Kempen (Lux) Global Property Fund - Class JX

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 2020-09-30 (rebased)

No chart data available

Performance per 2020-09-30

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  Fund Benchmark
1 month -0.9 % -1.2 %
3 months -2.0 % -2.2 %
This year 0.9 % -0.7 %
Since inception (on annual basis) i 0.9 % -0.7 %
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 172.73 M 2020-09-30
Share class size
EUR 29.63 M 2020-09-30
Number of shares
294,448 2020-09-30
Net Asset Value i
EUR 100.59 2020-10-22
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 2020-09-30

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  Fund Benchmark
Number of holdings 54 341
Dividend yield i 3.97 % 4.56 %
Weighted average market capitalization i EUR 10,194 M EUR 12,944 M
P/E ratio i 25.18
Active share i 74.46 %
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 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 2020-09-30

The Fund posted a negative return during September but outperformed the benchmark. Outperformance was largely attributed to the US Healthcare and US Logistics and Storage clusters. In the former, our position in Healthcare Realty Trust outperformed as Medical Office Buildings (MOBs) are seen as a relative safe haven in time of distress. The company upped its acquisition guidance at its Q2 results and is exhibiting strong rental collection rates and above inflation like-for-like net operating income growth rates. Aversely, underperforming clusters included Hong Kong where our overweight in Hang Lung properties weighted down on performance after what we believe to be a healthy reversal from earlier strong performance as Hang Lung benefited from the earlier China reopening (Hang Lung has c.50% exposure to China). As Hong Kong is re-opening form the end of the third wave of Covid the other more Hong Kong centric names have had minor relative claw backs of performance. Additionally the European Offices cluster dragged down performance as our overweight position in Hibernia exhibited temporary weakness in our opinion. The Dublin office market is still exhibiting attractive fundamentals despite worries of slowing foreign direct investments (FDI) from the US and potential trade barriers from the UK (due to Brexit). With a strong management team and a focused strategy, we believe that Hibernia offers attractive value still, despite headline risks (e.g. Google choosing not to go for its expansion for an extra 2000 staff). Ireland has an attractive tax regime, a competitive and skilled English speaking workforce and strong relationships with global tech giants, which continue to be the growth engines of the future.

The month of September was negative for global real estate with performance for the sector coming in at -2% in local currency for the month and essentially erasing its August gains. Once again there was some dispersion between the various clusters as the Nordics cluster was abnormally strong at +20%. There was a rush back into the sector after several months of persistent weakness. Additionally, company specific news such as share buybacks announced at Stockholm office specialist Fabege (up to 10% of its shares) and prime office and retail Stockholm and Gothenborg specialist Hufvudstaden (2% of its share count) caused investors to piggy back on management’s signal to the market of deep value in its shares. Furthermore, Kungsleden reinstated its dividend (a move we fully expected) which aided the stock to a 24% performance over the month. On the other hand, European shopping centres were again particularly weak returning -14% with Unibail-Rodamco-Westfield (URW) returning -20% after announcing a €9b reset plan. The aim is to increase flexibility in executing its long-term strategy and to strengthen the balance sheet. This news did not come as a surprise as we see the balance sheet of URW as over-levered. The plan comprises €4b of disposals by end 2021, a €3.5b capital raise, €1b of savings by lowering the dividend over two years and €0.8b by reducing capital expenditures. UK retail company Hammerson completed its £552m rights issue and now has a bit more financial flexibility. Additionally, the company appointed Rita-Rose Gagné as new CEO (previously at Ivanhoe Cambridge). We still see the company as significantly over levered though and there is much difficult work ahead.

During the month, KKR also disclosed that it bought a c.5% stake in UK office company Great Portland. The private equity firm has signaled that it expects a recovery in the London office sector. Our overweight positions in London offices performed well in relative terms on the back of other informed investors also seeing selectively value in London office players. As a result, office names across the UK and continental Europe performed well on increased expectations of offices valuations being really at the bottom and therefore valued attractive currently.

The UK appears to be battling on several fronts as in addition to Covid, Prime Minister (PM) Boris Johnson threatened to dishonor an earlier agreement with the European Union fearing unnecessary trade restrictions around the British Isles. Whilst this has the potential to make a difficult situation even more volatile, it is highly unlikely that the PM has enough support to cause such a formal block to negotiations as many of his own Members of Parliament (MPs) may not back these actions in a vote. One sub-sector that we have seen value re-emerge in is student housing as higher education has been recognized as a critical sector for the UK economic competitiveness and it is unlikely that any side of the political bench can take actions to hurt the student numbers (which have seen drops due to the logistical issues of many overseas students being able to come in). Furthermore, we have seen supply of purpose built student accommodation (PBSA) drop off as several less institutional developers cannot get the necessary financing to complete their schemes. Established student housing owner such as Unite Group stand to benefit and may surprise to the upside with decent leasing and resilient rental growth even during these challenging times. Furthermore, the current valuation provides an attractive entry point in our view.

Elsewhere, Vonovia, a German residential landlord raised €1b euro to repay upcoming debt maturities and to fund future growth opportunities. It’s striking to see the differences between retail companies that have been raising equity (clearly very defensive) versus for example Vonovia (very offensive). A clear indication of the structural trends that are playing out across the globe. On average we model a difference in Long Term Net Operating Income (NOI) growth of between 1.0-1.5% between these clusters and significant deviation in the shorter term Covid related NOI decline and subsequent recovery.

