Kempen Lux Euro Credit Fund - Class J

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 close the Fund as per 5 January 2016. The Fund will continue to accept daily inflow below EUR 5 million from only existing investors. For investments greater than EUR 5 million please contact the Fund’s relationship manager. Redemptions will still be possible. More information about the soft close can be found in the Notice to shareholders in the tab Documents.

Management team

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

Performance per 2017-08-31 (rebased)

No chart data available

Performance per 2017-08-31

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  Fund Benchmark
1 month 0.6 % 0.6 %
3 months 0.8 % 0.8 %
This year 1.9 % 2.0 %
2014 9.0 % 8.2 %
2015 0.0 % -0.7 %
2016 5.1 % 4.7 %
3 years (on annual basis) i 2.9 % 2.5 %
5 years (on annual basis) i 4.6 % 4.0 %
Since inception (on annual basis) i 6.1 % 5.0 %
On 20 June 2013, Kempen Euro Credit Fund (KECF) was merged with Kempen (Lux) Euro Credit Fund (the Fund). Up to June 2011 (start of the Fund) the performance graph and performance table show the performance of KECF. The average annual TER for the period of April 2008 till June 2011 is 0.97%. 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 1,883.87 M 2017-08-31
Number of shares
39,459 2017-08-31
Net Asset Value i
EUR 1,229.98 2017-09-22
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Fund characteristics per 2017-08-31

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  Fund Benchmark
Number of holdings 268 2078
Duration i 5.2 5.3
Yield to maturity 0.9 % 1.0 %
Weighted rating A- BBB+
Kempen (Lux) Euro Credit 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.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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 2017-08-31

In August, the spread of the iBoxx Euro Corporate Index widened by 8 basis points to 111 basis points above the government bond curve. The index earned an absolute return of 0.55%. German government bond yields stood at 0.36% at the end of August, 18 basis points down on the end of July.

The sharp drop in German government bond yields had three main causes. Firstly, the growing geopolitical tensions surrounding North Korea triggered a flight to safety and in doing so pushed up demand for safe investments. In addition to the sharp movement in German government bond yields, yields on US treasuries declined and the price of gold rose by about four percent for instance.

The second main cause of the drop in German government bond yields would seem to be the appreciation of the euro. A stronger euro contributes to lower import prices and a slightly weaker competitive position for exporters. The appreciation of the euro can therefore be viewed as a form of monetary tightening. Investors believe that the ECB will scale back its bond-buying programme less quickly next year as a result.

The third major reason was the lack of clear signals on further interest rate hikes from central bankers at their annual get-together in Jackson Hole in the US. However, the central bankers did express their concern about plans (at present chiefly to be found in US Congress) to reverse legislation aimed at creating a safer and more robust financial sector. Janet Yellen also stressed that the Fed would start to reduce its balance sheet of USD4.5 trillion in the short term.

In August, the supply of new bonds was EUR20.1 billion and therefore about the same as the previous month and as August 2016. Non-financial sector institutions issued EUR8.1 billion in new bonds, while financial sector institutions issued EUR12.0 billion. During the first eight months of this year, the supply of new bonds amounted to EUR364.5 billion, a slight drop of 4% versus last year.

Portfolio developments per 2017-08-31

Across the month, the portfolio’s sensitivity to market trends varied between 107 and 113%. In doing so, the portfolio held a slightly overweight positioning in terms of market risk.

Our positioning in the personal and household goods, real estate and foods sectors performed relatively well in August. In contrast, our positioning in the telecom, energy and banking sectors contributed negatively. Our liquidity position (in the shape of cash and government bonds) added to the return.

At company level, positive contributions came from the overweights in BAT and Gecina and the underweight in Mylan. In contrast, the overweights in Teva, AT&T, Telecom Italia and Volkswagen contributed negatively.

In August, the Fund participated in new bond issues by UBS, BAT and Balder.

