- Kempen
- Kempen Lux Global Property Fund Class J
Kempen (Lux) Global Property Fund - Class J
Profile
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
Performance per 2021-03-31 (rebased)
Performance per 2021-03-31
Fund | Benchmark | |
---|---|---|
1 month | 6.8 % | 6.2 % |
3 months | 9.0 % | 10.1 % |
This year | 9.0 % | 10.1 % |
2018 | -2.0 % | -0.9 % |
2019 | 27.8 % | 24.2 % |
2020 | -18.4 % | -16.6 % |
1 year (on annual basis) | 21.2 % | 25.7 % |
3 years (on annual basis) i | 5.8 % | 6.7 % |
5 years (on annual basis) i | 3.7 % | 3.2 % |
Since inception (on annual basis) i | 7.2 % | 6.0 % |
Key figures
Total fund size | EUR 187.01 M 2021-03-31 |
Share class size | EUR 46.74 M 2021-03-31 |
Number of shares | 44,983 2021-03-31 |
Net Asset Value i | EUR 1,072.65 2021-04-16 |
Turnover rate | 215.53 % |
Morningstar rating â„¢ | |
Fund characteristics per 2021-03-31
Fund | Benchmark | |
---|---|---|
Number of holdings | 58 | 341 |
Dividend yield i | 3.07 % | 3.43 % |
Weighted average market capitalization i | EUR 10,909 M | EUR 14,316 M |
P/E ratio i | 32.65 | |
Active share i | 75.38 % |
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 2021-03-31
March was a very strong month for listed real estate around the globe. It is likely that encouraging vaccine and reopening news from the United States, the largest part of the benchmark representing 55%, has pulled the rest of the globe upwards. Average performance in the US based clusters in local currency was 4% over the month, mirroring the return of the benchmark, in local currency. Strength was broad based with all cluster around the globe being positive barring Hong Kong. In the US, sectors such as Logistics & Storage and Housing returned 6% and 7% respectively. These were sectors which had performed very well during the pandemic yet had underperformed for several months mainly through the initial vaccine news hype. We believe that with the gradual return to normality and societal re-openings, the stock market will return to pricing the fundamentals more accurately and volatility, whilst elevated, should subside a bit.
March also saw the conclusion of the full year earnings season. Surprises were few as management teams guided investors closely on many milestones since a year ago through the pandemic. We did see several companies showing confidence in the stability of their business model and reinstating guidance (e.g. logistics, regulated residential, MOB offices) and others shying away from too much detail as uncertainties still remain ahead (e.g. retail, free-market residential, offices, senior housing). There is a brewing consensus that the second half of the year will see a somewhat sharp acceleration in activity due to broader re-openings. SGlobally, there has been $2.9tn of savings which would have otherwise been spent if it wasn’t for the pandemic (with over half of that in the US alone). With the vaccination progress going admirably in the US, we can see this market power strongly fundamentally and lead the global developed markets recovery. Whilst this may provide much needed lifelines for re-financings for several “at-risk†business models it may only delay the inevitable structural trends at play. These we know all too well: e-commerce has accelerated tremendously, work-from-home (WFH) has and will to continue to impact the broader demand for office and causing for an increase in capital expenditures to re-fit offices of the future, theatres are broadly at threat from streaming platforms and data centers continuing to prosper due to an insatiable demand for data.
On the European Continent, in March CTP raised €948m (with the over-allotment) to help finance its development pipeline which involves strategically located land plots mainly in Czechia and Romania. This was a heavily oversubscribed issue which illustrates the continued interest for logistics properties into less traditional locations. We see the same in the US via STAG Industrial, and we see the same in Europe via the investment shift to the east where yields are higher, land is cheaper, yet demand is growing (but supply too, as it’s inexpensive to build). Part of this may be explained by the creation of the “new-silk-road†via Chinese major strategic investments in ports around Europe (including a large one in Greece). This would provide a less expensive alternative way to move goods to strong consumer markets and potentially one-day challenge some of the established, but also expensive major ports of Rotterdam, Antwerp and Hamburg. Many investors are beginning to accumulate logistics portfolio in traditionally cheaper, but strategically important locations such as Bulgaria, the Western Balkans, Romania and through the Czech Republic and beyond.
The 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 has 18 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.
ESG is of high importance to our investment process. March was a busy month on this front. We held best practices calls with Canadian REITs Allied Properties on sustainability and with Killam Apartment REIT on governance. Both meetings were very constructive with respect to the willingness of the companies to listen to our ESG policies and potentially implement several changes which would help them both with our valuation premium, but also with the wider investment community. On our side of the pond, we were vocal on rotations at the board of Castellum via sharing our views in a major Swedish financial daily newspaper. We also held awareness conversations with Fabege, the Stockholm real estate specialist, where we urged for the auditor to be rotated earlier than the mandatory required local requirement of twenty years. We also voiced minor concerns on the new appointments at the board of Fabege.
During March we made several changes to the portfolio. In the UK we have trimmed our positions in Grainger and Workspace after good intermediate stock performance and reinvested the proceeds back into a long-time former holding of ours, the self-storage specialist Safestore. In Japan we sold part of Mitsubishi Estate in favor of Mitsui Fudosan and a relative value gap opened up over the period. In Hong Kong we sold part of our Hysan Properties position into Swire Properties. We also sold our position Daiwa House REIT to reinvest into Japan Hotel and Nippon Prologis. In the US we upgraded the management score of Host Hotels due to the company’s ability to weather this pandemic from its superior strategy, the latest proof of which was its acquisition at low prices for an attractive asset in Austin. This upgrade caused us to sell part of our position in Apple Hospitality and reinvest into Host Hotels. In US Industrial & Storage we took advantage of the relative weakness in high-quality high barrier coastal market exposed urban logistics specialist Terreno by selling part of our Eastgroup position.
