Kempen Lux Euro Credit Fund - Class BN

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 2018-03-31 (rebased)

No chart data available

Performance per 2018-03-31

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  Fund Benchmark
1 month 0.1 % -0.1 %
3 months -0.3 % -0.4 %
This year -0.3 % -0.4 %
2015 -0.0 % -0.7 %
2016 5.1 % 4.7 %
2017 2.4 % 2.4 %
3 years (on annual basis) i 1.8 % 1.5 %
5 years (on annual basis) i 3.7 % 3.1 %
Since inception (on annual basis) i 5.8 % 4.7 %
On 8 October 2013, the rebate free class (BN) of Kempen (Lux) Euro Credit Fund was launched. The results shown of the period 20 June 2013 until 8 October 2013 are those of class A of the same fund. The higher management fee of Class A has had an impact on the performance quoted. On 20 June 2013, Kempen Euro Credit Fund (KECF) was merged with Kempen (Lux) Euro Credit Fund. Up to 30 January 2012 (start of the Fund’s A class) the performance graph and performance table show the performance of KECF, for the period January 2012 till June 2013 the results of class A of Kempen (Lux) Euro Credit Fund are shown. The average annual TER for the period of April 2008 till June 2013 is 0.91%. 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 1,768.30 M 2018-03-31
Number of shares
21,272,531 2018-03-31
Net Asset Value i
EUR 26.61 2018-04-19
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Fund characteristics per 2018-03-31

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  Fund Benchmark
Number of holdings 264 2185
Duration i 5.4 5.2
Yield to maturity 1.1 % 1.2 %
Weighted rating A BBB+
Kempen (Lux) Euro Credit Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), 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 2018-03-31

In March, the spread on the iBoxx Euro Corporate Index widened by 18 basis points to 107 basis points above the government bond curve. The index earned an absolute return of -0.12%. German 10-year government bond yields closed March at 0.49%, a drop of 16 basis points compared to the end of February.

The decrease in German 10-year government bond yields seems primarily to be driven by three developments. Firstly, equity markets declined after two major tech companies came under public pressure. President Trump has commented several times on what he sees as the undesirability of the commercial relationship between Amazon and the US postal service. At the same time, Facebook was embarrassed by a major data leak and suspected involvement in Russian interference in the 2016 US presidential election campaign. Tech companies - mainly those collectively known as FAANG equities, i.e. Facebook, Amazon, Apple, Netflix and Alphabet (Google) - were responsible for a significant portion of the gains in equity markets at the start of this year. The drop in their equity prices in March consequently had a negative impact on investor sentiment.

The second event that contributed to the fall in German bond yields was the publication of several economic indicators pointing to a slowdown in European growth. In spite of the fact that the PMIs for the industrial and service sectors remain well above 50 – and in doing so point to growth – indicators are slowly trending towards lower levels. Weaker economic growth in Europe would decrease the potential for a sharp rise in inflation and reduce the risk of a corresponding acceleration in monetary tightening by the ECB.

The third event that contributed to a more risk-averse attitude among investors was political uncertainty, mainly driven by staffing changes within the Trump administration. Gary Cohn, a former president and COO of Goldman Sachs, resigned as chief economic advisor to make way for television presenter Larry Kudlow. Next, Secretary of State Rex Tillerson was fired and John Bolton – a known supporter of military interventions – was appointed National Security Advisor. Combined with signs that President Trump wants to impose import tariffs in order to reduce the US trade deficit, these staffing changes again triggered concerns about the administration’s foreign policy.

In addition to general risk aversion among investors, outflow from the corporate bonds asset class was an important factor behind the widening of spreads in March. Continued bond-buying by the ECB – mainly in the primary market – failed to cancel out the negative sentiment on the credit market.

The supply of new bonds was EUR48 billion in March, about 50% up on February and more or less the same as a year earlier. Non-financial sector companies issued EUR29 billion in new bonds last month, while financial sector companies issued EUR19 billion in new bonds. A total of EUR129 billion in new bonds was issued in the first three months of the year, a decrease of about 4% compared to the same period last year.

Portfolio developments per 2018-03-31

During the month, the portfolio’s sensitivity to market trends varied between 102% and 108%. The portfolio therefore held a relatively slight overweight positioning in terms of market risk.

Our positioning in the banking, ABS and food sectors performed relatively well in March. In contrast, our positioning in the oil & gas, utilities and industrial goods sectors made a small negative contribution to performance. Our liquidity position (in the shape of cash and government bonds) had a positive impact on the result.

