Kempen (Lux) Global Property Fund Class I - GBP

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, Robert Stenger, Mihail Tonchev

Performance per 2021-10-31 (rebased)

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Performance per 2021-10-31

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  Fund Benchmark
1 month 3.5 % 4.2 %
3 months 1.1 % 2.6 %
This year 20.5 % 21.0 %
2018 -0.7 % 0.2 %
2019 20.8 % 17.2 %
2020 -13.8 % -11.8 %
1 year (on annual basis) 30.3 % 34.1 %
3 years (on annual basis) i 6.7 % 7.1 %
5 years (on annual basis) i 5.7 % 4.9 %
Since inception (on annual basis) i 10.3 % 9.0 %
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.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 256.19 M 2021-10-31
Share class size
GBP 0.11 M 2021-10-31
Number of shares
89 2021-10-31
Net Asset Value i
GBP 1,240.04 2021-11-30
Turnover rate
215.53 %
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 2021-10-31

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  Fund Benchmark
Number of holdings 52 375
Dividend yield i 2.98 % 3.00 %
Weighted average market capitalization i EUR 16,660 M EUR 20,240 M
P/E ratio i 30.04
Active share i 69.23 %
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). 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 of the Fund are available at the registered office of the Fund located at 60, avenue J.F. Kennedy, L-1855, Luxembourg 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.

Developments per 2021-10-31

The Fund posted a strong positive return in October but underperformed the benchmark. There were no particularly large outliers that either added to or detracted from performance. However, the UK and the US Triple Net Lease clusters saw some weakness as in the former our overweight positions of London based flexible working solutions landlord Workspace and residential landlord Grainger lagged a little bit behind general strength coming out of the UK with society having been largely reopened. In the US Triple Net Lease cluster we saw our overweight positions in diversified landlord WP Carey and heavily discounted experiential real estate landlord EPR Properties also mildly lag due to the catch up effect in other peers’ before earnings. As earnings have been trickling in we have seen our positions return to outperformance in both clusters at the beginning of November. On the positive side, US Healthcare outperformed over the month with our overweight position in medical office buildings “MOB’s” Physician Realty Trust returning 11% over the month vs. 3% for the cluster. This was based on a high quality MOB portfolio acquisition and a post deal credit rating affirmation. We find the valuation still discounted for this high quality and growing portfolio, diversified tenant base and a capable and transparent management team.

October was a strong positive month for Global Real estate markets returning 6% in local currency. The strength was, in our view, due to a combination of accelerating societal reopening in most major markets as well as a rebound effect from the Evergrande debt concerns in September that led to broader based weakness across markets.

Naturally, we saw strength in the more leveraged clusters such as the Nordics which returned 14% over the month with strong rebounds in highly levered large benchmark names such as SBB I Norden and Balder. Additionally, the US Logistics and Storage cluster returned an impressive 12% over the month as the self-storage companies returned 16% and the logistics companies returning slightly less. This was on the back of exceptionally strong results from the likes of blue chip industry leaders Prologis. The company increased its 2021 US market rent forecast by 700bps to 19%, the highest ever in its history. Contractual rent bumps in leases also increased to a midpoint of 3.5% (from 2.5% previously) and the company mentioned that numerous supply chain issues isn’t impacting warehouse demand, if anything they are accelerating it as tenants rush to ensure having enough logistics space to deal with growth.

Aversely, European Residential, Australia and US Hotels took a breather over the month with flat performance. Hotels in general are coming off of strong summer activity based on the realization of pent up leisure demand. However, stock prices are on hold again as certain regions have increasing Covid cases and a reintroduction of certain measures can be debilitating on business travel which is what the third quarter is usually based on.

Self-storage companies in the US reported even stronger results than logistics with Extra Space having raised its same store NOI (Net-Operating-Income) guidance increased by 425bps to 18.75% for 2021 with continued acceleration expected in 2022 and 2023. This is driven by internal pricing power as occupancy levels of 97% are near full and rates will grow.

