Kempen European High Dividend Fund N.V. - Class X

Profile

Kempen European High Dividend Fund N.V. (KEHDF) offers a diversified portfolio of European listed companies with an expected dividend yield of 2.75% at the time the company purchased for the first time. KEHDF invests in companies that are listed or do business in geographical Europe including Eastern Europe and Russia. The portfolio contains around 55 investments, which are approximately equally weighted.

KEHDF primarily aims to generate a better long-term total return than the MSCI Europe Total Return Index (net dividends reinvested), comprising capital gains plus net dividends. This index consists of about 500 companies in 15 countries.

KEHDF pays its dividend on a quarterly basis and aims to pay all the received net dividends to the shareholders. Share class X will only be available for distributors who submit orders on behalf of their clients, and who have been selected by the management company.

Management team

Jorik van den Bos, Joris Franssen, Joost de Graaf, Dimitri Willems, Luc Plouvier, Floris Oliemans

Performance per 2019-03-31 (rebased)

No chart data available

Performance per 2019-03-31

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  Fund Benchmark
1 month 1.1 % 2.0 %
3 months 10.3 % 12.8 %
This year 10.3 % 12.8 %
2016 3.5 % 2.6 %
2017 11.0 % 10.3 %
2018 -7.8 % -10.6 %
1 year (on annual basis) 6.0 % 5.5 %
3 years (on annual basis) i 7.6 % 7.0 %
5 years (on annual basis) i 4.8 % 5.3 %
Since inception (on annual basis) i 1.6 % 1.4 %
The results shown of the periods before 7 September 2016, the inception date of Kempen European High Dividend Fund N.V. class X, are those of Kempen European High Dividend Fund N.V. class N. 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. The dividend distribution of KEHDF (ex-date 01-08-2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 589.25 M 2019-03-31
Share class size
EUR 64.21 M 2019-03-31
Number of shares
9,163,596 2019-03-31
Net Asset Value i
EUR 7.31 2019-04-25
Transaction price i
EUR 7.30 2019-04-25
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Fund characteristics per 2019-03-31

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  Fund Benchmark
Number of holdings 55 439
Dividend yield i 5.02 % 3.59 %
Weighted average market capitalization i EUR 41,090 M EUR 69,775 M
P/E ratio i 11.73 15.90
Active share i 81.93 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Market developments per 2019-03-31

During March, shares in Europe continued their upward path. Year-to-date European equities have now gained more than what one would normally expect in an average year. KEHDF lagged the strong equity market, which is not uncommon for a more defensive value oriented strategy.

The market was still in a positive mood because of the same reasons mentioned during previous months. In particular the announcement by the Fed (about a slower path of potential interest rate hikes) still helped the market. Bond yields even fell further in March that pushed shares further up.

Almost every sector ended the month in the plus, with financials being the exception. The best performing sectors was by far consumer staples. As mentioned, KEHDF lagged the strong market, as mainly sector allocation detracted from the performance. Allocation was negative mainly because of its allocation to the financial sector, while we are underweight the consumer staples sector. The latter sector does not offer a lot of attractively valued, high dividend yielding stocks. Stock selection was slightly positive, in particular within healthcare, financials and communication services.

Portfolio developments per 2019-03-31

In March we implemented the quarterly rebalance. We sold four positions completely, while we added two new names to the portfolio. Novo Nordisk was sold after the strong performance, while it also fell below our 2.5% dividend yield threshold. Tate & Lyle was sold as the valuation was not very attractive anymore. Boskalis was sold after it lowered its dividend (although they also introduced a share buy-back). However, the 2019 outlook was disappointing. Centrica was sold after it again reported falling customer numbers and an increased risk for the future dividends. We added Danone, the French food manufacturing company. It is active in quite some attractive beverage categories. We also added Swiss watch producer Swatch, that offered an attractive entry point after the recent weak share price performance.

We believe overall global stock market valuations are elevated, although the European markets still offer some pockets of attractively valued opportunities. A company may appear attractive based on its price to earnings ratio or other headline multiple, but if margins and/or revenues are high, this only gives you limited information about the future returns of an investment. In our investment process we spent a large portion of our time understanding where profitability should be on an over the cycle basis, as this is what determines the cash flows we will receive as a long term shareholder.

Our focus is on finding companies with sustainable dividends that can be bought at a discount to our estimate of intrinsic value. We base our estimate on the Earnings Power Value (EPV) framework of the Columbia Business School. EPV allows us to separate the three valuation components: asset value, earnings power and growth value. This framework improves our ability to analyze what we are paying for, and gives insight into whether a stock is priced with a margin of safety. In addition, ESG (Environmental, Social and Governance) is fully incorporated in our investment process.

KEHDF now has a forward yield of around 5.3%.
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Performance per 2019-03-31 (rebased)

No chart data available

Performance per 2019-03-31

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  Fund Benchmark
1 month 1.1 % 2.0 %
3 months 10.3 % 12.8 %
This year 10.3 % 12.8 %
2016 3.5 % 2.6 %
2017 11.0 % 10.3 %
2018 -7.8 % -10.6 %
1 year (on annual basis) 6.0 % 5.5 %
3 years (on annual basis) i 7.6 % 7.0 %
5 years (on annual basis) i 4.8 % 5.3 %
Since inception (on annual basis) i 1.6 % 1.4 %
The results shown of the periods before 7 September 2016, the inception date of Kempen European High Dividend Fund N.V. class X, are those of Kempen European High Dividend Fund N.V. class N. 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. The dividend distribution of KEHDF (ex-date 01-08-2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.

