News & Knowledge

2020, 02 April

Kempen Real Estate Update

Equity markets around the word have swung enormously in the past weeks. Investors have been struggling to understand the economic damage the fast spreading COVID-19 might cause, as the number of cases continues to rise and governments step up measures to contain them. In this update Egbert Nijmeijer tells about the impact on Kempen’s real estate strategy.

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2020, 01 April

Comment on Dividend Cuts

Dividend is the backbone of our investment strategy. Providing a consistent return to shareholders urges companies to carefully manage their cashflows and balance sheet, and scrutinize their investment decisions. As the economy has come to an abrupt stop due to the COVID-19 crisis, regulators, companies and even investors are questioning whether it is prudent to return cash to shareholders when the outlook is filled with uncertainty. We agree, some companies will need all their available resources to weather the crisis. Many others however, are according to our opinion in good shape financially to see this through. Some companies are simply not impacted much directly.

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2020, 20 March

Kempen's Commentary

As of this week, Kempen employees are alternately working from home; one week one part of the team, and the other week the other part. We’re learning to use all possible means of communication other than physical meetings: e-mail, chat, telephone and video conferencing. Before this week, our teams were split up and divided over different locations to keep functioning as much as possible in case the virus would hit our company. The little pumps with disinfectant soap at all entrance doors have long proved to be insufficient.

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2020, 19 March

Kempen Real Estate Update: REIT portfolios in the COVID-19 world

Equity markets around the word have swung wildly in the past weeks. Investors have been struggling to understand the economic damage the fast spreading COVID-19 might cause, as the number of cases continues to rise and governments step up measures to contain them. Policymakers have responded by cutting interest rates to prop up economic growth. Worries about long term economic growth have pushed the yield on 10-year US Treasury notes and German Bund to new lows.

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2020, 11 March

Asset Allocation Outlook March

It took a while for the corona virus to really infect the financial markets. But when it spread also outside of China, things went fast. The stock markets dropping 15% in one week was virtually unknown. When oil prices also tanked following a dispute between Saudi Arabia and Russia, markets panicked.

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2020, 06 March

Kempen's Commentary

When I write this column, markets are struggling with the effects of the coronavirus. Investors are wondering when our global economic activities will fully resume again. If this happens in Q2, then the prices may be able to move back in the right direction. The same thing happened with the SARS outbreak in 2003. But for this to happen, the spread of the virus must first lose its momentum.

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2020, 25 February

Global Impact Pool Quarterly

We are pleased to report on the fourth quarter of 2019 on Kempen’s Global Impact Pool in which we continued to deploy capital towards the Global Impact Pool’s mission, which is to make investments that positively contribute to solving global problems around the food, water and climate nexus and five Sustainable Development Goals.

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2020, 21 February

Kempen's Commentary

A central bank should make its own decisions and nobody should interfere, certainly not politics. President Donald Trump calling Federal Reserve Chairman Jerome Powell “clueless” and the Fed “the problem” is unprecedented, right?

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2020, 10 February

Kempen Real Estate Update: How to Future – Proof Your Shopping Centre

When you think about a place where you can buy whatever you are looking for across sectors and brands, what comes to your mind? A shopping centre? Or Amazon? Or do you rather prize environmental sustainability and follow the NOwnership trend to reduce shopping altogether?

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2020, 07 February

Kempen's Commentary

Insurers, pension funds, banks and family offices help their end customers to meet future obligations. In order to achieve that, returns must be realised. Asset managers must deliver those returns for all stakeholders and at the same time manage the client’s capital in a responsible way. It’s widely known that the majority of active investors is unable to beat its benchmark. They tell great stories, charge high costs and in the end deliver the same results as products that follow an index. It’s therefore understandable that investment portfolios are increasingly filled with passive products. Buyers are sick of it.

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2020, 24 January

Kempen's Commentary

Last week, the US and China signed their ‘phase one’ trade deal. Even though the really difficult subjects will only be discussed in phase 2 (or perhaps even phase 3?), this is still a sign of relaxation between the two super powers. Moreover, the US no longer labels China as a ‘currency manipulator’. China has had that status since August last year. It must be said that the Chinese currency has risen sharply since then. The US deems it manipulation when a country pushes its currency downwards and not when this is done in an upward direction. A cheap currency strengthens the export position of a country, that’s why it’s considered as unfair competition.

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2020, 21 January

Kempen Real Estate Update: Barbarians at the gates

A recurring and important question regarding all shapes and forms of prudent investing across all asset classes and instruments is “how do I get my money back?”. Whereas larger institutional investors may have the luxury of investing with nearly perpetual time horizons, for retail investors and institutional investors with stringent spending requirements (foundations, endowments, insurance etc..), this question is of the utmost importance as often they do not have this luxury option. With the recent suspension of trading at several UK open-ended retail property funds (also known as gating), and redemptions in one US ODCE fund, we explore this topic further and look into how investors can avoid being caught in gated property funds.

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2020, 13 January

Asset Allocation Outlook January

Having again noted a gain in December, the MSCI global equity index closed 2019 with a positive return of no less than 28.1%. That makes 2019 the best year of the past two decades. Investors in general asset classes could basically do little wrong in 2019. All these asset classes, from government bonds to real estate, posted positive returns.

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