Kempen Lux Income Fund Class LI

Profile

Kempen International Funds SICAV – Kempen (Lux) Income Fund (the Fund) is designed to achieve current income and capital appreciation over the medium-term by investing primarily in a diversified portfolio of fixed income securities. The Fund employs a top down macro perspective along with bottom-up security selection, with a focus on downside protection.

The Fund does not have a benchmark. Attention: it is envisaged that this share class will be closed for further subscriptions once the Fund (all share classes combined) reaches a size of € 300 million. The discounted management fee of 34bps will remain for a period of 3 years starting at the launch of the share class, to facilitate the initial growth of the Fund. After this period the Board of Directors will decide on the conditions and future of this share class.

Management team

Roelof Salomons, Ivo Kuiper, Kim Lubbers

Performance per 2019-01-31 (rebased)

No chart data available

Performance per 2019-01-31

Slide to see more
  Fund
1 month 0.4 %
3 months -0.2 %
This year 0.4 %
2017 0.3 %
2018 -2.5 %
1 year (on annual basis) -2.5 %
Since inception (on annual basis) i -1.2 %
Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future. (Partial) hedging the interest and credit exposure, results in a lower yield for the portfolio.
More information can be found on the documents page of this fund

Key figures

Slide to see more
Share class size
EUR 67.31 M 2019-01-31
Net Asset Value i
EUR 983.06 2019-02-21

Fund characteristics per 2019-01-31

Slide to see more
  Fund
Number of holdings 699
Kempen (Lux) Income Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “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.

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 2019-01-31

In January, many markets moved in completely the opposite direction from the one in which they moved in December. December was a negative month for the riskier asset classes, while January was a good month for them. Equity prices around the globe rose by 5%-10%. Credit spreads on corporate bonds tightened; by 10 basis points (bps) for investment grade and 60bps for high yield bonds. Commodity prices climbed, led by an increase in oil prices of about 15%. OPEC’s planned production cuts of 1.2 million barrels a day may have played a role here. However, government bond markets did not undergo a reversal, with the most remarkable decrease occurring in US bond yields. In a month in which US inflation forecasts were increased by 10-15bps, 5 and 10-year government bond yields declined by about 6bps. This means a drop in real yields of about 20bps.

In the Eurozone, 10-year government bond yields fell by about 15 bps. The spread on the iBoxx Euro Corporate Index tightened by 12 basis points to 160 basis points above the government bond curve. The index earned an absolute return of +1.10%. In January, the spread on the high yield BB index tightened by 42 basis points to 259 basis points above the swap curve. In January, the index earned an absolute return of +2.06%, its best month in nearly three years. Subordinated bonds issued by insurers and non-financial companies performed better than average in January. At sector level, real estate and industrial goods were the star performers.

One major reason for the lower bond yields and higher equity prices was the more cautious tone being adopted by central banks. Equity markets viewed this as support, as the impression had previously been that the Fed, the US system of central banks, would continue to raise interest rates for too long. In October, the market was still pricing in three interest rate hikes by the Fed in 2019. In January, however, prices even briefly priced in a cut to interest rates. This was understandable. In December, Fed chairman Jay Powell continued to claim that the reduction in the Fed’s balance sheet would happen on automatic pilot and that further step-by-step increments in interest rates were likely. Powell adopted a more nuanced tone in January though. The Fed now intends to be patient on further interest rate hikes and the reduction of the balance sheet will now depend on how economic data evolve. ECB President Draghi was also being cautious at the end of January and pointing to the downward risks in the Eurozone economy. There is very little chance of Draghi raising interest rates again before he relinquishes the post of ECB president later this year.

The economic data reinforced the picture of a weakening economy. There are increasing signs that global economic growth is weakening, particularly in Europe and in China. Examples include the economic recession in Italy, the falling IFO business climate index in Germany and Chinese car sales that in December were down 16% on a year earlier. Indicators that measure the extent to which economic data match the forecasts plunged deep into the red in most regions. Several factors seem to be behind the weakening growth, including a slowdown in growth in China, the uncertainty surrounding the Brexit, the difficult trade relations between the US and China and the impact of monetary tightening.

Portfolio developments per 2019-01-31

The Kempen Income Fund noted a positive performance in December (+0.43%). The tighter credit spreads on corporate bonds was one important reason behind the positive return. High yield performed even better than investment grade credits. Several positions in supranational institutions experienced difficulty in mimicking Germany’s even lower yields and therefore lagged behind slightly. Several peripheral EU countries, such as Spain, Portugal, Ireland and Belgium, saw the difference in yield with Germany shrink. The slight overweight in these countries made a positive contribution to the return. The underweight in French government bonds did not help, however, as these bonds also performed relatively well. It is noticeable that the differences in long-term yields for countries such as Italy and France versus Germany barely tightened and in fact were more likely to widen slightly, in contrast to the shorter durations. The market is cautious. We reduced the fund’s position in a few non-core EU countries towards the end of the month.

