 looks to be relatively limited. The targets for margins (11-13%) and free cashflow (> 8% of revenue) are in line with expectations. Its ever-smaller share of the shrinking traditional light bulb business will have a positive impact on Signify’s growth profile in the long term and offers scope for a further revaluation.
In December, Boskalis announced a four-year dredging contract worth EUR1.5 billion for the development of a new airport in Manila (Philippines). This makes it the largest order in Boskalis’s history. The lack of large-scale orders had caused the utilisation rate of Boskalis’s fleet to fall over the past few years. Given the scale of the project, the company will be able to use large dredgers and this will positively affect the utilisation rate over the coming years. Despite the current overcapacity in the dredging sector the company anticipates normal profitability of 8-10%, which we view as positive.
They may have been few in number but that didn’t diminish the price impact of some of the press releases in December (e.g. Boskalis +16.5%; Hunter Douglas +18%, Altice Europe +20.6%, Orange Belgium +34.9%). What stands out in that list of names is that the last three relate to acquisition bids by a major shareholder. Moreover, the list contains two players from the telecom sector. Even though the buyers have not stated the underlying reason for their bids, several insiders obviously believe the valuations to be structurally too low. In light of our recently accrued position in Telenet (58% of which is owned by major shareholder Liberty Global), we endorse this opinion.
There was significant corporate news on Acomo as it announced the acquisition of Tradin, an international merchant of organic ingredients (including dried products, fruit, cocoa, oils, coffee and high-end juices). Tradin’s global network and focus on fast-growing organic products will serve to boost the scale, diversification and growth potential of Acomo. The acquisition will increase the size of Acomo by about one third. We believe that this step will improve both the growth profile of the company and share liquidity and could ultimately lead to a higher market valuation.
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 2020-12-31 (rebased)
Performance per 2020-12-31
Fund | Benchmark | |
---|---|---|
1 month | 2.6 % | 3.3 % |
3 months | 16.4 % | 20.1 % |
This year | 15.2 % | 14.6 % |
2017 | 28.7 % | 28.7 % |
2018 | -20.0 % | -17.8 % |
2019 | 34.7 % | 37.8 % |
1 year (on annual basis) | 15.2 % | 14.6 % |
3 years (on annual basis) i | 7.4 % | 9.1 % |
5 years (on annual basis) i | 11.6 % | 12.4 % |
Since inception (on annual basis) i | 11.3 % | 9.5 % |
Dividends
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 2020-12-31
3 years | Since inception | |
---|---|---|
Maximum drawdown i | -25.65 % | -59.19 % |
Tracking error i | 4.76 % | 5.75 % |
Information ratio i | -0.34 | 0.32 |
Beta i | 0.88 | 0.88 |
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 (2020-12-31)
Contribution i | Performance i | |
---|---|---|
BE Semiconductor Industries | 1.08 % | 13.15 % |
ASM International | 0.73 % | 21.49 % |
Arcadis | 0.38 % | 5.38 % |
Nedap | 0.33 % | 8.97 % |
Boskalis Westminster | 0.32 % | 16.50 % |
Bottom 5 contribution (2020-12-31)
Contribution i | Performance i | |
---|---|---|
Sligro Food Group | -0.20 % | -6.40 % |
Signify | -0.17 % | -2.77 % |
SBM Offshore | -0.15 % | -1.64 % |
Intertrust | -0.13 % | -4.09 % |
Fugro | -0.07 % | -3.33 % |
Geographic allocation (2020-12-31)
Top 10 holdings (2020-12-31)
Sector allocation (2020-12-31)
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.
Ongoing charges
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 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%
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
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
Listed | yes, listed on the NAV Trading Facility of Euronext |
Subscription/Redemption Frequency | daily |
ISIN i | NL0000289627 |
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.
Read more information about Kempen Capital Management NV on this site and find also more information on BNP Paribas Securities Services S.C.A.
Factsheets
Prospectus
Key Investor Information
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:
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ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.
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Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.
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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
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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 Partiesâ€), 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







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.