Investing in MKB Fonds
MKB Fonds is the first Dutch investment firm to issue MKB Bonds and MKB Shares to private investors. This allows individual investors the opportunity to invest in a diversified portfolio of mature SMEs with a proven track record and a solid continuity perspective. By investing in MKB Fonds’ funds, capital flows into the SME sector to facilitate the transfer of a business to the next generation.
MKB Shares and MKB Bonds
Following successful issuances of MKB Bonds in 2012 and 2013, it became clear that there was considerable investor demand to become shareholders of the funds and thus indirectly invest in the SMEs supported by these funds. Consequently, it was decided to introduce MKB Shares alongside MKB Bonds in a new mixed-fund (‘Mixfonds’) structure, now standard for MKB Fonds’ funds. This combination of MKB Bonds and MKB Shares reinforces each other’s position. By issuing MKB Shares in the fund, the fund’s returns become available to equity investors, thereby reducing the risk profile of the MKB Bonds. Furthermore, with the support of bond investors, equity investors have a larger fund size for generating returns and achieving diversification. Through the blend of SME Shares and MKB Bonds, long-term investment in SMEs is made possible.
The interests of MKB Fonds are closely aligned with those of investors in its funds. As a co-shareholder in the funds, MKB Fonds receives (dividend) distributions only after all bond and equity investors in the fund have received their full investments (capital) and coupon interest.
Right balance between risk and return
In the mixed-fund structure, investors can decide whether they want to participate with bonds, shares, or a combination of both. This allows them to choose their ideal balance between risk and return. MKB Bonds have a fixed term, pay a capped interest rate, and take precedence over MKB Shares. MKB Shares are fully subordinated to MKB Bonds but participate in the fund’s profits.
Tradability
When you participate in the mixed funds of MKB Fonds, you will receive a personal account with Captin, formerly a part of Van Lanschot Kempen. Through Captin’s online trading platform, MKB Bonds are tradable quarterly, and MKB Shares are tradable semi-annually. The transaction costs amount to 1%.
Risks
Investing in any form entails financial risks. By purchasing a bond, you are providing a loan to the issuing institution, thereby exposing yourself to, among other things, credit risk. Consequently, the repayment may be lower than the principal amount. For a comprehensive overview of the risks, we refer you to the prospectus. By purchasing a share, you are providing risk-bearing (subordinated) capital. The primary material risk specific to shares is market risk.
For a detailed description of the risks, please refer to the prospectus of the respective issuance.