Kempen (Lux) Global Property Fund - Class AN

Profile

Kempen International Funds SICAV - Kempen (Lux) Global Property Fund (the Fund) has the objective to achieve strong relative investment results by investing in a concentrated portfolio of listed global property companies.

The Fund is managed on the basis of a bottom-up stock picking approach. The Fund's strategy is to exploit mispricings between the valuation of property companies in relation to the quality of their real estate portfolios, balance sheets, corporate governance and management capability to add value to the property portfolio.

 

Management team

Jorrit Arissen, Egbert Nijmeijer, Lucas Vuurmans, Anna Niegowska, Robert Stenger, Mihail Tonchev

Performance per 2020-10-31 (rebased)

No chart data available

Performance per 2020-10-31

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  Fund Benchmark
1 month -2.2 % -2.7 %
3 months -1.8 % -2.5 %
This year -25.1 % -25.2 %
2017 0.2 % -3.1 %
2018 -2.1 % -0.9 %
2019 27.9 % 24.2 %
1 year (on annual basis) -24.7 % -26.2 %
3 years (on annual basis) i -1.4 % -2.4 %
5 years (on annual basis) i 0.7 % -0.8 %
Since inception (on annual basis) i 4.6 % 2.9 %
Before 1 October 2014 the Fund had a different name and investment policy: Kempen (Lux) European Property Fund. The Fund also had a different ISIN code. As a result the performance before 1 October 2014 is not representative and will therefore not be shown. Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future. As of 30 June 2018 a deviating Net Asset Value (NAV) is used for the calculation of the performance figures. This NAV is calculated based on closing prices of the Fund investments thereby deviating from the NAV which was originally issued and partly calculated based on snapshots (Asia & Pacific investments). The deviating NAV is used to make a better comparison with the benchmark, which is also solely based on closing prices of the investments.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 156.14 M 2020-10-31
Share class size
EUR 5.79 M 2020-10-31
Number of shares
93,234 2020-10-31
Net Asset Value i
EUR 67.27 2020-12-01
Turnover rate
215.53 %
Morningstar rating â„¢
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 2020-10-31

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  Fund Benchmark
Number of holdings 50 340
Dividend yield i 3.92 % 4.70 %
Weighted average market capitalization i EUR 9,726 M EUR 12,997 M
P/E ratio i 25.66
Active share i 76.17 %
Kempen (Lux) Global Property 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).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. 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 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/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. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Developments per 2020-10-31

The Fund posted a negative return during October but outperformed the benchmark. Outperformance largely stemmed from the UK, European Offices and US Triple Net clusters. In the UK, our rotation into London fringe office tech-tenant friendly landlord Workspace paid off well as the stock traded up 15% over the month. Other London office more centrally located landlords overweight positions in Derwent London and Great Portland also performed well, a trend which began in September. In the European Offices cluster, our overweight in Irish high quality office player Hibernia REIT performed well returning 4% after a weak last few months based on concerns of US foreign direct investment (FDI) into Ireland and a potential negative Brexit effect on the Irish economy. October saw the dissipating of some of those overblown fears as we suspected and a subsequent catch-up effect was observed. Dublin is still one of or top ranking European office markets based on our proprietary data market ranking approach. In the US Triple Net cluster, we were aided by our largest overweight position in STAG Industrial, a regional industrial US player which is a clear beneficiary of compressing yield spreads between secondary and primary industrial properties and executing well on its acquisitions and lease-up strategy. Aversely, we experienced underperformance in the US Housing cluster as our overweight position in AvalonBay Communities underperformed on weakness experienced from its largely Gateway coastal located portfolio which is experiencing temporary difficulties and negative sentiment as demographics currently point towards strength in Sunbelt traditionally smaller (but still large enough) markets. Canada also underperformed as our overweight positions in Killam Apartments REIT had been dragged down unjustly, in our view, based on potential rent freeze discussions which were sparked by Ontario’s decision to freeze 2021 rents.

The month of October was negative for Global real estate with performance for the sector coming in at -3% in local currency for the month. Once again there was some dispersion between the various clusters as the US Logistics Storage Cluster returned 1% whereas the US Offices and the Nordics clusters returned -9%. Logistics have continued powering on across the global with the initial earnings already exceeding relatively high analyst expectations. With respect to US Offices, a disappointing earnings print by Boston Properties (double digit fall in same-store net-operating-income) took down the sector. The Nordics cluster’s fall over the month was in our view a reversal of its exceptional +20% return from September. This is a cluster with higher than average leverage levels (no REIT regime means less tax shield opportunities, and the Nordic attitude towards leverage is quite agnostic) therefore volatility has traditionally been higher and will likely continue to do so.

