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 2022-05-31 (rebased)

No chart data available

Performance per 2022-05-31

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  Fund Benchmark
1 month -0.9 % 0.1 %
3 months -1.5 % 0.8 %
This year -3.6 % -1.8 %
2019 34.7 % 37.8 %
2020 15.2 % 14.6 %
2021 29.2 % 29.4 %
1 year (on annual basis) 0.5 % 1.0 %
3 years (on annual basis) i 18.4 % 19.3 %
5 years (on annual basis) i 10.7 % 12.3 %
Since inception (on annual basis) i 11.6 % 9.9 %
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 170.29 M 2022-05-31
Share class size
EUR 170.29 M 2022-05-31
Number of shares
1,302,724 2022-05-31
Net Asset Value i
EUR 111.86 2022-07-06
Transaction price i
EUR 111.58 2022-07-06
Morningstar rating â„¢
Morningstar Analyst rating
Gold

Fund characteristics per 2022-05-31

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  Fund Benchmark
Number of holdings 24 58
Dividend yield i 3.48 % 2.73 %
Weighted average market capitalization i EUR 2,775 M EUR 3,275 M
P/E ratio i 13.18
Active share i 37.81 %
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 2022-05-31

KOF earned a negative return of 0.9% in May, while the GPR Dutch Small Cap index was up by 0.1%. In the first five months of this year, KOF’s Net Asset Value (NAV) decreased by 3.6% versus a downturn of 1.8% for the benchmark.

Although the benchmark was more or less flat across the month as a whole, May was a month of high volatility. After six trading days the GPR index had dropped by as much as 7.4%, only to rally strongly in the second half of the month. A number of (US) companies, primarily in the tech and consumer sectors, adjusted their forecasts for 2022 downwards and in a few cases sent shockwaves through the global financial markets. Furthermore, it is becoming increasingly apparent that inflation will remain high for longer than previously thought. A fresh round of European Union sanctions against Russia may exert further upward pressure on energy prices. In addition, historically-low unemployment rates in a large number of (European) countries are pushing up wages. The much longer-than-expected COVID-19 lockdown in Shanghai is also causing the shortage of components to persist for longer than anticipated, prolonging the imbalance between supply and demand. It therefore comes as no surprise that rumblings about the ECB (first) raising interest rates in July in an attempt to curb inflation grew ever louder over the course of the month. Our focus on businesses that occupy a robust position in the value chain remains unchanged.

The largest increases to positions in the KOF portfolio in May were to BESI, Signify and ASR. The biggest sales were of Ordina, PostNL and Heijmans. No new positions were accrued and no positions sold in their entirety during the month. Other positions were adjusted based on changes to the model portfolio driven by valuations and upward price potential.

PostNL was forced to adjust its forecasts for 2022 downwards after noting relatively poor results over the first quarter, in which incidentally the structurally shrinking Mail division caused a positive surprise, while the (growing) Parcels division in fact performed worse than had been expected. In underlying terms, we are seeing not just the expected shift from online to offline shopping in the wake of all the COVID-19-related lockdown restrictions being lifted, but also caution among consumers in light of the geopolitical trends (the war in Ukraine, rampant inflation). Moreover, PostNL is experiencing a headwind from cost-push inflation (wages and fuel). Despite the disappointing results, there is also a positive impact for shareholders as the company was able to buy more shares under the share buyback programme that was already underway. Even if you take into account that the positive contribution from COVID-19-related parcel volumes was in retrospect underestimated by management and that the company’s visibility is lower than previously supposed, the valuation of this company continues to be low.

Alfen, which among other things manufactures distribution sub-stations for the Dutch power grid and charging stations for electric vehicles, reported extremely robust results over the first quarter. Despite the ongoing challenges relating to the availability of components, the company recorded revenue growth of no less than 77%, with revenue from charging stations rocketing by an impressive 185%. The strong start to the year and the continuing positive (medium-term) outlook for the individual sub-markets led the company to raise its target revenue for 2022, whereby it now assumes revenue growth of 54%, in the middle of the bandwidth, compared to its previous forecast of 40%. Alfen will play a key role in increasing the capacity of the Dutch power grid and in the expected sharp growth in electric vehicles in the Netherlands and abroad. The positive medium-term trends in the individual markets offer the prospect of persistently robust revenue and earnings growth and in doing so justify the equity’s current valuation.

At more than 5% organic revenue growth and an operational margin in excess of 9%, the results reported by Arcadis over the first quarter lived up to the financial markets’ expectations. Given that Arcadis specialises in themes that will become ever more relevant over the next few years, such as urbanisation, climate change and water management, the outlook for this company’s growth is particularly positive. This is underlined by the fact that its order book has grown further. Not that long ago the company was plagued by a problematic Brazilian business unit and the large amount of working capital required for its operations in the Middle East and elsewhere, resulting in a high level of debt. Nowadays, however, it possesses a solid balance sheet and the question is how the company will spend the surplus financial resources in the future. In our opinion, a (further) improvement in employee productivity and greater insight into capital allocation will be important factors in reducing the equity’s current discount versus its competitors.

