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. As per June 2016 the Fund will continue to accept daily inflow below EUR 2 million from only existing investors. For investments greater than EUR 2 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, Harold van Acht, Sipke Moes, Luuk Cummins, Pim van Mourik Broekman, Quirijn Landman

Performance per 2018-05-31 (rebased)

No chart data available

Performance per 2018-05-31

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  Fund Benchmark
1 month -0.1 % -0.3 %
3 months -0.0 % -0.3 %
This year -0.4 % -0.6 %
2015 0.0 % -0.7 %
2016 5.1 % 4.7 %
2017 2.5 % 2.4 %
1 year (on annual basis) 0.9 % 0.6 %
3 years (on annual basis) i 2.1 % 1.8 %
5 years (on annual basis) i 3.4 % 2.8 %
Since inception (on annual basis) i 5.7 % 4.6 %
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 1,684.50 M 2018-05-31
Share class size
EUR 44.15 M 2018-05-31
Number of shares
36,528 2018-05-31
Net Asset Value i
EUR 1,212.45 2018-06-22
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Fund characteristics per 2018-05-31

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  Fund Benchmark
Number of holdings 258 2237
Duration i 5.3 5.2
Yield to maturity 1.1 % 1.3 %
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., 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 2018-05-31

In May, the spread on the iBoxx Euro Corporate Index widened by 29 basis points to 132 basis points above the government bond yield curve. The index earned an absolute return of -0.26%. German 10-year government bond yields closed May at 0.34%, a decline of 22 basis points compared to the end of April.

Sentiment in the capital markets was primarily driven by events in Italy. It initially appeared as if the Lega Nord and Five Star Movement parties would form a government with policies aimed at partly reversing the austerity measures and pension reforms introduced by previous Italian governments. The stumbling block for forming this government proved to be the proposed appointment of Paolo Savona as Minister of Finance. Past remarks by Savona on the need to prepare for exiting the euro should the currency become an obstacle to prosperity in Italy made markets very jittery. However, President Mattarella vetoed Savona’s appointment, citing the potential harm his appointment could cause to holders of Italian bonds and the Italian financial system as a whole. Markets subsequently panicked about the prospect of a fresh general election. The fear was that this election would act as a kind of unofficial referendum on Italy’s membership of the euro. With the unexpected results of the Brexit referendum and the recent US presidential election still fresh in their minds, risk aversion increased among investors. This was a major factor behind the sharp decrease in German 10-year government bond yields.

Spreads on corporate bonds quickly widened as a result of the increased risk aversion, especially those on bonds issued by Italian companies and subordinated bonds issued by banks and insurers. Moreover, there was a general widening of spreads on bonds that are eligible for the ECB’s CSPP programme. Spread curves also steepened.

A number of bond issues were cancelled due to a lack of demand from the market. Both German media company Bertelsmann and US white goods manufacturer Whirlpool were forced to cancel new bond issues. This was in spite of the fact that the spreads they were willing to pay represented a significant premium compared to where their existing bonds were trading.

The supply of new bonds was EUR40 billion in May, about 18% up on April but down approximately 37% compared to a year ago. Non-financial sector companies issued new bonds worth EUR28 billion last month, while financial sector companies issued EUR12 billion in new bonds. Bonds worth EUR203 billion were issued in the first five months of this year, a drop of about 9% compared to the same period last year.

Portfolio developments per 2018-05-31

During the month, the portfolio’s sensitivity to market trends varied between 100% and 103%. The portfolio therefore held a relatively neutral positioning in terms of market risk.

Our positioning in the banking, utilities and ABS sectors performed relatively well in May. In contrast, our positioning in the retail, oil & gas and construction materials sectors contributed negatively. Our liquidity position (in the shape of cash and government bonds) had a positive impact on the return.

At individual company level, positive contributions came from the overweights in Becton Dickinson, Christian Dior, WPP and Daimler, as well as the underweights in Generali and Enel. In contrast, the overweights in Caixabank, EDF, Terna and Allianz contributed negatively.

In May, the fund participated in new bond issues by e.g. Daimler, Unibail-Rodamco, United Technologies, GlaxoSmithKline, Danske Bank, BNP Paribas, G4S, Becton Dickinson and Innogy.

Outlook
We will maintain our conservative positioning for the time being. This positioning reflects our concerns about the trend of de-allocation from the credits asset class, the further tapering of the ECB’s CSPP programme later this year and the higher idiosyncratic risks at companies.

Given the material widening of spreads since the start of this year and the steeper spread curves, we can now identify more interesting investment opportunities and we will use these to selectively add more risk to the portfolio.
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., 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 2018-05-31 (rebased)

No chart data available

Performance per 2018-05-31

Slide to see more
  Fund Benchmark
1 month -0.1 % -0.3 %
3 months -0.0 % -0.3 %
This year -0.4 % -0.6 %
2015 0.0 % -0.7 %
2016 5.1 % 4.7 %
2017 2.5 % 2.4 %
1 year (on annual basis) 0.9 % 0.6 %
3 years (on annual basis) i 2.1 % 1.8 %
5 years (on annual basis) i 3.4 % 2.8 %
Since inception (on annual basis) i 5.7 % 4.6 %
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 24.78
Ex-date last dividend
2018-01-22
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., 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 (2018-05-31)

Fund
Benchmark
23.1 %
0-3 year
23.9 %
20.7 %
5-7 year
20.6 %
20.6 %
7-10 year
20.5 %
20.4 %
3-5 year
27.0 %
13.8 %
> 10 year
8.0 %
1.5 %
Cash
0.0 %
Totaal
100 %
100 %

Sector allocation (2018-05-31)

33.3 %
Banken
14.8 %
Consumentengoederen & diensten
8.1 %
Telecom & technologie
7.5 %
Nutsbedrijven
6.8 %
Financiële dienstverlening & Onroerend Goed
5.3 %
Verzekeringen
5.2 %
Industrie
4.6 %
Gezondheidszorg
4.0 %
Supranationaal
3.7 %
Energie
2.7 %
Basismaterialen
2.4 %
Overig
1.5 %
Asset Backed Securities
Totaal
100 %
The cash position is included in ‘Other’.

Rating allocation (2018-05-31)

Fund
Benchmark
7.5 %
AAA
0.6 %
8.2 %
AA
9.7 %
38.4 %
A
40.9 %
35.2 %
BBB
48.8 %
4.8 %
BB
0.0 %
4.5 %
Not Rated
0.0 %
1.5 %
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 (2018-05-31)

1.5 %
1.250% KFW 2016-36
1.3 %
0.625% Landwirtsch.Rentenbank 2015-30
1.2 %
0.500% Daimler 2016-19
1.1 %
1.077% BP Capital Markets 2017-25
1.0 %
0.000% KFW 2016-21
0.9 %
1.750% Morgan Stanley 2016-24
0.9 %
0.850% US Bancorp 2017-24
0.8 %
1.500% Wells Fargo 2015-22
0.8 %
1.375% Deutsche Telekom 2018-25
0.8 %
1.250% ING Bank 2014-19
Totaal
10.2 %
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., 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
0.01 %
Expected ongoing charges i
0,43 %

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”), 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
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 professional investors only 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
Subscription/Redemption 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., 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”), 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 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., 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.