Kempen (Lux) Euro High Yield Fund Class BN


Kempen International Funds SICAV – Kempen (Lux) Euro High Yield Fund (the Fund) invests primarily in credits that do not have an investment grade rating (lower than BBB-) and are denominated in Euros. The Fund may deviate from the benchmark, the BofA Merrill Lynch Composite Index, which only includes financial instruments with a minimal rating of BB- (known as ‘High Yield’).

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 while investment risks are continuously monitored. Investments are selected on the basis of an extensive analysis of the terms and conditions of the bond issues. This shareclass of the Fund is not active yet, therefore historical performances are not available yet. The historical returns of the I class offer a reasonable insight into the historical returns of the Fund. Please not that the I class is 0.04% cheaper on an annual basis than the BN class and therefore the returns are slightly higher than the returns of the BN class.

Management team

Alain van der Heijden, Joost de Graaf, Bart aan den Toorn, Harold van Acht, Lizelle du Plessis, Kim Lubbers, Tetiana Kharlamova, Arif Bagasrawalla

Performance per 2022-05-31 (rebased)

No chart data available

Performance per 2022-05-31

Slide to see more
  Fund Benchmark
1 month -0.9 % -0.8 %
3 months -3.7 % -3.9 %
This year -7.9 % -8.1 %
2021 0.1 % 0.1 %
Since inception (on annual basis) i -7.8 % -8.0 %
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

Slide to see more
Total fund size
EUR 191.38 M 2022-05-31
Share class size
EUR 32.38 M 2022-05-31
Number of shares
1,404,625 2022-05-31
Net Asset Value i
EUR 21.70 2022-06-30
The turnover rate figure is per the end of the financial year of the fund and will be updated once a year.

Fund characteristics per 2022-06-30

Slide to see more
  Fund Benchmark
Number of holdings 162 757
Duration i 3.8 3.9
Yield to maturity 4.3 %
Weighted rating BB+ BB+

Developments per 2022-05-31

In May, the spread of the ICE BofA High Yield Composite Index (Q964) widened by 24 basis points to a level of 303 basis points over the swap curve. This is equivalent to 347 basis points over the government bond curve. The index earned a total return of -0.83%. German 10-year government bond yields closed May at +1.12%, representing an increase of 18 basis points compared to the end of April 2022.

The month of May started out with an eerily calm feel, probably helped by national holidays in various countries throughout Europe. Spreads moved sideways for a few days and US equity markets were broadly flattish as well. This lack of volatility however didn’t last long. At the end of the week, spreads started to march higher and equity markets weakened considerably. There was no clear event that caused this weakness. A steady drumbeat of small negatives impacted risk sentiment. The continued supply of inflation figures that surprised to the upside, the impact of the very strict lockdowns in various parts of China, signs that inflation was negatively impacting economic growth around the world and the headlines surrounding the war in Ukraine all had its effects. Credit spreads topped out at almost 333 bps which was 30 bps wider than the highs reached in March.

In week three, the much hoped for equity ‘bear market rally’ started which calmed credit markets in Europe and caused credit spreads to contract by about 27 bps from the highs.

On the macro data front, the US ISM manufacturing index weakened to 55.4 from the 57.1 level reached in April while an increase was expected. The number does however point to still steady economic expansion in the US. This was also confirmed by solid durable goods and factory orders. Meanwhile, inflation numbers again came in higher than expected but declined slightly from the peak reached in April. CPI came in at 8.3% YoY vs 8.5 in April and expectations of 8.1%. Core CPI came in at 6.2% YoY vs 6.5% in April and expectations of 6%. The labour market remained very tight in the US and the unemployment rate remained at the 3.6% level. Despite this, real average hourly earnings remain in negative territory due to the aforementioned high inflation.

In Europe, labour markets continued to tighten. UK unemployment fell to the lowest level since 1974, while eurozone unemployment is now the lowest on record. This supported an acceleration in wage growth in both economies, but with inflation very high, real wages remain negative here as well.

