Kempen Lux Euro Credit Fund - Class JD

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. The objective of de duration hegded share class JD is to hedge the interest rate exposure of the portfolio and by that reduce the impact of changes in the German Sovereign Curve on the return of the share class.

Management team

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

Performance per 2018-04-30 (rebased)

No chart data available

Performance per 2018-04-30

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  Fund
1 month 0.2 %
3 months -1.0 %
This year -0.4 %
2015 -1.0 %
2016 1.2 %
2017 1.8 %
3 years (on annual basis) i 0.4 %
5 years (on annual basis) i 1.3 %
Since inception (on annual basis) i 2.3 %
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 1,765.52 M 2018-04-30
Number of shares
16,029 2018-04-30
Net Asset Value i
EUR 995.95 2018-05-18
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Fund characteristics per 2018-04-30

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  Fund Benchmark
Number of holdings 253 2225
Duration i 0.1 5.2
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 2018-04-30

In April the iBoxx Euro Corporate Index tightened by 4 basis points to 103 basis points above the government bond curve. The index earned an absolute return of +0.04%. German 10-year government bond yields finished April at 0.56%, an increase of 7 basis points compared to the end of March.

The rise in German 10-year government bond yields was mirrored by an increase in US 10-year government bond yields. These exceeded 3% in April for the first time since 2013. This would primarily seem to be a response to the persisting economic growth, tighter job market and rising inflation in the US. The budgetary deficits that will be created by the recently adopted tax reforms are also contributing to higher US bond yields, thanks to the higher number of US government bonds needed to finance these deficits.

In the wake of wider spreads in the past two months, spreads on European corporate bonds tightened slightly in April. Those market segments that displayed the largest widening of spreads earlier this year, including subordinated bonds issued by insurance companies and banks and bonds issued by companies in the auto sector, performed better than average in April.

Corporate results over the first quarter of 2018 have so far sketched a fairly positive picture of the underlying strength of the global economy. However, this synchronous growth across almost all regions is pushing up the prices of important industrial commodities, as well as causing a growing shortage of workers and wage inflation in a number of important sectors, including transport and logistics. The extent to which companies are able to pass these higher costs on to customers varies per sector and was a significant factor behind the differences in reported earnings growth at companies.

In contrast to the equity markets, there was a negligible response to the disappointing first-quarter corporate results in the bond markets. On the other hand, the sometimes significant premiums that companies had to pay in order to place new bonds on the market in April compared to their existing bonds was a major factor behind the direction in which spreads moved.

The supply of new bonds was EUR34 billion in April, about 29% down on March and approximately 31% higher than a year earlier. Non-financial sector companies issued EUR18 billion in new bonds last month, while financial sector companies issued EUR16 billion in new bonds. New bond issues amounted to EUR163 billion in the first four months of this year, an increase of about 3% compared to the same period last year.

Portfolio developments per 2018-04-30

During the month, the portfolio’s sensitivity to market trends varied between 98% and 103%. The portfolio therefore held a relatively neutral positioning in terms of market risk.

Our positioning in the auto, industrial goods and basic resources sectors performed relatively well in April. In contrast, our positioning in the banking, insurance and telecom sectors contributed negatively to the return. Our liquidity position (in the shape of cash and government bonds) made a negative contribution.

At individual company level, positive contributions came from overweights in Volkswagen, EDF, Bayer, Stora Enso and KraftHeinz. In contrast, the overweights in Iliad, SEB SA, WPP and Partner Re contributed negatively.

In April, the Fund participated in new bond issues by e.g. Swisscom, CK Hutchison, UBS, Caixabank, Mondi, Unibail-Rodamco, Iliad, EP Infrastructure, Adler and TVO.

Outlook
We will maintain our conservative positioning in the short term. This positioning derives from 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, the fact that spreads continue to be tight from a historical perspective and the higher idiosyncratic risks at companies.

 

The hedged shareclass achieved a performance of 0.23% and therefore outperformed the benchmark that earned a return of 0.04% by 19 basis points. The hedged shareclass also outperformed the regular KLECF sharesclasses by 23 basis points. The main reason for the outperformance was the increase of the bond yields.

 

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 2018-04-30 (rebased)

No chart data available

Performance per 2018-04-30

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  Fund
1 month 0.2 %
3 months -1.0 %
This year -0.4 %
2015 -1.0 %
2016 1.2 %
2017 1.8 %
3 years (on annual basis) i 0.4 %
5 years (on annual basis) i 1.3 %
Since inception (on annual basis) i 2.3 %
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 20.46
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 (2018-04-30)

Fund
Benchmark
23.5 %
0-3 year
24.0 %
22.5 %
7-10 year
19.9 %
19.9 %
5-7 year
20.7 %
18.5 %
3-5 year
26.9 %
13.5 %
> 10 year
8.6 %
2.0 %
Cash
0.0 %
Totaal
100 %
100 %

Sector allocation (2018-04-30)

33.9 %
Banken
15.9 %
Consumentengoederen & diensten
8.2 %
Nutsbedrijven
7.1 %
Telecom & technologie
6.4 %
Financiële dienstverlening & Onroerend Goed
5.5 %
Verzekeringen
4.9 %
Industrie
4.8 %
Gezondheidszorg
4.1 %
Energie
2.9 %
Overig
2.6 %
Supranationaal
2.5 %
Basismaterialen
1.5 %
Asset Backed Securities
Totaal
100 %
The cash position is included in ‘Other’.

Rating allocation (2018-04-30)

Fund
Benchmark
6.3 %
AAA
0.6 %
9.1 %
AA
9.6 %
38.2 %
A
40.4 %
35.6 %
BBB
49.4 %
4.3 %
BB
0.0 %
4.5 %
Not Rated
0.0 %
2.0 %
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 (2018-04-30)

1.2 %
0.500% Daimler 2016-19
1.0 %
1.250% KFW 2016-36
1.0 %
0.000% KFW 2016-21
0.9 %
1.250% BG Energy Capital 2014-22
0.9 %
4.375% Intesa SanPaolo 2012-19
0.9 %
1.077% BP Capital Markets 2017-25
0.9 %
0.850% US Bancorp 2017-24
0.9 %
0.625% Landwirtsch.Rentenbank 2015-30
0.8 %
1.500% Wells Fargo 2015-22
0.8 %
0.875% ENGIE 2017-24
Totaal
9.2 %
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
JD i
Investor type
Institutional
Distributing
Yes
Benchmark i
Markit iBoxx Euro Corporates Index
Duration hedged
Yes
Investment category
Credits
Universum
Credits denominated in euro
Inception date
2012-07-24
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
LU0772264270
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.