Kempen Lux Euro Sustainable Credit Fund - Class AN

Profile

Kempen International Funds SICAV - Kempen (Lux) Euro Sustainable Credit Fund (the Fund) invests primarily in credits that have an investment grade rating (of minimal BBB-) and are denominated in Euros. In addition, these companies must comply with strict sustainability criteria. 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.

 

          

Management team

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

Performance per 2021-06-30 (rebased)

No chart data available

Performance per 2021-06-30

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  Fund Benchmark
1 month 0.4 % 0.4 %
3 months 0.2 % 0.3 %
This year -0.6 % -0.5 %
2018 -0.4 % -0.8 %
2019 6.2 % 6.3 %
2020 3.6 % 2.7 %
1 year (on annual basis) 3.2 % 3.5 %
Since inception (on annual basis) i 3.1 % 2.7 %
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 1,030.43 M 2021-06-30
Share class size
EUR 2.17 M 2021-06-30
Number of shares
79,819 2021-06-30
Net Asset Value i
EUR 27.48 2021-07-23
Turnover rate
227.38 %
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 2021-06-30

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  Fund Benchmark
Number of holdings 290 3225
Duration i 5.4 5.3
Yield to maturity 0.5 %
Weighted rating A- BBB+
Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Developments per 2021-06-30

In June, the iBoxx Euro Corporates index tightened by 5 basis points to a level of 63 basis points over the swap curve. This is equivalent to 83 basis points over the government bond curve. The index earned a total return of +0.43%. German 10-year government bond yields closed June at -0.21%, representing an decrease of 2 basis point compared to the end of May.

June was a relatively quiet month for credit markets. Even quarter end did not produce a meaningful pick up in volatility. Summer started early it seems. However, underneath the calm facade a lot happened during the month. Especially the increase in COVID infections due to the spread of the delta variant started to impact parts of the market at the end of the month. Also there are growing concerns about the recovery in the second half, but this has in turn reduced fears of an imminent withdrawal of monetary stimulus. Furthermore, the inflation debate is continuing but so far the market seems to believe the FEDs line that current high inflation rates are transitory and will come down later in the year.

All these sometimes contradictory views on the future kept spread volatility in the credit space relatively limited to approximately 5 bps from the high to the low. Bund yields on the other hand, initially declined by almost 9 bps to -0.27% after increasing again to -0.16% for a high to low volatility of over 10 bps. The rate closed the month at -0.21%, 2 bps lower than at the start of the month.

Economic data throughout the month remained strong in the US and Europe while they are weakening in Emerging Markets. Several developments are causing the slowing visible in Emerging Markets. First of all China is actively tightening financial conditions with the aim to increase economic stability. Also the lock down relaxations implemented in Europe and North America are causing a consumption shift from products to services which is not helping export depended economies.

The ECB left the Eurozone’s headline interest rate unchanged at 0% in June, in line with expectations. Also the PEPP buying pace was kept at a similar pace. Among council members it is clear that the discussion around the PEPP is increasing, with amongst others the president of the Dutch Central Bank repeating that the PEPP will for certain stop in March 2022. Also the ECB is sounding a bit more optimistic that its inflation targets will be reached in the not too distant future. May Eurozone core CPI was revised upwards to 1% from 0.9% earlier. Still some way of from the target but given that May saw only a limited amount of COVID relaxations the reading was encouraging.

US inflation data came in higher than expected increasing by 5% YoY in May (CPI). Also the less volatile CPI ex food and energy came in higher than expected at 3.8%. However this did not have an impact on interest rates as the market for now seems to believe in the transitory nature of the inflation data.

Other economic data from the US showed an economy that is registering healthy growth but also that the peak of the growth increase has passed. Most sentiment indicators are still coming in at healthy levels but lower than in the March – April period.

In the US, yields on 10 year US Treasuries declined almost 13 basis points to 1.47%. This move puzzled many market observers as above mentioned inflation readings were higher than expected. Various explanations were posted. The US Treasury’s decision to run down its FED general account which helped technicals in the government bond market seems to have been a factor that at least explains part of the move. Other than that the market is buying into the FED assertion that the run-up in inflation is transitory and will come down later in the year. This leaves relatively limited room for error in our opinion.

After hopeful figures and developments with regard to COVID infections in May, June initially continued in this trend. The delta variant however started to impact the data more and more later in the month and reality dawned that the virus is not done with us yet despite continued strong progress on the vaccination front.

