Kempen European Property Fund NV

Profile

Kempen European Property Fund N.V. (KEPF) has the objective to achieve strong relative investment results by investing in a portfolio of listed European property companies. KEPF is managed on the basis of a bottom-up stock picking approach.

KEPF's strategy is to exploit mispricing between the valuation of property companies in relation to the quality of their real estate portfolios, balance sheets, corporate governance and management capability to add value to the property portfolio. The environmental, social and governance (ESG) criteria are incorporated in the investment process.

 

Kempen Capital Management N.V. will merge this fund with the equivalent Luxembourg fund on 16 December 2022.

Click here for more information.

Management team

Jorrit Arissen, Egbert Nijmeijer, Lucas Vuurmans, Robert Stenger, Mihail Tonchev, Andreas Welter, Alex Williamson

Performance per 2022-10-31 (rebased)

No chart data available

Performance per 2022-10-31

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  Fund Benchmark
1 month 6.1 % 3.7 %
3 months -22.6 % -22.7 %
This year -34.2 % -36.9 %
2019 32.8 % 28.5 %
2020 -8.0 % -10.7 %
2021 22.9 % 17.9 %
1 year (on annual basis) -32.3 % -35.5 %
3 years (on annual basis) i -7.2 % -11.2 %
5 years (on annual basis) i -0.8 % -3.9 %
Since inception (on annual basis) i 4.3 % 5.4 %
Until 2014 the benchmark was the GPR 250 Europe Index, in which the UK component was reduced to 20%. From 2014 to September 30 2021, the benchmark was the FTSE EPRA Nareit Developed Europe 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 92.97 M 2022-10-31
Share class size
EUR 92.97 M 2022-10-31
Number of shares
7,029,237 2022-10-31
Net Asset Value i
EUR 13.18 2022-12-05
Transaction price i
EUR 13.23 2022-12-05
Morningstar rating â„¢

Fund characteristics per 2022-10-31

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  Fund Benchmark
Number of holdings 29 110
Dividend yield i 4.35 % 4.88 %
Weighted average market capitalization i EUR 4,858 M EUR 5,096 M
P/E ratio i 15.23
Active share i 54.71 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen European Property 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 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 2022-10-31

KEPF posted a positive absolute performance, and a strongly positive relative return in October. Cluster performance showed the UK (+6%) with the best absolute performance followed by the Nordics (+5%) and Euro Diversified cluster (+4%). The Euro Residential cluster (+0%) showed the lowest return in Europe, followed by Switzerland (+2%). Most positive cluster in terms of relative performance was the UK, however every cluster added to performance with KEPF having no detractor.

The month of October saw European listed real estate with an almost 4% total return, recovering some of the negative absolute performance seen in recent months. European government yields stabilized and did not continue their upward trend during the month, which was one element of relief. There was also limited (or surprising) news flow from central banks.

Equity markets in general recovered as well with the STOXX 600 returning >6%. YTD the listed real estate universe is underperforming the broader equity markets being down c33% compared to the STOXX 600 down c16%.

The Kempen real estate investment strategy strikes the balance between qualitative and quantitative analysis. Through application of data-analysis technology our Real Estate Team collects over 20 million relevant data points for >200,000 real estate buildings around the globe, processing this quantitative data in our data infrastructure and turning it into valuable fundamental investment information. The continuous increase in available data helps us make better assessments of the quality, value and risk of each real estate investment. This leads to better investment decisions and results in higher investment returns at lower risk for our clients.

Next to the quantitative approach the investment strategy contains three key qualitative parameters that determine the warranted valuation: management added value, balance sheet strength and ESG. The portfolio managers score each company covered on these three parameters. Companies that excel in ESG for example will be assigned a higher score and hence the warranted valuation for an investment increases.

Portfolio construction of the Strategy is based on cluster neutrality. The European portfolio has 5 clusters defined as homogeneous groups of real estate companies with similar underlying currency exposure. Examples are United Kingdom, European Residential and Switzerland. The portfolio weight of each cluster is approximately equal to the cluster’s benchmark weight. This ensures a diversified portfolio and neutralizes currency and macro-economic exposure versus the benchmark. KEPF assigns its risk budget on the real estate portfolio level only.

During the month we only made incremental changes to our existing holdings based on relative expected returns.

