Kempen Global Property Fund NV - N

Profile

Kempen Global Property Fund N.V. (KGPF) has the objective to achieve strong relative investment results by investing in a concentrated portfolio of listed global property companies.

KGPF is managed on the basis of a bottom-up stock picking approach. KGPF's strategy is to exploit mispricings between the valuation of property companies in relation to the quality of their real estate portfolios, balance sheets, corporate governance and management capability to add value to the property portfolio.

Management team

Matthijs Storm, Egbert Nijmeijer, Lucas Vuurmans, Anna Niegowska, Jorrit Arissen, Dan Petrisor

Performance per 2019-05-31 (rebased)

No chart data available

Performance per 2019-05-31

Slide to see more
  Fund Benchmark
1 month 0.8 % 0.3 %
3 months 5.6 % 4.1 %
This year 18.8 % 15.7 %
2016 9.3 % 7.2 %
2017 2.2 % -3.1 %
2018 -1.0 % -0.9 %
1 year (on annual basis) 14.7 % 12.6 %
3 years (on annual basis) i 7.9 % 5.1 %
Since inception (on annual basis) i 12.0 % 8.9 %
The results shown of the periods before 19 April 2017, the inception date of Kempen Global Property Fund N.V. Class N, are those of Kempen (Lux) Global Property Fund - Class I. 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. Due to Easter a deviating net asset value (NAV) is used for the calculation of the performance figures. The NAV is calculated based on the closing prices of the Fund investments per 29 March 2018 (Europe), the closing prices of 2 April 2018 (North America) and calculated based on ‘snapshots’ prices of 3 April 2018 (Asian and Pacific investments).
More information can be found on the documents page of this fund

Key figures

Slide to see more
Total fund size
EUR 32.68 M 2019-05-31
Share class size
EUR 32.68 M 2019-05-31
Number of shares
1,462,316 2019-05-31
Net Asset Value
EUR 22.58 2019-06-24
Transaction price
EUR 22.53 2019-06-24
Morningstar rating â„¢

Fund characteristics per 2019-05-31

Slide to see more
  Fund Benchmark
Number of holdings 49 336
Dividend yield i 3.35 % 3.81 %
Weighted average market capitalization i EUR 12,759 M EUR 13,716 M
P/E ratio i 23.79 22.96
Active share i 70.20 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Property 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 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 2019-05-31

KGPF posted a more or less flat return during May and outperformed its benchmark. Several real estate clusters contributed to the relative return. Stock selection results were the highest in the clusters US offices and US logistics & storage. Within these clusters the overweight position in Datacenter company CoreSite (+7.3%) contributed positively due to exceeding market expectations on capacity delivery and leasing volumes in the network dense data center space. The overweight position in Public Storage (+8.2%) added to the relative performance due to an acceleration of rental income for the 3rd quarter in a row showing that the largest and most diversified storage operators are able to show defensiveness to new supply.

Most significant newsflow in Europe came from the German residential sector. The German residential funds posted healthy but mostly expected 3.0-3.5% like-for-like rental growth in reported figures. Vonovia used the positive sentiment during May 2019 to raise nearly EUR 750 million in an equity placing of 16.5 million new shares. The proceeds will be used to refinance the Swedish portfolio acquisition (EUR 450 million portfolio acquisition announced in December 2018) and to fund future growth. However, for a while now left-wing political parties in Berlin have been raising the issue of rental unaffordability of Berlin residential property. At first there was a threat of expropriation where commercial landlords would have to involuntarily give up control of their residential property. From a legal point of view that seems unachievable. Instead left-wing political parties are now putting legislation on the table to implement a 5-year freeze of rental growth and strict guidelines on rental growth coming from modernization of buildings. Berlin is one of three city-states in Germany where the mayor is also the leader of the state government and can pass laws as opposed to most German cities where Federal involvement is required. The likelihood of implementation of the rental freeze is therefore more achievable in Berlin than in most German cities. We do note that in past examples of cities where rental freezes were introduced it mostly resulted in less development of housing and limited capital expenditure in existing apartments as landlords were not able to re-cover their investments. Taking away the incentive to invest in existing rental apartment buildings also means capex won’t be spend on improving sustainability of apartments whereas EUR 3 billion per annum is needed in the City of Berlin to achieve more energy efficient apartment buildings. We are curious what the stance of the green party in Berlin’s coalition will be regarding rental freeze and subsequent lack of investments in sustainability.

