Kempen European Sustainable Equity Fund NV

Profile

Kempen European Sustainable Equity Fund NV (KESEF) is primarily created for long-term investors and offers the opportunity to invest in a diversified portfolio of European publicly traded shares of companies open to stakeholders and environmental, social and governance criteria in their strategy. KESEF aims to select investments focusing on long-term and sustainable growth.

Investments in the fund are screened by an independent data provider to assess compliance with environmental, social and governance (ESG) criteria. KESEF will only invest in companies with an ESG rating of at least BB or a similar rating. On June 28, 2021, the name of this fund was changed from Kempen European Sustainable Value Creation Fund NV into Kempen European Sustainable Equity Fund NV.

 

Kempen Capital Management N.V. will merge this fund with the equivalent Luxembourg fund on 16 December 2022.

Click here for more information.

Management team

Ivo Kuiper, Herman Kleeven, Richard Klijnstra, Mark Oud, Martijn Kleinbussink, Raoul Martin

Performance per 2022-10-31 (rebased)

No chart data available

Performance per 2022-10-31

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  Fund Benchmark
1 month 7.3 % 6.2 %
3 months -8.4 % -5.3 %
This year -18.7 % -12.2 %
2019 29.9 % 26.0 %
2020 5.1 % -3.3 %
2021 32.3 % 25.1 %
1 year (on annual basis) -15.6 % -9.7 %
3 years (on annual basis) i 5.3 % 3.6 %
5 years (on annual basis) i 6.0 %
Since inception (on annual basis) i 6.0 % 3.9 %
Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The performance figures shown in the graph are rebased. 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

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Total fund size
EUR 335.67 M 2022-10-31
Share class size
EUR 335.67 M 2022-10-31
Number of shares
2,676,775 2022-10-31
Net Asset Value i
EUR 127.79 2022-12-05
Transaction price i
EUR 128.23 2022-12-05

Fund characteristics per 2022-10-31

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  Fund Benchmark
Number of holdings 32 429
Dividend yield i 2.59 % 3.39 %
Weighted average market capitalization i EUR 70,277 M EUR 85,814 M
P/E ratio i 18.79
Active share i 83.47 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen European Sustainable Equity Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

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

Developments per 2022-10-31

The fund earned a net return of 7.3% in October versus a return on the MSCI Europe Index of 6.2%. This brings the net return over the year so far to -18.7% versus a return on the MSCI Europe Index of -12.2%.

Since its inception the fund has outperformed the benchmark (6.0% versus 3.9% for the MSCI Europe Index) including on a 3-year basis (5.3% versus 3.6% for the MSCI Europe Index). The fund will celebrate its fifth birthday and achieve a 5-year track record in November.

The tech, consumer discretionary and healthcare sectors made the largest positive contributions to the return, while the biggest negative contribution came from the industrial sector. The allocation effect was negative for the month, while the selection effect was positive.

EssilorLuxottica, SAP and Allianz accounted for the largest positive contributions to the result. EssilorLuxottica, the world’s biggest manufacturer and distributor of lenses, frames and sunglasses published its third-quarter results. The company held up better than expected in the difficult economic climate, with both revenue and earnings causing positive surprises. Strong growth in the APAC region and a good summer contributed to the positive results.

Roche, Reckitt Benckiser and Kerry Group made the biggest negative contributions to the result. Kerry Group produces and distributes food products and ingredients. The company achieved growth of 6.6% in the third quarter thanks to a combination of raising prices and increasing volumes. Yet even so this was not enough to compensate for cost-push inflation, leading to a downward adjustment to its outlook for net profit.

No changes were made to the portfolio in October.


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What kind of companies do we seek?

We seek profitable companies undergoing structural growth that will create shareholder value in the long term alongside a clear social mandate.

The best results are achieved if the interests of all the stakeholders are aligned. This requires not only products and services but also operations to be in line with the wishes and requirements of society (licence to operate). Moreover, the companies need to have sufficient opportunities for growth to be able to invest at an attractive return (innovation and expansion). In order to sustain earnings growth over the long term, companies need to enjoy sustainable competitive advantages compared to existing and new competitors (strong strategic position).