Kempen Capital Management N.V. (KCM) is the management company of Kempen European Property 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 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 2022-10-31 (rebased)

No chart data available

Performance per 2022-10-31

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  Fund Benchmark
1 month 6.1 % 3.7 %
3 months -22.6 % -22.7 %
This year -34.2 % -36.9 %
2019 32.8 % 28.5 %
2020 -8.0 % -10.7 %
2021 22.9 % 17.9 %
1 year (on annual basis) -32.3 % -35.5 %
3 years (on annual basis) i -7.2 % -11.2 %
5 years (on annual basis) i -0.8 % -3.9 %
Since inception (on annual basis) i 4.3 % 5.4 %
Until 2014 the benchmark was the GPR 250 Europe Index, in which the UK component was reduced to 20%. From 2014 to September 30 2021, the benchmark was the FTSE EPRA Nareit Developed Europe 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 0.75
Ex-date last dividend
2022-02-28
Number of distributions per year
1
Dividend calendar

Risk analysis (ex post) per 2022-10-31

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  3 years Since inception
Maximum drawdown i -27.05 % -52.03 %
Tracking error i 3.51 % 4.44 %
Information ratio i 1.13 -0.25
Beta i 0.98 1.02
Kempen Capital Management N.V. (KCM) is the management company of Kempen European Property 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 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.

Maturity profile (2022-10-31)

0.5 %
Cash
99.5 %
Other
Total
100 %

Geographic allocation (2022-10-31)

34.1 %
United Kingdom
16.0 %
Germany
12.9 %
Nordics
11.3 %
Belgium
11.1 %
Spain
9.1 %
Switzerland
3.7 %
France
1.5 %
The Netherlands
1.4 %
The Netherlands
0.5 %
Other
Total
102 %
On basis of country of exchange of the investments. The cash position is included in ‘Other’.

Top 10 holdings (2022-10-31)

9.1 %
Segro
7.8 %
LEG Immobilien
6.9 %
Merlin Properties Socimi
6.8 %
Vonovia SE
5.9 %
Fabege
4.7 %
Great Portland Estates
4.6 %
Derwent London
4.4 %
Warehouses De Pauw
4.3 %
Mobimo
4.3 %
PSP Swiss Property
Total
58.9 %

Rating allocation (2022-10-31)

99.5 %
Not Rated
0.5 %
Cash
Total
100 %

Sector allocation (2022-10-31)

31.6 %
Industrials
30.2 %
Offices
25.1 %
Residential
7.4 %
Retail
5.7 %
Other
Total
100 %
On basis of 'look through' data. The cash position is not included.
Kempen Capital Management N.V. (KCM) is the management company of Kempen European Property 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 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 Global Property Fund, the Kempen (Lux) Global Property Fund and the Kempen European Property Fund (the “Funds”) fall under the scope of article 8 of the SFDR which means that the Funds promote environmental and/or social characteristics. This Sub-Fund will invest in a broad range of companies, of which some will have sustainability objectives.

The Fund commits to the climate goals of the Paris Agreement, thereby contributing to the Sustainable Development Goals Affordable and Clean Energy (SDG 7) and Sustainable Cities and Communities (SDG 11). The climate goals commitment encompasses short-term (2025) objectives, a mid-term (2030) ambition and a long-term commitment to be net zero by 2050.

Fund carbon emission targets

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 and award a score (1-5). We apply adequate due diligence measures when selecting the assets and such due diligence measures take into account sustainability risk and ESG related risks as it could help to enhance long-term risk adjusted returns for investors, in accordance with the investment objectives of the Fund.

Exclusion

In line with the general Kempen policy, the Global Property Fund and the European Property Fund excludes all companies on the KCM Exclusion- and Avoidance list. Companies that ‘Fail’ or are on ‘Watchlist’ marked against the criteria of the United Nations Global Compact are excluded.

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 European Property 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 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
0.630 %
Service fee i
0.25 %
Expected ongoing charges i
0.88 %
Ongoing charges last financial year i
0.88 %
The ongoing charges figure of the last financial year relates to 2020/2021.

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 European Property 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 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
FTSE EPRA Nareit Developed Europe UCITS Daily Capped Index in euro (dividends reinvested)
Investment category
Real Estate
Universe
European real estate equities
Inception date
2000-10-26
Domicile
The Netherlands
May be offered to all investors in
The Netherlands
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Administrator
BNP Paribas S.A., Netherlands Branch
Management company
Kempen Capital Management N.V.
Depositary and custodian
BNP Paribas S.A., Netherlands Branch
Morningstar rating â„¢

Tradability

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Listed
yes, listed on the NAV Trading Facility of Euronext
Subscription/Redemption Frequency
Daily
ISIN i
NL0009296649
Kempen Capital Management N.V. (KCM) is the management company of Kempen European Property 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 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 European Property 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 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.