Kempen Lux Euro Credit Fund - Class BN

Profile

Kempen International Funds SICAV - Kempen (Lux) Euro Credit Fund (the Fund) invests primarily in credits that have an investment grade rating (of minimal BBB-) and are denominated in Euros. The Fund may invest a small part in credits that are not included in the benchmark. The benchmark, the Markit iBoxx Euro Corporates Index, only includes bonds with an investment grade rating.

The Fund aims to earn a higher total long term return than the benchmark by implementing an active investment policy. In order to achieve this, a diversified portfolio is constructed and investment risks are continuously monitored. Investments are selected on the basis of extensive analysis of the terms and conditions of the bond issues.

In the interest of the shareholders it has been decided to soft open the Fund as per 28 June 2018. As per June 2018 the Fund will continue to accept daily inflow below EUR 10 million from all investors. For investments greater than EUR 10 million please contact the Fund’s relationship manager. Redemptions will still be possible. More information about the soft open can be found in the Notice to shareholders in the tab Documents.

Management team

Alain van der Heijden, Rik den Hartog, Harold van Acht, Sipke Moes, Luuk Cummins, Pim van Mourik Broekman, Quirijn Landman, Marco Zanotto

Performance per 2019-03-31 (rebased)

No chart data available

Performance per 2019-03-31

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  Fund Benchmark
1 month 1.4 % 1.4 %
3 months 3.3 % 3.2 %
This year 3.3 % 3.2 %
2016 5.1 % 4.7 %
2017 2.4 % 2.4 %
2018 -0.8 % -1.3 %
1 year (on annual basis) 2.8 % 2.3 %
3 years (on annual basis) i 2.5 % 2.2 %
5 years (on annual basis) i 3.2 % 2.8 %
Since inception (on annual basis) i 5.5 % 4.5 %
On 8 October 2013, the rebate free class (BN) of Kempen (Lux) Euro Credit Fund was launched. The results shown of the period 20 June 2013 until 8 October 2013 are those of class A of the same fund. The higher management fee of Class A has had an impact on the performance quoted. On 20 June 2013, Kempen Euro Credit Fund (KECF) was merged with Kempen (Lux) Euro Credit Fund. Up to 30 January 2012 (start of the Fund’s A class) the performance graph and performance table show the performance of KECF, for the period January 2012 till June 2013 the results of class A of Kempen (Lux) Euro Credit Fund are shown. The average annual TER for the period of April 2008 till June 2013 is 0.91%. 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 1,782.51 M 2019-03-31
Share class size
EUR 522.13 M 2019-03-31
Number of shares
19,502,395 2019-03-31
Net Asset Value i
EUR 26.87 2019-04-24
Morningstar rating â„¢
Morningstar Analyst rating
Gold

Fund characteristics per 2019-03-31

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  Fund Benchmark
Number of holdings 274 2455
Duration i 5.1 5.0
Yield to maturity 1.0 % 1.1 %
Weighted rating BBB+ BBB+
Kempen (Lux) Euro Credit Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Market developments per 2019-03-31

In March, the spread on the iBoxx Euro Corporate Index tightened by 5 basis points to 140 basis points above the government bond curve. The index earned an absolute return of +1.39%. German 10-year government bond yields closed March at -0.07%, a decline of 25 basis points compared to the end of February.

The sharp decrease in government bond yields in March was mainly driven by a combination of worse-than-expected economic data and signals from central banks that they are planning to loosen monetary policy.

Economic growth figures continue to be worse than expected, especially in Europe. Indicators for industrial activity in particular have displayed a downward trend for several months now. In Germany, for instance, the PMI figures for industrial production in the first quarter of 2019 averaged 47.1. This is significantly lower than the average of 51.8 in the fourth quarter of 2018. Although economic growth remains positive in Germany, mainly thanks to robust consumer spending, the situation in Italy is rather alarming. Economic indicators in Italy are pointing to a possible recession. It is worth noting that confidence among Italian businesses has already dropped to levels last seen in 2015.

In spite of the improved sentiment in the equity and corporate bond markets in the first two months of the year, the US central bank felt it was still necessary to convey an even stronger signal to investors that a further tightening of monetary policy is highly unlikely. The Fed will now stop reducing its balance sheet in September. Moreover, the Fed indicated that there would be no further interest rate hikes this year. The ECB has in turn announced a new TLTRO programme that allows banks to borrow from the central bank at very attractive rates. This will make banks, especially the smaller ones, less dependent on funding themselves in capital markets. At the same time, the ECB noted that it was aware of the negative impact that the extremely low interest rate environment is having on the profitability of the European banking system. The practical manner by which the ECB intends to boost the profitability of European banks remains unclear, however.

