Kempen (Lux) Euro Government Fund - Class I

Profile

Kempen International Funds SICAV – Kempen (Lux) Euro Government Fund (the Fund) is designed and managed to provide the cornerstone investment to a large variety of investment portfolios. The objective of this actively managed fund is both capital protection as well as a potential upside for the investor. The Fund invests in fixed income euro denominated securities issued by governments, and by government related entities of the countries included in the Euro Government Index. These countries are all members of the Eurozone with an investment grade rating.

The Sub-Fund may also invest in bonds guaranteed by public European bodies provided that these entities have an investment grade Rating. The Fund aims to achieve a better long-term total return than its benchmark, the Bank of America Merrill Lynch Euro Government Index (the benchmark).

Management team

Hans Kamminga, Kim Lubbers

Performance per 2018-12-31 (rebased)

No chart data available

Performance per 2018-12-31

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  Fund Benchmark
1 month 0.8 % 0.9 %
3 months 1.0 % 1.5 %
This year -0.0 % 1.0 %
2015 0.2 % 0.3 %
2016 3.7 % 4.0 %
2017 0.3 % -0.4 %
1 year (on annual basis) -0.0 % 1.0 %
3 years (on annual basis) i 1.3 % 1.5 %
5 years (on annual basis) i 2.6 % 3.2 %
Since inception (on annual basis) i 3.4 % 3.7 %
Before 1 August 2017 the Fund had a different name and investment policy: Kempen (Lux) Euro High Grade Government Fund and was allowed to only invest in bonds issued by Netherlands, Germany, Austria, France and Finland. On 28 February 2013, Kempen Euro High Grade Pool (KEHGP) was moved to Luxembourg and renamed Kempen (Lux) Euro High Grade Government Fund (the Fund). Up to 28 February 2013 the performance graph and performance table show the performance of KEHGP. Performance is shown after deduction of ongoing charges. 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 130.02 M 2018-12-31
Share class size
EUR 67.89 M 2018-12-31
Number of shares
50,889 2018-12-31
Net Asset Value i
EUR 1,336.67 2019-01-22
Morningstar rating â„¢

Fund characteristics per 2018-12-31

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  Fund Benchmark
Number of holdings 79 359
Duration i 6.6 7.6
Yield to maturity 1.0 % 0.8 %
Kempen (Lux) Euro Government 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 2018-12-31

December was a negative month for the riskier asset classes and the S&P experienced its worst month since February 2009. Yields fell sharply, with US 10-year government bond yields dropping by 30 basis points. This was chiefly prompted by fears of an economic slowdown. US economic indicators remained positive, but their counterparts in the Eurozone and China deteriorated. The purchasing manager indices (PMI) in the Eurozone were worse than expected; the combined PMI for the industrial and service sectors in France even dipped below 50 following the protests triggered by higher fuel prices. A level below 50 points to a decrease in economic activity. The industrial PMI in China also fell below 50.

Added to this is the persisting trade war between the US and China and the Brexit. The US and China have announced a temporary truce in their trade war, but the impact of the uncertainty surrounding trading restrictions will remain negative for the time being.

In spite of the falling equity markets and open criticism from Trump, the Fed raised interest rates by a further 25 basis points in December. The growth forecasts for next year were adjusted downwards, however, as was the dot plot. The market’s expectation that the US central bank would be more cautious, chiefly Powell’s remark that the reduction to the balance sheet would continue to occur on automatic pilot, triggered a further deterioration in sentiment. The market seems to view this as a policy error and is currently pricing in no further interest rate hikes for the Fed but instead a cut to interest rates in 2020. To further exacerbate things, the US Secretary of the Treasury, Mnuchin, called the six largest banks at the end of December to check that they hold sufficient levels of liquidity. His actions served only to increase the uncertainty.

Oil prices fell by a further 10% in December as the market remained sceptical as to whether OPEC’s plan to cut supplies by 1.2 million barrels a day will be effective. The uncertainty surrounding global growth is also having an effect, as this will have an impact on demand for oil.

December was a positive month for Italy though. The European Union and Italian government came closer together and Brussels ultimately approved an Italian budget deficit of 2.04% for 2019. Yet there was more going on at political level in the Eurozone than just Italy. Belgium’s prime minister resigned and the French government’s budget deficit looks likely to be substantially higher in 2019 as Macron is attempting to quash the ‘yellow vest’ protests by raising the minimum wage, among other measures.

Portfolio developments per 2018-12-31

In December, German 10-year government bond yields fell to a low of 0.23% for 2018 and closed the month at 0.24%, 7 basis points lower than at the end of November and 18 basis points lower than at the end of 2017. Our underweight in the portfolio’s sensitivity to interest rates versus the index contributed negatively to the relative performance.