The inflation numbers have kept all eyes on the path forward by central banks. US and European markets are now pricing an aggressive rate hike cycle for the next 12-18 months. This is on top of the quantitative tightening that is about to start with central banks unwinding their balance sheets after years of providing massive stimulus to the markets via QE. So far central banks have kept underestimating the strength and stickiness of inflation around the world and are trying to catch up. Especially in Europe the comments regarding rate hikes keep getting ‘nearer’ every month. From initial comments that this would be a 2023 event, to signaling that the policy rate might be increased at the end of the year but would be kept in negative territory, to ‘we might end the year at 0% rate’ to discussions about a 50 bps hike soon to combat inflation.

Anyhow, markets are now divided in two camps. One that rate hikes will cool the economy to such an extent that central banks are bound to stop their hiking campaign at a comfortable level for markets to continue to provide attractive returns to investors. The other one is that inflation is so sticky that central banks have no choice other than to continue to hike aggressively regardless of the impact this will have on economic growth and especially equity markets. As ever the hope camp is still where the majority of the investors currently reside. We lean more toward the latter camp. High inflation is worse for societies in the longer run than temporarily high unemployment numbers and we sense that on average central bankers around the world have internalized this. We also note that unemployment levels are at multi decade lows in major economies around the world.

We started the month moderately underweight risk from a beta perspective and kept this position relatively steady during the month.

During May the market finally opened up for HY issuers and we saw €2.0billion of issuance in European currencies and no issuance in Yankees (ex-financials, including FRNs). Fixed coupon issuance in European currencies amounted to €1.3billion. YTD issuance volumes are down 75% vs 2021. Refinancing needs are relatively limited in European HY which has provided issuers the luxury to wait and see.

The wider European HY market saw €1.4billion of outflow in May according to JP Morgan. This brings YTD outflow to almost €7billion which is in excess of 10% of the asset class according to JP Morgan (AUM in funds and ETFs).

The portfolio delivered a return of -0.83% (gross). This was exactly in line with the benchmark return of –0.83%. During the month, the portfolio’s sensitivity to market trends varied between 94% and 97% in beta terms. Our conservative positioning didn’t add much to our relative performance despite the spread widening. A number of specific hybrid positions we held underperformed the rally we saw in that space. This was compensated via solid issuer selection in the corporate and subordinated financials space. At a sector level, both our positioning in infrastructure and real estate contributed negatively while auto’s, insurance and telecom contributed positively.

In May, the Fund participated in new deals from Elis and in a LT2 from Erste Bank. New issue activity in the High Yield space remains very low for now. New Issue Premiums (NIPs) are quite attractive as a result but could become even more attractive when real issuance volumes return.

Although credit spreads have widened quite a bit in May and are currently above the wides seen in March, we remain on the cautious side. We see more risks on the horizon, including a prolonged Russian invasion, uncertainty regarding European energy supply and security, weaker global growth, stubbornly high inflation and renewed Covid fears and associated lock downs in Asia. We are still moderately bearish and think spreads could move wider from here. The main reasons being, a weaker macro-economic environment, aggressive hiking by central banks and the start of QT globally. Q1 2022 company results were solid but we fear that higher rates and a potential recession in both Europe and the US over the next 18 months are not adequately reflected in earnings and profit guidance at present. Although spreads have backed up from all-time lows they are not yet high enough to fully compensate for the risks that we have identified. The technical situation does not help either with supply expected to increase from now on, with the ECB close to stop QE, issuers might want to use the opportunity to issue new deals before the summer period and after their Q1 earnings. For 2022, we expect spreads between rating categories to decompress. We are underweight the BB- segment as a result and have compensated this partly with an overweight position in IG rated subordinated paper. Lastly we are also underweight the longer end of the credit curve due to the expected impact of rising rates on longer dated maturities.

Performance per 2022-05-31 (rebased)

No chart data available

Performance per 2022-05-31

Slide to see more
  Fund Benchmark
1 month -0.9 % -0.8 %
3 months -3.7 % -3.9 %
This year -7.9 % -8.1 %
2021 0.1 % 0.1 %
Since inception (on annual basis) i -7.8 % -8.0 %
Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future.