The decision by Anglo-Swedish pharmaceutical company AstraZeneca to issue shares worth GBP2.7 billion was the most recent example of a company proactively attempting to improve its creditworthiness in a bid to prevent Moody’s and S&P downgrading its ratings. Similarly, Fidelity National Information Systems plans to finance approximately 90% of its USD43 billion acquisition of Worldpay using shares, and in doing so maintain its BBB and Baa2 ratings from S&P and Moody’s respectively.

The supply of new bonds stood at EUR47 billion in March, a decrease of about 4% versus February, and almost the same as a year previously. Non-financial sector companies issued EUR30 billion in new bonds last month, while financial sector companies issued EUR17 billion in new bonds. New bonds totalling EUR146 billion were issued in the first three months of this year, about 13% higher than the same period last year.

Portfolio developments per 2019-03-31

During the month the portfolio’s sensitivity to market trends varied between 100% and 106%. The portfolio therefore held a neutral to slight overweight positioning in terms of market risk.

Our positioning in the insurance, industrial goods and media sectors performed relatively well in March. In contrast, our positioning in the chemical, utilities and telecom sectors contributed negatively. Our liquidity position (in the shape of cash and government bonds) had a negative impact.

At individual company level, positive contributions came from the overweights in Medtronic, Atos, Sky, Partner Re and London Stock Exchange. In contrast, the overweights in Huntsman Corporation and Adler, as well as the underweights in Daimler and Banco Santander, contributed negatively to the return.

In March, the Fund participated in new bond issues by Medtronic, Telefonica, Danske Bank, Marsh & McLennan, CNH Industrial, Abertis, AB Inbev and Schaeffler.

Outlook
The material tightening of spreads since the start of this year has led to a decrease in the number of interesting investment opportunities. Combined with our concerns about the slowdown in global economic growth, we will maintain our defensive positioning.
Kempen (Lux) Euro Credit Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Performance per 2019-03-31 (rebased)

No chart data available

Performance per 2019-03-31

Slide to see more
  Fund Benchmark
1 month 1.4 % 1.4 %
3 months 3.3 % 3.2 %
This year 3.3 % 3.2 %
2016 5.1 % 4.7 %
2017 2.4 % 2.4 %
2018 -0.8 % -1.3 %
1 year (on annual basis) 2.8 % 2.3 %
3 years (on annual basis) i 2.5 % 2.2 %
5 years (on annual basis) i 3.2 % 2.8 %
Since inception (on annual basis) i 5.5 % 4.5 %
On 8 October 2013, the rebate free class (BN) of Kempen (Lux) Euro Credit Fund was launched. The results shown of the period 20 June 2013 until 8 October 2013 are those of class A of the same fund. The higher management fee of Class A has had an impact on the performance quoted. On 20 June 2013, Kempen Euro Credit Fund (KECF) was merged with Kempen (Lux) Euro Credit Fund. Up to 30 January 2012 (start of the Fund’s A class) the performance graph and performance table show the performance of KECF, for the period January 2012 till June 2013 the results of class A of Kempen (Lux) Euro Credit Fund are shown. The average annual TER for the period of April 2008 till June 2013 is 0.91%. 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 0.27
Ex-date last dividend
2019-01-21
Number of distributions per year
2
Dividend calendar
Kempen (Lux) Euro Credit Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Maturity profile (2019-03-31)

Fund
Benchmark
24.2 %
3-5 year
27.4 %
23.4 %
0-3 year
26.5 %
22.7 %
5-7 year
20.2 %
16.9 %
7-10 year
18.0 %
10.2 %
> 10 year
7.9 %
1.4 %
Cash
0.0 %
1.1 %
Other
0.0 %
Total
100 %
100 %

Sector allocation (2019-03-31)

30.0 %
Banks
17.3 %
Consumer Goods & Services
9.4 %
Utilities
7.8 %
Industry
7.5 %
Telecom & Technology
7.0 %
Financial Services & Real estate
6.0 %
Health Care
4.7 %
Insurance
3.3 %
Other
2.7 %
Sovereign bonds
2.1 %
Basic Materials
1.5 %
Energy
0.7 %
Asset Backed Securities
Total
100 %
The cash position is included in ‘Other’.

