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

Management team

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

Performance per 2018-01-31 (rebased)

No chart data available

Performance per 2018-01-31

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  Fund Benchmark
1 month -0.3 % -0.3 %
3 months -0.7 % -0.7 %
This year -0.3 % -0.3 %
2015 -0.0 % -0.7 %
2016 5.1 % 4.7 %
2017 2.4 % 2.4 %
3 years (on annual basis) i 2.0 % 1.7 %
5 years (on annual basis) i 4.1 % 3.5 %
Since inception (on annual basis) i 5.9 % 4.8 %
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 1,804.43 M 2018-01-31
Number of shares
20,808,944 2018-01-31
Net Asset Value i
EUR 26.45 2018-02-16
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Fund characteristics per 2018-01-31

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  Fund Benchmark
Number of holdings 263 2179
Duration i 5.4 5.2
Yield to maturity 1.0 % 1.1 %
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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Market developments per 2018-01-31

In January, the spread of the iBoxx Euro Corporate Index tightened by 13 basis points to 83 basis points above the government bonds curve. The index earned an absolute return of -0.27%. German 10-year bond yields ended January at 0.69%, an increase of 27 basis points compared to the end of December 2017.

The sharp rise in yields, both in the US and Europe, seems to be being driven by growing concerns about the prospect of upward inflationary pressure caused by persisting economic growth in almost all the world’s major regions. This economic growth is resulting in higher capacity utilisation rates and tighter job markets, which in the long term could lead to higher prices and wages. In a bid to stop the economy from overheating, the Fed is preparing to implement three to four interest rate hikes this year. At the same time, since the beginning of this year the ECB has started to scale back its bond-buying programme from EUR60 billion a month to EUR30 billion. The less expansionary monetary policies being pursued by both central banks have contributed to negative sentiment on the bond markets, particularly for government bonds. However, the impact on the European corporate bond market is being tempered somewhat by the fact that the ECB hardly reduced its purchases of European corporate bonds in January compared to November 2017. Moreover, the corporate results over 2017 published so far are fairly solid.

General Electric, one of the largest issuers of corporate bonds, surprised investors with two disappointing announcements. Firstly, the company announced that it needed to take a further USD15 billion in additional reserves in GE Capital and that, partly as a result of this, the subsidiary would cease paying dividends for the time being. In addition, US watchdog SEC has started two investigations into the company’s accounting methods. Bonds issued by General Electric performed worse than average in the wake of these news items. In the longer term, General Electric’s current A2/Stable and A/Stable ratings from Moody’s and S&P could come under pressure if the company implements a far-reaching reorganisation involving the sale of several of its operations.

The number of announced mergers and acquisitions remains very elevated and looks set to increase in the short term now that there is greater clarity on the US tax regime. In January, French pharmaceutical company Sanofi announced two acquisitions, namely a EUR9.1 billion bid for Bioverativ and a EUR3.3 billion bid for Ablynx. Beverages producer Bacardi revealed plans to take over tequila manufacturer Patron Spirits International for EUR4.2 billion. Bacardi’s acquisition could result in its Baa1 rating from Moody’s being downgraded by as many as three notches. Finally, coffee producer Keurig Green Mountain (a subsidiary of JAB Holdings) has announced a merger with US soft drinks manufacturer Dr. Pepper Snapple for EUR18.7 billion.

The supply of new bonds was EUR49 billion in January, and therefore about 8% down on January 2017. Non-financial sector institutions issued EUR24 billion in new bonds last month, while financial sector institutions issued EUR25 billion in new bonds.

Portfolio developments per 2018-01-31

During the month, the portfolio’s sensitivity to market trends varied between 107% and 114%. The portfolio therefore held a relatively slight overweight positioning in terms of market risk.

Our positioning in the telecom, industrial goods and oil & gas sectors performed relatively well in January. In contrast, our positioning in the banking, healthcare and food & beverage sectors contributed negatively to the return. Our liquidity position (in the shape of cash and government bonds) also contributed negatively.

At individual company level, there were positive contributions from the overweights in CaixaBank, Telecom Italia, Allianz and AT&T. In contrast, the underweights in Banco Santander and Axa and the overweights in short-term bonds issued by companies such as Glencore, Morgan Stanley and Christian Dior contributed negatively.

