Kempen Lux Income Fund Class LI

Profile

Kempen International Funds SICAV – Kempen (Lux) Income Fund (the Fund) is designed to achieve current income and capital appreciation over the medium-term by investing primarily in a diversified portfolio of fixed income securities. The Fund employs a top down macro perspective along with bottom-up security selection, with a focus on downside protection.

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. The discounted management fee of 34bps will remain for a period of 3 years starting at the launch of the share class, to facilitate the initial growth of the Fund. After this period the Board of Directors will decide on the conditions and future of this share class.

Management team

Roelof Salomons, Ivo Kuiper, Kim Lubbers

Performance per 2018-05-31 (rebased)

No chart data available

Performance per 2018-05-31

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  Fund
1 month -1.7 %
3 months -2.0 %
This year -1.9 %
2017 0.3 %
Since inception (on annual basis) i -1.6 %
Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future. (Partial) hedging the interest and credit exposure, results in a lower yield for the portfolio.
More information can be found on the documents page of this fund

Key figures

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Share class size
EUR 66.33 M 2018-05-31
Net Asset Value i
EUR 988.79 2018-06-21

Fund characteristics per 2018-05-31

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  Fund
Number of holdings 652
Kempen (Lux) Income 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 Netherlands Authority for the Financial Markets.

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 2018-05-31

German 10-year government bonds closed May at 0.34%, a drop of 22 basis points compared to the end of April. In May, the spread on the investment grade corporate bond index widened by 29 basis points to 132 basis points above the government bond curve. The index earned an absolute return of -0.26%. The spread on the High Yield (BB) index widened by 41 basis points, resulting in an absolute return of -1.12%.

Italian politics dominated the yield markets in May. The Italian general election in March this year was won by the populist parties: the Five Star Movement led by Luigi di Maio and the Lega Nord led by Matteo Salvini. Although there are huge differences in their manifestos, they did ultimately initiate negotiations. This was the only remaining option for forming a government. Together they hold a small majority in parliament, as well as sharing criticism of Eurozone policies. Markets responded nervously to comments about the euro. Bond spreads widened, including in other peripheral EU countries. The two parties finally agreed a governing manifesto that includes tax reforms to create two tax brackets of 15% and 20%, the scrapping of pension reforms, a minimum wage and a fierce anti-immigration policy but nothing on an exit from the Eurozone. These policies will create a higher budgetary deficit, but the parties seem more than willing to stand up to the EU on this. This increased uncertainty on the financial markets, which was later exacerbated when the parties absolutely insisted on Savona, an ‘anti-euro’ professor, as Minister of Finance. President Matarella felt the pressure from the markets and rejected the plan. Markets initially responded with relief, but this was of short duration. Market confidence deteriorated due to panic about the prospect of fresh elections. Volatility reached an interim high on Tuesday 29 May. On the bond market, trade in peripheral EU bonds and many credits ground to a complete halt. In Italy, the parties returned to the negotiating table and finally reached agreement. The new government will be headed by Guiseppe Conte, a law professor with no political experience, with Professor Giovanni Tria holding the portfolio for Economics and Finance. President Matarella approved the list of government ministers.

Spreads on corporate bonds quickly widened as a result of the increased risk aversion, especially those on bonds issued by Italian companies and subordinated bonds issued by banks and insurers. Moreover, there was a general widening of spreads on bonds that are eligible for the ECB’s CSPP programme. Spread curves also steepened.

For the first time in ages, a number of bond issues were cancelled due to a lack of demand from the market. Both German media company Bertelsmann and US white goods manufacturer Whirlpool were forced to cancel new bond issues. This was in spite of the fact that the spreads they were willing to pay represented a significant premium compared to where their existing bonds were trading.

Portfolio developments per 2018-05-31

May was a negative month for the Kempen Income Fund. The portfolio earned a return of -1.69%. The greatest movement was in spreads on peripheral EU government bonds and on corporate and high yield bonds. The fund’s positions in Italy, Spain, Greece, Portugal, Ireland and Slovenia yielded a negative contribution of 75 bps. The fund’s exposure to investment grade corporate bonds and high yield bonds made a negative contribution of 82 bps. However, our underweight in France yielded over 10 basis points, and our positions in Swedish krona and Norwegian krone also generated a number of basis points.

