Kempen Lux Euro High Yield Fund Class LR

Profile

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. Attention: it is envisaged that this share class will be closed for further subscriptions once the Fund (all share classes combined) reaches a size of € 150 million. The discounted management fee of 32bps will remain for a period of 3 years starting at the launch of the share class, to facilitate the initial growth of the Fund. After this period the Board of Directors will decide on the conditions and future of this share class.

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 0.2 % 0.1 %
3 months 0.1 % -0.2 %
This year 0.2 % 0.1 %
2017 2.3 % 1.6 %
Since inception (on annual basis) i 2.5 % 1.7 %
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 29.36 M 2018-01-31
Net Asset Value i
EUR 25.28 2018-02-16

Fund characteristics per 2018-01-31

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  Fund Benchmark
Number of holdings 115 540
Duration i 4.5 4.5
Yield to maturity 2.5 % 2.2 %
Kempen (Lux) Euro High Yield 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.

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 on the ML Q964 Index tightened by 9 basis points to 131 basis points above the swap curve. The index earned an absolute return of +0.12%. 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.

As of the end of January, four new bonds are to be added to the ML Q964 benchmark as a result of new issuance. These are a EUR400 million corporate hybrid bond issued by German real estate company AroundTown, two bonds issued by packaging company Crown Holdings for a total of EUR835 million and a EUR1 billion corporate hybrid bond issued by French utility company Engie.

At roughly EUR6 billion, the amount of bond issuance in January was similar to the amount in the same month last year. It is noticeable that this was chiefly concentrated in the B-CCC segment and less so in the BB segment in which the fund primarily operates. The technical factors for the High Yield market are also somewhat weaker than for Investment Grade, given that the former is facing outflows, in spite of the sound returns of the past few months.

Portfolio developments per 2018-01-31

During the month, the portfolio’s sensitivity to market trends varied between 107% and 111%. The portfolio therefore held an overweight positioning in terms of market risk.

Our positioning in the basic resources, telecom and banking sectors performed relatively well in January. In contrast, our positioning in the media, industrial goods and personal & household goods sectors contributed negatively. Our liquidity position also made a negative contribution.

At individual company level, there were positive contributions from the overweights in Metsä Board, CaixaBank Lower Tier 2, Schaeffler and Telecom Italia and the underweights in Ball and Tereos. Our overweight in Darling Ingredients and underweights in Fiat Chrysler and Salini Impreglio contributed negatively.

In January, the fund participated in new bond issues by Engie (corporate hybrid) and Société Générale.

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. In fundamental terms we continue to be constructive about our High Yield universe. The robust economic growth is yielding sound operating results and many companies continue to focus on strengthening their balance sheets.
Kempen (Lux) Euro High Yield 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.

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 0.2 % 0.1 %
3 months 0.1 % -0.2 %
This year 0.2 % 0.1 %
2017 2.3 % 1.6 %
Since inception (on annual basis) i 2.5 % 1.7 %
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 High Yield 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.

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
28.6 %
5-7 years
0.0 %
24.3 %
7-10 years
0.0 %
17.8 %
3-5 years
0.0 %
16.6 %
> 10 years
0.0 %
8.6 %
0-3 years
0.0 %
4.2 %
Cash
0.0 %
0.0 %
0-3 year
15.7 %
0.0 %
3-5 year
26.9 %
0.0 %
5-7 year
30.2 %
0.0 %
7-10 year
21.0 %
0.0 %
> 10 year
6.2 %
Totaal
100 %
100 %

Sector allocation (2018-01-31)

26.1 %
Consumer Goods & Services
19.0 %
Industry
11.1 %
Telecom & Technology
10.3 %
Banks
10.1 %
Basic Materials
6.3 %
Insurance
4.9 %
Financial Services & Real estate
4.7 %
Utilities
4.0 %
Health Care
2.9 %
Energy
0.5 %
Other
Totaal
100 %

Rating allocation (2018-01-31)

70.3 %
BB
18.8 %
BBB
4.4 %
A
4.2 %
Cash
1.7 %
Not Rated
0.7 %
B
Totaal
100 %

Top 10 holdings (2018-01-31)

2.6 %
3.125% Softbank Group 2017-25
2.5 %
3.750% IHO Verwaltungs 2016-26
2.1 %
3.125% Wind TRE 2017-25
2.1 %
3.250% New Areva 2013-20
1.7 %
4.750% Fiat Chrysler Finance 2014-21
1.5 %
3.250% Quintiles 2017-25
1.5 %
4.498% Casino Guichard Perrach 2014-24
1.5 %
4.750% Darling Global 2015-22
1.5 %
3.375% Levi Strauss 2017-27
1.5 %
6.250% Unitymedia Hessen 2013-29
Totaal
18.5 %
Kempen (Lux) Euro High Yield 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.

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
0.30 %
Downward swing factor i
0.30 %
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 22 September 2017 the swing factor has been adjusted from 0.40% to 0.30%.
Kempen (Lux) Euro High Yield 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.

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
LR
Investor type
Private
Distributing
No
Benchmark i
BofA Merrill Lynch Composite Index
Duration hedged
No
Investment category
Credits
Universum
Credits denominated in euro
Inception date
2017-07-31
Domicile
Luxembourg
May be offered to all investors in
Belgium, Luxembourg, 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.

Tradability

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Minimum subscription
Initial subscription: €1,000, additional subscriptions: €1
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU1626446964
Kempen (Lux) Euro High Yield 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.

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 High Yield 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.

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 High Yield 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.

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.