Earnings season also kicked off in the Nordics over the month drawing a picture of continued stability in most markets as well as value growth. By and large, leasing activity is returning as the number of asset tours has increased and many of the deals have been getting signed at non-discounted rents and limited tenant incentives. Supply or labor shortages have yet to hit this region as the Nordics have been generally very encouraging to migration from abroad to fill labor shortages. In addition, a competitive domestic birth-rate combines for a strong competitive position for this region to continue its growth path. The one variable here is the rising interest rates, particularly in Norway, where the upwards path has begun on the back of higher inflation from its energy price based consumer price basket.

Over the month, the battle for Norway intensified again with pan-Nordic landlord Balder announcing that they will be making a mandatory offer for all of Entra’s shares after recent share purchases pushed them over the 33.67% offer threshold. We suspect that fellow pan-Nordic aspiring peer Castellum (30.6% shareholder of Entra) will respond. We believe that both of these companies are racing neck to neck for being the undisputed “blue-chip” Nordic real estate proxy and that race has a clear objective of having Entra onboard. As Balder has four to six weeks to come up with the actual terms of the offer we believe that a price north of 220 NOK/share would be a starting point to get some sort of a board approval at Entra and perhaps to get Castellum to listen (who have a higher entry cost than Balder). This is because the operating fundamentals are very strong for Entra with returning market rental growth and leasing momentum for the standing investments and development portfolio all across Norway (with particular strength in Oslo and Bergen).

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 and has been so since 2011. During October we were very pleased to see progress on our engagement for climate policy improvements in one of Canada’s largest landlords, office specialist Allied Properties. This is a management team that we respect tremendously and their strong acumen has come through once again with the release of their 2021 sustainability report which has shown them implementing numerous of the practices that we wanted to see. Some of these include: committing to report to TCFD “Task-Force-on-Climate-Related-Financial-Disclosures”, implementing a CO2 reduction target, committing to GHG “Green-House-Gas” emitting net-zero developments and a few others. Whilst there is still a lot of room for improvement from here onwards, we reiterate that this is a journey and certain brave steps along the way can go a long way. These steps also do not go unnoticed in our valuation of the REIT.

During October we also held several constructive meetings regarding troubled German Real Estate company ADLER Group. The company is targeted by several short sellers that make accusations on related party transactions, accounting fraud and the hiding of the true financial position of ADLER Group. To understand the situation better we have been in contact with the ADLER Group CEO and also with a member of the Supervisory Board, in separate meetings. We continue the follow the situation on close footing and are not able and willing to choose any side yet. We do not own any ADLER Group shares despite seeing the company as attractively valued from a real estate perspective, however when we make adjustments for the very poor corporate governance and management track record we see the stock as a clear underweight.

During October we made several changes to the portfolio, largely due to stock price moves in advance of the earnings season. In the US Logistics and Storage cluster we continued trimming cold-storage landlord Americold after our earlier mentioned negative modeling assumption revisions for its ongoing supply chain issues. We have continued to reinvest the proceeds into high quality coastal markets logistics landlord Terreno Realty. In US Healthcare, after a while having been away from high quality life science landlord Alexandria, we have found relative value to sell part of blue-chip healthcare landlord Ventas and into the life sciences specialist. Worth mentioning is our return to enclosed malls via a rotation back into Simon Properties in the US Retail cluster ahead of earnings. We saw a clear value gap emerge that was overvaluing the knowingly more resilient strip centers and hence we financed the Simon purchase by trimming Regency Centers and Retail Properties of America (ahead of its delisting from the closing of the Kite Realty merger). In the Nordics cluster we rotated part of our Pandox position into Atrium Ljungberg before earnings as we see the latter’s fundamentals and quality improving materially on the back of its recent and upcoming developments in some of Stockholm’s most attractive sub-markets. In Canada, we trimmed our position of residential landlord CAP REIT and into H&R REIT. It was encouraging to see the latter come out with a strategic plan for extracting higher value from its current over-diversified business model which had trapped the stock at a perpetual discount.

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). 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 of the Fund are available at the registered office of the Fund located at 60, avenue J.F. Kennedy, L-1855, Luxembourg 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.