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 2021-03-31 (rebased)
Performance per 2021-03-31
Fund | Benchmark | |
---|---|---|
1 month | 6.8 % | 6.2 % |
3 months | 9.0 % | 10.1 % |
This year | 9.0 % | 10.1 % |
2018 | -2.0 % | -0.9 % |
2019 | 27.8 % | 24.2 % |
2020 | -18.4 % | -16.6 % |
1 year (on annual basis) | 21.2 % | 25.7 % |
3 years (on annual basis) i | 5.8 % | 6.7 % |
5 years (on annual basis) i | 3.7 % | 3.2 % |
Since inception (on annual basis) i | 7.2 % | 6.0 % |
Dividends
Distributing | Yes |
Last dividend | EUR 33.97 |
Ex-date last dividend | 2021-01-14 |
Dividend calendar |
Risk analysis (ex post) per 2021-03-31
3 years | Since inception | |
---|---|---|
Maximum drawdown i | -27.70 % | -27.70 % |
Tracking error i | 2.55 % | 2.16 % |
Information ratio i | -0.35 | 0.55 |
Beta i | 0.95 |
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 (2021-03-31)
Contribution i | Performance i | |
---|---|---|
Invitation Homes | 0.45 % | 13.38 % |
Avalonbay Communities | 0.38 % | 9.34 % |
Health Care Property | 0.30 % | 12.72 % |
Welltower | 0.30 % | 8.97 % |
Highwoods Properties | 0.29 % | 10.98 % |
Bottom 5 contribution (2021-03-31)
Contribution i | Performance i | |
---|---|---|
Hibernia Reit | -0.02 % | -1.95 % |
Hysan Development | -0.02 % | -2.24 % |
Apple Hospitality REIT | -0.02 % | -0.73 % |
Shurgard Self Storage Europe | -0.01 % | -0.92 % |
Warehouses De Pauw SCA | -0.01 % | -0.44 % |
Geographic allocation (2021-03-31)
Top 10 holdings (2021-03-31)
Sector allocation (2021-03-31)
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.
Ongoing charges
Management fee i | 0.700 % |
Service fee i | 0.20 % |
Taxe d'abonnement i | 0.01 % |
Expected ongoing charges i | 0,91 % |
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
Share class | J |
Investor type | Institutional |
Distributing | Yes |
Benchmark i | FTSE EPRA/NAREIT Developed Index |
Investment category | Real Estate |
Universum | Global real estate equities |
Inception date | 2015-11-12 |
Domicile | Luxembourg |
May be offered to professional investors only in | Finland, Germany, 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
Minimum subscription | Initial subscription: €50,000, additional subscriptions: €10,000 |
Listed | no |
Subscription/Redemption Frequency | Daily |
ISIN i | LU1127955455 |
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.
Factsheets
Annual Reports
Semi- Annual Reports
Key Investor Information
Sustainability related disclosures
Voting records
Formal documents other
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:
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ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.
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Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.
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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
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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.
Climate change
As a long-term investor, we believe climate change represents a systemic risk facing the economy, society and environment. We want to consider the risks and opportunities this presents to our investments in the coming decades. We have therefore set a long-term commitment (2050), a mid-term ambition (2030) and short-term objectives (2025).
- 2050 commitment: Net-zero investor.
- 2030 ambition: To align with a Paris Agreement pathway (listed and non-listed investments) and Dutch Klimaatakkoord.
- 2025 objectives: To align with a pathway towards achieving the Paris Agreement (listed investments) and Dutch Klimaatakkoord goals.[1]
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The Kempen climate change policy can be found here (under climate change policy).
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[1]We use carbon intensity as a metric to come to the pathway of net-zero emissions. As we care about the direction of travel and reduction of carbon emissions in the economy, it might be that the actual reducing trend may deviate from the suggested average trend line. The pathway is derived from the pathway of the EU Benchmarks.
OUR FUND APPROACH TO RESPONSIBLE INVESTMENT
At Kempen, we manage several funds and mandates invested in listed Real Estate companies including the Global Property Fund[2] and the European Property Fund.
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We aim to align with a pathway towards achieving the Paris Agreement and Dutch Klimaatakkoord goals for our portfolio, as well as the EU Climate Transition Benchmark[3].
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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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[2]Kempen (Lux) Global Property Fund (the “Sub-Fundâ€) is a sub-fund of Kempen International Funds SICAV (the “Fundâ€), domiciled in Luxembourg.
[3]The EU Benchmarks consists of two climate benchmarks, Climate Transition Benchmark and Paris Aligned Benchmark, which have the aim to reach net-zero emissions by 2050 - in line with the 1.5?C scenarios from the IPCC. As we care about the direction of travel and reduction of carbon emissions in the economy, it might be that the actual reducing trend may deviate from the average pathway. We use carbon intensity (based on Revenues) as the forward looking climate metric.
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Exclusion & Avoidance
In line with the general Kempen policy, the 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:
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Implementing our ESG quality score into the company score of each Real Estate company we model;
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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. Our investment process rewards companies that integrate climate risks and opportunities into their organisation, and are able to move towards a low carbon economy;
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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;
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Entering into dialogue with companies we invest in, to improve their ESG policies and practices;
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Translating information of Real Estate company portfolios with lower sustainability scores into higher maintenance capex assumptions in our Kempen valuation models;
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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:
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Reducing CO2 intensity levels;
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Reducing energy and water consumption;
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Improving waste recycling;
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Improving working conditions and human rights;
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Improving governance structures;
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Improving shareholder alignment;
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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.
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 Partiesâ€), 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






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.