Over the month we saw what can be interpreted as a second wave of the Covid pandemic as the infection rates once again accelerated for several Western Hemisphere nations (including our home base in the Netherlands). This triggered the tightening of preventative measures once again across various European nations. Whilst this will be once again restrictive to the economy, it does appear like the cluster isolation methodology undertaken by many governments will be significantly less crippling to the economy than the full scale lockdown experience earlier on in the year. With that said, the length of the pandemic is continuing to damage the service sector, entertainment/experiential industries (such as movie theatres) and the travel and hotels sector with the continuation of job losses across those sectors and across temporary/contract employees.

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 European portfolio has 6 clusters defined as homogeneous groups of real estate companies with similar underlying currency exposure. Examples are United Kingdom, European Residential 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. Over the month of September we progressed with several of our engagements. We had a meeting with Alstria on the re-election of their supervisory board chairman that we argue has become non-independent due to excessive tenure. Alstria is a thought leader in the field of the environmental footprint of Office Real Estate and hence we discussed their Green dividend proposal. Additionally, we continued our engagement with Tritax Big Box REIT in the UK on the benefits of internalizing the management contract of the team.

September was a month with some volatility and we made changes to the portfolio accordingly. In US Offices we have been selling Boston Properties in favor of Hudson Pacific and Corporate Office. In the Nordics, we have been adding to our position in Entra and trimming our position in Fabege keeping balanced exposure between the two names for the moment. We believe that with the recent share price strength seen in Sweden (Hufvudstaden and Fabege buy-backs, Kungsleden dividend reinstatement) Norway had been overlooked and hence we see good value in Entra at the moment. In the European residential cluster we have been trimming Vonovia in favor of Kojamo as we believe that the latter is attractively priced given its recent underperformance. In the retail cluster we have been trimming our position in Klepierre for Deutsche Euroshop. In Canada we have been trimming partly our position in Allied Properties in favor of Killam Properties. We see deep value emerging in Canadian multi-family on the back of some regulatory news coming out of Ontario in the form of a rent freeze in 2021 which we see as a bit overhyped. In the US triple net cluster we participated in the Broadstone Net Lease REIT IPO (selling some of Realty Income to finance the position) as we found the company to have a strong management team and an attractive collection of assets at a good initial price. 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).

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 2020-09-30 (rebased)

No chart data available

Performance per 2020-09-30

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  Fund Benchmark
1 month -0.9 % -1.2 %
3 months -2.0 % -2.2 %
This year 0.9 % -0.7 %
Since inception (on annual basis) i 0.9 % -0.7 %
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
Yes
Number of distributions per year
1
Dividend calendar
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 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 (2020-09-30)

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  Contribution i Performance i
Fabege AB 0.33 % 15.80 %
Healthcare Realty Trust 0.18 % 6.47 %
CubeSmart 0.18 % 5.28 %
Realty Income 0.10 % 0.56 %
Tag Immobilien 0.10 % 2.79 %

Bottom 5 contribution (2020-09-30)

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  Contribution i Performance i
Hibernia Reit -0.24 % -16.38 %
Workspace -0.13 % -5.91 %
Highwoods Properties -0.11 % -7.78 %
Hang Lung Properties -0.11 % -7.84 %
Equity Lifestyle Properties -0.09 % -5.29 %

Geographic allocation (2020-09-30)

52.9 %
United States
11.9 %
Japan
5.9 %
Hong Kong
4.8 %
United Kingdom
4.6 %
Germany
3.7 %
Australia
3.6 %
Nordics
3.4 %
Singapore
2.6 %
Canada
2.3 %
Belgium
1.3 %
Ireland
1.3 %
Switzerland
1.0 %
France
0.8 %
Other
Total
100 %
On basis of country of exchange of the investments. The cash position is included in ‘Other’.

Top 10 holdings (2020-09-30)

4.0 %
Mitsubishi Estate
3.9 %
Avalonbay Communities
3.8 %
Invitation Homes
3.3 %
Health Care Property
3.2 %
Tag Immobilien
3.2 %
CubeSmart
2.8 %
Prologis
2.8 %
STAG Industrial
2.7 %
Healthcare Realty Trust
2.7 %
Healthcare Trust of America
Total
32.3 %

Sector allocation (2020-09-30)

25.7 %
Offices
24.2 %
Industrials
21.4 %
Residential
16.4 %
Other
12.3 %
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 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
0.60 %
Service fee i
0.20 %
Taxe d'abonnement i
0.01 %
Expected ongoing charges i
0.81%
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 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
JX
Investor type
Institutional
Distributing
Yes
Benchmark i
FTSE EPRA/NAREIT Developed Index
Investment category
Real Estate
Universum
Global real estate equities
Inception date
2020-04-17
Domicile
Luxembourg
May be offered to professional investors only in
Germany, Luxembourg, 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.

Tradability

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Minimum subscription
Initial subscription: €50,000, additional subscriptions: €10,000
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU2128453888
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 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).

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 ...
Bron EN
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).

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.