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

Performance per 2018-03-31 (rebased)

No chart data available

Performance per 2018-03-31

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  Fund Benchmark
1 month 0.1 % -0.1 %
3 months -0.3 % -0.4 %
This year -0.3 % -0.4 %
2015 -0.2 % -0.7 %
2016 4.7 % 4.7 %
2017 2.2 % 2.4 %
3 years (on annual basis) i 1.6 % 1.5 %
Since inception (on annual basis) i 2.2 % 2.1 %
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 190.63 M 2018-03-31
Number of shares
1,153,989 2018-03-31
Net Asset Value i
EUR 25.02 2018-04-19
Morningstar rating â„¢

Fund characteristics per 2018-03-31

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  Fund Benchmark
Number of holdings 249 2185
Duration i 5.3 5.2
Yield to maturity 1.1 % 1.2 %
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 2018-03-31

In March, the spread on the iBoxx Euro Corporate Index widened by 18 basis points to 107 basis points above the government bond curve. The index earned an absolute return of -0.12%. German 10-year government bond yields closed March at 0.49%, a drop of 16 basis points compared to the end of February.

The decrease in German 10-year government bond yields seems primarily to be driven by three developments. Firstly, equity markets declined after two major tech companies came under public pressure. President Trump has commented several times on what he sees as the undesirability of the commercial relationship between Amazon and the US postal service. At the same time, Facebook was embarrassed by a major data leak and suspected involvement in Russian interference in the 2016 US presidential election campaign. Tech companies - mainly those collectively known as FAANG equities, i.e. Facebook, Amazon, Apple, Netflix and Alphabet (Google) - were responsible for a significant portion of the gains in equity markets at the start of this year. The drop in their equity prices in March consequently had a negative impact on investor sentiment.

The second event that contributed to the fall in German bond yields was the publication of several economic indicators pointing to a slowdown in European growth. In spite of the fact that the PMIs for the industrial and service sectors remain well above 50 – and in doing so point to growth – indicators are slowly trending towards lower levels. Weaker economic growth in Europe would decrease the potential for a sharp rise in inflation and reduce the risk of a corresponding acceleration in monetary tightening by the ECB.

The third event that contributed to a more risk-averse attitude among investors was political uncertainty, mainly driven by staffing changes within the Trump administration. Gary Cohn, a former president and COO of Goldman Sachs, resigned as chief economic advisor to make way for television presenter Larry Kudlow. Next, Secretary of State Rex Tillerson was fired and John Bolton – a known supporter of military interventions – was appointed National Security Advisor. Combined with signs that President Trump wants to impose import tariffs in order to reduce the US trade deficit, these staffing changes again triggered concerns about the administration’s foreign policy.

In addition to general risk aversion among investors, outflow from the corporate bonds asset class was an important factor behind the widening of spreads in March. Continued bond-buying by the ECB – mainly in the primary market – failed to cancel out the negative sentiment on the credit market.

The supply of new bonds was EUR48 billion in March, about 50% up on February and more or less the same as a year earlier. Non-financial sector companies issued EUR29 billion in new bonds last month, while financial sector companies issued EUR19 billion in new bonds. A total of EUR129 billion in new bonds was issued in the first three months of the year, a decrease of about 4% compared to the same period last year.

Portfolio developments per 2018-03-31

During the month, the portfolio’s sensitivity to market trends varied between 93% and 97%. The portfolio therefore held a relatively slight underweight positioning in terms of market risk.

Our positioning in the auto, banking and ABS sectors performed relatively well in March. In contrast, our positioning in the telecom and oil & gas sectors made a small negative contribution to the return. Our liquidity position (in the shape of cash and government bonds) had a positive impact on the result.

At individual company level, positive contributions came from the overweights in Eurogrid, Enexis and ZF Friedrichshafen, as well as the underweights in Volkswagen (excluded), Daimler, AXA en Total (excluded). In contrast, the overweights in Orsted, Allianz and Credit Agricole contributed negatively.

In March, the Fund participated in new bond issues by e.g. Prologis, Chubb, Nationwide, SAP, Gecina, Richemont, Deutsche Boerse, Allied Irish Banks, Crédit Agricole and Sanofi.

Sanofi is viewed as one of the most advanced pharmaceutical companies when it comes to environmental, sustainable and governance (ESG) factors. This is primarily due to Sanofi’s robust risk management systems for monitoring quality, as well as combating corruption and bribery. Moreover, the company earns a significant portion of its revenue in emerging markets, as it has developed medicines specifically aimed at fighting diseases prevalent in tropical regions and Africa, such as malaria and tuberculosis.

Outlook
We will maintain our conservative positioning in spite of the significant widening of spreads in March. In the run-up to the publication of corporate results over the first quarter of 2018, we anticipate an above-average supply of new bonds, mainly issued by non-financial institutions. Taking into account the trend towards outflow from the corporate bond asset class, we expect this supply of new bonds to prompt a further widening of spreads.
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 2018-03-31 (rebased)

No chart data available

Performance per 2018-03-31

Slide to see more
  Fund Benchmark
1 month 0.1 % -0.1 %
3 months -0.3 % -0.4 %
This year -0.3 % -0.4 %
2015 -0.2 % -0.7 %
2016 4.7 % 4.7 %
2017 2.2 % 2.4 %
3 years (on annual basis) i 1.6 % 1.5 %
Since inception (on annual basis) i 2.2 % 2.1 %
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
2018-01-22
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 (2018-03-31)

Fund
Benchmark
24.1 %
5-7 years
0.0 %
23.7 %
0-3 years
0.0 %
22.0 %
7-10 years
0.0 %
14.9 %
> 10 years
0.0 %
13.6 %
3-5 years
0.0 %
1.7 %
Cash
0.0 %
0.0 %
0-3 year
23.9 %
0.0 %
3-5 year
27.0 %
0.0 %
5-7 year
21.0 %
0.0 %
7-10 year
19.8 %
0.0 %
> 10 year
8.3 %
Totaal
100 %
100 %

Sector allocation (2018-03-31)

32.1 %
Banks
14.3 %
Consumer Goods & Services
13.4 %
Utilities
7.2 %
Industry
6.6 %
Financial Services & Real estate
5.6 %
Telecom & Technology
5.4 %
Insurance
4.5 %
Energy
3.8 %
Health Care
2.4 %
Supranational
1.9 %
Basic Materials
1.6 %
Other
1.3 %
Asset Backed Securities
Totaal
100 %
The cash position is included in ‘Other’.

Rating allocation (2018-03-31)

Fund
Benchmark
43.5 %
BBB
49.9 %
35.0 %
A
40.0 %
8.2 %
AA
9.5 %
5.1 %
AAA
0.6 %
4.3 %
Not Rated
0.0 %
2.2 %
BB
0.0 %
1.7 %
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 (2018-03-31)

1.7 %
2.875% Statoil 2013-25
1.5 %
1.375% DS Smith 2017-24
1.5 %
1.500% Enexis 2015-23
1.4 %
3.875% Eurogrid 2010-20
1.1 %
1.000% OMV 2017-26
1.1 %
1.375% Terna 2017-27
1.1 %
1.375% FCA Bank Ireland 2015-20
1.0 %
0.500% Daimler 2016-19
1.0 %
0.625% JP Morgan Chase 2016-24
0.9 %
2.375% Priceline 2014-24
Totaal
12.3 %
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 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.