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 open the Fund as per 28 June 2018. As per June 2018 the Fund will continue to accept daily inflow below EUR 10 million from all investors. For investments greater than EUR 10 million please contact the Fund’s relationship manager. Redemptions will still be possible. More information about the soft open 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, Marco Zanotto

Performance per 2018-11-30 (rebased)

No chart data available

Performance per 2018-11-30

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  Fund Benchmark
1 month -0.5 % -0.7 %
3 months -0.9 % -1.1 %
This year -1.0 % -1.5 %
2015 -0.0 % -0.7 %
2016 5.1 % 4.7 %
2017 2.4 % 2.4 %
1 year (on annual basis) -1.3 % -1.7 %
3 years (on annual basis) i 1.8 % 1.6 %
5 years (on annual basis) i 2.9 % 2.5 %
Since inception (on annual basis) i 5.3 % 4.3 %
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 1,731.44 M 2018-11-30
Share class size
EUR 545.42 M 2018-11-30
Number of shares
20,882,052 2018-11-30
Net Asset Value i
EUR 26.17 2018-12-17
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Fund characteristics per 2018-11-30

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  Fund Benchmark
Number of holdings 270 2382
Duration i 5.3 5.0
Yield to maturity 1.4 % 1.6 %
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 2018-11-30

In November, the spread on the iBoxx Euro Corporate Index widened by 21 basis points to 166 basis points above the government bond curve. The index earned an absolute return of -0.66%. German 10-year government bond yields closed November at 0.31%, a decline of 7 basis points compared to the end of October.

Last month’s negative sentiment on the European corporate bond market deteriorated further in November. Investors seem to prefer the safest investments, including German and US government bonds and cash.

There is a long list of risks and trends that are adversely affecting investor sentiment as the end of the year approaches: 1) the burgeoning trade war between China and the US; 2) Italy’s high level of sovereign debt; 3) waning societal support for President Macron’s economic reforms in France; 4) a slowdown in economic growth in a number of important regions, such as Europe and Asia; 5) the deteriorating creditworthiness of companies caused by a combination of growing debt positions, lower profitability and decreasing diversification due to the dismantling of conglomerate structures; 6) the end of the ECB’s bond-buying programme; and 7) continued de-allocation from the corporate bond asset class.

Brexit continues to be another risk to investor sentiment. Prime Minister May’s final Brexit plan has been very poorly received by the UK parliament. Supporters and opponents of Brexit alike see plenty of reasons to reject the plan. The growing probability that the plan will not be approved is increasing uncertainty about the future trading relationship between the UK and the European Union. Potential alternative scenarios include holding a second referendum, submitting a request to the European Union to delay Brexit in order to have time to develop a new plan or calling early parliamentary elections. British businesses take a negative view of the prospect of a UK government led by the opposition Labour party and its leader Jeremy Corbyn.

Despite the above-mentioned risks, the capital markets did experience a brief upturn in sentiment at the end of the month. The chairman of the US central bank, Jay Powell, said that current interest rates were already close to neutral, i.e. a level that neither stimulates nor curbs the economy. This was significantly different from the language Powell used in October and prompted investors to hope that the series of interest rate hikes in the US was coming to an end.

Similar to last month, subordinated bonds issued by banks and insurers performed poorly. Bonds issued by UK companies also performed worse than average.

The supply of new bonds amounted to EUR42 billion in November, more than double the amount in October, but 6% down on the same month last year. Non-financial sector companies issued EUR25 billion in new bonds, while financial sector companies issued EUR17 billion in new bonds. Bonds worth EUR409 billion were issued during the first eleven months of this year, a drop of about 5% compared to the same period last year.

Portfolio developments per 2018-11-30

During the month, the portfolio’s sensitivity to market trends varied between 97% and 101%. The portfolio therefore held a slight underweight positioning in terms of market risk.

Our positioning in the banking, healthcare and technology sectors performed relatively well in November. In contrast, our positioning in the industrial goods, telecom and utility sectors contributed negatively. Our liquidity position (in the shape of cash and government bonds) had a positive impact.

At individual company level, positive contributions came from the overweights in Atos, Takeda Pharmaceutical, ING and Becton Dickinson, as well as from the underweights in Daimler, Banco Santander and HSBC. In contrast, the overweights in General Electric, Telefonica and OMV as well as the underweights in Rabobank and Nordea made a negative contribution.

In November, the Fund participated in new bond issues by e.g. Aviva, Logicor, InterContinental Hotels Group, ING, BNP Paribas, Castellum, Takeda Pharmaceutical, Volkswagen, Munich Re, Stryker, OMV, HSBC, London Stock Exchange, Credit Agricole and Borealis.

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

Because of the material widening in spreads since the start of this year, we can, however, identify interesting investment opportunities that we will use 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”), 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 2018-11-30 (rebased)

No chart data available

Performance per 2018-11-30

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  Fund Benchmark
1 month -0.5 % -0.7 %
3 months -0.9 % -1.1 %
This year -1.0 % -1.5 %
2015 -0.0 % -0.7 %
2016 5.1 % 4.7 %
2017 2.4 % 2.4 %
1 year (on annual basis) -1.3 % -1.7 %
3 years (on annual basis) i 1.8 % 1.6 %
5 years (on annual basis) i 2.9 % 2.5 %
Since inception (on annual basis) i 5.3 % 4.3 %
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
2018-07-23
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 (2018-11-30)

Fund
Benchmark
25.8 %
0-3 year
25.1 %
24.2 %
3-5 year
28.1 %
21.3 %
5-7 year
19.6 %
15.5 %
7-10 year
20.0 %
12.2 %
> 10 year
7.3 %
1.2 %
Other
0.0 %
Totaal
100 %
100 %

Sector allocation (2018-11-30)

29.9 %
Banks
19.8 %
Consumer Goods & Services
8.6 %
Utilities
7.1 %
Telecom & Technology
6.3 %
Financial Services & Real estate
6.3 %
Industry
6.0 %
Health Care
5.2 %
Insurance
3.4 %
Sovereign bonds
2.9 %
Energy
1.9 %
Basic Materials
1.3 %
Asset Backed Securities
1.2 %
Other
Totaal
100 %
The cash position is included in ‘Other’.

Rating allocation (2018-11-30)

Fund
Benchmark
5.0 %
AAA
0.5 %
4.3 %
AA
11.3 %
37.1 %
A
39.8 %
45.9 %
BBB
48.5 %
3.4 %
BB
0.0 %
4.3 %
Not Rated
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 (2018-11-30)

1.3 %
0.625% Landwirtsch.Rentenbank 2015-30
1.2 %
0.500% Daimler 2016-19
1.2 %
JP Morgan Euro Liquidity C
1.0 %
1.125% Takeda Pharmaceutical 2018-22
1.0 %
0.000% KFW 2017-22
0.9 %
1.750% Morgan Stanley 2016-24
0.8 %
1.750% Atos 2018-25
0.8 %
1.000% Richemont 2018-26
0.8 %
1.250% ING Bank 2014-19
0.7 %
1.125% Caixabank 2017-24
Totaal
9.7 %
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 full voting records are available here.

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.