Italian spreads tightened further this month, as the Italian government and the European Union reached agreement on the budget deficit for 2019. Spreads on Italian 10-year government bonds tightened by 40 basis points, closing the year 90 basis points wider than at the start. Spreads also tightened in other countries, with the exception of France and Belgium. We hold an overweight in Italy, Spain, Ireland, Slovenia and Portugal, which contributed positively to the performance. Our overweight in Belgium contributed negatively, while our underweight in France made a positive contribution.

The position in government-related paper accounted for a negative attribution, as it underperformed relative to German government bonds. Government-related paper has a strong correlation with swap spreads, the difference in yield between German government bonds and swaps in comparable maturities. The negative sentiment on risk-bearing investments caused swap yields to fall less sharply than safe government bonds, which led to wider swap spreads.

We added one green bond to the portfolio last month by participating in a bond issue by Eurofima. Eurofima will use the proceeds from the green bond for material used in electric vehicles.

The portfolio continues to be positioned for higher bond yields and tighter spreads versus Germany. There is now greater uncertainty surrounding the outlook for economic growth, but we believe that this has already been priced and that economic growth will ultimately continue. Withdrawing central banks will provide a boost for higher yields. For the next couple of months, our focus will continue to be on the political situation within the Eurozone and the impact of the end of the ECB’s bond-buying programme.
Kempen (Lux) Euro Government 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 2018-12-31 (rebased)

No chart data available

Performance per 2018-12-31

Slide to see more
  Fund Benchmark
1 month 0.8 % 0.9 %
3 months 1.0 % 1.5 %
This year -0.0 % 1.0 %
2015 0.2 % 0.3 %
2016 3.7 % 4.0 %
2017 0.3 % -0.4 %
1 year (on annual basis) -0.0 % 1.0 %
3 years (on annual basis) i 1.3 % 1.5 %
5 years (on annual basis) i 2.6 % 3.2 %
Since inception (on annual basis) i 3.4 % 3.7 %
Before 1 August 2017 the Fund had a different name and investment policy: Kempen (Lux) Euro High Grade Government Fund and was allowed to only invest in bonds issued by Netherlands, Germany, Austria, France and Finland. On 28 February 2013, Kempen Euro High Grade Pool (KEHGP) was moved to Luxembourg and renamed Kempen (Lux) Euro High Grade Government Fund (the Fund). Up to 28 February 2013 the performance graph and performance table show the performance of KEHGP. Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future.

Dividends

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Distributing
No
Kempen (Lux) Euro Government 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 (2018-12-31)

Fund
Benchmark
30.9 %
> 10 year
29.2 %
20.3 %
3-5 year
18.1 %
19.9 %
7-10 year
18.4 %
16.7 %
0-3 year
20.2 %
11.9 %
5-7 year
14.2 %
0.3 %
Cash
0.0 %
Totaal
100 %
100 %

Top 10 holdings (2018-12-31)

5.3 %
2.375% Hypo Alpe-Adria 2012-23
5.3 %
0.350% Buoni Poliennali Del Tes 2016-21
3.5 %
2.750% Spanje 2014-24
3.4 %
1.450% Buoni Poliennali Del Tes 2015-22
3.1 %
1.850% Italie 2017-24
2.8 %
4.800% Portugal 2010-20
2.4 %
1.850% Frankrijk I/L 2011-27
2.4 %
0.800% Belgie 2018-28
2.3 %
4.750% Italie 2013-28
2.3 %
2.200% Italie 2017-27
Totaal
32.8 %

Geographic allocation (2018-12-31)

25.8 %
Italy
14.5 %
Spain
10.7 %
France
8.3 %
Belgium
8.0 %
Austria
6.8 %
Portugal
5.7 %
European M.C.F.
5.1 %
Germany
5.0 %
Ireland
4.2 %
Netherlands
3.3 %
Slovenia
1.5 %
Luxembourg
0.8 %
Finland
0.3 %
Cash
Totaal
100 %
Kempen (Lux) Euro Government 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
0.20 %
Service fee i
0.07 %
Taxe d'abonnement i
0.01 %
Expected ongoing charges i
0.28 %

Other costs

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Upward swing factor i
0.05 %
Downward swing factor i
0.05 %
Kempen (Lux) Euro Government 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
I i
Investor type
Institutional
Distributing
No
Benchmark i
Bank of America Merrill Lynch Euro Government Index
Duration hedged
No
Investment category
Government bonds
Universum
Government bonds in euro
Inception date
2013-02-28
Domicile
Luxembourg
May be offered to professional investors only 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„¢

Tradability

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Minimum subscription
Initial subscription: €50,000, additional subscriptions: €10,000
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU0880055461
Kempen (Lux) Euro Government 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 Government 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 full voting records are available here.

Kempen (Lux) Euro Government 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.