Euro credit

Corporate credits – with an investment grade rating

Objective

We aim to earn an attractive total return over the longer term while lowering the carbon footprint. We invest primarily in Euro-denominated corporate credits – that have a minimum BBB- investment-grade rating and are demonstrably aligned with the transition to a sustainable economy.

Philosophy

In our view:

the European investment-grade market is inefficient and contains mispricings which can be identified and traded;
an active investment and risk management approach is best placed to secure attractive yields for investors, as well as create and preserve additional value by capitalising on these mispricings; and
businesses demonstrably aligned with the transition to a sustainable economy are likely to be more resilient – and therefore better credits – over the long term.

Approach

Our experienced team follows a systematic process that blends quantitative and qualitive expertise and experience and seeks to:

identify corporate issuers where the potential for credit profile enhancement is not yet reflected in the spreads and avoid those where we anticipate credit deterioration;
apply an active top-down and bottom-up approach to macro and fundamentals analysis to construct and risk manage a diversified portfolio of credits; and
focus on a sub-set of issuers demonstrably aligned with the transition to a sustainable economy, including on carbon-intensity metrics.

Euro Credit Insights

Kempen Euro Sustainable Credit Stategy

Generating sustainable Alpha

Credit markets are notoriously unpredictable and delivering a steady investment journey over the long-term is a challenge for every credit investor. We tackle this using a distinctive investment approach we call ‘Alpha by Control’. While we actively seek out opportunities to deliver alpha, our approach is also optimised to control risks.

Learn more

Learn more about our Credit funds

Kempen (Lux) Euro Credit Fund I Kempen (Lux) Euro Sustainable Credit Fund I

Fund library

Please visit our fund library for detailed information on our funds. For more sustainability-related information, please refer to the sustainability-related information section of the fund library

Go to fund library

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. Past performance provides no guarantee for the future.

There’s a saying in Dutch, Kom verder, it means many things and it’s our business philosophy. It captures the way we work with clients but also the way we steer our investee companies to deliver shareholder value through active engagement.

Van Lanschot Kempen Investment Management (UK) Limited is registered in England & Wales with registration number 02833264. Registered office at 20 Gracechurch Street, London, EC3V 0BG Tel: +44 (0)20 3636 9400. Authorised and regulated by the Financial Conduct Authority (FCA) with reference number 166063.