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 2020-05-31 (rebased)

No chart data available

Performance per 2020-05-31

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  Fund Benchmark
1 month 2.9 % 2.6 %
3 months -8.6 % -11.4 %
This year -13.6 % -18.0 %
2017 28.7 % 28.7 %
2018 -20.0 % -17.8 %
2019 34.7 % 37.8 %
1 year (on annual basis) -0.0 % -4.4 %
3 years (on annual basis) i 0.1 % 0.2 %
5 years (on annual basis) i 5.3 % 5.2 %
Since inception (on annual basis) i 10.5 % 8.5 %
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 117.04 M 2020-05-31
Share class size
EUR 117.04 M 2020-05-31
Number of shares
1,386,254 2020-05-31
Net Asset Value i
EUR 88.86 2020-07-06
Transaction price i
EUR 89.04 2020-07-06
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Fund characteristics per 2020-05-31

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  Fund Benchmark
Number of holdings 25 58
Dividend yield i 4.33 % 3.74 %
Weighted average market capitalization i EUR 2,117 M EUR 1,957 M
P/E ratio i 14.08 16.06
Active share i 36.27 %
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.

Market developments per 2020-05-31

At a return of 2.9% in May, the KOF outperformed the GPR Dutch Small Cap Index, which was up by 2.6%. In the first five months of this year, the KOF’s Net Asset Value (NAV) declined by 13.6% versus a drop of 18.0% for the benchmark. The fund has realised an average annual return of 0.1% over the past three years.

For investors, there were two sides to the month of May. Halfway through the month, the benchmark had fallen by nearly 6% due to fears that the trade war would flare up again. However, confirmation from central banks that they would continue stimuli and the further easing of COVID-19 measures by many European countries are offering financial markets the prospect of an economic recovery and prompted a strong upturn in the second half of the month. Other indicators are also pointing to the financial markets gradually normalising: across the month the (Brent) oil price increased sharply from USD25 per barrel at the start of the month to USD38, while volatility (VIX) fell from 34 to 28, far below the level of 80 that was reached in the second half of March.

Portfolio developments per 2020-05-31

The largest increases to positions in the KOF portfolio in April were to Kendrion, ASR and TKH Group. Having bought our initial small position in Basic-Fit in April, we expanded it in May. The biggest sales were Fugro, ForFarmers and Euronext. Other positions were adjusted based on changes to the model portfolio driven by valuations and upward potential.

After the price of Basic-Fit fell nearly 70% in the second half of March, we accrued a position in this company in April and May. Although a temporary relaxation of arrangements with the banks looks to be necessary, in our view the company possesses sufficient liquidity to bridge the period in which its fitness clubs remain closed. There are of course still a number of uncertainties surrounding Basic-Fit and consumer behaviour in a COVID-19-dominated society in which social distancing of 1.5m is the norm. Basic-Fit is about to start the process of reopening its clubs. In the Netherlands this is due to happen on 1 July. It’s our belief that the low equity price implies the financial markets are pricing in excessively negative scenarios in the medium term.

NIBC’s promise to pay the (previously postponed) dividend means that the first hurdle in its acquisition by Blackstone has been overcome. The offering memorandum was lodged with the supervisory authorities on time and it is now up to the authorities to decide whether the acquisition will indeed go ahead. Several news services, such as Bloomberg, are reporting that the buyer is seeking ways of lowering its initial offer. With NIBC shares trading at a discount of about 27% on the official bid price of €9.85, the financial markets are already anticipating this and this risk already appears to have been priced in. If Blackstone cannot find a way to renegotiate the acquisition price, there is the prospect of an attractive acquisition premium, as long as DNB approves the transaction.

In May, Euronext reported better-than-expected results over the first quarter. The published earnings, which were about 6% higher than anticipated, were generated by a bigger increase than expected in revenue and tight cost control. Euronext’s market share for equities remains strong, as do its profits per transaction. Although trading volumes are likely to normalise in the coming period, the stock exchange operator will profit from the recent spate of share issues and flotations (such as JDE). The relatively defensive Euronext translates relatively low revenue growth of 2-3% into earnings growth of in excess of 5% thanks to the scalability of its platforms. Attractively-priced acquisitions funded entirely with debt lift this to high single-digit earnings growth.
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 2020-05-31 (rebased)

No chart data available

Performance per 2020-05-31

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  Fund Benchmark
1 month 2.9 % 2.6 %
3 months -8.6 % -11.4 %
This year -13.6 % -18.0 %
2017 28.7 % 28.7 %
2018 -20.0 % -17.8 %
2019 34.7 % 37.8 %
1 year (on annual basis) -0.0 % -4.4 %
3 years (on annual basis) i 0.1 % 0.2 %
5 years (on annual basis) i 5.3 % 5.2 %
Since inception (on annual basis) i 10.5 % 8.5 %
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 3.80
Ex-date last dividend
2019-05-20
Number of distributions per year
1
Dividend calendar

Risk analysis (ex post) per 2020-05-31

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  3 years Since inception
Maximum drawdown i -25.65 % -59.19 %
Tracking error i 4.41 % 5.76 %
Information ratio i -0.02 0.35
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 (2020-05-31)

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  Contribution i Performance i
SBM Offshore 0.62 % 6.33 %
Arcadis 0.62 % 8.56 %
Basic-Fit 0.49 % 24.48 %
IMCD 0.40 % 5.09 %
ASM International 0.31 % 6.07 %

Bottom 5 contribution (2020-05-31)

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  Contribution i Performance i
BE Semiconductor Industries -0.56 % -5.94 %
Forfarmers -0.20 % -5.89 %
Kendrion -0.12 % -6.21 %
Aalberts -0.07 % -4.10 %
Intertrust -0.05 % -1.12 %

Geographic allocation (2020-05-31)

94.8 %
Netherlands
2.2 %
Belgium
3.0 %
Cash
Total
100 %

Top 10 holdings (2020-05-31)

9.0 %
SBM Offshore
8.1 %
BE Semiconductor Industries
7.8 %
IMCD
7.3 %
Arcadis
5.5 %
Signify
4.8 %
ASM International
4.6 %
TKH Group
4.5 %
Amsterdam Commodities
4.0 %
ASR Nederland
4.0 %
NIBC
Total
59.7 %

Sector allocation (2020-05-31)

19.1 %
Technology
13.6 %
Financial Services
13.3 %
Personal & Household Goods
11.7 %
Construction & Materials
11.1 %
Food & Beverage
9.6 %
Oil & Gas
8.2 %
Industrial Goods & Services
4.0 %
Insurance
2.2 %
Health Care
2.1 %
Retail
2.1 %
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 itselfas 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.