Kempen Lux Euro Sustainable Credit Fund - Class AN

Profile

Kempen International Funds SICAV - Kempen (Lux) Euro Sustainable Credit Fund (the Fund) invests primarily in credits that have an investment grade rating (of minimal BBB-) and are denominated in Euros. In addition, these companies must comply with strict sustainability criteria. The Fund may invest a small part in credits that are not included in the benchmark.

The benchmark, the Markit iBoxx Euro Corporates Index, only includes bonds with an investment grade rating. The Fund aims to earn a higher total long term return than the benchmark by implementing an active investment policy. In order to achieve this, a diversified portfolio is constructed and investment risks are continuously monitored. Investments are selected on the basis of extensive analysis of the terms and conditions of the bond issues.

In the interest of the shareholders it has been decided to soft open the Fund as per 28 June 2018. As per June 2018 the Fund will continue to accept daily inflow below EUR 10 million from all investors. For investments greater than EUR 10 million please contact the Fund’s relationship manager. Redemptions will still be possible. More information about the soft open can be found in the Notice to shareholders in the tab Documents.

Management team

Alain van der Heijden, Rik den Hartog, Harold van Acht, Sipke Moes, Luuk Cummins, Pim van Mourik Broekman, Quirijn Landman, Marco Zanotto

Performance per 2020-07-31 (rebased)

No chart data available

Performance per 2020-07-31

Slide to see more
  Fund Benchmark
1 month 1.5 % 1.5 %
3 months 3.1 % 3.0 %
This year 1.2 % 0.3 %
2018 -0.4 % -0.8 %
2019 6.2 % 6.3 %
1 year (on annual basis) 0.4 % -0.4 %
Since inception (on annual basis) i 3.7 % 2.9 %
Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. 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

Slide to see more
Total fund size
EUR 941.96 M 2020-07-31
Share class size
EUR 2.08 M 2020-07-31
Number of shares
77,535 2020-07-31
Net Asset Value i
EUR 26.79 2020-08-14
Turnover rate
227.38 %
The turnover rate figure is per the end of the financial year of the fund and will be updated once a year.

Fund characteristics per 2020-07-31

Slide to see more
  Fund Benchmark
Number of holdings 300 3056
Duration i 5.4 5.3
Yield to maturity 0.7 % 0.7 %
Weighted rating A- A-
Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Developments per 2020-07-31

In July, the spread on the iBoxx Euro Corporate Index tightened by 20 basis points to 137 basis points above the government bond curve. The index earned an absolute return of +1.50%. German 10-year government bond yields closed July at -0.52%, representing a decrease of 6 basis points compared to the end of June.

During the month, the number of daily new cases of Covid-19 infections in the US reached a level of more than 70,000. This raised concerns that state and local governments may need to enforce much stricter social-distancing measures with potentially negative consequences for near-term economic growth. In contrast to the previous month, when it seemed Europe had successfully dealt with the threat of the virus, there was also a clear pick-up in the number of new infections in various European countries. Whilst the impact on national healthcare systems has so far been muted, given a higher prevalence of relatively young people amongst the newly infected, policymakers are warning about a “second wave” of infections hitting their countries later this year as temperatures decline and people spend more time indoors.

In the US, discussions about additional stimulus measures to address the economic fall-out of the virus continued between the White House and the two houses of Congress. The main points of contention include the size and length of unemployment benefits, financial aid to state and local governments, and liability protections for corporations. In addition to making statements downplaying the potential for interest rates to be increased anytime soon, Federal Reserve chairman Jerome Powell voiced support for Congress to implement further fiscal stimulus and support for the unemployed and small businesses. Until now, the US government is estimated to have spent more than USD 3 trillion in addressing the health-care and economic ramifications of the Corona-crisis.

In Europe, a historic agreement was reached to establish a EUR 750bln corona-virus recovery fund, which will be funded through bonds issued by the European Union itself rather than the bloc’s individual member states. Importantly, the largest part of the funds will be distributed as grants to member states and not as loans, thereby preventing an excessively rapid build-up of additional debt in already highly levered countries such as Italy and Greece. The agreement represents a deepening in the level of integration within the European Union and was received positively by the markets, as it greatly reduces the probability of an eventual Eurozone break-up.

On the corporate front, non-financial companies generally posted better than expected quarterly results, albeit that the lack of formal Q2 earnings guidance by management teams meant analyst expectations varied widely. For the most part, management teams noted that activity levels had steadily improved during the quarter from a trough in April. More worrisome, however, were the results of banks, particularly those lacking meaningful investment banking & trading operations which are thriving, as loan loss provisions came in much higher than expected. Bank management teams warned that any premature removal of government support packages (e.g. the partial funding of salaries of temporarily idled workers) could result in a significant pick-up in defaults and asset quality problems within the banking sector.