Performance per 2021-10-31 (rebased)

No chart data available

Performance per 2021-10-31

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  Fund Benchmark
1 month 3.5 % 4.2 %
3 months 1.1 % 2.6 %
This year 20.5 % 21.0 %
2018 -0.7 % 0.2 %
2019 20.8 % 17.2 %
2020 -13.8 % -11.8 %
1 year (on annual basis) 30.3 % 34.1 %
3 years (on annual basis) i 6.7 % 7.1 %
5 years (on annual basis) i 5.7 % 4.9 %
Since inception (on annual basis) i 10.3 % 9.0 %
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.

Dividends

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Distributing
No

Risk analysis (ex post) per 2021-10-31

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  3 years Since inception
Maximum drawdown i -26.01 % -26.01 %
Tracking error i 2.73 % 2.18 %
Information ratio i -0.15 0.59
Beta i 0.95
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). 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 of the Fund are available at the registered office of the Fund located at 60, avenue J.F. Kennedy, L-1855, Luxembourg 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.

Top 5 contribution (2021-10-31)

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  Contribution i Performance i
Rexford Industrial Realty 0.50 % 18.45 %
CubeSmart 0.38 % 13.68 %
Terreno Realty Corp 0.36 % 15.35 %
Prologis 0.34 % 15.66 %
Extra Space Storage 0.34 % 17.64 %

Bottom 5 contribution (2021-10-31)

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  Contribution i Performance i
Mitsui Fudosan -0.14 % -4.53 %
Orix Jreit -0.08 % -4.54 %
Keppel DC REIT -0.07 % -2.92 %
Omega Healthcare -0.04 % -1.87 %
Mitsubishi Estate -0.03 % -4.86 %

Geographic allocation (2021-10-31)

59.4 %
United States
9.7 %
Japan
4.9 %
Germany
4.5 %
Hong Kong
4.5 %
United Kingdom
4.0 %
Australia
2.9 %
Singapore
2.9 %
Nordics
2.6 %
Canada
1.6 %
Spain
1.1 %
Ireland
1.0 %
Other
0.9 %
Switzerland
Total
100 %
On basis of country of exchange of the investments. The cash position is included in ‘Other’.

Top 10 holdings (2021-10-31)

5.9 %
Equinix
4.2 %
Avalonbay Communities
3.8 %
Invitation Homes
3.5 %
Sun Communities
3.3 %
Vonovia SE
3.2 %
Rexford Industrial Realty
3.1 %
WP Carey
3.0 %
CubeSmart
2.9 %
Terreno Realty Corp
2.8 %
Vicinity Centres
Total
35.9 %

Sector allocation (2021-10-31)

23.2 %
Offices
23.0 %
Other
19.8 %
Industrials
18.0 %
Residential
16.0 %
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). 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 of the Fund are available at the registered office of the Fund located at 60, avenue J.F. Kennedy, L-1855, Luxembourg 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.

 

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 %
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). 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 of the Fund are available at the registered office of the Fund located at 60, avenue J.F. Kennedy, L-1855, Luxembourg 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.

Share class details

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Share class
I - GBP i
Investor type
Institutional
Distributing
No
Benchmark i
FTSE EPRA/NAREIT Developed Index
Investment category
Real Estate
Universum
Global real estate equities
Inception date
2018-10-30
Domicile
Luxembourg
May be offered to professional investors only in
Luxembourg, The Netherlands, 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 NV
Depositary and custodian
BNP Paribas Securities Services S.C.A., Luxembourg branch

Tradability

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Minimum subscription
Initial subscription £50,000, additional subscriptions £10,000
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU1894636262
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). 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 of the Fund are available at the registered office of the Fund located at 60, avenue J.F. Kennedy, L-1855, Luxembourg 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.
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). 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 of the Fund are available at the registered office of the Fund located at 60, avenue J.F. Kennedy, L-1855, Luxembourg 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.

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.

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-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), 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:

  • 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. Our investment process rewards companies that integrate climate risks and opportunities into their organisation, and are able to move towards a low carbon economy;

  • 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.

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 ...
Bron en
disclaimer en
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). 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 of the Fund are available at the registered office of the Fund located at 60, avenue J.F. Kennedy, L-1855, Luxembourg 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.