Kempen Lux Euro Sustainable Credit Fund - Class BN

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.

In the interest of the shareholders it has been decided to soft close the Fund as per 5 January 2016. As per June 2016 the Fund will continue to accept daily inflow below EUR 2 million from only existing investors. For investments greater than EUR 2 million please contact the Fund’s relationship manager. Redemptions will still be possible. More information about the soft close can be found in the Notice to shareholders in the tab Documents.

Management team

Alain van der Heijden, Rik den Hartog, Harold van Acht, Sipke Moes, Luuk Cummins, Pim van Mourik Broekman, Quirijn Landman, Marco Zanotto

Performance per 2018-07-31 (rebased)

No chart data available

Performance per 2018-07-31

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  Fund Benchmark
1 month 0.2 % 0.3 %
3 months 0.1 % -0.0 %
This year -0.2 % -0.4 %
2015 -0.2 % -0.7 %
2016 4.7 % 4.7 %
2017 2.2 % 2.4 %
1 year (on annual basis) 0.7 % 0.6 %
3 years (on annual basis) i 2.2 % 2.1 %
Since inception (on annual basis) i 2.1 % 1.9 %
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 193.58 M 2018-07-31
Share class size
EUR 44.57 M 2018-07-31
Number of shares
1,799,525 2018-07-31
Net Asset Value i
EUR 24.86 2018-08-17
Morningstar rating â„¢

Fund characteristics per 2018-07-31

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  Fund Benchmark
Number of holdings 232 2279
Duration i 5.2 5.1
Yield to maturity 1.2 % 1.3 %
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 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 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/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.

Market developments per 2018-07-31

In July, the spread on the iBoxx Euro Corporate Index tightened by 11 basis points to 125 basis points above the government bond curve. The index earned an absolute return of 0.28%. German 10-year government bond yields closed July at 0.44%, an increase of 14 basis points compared to the end of June.

The tightening of spreads in July was mainly driven by two factors. Firstly, corporate results over the second quarter were better than expected, especially for US companies. In addition to the recently implemented tax cuts, US companies continue to benefit from the solid economic growth in the most important regions of the world. However, pointing to the uncertain impact that protectionist measures and a potential hard Brexit could have on investments and trade, businesses are rather reluctant to extrapolate their recent performances in their guidance for the remainder of 2018.

The second factor that helped to tighten spreads was the limited number of corporate bonds issued in July, especially when account is taken of the number of redemptions during the month. When combined with lower outflows from the asset class, this led to larger cash positions at institutional investors. Given this increase in cash and underlying higher yields, insurance companies were actively buying longer-dated corporate bonds in July.

Spreads on subordinated bonds issued by financial institutions posted above-average performances in July. Bonds issued by Italian financial and non-financial companies also performed better than average.

The supply of new bonds was EUR29 billion in July, and therefore about 6% down on June and approximately 16% higher than a year earlier. Non-financial sector companies issued EUR12 billion in new bonds last month, while financial sector companies issued EUR17 billion in bonds. Bonds worth EUR262 billion were issued in the first seven months of this year, a drop of about 10% compared to the same period last year.

Portfolio developments per 2018-07-31

The Fund aims to avoid investments that act in breach with the VFI Richtlijn Financieel Beheer Goede Doelen (VFI Directive Financial Management Charities). De VFI Directive consists of basic guidelines and additional guidelines. The basic guideline advises institutions to investigate investments on violations of among others human rights, corruption and protection of the environment. The additional guideline is developed for organisations that want to apply stricter sustainability criteria in the investment policy. This directive includes further exclusions of companies involved in for example nuclear power, alcohol, tobacco, laboratory animals, adult entertainment and genetic modification. Each quarter, the investment universe is screened for violation of the VFI Directive. This screening is conducted based on the MSCI ESG Research database.

During the month the portfolio’s sensitivity to market trends varied between 93% and 100%. The portfolio therefore held a slight underweight positioning in terms of market risk.

Our positioning in the telecom, insurance and personal householdgoods sectors performed relatively well in July. In contrast, our positioning in the utilities, auto and industrial goods sectors contributed negatively. Our liquidity position (in the shape of cash and government bonds) had a negative impact.

At individual company level, positive contributions came from the overweights in NN Group, Credit Agricole Assurances, JAB Holding and EP Infrastructure. In contrast, the overweights in CK Hutchison, and Eurogrid, as well as the underweights in Volkswagen (excluded), Generali and Total (excluded), contributed negatively.

In July the Fund participated in new bond issues by e.g. Vesteda, Citigroup, BFCM, ABN Amro and Euroclear Bank.

In July, the Fund also accrued a position in VFC, a US clothing company. Over the past few years, two of this company’s major brands, namely Timberland and The North Face, have made significant progress on working with certified suppliers of cotton and leather, but also on phasing out non-sustainable materials (including PFCs and PVC) in their manufacturing processes. Furthermore, the company has succeeded in cutting CO2 emissions. The experience gained by Timberland and The North Face in the field of sustainability is now being rolled out at other VFC brands, such as Vans.

