- Kempen
- Kempen Lux Euro High Grade Government Fund Class BN
Kempen (Lux) Euro High Grade Government Fund - Class BN (terminated)
Profile
The Sub-Fund may also invest in bonds guaranteed by public European bodies provided that these entities have an investment grade Rating. The Fund aims to achieve a better long-term total return than its benchmark, the Bank of America Merrill Lynch Euro Government Index (the benchmark).
On August 31, 2020 Kempen (Lux) Euro Government Fund will be liquidated. The fund will be closed for subscriptions as from July 8, 2020. If you do not wish to participate in the liquidation, you may redeem until the respective cut-off time on August 26, 2020. You can find more information here: https://www.kempen.com/news-and-knowledge/persberichten-2020/kempen-to-discontinue-its-active-government-bond-funds
Performance per 2020-07-31 (rebased)
Performance per 2020-07-31
Fund | Benchmark | |
---|---|---|
1 month | 1.2 % | 1.1 % |
3 months | 2.9 % | 2.4 % |
This year | 3.3 % | 3.0 % |
2017 | 0.3 % | -0.4 % |
2018 | -0.0 % | 1.0 % |
2019 | 6.7 % | 6.8 % |
1 year (on annual basis) | 2.6 % | 2.1 % |
3 years (on annual basis) i | 3.7 % | 3.9 % |
5 years (on annual basis) i | 2.8 % | 2.9 % |
Since inception (on annual basis) i | 3.8 % | 4.0 % |
Key figures
Total fund size | EUR 24.16 M 2020-08-31 |
Share class size | EUR 20.88 M 2020-07-31 |
Number of shares | 16,480 2020-07-31 |
Net Asset Value i | EUR 1,261.07 2020-08-28 |
Turnover rate | 91.46 % |
Morningstar rating â„¢ | |
Fund characteristics per 2020-09-30
Fund | Benchmark | |
---|---|---|
Duration i | 8.5 | 8.6 |
Yield to maturity | 0.0 % | -0.0 % |
Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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.
Developments per 2020-09-30
The recipient member states will not simply be handed sums of money. They will need to submit plans detailing their recovery strategies that will need to be approved by the ministers of finance via a qualified majority vote. The European Commission will subsequently decide on the final allocation of the funds. Individual member states will not be able to block allocations from the fund, but will be able to lodge objections if countries fail to adhere to the submitted plans. This could lead to payments being suspended for three months.
The ECB and the Fed made virtually no changes to their policy instruments in July. The Fed extended a number of stimuli measures, but they are precisely the ones that are underused. Of greater interest is the fact that the Fed has completed its internal study on its policies and policy targets. More information will be given on this in September. It is perfectly possible that the policy target of 2% inflation will be adjusted to an average of 2% over the entire economic cycle. This would mean that following a period of inflation below 2% the Fed could tolerate an inflation rate of above 2% for a time. And this would in turn mean expansionary monetary policies for a longer period. Prior to the ECB policy meeting, a few policymakers suggested that it might not be necessary to use the full 1,350 billion euro bond-buying programme. Yet ECB governor Lagarde made short shrift of such ideas. At the July press conference she stressed that purchases would continue until at least July 2021 and certainly until the ECB believes that the crisis phase of the coronavirus has passed.
The published growth data over the second quarter demonstrates the havoc wreaked by the coronavirus crisis. The US and German economies contracted by about 10% versus the first quarter. Although Germany has not yet published any details, in the US most components made a negative contribution. Only exports and government spending made positive contributions. In France the contraction was as high as 13.8%, while in the Eurozone it stood at 12.1%.
A recovery did get underway in the second quarter though. Aided by expansionary fiscal policies, it’s mainly consumers who are leading the recovery. The impact of the easing of social restrictions, low levels of activity and stimulatory fiscal and monetary policies is now at its maximum. On the other hand, there are growing concerns about the coronavirus. The number of cases is still rising fast in the US, although the rate does seem to be flattening slightly. Europe is also seeing fresh surges here and there, for instance in Catalonia and Aragon in Spain.
German 10-year government bond yields declined by 7 basis points in July to -0.52%. Country spreads decreased by 3 basis points at index level, with spreads on 10-year Italian government bonds (17 bps) and their Slovenian counterparts contracting the most (22 bps). Spreads on government-related paper, such as KFW, IBRD and EIB, also tightened again slightly in July.
