Launched on 31 July, the Luxembourg-domiciled Kempen Euro High Yield Fund aims to offer a differentiated approach to high yield investing, with an investment process focused on quality and managing downside risk.
While the Sicav is managed on a team-based approach, it says final managerial responsibility falls on the group’s investment committee, which consists of Alain van der Heijden, Pim van Mourik Broekman and Rik den Hartog.
“The BB-rated segment of the high yield market has one of the most attractive risk-return profiles of all rating buckets – as it contains structural anomalies that provide opportunities for investors with a more flexible approach,” said den Hartog.“The combination with subordinated bonds improves the risk-return profile of the fund.”
He added: “High yield investors should take extra care to search for quality. Certainly now complacent markets could drive a disconnect between fundamentals and risk premia. The additional return gained by moving into more risky companies is at historically low levels, therefore hardly compensating for the additional risks involved. A focus on quality is at the heart of our philosophy.”
The fund is open for sale to institutional and wholesale investors, including retail banks, in the Netherlands and is offered in UK, Italy, Germany and France. Minimum investment for retail investors is €1,000.