Dividends

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Distributing
Yes
Last dividend
EUR 0.09
Ex-date last dividend
2019-02-13
Number of distributions per year
4
Dividend calendar
The dividend distribution of KEHDF (ex-date 01-08-2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.

Risk analysis (ex post) per 2019-03-31

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  3 years Since inception
Maximum drawdown i -9.85 % -56.33 %
Tracking error i 2.71 % 2.96 %
Information ratio i 0.20 0.09
Beta i 0.89 0.93
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Top 5 contribution (2019-03-31)

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  Contribution i Performance i
Hennes & Mauritz -B- 0.23 % 11.73 %
Rio Tinto 0.22 % 10.06 %
Proximus 0.21 % 10.69 %
Lukoil (US) 0.20 % 9.24 %
Novo Nordisk 0.19 % 9.31 %

Bottom 5 contribution (2019-03-31)

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  Contribution i Performance i
EasyJet -0.21 % -9.53 %
ING Groep -0.15 % -7.43 %
Valeo -0.14 % -6.85 %
ABN AMRO Holding -0.10 % -5.99 %
Arcadis -0.10 % -6.01 %

Geographic allocation (2019-03-31)

23.9 %
United Kingdom
12.9 %
France
10.3 %
Netherlands
8.0 %
Germany
6.3 %
Switzerland
6.0 %
Sweden
4.6 %
Russia
4.3 %
Portugal
3.9 %
Norway
3.3 %
Belgium
3.3 %
Italy
3.3 %
Finland
3.4 %
Cash
6.8 %
Overig
Total
100 %

Top 10 holdings (2019-03-31)

2.3 %
ING Groep
2.3 %
Galp Energia
2.2 %
Roche Holding
2.2 %
Nokia
2.1 %
Hennes & Mauritz -B-
2.1 %
Lukoil (US)
2.1 %
ABN AMRO Holding
2.1 %
Renault
2.0 %
Rio Tinto
2.0 %
Nationale Nederlanden Group
Total
21.5 %

Sector allocation (2019-03-31)

27.1 %
Financials
13.5 %
Oil & gas
12.0 %
Consumer goods
9.0 %
Telecommunications
8.8 %
Consumer services
8.5 %
Basic Materials
7.5 %
Utilities
4.3 %
Health Care
3.9 %
Industrials
3.4 %
Other
2.2 %
Technology
Total
100 %
The cash position is included in ‘Other’.
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Ongoing charges

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Management fee i
0.40 %
Service fee i
0.15 %
Expected ongoing charges i
0.55 %
Ongoing charges last financial year i
0.50 %
The Ongoing Charges Figure of the last financial year relates to 2017/2018.

The service fee is determined annually on basis of the net asset value as of the last day of the previous financial year:
< or equal to EUR 200 million: 0.20%
Between EUR 200 million and EUR 700 million: 0.15%
>EUR 700 million: 0.10%
The service fee has been increased by 0.05% as of 1 October 2018. The expected ongoing charge factor of Fiscal Year 2018/2019 is therefore also increased by 0.05%.

Performance fee

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Potential performance fee
0 % - 0.20 %
Current performance fee
0.07 % per March 2019
Performance fee last financial year
0.03 %
The level of the performance fee is determined on a montly basis, based on the performance relative to the benchmark and does not exceed 0,20%.

Other costs

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Upward swing factor i
0.30 %
Downward swing factor i
0.15 %
As of 14 January 2019 the swing factor has been adjusted from 0.40%/0.15% to 0.30%/0.15%.
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Share class details

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Share class
X
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
MSCI Europe Total Return Index (calculated in Euro)
Investment category
High Dividend Equity
Universum
European equities
Inception date
2016-09-06
Domicile
The Netherlands
May be offered to all investors in
The Netherlands
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Administrator
BNP Paribas Securities Services S.C.A.
Management company
Kempen Capital Management N.V.
Depositary and custodian
BNP Paribas Securities Services S.C.A.
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Tradability

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Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
NL0011843164
Details
Orders must be submitted via Vestima.
Class X of Kempen European High Dividend Fund N.V. will only be available for orders submitted via the Vestima platform. Share class X will only be available for distributors who submit orders on behalf of their clients, and who have been selected by the management company.
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

KCM Vision

Kempen Capital Management is an asset manager with a long-term investment approach. We strongly believe in engaged shareholdership that benefits all stakeholders. As a long-term responsible investor, we firmly believe that active ownership and shareholder engagement contribute to positive change across the board.

Our KCM wide approach to responsible investment

To put our vision into action we engage with our investment targets on a wide array of strategic, financial, environmental, social and governance (ESG) topics. Our long-term investment worldview paired with thorough analysis and an experienced and diverse ESG team allow us to use both voting and engagement as means to consistently encourage positive change. Through this process of constructive engagement, we are able to contribute to the development of principles and standards of corporate responsibility within companies that we invest in. Our full voting records are available here.

Our fund approach to Responsible Investment

  • ESG is integrated in our investment process.
  • Portfolio managers (PM's) have access to ESG research via the database from MSCI ESG Research and via FactSet.
  • Prior to investment, our PM's assess the ESG performance of the company. If material ESG concerns are identified, this can result in the decision to quantify the ESG risks into the investment model, to engage with a company or to avoid investment.
  • In case of engagement, the PM and the Responsible Investment Department will start a dialogue with the company. The aim of the engagement is to use our influence as a shareholder to encourage positive change.
  • During the quarterly re-balancing process the PM's monitor the ESG performance of the holdings.

Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.