The role of management

We expect management to pursue a long-term strategy in addition to conducting sound day-to-day management. The risks and opportunities relating to ESG need to be clearly incorporated, backed up by sensible investment plans that respond to long-term trends and match the company’s strategic positioning and growth opportunities.

Quality and valuation

We believe the selected companies are above-average quality in terms of strategy and operations and are capable of creating long-term value for all stakeholders. Depending on the absolute valuation of their equities, they could form an interesting long-term addition to the portfolio.

 

ESG

ESG MSCI ratings

The portfolio has a clear overweight in the leaders (AAA/AA) and does not invest in the laggards (B/CCC).

Source: MSCI

 

KCM versus Sustainalytics ESG risk rating

The portfolio is not invested in companies with a high or severe ESG risk according to the KCM risk rating.

Source: Sustainalytics. KESVC* according to KCM ESG risk rating, KESVC** and MSCI Europe according to Sustainalytics ESG risk rating

 

SDG Solutions Exposure

The SDG Solutions Assessment identifies a product or service category’s contribution or obstruction towards attaining each of 15 individual sustainability objectives. A company has a score between -10 (significant obstruction) and +10 (significant contribution). The SDG Solutions score for the portfolio is 3.21 versus 0.65 for the benchmark.

Source: ISS

Kempen Capital Management N.V. (KCM) is the management company of Kempen European Sustainable Equity Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

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

Performance per 2022-10-31 (rebased)

No chart data available

Performance per 2022-10-31

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  Fund Benchmark
1 month 7.3 % 6.2 %
3 months -8.4 % -5.3 %
This year -18.7 % -12.2 %
2019 29.9 % 26.0 %
2020 5.1 % -3.3 %
2021 32.3 % 25.1 %
1 year (on annual basis) -15.6 % -9.7 %
3 years (on annual basis) i 5.3 % 3.6 %
5 years (on annual basis) i 6.0 %
Since inception (on annual basis) i 6.0 % 3.9 %
Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The performance figures shown in the graph are rebased. The value of your investments may fluctuate. Past performance provides no guarantee for the future.

Dividends

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Distributing
Yes
Last dividend
EUR 1.72
Ex-date last dividend
2022-02-28
Number of distributions per year
1
Dividend calendar

Risk analysis (ex post) per 2022-10-31

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  3 years Since inception
Maximum drawdown i -18.85 % -18.85 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen European Sustainable Equity Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

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

Maturity profile (2022-10-31)

1.1 %
Cash
98.9 %
Other
Total
100 %

Geographic allocation (2022-10-31)

28.8 %
United Kingdom
15.8 %
Germany
13.1 %
Netherlands
10.7 %
Denmark
10.1 %
Switzerland
9.7 %
France
4.3 %
Sweden
3.9 %
Ireland
2.6 %
Norway
1.1 %
Cash
Total
100 %

Top 10 holdings (2022-10-31)

4.9 %
EssilorLuxottica
4.8 %
SAP
4.8 %
Novo Nordisk
4.3 %
ASML
4.3 %
Roche Holding
4.3 %
Assa Abloy
4.3 %
AstraZeneca
4.2 %
Nationale Nederlanden Group
4.2 %
Siemens Healthineers
3.9 %
Allianz
Total
44.0 %

Rating allocation (2022-10-31)

98.9 %
Not Rated
1.1 %
Cash
Total
100 %

Sector allocation (2022-10-31)

21.2 %
Health Care
13.1 %
Industrial Goods & Services
11.4 %
Technology
11.4 %
Insurance
7.8 %
Food & Beverage
7.7 %
Chemicals
4.9 %
Basic Resources
4.9 %
Automobiles & Parts
4.8 %
Personal & Household Goods
3.9 %
Retail
3.3 %
Financial Services
2.4 %
Telecommunications
2.3 %
Travel & Leisure
1.1 %
Other
Total
100 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen European Sustainable Equity Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

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

Environmental and/or social characteristics promoted

The Kempen European Sustainable Equity Fund (the “Fund”) falls under the scope of article 8 of the SFDR which means that the Fund promotes environmental and/or social characteristics. While it does not have as its objective a sustainable investment, it will have a minimum proportion of the benchmark level of sustainable investments. The Fund considers principle adverse impact on sustainability factors.