October marked the commencement of the third quarter of earnings. This is historically a low-activity period in a steady-state world. However, due to the pandemic, this earnings season is expected to be as eventful as the previous two quarters. Earnings kicked off mid-month led by the Nordics where region-wide office and logistics player Castellum reported very strong rent collections (high 90%) and stability in rents albeit a continuously shaky outlook for the rental trajectory and vacancy going forward as a result of the pandemic and Work-from-home (WFH) phenomenon. However, the real early highlights in this quarter’s earnings season had been the fundamentals in the logistics space. Castellum’s logistics portfolio is continuing to deliver growth with no signs of slowing. Kungsleden and Wihlborgs followed with similar messages of stability, high rent collection and good development progress. In the case of Wihlborgs, a highlight for the desirability of well-located industrial assets was showcased by Mileway’s (Blackstone) purchasing of a portion of Wihlborg’s Malmo logistics assets at a 33% premium to book value (but still north of an 8% yield) for a price of 1.43bn SEK. This can be seen as a read across for the strength of strategic and sometimes secondary logistics assets in the Nordics and beyond. Transactions like these have a direct impact on other competitor portfolios (Castellum and Catena). We have improved the long term growth assumptions in our models by 25 to 50 basis points (bps) for the aforementioned companies. We saw similar strong trends in the US with STAG Industrial’s ability to lease-up assets that were thought to be challenging in the past. Also, in Japan, Lasalle Logiport has reported strong re-leasing spreads of 7% which is exceptional in a Japanese context. Japanese REITs in the logistics space continue to command an attractive cost of capital and have continued opportunity to make accretive investments and drive per share growth both organically and via acquisitions.

In the US, offices have generated a lot of debate but little activity or transparency. However, over the month we saw the completion of San Francisco’s Transamerica Pyramid tower for $650m (Seller Aegon and BVK consortium as buyer). Whilst this deal is not without risk it is clear that certain assets and locations are beginning to attract investors who are willing to look through temporary yet sometimes deep operating fundamentals. A trend we saw expressed in a different way the previous month via KKR’s 5% strategic stake bought in London West-End office specialist Great Portland Estates. With respect to US office giant Boston Properties, after its Q3 report, we have been reducing our same-store net-operating-income (ss NOI) forecasts for 2020 to between -4% and -6% on the back of weaker than initially modelled parking revenue, hotel and retail revenue with major weakness for the time being largely away from their pure office assets.

In the UK, Shaftesbury announced a rights issue of c.£295m net proceeds at a large discount to NAV, a move that seem to be unfortunately timed and likely necessitated by demanding debt-holders at a time when footfall and operations in Soho, London have been very challenged. With rent collections of just under 50%, no management team wants to have liquidity-scared nervous debt-holders as debt is often said to be the “life-blood” of the real estate sector. Whilst the equity issue certainly improves the liquidity profile of the company, it is once again a move that showcases the level of dispensability of equity holders in difficult times such as these.

As the world continues to struggle in managing the global pandemic there have been further lockdown tightening measures introduced primarily in Europe (e.g. the Netherlands and France with the UK and the Nordics to follow suit shortly). By and large, the US and developed European nations have large enough budgets to partly help support those who have been forced out of work from government measures but this cannot go on forever. The largest impact is once again expected to be in the services sectors and particularly on the hotels sector (e.g. hotel owner and operator Pandox guiding towards more difficulty in Belgium, Germany and the UK) as well as physical retail. We suspect that by mid-to-end of next year many of the government subsidization programs of certain sectors of the economy will begin to taper off across the US and Europe and at that point we have to assess how the patient does without its morpheein. It is difficult to predict the macro-economic state of the global economy at this point in time, however our investment process and alpha are not really dependent on it. As a reminder, we employ an “alpha-by-control” method where we aim to neutralize macro-economic factors or political events (such as the hotly contested US election) hence our cluster neutral approach. We suspect that as volatility increases, it will continue to provide us with alpha opportunities and for our bottom-up data driven investment process to continue to shine.

