Kempen launches Structured Credit Pool
The Diversified Structured Credit Pool (“DSCP”) is a pool comprised of long-only structured credit funds carefully selected by Kempen, through which investors are able to gain access to three best-in-class Structured Credit specialists (GoldenTree, LibreMax and One William Street).
Kempen has a long and successful history investing in Structured Credit managers since 2009, as part of its flagship fund of hedge funds (FoHF) Kempen Orange Investment Partnership. Its Hedge Fund Solutions team includes three Portfolio Managers, who each have more than 15 years’ experience in selecting and monitoring alternative asset managers.
DSCP is currently targeting a net return of 4 - 6% p.a. (in USD; unhedged) and will invest in a mix of investment grade (IG) and sub-IG bonds, with a tilt towards IG bonds. Its interest rate duration is expected to be 2 - 3 years and geographically, the fund is expected to be 80 - 85% allocated to the US and 15 - 20% to Europe.
Structured Credit is a collective term for bonds backed by various types of assets including residential mortgages (RMBS), commercial mortgages (CMBS), senior secured loans (CLO’s), and consumer loans (Consumer ABS).
Remko van der Erf, Co-Head Hedge Fund Solutions at Kempen says that while Structured Credit is one of the largest fixed income credit markets globally at $2.8 trillion, it has been overlooked by many investors given the higher complexity, lower liquidity and eligibility criteria involved.
“While it is a more complex asset class, in return it provides higher spreads than similarly rated corporate bonds, as well as protection against rising rates, and exposure to the consumer market,” says Remko van der Erf. “By working with the right partner who can help to navigate the market, professional investors can access a niche alternative to high yield.
This press release of Kempen Capital Management N.V. (Kempen) is intended for professional investors and for information purposes only. This press release provides insufficient information for an investment decision. Before making such a decision, please read the information memorandum. This is available on the website (www.kempen.nl).
Diversified Structured Credit Pool (‘DSCP’) is a sub-fund of Kempen Alternative Markets Fund (the ‘Fund’), a Luxembourg established SICAV. Kempen is the Management Company of the Fund. Kempen is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of Kempen at the AFM and not subject to Luxembourg supervision. The Fund is only available for professional investors. DSCP is registered for offering to professional investors in a limited number of countries. The countries where DSCP is registered can be found on the websitewww.kempen.nl.
About Kempen Capital Management
Kempen Capital Management N.V. (KCM) is a wholly-owned subsidiary of Kempen & Co N.V., is licensed as a manager of various investment institutions and to provide investment services including asset management, and, as such, is subject to supervision by the Netherlands Authority for the Financial Markets, and registered with the Financial Conduct Authority.
KCM is a specialized asset management company with a very targeted and specific investment style in European equities, bonds and real estate securities for a range of institutional investors, foundations and high net-worth private clients. In addition, KCM offers comprehensive fiduciary investment solutions and selects investment boutiques for its clients. KCM pursues optimal investment results and works with highly specialized management teams. Kempen Capital Management N.V. is listed in the Commercial Register of the Chamber of Commerce in Amsterdam under file number 33181992, and has its registered office in Amsterdam.