In Japan we noticed the first hostile takeover in the listed real estate ever. Star Asia Group (which includes of Star Asia REIT), proposed to merge with Sakura Sogo REIT. Star Asia has requested Skura to convene an EGM. Star Asia build up a 3.6% stake in Sakura Sogo REIT which allows to do this. At the EGM they seek approval to move ahead with a merger. No price has been disclosed and the tactic is to first get shareholders aligned. When they show alignment at the EGM, the investment bankers from both sides will come together to determine a fair price.

In another sign of a changing Japanese real estate market Mitsubishi Estate announced a Yen 100 billion (EUR 810 mio) share buyback (4.68% of shares outstanding). The size of the buyback is very impressive in Japanese terms and not seen before. This will be funded by property sales keeping the balance sheet in check.

Portfolio developments per 2019-05-31

The Kempen real estate investment strategy strikes the balance between qualitative and quantitative analysis. Through application of data-analysis technology our Real Estate Team collects over 20 million relevant data points for 200,000 real estate buildings around the globe, processing this quantitative data in our data infrastructure and turning it into valuable fundamental investment information. The continuous increase in available data helps us make better assessments of the quality, value and risk of each real estate investment. This leads to better investment decisions and results in higher investment returns at lower risk for our clients.

Next to the quantitative approach the investment strategy contains three key qualitative parameters that determine the warranted valuation: management added value, balance sheet strength and ESG. The portfolio managers score each company covered on these three parameters. Companies that excel in ESG for example will be assigned a higher score and hence the warranted valuation for an investment increases.

Portfolio construction of the Strategy is based on cluster neutrality. The Global portfolio has 19 clusters defined as homogeneous groups of real estate companies with similar underlying currency exposure. Examples are Australia, US offices and Switzerland. The portfolio weight of each cluster is approximately equal to the cluster’s benchmark weight. This ensures a diversified portfolio and neutralizes currency and macro-economic exposure versus the benchmark. KGPF assigns its risk budget on the real estate portfolio level only.

During the month changes were made to the portfolio. In the cluster US industrial weight was reduced in Prologis and reinvested into Eastgroup. In Japan the position in Kenedix Office was decreased and moved to Japan Excellent. These changes were valuation driven.
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Property 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 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 2019-05-31 (rebased)

No chart data available

Performance per 2019-05-31

Slide to see more
  Fund Benchmark
1 month 0.8 % 0.3 %
3 months 5.6 % 4.1 %
This year 18.8 % 15.7 %
2016 9.3 % 7.2 %
2017 2.2 % -3.1 %
2018 -1.0 % -0.9 %
1 year (on annual basis) 14.7 % 12.6 %
3 years (on annual basis) i 7.9 % 5.1 %
Since inception (on annual basis) i 12.0 % 8.9 %
The results shown of the periods before 19 April 2017, the inception date of Kempen Global Property Fund N.V. Class N, are those of Kempen (Lux) Global Property Fund - Class I. 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. Due to Easter a deviating net asset value (NAV) is used for the calculation of the performance figures. The NAV is calculated based on the closing prices of the Fund investments per 29 March 2018 (Europe), the closing prices of 2 April 2018 (North America) and calculated based on ‘snapshots’ prices of 3 April 2018 (Asian and Pacific investments).