During the month, bonds issued by non-financial companies, particularly in the media and automotive sectors performed strongly. Subordinated bonds issued by insurance companies also performed well. By contrast, bonds issued by companies operating in the oil & gas, construction materials and technology sectors underperformed. Nonetheless, all sectors experienced spread tightening.

The supply of new bonds was EUR 28 billion in July, representing a 72% decrease compared to June and a 20% decrease compared to the year-earlier period. Non-financial sector companies issued EUR 17 billion in new bonds last month, while financial sector companies issued EUR 11 billion in new bonds. During the first seven months of this year, a total of EUR 424 billion of bonds was issued. This represents a 30% increase compared to the year-earlier period.

During the month the portfolio’s sensitivity to market trends varied between 100% and 104%. The portfolio therefore held a neutral to slight overweight positioning in terms of market risk.

Our positioning in the telecom, infrastructure and food & beverage sectors performed relatively well in July. In contrast, our positioning in the banks, utilities and basic resource sectors contributed negatively. Our liquidity position (in the form of cash and government bonds) had a negative impact.

At individual company level, positive contributions came from the overweights in Verizon Communications, Pepsi, Medtronic, AT&T and DSV Panalpina, as well as from not having any exposure to Mohawk Industries. By contrast, our overweights in short-dated bonds issued by Bank of America, Morgan Stanley and subsidiaries of Banco Santander, as well as from our underweights in AB Inbev (excluded) and Volkswagen (excluded) contributed negatively.

In July, the Fund participated in new bond issues from National Grid, UNIQA Insurance Group, Fraport, Logicor, Merlin Properties, UniCredit and De Volksbank.

The bond issued by the Netherlands-based banking group De Volksbank was the first lower tier-2 “green bond” issued in the European market. Proceeds from this bond will be allocated to a green loan portfolio of new and existing loans that support the group’s efforts to reach a 100% climate-neutral balance sheet by 2030.

Outlook
Despite the rise in the number of daily new Covid-19 infections, we remain relatively constructive on the market as a result of data that continues to suggest economic growth has bottomed. Furthermore, we view favorably the greater emphasis being placed by management teams on bondholder interests as opposed to near-term shareholder interests. Finally, the technical backdrop remains very robust as a result of the ECB’s willingness and ability to pump liquidity into the government and corporate bond markets.

Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Performance per 2020-07-31 (rebased)

No chart data available

Performance per 2020-07-31

Slide to see more
  Fund Benchmark
1 month 1.5 % 1.5 %
3 months 3.1 % 3.0 %
This year 1.2 % 0.3 %
2018 -0.4 % -0.8 %
2019 6.2 % 6.3 %
1 year (on annual basis) 0.4 % -0.4 %
Since inception (on annual basis) i 3.7 % 2.9 %
Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The value of your investments may fluctuate. Past performance provides no guarantee for the future.

Dividends

Slide to see more
Distributing
No
Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Maturity profile (2020-07-31)

Fund
Benchmark
24.5 %
3-5 year
26.8 %
23.9 %
5-7 year
21.0 %
19.0 %
0-3 year
25.0 %
16.4 %
7-10 year
17.0 %
12.6 %
> 10 year
10.2 %
3.6 %
Cash
0.0 %
Total
100 %
100 %

Sector allocation (2020-07-31)

29.1 %
Banks
13.7 %
Consumer Goods & Services
11.6 %
Utilities
10.2 %
Telecom & Technology
7.6 %
Industry
7.3 %
Health Care
6.9 %
Financial Services & Real estate
4.2 %
Insurance
3.3 %
Other
2.5 %
Energy
1.9 %
Sovereign bonds
1.7 %
Basic Materials
0.1 %
Asset Backed Securities
Total
100 %
The cash position is included in ‘Other’.

Rating allocation (2020-07-31)

Fund
Benchmark
1.9 %
AAA
0.4 %
3.6 %
AA
10.8 %
35.9 %
A
39.5 %
50.4 %
BBB
49.4 %
3.2 %
BB
0.0 %
1.4 %
Not Rated
0.0 %
3.6 %
Cash
0.0 %
Total
100 %
100 %
The rating allocation of the Fund is based on the Bloomberg Composite method. The rating allocation of the benchmark is based on the rating allocation used by provider Markit iBoxx.

Top 10 holdings (2020-07-31)

1.7 %
0.375% KFW 2015-30
1.3 %
3.875% Eurogrid 2010-20
1.2 %
1.500% Enexis 2015-23
1.2 %
2.000% Daimler 2020-26
1.1 %
0.736% Bank of America 2017-22
1.1 %
1.600% AT&T 2020-28
0.9 %
1.375% Terna 2017-27
0.9 %
0.750% PSA Banque France 2018-23
0.9 %
1.950% American Honda 2020-24
0.8 %
0.625% BPCE 2018-23
Total
11.1 %
Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

 

SWING FACTORS

An overview of the current swing factors are available here.