At the end of June John Hopkins reported the number of global fatalities in excess of 3.9 million. Also around the end of the month, the amount of vaccine doses administered globally broke the 3 billion level, up from 2 billion the month before. In the US however, the vaccination pace slowed. The percentage of the population having received at least one shot increased from 50% of the population to 55% of the population during the month of June. In April and May this percentage climbed by 10 percentage points each in comparison. 47% of the US population is now fully vaccinated. In Europe, several countries are closing in on the US with regard to the level of vaccinations. According to data from Deutsche Bank, Belgium, The Netherlands, Spain, Portugal, Germany, Italy and Finland had a higher percentage of the population with at least one jab than the US at the start of July.

In the last week of June, an infrastructure deal was reached by President Biden and a bipartisan group of Senators. The bill includes approximately 579 billion US$ in new spending, and along with the renewal of existing funding the total spend will amount to 1.2 trillion over the next 8 years. The bill addresses a number of key areas in the Biden “American Jobs Plan”; namely greener public transportation, clean water, universal broadband etc. The current bill has no tax increases, but is instead financed by more stringent tax collection policies from the IRS and other measures increasing the likelihood that it will be passed in both houses of Congress.

In the credit market, the focus was mainly on primary, as the summer lull started early this year. The demand for credit remains strong however. The ECB continues to increase the pace of purchases, with €80.2 billion bought under the PEPP in June, in line with the €80 billion plus average in April and May and 30% higher than the average purchases from January to March. The ECB’s CSPP buying totalled €5.2 billion in June, roughly in line with the average amount bought per month YTD. The ECB now owns over €310 billion in corporate bonds.

Supply of corporate bonds in June amounted to €35.9 billion, with net supply at €17.5 billion. Sector wise Real Estate, Industrials & Chemicals and Utilities are dominating the year to date issuance with in total €37 billion, €30 billion and €43 billion, respectively, issued this year. From a net supply perspective it is again the Real Estate sector that has taken the lead with almost €25 billion YTD. Due to the ongoing strong demand for corporate bonds new issue premiums continue to be small to non-existent this year relative to this time last year when new issue premiums were strong. Many new issues have been priced on top of or even through their existing curves. Corporate hybrids' supply is up significantly to €24 billion year-to-date versus €17 billion last year. Many corporates continue to issue hybrids to support their ratings and to refinance maturing hybrids, profiting from the low rate and spread environment. Financial supply amounted to €22.5 billion in June, which is lower than June 2020 (€27.9 billion). Net supply at €59.4 billion YTD is higher than expected and points to clear front loading of issuance plans by banks so far this year. However due to strong deposit inflow and TLTRO money, issuance is only clearly net positive in subordinated paper and non-preferred senior paper. Senior preferred and covered bonds are experiencing relatively strong negative supply.
Overall corporate net supply totals €76.1 billion YTD and overall financials net supply totals €59.4 billion YTD. Of the corporate net supply, close to half has been absorbed by the ECB.

In June, health care and personal & household goods were the outperforming sectors. Relatively defensive sectors with on average longer duration bonds than the overall market.

During the month, the portfolio’s sensitivity to market trends varied between 101% and 106%. The portfolio therefore held an overweight positioning in terms of market risk. We did manage the beta back to the +3 to +4% area at the end of the month.

Our positioning in telecommunications, food & beverage and oil & gas performed relatively well in June. Our positioning in banks, technology and automobiles & parts had a small negative impact on performance.

At individual company level, positive contributions came from our overweight in Verizon Communications, Total Energies and Coca Cola. Also, our underweight in Vonovia contributed to outperformance, with spreads widening in anticipation of new supply to finance the Deutsche Wohnen acquisition. We also profited from the new issue premium offered on the new bonds. Negative contributions came from our overweight in Fraport and our underweight in Daimler.

In June the Fund participated in new deals from amongst others Nestlé, Vonovia, Gewobag, Bevlux, JD Peets and Repsol. On the banks side, we participated in De Volksbank, SEB, NatWest, Julius Baer and a lower tier two from Bayerische Landesbank. We continue to take a conservative approach towards participating in new issues as new issue premiums are limited and all in valuations are stretched. June is always a heavy new issuance month so despite participating in quite a few new placements, we passed on many others.

Outlook
We remain somewhat constructive on the market. Economic forecasts for the US and Europe have been revised upwards after recent data releases indicate that both regions had shown more resilience than expected. The market is however extremely sensitive to a potential overheating of the US economy, which may lead to a more restrictive monetary policy. Companies’ Q1 2021 results were very strong and so far expectations are high for Q2. We are also seeing initial signs of shareholder friendly behaviour, with quite a few companies increasing dividends or launching substantial share buyback programmes. With further tightening in spreads, valuations are looking expensive. The technical backdrop continues to remain robust with the ECB recently stepping up the pace of bond purchases and net supply remaining at a low level. It is however unlikely that the technical backdrop will improve further and more likely that the next Central Bank move will be to tighten conditions. All in all we have decided to slightly reduce our beta overweight position given these circumstances.

Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Performance per 2021-06-30 (rebased)

No chart data available

Performance per 2021-06-30

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  Fund Benchmark
1 month 0.4 % 0.4 %
3 months 0.2 % 0.3 %
This year -0.6 % -0.5 %
2018 -0.4 % -0.8 %
2019 6.2 % 6.3 %
2020 3.6 % 2.7 %
1 year (on annual basis) 3.2 % 3.5 %
Since inception (on annual basis) i 3.1 % 2.7 %
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
No
Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Maturity profile (2021-06-30)

Fund
Benchmark
29.0 %
5-7 year
21.2 %
24.0 %
3-5 year
26.6 %
17.5 %
7-10 year
16.5 %
16.3 %
0-3 year
25.3 %
10.2 %
> 10 year
10.4 %
3.0 %
Cash
0.0 %
Total
100 %
100 %

Sector allocation (2021-06-30)

29.4 %
Banks
13.7 %
Consumer Goods & Services
11.1 %
Telecom & Technology
10.3 %
Utilities
9.2 %
Financial Services & Real estate
7.6 %
Industry
7.4 %
Health Care
4.0 %
Insurance
3.5 %
Other
3.0 %
Energy
0.9 %
Basic Materials
Total
100 %
The cash position is included in ‘Other’.

Rating allocation (2021-06-30)

Fund
Benchmark
7.0 %
AA
8.6 %
39.7 %
A
38.0 %
44.0 %
BBB
53.1 %
5.4 %
BB
0.0 %
1.0 %
Not Rated
0.0 %
3.0 %
Cash
0.0 %
0.0 %
AAA
0.3 %
Total
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 (2021-06-30)

1.7 %
0.250% Daimler 2019-23
1.4 %
2.125% BNP Paribas 2019-27
1.3 %
1.500% Enexis 2015-23
1.1 %
0.125% Toyota Motor Credit Corp 2021-27
1.0 %
0.010% UBS 2021-26
0.9 %
1.090% JP Morgan Chase 2019-27
0.9 %
0.010% NTT Finance 2021-25
0.9 %
0.000% Danone 2021-25
0.8 %
4.625% Veolia Environnement 2012-27
0.8 %
0.000% Apple 2019-25
Total
10.8 %
Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

 

SWING FACTORS

An overview of the current swing factors are available here.

Ongoing charges

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Management fee i
0.320 %
Service fee i
0.10 %
Taxe d'abonnement i
0.05 %
Expected ongoing charges i
0.47 %
Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Share class details

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Share class
AN i
Investor type
Private
Distributing
No
Benchmark i
Markit iBoxx Euro Corporates Index
Duration hedged
No
Investment category
Credits
Universum
European credits
Inception date
2018-09-20
Domicile
Luxembourg
May be offered to all investors in
Belgium, France, Luxembourg, The Netherlands, United Kingdom
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Management company
Kempen Capital Management N.V.
Depositary and custodian
J.P. Morgan Bank Luxembourg S.A.

Tradability

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Minimum subscription
Initial subscription €1
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU0979490777
Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.
Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Kempen's vision and mission

Kempen Capital Management is an asset manager that believes in stewardship and investment focusing on the long-term for the benefit of all stakeholders. Value creation is at the heart of the services we provide to our clients. We believe that being an engaged shareholder on environmental, social and governance (ESG) issues and retaining a long-term focus, is critical to helping our clients to preserve and create sustainable wealth that has positive real world impact and economic returns.

Kempen wide approach to responsible investment

We are committed to create sustainable alpha. The four pillars of our ESG-policy are:

  • ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.

  • Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.

  • Active ownership: Being responsible stewards of our clients’ capital and using our influence through engagement and voting to improve corporate behaviour on specific ESG issues and achieve positive change

  • Positive impact: Investing with an objective to achieve positive real world outcomes and impact, such as contributing to the UN Sustainable Development Goals.6

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To put our mission and vision into practice we engage with our investee companies on a wide array of strategic, financial, and ESG topics. As an active owner we use our influence to improve our investee companies’ ESG performance. This helps us address some of the most pressing and important sustainability issues facing business and the world. Our focus themes for engagement are: human rights, labour rights, climate change and governance.

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Through collaboration with other investors and industry think tanks we contribute to the development of principles and standards of corporate responsibility both at sector levels, as well as investee company level.

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Our full voting records are available here.