Rating allocation (2019-03-31)

Fund
Benchmark
3.1 %
AAA
0.5 %
2.4 %
AA
11.0 %
36.4 %
A
39.1 %
49.3 %
BBB
49.5 %
3.7 %
BB
0.0 %
3.6 %
Not Rated
0.0 %
1.4 %
Cash
0.0 %
Total
100 %
100 %
The rating allocation of the Fund is based on the Bloomberg Composite method. The rating allocation of the benchmark is based on the rating allocation used by provider Markit iBoxx.

Top 10 holdings (2019-03-31)

1.2 %
1.250% KFW 2016-36
1.2 %
0.625% Landwirtsch.Rentenbank 2015-30
1.1 %
JPM EUR Liquidity Fd-JPM EUR Liq LVNAV C
0.9 %
0.625% JP Morgan Chase 2016-24
0.9 %
1.750% Morgan Stanley 2016-24
0.8 %
1.750% Atos 2018-25
0.8 %
0.500% Banque Fed Cred Mutuel 2018-22
0.8 %
1.375% ENGIE perp 2018-23
0.8 %
1.150% Anheuser-Busch 2018-27
0.8 %
1.125% Deutsche Bahn 2019-28
Total
9.3 %
Kempen (Lux) Euro Credit Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Ongoing charges

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Management fee i
0.32 %
Service fee i
0.10 %
Taxe d'abonnement i
0.05 %
Expected ongoing charges i
0,47 %

Other costs

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Upward swing factor i
0.20 %
Downward swing factor i
0.20 %
The swingfactor is applicable if the sum of in and outflow (end trading day) is more than a pre defined percentage ( the so called ‘threshold’) of the fund size. The level of the threshold 1%. As of 1 January 2018 the swing factor has been adjusted from 0.25%/0.25% to 0.20%/0.20%.
Kempen (Lux) Euro Credit Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Share class details

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Share class
BN i
Investor type
Private
Distributing
Yes
Benchmark i
Markit iBoxx Euro Corporates Index
Duration hedged
No
Investment category
Credits
Universum
Credits denominated in euro
Inception date
2013-10-08
Domicile
Luxembourg
May be offered to all investors in
Belgium, Luxembourg, Switzerland, The Netherlands
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Management company
Kempen Capital Management N.V.
Depositary and custodian
J.P. Morgan Bank Luxembourg S.A.
Morningstar rating â„¢
Morningstar Analyst rating
Gold

Tradability

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Minimum subscription
Initial subscription €1
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU0927664382
Kempen (Lux) Euro Credit Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Kempen (Lux) Euro Credit Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

KCM Vision

Kempen Capital Management is an asset manager with a long-term investment approach. We strongly believe in engaged shareholdership that benefits all stakeholders. As a long-term responsible investor, we firmly believe that active ownership and shareholder engagement contribute to positive change across the board.

Our KCM wide approach to responsible investment

To put our vision into action we engage with our investment targets on a wide array of strategic, financial, environmental, social and governance (ESG) topics. Our long-term investment worldview paired with thorough analysis and an experienced and diverse ESG team allow us to use both voting and engagement as means to consistently encourage positive change. Through this process of constructive engagement, we are able to contribute to the development of principles and standards of corporate responsibility within companies that we invest in. Our full voting records are available here.

Our fund approach to Responsible Investment

The Kempen credit funds do not invest in companies that are either on the KCM exclusion or avoidance list. The focus in Kempen (Lux) Euro Credit Fund and Kempen (Lux) Euro Credit Fund + lies with the worst performing companies in terms of ESG. Companies that have a MSCI ESG rating ? B (on a scale where AAA is the highest and CCC is the lowest), a fail on the UN Global compact or a red flag on Impact Monitor, are selected for further analysis. Our sector specialist assesses the materiality of the ESG issue and its implications for the credit profile of the company. If an issue is deemed material, our first objective is to engage with the company on the issue. If we can conclude from the engagement that the ESG concerns are not structural and if the company is willing to improve, we make an adjustment in the determination of the relative value of the company's securities. In severe cases where we do not see any prospect of improvement we forego investment in the company.

Kempen (Lux) Euro Credit Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Bleicherweg 7, CH-8027 Zurich, Switzerland. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.