Kempen (Lux) Euro Government Fund - Class BN

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, Emma Weeder

Performance per 2018-05-31 (rebased)

No chart data available

Performance per 2018-05-31

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  Fund Benchmark
1 month -2.1 % -1.3 %
3 months -0.9 % -0.1 %
This year -1.1 % -0.2 %
2015 0.2 % 0.3 %
2016 3.6 % 4.0 %
2017 0.3 % -0.4 %
1 year (on annual basis) -0.6 % -0.1 %
3 years (on annual basis) i 0.6 % 0.8 %
5 years (on annual basis) i 2.0 % 2.7 %
Since inception (on annual basis) i 3.5 % 3.8 %
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 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 137.01 M 2018-05-31
Share class size
EUR 6.20 M 2018-05-31
Number of shares
104,163 2018-05-31
Net Asset Value i
EUR 60.07 2018-06-21
Morningstar rating â„¢

Fund characteristics per 2018-05-31

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  Fund Benchmark
Number of holdings 83 364
Duration i 6.8 7.5
Yield to maturity 1.1 % 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 2018-05-31

May was an unusual month. Italian politics dominated interest rate markets. Although the month got off to a relatively quiet start, it didn’t stay that way for long. At the start of the month, President Macri of Argentina could only see one way out in the wake of soaring interest rates and the collapse of the peso and that was to ask the IMF for assistance. The Turkish lira continued to weaken, forcing a sharp increase in interest rates there. At the end of the month, it was announced that US import tariffs would after all be imposed on steel and aluminium for the Eurozone, Canada and Mexico as of 1 June. China can also expect additional measures. All these events are significant, but in May they were completely overshadowed by the formation of a government in Italy.

Italy’s general election in March of this year was won by two populist parties: the Five Star Movement led by Luigi di Maio and the Lega led by Matteo Salvini. Although there are huge differences in their manifestos, they did ultimately initiate negotiations. This was the only remaining option for forming a government. Together they hold a small majority in parliament, as well as sharing criticism of Eurozone policies. Markets responded nervously to comments about the euro. Bond spreads widened in Italy and other peripheral EU countries followed this widening. The two parties finally agreed a governing manifesto that includes tax reforms to create two tax brackets of 15% and 20%, the scrapping of pension reforms, a minimum wage and a fierce anti-immigration policy but nothing on an exit from the Eurozone. These policies will create a higher budgetary deficit, but the parties seem more than willing to stand up to the EU on this. This increased uncertainty on the financial markets, which was later exacerbated when the parties absolutely insisted on Savona, an ‘anti-euro’ professor, as Minister of Finance. President Matarella felt the pressure from the markets and rejected the plan. Markets initially responded with relief, but this was of short duration. Market confidence deteriorated and volatility hit an interim high on Tuesday 29 May. On the bond market, trade in peripheral EU bonds and many credits ground to a complete halt. In Italy, the parties returned to the negotiating table and finally reached agreement. The new government will be headed by Guiseppe Conte, a law professor with no political experience, with Professor Giovanni Tria holding the portfolio for Economics and Finance. President Matarella approved the list of government ministers. This has restored some calm to the markets, but all the indications are that the turbulence is far from over.

In Spain, Prime Minister Rajoy was deposed by parliament following accusations of corruption within his party. He has been replaced by PSOE leader Pedro Sanchez. No structural changes in policy are anticipated thanks to the heterogeneous government and the small majority it holds in parliament. The euro is not up for discussion in these parties. Eurozone economic indicators published in the meantime were fairly positive. Manufacturing confidence and purchasing managers indices were up slightly again and consumer confidence remains strong.

Oil prices fell 2% in May, partly aided by the stronger US dollar; oil prices even rose slightly in euros. Inflation figures again pointed to a further increase in inflation in May. In Germany, year-on-year inflation stood as high as 2.2%. Purely based on economic indicators, as early as June the ECB could provide more information on how it intends to scale back its expansionary monetary policies. A reduction in 2018 from the current level of EUR30 billion per month until September 2018 to zero from January 2019 is still possible. However, the ECB is likely to postpone any decision until July in order to take the time to analyse the impact of the situation in Italy.

Portfolio developments per 2018-05-31

German 10-year bond yields decreased by 22 basis points (bps) in May. This was due to a flight to safety within the Eurozone. The swap rate decreased by 9 bps for this maturity. The entire yield curve followed suit, with the exception of 2-year yields which only declined by 7 bps in Germany and remained unchanged in swaps. Our underweight in the portfolio’s sensitivity to rates against the index contributed negatively to the relative performance. Inflation-linked bonds again performed slightly better thanks to the weaker euro and higher inflation figures.

