Kempen Global High Dividend Fund - Class X

Profile

Kempen Global High Dividend Fund (KGHDF) offers a diversified portfolio of listed companies worldwide with an expected dividend yield of 3.3% at the time the company is purchased for the first time. The portfolio contains around 100 investments, which are approximately equally weighted. The environmental, social and governance (ESG) criteria are incorporated in the investment process.

The primary objective of KGHDF is to achieve a structurally better long-term return, comprising capital gains plus net dividends, than the MSCI World Total Return Index.

KGHDF pays out 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, Marius Bakker

Performance per 2020-10-31 (rebased)

No chart data available

Performance per 2020-10-31

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  Fund Benchmark
1 month -0.9 % -2.4 %
3 months 1.7 % 1.4 %
This year -21.6 % -5.0 %
2017 9.9 % 7.5 %
2018 -4.8 % -4.1 %
2019 20.4 % 30.0 %
1 year (on annual basis) -17.9 % -0.1 %
3 years (on annual basis) i -3.0 % 6.0 %
5 years (on annual basis) i 2.4 % 7.0 %
Since inception (on annual basis) i 4.8 % 6.8 %
The results shown of the periods before 10 May 2016, the inception date of Kempen Global High Dividend Fund N.V. class X, are those of Kempen Global 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 KGHDF (ex-date 01 August 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 736.85 M 2020-10-31
Share class size
EUR 175.44 M 2020-10-31
Number of shares
6,889,250 2020-10-31
Net Asset Value i
EUR 29.75 2020-11-25
Transaction price i
EUR 29.82 2020-11-25
Morningstar rating â„¢
Morningstar Analyst rating
Gold

Fund characteristics per 2020-10-31

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  Fund Benchmark
Number of holdings 94 1603
Dividend yield i 5.78 % 2.19 %
Weighted average market capitalization i EUR 34,623 M EUR 253,426 M
P/E ratio i 12.71
Active share i 94.20 %
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-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 2020-10-31

After the slightly negative market in September, global stocks lost more ground in October. Concerns about a second wave of the corona virus have become a reality. Several countries announced (partial) lockdowns, which increased the fear of continued negative impact on global economies. In a difficult time from macroeconomic perspective, KGHDF outperformed its benchmark, although year-to-date it still lags the broader market sharply as the focus on cash generative companies, with a healthy balance and attractive dividend yield did not pay off. KGHDF however, is performing better than the dividend universe, like for instance versus the Morningstar Developed Markets Dividend Yield > 3.0% NR (this is a representation of the high dividend universe).

KGHDF lags the benchmark sharply this year. The market continues to favor companies with short-term earnings quality rather than look at the potential to add value over the cycle. The dividend universe is overrepresented in the latter, presenting a very challenging environment for our strategy. Given the uncertain outlook, part of that short-termism is certainly justified. Much has been said about the ‘FAANG’ companies in the US already, a similar trend can be seen in Europe. Here a handful of companies (the GRANOLAS, among others Roche, Nestle, ASML) have greatly outperformed the rest of the market due to their defensive nature. However, it has resulted in a large valuation gap in the market. While some companies appear priced for perfection, others look priced for depression. We agree that several of those ‘quality’ companies have an attractive long-term outlook. They tend to have superior businesses and we have (had) our fair share in the portfolio over time. However, in our view even the best company is not a great investment at any price.

As many cyclical sectors have sold off across the board, we find opportunities in these sectors in companies that are cash generative, have market leading positions and embrace and benefit from digitalization and ESG trends. These companies are definitely not priced for that and are in our view a very interesting investment both in relative and absolute terms.

In September, we implemented the quarterly rebalance of KGHDF. Therefore this month trading was limited.

KGHDF benefited from a strong performance of Tapestry (owner of the Coach and Kate Spade brands). The share price rose more than 40% in October. A recovery from the weak performance earlier this year and quarterly results well above expectations. In particular China was a bright spot, with double-digit revenue growth compared to last year.

Danone was a poor performer. The company’s water business was negatively impacted by less out of home sales due to lockdowns. This had an impact on both the volumes as margins as premium brands are served in bars and restaurants. Danone remains very well positioned to benefit from positive long-term trends in its categories water, (plant-based) dairy and nutrition. The company has market leading positions, valuation is very attractive and offers a dividend yield close to 4.5%.

