Kempen (Lux) Global Listed Infrastructure Fund - Class J-GBP

Profile

Kempen International Funds SICAV - Kempen (Lux) Global Listed Infrastructure Fund (the Fund) has the objective to offer Investors the opportunity to invest in an actively and professionally managed portfolio of listed infrastructure companies globally.

The Fund primarily aims to generate a return in excess of FTSE Global Core Infrastructure 50/50 (the “Benchmark”) in the long-term, comprising capital gains or losses plus net dividend.

Management team

Thomas van der Meij, Jags Walia

Performance per 2022-08-31 (rebased)

No chart data available

Performance per 2022-08-31

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  Fund Benchmark
1 month 3.7 % 3.0 %
3 months 5.3 % 7.9 %
This year 7.0 % 7.7 %
Since inception (on annual basis) i 7.0 % 7.7 %
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 151.81 M 2022-08-31
Share class size
GBP 1.77 M 2022-08-31
Number of shares
1,599 2022-08-31
Net Asset Value i
GBP 1,037.06 2022-10-04
Turnover rate
75.72 %

Fund characteristics per 2022-08-31

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  Fund Benchmark
Number of holdings 37 237
Dividend yield i 2.65 % 2.97 %
Weighted average market capitalization i EUR 47,544 M EUR 45,301 M
P/E ratio i 22.60
Active share i 54.26 %

Developments per 2022-08-31

Following the strong performance in July, the performance initially continued in August. However, the hawkish comments of FED chair Powell sent indices lower at the end of august. As a result, the MSCI World Index gave back 3% last month. The FTSE Global Core Infrastructure 50/50 index showed its more defensive nature again and was down only 0.4%. The performance was impacted by strong performance in Emerging Markets and flattish performance for US Utilities. The YTD performance of 12% for listed infrastructure (vs. -7% for the MSCI World Index) highlights the characteristics of the asset class - offering inflation protection and defensiveness.

The Fund was up more than 0.5% (net, I share class), ahead of the benchmark. The relative performance was mainly driven by our stock selection in Asia, Latam and US Pipelines.

On a stock level, the biggest positive contribution in June came from:
1) Rumo (+17%) which continued its strong performance of last month as it reported a good set of H1 results, while an optimistic outlook for 2022/23 grains crop was released by agencies;
2) Cheniere (+9%) as it reported a large 2Q22 EBITDA beat and increased its 2022 guidance significantly; and
3) West Japan Railway (+9%) was supported by decent Q1 results. The company saw passengers recovering quicker than expected (now back to 87% in July as % of pre-covid, whilst competitors that we do not own such as East JR are at 78%), and the company also explained costs had not gone up as fast as passengers had recovered.

The biggest negative contributions came from:
1) Cellnex (-11%) traded lower as it is correlated to rates despite decent H1 earnings;
2) Malaysia Airport (-5%) which did not report significant company news; and
3) CSX (-6%) which we added to the fund (and was funded by selling Union Pacific) for which we see value by resolving labor shortage among others.

The Kempen infrastructure investment strategy strikes a balance between qualitative, quantitative, sustainability analysis. Our experience and know-how in the area of infrastructure and legislation in combination with extensive data analysis, is converted into fact-based investment decision-making. Our unique valuation analysis and investment process focuses on the long term, carefully following megatrends such as digitization, urbanization and the energy transition. Next to the quantitative approach the investment strategy contains three equally weighted qualitative parameters that determine the warranted valuation: management added value, Infrastructure regulation / quality and ESG. The portfolio managers score each company covered on these three parameters. Companies that excel in ESG for example will be assigned a higher score and hence the warranted valuation for an investment increases.

Portfolio construction of the Strategy is based on cluster neutrality. This ensures a diversified portfolio and neutralizes currency and macro-economic exposure versus the benchmark.