In January, the Fund participated in new bond issues by, among others, UBS, Lloyds Banking Group, Vonovia, Deutsche Bank, Westpac, Engie, Société Générale, Crédit Agricole Assurances, BPCE and Innogy.

Outlook
The lack of dispersion in the interest premiums that companies with wide-ranging levels of creditworthiness are having to pay remains a serious cause for concern. Although the corporate bond market in Europe will continue to be supported by the ECB’s CSPP programme for the time being, we have decided to adopt a more defensive positioning in the portfolio. Spreads tightened so sharply in January that they now stand at extremely tight levels from a historical perspective. Idiosyncratic risks are also growing at companies, given the high number of debt financed mergers and acquisitions and management teams that are increasingly considering breaking up their companies into smaller, less well-diversified entities.
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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Performance per 2018-01-31 (rebased)

No chart data available

Performance per 2018-01-31

Slide to see more
  Fund Benchmark
1 month -0.3 % -0.3 %
3 months -0.7 % -0.7 %
This year -0.3 % -0.3 %
2015 -0.0 % -0.7 %
2016 5.1 % 4.7 %
2017 2.4 % 2.4 %
3 years (on annual basis) i 2.0 % 1.7 %
5 years (on annual basis) i 4.1 % 3.5 %
Since inception (on annual basis) i 5.9 % 4.8 %
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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Maturity profile (2018-01-31)

Fund
Benchmark
27.8 %
5-7 years
0.0 %
25.7 %
0-3 years
0.0 %
18.7 %
7-10 years
0.0 %
13.8 %
> 10 years
0.0 %
13.0 %
3-5 years
0.0 %
0.9 %
Cash
0.0 %
0.0 %
0-3 year
23.0 %
0.0 %
3-5 year
27.5 %
0.0 %
5-7 year
20.4 %
0.0 %
7-10 year
20.4 %
0.0 %
> 10 year
8.7 %
Totaal
100 %
100 %

Sector allocation (2018-01-31)

34.0 %
Banks
18.0 %
Consumer Goods & Services
8.9 %
Utilities
6.5 %
Financial Services & Real estate
6.0 %
Telecom & Technology
5.7 %
Industry
5.6 %
Insurance
4.3 %
Energy
3.7 %
Basic Materials
2.3 %
Supranational
2.2 %
Health Care
1.5 %
Asset Backed Securities
1.0 %
Other
0.5 %
Sovereign bonds
Totaal
100 %
The cash position is included in ‘Other’.

Rating allocation (2018-01-31)

Fund
Benchmark
40.2 %
BBB
49.5 %
37.4 %
A
39.9 %
6.9 %
AA
10.0 %
6.6 %
AAA
0.6 %
4.5 %
Not Rated
0.0 %
3.5 %
BB
0.0 %
0.9 %
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 (2018-01-31)

1.0 %
1.375% Goldman Sachs 2017-24
0.9 %
1.500% ENIIM 2017-27
0.9 %
1.250% BG Energy Capital 2014-22
0.9 %
4.375% Intesa SanPaolo 2012-19
0.8 %
0.850% US Bancorp 2017-24
0.8 %
0.625% Landwirtsch.Rentenbank 2015-30
0.8 %
2.241% Allianz 2015-45
0.8 %
1.250% KFW 2016-36
0.8 %
0.875% ENGIE 2017-24
0.8 %
1.000% Credit Suisse 2016-23
Totaal
8.5 %
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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Ongoing charges

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Management fee i
0.32 %
Service fee i
0.10 %
Taxe d'abonnement i
0.05 %
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%; investors can request KCM for information about the thresholds that were applied in the past. 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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Share class details

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Share class
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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Kempen (Lux) Euro Credit Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

KCM Vision

Kempen Capital Management is an asset manager with a long-term investment approach. We strongly believe in engaged shareholdership that benefits all stakeholders. As a long-term responsible investor, we firmly believe that active ownership and shareholder engagement contribute to positive change across the board.

Our KCM wide approach to responsible investment

To put our vision into action we engage with our investment targets on a wide array of strategic, financial, environmental, social and governance (ESG) topics. Our long-term investment worldview paired with thorough analysis and an experienced and diverse ESG team allow us to use both voting and engagement as means to consistently encourage positive change. Through this process of constructive engagement, we are able to contribute to the development of principles and standards of corporate responsibility within companies 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., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.