We currently expect a forward dividend yield of around 5% for KGHDF. Obviously, this number is indicative and based on current figures with an outlook filled with uncertainties and therefore based on conservative estimates. Based on those estimates we foresee a 10% increase in dividends next year.

KGHDF trades at an exceptional discount versus the market. Historically, this has led to a strong relative performance on the medium-term. Also, the absolute valuation of the strategy is compelling. In summary, the current environment offers the opportunity to buy a well-diversified portfolio with solid earnings power at an attractive valuation.

Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-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 2020-10-31 (rebased)

No chart data available

Performance per 2020-10-31

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  Fund Benchmark
1 month -0.9 % -2.4 %
3 months 1.7 % 1.4 %
This year -21.6 % -5.0 %
2017 9.9 % 7.5 %
2018 -4.8 % -4.1 %
2019 20.4 % 30.0 %
1 year (on annual basis) -17.9 % -0.1 %
3 years (on annual basis) i -3.0 % 6.0 %
5 years (on annual basis) i 2.4 % 7.0 %
Since inception (on annual basis) i 4.8 % 6.8 %
The results shown of the periods before 10 May 2016, the inception date of Kempen Global High Dividend Fund N.V. class X, are those of Kempen Global 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 KGHDF (ex-date 01 August 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 0.33
Ex-date last dividend
2020-08-06
Number of distributions per year
4
Dividend calendar
The dividend distribution of KGHDF (ex-date 01 August 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 2020-10-31

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  3 years Since inception
Maximum drawdown i -29.45 % -42.78 %
Tracking error i 6.84 % 4.79 %
Information ratio i -1.31 -0.42
Beta i 1.04 0.94
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-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.

Top 5 contribution (2020-10-31)

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  Contribution i Performance i
Tapestry 0.50 % 43.17 %
Huntington Bancshares 0.19 % 14.61 %
MSC Industrial Industrial A 0.14 % 10.82 %
Citizens 0.13 % 10.10 %
US Bancorp 0.12 % 9.37 %

Bottom 5 contribution (2020-10-31)

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  Contribution i Performance i
Danone -0.17 % -14.16 %
Galp Energia -0.15 % -12.11 %
BP -0.14 % -12.10 %
GlaxoSmithKline -0.13 % -10.42 %
AGL Energy -0.12 % -9.62 %

Geographic allocation (2020-10-31)

25.8 %
United States
9.6 %
United Kingdom
5.9 %
France
5.6 %
Japan
5.6 %
Netherlands
5.0 %
Hong Kong
4.1 %
Taiwan
3.7 %
Korea Republic Of
3.6 %
Germany
3.0 %
Switzerland
2.6 %
Sweden
2.5 %
Australia
2.4 %
Portugal
2.3 %
Spain
2.1 %
Cash
2.0 %
Russia
1.9 %
Singapore
1.9 %
Norway
1.8 %
Canada
1.4 %
South Africa
1.2 %
Italy
1.2 %
Bermuda
0.7 %
Austria
0.7 %
Finland
0.7 %
Philippines
2.5 %
Other
Total
100 %

Top 10 holdings (2020-10-31)

1.6 %
Tapestry
1.5 %
Huntington Bancshares
1.4 %
MTN Group
1.4 %
MSC Industrial Industrial A
1.4 %
Citizens
1.4 %
U.S. Bancorp
1.4 %
National Grid
1.4 %
Denso
1.4 %
Ampol
1.4 %
Public Storage
Total
14.2 %

Sector allocation (2020-10-31)

28.3 %
Financials
11.2 %
Consumer goods
10.6 %
Oil & gas
10.0 %
Utilities
9.6 %
Telecommunications
6.0 %
Industrials
5.9 %
Basic Materials
5.8 %
Technology
5.3 %
Consumer services
5.3 %
Health Care
2.1 %
Other
Total
100 %
The cash position is included in ‘Other’.
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-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
0.40 %
Service fee i
0.10 %
Expected ongoing charges i
0.50 %
Ongoing charges last financial year i
0.50 %
The Ongoing Charges Figure of the last financial year relates to 2018/2019.

