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 2021-09-30 (rebased)

No chart data available

Performance per 2021-09-30

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  Fund Benchmark
1 month -4.1 % -3.5 %
3 months -0.0 % 0.9 %
This year 23.2 % 26.3 %
2018 -20.0 % -17.8 %
2019 34.7 % 37.8 %
2020 15.2 % 14.6 %
1 year (on annual basis) 43.5 % 51.7 %
3 years (on annual basis) i 17.7 % 19.6 %
5 years (on annual basis) i 15.7 % 17.5 %
Since inception (on annual basis) i 11.8 % 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 180.58 M 2021-09-30
Share class size
EUR 180.58 M 2021-09-30
Number of shares
1,364,423 2021-09-30
Net Asset Value i
EUR 131.70 2021-10-15
Transaction price i
EUR 131.43 2021-10-15
Morningstar rating â„¢
Morningstar Analyst rating
Gold

Fund characteristics per 2021-09-30

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  Fund Benchmark
Number of holdings 24 57
Dividend yield i 3.36 % 2.21 %
Weighted average market capitalization i EUR 3,075 M EUR 3,261 M
P/E ratio i 14.89
Active share i 40.78 %
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 2021-09-30

KOF earned a negative return of 4.1% in September, while the GPR Dutch Small Cap index dropped by 3.8%. In the first nine months of this year, KOF’s Net Asset Value (NAV) increased by 23.2% versus +26.3% for the benchmark.

Up to the end of August equity markets were climbing the wall of worries, with rising inflation, higher bond yields and high earnings forecasts not yet causing any major difficulties. In September, however, fresh uncertainties caused equity markets to take a step back. On the one hand, the financially precarious position of Chinese property conglomerate Evergrande sent a shockwave through the financial markets, although there so far seems to be little risk of contagion. On the other, an imbalance on the energy markets pushed (gas) prices up sharply and unstable energy supplies in China created further uncertainties. The message from central banks remains largely unchanged, with interest rate increases in the long term and the tapering of quantitative easing in the offing, which in fact serves to calm the financial markets.

The largest increases to positions in the KOF portfolio in September were to Fagron, Signify and Corbion. The biggest sales were of Arcadis, BESI 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.

Intertrust stocks came under the spotlight in the second half of the month. Not only did the company unexpectedly announce a sizeable share buyback programme amounting to 9% of its market value, two shareholders (Harbor Capital, Lucerne Capital) also gave a reasoned response to this decision. The conclusion reached by all parties is unanimous: Intertrust equities are severely undervalued and its decision to buy back shares was received positively. We have also written about this in recent monthly reports and view this publicity as further confirmation of our view. More still needs to be done, however. We expect the company to announce more measures at its capital markets day on 23 November in a bid to convince the financial markets of its structural long-term growth potential, future margin recovery and the attractive cashflow-generating nature of its business model. We see restoring its track record as the most important factor in reversing the current undervaluation. Furthermore, Intertrust could sell its private wealth activities, which would benefit its growth profile and the risk perception of the company.

Sligro is a company that seldom steps into the spotlight, although it has made significant internal and external progress over the last few quarters and will profit from the ongoing normalisation of the economy. Even though company canteens, festivals and restaurants are not yet back at pre-COVID-19 occupancy levels, this is already the case for Sligro’s revenue. This can primarily be explained by its substantial market share gains. With the normalisation of the economy following the recent lifting of a variety of COVID-19 measures, there is the prospect of a further upturn in Sligro’s revenue, while cost levels will remain more or less the same, especially given that the average revenue per order will increase. Furthermore, profitability has clearly improved in Belgium and the physical and online integration of the partnership signed with Heineken three years ago has now been completed, as a result of which cost benefits can now be realised (expansion of the client base and addition of Sligro’s product range for Heineken’s customers).

In November and December, three companies in the KOF portfolio will hold capital markets days at which they will present their new mid-term plans and objectives: ASR, TKH and Intertrust. While corporate results are often little more than a snapshot, a plan with a 3-5 year horizon provides much greater insight into the strategic shape of the company and the financial outlook. The sessions also give us a good idea of the quality of the management layer below that of the CEO/CFO and in doing so are an important indication of the company’s future success. For TKH, the main priorities are simplifying its reporting structure and a continued focus on the company’s portfolio of activities, which will translate into higher growth and margins for the core activities. At ASR, the focus is on the use of its highly robust capital position and the extent to which the recent higher-than-expected premium growth is sustainable. At Intertrust, it will be crucial to receive confirmation that extraordinary costs (integration, compliance, ICT) will be a thing of the past from 2023 and that the recent acceleration in revenue growth is structural in nature.

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 2021-09-30 (rebased)

No chart data available

Performance per 2021-09-30

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  Fund Benchmark
1 month -4.1 % -3.5 %
3 months -0.0 % 0.9 %
This year 23.2 % 26.3 %
2018 -20.0 % -17.8 %
2019 34.7 % 37.8 %
2020 15.2 % 14.6 %
1 year (on annual basis) 43.5 % 51.7 %
3 years (on annual basis) i 17.7 % 19.6 %
5 years (on annual basis) i 15.7 % 17.5 %
Since inception (on annual basis) i 11.8 % 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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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 2021-09-30

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  3 years Since inception
Maximum drawdown i -25.65 % -59.19 %
Tracking error i 4.70 % 5.70 %
Information ratio i -0.40 0.30
Beta i 0.89 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 (2021-09-30)

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  Contribution i Performance i
Arcadis 0.21 % 2.90 %
ASR Nederland 0.11 % 2.07 %
Telenet Group 0.09 % 2.29 %
ASM International 0.07 % 2.98 %
SBM Offshore -0.01 % -0.19 %

Bottom 5 contribution (2021-09-30)

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  Contribution i Performance i
BE Semiconductor Industries -0.77 % -10.90 %
Signify -0.76 % -8.98 %
Kendrion -0.51 % -10.58 %
TKH Group -0.38 % -6.83 %
Corbion -0.37 % -8.25 %

Geographic allocation (2021-09-30)

91.5 %
Netherlands
5.5 %
Belgium
3.0 %
Cash
Total
100 %

Top 10 holdings (2021-09-30)

8.1 %
Signify
7.6 %
SBM Offshore
6.7 %
Arcadis
6.4 %
BE Semiconductor Industries
6.1 %
Aalberts
5.4 %
TKH Group
5.2 %
ASR Nederland
4.8 %
Intertrust
4.5 %
Amsterdam Commodities
4.5 %
Kendrion
Total
59.4 %

Sector allocation (2021-09-30)

38.6 %
Industrials
16.9 %
Technology
11.6 %
Consumer Discretionary
8.0 %
Financials
7.6 %
Energy
4.5 %
Consumer Staples
4.3 %
Basic Materials
3.7 %
Telecommunications
3.0 %
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
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.