Performance per 2022-08-31 (rebased)

No chart data available

Performance per 2022-08-31

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  Fund Benchmark
1 month 3.7 % 3.0 %
3 months 5.3 % 7.9 %
This year 7.0 % 7.7 %
Since inception (on annual basis) i 7.0 % 7.7 %
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
Yes
Last dividend
GBP 6.30
Ex-date last dividend
2022-07-15
Number of distributions per year
4
Dividend calendar

Top 5 contribution (2022-08-31)

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  Contribution i Performance i
Rumo 0.57 % 17.22 %
Cheniere Energy 0.31 % 8.83 %
Grupo Aeroportuario del Sureste 0.29 % 14.09 %
West Japan Railway 0.20 % 9.00 %
American Electric Power 0.17 % 3.89 %

Bottom 5 contribution (2022-08-31)

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  Contribution i Performance i
Cellnex Telecom -0.25 % -11.06 %
Transurban Group -0.24 % -4.19 %
American Tower Corp -0.22 % -4.69 %
National Grid -0.17 % -7.48 %
CSX Corp -0.15 % -5.53 %

Geographic allocation (2022-08-31)

57.9 %
United States
7.6 %
Australia
5.0 %
Spain
4.3 %
Canada
4.0 %
Brazil
3.8 %
Japan
3.8 %
Mexico
2.6 %
Cash
2.4 %
Italy
2.2 %
Malaysia
2.2 %
United Kingdom
2.2 %
France
1.9 %
Other
Total
100 %

Top 10 holdings (2022-08-31)

7.0 %
NextEra Energy
6.0 %
Transurban Group
4.6 %
American Tower Corp
4.4 %
American Electric Power
4.2 %
Sempra Energy
4.1 %
Southern Company
4.0 %
Cheniere Energy
4.0 %
Rumo
3.6 %
WEC Energy Group
3.5 %
Canadian Pacific Railway
Total
45.4 %

Sector allocation (2022-08-31)

45.8 %
Utilities
28.4 %
Industrial Goods & Services
9.4 %
Oil & Gas
7.2 %
Real Estate
2.4 %
Travel & Leisure
2.2 %
Construction & Materials
2.1 %
Telecommunications
2.6 %
Other
Total
100 %

Environmental and/or social characteristics promoted

The Kempen Global Listed Infrastructure Fund (the “Fund”) falls under the scope of article 8 of the SFDR which means that the Sub-Fund promotes environmental and/or social characteristics. By investing in infrastructure companies, clients benefit from exposure to a niche sector that offers predictable cash flows, inflation protection and diversification. The Fund believes that this asset class will enjoy secular growth, driven by digitalization, demographic changes and the energy transition.

The sector plays a key role in facilitating the global move towards a lower carbon eneRgy system (with Sustainable Development Goals Clean Energy (SDG 7) and Climate Action (SDG 13). The Fund therefore commits to the climate goals of the Paris Agreement and Dutch Climate Accord. This encompasses short-term (2025) objectives, a mid-term (2030) ambition and a long-term commitment to be net zero by 2050.

Fund carbon emission targets

ESG Investment process

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

In the investment process we assess the ESG profile of a company. We look at each company on a case-by-case basis, taking into account material risks in a given industry in combination with the company’s respective risk exposure, practices and disclosure. This includes an assessment of good governance practices. The investee companies are rated for governance aspects using external research as well as making internal assessments.Furthermore, we look into the company’s exposure to past controversies and future ESG opportunities. Based on the fundamental ESG analysis we form an opinion on the quality of a company’s ESG profile and award a score (1-5). We apply adequate due diligence measures when selecting the assets and such due diligence measures take into account sustainability risk and ESG related risks as it could help to enhance long-term risk adjusted returns for investors, in accordance with the investment objectives of the Fund.

Exclusion

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

Key figures

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

 

SWING FACTORS

An overview of the current swing factors are available here.

Ongoing charges

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Management fee i
0.700 %
Service fee i
0.20 %
Taxe d'abonnement i
0.01 %
Expected ongoing charges i
0.91%

Share class details

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Share class
J-GBP
Investor type
Institutional
Distributing
Yes
Benchmark i
FTSE Global Core Infrastructure 50/50 Index
Investment category
Infrastructure
Universum
Global equities
Inception date
2022-03-22
Domicile
Luxembourg
May be offered to professional investors only in
Luxembourg, United Kingdom
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
GBP
Administrator
BNP Paribas Securities Services S.C.A., Luxembourg branch
Management company
Kempen Capital Management N.V.
Depositary and custodian
BNP Paribas Securities Services S.C.A., Luxembourg branch

Tradability

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Minimum subscription
Initial subscription: GBP 50,000 additional subscriptions: GBP 10,000
Listed
no
ISIN i
LU1890811208