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%

Performance fee

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Potential performance fee
0 % - 0.20 %
Current performance fee
0.0 % per October 2020
Performance fee last financial year
0.10 %
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%.
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-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
X
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
MSCI World Net Total Return Index (calculated in Euro)
Investment category
High Dividend Equity
Universum
Global equities
Inception date
2016-05-10
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
Gold

Tradability

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Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
NL0011755848
Details
Orders must be submitted via Vestima.
Class X of Kempen Global 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 Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-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 Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-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's vision & mission

Kempen Capital Management is an asset manager that believes in stewardship and investment focusing on the long-term for the benefit of all stakeholders. Value creation is at the heart of the services we provide to our clients. We believe that being an engaged shareholder on environmental, social and governance (ESG) issues and retaining a long-term focus, is critical to helping our clients to preserve and create sustainable wealth that has positive real world impact and economic returns.

Kempen wide approach to responsible investment

We are committed to create sustainable alpha. The four pillars of our ESG-policy are:

  • ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.

  • Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.

  • Active ownership: Being responsible stewards of our clients’ capital and using our influence through engagement and voting to improve corporate behaviour on specific ESG issues and achieve positive change

  • Positive impact: Investing with an objective to achieve positive real world outcomes and impact, such as contributing to the UN Sustainable Development Goals.

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To put our mission and vision into practice we engage with our investee companies on a wide array of strategic, financial, and ESG topics. As an active owner we use our influence to improve our investee companies’ ESG performance.  This helps us address some of the most pressing and important sustainability issues facing business and the world. Our focus themes for engagement are: human rights, labour rights, climate change and governance.

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Through collaboration with other investors and industry think tanks we contribute to the development of principles and standards of corporate responsibility both at sector levels, as well as investee company level.

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Our full voting records are available here.

OUR FUND APPROACH TO RESPONSIBLE INVESTMENT

Kempen’s ESG policy is fully implemented in our fund’s investment process across the three relevant pillars of: Exclusion, Integration and Active ownership.

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1. Exclusion

The fund follows the clear and transparent exclusion framework we have developed. According to the framework the fund currently excludes companies involved in the production of controversial weapons and tobacco. Furthermore, the strategy avoids investments in companies that structurally violate ESG criteria, with no willingness to improve. In total 177 companies are excluded from the fund’s global equity universe.

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2. ESG integration

ESG criteria are an integral part of the investment process. The aim is to incorporate material ESG issues in our fundamental analysis. This means that portfolio managers perform an in-depth analysis of ESG data and material ESG risks and reflect them in the assumptions used in the valuation assessment. For example, as demonstrated in the chart on the right side, the ESG impact forms part of our Earnings Power Value (EPV) valuation model.

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3. Active ownership

The aim of the engagements our fund participates in is to use our influence as a shareholder to encourage the companies we invest in to improve policies and practices in specific ESG issues. A successful engagement reduces the ESG risk and as a result unlocks value in the interest of our clients. In 2018 we held over 200 company engagements and voted at 104 shareholder meetings.

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In order to lay out our guiding investment principles, we send a “welcome letter” to most of the companies we invest in. In this letter, we explain to the company why we made the decision to invest and what our long-term expectations are, including those in the areas of social and environmental responsibilities and corporate governance.

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Our fund also believes in the strength of collaborative engagement. Through cooperation with other investors and fund managers, we can increase the leverage of our engagement activities. In 2018, for example, we participated in the CIO Exchange Collaboration on Energy transition.

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Our engagement focus is on: climate change and energy efficiency, and corporate governance. For example recent activities include:Â

  • Shell: We engaged with senior management to set carbon targets with success as Shell announced that it will link its scope 1,2 and 3 carbon targets to its remuneration. You can find the engagement factsheet here.

  • Severstal: We are monitoring Severstal’s health & safety efforts and encouraging the company to establish health & safety best practices that set an example to other Russian steel producers. As a result of the engagement, the company is working on a revised policy and process on labour. You can find the engagement factsheet here.

  • China Mobile: We have teamed up with another investor to engage with China Mobile. Our ultimate goal is to improve the company’s capital allocation as the company has a very inefficient balance sheet. To achieve this goal, it is in our view crucial that the Board becomes more independent.

Risks

For more information about the mid and long term risks associated with the investments:

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Although Kempen Capital Management N.V.’s information providers, including without limitation, MSCI ESG Research LLC and its affiliates (the “ESG Parties”), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of any data herein. None of the ESG Parties makes any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

ESG Report
Screening MSCI ESG research
Screening MSCI ESG research
UN global impact
ESG integration in the EPV valuation model
ESG integration in the EPV valuation model
Bron EN
disclaimer
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-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.