Inflation forecasts rose further, with expectations for the next 10 years up by 10 basis points. Our position in inflation-linked bonds consequently made a positive contribution to the performance. The same goes for our positions in Slovenia, Spain, Ireland and government-related paper, while our underweight in France contributed negatively to the relative performance.
Portfolio policy remains unchanged. Bond yields are likely to stay lower for longer. The portfolio is also cautiously positioned for lower risk premiums on credits, (semi) core countries and government-related paper. The economic recovery triggered by the easing of lockdown restrictions in Europe and elsewhere and the significant stimulus from central banks and governments offer a more hopeful perspective for the next few months, but the virus will continue to cause uncertainty.
Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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 2020-07-31 (rebased)
Performance per 2020-07-31
Fund | Benchmark | |
---|---|---|
1 month | 1.2 % | 1.1 % |
3 months | 2.9 % | 2.4 % |
This year | 3.3 % | 3.0 % |
2017 | 0.3 % | -0.4 % |
2018 | -0.0 % | 1.0 % |
2019 | 6.7 % | 6.8 % |
1 year (on annual basis) | 2.6 % | 2.1 % |
3 years (on annual basis) i | 3.7 % | 3.9 % |
5 years (on annual basis) i | 2.8 % | 2.9 % |
Since inception (on annual basis) i | 3.8 % | 4.0 % |
Dividends
Distributing | Yes |
Last dividend | EUR 22.50 |
Ex-date last dividend | 2020-01-16 |
Number of distributions per year | 1 |
Dividend calendar |
Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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 (2020-09-30)
Geographic allocation (2020-09-30)
Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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
Management fee i | 0.200 % |
Service fee i | 0.07 % |
Taxe d'abonnement i | 0.01 % |
Expected ongoing charges i | 0,28 % |
Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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
Share class | J |
Investor type | Institutional |
Distributing | Yes |
Benchmark i | Bank of America Merrill Lynch Euro Government Index |
Duration hedged | No |
Investment category | Government bonds |
Universum | Government bonds in euro |
Inception date | 2013-02-28 |
Domicile | Luxembourg |
May be offered to professional investors only 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„¢ | |
Tradability
Minimum subscription | Initial subscription: €50,000, additional subscriptions: €10,000 |
Listed | no |
Subscription/Redemption Frequency | Daily |
ISIN i | LU0880056436 |
Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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.
Factsheets
Annual Reports
Semi- Annual Reports
Key Investor Information
Formal documents other
Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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's vision and 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:
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ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.
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Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.
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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
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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
The ESG policy is fully implemented into the investment process of the Euro Government Strategy, with the key pillars in our approach being: Exclusion and ESG integration.
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1.   Exclusion
The fund follows the clear and transparent exclusion framework developed by Kempen. This includes exclusions for controversial weapon producers and the screening out of countries and companies based on UN Global Compact criteria. Such exclusions are reviewed as part of a quarterly process.
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2.    ESG integration
ESG analysis is undertaken both pre-investment and as part of our portfolio monitoring activities. Portfolio managers perform an in-depth analysis of ESG data, and ESG risks and opportunities are taken into account when selecting and monitoring governments and government-related issuers.
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First, as shown in the figure on the right side, ESG factors are a crucial part of the fundamental analysis used to generate a country score. The relative country valuation process includes several fundamental qualitative indicators covering each section of ESG. The portfolio managers assess the materiality of the ESG issue and its implications for the credit profile of the issuer.
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Second, the fund performs a quarterly screening using research provided by MSCI ESG. Kempen’s Responsible Investment team conducts the screening, and a review of the ESG ratings of bonds in the portfolio along with discussions on ESG rating developments are conducted by the Euro Government team.
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The following items are discussed on a quarterly basis:
• A review of the ESG ratings of bonds in the portfolio;
• A discussion on any developments / changes in the ESG ratings;
• Screening for controversies using MSCI ESG research;
• Exclusions, as detailed above.
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Finally, we are an active player in the market of green bonds and have a green bond policy which outlines the guidelines we adhere to defining a green bond. The Euro Government strategy will invest in green bonds rather than a ‘normal bond’ if the two bonds have the same risk/return characteristics.
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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 Partiesâ€), 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




Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). 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/en/asset-management). The information on the website is (partly) available in Dutch and English.
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.