Ongoing charges

Slide to see more
Management fee i
0.32 %
Service fee i
0.10 %
Taxe d'abonnement i
0.05 %
Expected ongoing charges i
0.47 %
Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Share class details

Slide to see more
Share class
AN i
Investor type
Private
Distributing
No
Benchmark i
Markit iBoxx Euro Corporates Index
Duration hedged
No
Investment category
Credits
Universum
European credits
Inception date
2018-09-20
Domicile
Luxembourg
May be offered to all investors in
Belgium, France, Luxembourg, The Netherlands, United Kingdom
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

Slide to see more
Minimum subscription
Initial subscription €1
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU0979490777
Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.
Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Kempen's vision and 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:

  • ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.

  • Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.

  • 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

  • Positive impact: Investing with an objective to achieve positive real world outcomes and impact, such as contributing to the UN Sustainable Development Goals.6

Â

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.

Â

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.

Â

Our full voting records are available here.

Â

OUR FUND APPROACH TO RESPONSIBLE INVESTMENT

Kempen (Lux) Euro Sustainable Credit Fund primarily aims to generate a long-term return in excess of the Markit iBoxx Euro Corporates Index (the “Benchmark”), comprising capital growth and income, by investing in corporate bonds issued by companies which comply with strict sustainability criteria.

Â

We strive to invest in companies that have a lower carbon intensity than their sector peers, or in companies that are willing and able to considerably lower their carbon intensity to a level below their sector peers – ideally in line with the Paris goals. We encourage this via continuing engagements with companies, clients, investors and other stakeholders.

Â

Kempen’s ESG policy is implemented in our fund’s investment process by the following pillars: Exclusion, Integration and Active ownership.

Â

Exclusion & Avoidance

In line with the general Kempen policy, the Kempen (Lux) Euro Sustainable Credit Fund excludes all companies on the KCM Exclusion- or Avoidance list.

Â

Companies that ‘Fail’ marked against the criteria of the United Nations Global Compact or those companies that attract a red flag on the MSCI ESG impact monitor are excluded.

Â

Companies scoring an MSCI ESG rating CCC are excluded. Companies that score a MSCI ESG rating of B are excluded on a comply or explain basis.

Â

The Kempen (Lux) Euro Sustainable Credit Fund also excludes companies based on additional sustainability criteria as listed in the table below.

Â

More information on our exclusion criteria and thresholds can be found here.

Â

EXCLUSION CRITERIA KEMPEN (LUX) EURO SUSTAINABLE CREDIT FUND

Â

KEMPEN CRITERIA

ADDITIONAL SUSTAINABILITY CRITERIA

Business Conduct

Â

Â

x    Human Rights

v

Â

x    Labour

v

Â

x    Environment

v

Â

x    Anti-corruption

v

Â

Product Involvement

Â

Â

x    Controversial Weapons

v

Â

x    Tobacco

v

Â

x    Adult Entertainment

Â

v

x    Alcohol

Â

v

x    Animal Welfare & GMO

Â

v

x    Gambling

Â

v

x    Power Generation Nuclear

Â

v

x    Power Generation Carbon Intensive

Â

v

x    Thermal Coal

Â

v

x    (Un)conventional Oil & Gas Extraction

Â

v

x    Weaponry

Â

v

Â

ESG Integration

The assessment of companies’ ESG profiles is an integral part of our investment process. We assess each company on a case-by-case basis, taking into account material risks in a given industry in combination with the company’s respective risk exposure, practices and disclosure.

Â

A low score on ESG criteria can result in the demand for an additional premium on the company’s bonds and/or initiation of an engagement with the issuer. If ESG risks are deemed too severe, an investment in the company will be avoided and/or existing holdings will be sold.

Â

On a quarterly basis, the Kempen Responsible Investment team screens the holdings of the Kempen Euro Credit Strategies, and discusses the findings with the portfolio managers.

Â

Active Ownership

As active investors we perform comprehensive engagements with our portfolio companies with the objective to unlock value and reduce risk.

Â

Our engagement process defines clear objectives of which the progress and result is tracked and well documented. If at any stage the company refuses to cooperate, divestment has to be considered.

Â

Engagement examples can be found here

Â

Â

Risks

For more information about the mid and long term risks associated with the investments:

Â

*

Although Kempen Capital Management N.V.’s information providers, including without limitation, MSCI ESG Research LLC and its affiliates (the “ESG Parties”), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of any data herein. None of the ESG Parties makes any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

ESG Report
Febelfin
Label ISR
Screening MSCI ESG Research
Screening MSCI ESG Research
UN global impact
Bron EN
disclaimer
Kempen (Lux) Euro Sustainable Credit 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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.