- Kempen
- Kempen Lux Income Fund Class LI
Kempen Lux Income Fund Class LI
Profile
The Fund does not have a benchmark. Attention: it is envisaged that this share class will be closed for further subscriptions once the Fund (all share classes combined) reaches a size of € 300 million. At the launch of the fund on 7 August 2017 this share class carried a discounted management fee for a maximum period of 3 years to facilitate the initial growth of the Fund, the current discounted management fee is 20 bps. The Board of Directors will decide on the conditions and future of this share class once the 3 years period has lapsed i.e. in July 2020.
Management team
Performance per 2019-07-31 (rebased)
Performance per 2019-07-31
| Fund | |
|---|---|
| 1 month | 0.6 % |
| 3 months | 1.1 % |
| This year | 3.1 % |
| 2017 | 0.3 % |
| 2018 | -2.5 % |
| 1 year (on annual basis) | 1.7 % |
| Since inception (on annual basis) i | 0.4 % |
Key figures
| Share class size | EUR 64.02 M 2019-07-31 |
| Net Asset Value i | EUR 1,005.51 2019-08-20 |
Fund characteristics per 2019-07-31
| Fund | ||
|---|---|---|
| Number of holdings | 729 |
The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. 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/investmentfunds).
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.
Market developments per 2019-07-31
The European Central Bank (ECB) decided to keep its policy interest rates unchanged, but it has paved the way for further stimulation. It announced that interest rates would remain at their current level or even lower until mid-2020. The market expects the ECB to cut its rates by 10 basis points in September. Furthermore, the ECB is to explore other stimulatory options, such as restarting its bond-buying programme, in order to stop inflation forecasts falling further. Spreads on corporate bonds, European government bonds and government-related paper tightened in response to this news. Constructive talks between Italy and the European Commission on Rome’s fiscal policy were an additional bonus for European investors. The Italian government has again adjusted its budget for 2019 and this removes the threat of an excessive deficit procedure that was hanging over Italy’s head.
The US central bank (Fed) cut its policy interest rate by 0.25% on 31 July and announced it would no longer reduce its balance sheet from August. Yet there were investors who had hoped for a cut of 0.50%. Powell described the move as a mid-cycle adjustment, which suggests it is not the first in a series of cuts. Moreover, the decision was not unanimous. Two central bankers voted against and had argued in favour of keeping the policy interest rate unchanged.
After receiving two-thirds of the votes, Boris Johnson was elected as the new leader of the UK’s Tory party and therefore prime minister. He needs to get Brexit done in just over 100 days. He is clearly pro-Brexit, but his economic and tax policies once the UK has left the European Union are less well defined. Johnson’s appointment increases both the risk of a hard Brexit and of another general election.
Portfolio developments per 2019-07-31
At individual company level, there were positive contributions from the overweights in AB Inbev, Fiserv, Fidelity National Information Services, Heidelberg Cement, Abertis, Telecom Italia, Adler Real Estate, Telefonica, Volkswagen, Intesa Sanpaolo and Tank & Rast, as well as from the underweights in Chemours, Loxam and Owens-Illinois. In contrast, the overweights in Morgan Stanley, Origin Energy, Huntsman, IHO Verwaltungs and Barclays and the underweights in Wind, Netflix, Salini Impreglio, Orano and UniCredit contributed negatively.
The portfolio is positioned for higher bond yields and tighter spreads. The much worse than expected growth forecasts and the willingness of central banks to pursue expansionary monetary policies were not our central scenario, but these have had a significant impact on the financial markets. A great deal of negative news has already been priced in with the interest rate cuts of 20bps from the ECB and 100bps from the Fed. The risk of substantially higher bond yields has been shifted to a future date. A number of positions, set up to profit from the tighter spreads versus Germany, are close to the levels at which we are inclined to take profit.
The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. 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/investmentfunds).
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 2019-07-31 (rebased)
Performance per 2019-07-31
| Fund | |
|---|---|
| 1 month | 0.6 % |
| 3 months | 1.1 % |
| This year | 3.1 % |
| 2017 | 0.3 % |
| 2018 | -2.5 % |
| 1 year (on annual basis) | 1.7 % |
| Since inception (on annual basis) i | 0.4 % |
Dividends
| Distributing | No |
The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. 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/investmentfunds).
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.
Maturity profile (2019-07-31)
Sector allocation (2019-07-31)
Rating allocation (2019-07-31)
Top 10 holdings (2019-07-31)
The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. 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/investmentfunds).
The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Ongoing charges
| Management fee i | 0.20 % |
| Service fee i | 0.10 % |
| Taxe d'abonnement i | 0.01 % |
| Indirect costs i | 0.05%-0.10% (estimated range) |
| Expected ongoing charges i | 0.36% - 0.41% (estimated bandwith) |
Other costs
| Upward swing factor i | 0.10 % |
| Downward swing factor i | 0.10 % |
The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. 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/investmentfunds).