The largest movement was in peripheral EU government bonds. German government bonds earned a return of 1.7% in May. Other core countries also yielded positive returns, but they were lower than those in Germany. Italian government bonds performed extremely poorly and lost 6.6% during the month. Spanish government bonds stood at -1.8%. The general euro index lost 1.3% on balance. Our positioning held a slight overweight in peripheral EU countries. We expected the sound economic data and continuation of the ECB’s bond-buying programme to support the differences in yields. However, even a slight overweight had a major impact and resulted in a sharply negative contribution to the relative return. During the month, we reduced the position in Italy and increased the underweight in France in order to protect the portfolio against extreme escalation, but the underweight in France yielded little compensation. The dramatic response to the political turmoil in Italy also demonstrates that the market consensus was excessively optimistic. Italy may now have a government, but the situation is far from stable. The differences in yield compared to Germany could remain relatively large; time is what is needed. The other peripheral EU countries in particular could well recover. For Italy we anticipate a smaller spread on short-term government bonds, while longer-term government bonds will require more time.

Government-related paper experienced a relatively poor month. In practice, these bonds are trading more or less in line with swap rates. As mentioned above, swap rates lagged well behind German yields and investors sought shelter in the safe haven of German government bonds in May. We expect the negative contribution from government-related paper to reverse relatively rapidly and also see opportunities in this sector.

The portfolio is positioned for higher bond yields and smaller differences in yields against Germany. The Italian political arena should now calm down somewhat and permit smaller spreads on government-related paper and peripheral EU government bonds. The sound economic data and gradual withdrawal of central banks continue to provide a boost for higher yields and the response to the political turmoil has been very extreme. For the time being, we will continue to closely monitor the political situation in the Eurozone and the impact of the reduction in 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 2018-05-31 (rebased)

No chart data available

Performance per 2018-05-31

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  Fund Benchmark
1 month -2.1 % -1.3 %
3 months -0.9 % -0.1 %
This year -1.1 % -0.2 %
2015 0.2 % 0.3 %
2016 3.6 % 4.0 %
2017 0.3 % -0.4 %
1 year (on annual basis) -0.6 % -0.1 %
3 years (on annual basis) i 0.6 % 0.8 %
5 years (on annual basis) i 2.0 % 2.7 %
Since inception (on annual basis) i 3.5 % 3.8 %
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 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 0.50
Ex-date last dividend
2018-01-22
Number of distributions per year
2
Dividend calendar
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 (2018-05-31)

Fund
Benchmark
30.1 %
> 10 year
29.4 %
22.2 %
3-5 year
17.7 %
16.1 %
5-7 year
13.2 %
16.1 %
0-3 year
20.5 %
15.4 %
7-10 year
19.2 %
0.1 %
Cash
0.0 %
Totaal
100 %
100 %

Top 10 holdings (2018-05-31)

5.1 %
2.375% Hypo Alpe-Adria 2012-23
4.9 %
0.350% Buoni Poliennali Del Tes 2016-21
3.8 %
1.450% Buoni Poliennali Del Tes 2015-22
3.4 %
2.750% Spanje 2014-24
3.3 %
4.800% Portugal 2010-20
2.6 %
1.050% Buoni Poliennali Del Tes 2014-19
2.4 %
3.875% Portugal 2014-30
2.4 %
4.125% Slovenië 2010-20
2.1 %
0.650% Buoni Poliennali Del Tes 2015-20
2.1 %
1.850% Italie 2017-24
Totaal
32.1 %

Geographic allocation (2018-05-31)

25.7 %
Italy
13.7 %
Spain
11.1 %
France
9.5 %
Austria
8.0 %
Germany
6.9 %
Portugal
6.2 %
Slovenia
5.2 %
Belgium
4.0 %
European M.C.F.
3.7 %
Netherlands
2.8 %
Ireland
2.7 %
Finland
0.4 %
Luxembourg
0.1 %
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 registeredwith 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
0.05 %
Expected ongoing charges i
0,32 %

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
BN i
Investor type
Private
Distributing
Yes
Benchmark i
Bank of America Merrill Lynch Euro Government Index
Duration hedged
No
Investment category
Government bonds
Universum
Government bonds in euro
Inception date
2013-05-02
Domicile
Luxembourg
May be offered to all investors in
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 €1,000
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU0910061380
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.

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.