aThe Kempen real estate investment strategy strikes the balance between qualitative and quantitative analysis. Through application of data-analysis technology our Real Estate Team collects over 20 million relevant data points for 200,000 real estate buildings around the globe, processing this quantitative data in our data infrastructure and turning it into valuable fundamental investment information. The continuous increase in available data helps us make better assessments of the quality, value and risk of each real estate investment. This leads to better investment decisions and results in higher investment returns at lower risk for our clients.
Next to the quantitative approach the investment strategy contains three key qualitative parameters that determine the warranted valuation: management added value, balance sheet strength 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. The Global portfolio had 19 clusters defined as homogeneous groups of real estate companies with similar underlying currency exposure. Examples are Australia, US Offices and Switzerland. The portfolio weight of each cluster is approximately equal to the cluster’s benchmark weight. This ensures a diversified portfolio and neutralizes currency and macro-economic exposure versus the benchmark. The Fund assigns its risk budget on the real estate portfolio level only. At the beginning of October, after much internal analysis, we decided to merge the European Shopping Centers cluster into the European Offices cluster into a newly named European Diversified cluster bringing our total clusters in the portfolio down to 18. The main driver behind this decision was the structurally declining liquidity and size of the European Shopping Centers cluster constituents. This meant that the cluster had evolved into having a very low benchmark weight in the Global index (<1% and declining). Whilst we had been covering 10 stocks in detail in the cluster we concluded that only 4 are truly tradeable for us. Four stocks are not enough for us to be able to find consistent alpha opportunities to deserve their own cluster, especially at such low benchmark weight and liquidity levels. The newly created European Diversified cluster is more appropriate as the European Offices cluster already included non-office stocks that did not have their own category (logistics, health-care, self-storage). Thus, adding European Shopping Centers into a newly created European Diversified cluster with around twenty constituents should allow us to continue to evaluate the true alpha opportunities in a more consistent relative basis going forward.

ESG is of high importance to our investment process. The month of October was moderately quiet for the team on the engagement front. On our ongoing engagement with Dutch, Belgian and French Shopping Center player Wereldhave we received a guidance that the poison pill will not be abandoned. This means that the company will be less attractive for a potential takeover. Our company score has remained unchanged as we had already penalized the company for the existence of this poison pill.

October was a month with some volatility and we made changes to the portfolio accordingly. In US Logistics and Storage, we have been trading out of CubeSmart and Public Storage into Extra Space Storage. In the European residential cluster we have continued trimming Vonovia and also began trimming TAG in favor of Kojamo as we believe that the Finnish residential player continues to be attractively priced given its recent underperformance. In the UK, we found some relative value differential between Derwent London and Great Portland and have traded between the two to take advantage of that. In the US Triple Net cluster have built a position in W.P. Carey, a diversified real estate landlord with exposure to the US and Europe with high exposure to industrial and necessity based retail assets. To finance this trade, we have exited our position in Realty Income entirely, which is an investment grade exposed, but still largely retail, US (and small UK) exposed landlord. In Japan, we have been selling out of Orix J-REIT into Daiwa House REIT recognizing the attractiveness of residential compared to offices based on our bottom up assumptions. We continue to focus on refining our models and continuously challenge our assumptions to better fine tune our valuation estimates across our universe.

Kempen (Lux) Global Property 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).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. 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 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/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. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Performance per 2020-10-31 (rebased)

No chart data available

Performance per 2020-10-31

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  Fund Benchmark
1 month -2.2 % -2.7 %
3 months -1.8 % -2.5 %
This year -25.1 % -25.2 %
2017 0.2 % -3.1 %
2018 -2.1 % -0.9 %
2019 27.9 % 24.2 %
1 year (on annual basis) -24.7 % -26.2 %
3 years (on annual basis) i -1.4 % -2.4 %
5 years (on annual basis) i 0.7 % -0.8 %
Since inception (on annual basis) i 4.6 % 2.9 %
Before 1 October 2014 the Fund had a different name and investment policy: Kempen (Lux) European Property Fund. The Fund also had a different ISIN code. As a result the performance before 1 October 2014 is not representative and will therefore not be shown. Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future. As of 30 June 2018 a deviating Net Asset Value (NAV) is used for the calculation of the performance figures. This NAV is calculated based on closing prices of the Fund investments thereby deviating from the NAV which was originally issued and partly calculated based on snapshots (Asia & Pacific investments). The deviating NAV is used to make a better comparison with the benchmark, which is also solely based on closing prices of the investments.

Dividends

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Distributing
No

Risk analysis (ex post) per 2020-10-31

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  3 years Since inception
Maximum drawdown i -27.71 % -27.71 %
Tracking error i 2.20 % 1.94 %
Information ratio i 0.47 0.90
Beta i 0.97 0.98
Kempen (Lux) Global Property 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).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. 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 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/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. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Top 5 contribution (2020-10-31)

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  Contribution i Performance i
Workspace 0.34 % 15.36 %
CubeSmart 0.18 % 5.72 %
Hysan Development 0.17 % 7.11 %
Rexford Industrial Realty 0.11 % 8.29 %
STAG Industrial 0.09 % 3.14 %

Bottom 5 contribution (2020-10-31)

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  Contribution i Performance i
Hudson Pacific Properties -0.29 % -11.59 %
Highwoods Properties -0.24 % -10.73 %
Avalonbay Communities -0.22 % -6.22 %
Daiwa House Residential -0.21 % -8.66 %
Killam Apartment Real Estate -0.15 % -6.63 %

Geographic allocation (2020-10-31)

53.3 %
United States
11.8 %
Japan
6.0 %
Hong Kong
5.0 %
United Kingdom
4.7 %
Nordics
3.6 %
Australia
3.6 %
Germany
3.4 %
Singapore
3.3 %
Belgium
2.5 %
Canada
1.4 %
Ireland
1.3 %
Switzerland
0.3 %
Other
Total
100 %
On basis of country of exchange of the investments. The cash position is included in ‘Other’.

