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 2020-12-31 (rebased)

No chart data available

Performance per 2020-12-31

Slide to see more
  Fund Benchmark
1 month 0.7 % 1.2 %
3 months 6.5 % 8.6 %
This year 7.5 % 7.7 %
Since inception (on annual basis) i 7.5 % 7.7 %
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

Slide to see more
Total fund size
EUR 170.16 M 2020-12-31
Share class size
EUR 31.30 M 2020-12-31
Number of shares
291,961 2020-12-31
Net Asset Value i
EUR 105.10 2021-01-15
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 2020-12-31

Slide to see more
  Fund Benchmark
Number of holdings 54 339
Dividend yield i 3.42 % 3.98 %
Weighted average market capitalization i EUR 9,353 M EUR 12,799 M
P/E ratio i 27.55
Active share i 76.49 %
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 2020-12-31

The Fund posted a positive return during December but underformed the benchmark. Performance was very spread out with eight of the clusters contributing positively and ten detracting. A larger outperformer over the month was the traditionally volatile US Triple Net cluster where our overweight in Broadstone Net Lease REIT, a position which we have held since its initial listing in September, returned 12% outperforming the 4% return of the cluster. Underperforming clusters for us were our two Japan clusters (REOCs and REITs). Mitsubishi Estate slightly underperformed on no particular news. The question whether the surge in COVID-19 cases would cause the government to call for a new State of Emergency (lockdown) spooked the market. In JREITs, our holdings Invesco Office REIT and Kenedix Office REIT reported results in December. Both assume tenant departures for the upcoming period which is expected to move occupancy down to 97.4% and 95.7% respectively (from 99.2% and 98.1%). Invesco sees this as a risk whereas Kenedix sees this as an opportunity to re-lease at higher rents.

The month of December was a bit more stable than the abnormally positive November sparked by the news of the Covid vaccine. Real estate markets continued digesting the positive news yet still continued a more measured path upwards returning +3% over December in local currency. The best performing clusters were Switzerland and Japan REITs at +7% and +6% respectively. The former was likely aided by the “safety premium” as European countries entered another round of more strict lock-down measures. The weakest performers were Japan REOCs and Canada returning -4% and -3% respectively with the latter showcasing weakness in retail.

Over 2020 we saw tremendous volatility and dispersion in listed real estate with the best performers being unsurprisingly European Residential at 22% for the year, followed by US Industrial & Storage at 13%. The regulated rents by German residential ended up proving their worth in a down-market offering good cushion and downside protection in the face of the extreme uncertainty that the Covid pandemic had brought on. On the other hand, despite a strong vaccine driven November month, the weakest performing clusters were US Retail and European Diversified (where European retail sits) at -32% and -27% respectively. Despite strong November months, landlords such as Unibail-Rodamco-Westfield and Simon Properties still ended the year down 50% and 38% for the year.

We like seeing volatility and dispersion within our clusters. For example, in the UK over the year we saw retail names dropping by over 80% and logistics names returning over 10%. In a single sector cluster such as US Offices we saw a drop of over 30% in New York focused landlords such as Empire State and Paramount versus low single digit drop of flat performance of names like Easterly Government Properties and Corporate office Properties Trust (generally away from the highest impacted gateway markets of New York and San Francisco). We have taken steps to adjust our models on the back of the drop of 15% of market rents in some of the gateway markets but still see them as longer-term attractive markets with shorter-term issues of demand (in San Francisco) and mostly supply (in New York).

During December, the Swedish invasion of Norway intensified with Entra ASA receiving higher bids by both Castellum and SBB I Norden (SBB). The first revised bid came from Castellum valuing the company at around 185 NOK per share (or 14% higher than its first bid) and simultaneously selling a portfolio of mostly logistics (and some offices) assets to Blackstone for a yield in the high 4% range for a total sum of 18.7bn SEK. These proceeds allowed Castellum to offer a higher cash component of 30% of the total. Castellum offered 8 of its own shares for 13 shares of Entra plus a 54.4 NOK per share cash part. Subsequently, just before the Christmas holiday SBB raised its bid by 3% to a price of 190 NOK with a substantially higher cash component than Castellum. We saw the value of Entra and any possible combination fully priced in at these price levels hence had found significantly better valued relative opportunities elsewhere in the Nordics from the proceeds of our position in Entra. As this saga was unfolding, Balder had been buying shares on the market to build up a 15% position in Entra. Whilst initially the company’s CEO Erik Selin commented that they would rather see Entra remain as a listed entity, the tone quickly changed to a comment that there is a price for everything. We find the timing of this purchase questionable and a little but unnerving, given the close-knit nature of Nordic real estate. We had flagged in the past that governance, interdependence and transparency had been structural issues in that region and we would continue to monitor the situation with close scrutiny.