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 2022-05-31 (rebased)

No chart data available

Performance per 2022-05-31

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  Fund Benchmark
1 month -0.9 % 0.1 %
3 months -1.5 % 0.8 %
This year -3.6 % -1.8 %
2019 34.7 % 37.8 %
2020 15.2 % 14.6 %
2021 29.2 % 29.4 %
1 year (on annual basis) 0.5 % 1.0 %
3 years (on annual basis) i 18.4 % 19.3 %
5 years (on annual basis) i 10.7 % 12.3 %
Since inception (on annual basis) i 11.6 % 9.9 %
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 3.00
Ex-date last dividend
2022-05-27
Number of distributions per year
1
Dividend calendar

Risk analysis (ex post) per 2022-05-31

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  3 years Since inception
Maximum drawdown i -25.65 % -36.47 %
Tracking error i 5.05 % 5.67 %
Information ratio i -0.18 0.30
Beta i 0.86 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 (2022-05-31)

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  Contribution i Performance i
SBM Offshore 0.71 % 9.64 %
Ordina 0.45 % 8.57 %
Aalberts 0.23 % 2.91 %
Alfen Beheer 0.22 % 16.56 %
BE Semiconductor Industries 0.21 % 2.80 %

Bottom 5 contribution (2022-05-31)

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  Contribution i Performance i
Sligro Food Group -0.55 % -11.06 %
Signify -0.41 % -4.62 %
Accell -0.35 % -9.81 %
Arcadis -0.24 % -4.26 %
Nedap -0.23 % -5.06 %

Geographic allocation (2022-05-31)

90.9 %
Netherlands
4.7 %
Cash
4.4 %
Belgium
Total
100 %

Top 10 holdings (2022-05-31)

8.7 %
Signify
7.8 %
SBM Offshore
7.3 %
Aalberts
7.2 %
ASR Nederland
5.4 %
BE Semiconductor Industries
5.3 %
Arcadis
5.2 %
Ordina
4.7 %
TKH Group
4.7 %
Corbion
4.6 %
Sligro Food Group
Total
60.9 %

Sector allocation (2022-05-31)

33.8 %
Industrials
16.2 %
Technology
13.4 %
Consumer Discretionary
10.5 %
Financials
7.8 %
Energy
4.7 %
Basic Materials
4.7 %
Other
4.5 %
Consumer Staples
2.8 %
Telecommunications
1.6 %
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.

Environmental and/or social characteristics promoted

The Kempen Orange Fund (the “Fund”) falls under the scope of article 8 of the SFDR which means that the fund promotes environmental and/or social characteristics. This fund will invest in a broad range of companies, of which some will have sustainability objectives.

We commit to the goals of the Paris Agreement. This encompasses short-term objectives (2025), a mid-term ambition (2030) and a long-term commitment to be a net zero investor by 2050. By 2025, we aim to be aligned with a path to achieving the Paris Agreement and Dutch Klimaatakkoord. We follow the market reduction, which assumes a pathway in line with the EU Benchmarks.

Fund carbon emission targets

Morningstar sustainability rating

ESG Investment process

The promotion of environmental and/or social characteristics is achieved through the consistent implementation of the funds ESG policy. The ESG policy is fully implemented in our strategy’s investment process across the three relevant pillars of: Exclusion, ESG integration and Active ownership.

In the investment process we assess the ESG profile of a company. We look at each company on a case-by-case basis, taking into account material risks in a given industry in combination with the company’s respective risk exposure, practices and disclosure. This includes an assessment of good governance practices. The investee companies are rated for governance aspects using external research as well as making internal assessments. Furthermore, we look into the company’s exposure to past controversies and future ESG opportunities. Based on the fundamental ESG analysis we form an opinion on the quality of a company’s ESG profile.

Exclusion

The Fund excludes companies through the application of strict exclusion criteria. These take into account international standards, such as UN Global Compact Framework, the OECD Guidelines for Multinational Enterprises, UN Guiding Principles for Business and Human Rights, and our Principles for Responsible Investment commitments. We have summarized how we integrated the principle adverse indicators in our ESG policy and process in the ESG Policy & Process document that can be found on our website.

Key figures

  Kempen criteria Additional criteria
Business conduct
Human Rights
Labour
Environment
Anti Corruption
Product involvement
Controversial Weapons
Tobacco
Thermal Coal
Tar Sands
Adult Entertainment
Alcohol
Animal Welfare & GMO
Gambling
Power Generation Nuclear
Power Generation Carbon Intensive
(Un)conventional Oil & Gas Extraction
Weaponry
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 2021.

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
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.