The Fund promotes environmental characteristics related to:
• climate change mitigation and climate change adaptation in line with the Paris Climate Agreement;
• the protection of biodiversity and ecosystems;
• the transition to a circular economy.

The Fund promotes social characteristics related to:
• decent work;
• adequate living standards and wellbeing for end-users;
• other social topics such as gender equality and broader diversity matters.

The environmental characteristics promoted by the Fund seek to contribute to the achievement of the climate goals of the Paris Agreement and the National Climate Agreement of the Netherlands (‘Klimaatakkoord’). This decarbonization pathway encompasses short-term (2025) objectives, a mid-term (2030) ambition and a long-term commitment to be net zero by 2050. Although there has been no index designated as a reference benchmark, by 2025 the Fund aims to have a carbon intensity that is below the EU Paris Aligned Benchmark (EU PAB) pathway. This pathway assumes a carbon intensity that is 50% lower than the Fund's relevant benchmark in 2019 with a subsequent 7% annual reduction.

Fund carbon emission targets

ESG Investment process

The promotion of environmental and/or social characteristics is achieved through the consistent implementation of the Funds ESG policy. The ESG policy is fully implemented in our strategy’s investment process across the four relevant pillars of ESG pillars: Exclusion, ESG integration and, Active Ownership and Positive Impact.

In the investment process we assess the ESG profile of a company. We look at 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. This includes an assessment of good governance practices. The investee companies are rated for governance aspects using external research as well as making internal assessments. Furthermore, we look into the company’s exposure to past controversies and future ESG opportunities. Based on the Fundamental ESG analysis we form an opinion on the quality of a company’s ESG profile and award a score (1-5). We apply adequate due diligence measures when selecting the assets and such due diligence measures take into account ESG related risks as it could help to enhance long-term risk adjusted returns for investors, in accordance with the investment objectives of the Fund.

Exclusion

The product excludes at least 20% of the investment universe through the application of strict exclusion criteria. These take into account international standards, such as the UN Global Compact framework, the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles for Business and Human Rights, and our Principles for Responsible Investment commitments. The Fund applies additional exclusion criteria based on product involvement and business conduct. Furthermore, the Fund excludes companies with low ESG ratings.

Key figures

  Kempen criteria Additional criteria
Business conduct
Human Rights
Labour
Environment
Anti Corruption
Product involvement
Controversial Weapons
Tobacco
Thermal Coal
Tar Sands
Adult Entertainment
Alcohol
Animal Welfare & GMO
Gambling
Power Generation Nuclear
Power Generation Carbon Intensive
(Un)conventional Oil & Gas Extraction
Weaponry
Kempen Capital Management N.V. (KCM) is the management company of Kempen European Sustainable Equity Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. 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

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Management fee i
0.500 %
Service fee i
0.10 %
Expected ongoing charges i
0.60 %
Ongoing charges last financial year i
0.60 %
The ongoing charges figure of the last financial year relates to 2020/2021.
Kempen Capital Management N.V. (KCM) is the management company of Kempen European Sustainable Equity Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

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

Share class details

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Share class
N
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
MSCI Europe Net Total Return Index
Investment category
Sustainable Equity
Universe
European equities
Inception date
2017-11-13
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 S.A., Netherlands Branch
Management company
Kempen Capital Management N.V.
Depositary and custodian
BNP Paribas S.A., Netherlands Branch

Tradability

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Listed
yes, listed on the NAV Trading Facility of Euronext
Subscription/Redemption Frequency
Daily
ISIN i
NL0012512958
Kempen Capital Management N.V. (KCM) is the management company of Kempen European Sustainable Equity Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. 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 Sustainable Equity Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

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