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. The month of December saw us conclude an engagement with Tritax Big Box REIT in the UK with an unfavorable result. We had been engaging with the board to hire external consultants and provide investors with a cost/benefit analysis on the internalization of the management contract of Tritax Management LP for the REIT. Surprisingly, during December, it was announced that Tritax Management had sold a 60% interest to another party (for an undisclosed prize). This essentially eliminates the chance of internalization over the next five years as the acquirer will surely find the stable, growing and predictable investment management fees from Tritax Big Box REIT attractive and would be likely to hold onto that investment. Unfortunately, we have seen no improvements in the corporate governance of the REIT and will look carefully at the additional potential conflicts of interest that may arise from the financial acquirer of Tritax Management LP. We may yet reopen the engagement in the future.

During December we made several changes to the portfolio. In the UK we have been trimming our positions in Derwent and Workspace in favour of residential landlord Grainger. Our highly successful UK offices trade is now again screening expensive versus the high quality private residential (PRS) landlord. In the Nordics, we sold out of the position in Entra ASA and invested the proceeds in Stockholm specialist Fabege. Entra ASA outperformed significantly on the back of the ongoing bidding war between Castellum and SBB and hence we saw better opportunities back in Stockholm which is one of the highest scoring long term office markets in Europe based on our property scores data methodology. In the US Logistics & Storage cluster we sold part of our position in Prologis and exited PS Business parks in favor of Eastgroup. In US Healthcare we entered into Welltower by exiting Alexandria and trimming our position in Healthpeak. We improved our assumptions on senior housing to account for the vaccine which triggered the trades. In the US Triple Net lease cluster we exited our position in WP Carey and entered back into Realty Income as we saw the latter being overly penalized for its small movie theatre exposure. 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 2020-12-31 (rebased)

No chart data available

Performance per 2020-12-31

Slide to see more
  Fund Benchmark
1 month 0.7 % 1.2 %
3 months 6.5 % 8.6 %
This year 7.5 % 7.7 %
Since inception (on annual basis) i 7.5 % 7.7 %
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

Slide to see more
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 (2020-12-31)

Slide to see more
  Contribution i Performance i
Workspace 0.28 % 12.69 %
Broadstone Net Lease 0.24 % 9.98 %
Americold Realty Trust 0.19 % 7.55 %
Equity Lifestyle Properties 0.18 % 6.57 %
Orix Jreit 0.12 % 7.57 %

Bottom 5 contribution (2020-12-31)

Slide to see more
  Contribution i Performance i
Mitsubishi Estate -0.36 % -9.30 %
Hysan Development -0.31 % -10.73 %
Avalonbay Communities -0.16 % -4.65 %
Henderson Land Development -0.12 % -9.16 %
Hudson Pacific Properties -0.09 % -8.66 %

Geographic allocation (2020-12-31)

52.9 %
United States
11.0 %
Japan
5.8 %
Hong Kong
4.9 %
United Kingdom
4.3 %
Nordics
4.2 %
Belgium
3.9 %
Australia
3.6 %
Germany
3.4 %
Singapore
2.7 %
Canada
1.3 %
Switzerland
1.1 %
Ireland
0.9 %
Other
Total
100 %
On basis of country of exchange of the investments. The cash position is included in ‘Other’.

Top 10 holdings (2020-12-31)

3.9 %
Avalonbay Communities
3.6 %
Invitation Homes
3.3 %
Mitsubishi Estate
3.1 %
Tag Immobilien
3.0 %
CubeSmart
2.8 %
Healthcare Trust of America
2.8 %
Equity Lifestyle Properties
2.8 %
Warehouses De Pauw
2.8 %
STAG Industrial
2.7 %
Highwoods Properties
Total
30.6 %

Sector allocation (2020-12-31)

28.5 %
Industrials
21.6 %
Offices
21.2 %
Residential
16.3 %
Other
12.4 %
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

Slide to see more
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

Slide to see more
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

Slide to see more
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

Â

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

Â

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.

Â

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]

Â

The Kempen climate change policy can be found here (under climate change policy).

Â

[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.

Â

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].

Â

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

Â

[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.

Â

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.

Â

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

Â

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.

Â

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.

Â

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.

Â

Active ownership

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

Â

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

Â

You can find the engagement factsheet of Kojamo Oyj here.

Â

Our full ESG policy can be downloaded here.

Risks

For more information about the mid and long term risks associated with the investments:

Â

--------------------------

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.