At individual company level, there were positive contributions from the overweights in EDF, General Electric, OMV, Telefonica, CaixaBank, Nokia, Solvay, Adler and Motherson, as well as from the underweights in Rabobank, Ceconomy, Jaguar LandRover, Wind and Gestamp. In contrast, the overweights in Deutsche Bahn, Volkswagen, Becton Dickinson Schaeffler, FCA Capital, thyssenkrupp, as well as the underweights in Generali, Contourglobal and Spie, made a negative contribution.

The portfolio continues to be positioned for higher bond yields and smaller differences in yield versus Germany. There is a great deal of uncertainty surrounding the outlook for growth, but we believe that a reasonably weak economic scenario has already been priced in to bond yields and that economic growth will ultimately continue. The opportunities for an economic upturn in the Eurozone are being underestimated. The central banks are providing a boost to higher bond yields by reducing their quantitative easing.

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 the multiple signs of a slowdown in global economic growth and our forecast that the supply of new bonds will increase significantly in the next few months, we remain cautious about the amount of credit risk to which the portfolio is exposed.
Kempen (Lux) Income Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “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.

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 2019-01-31 (rebased)

No chart data available

Performance per 2019-01-31

Slide to see more
  Fund
1 month 0.4 %
3 months -0.2 %
This year 0.4 %
2017 0.3 %
2018 -2.5 %
1 year (on annual basis) -2.5 %
Since inception (on annual basis) i -1.2 %
Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future. (Partial) hedging the interest and credit exposure, results in a lower yield for the portfolio.

Dividends

Slide to see more
Distributing
No
Kempen (Lux) Income Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “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.

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 (2019-01-31)

25.5 %
5-7 year
22.2 %
7-10 year
17.9 %
3-5 year
17.8 %
> 10 year
16.1 %
0-3 year
0.5 %
Cash
0.0 %
Other
Totaal
100 %

Sector allocation (2019-01-31)

33.0 %
Sovereign bonds
20.9 %
Banks
9.6 %
Consumer Goods & Services
6.2 %
Other
5.5 %
Industry
4.8 %
Telecom & Technology
4.8 %
Utilities
3.5 %
Financial Services & Real estate
3.2 %
Insurance
2.8 %
Supranational
2.2 %
Basic Materials
1.6 %
Energy
1.2 %
Health Care
0.5 %
Asset Backed Securities
Totaal
100 %

Rating allocation (2019-01-31)

10.3 %
AAA
9.6 %
AA
27.9 %
A
28.0 %
BBB
15.5 %
BB
1.8 %
B
6.2 %
Not Rated
0.5 %
Cash
0.0 %
Other
Totaal
100 %

Top 10 holdings (2019-01-31)

2.5 %
1.850% Frankrijk I/L 2011-27
2.2 %
1.500% Temasek 2016-28
2.1 %
1.250% Belgie 2018-33
2.1 %
1.750% Chili 2016-26
2.1 %
1.125% Corp Andina de Fomento 2018-25
1.6 %
1.1875% Slovenia 2019-29
1.4 %
2.125% Portugal 2018-28
1.4 %
0.800% Belgie 2018-28
1.4 %
1.950% Spanje 2016-26
1.4 %
1.125% Polen 2018-26
Totaal
18.3 %
Kempen (Lux) Income Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “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.

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

Slide to see more
Management fee i
0.34 %
Service fee i
0.10 %
Taxe d'abonnement i
0.01 %
Indirect costs i
0.05%-0.10% (estimated range)
Expected ongoing charges i
0.50% - 0.55% (estimated bandwith)

Other costs

Slide to see more
Upward swing factor i
0.10 %
Downward swing factor i
0.10 %
Kempen (Lux) Income Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “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.

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

Slide to see more
Share class
LI
Investor type
Institutional
Distributing
No
Duration hedged
No
Investment category
Multi Asset Strategies
Inception date
2017-08-07
Domicile
Luxembourg
May be offered to professional investors only in
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.
Custodian
J.P. Morgan Bank Luxembourg S.A.

Tradability

Slide to see more
Minimum subscription
Initial subscription: €1,000, additional subscriptions: €1,000
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU1626447269
Kempen (Lux) Income Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “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.

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) Income Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “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.

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.

Kempen (Lux) Income Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “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.

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.