Outlook
We have recently become slightly more negative about the European credit market. The lack of dispersion in the interest premiums that companies with wide-ranging levels of creditworthiness are having to pay remains a serious cause for concern. Moreover, from a historical perspective spreads are still very tight. We also see risks in the current conflict between the US and North Korea and in inflation rising more rapidly than expected due to the upturn in the global economy. Finally, we also expect an increase in the number of bonds issued now that the holiday period is over. For this reason, in spite of the robust economic climate in Europe and the persisting support for the credit market deriving from the ECB’s CSPP, we intend to adopt a more conservative positioning in the short term.
Kempen (Lux) Euro Credit 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.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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 2017-08-31 (rebased)

No chart data available

Performance per 2017-08-31

Slide to see more
  Fund Benchmark
1 month 0.6 % 0.6 %
3 months 0.8 % 0.8 %
This year 1.9 % 2.0 %
2014 9.0 % 8.2 %
2015 0.0 % -0.7 %
2016 5.1 % 4.7 %
3 years (on annual basis) i 2.9 % 2.5 %
5 years (on annual basis) i 4.6 % 4.0 %
Since inception (on annual basis) i 6.1 % 5.0 %
On 20 June 2013, Kempen Euro Credit Fund (KECF) was merged with Kempen (Lux) Euro Credit Fund (the Fund). Up to June 2011 (start of the Fund) the performance graph and performance table show the performance of KECF. The average annual TER for the period of April 2008 till June 2011 is 0.97%. 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 24.51
Ex-date last dividend
2017-01-23
Number of distributions per year
1
Dividend calendar
Kempen (Lux) Euro Credit 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.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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 (2017-08-31)

Fund
Benchmark
23.3 %
0-3 year
20.7 %
11.4 %
3-5 year
27.6 %
28.1 %
5-7 year
20.9 %
18.4 %
7-10 year
22.1 %
14.3 %
> 10 year
8.6 %
4.5 %
Cash
0.0 %
Totaal
100 %
100 %

Sector allocation (2017-08-31)

31.1 %
Banks
16.5 %
Consumer Goods & Services
8.1 %
Utilities
8.1 %
Financial Services & Real estate
7.9 %
Telecom & Technology
6.1 %
Industry
5.4 %
Other
4.9 %
Insurance
2.9 %
Energy
2.9 %
Basic Materials
2.3 %
Supranational
1.6 %
Health Care
1.2 %
Asset Backed Securities
1.1 %
Sovereign bonds
Totaal
100 %
The cash position is included in ‘Other’.

Rating allocation (2017-08-31)

Fund
Benchmark
6.5 %
AAA
0.6 %
6.2 %
AA
11.1 %
35.1 %
A
39.6 %
39.5 %
BBB
48.7 %
4.2 %
BB
0.0 %
4.0 %
Not Rated
0.0 %
4.5 %
Cash
0.0 %
Totaal
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 (2017-08-31)

1.0 %
1.375% Goldman Sachs 2017-24
0.9 %
1.500% ENIIM 2017-27
0.9 %
1.379% Bank of America 2017-25
0.9 %
1.638% JP Morgan Chase 2017-28
0.9 %
1.250% BG Energy Capital 2014-22
0.8 %
0.850% US Bancorp 2017-24
0.8 %
0.625% Landwirtsch.Rentenbank 2015-30
0.8 %
1.250% KFW 2016-36
0.8 %
4.000% Rabobank 2012-22
0.8 %
0.875% ENGIE 2017-24
Totaal
8.6 %
Kempen (Lux) Euro Credit 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.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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
0.01 %
Expected ongoing charges i
0,43 %

Other costs

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Upward swing factor i
0.25 %
Downward swing factor i
0.25 %
More about our swing pricing policy
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 (effective as of 1 August 2014). The level of the threshold can vary; investors can request KCM for information about the thresholds that were applied in the past. As of 7 July 2015 the swing factor has been adjusted from 0.20% to 0.25%.
Kempen (Lux) Euro Credit 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.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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
J
Investor type
Institutional
Distributing
Yes
Benchmark i
Markit iBoxx Euro Corporates Index
Duration hedged
No
Investment category
Credits
Universum
Credits denominated in euro
Inception date
2011-06-15
Domicile
Luxembourg
May be offered to all investors in
Belgium, France, 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.
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Tradability

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Minimum subscription
Initial subscription: €50,000, additional subscriptions: €10,000
Listed
no
Pricing frequency
Daily
ISIN i
LU0630255858
Kempen (Lux) Euro Credit 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.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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”), 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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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.

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”), 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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. 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.