Slide to see more
Number of distributions per year
Dividend calendar

Maturity profile (2022-06-30)

31.3 %
3-5 year
36.6 %
27.0 %
0-3 year
28.9 %
21.7 %
5-7 year
21.4 %
10.1 %
> 10 year
5.5 %
8.3 %
7-10 year
7.6 %
1.7 %
0.0 %
100 %
100 %

Sector allocation (2022-06-30)

31.3 %
Consumer Goods & Services
20.1 %
13.4 %
Telecom & Technology
8.9 %
7.4 %
4.6 %
Basic Materials
4.0 %
Health Care
2.8 %
2.8 %
2.4 %
Financial Services & Real estate
2.3 %
100 %

Rating allocation (2022-06-30)

0.2 %
3.8 %
19.1 %
69.3 %
3.8 %
2.1 %
Not Rated
1.7 %
100 %

Top 10 holdings (2022-06-30)

4.2 %
3.021% Ford Motor 2019-24
2.1 %
1.250% Cellnex Finance 2021-29
2.1 %
2.000% Nokia 2019-26
1.8 %
2.750% Faurecia 2021-27
1.7 %
3.875% LKQ Italia Bondco 2016-24
1.7 %
2.000% Volvo 2017-25
1.7 %
1.875% Autostrade per Italia 2015-25
1.7 %
0.000% Duitsland 2022-23
1.5 %
3.375% Crown Euro 2015-25
1.5 %
1.000% Cellnex Finance 2021-27
19.9 %

Environmental and/or social characteristics promoted

The Kempen Euro Credit Fund, Kempen Euro Credit Fund Plus and Kempen Euro High Yield Fund (the “Funds”) fall under the scope of article 8 of the SFDR which means that the Funds promote environmental and/or social characteristics. This Funds will invest in a broad range of companies, of which some will have sustainability objectives.

The Fund commits to the goals of the Paris Agreement. This encompasses short-term objectives (2025), a mid-term ambition (2030) and a long-term commitment to be a net zero investor by 2050. By 2025, we aim to be aligned with a path to achieving the Paris Agreement and Dutch Klimaatakkoord. We follow the market reduction, which assumes a pathway in line with the EU Benchmarks.

Fund carbon emission targets

ESG Investment process

The promotion of environmental and/or social characteristics is achieved through the consistent implementation of the Funds ESG policy. The ESG policy is fully implemented in our strategy’s investment process across the three relevant pillars of: Exclusion, ESG integration and Active ownership.

In the investment process we assess the ESG profile of a company. We look at each company on a case-by-case basis, taking into account material risks in a given industry in combination with the company’s respective risk exposure, practices and disclosure. This includes an assessment of good governance practices. The investee companies are rated for governance aspects using external research as well as making internal assessments. Furthermore, we look into the company’s exposure to past controversies and future ESG opportunities. Based on the fundamental ESG analysis we form an opinion on the quality of a company’s ESG profile.


The Fund applies exclusion criteria. These take into account international standards, such as UN Global Compact Framework, the OECD Guidelines for Multinational Enterprises, UN Guiding Principles for Business and Human Rights, and our Principles for Responsible Investment commitments. The Funds apply additional exclusion criteria based on product involvement and business conduct.

Key figures

  Kempen criteria Additional criteria
Business conduct
Human Rights
Anti Corruption
Product involvement
Controversial Weapons
Thermal Coal
Tar Sands
Adult Entertainment
Animal Welfare & GMO
Power Generation Nuclear
Power Generation Carbon Intensive
(Un)conventional Oil & Gas Extraction



An overview of the current swing factors are available here.

Ongoing charges

Slide to see more
Management fee i
0.520 %
Service fee i
0.10 %
Taxe d'abonnement i
0.05 %
Expected ongoing charges i

Share class details

Slide to see more
Share class
BN i
Investor type
Institutional & Private
Benchmark i
BofA Merrill Lynch Composite Index
Reference index i
BofA Merrill Lynch BB-B High Yield Constrained Index
Duration hedged
Investment category
Credits denominated in euro
Inception date
May be offered to all investors in
Luxembourg, The Netherlands, United Kingdom
UCITS status i
Open-end i
Base currency
Share class currency
Management company
Kempen Capital Management N.V.
Depositary and custodian
BNP Paribas Securities Services S.C.A., Luxembourg branch


Slide to see more
Minimum subscription
Initial Subscription: € 1
Subscription/Redemption Frequency