Kempen Lux Income Fund Class LR

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 2017-12-31 (rebased)

No chart data available

Performance per 2017-12-31

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  Fund
1 month -0.0 %
This year -0.0 %
Since inception (on annual basis) i -0.0 %
Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 65.23 M 2017-12-31
Number of shares
39,000 2017-12-31
Net Asset Value i
EUR 25.01 2018-01-19

Fund characteristics per 2017-12-31

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  Fund
Number of holdings 663

Market developments per 2017-12-31

German 10-year government bond yields closed the month at 0.42%, an increase of 6 basis points compared to the end of November. Credit spreads on investment grade corporate bonds tightened by 2 basis points to 96 basis points above the government bond curve. The index earned an absolute return of -0.29%. Credit spreads on High Yield (BB) tightened by 5 basis points for the index, which resulted in an absolute return of -0.18% for this bond segment.

In addition to the imminent reduction of the ECB’s bond-buying programme from EUR60 billion to EUR30 billion a month, higher government bond yields are also being driven by the expectation of persisting robust economic growth in Europe. Economic indicators for both industry and services in the Eurozone are pointing to the strongest level of growth since 2011. Economic growth also remains robust outside Europe. In the short term, US growth will be boosted further by the wide-scale tax cuts approved by US Congress this month. The reduction in the tax rate on corporations from 35% to 21% means that companies will benefit most.

The supply of new corporate bonds was EUR10.2 billion in December and therefore about 7% up on December 2016, but 81% down on November 2017. Across 2017 as a whole, the supply of new bonds stood at EUR512.6 billion, a drop of 4% compared to 2016. High Yield companies again took advantage of the favourable market climate to issue new bonds. This brought the total new bond issues in the Euro High Yield market over 2017 as a whole to over EUR90 billion, a record. The number of new bonds issued in 2018 is expected to be slightly lower.

Portfolio developments per 2017-12-31

December was a slightly negative month for the Fund. The portfolio earned a return of -0.04%. Bonds issued by government-related institutions added to the return. Moreover, spreads on Slovenia and Chile tightened sharply, leading to the Chilean bond being sold at the end of December.

At individual company level positive contributions came from the overweights in Quintiles, Allianz, Arkema, Schaeffler Kensington (ABS), Sky and Delta Lloyd. Our underweights in Steinhoff, DVB Bank, Salini Impreglio and Crown Holdings also added to the return. However, the underweights in Bayer, CNP Assurances, Ørsted and Grupo Antolin and overweights in Telecom Italia and Cellnex made negative contributions.

In December, the Fund participated in new bond issues by e.g. CK Infrastructure, Deutsche Post, OMV, Tank & Rast and Equinix.

Performance per 2017-12-31 (rebased)

No chart data available

Performance per 2017-12-31

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  Fund
1 month -0.0 %
This year -0.0 %
Since inception (on annual basis) i -0.0 %
Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future.

Dividends

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Distributing
No

Maturity profile (2017-12-31)

26.4 %
0-3 years
22.4 %
5-7 years
21.9 %
3-5 years
14.2 %
> 10 years
13.3 %
7-10 years
1.7 %
Cash
Totaal
100 %

Sector allocation (2017-12-31)

33.0 %
Sovereign bonds
20.9 %
Banks
9.6 %
Consumer Goods & Services
6.2 %
Other
5.5 %
Industry
4.8 %
Telecom & Technology
4.8 %
Utilities
3.5 %
Financial Services & Real estate
3.2 %
Insurance
2.8 %
Supranational
2.2 %
Basic Materials
1.6 %
Energy
1.2 %
Health Care
0.5 %
Asset Backed Securities
Totaal
100 %

Rating allocation (2017-12-31)

28.0 %
BBB
19.7 %
A
17.0 %
AA
15.6 %
BB
14.3 %
AAA
3.7 %
Not Rated
1.7 %
Cash
0.1 %
B
0.0 %
less than or equal to CCC
Totaal
100 %

Top 10 holdings (2017-12-31)

4.7 %
2.250% Duitsland 2010-20
2.1 %
3.250% Nederland 2011-21
1.9 %
1.350% Italie 2015-22
1.4 %
4.250% Belgie 2011-21
1.4 %
5.150% Spanje 2013-44
1.3 %
3.900% Oostenrijk 2005-20
1.3 %
4.350% Oostenrijk 2007-19
1.2 %
0.125% CCCI 2017-21
1.2 %
3.000% Belgie 2012-19
1.2 %
0.000% Ierland 2017-22
Totaal
17.8 %

Ongoing charges

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Management fee i
0.34 %
Service fee i
0.10 %
Taxe d'abonnement i
0.05 %
Indirect costs i
0.05%-0.10% (estimated range)
Expected ongoing charges i
0.54% - 0.59% (estimated bandwith)

Other costs

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Upward swing factor i
0.10 %
Downward swing factor i
0.10 %

Share class details

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Share class
LR
Investor type
Private
Distributing
No
Duration hedged
No
Investment category
Multi Asset Strategies
Inception date
2017-12-21
Domicile
Luxembourg
May be offered to all investors 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
LU1626447426

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.