The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Share class details
| Share class | LI |
| Investor type | Institutional |
| Distributing | No |
| Duration hedged | No |
| Investment category | Multi Asset Strategies |
| Inception date | 2017-08-07 |
| Domicile | Luxembourg |
| May be offered to professional investors only in | Luxembourg, Switzerland, The Netherlands |
| UCITS status i | Yes |
| Status | Open-end i |
| Base currency | EUR |
| Share class currency | EUR |
| Management company | Kempen Capital Management N.V. |
| Depositary and custodian | J.P. Morgan Bank Luxembourg S.A. |
Tradability
| Minimum subscription | Initial subscription: €1,000, additional subscriptions: €1,000 |
| Listed | no |
| Subscription/Redemption Frequency | Daily |
| ISIN i | LU1626447269 |
The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. 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/investmentfunds).
The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Factsheets
Annual Reports
Semi- Annual Reports
Key Investor Information
Formal documents other
The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. 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/investmentfunds).
The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Kempen's vision & mission
Kempen Capital Management is an asset manager that believes in stewardship and investment focusing on the long-term for the benefit of all stakeholders. Value creation is at the heart of the services we provide to our clients. We believe that being an engaged shareholder on environmental, social and governance (ESG) issues and retaining a long-term focus, is critical to helping our clients to preserve and create sustainable wealth that has positive real world impact and economic returns.
Kempen wide approach to responsible investment
We are committed to create sustainable alpha. The four pillars of our ESG-policy are:
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ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.
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Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.
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Active ownership: Being responsible stewards of our clients’ capital and using our influence through engagement and voting to improve corporate behaviour on specific ESG issues and achieve positive change
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Positive impact: Investing with an objective to achieve positive real world outcomes and impact, such as contributing to the UN Sustainable Development Goals.
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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.
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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
Kempen’s ESG policy is fully implemented in our fund’s investment process across the three relevant pillars of: Exclusion, ESG integration and Active ownership
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ESG is fully integrated into the investment process of the Kempen (Lux) Income Fund, with analysis undertaken both pre-investment and as part of our portfolio monitoring activities. Portfolio managers perform an in-depth analysis of ESG data, and ESG risks and opportunities are taken into account when selecting and monitoring governments, government related issuers and corporates.
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1. Exclusion
In line with the general Kempen policy, the Kempen (Lux) Income Fund excludes all countries and companies of the KCM exclusion- or avoidance list. Companies or countries on these lists are either involved in the production of controversial weapons, derive a significant portion of their revenues from the production or distribution of tobacco, or have been involved in serious controversies.
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2. ESG integration
We flag “low†performing countries and companies. The portfolio managers of the Kempen (Lux) Income Fund and the underlying funds, assesses the materiality of the ESG issue and its implications for the credit profile of the company or country. If an issue is deemed material, our first objective is to engage on the issue. If we can conclude from the engagement that the ESG concerns are not structural and if the company is willing to improve, we make an adjustment in the determination of the relative value of the company’s securities. In severe cases where we do not see any prospect of improvement we forego investment in the country or company.
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The fund performs a quarterly screening using the database MSCI ESG research. The Responsible Investment team conducts the screening, and a review of the ESG ratings of bonds in the portfolio along with discussions on ESG rating developments are conducted by the team.Â
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The following items are discussed on a quarterly basis:
• A review of the ESG ratings of bonds in the portfolio;
• A discussion on any developments / changes in the ESG ratings;
• Screening for controversies using MSCI ESG research;
• Excluding countries and companies based on UN Global Compact criteria;
• Excluding controversial weapon producers.
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Finally, the Kempen (Lux) Income Fund prefers Green bonds rather than a ‘normal bond’ if two bonds have the same risk/return characteristics. We are an active player in the market of green bonds and we have a green bond policy which outlines the guidelines we adhere to defining a green bond.
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3. Active ownership
Where relevant our fund will attempt to use its ownership stakes to engage with investees on ESG issues. For example, in 2018 the fund was part of an engagement with Bayer, following their acquisition of Monsanto. Through the acquisition, Bayer inherited several significant controversies in the field of genetically modified organisms (GMOs). The goal of the engagement is to get a formal and written statement from the company which states that they will not sue small holder farmers for the unintended use of Bayer licensed GMO crops. It also asks the company to set a target for the number of farmers that receive education on their crop protection products.
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In addition the fund has ongoing engagement cases with Volkswagen on its company culture, Cez on the use of thermal coal, Glencore on climate action and Huntsman on ESG disclosure.
ESG Report
The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.
The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. 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/investmentfunds).
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.