At individual company level, positive contributions came from the overweights in Becton Dickinson, Christian Dior, WPP, Huntsman, Ineos en Daimler, as well as the underweights in Generali, Telecom Italia, Tesco and Enel. Our overweights in Leonardo, Schaeffler and Orano, as well as our underweights in K+S, Caixabank, EDF, Terna, Allianz and Ceconomy, contributed negatively.
Kempen (Lux) Income 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 Netherlands Authority for the Financial Markets.

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 2018-05-31 (rebased)

No chart data available

Performance per 2018-05-31

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  Fund
1 month -1.7 %
3 months -2.0 %
This year -1.9 %
2017 0.3 %
Since inception (on annual basis) i -1.6 %
Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future. (Partial) hedging the interest and credit exposure, results in a lower yield for the portfolio.

Dividends

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Distributing
No
Kempen (Lux) Income 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 Netherlands Authority for the Financial Markets.

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 (2018-05-31)

27.9 %
7-10 year
20.5 %
5-7 year
19.5 %
3-5 year
16.7 %
> 10 year
14.8 %
0-3 year
0.6 %
Cash
0.0 %
NoMatchingBucket
Totaal
100 %

Sector allocation (2018-05-31)

33.0 %
Staatsleningen
20.9 %
Banken
9.6 %
Consumentengoederen & diensten
6.2 %
Overig
5.5 %
Industrie
4.8 %
Telecom & technologie
4.8 %
Nutsbedrijven
3.5 %
Financiële dienstverlening & Onroerend Goed
3.2 %
Verzekeringen
2.8 %
Supranationaal
2.2 %
Basismaterialen
1.6 %
Energie
1.2 %
Gezondheidszorg
0.5 %
Asset Backed Securities
Totaal
100 %

Rating allocation (2018-05-31)

10.4 %
AAA
15.0 %
AA
29.7 %
A
22.2 %
BBB
16.9 %
BB
1.4 %
B
0.0 %
less than or equal to CCC
3.8 %
Not Rated
0.6 %
Cash
Totaal
100 %

Top 10 holdings (2018-05-31)

2.8 %
1.750% Nederland 2013-23
2.4 %
1.125% Polen 2018-26
2.3 %
1.500% Temasek Financial 2016-28
2.3 %
1.750% Chili 2016-26
2.3 %
1.125% Corp Andina de Fomento 2018-25
2.2 %
1.000% Slovenië 2018-28
1.5 %
1.250% Belgie 2018-33
1.5 %
0.700% Italie 2015-20
1.4 %
1.125% Finland 2018-34
1.3 %
0.125% Zweden 2018-23
Totaal
19.9 %
Kempen (Lux) Income 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 Netherlands Authority for the Financial Markets.

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

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Management fee i
0.34 %
Service fee i
0.10 %
Taxe d'abonnement i
0.01 %
Indirect costs i
0.05%-0.10% (estimated range)
Expected ongoing charges i
0.50% - 0.55% (estimated bandwith)

Other costs

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Upward swing factor i
0.10 %
Downward swing factor i
0.10 %
Kempen (Lux) Income 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 Netherlands Authority for the Financial Markets.

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

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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, The Netherlands
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Management company
Kempen Capital Management N.V.
Custodian
J.P. Morgan Bank Luxembourg S.A.

Tradability

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Minimum subscription
Initial subscription: €1,000, additional subscriptions: €1,000
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU1626447269
Kempen (Lux) Income 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 Netherlands Authority for the Financial Markets.

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 (Lux) Income 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 Netherlands Authority for the Financial Markets.

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.

KCM Vision

Kempen Capital Management is an asset manager with a long-term investment approach. We strongly believe in engaged shareholdership that benefits all stakeholders. As a long-term responsible investor, we firmly believe that active ownership and shareholder engagement contribute to positive change across the board.

Our KCM wide approach to responsible investment

To put our vision into action we engage with our investment targets on a wide array of strategic, financial, environmental, social and governance (ESG) topics. Our long-term investment worldview paired with thorough analysis and an experienced and diverse ESG team allow us to use both voting and engagement as means to consistently encourage positive change. Through this process of constructive engagement, we are able to contribute to the development of principles and standards of corporate responsibility within companies that we invest in.

Kempen (Lux) Income 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 Netherlands Authority for the Financial Markets.

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.