Outlook
We will maintain our conservative positioning for the time being. This positioning reflects our concerns about the trend for de-allocation from the credits asset class, the further tapering of the ECB’s CSPP programme later this year and the higher idiosyncratic risks at companies.
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 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 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/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.

Performance per 2018-07-31 (rebased)

No chart data available

Performance per 2018-07-31

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  Fund Benchmark
1 month 0.2 % 0.3 %
3 months 0.1 % -0.0 %
This year -0.2 % -0.4 %
2015 -0.2 % -0.7 %
2016 4.7 % 4.7 %
2017 2.2 % 2.4 %
1 year (on annual basis) 0.7 % 0.6 %
3 years (on annual basis) i 2.2 % 2.1 %
Since inception (on annual basis) i 2.1 % 1.9 %
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 0.25
Ex-date last dividend
2018-07-23
Number of distributions per year
2
Dividend calendar
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 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 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/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.

Maturity profile (2018-07-31)

Fund
Benchmark
22.1 %
5-7 year
20.1 %
21.5 %
0-3 year
23.8 %
19.8 %
3-5 year
27.7 %
19.1 %
7-10 year
20.5 %
12.1 %
> 10 year
7.9 %
5.4 %
Cash
0.0 %
Totaal
100 %
100 %

Sector allocation (2018-07-31)

30.8 %
Banks
13.1 %
Utilities
12.9 %
Consumer Goods & Services
7.3 %
Telecom & Technology
7.2 %
Industry
6.2 %
Financial Services & Real estate
5.6 %
Other
4.9 %
Energy
4.5 %
Insurance
3.1 %
Health Care
2.4 %
Basic Materials
1.2 %
Asset Backed Securities
1.0 %
Supranational
Totaal
100 %
The cash position is included in ‘Other’.

Rating allocation (2018-07-31)

Fund
Benchmark
3.3 %
AAA
0.6 %
8.6 %
AA
10.3 %
34.1 %
A
40.5 %
41.5 %
BBB
48.7 %
2.9 %
BB
0.0 %
4.1 %
Not Rated
0.0 %
5.4 %
Cash
0.0 %
Totaal
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 (2018-07-31)

1.9 %
2.875% Equinor 2013-25
1.6 %
1.500% Enexis 2015-23
1.5 %
3.875% Eurogrid 2010-20
1.2 %
1.000% OMV 2017-26
1.1 %
0.500% Daimler 2016-19
1.1 %
0.625% JP Morgan Chase 2016-24
1.0 %
0.000% KFW 2016-21
1.0 %
2.375% Priceline 2014-24
1.0 %
0.625% Landwirtsch.Rentenbank 2015-30
1.0 %
1.375% DS Smith 2017-24
Totaal
12.5 %
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 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 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/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.

Ongoing charges

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Management fee i
0.32 %
Service fee i
0.15 %
Taxe d'abonnement i
0.05 %
Expected ongoing charges i
0,52 %

Other costs

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Upward swing factor i
0.20 %
Downward swing factor i
0.20 %
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%. As of 1 January 2018 the swing factor has been adjusted from 0.25%/0.25% to 0.20%/0.20%.
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 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 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/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.

Share class details

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Share class
BN i
Investor type
Private
Distributing
Yes
Benchmark i
Markit iBoxx Euro Corporates Index
Duration hedged
No
Investment category
Credits
Universum
European credits
Inception date
2014-09-25
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.
Morningstar rating â„¢

Tradability

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Minimum subscription
Initial subscription: €50,000, additional subscriptions: €10,000
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU0979490850
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 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 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/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.
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 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 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/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.

KCM Vision

Kempen Capital Management is an asset manager with a long-term investment approach. We strongly believe in engaged shareholdership that benefits all stakeholders. As a long-term responsible investor, we firmly believe that active ownership and shareholder engagement contribute to positive change across the board.

Our KCM wide approach to responsible investment

To put our vision into action we engage with our investment targets on a wide array of strategic, financial, environmental, social and governance (ESG) topics. Our long-term investment worldview paired with thorough analysis and an experienced and diverse ESG team allow us to use both voting and engagement as means to consistently encourage positive change. Through this process of constructive engagement, we are able to contribute to the development of principles and standards of corporate responsibility within companies that we invest in. Our full voting records are available here.

Our fund approach to Responsible Investment

The Kempen (Lux) Euro Sustainable Credit Fund has a more strict ESG process than other in-house credit funds. In addition to exclusion of companies that are on the general KCM exclusion list, it excludes companies that have violate the UN Global compact or the additional ethical guidelines, such as companies associated with nuclear energy, coal, alcohol, tobacco, adult entertainment and gambling. Furthermore, besides excluding companies associated with the production of controversial weapons, our definition includes any sort of military weapons.

An engagement approach is chosen for companies that are involved in GMO, factory farming, animal testing or if less than 5% of their revenue is derived from the production of fur or fur products.

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 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 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/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.