Top 10 holdings (2020-10-31)

4.0 %
Mitsubishi Estate
3.9 %
Invitation Homes
3.7 %
Avalonbay Communities
3.7 %
Health Care Property
3.1 %
CubeSmart
2.9 %
STAG Industrial
2.9 %
Prologis
2.8 %
Daiwa House Residential
2.8 %
Healthcare Trust of America
2.7 %
Hysan Development
Total
32.5 %

Sector allocation (2020-10-31)

26.7 %
Industrials
24.2 %
Offices
21.1 %
Residential
16.9 %
Other
11.1 %
Retail
Total
100 %
On basis of 'look through' data. The cash position is not included.
Kempen (Lux) Global Property 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).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. 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 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/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. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

 

SWING FACTORS

An overview of the current swing factors are available here.

Ongoing charges

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Management fee i
0.75 %
Service fee i
0.20 %
Taxe d'abonnement i
0.05 %
Expected ongoing charges i
1 %
Kempen (Lux) Global Property 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).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. 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 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/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. 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
AN i
Investor type
Private
Distributing
No
Benchmark i
FTSE EPRA/NAREIT Developed Index
Investment category
Real Estate
Universum
Global real estate equities
Inception date
2013-11-26
Domicile
Luxembourg
May be offered to all investors in
Belgium, France, Luxembourg, Switzerland, The Netherlands, United Kingdom
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Management company
Kempen Capital Management NV
Depositary and custodian
J.P. Morgan Bank Luxembourg S.A.
Morningstar rating â„¢

Tradability

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Minimum subscription
Initial subscription €1
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU1114192054
Kempen (Lux) Global Property 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).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. 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 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/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. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Kempen (Lux) Global Property 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).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. 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 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/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. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Kempen's vision & 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.Â

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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.Â

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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.

OUR FUND APPROACH TO RESPONSIBLE INVESTMENT

At Kempen, we manage several funds and mandates invested in listed Real Estate companies including the Global Property Fund[1] and the European Property Fund.

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

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Exclusion & Avoidance

In line with the general Kempen policy, the Global Property Fund and the European Property Fund excludes all companies on the KCM Exclusion- or Avoidance list.

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Companies that ‘Fail’ or are on ‘Watchlist’ marked against the criteria of the United Nations Global Compact are excluded.

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ESG integration

We believe financial and sustainability returns are indivisible and that those companies that can find the right balance between all stakeholders will drive value. Our ESG analysis for listed real estate companies includes:

  • Implementing our ESG quality score into the company score of each Real Estate company we model;

  • Monitoring the global investment universe on Real Estate companies that exhibit negative excesses, such as environmental pollution measured by CO2 emission levels to initiate engagement;

  • Benchmarking Real Estate companies against each other and visualising these results for our investment process and our clients in order to identify leaders and laggards;

  • Entering into dialogue with companies we invest in, to improve their ESG policies and practices;

  • Translating information of Real Estate company portfolios with lower sustainability scores into higher maintenance capex assumptions in our Kempen valuation models;

  • Offering product customisation to our clients who (for example) want to invest in lower CO2 emission Real Estate portfolios only.

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In our investment framework there are three key aspects we look at in determining the warranted valuation: management value add, balance sheet and ESG. We are willing to pay up for those companies that excel in ESG. This believe is underpinned by academic literature.

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The figure 'How ESG is integrated in our investment process' shows how ESG is incorporated into the investment process. Note that we do not only invest in the ESG leaders but also in the laggards as the potential value to be unlocked by providing capital to those who need it the most is massive.

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Active ownership

As an active investor, the Real Estate funds also actively engage with companies on their strategic, financial and social responsibilities.

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Our engagements focus on those companies where we believe substantial value can be unlocked. Engagement can take place on a wide array of topics including:

  • Reducing CO2 intensity levels;

  • Reducing energy and water consumption;

  • Improving waste recycling;

  • Improving working conditions and human rights;

  • Improving governance structures;

  • Improving shareholder alignment;

  • Shifting remuneration policies from being linked to short term goals to long term targets

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You can find the engagement factsheet of Kojamo Oyj here.

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Our full ESG policy can be downloaded here.

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[1]Kempen (Lux) Global Property Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg.

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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
Screening MSCI ESG Research
Screening MSCI ESG Research
UN global impact
How ESG is integrated ...
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disclaimer
Kempen (Lux) Global Property 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).

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. 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 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/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. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.