At individual company level, positive contributions came from the overweights in TVO, ZF Friedrichshafen and Christian Dior, as well as the underweights in AXA and Daimler. In contrast, the overweights in EDF, Allianz and Crédit Agricole contributed negatively.

In March, the fund participated in new bond issues by e.g. Prologis, Chubb, Nationwide, SAP, Gecina, Sanofi, Richemont, Deutsche Boerse, Allied Irish Banks and Crédit Agricole.

Outlook
We will maintain our conservative positioning in spite of the significant widening of spreads in March. In the run-up to the publication of corporate results over the first quarter of 2018, we anticipate an above-average supply of new bonds, mainly issued by non-financial institutions. Taking into account the trend towards outflow from the corporate bond asset class, we expect this supply of new bonds to prompt a further widening of spreads.
Kempen (Lux) Euro Credit Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), 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 2018-03-31 (rebased)

No chart data available

Performance per 2018-03-31

Slide to see more
  Fund Benchmark
1 month 0.1 % -0.1 %
3 months -0.3 % -0.4 %
This year -0.3 % -0.4 %
2015 -0.0 % -0.7 %
2016 5.1 % 4.7 %
2017 2.4 % 2.4 %
3 years (on annual basis) i 1.8 % 1.5 %
5 years (on annual basis) i 3.7 % 3.1 %
Since inception (on annual basis) i 5.8 % 4.7 %
On 8 October 2013, the rebate free class (BN) of Kempen (Lux) Euro Credit Fund was launched. The results shown of the period 20 June 2013 until 8 October 2013 are those of class A of the same fund. The higher management fee of Class A has had an impact on the performance quoted. On 20 June 2013, Kempen Euro Credit Fund (KECF) was merged with Kempen (Lux) Euro Credit Fund. Up to 30 January 2012 (start of the Fund’s A class) the performance graph and performance table show the performance of KECF, for the period January 2012 till June 2013 the results of class A of Kempen (Lux) Euro Credit Fund are shown. The average annual TER for the period of April 2008 till June 2013 is 0.91%. 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 0.27
Ex-date last dividend
2018-01-22
Number of distributions per year
2
Dividend calendar
Kempen (Lux) Euro Credit Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), 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 (2018-03-31)

Fund
Benchmark
25.3 %
0-3 years
0.0 %
22.6 %
5-7 years
0.0 %
21.6 %
7-10 years
0.0 %
15.9 %
3-5 years
0.0 %
13.5 %
> 10 years
0.0 %
1.0 %
Cash
0.0 %
0.0 %
0-3 year
23.9 %
0.0 %
3-5 year
27.0 %
0.0 %
5-7 year
21.0 %
0.0 %
7-10 year
19.8 %
0.0 %
> 10 year
8.3 %
Totaal
100 %
100 %

Sector allocation (2018-03-31)

34.2 %
Banks
17.8 %
Consumer Goods & Services
8.2 %
Utilities
6.2 %
Financial Services & Real estate
6.1 %
Telecom & Technology
5.4 %
Industry
4.9 %
Insurance
4.8 %
Health Care
4.1 %
Energy
2.6 %
Supranational
2.5 %
Basic Materials
1.8 %
Other
1.5 %
Asset Backed Securities
Totaal
100 %
The cash position is included in ‘Other’.

Rating allocation (2018-03-31)

Fund
Benchmark
37.2 %
A
40.0 %
37.0 %
BBB
49.9 %
8.7 %
AA
9.5 %
6.8 %
AAA
0.6 %
6.0 %
Not Rated
0.0 %
3.4 %
BB
0.0 %
1.0 %
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 (2018-03-31)

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 %
1.000% Credit Suisse 2016-23
Totaal
9.2 %
Kempen (Lux) Euro Credit Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), 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
0.05 %
Expected ongoing charges i
0,47 %

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”), 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
BN i
Investor type
Private
Distributing
Yes
Benchmark i
Markit iBoxx Euro Corporates Index
Duration hedged
No
Investment category
Credits
Universum
Credits denominated in euro
Inception date
2013-10-08
Domicile
Luxembourg
May be offered to all investors in
Belgium, Luxembourg, Switzerland, The Netherlands
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Management company
Kempen Capital Management N.V.
Custodian
J.P. Morgan Bank Luxembourg S.A.
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Tradability

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Minimum subscription
Initial subscription €1,000
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU0927664382
Kempen (Lux) Euro Credit Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), 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”), 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”), 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.