Climate change

As a long-term investor, we believe climate change represents a systemic risk facing the economy, society and environment. We want to consider the risks and opportunities this presents to our investments in the coming decades. We have therefore set a long-term commitment (2050), a mid-term ambition (2030) and short-term objectives (2025).

  • 2050 commitment: Net-zero investor.  Â
  • 2030 ambition: To align with a Paris Agreement pathway (listed and non-listed investments) and Dutch Klimaatakkoord.  Â
  • 2025 objectives: To align with a pathway towards achieving the Paris Agreement (listed investments) and Dutch Klimaatakkoord goals.[1]

The Kempen climate change policy can be found here (under climate change policy).

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[1]We use carbon intensity as a metric to come to the pathway of net-zero emissions. As we care about the direction of travel and reduction of carbon emissions in the economy, it might be that the actual reducing trend may deviate from the suggested average trend line. The pathway is derived from the pathway of the EU Benchmarks.

OUR FUND APPROACH TO RESPONSIBLE INVESTMENT

Kempen (Lux) Euro Sustainable Credit Fund primarily aims to generate a long-term return in excess of the Markit iBoxx Euro Corporates Index (the “Benchmark”), comprising capital growth and income, by investing in corporate bonds issued by companies which comply with strict sustainability criteria.

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We aim to align with a pathway towards achieving the Paris Agreement and Dutch Klimaatakkoord goals for our portfolio, as well as the EU Climate Transition Benchmark[2].

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Kempen’s ESG policy is implemented in our fund’s investment process by the following pillars: Exclusion, Integration and Active ownership.

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[2] The EU Benchmarks consists of two climate benchmarks, Climate Transition Benchmark and Paris Aligned Benchmark, which have the aim to reach net-zero emissions by 2050 - in line with the 1.5?C scenarios from the IPCC. As we care about the direction of travel and reduction of carbon emissions in the economy, it might be that the actual reducing trend may deviate from the average pathway. We use carbon intensity (based on Revenues) as the forward looking climate metric.

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Exclusion & Avoidance

In line with the general Kempen policy, the Kempen (Lux) Euro Sustainable Credit Fund excludes all companies on the KCM Exclusion- or Avoidance list.

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Companies that ‘Fail’ marked against the criteria of the United Nations Global Compact or those companies that attract a red flag on the MSCI ESG impact monitor are excluded.

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Companies scoring an MSCI ESG rating CCC are excluded. Companies that score a MSCI ESG rating of B are excluded on a comply or explain basis.

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The Kempen (Lux) Euro Sustainable Credit Fund also excludes companies based on additional sustainability criteria as listed in the table below.

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More information on our exclusion criteria and thresholds can be found here.

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EXCLUSION CRITERIA FOR KEMPEN SUSTAINABLE GLOBAL HIGH DIVIDEND FUND

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KEMPEN CRITERIA

ADDITIONAL SUSTAINABILITY CRITERIA

Corporate conduct

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x     Human rights

V

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x     Labour rights

V

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x     Environment

V

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x     Anti-corruption

V

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Product involvement

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x     Controversial weapons

V

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x     Tobacco

V

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x     Thermal Coal

V

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x     Tar Sands

V

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x     Adult Entertainment

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V

x     Alcohol

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V

x     Animal welfare & GMO

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V

x     Gambling

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V

x     Nuclear power

       generation

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V

x     Carbon-intensive

       power generation

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V

x     (Un)conventional

       oil & gas extraction

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V

x     Weaponry

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V

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ESG Integration

The assessment of companies’ ESG profiles is an integral part of our investment process. We assess 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.

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A low score on ESG criteria can result in the demand for an additional premium on the company’s bonds and/or initiation of an engagement with the issuer. If ESG risks are deemed too severe, an investment in the company will be avoided and/or existing holdings will be sold.

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On a quarterly basis, the Kempen Responsible Investment team screens the holdings of the Kempen Euro Credit Strategies, and discusses the findings with the portfolio managers.

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Active Ownership

As active investors we perform comprehensive engagements with our portfolio companies with the objective to unlock value and reduce risk.

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Our engagement process defines clear objectives of which the progress and result is tracked and well documented. If at any stage the company refuses to cooperate, divestment has to be considered.

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Engagement examples can be found here

Risks

For more information about the mid and long term risks associated with the investments:

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* Although Kempen Capital Management N.V.’s information providers, including without limitation, MSCI ESG Research LLC and its affiliates (the “ESG Parties”), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of any data herein. None of the ESG Parties makes any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

ESG Report
Febelfin
Label ISR
Screening MSCI ESG Research
Screening MSCI ESG Research
UN global impact
Bron en
disclaimer en
Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.