Dividends

Slide to see more
Distributing
Yes
Last dividend
EUR 0.69
Ex-date last dividend
2018-02-05
Number of distributions per year
1
Dividend calendar

Risk analysis (ex post) per 2019-05-31

Slide to see more
  3 years Since inception
Maximum drawdown i -9.05 % -12.90 %
Tracking error i 1.80 % 1.81 %
Information ratio i 1.56 1.76
Beta i 1.01 1.00
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Property 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 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 (2019-05-31)

Slide to see more
  Contribution i Performance i
Public Storage 0.31 % 8.07 %
Mitsubishi Estate 0.17 % 9.19 %
Deutsche Wohnen 0.17 % 5.46 %
CoreSite Realty 0.16 % 7.19 %
Vereit 0.15 % 8.00 %

Bottom 5 contribution (2019-05-31)

Slide to see more
  Contribution i Performance i
Unibail-Rodamco-Westfield -0.31 % -11.77 %
Simon Property Group -0.22 % -5.12 %
Wharf Real Estate -0.22 % -10.36 %
Prologis -0.15 % -3.27 %
Host Hotels & Resorts -0.14 % -5.34 %

Geographic allocation (2019-05-31)

52.0 %
United States
11.3 %
Japan
8.0 %
Hong Kong
4.9 %
Australia
4.7 %
United Kingdom
4.0 %
Germany
3.0 %
France
2.8 %
Canada
2.5 %
Singapore
2.5 %
The Netherlands
1.9 %
Nordics
1.0 %
Switzerland
0.9 %
Other
0.4 %
Ireland
Total
100 %

Top 10 holdings (2019-05-31)

4.5 %
Avalonbay Communities
4.3 %
Simon Property Group
4.1 %
Public Storage
3.4 %
Deutsche Wohnen
3.3 %
Alexandria Real Estate
3.2 %
Prologis
3.2 %
Mid-America Apartment Communities
3.1 %
Dexus
3.0 %
Healthcare Trust of America
3.0 %
National Retail Properties
Total
35.1 %

Sector allocation (2019-05-31)

25.5 %
Offices
24.2 %
Residential
19.6 %
Retail
16.1 %
Industrials
14.6 %
Other
Total
100 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Property 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 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

Slide to see more
Management fee i
0.63 %
Service fee i
0.20 %
Expected ongoing charges i
0.86 %
Ongoing charges last financial year i
0.91 %
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%

Other costs

Slide to see more
Upward swing factor i
0.25 %
Downward swing factor i
0.20 %
As of 1 January 2018 the swing factor has been adjusted from 0.25%/0.25% to 0.25%/0.20%.
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Property 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 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

Slide to see more
Share class
N
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
FTSE EPRA/NAREIT Developed Index
Investment category
Real Estate
Inception date
2017-04-19
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„¢

Tradability

Slide to see more
Listed
yes, listed on the NAV Trading Facility of Euronext
Subscription/Redemption Frequency
Daily
ISIN i
NL0012044739
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Property 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 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 Global Property 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 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'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.Â

Â

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.Â

Â

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.

Â

Our full voting records are available here.

OUR FUND APPROACH TO RESPONSIBLE INVESTMENT

At Kempen, we manage several funds and mandates invested in listed Real Estate companies including the Global Property Fund[1] and the European Property Fund. Kempen’s ESG policy is fully implemented in these Real Estate Funds’ investment processes across the two most relevant pillars of: ESG integration and Active ownership.

Â

1. ESG integration

We believe financial and sustainability returns are indivisible and that those companies that can find the right balance between all stakeholders will drive value. Our ESG analysis for listed real estate companies includes:

  • Implementing our ESG quality score into the company score of each Real Estate company we model;

  • Monitoring the global investment universe on Real Estate companies that exhibit negative excesses, such as environmental pollution measured by CO2 emission levels to initiate engagement;

  • Benchmarking Real Estate companies against each other and visualising these results for our investment process and our clients in order to identify leaders and laggards;

  • Entering into dialogue with companies we invest in, to improve their ESG policies and practices;

  • Translating information of Real Estate company portfolios with lower sustainability scores into higher maintenance capex assumptions in our Kempen valuation models;

  • Offering product customisation to our clients who (for example) want to invest in lower CO2 emission Real Estate portfolios only.

Â

In our investment framework there are three key aspects we look at in determining the warranted valuation: management value add, balance sheet and ESG. We are willing to pay up for those companies that excel in ESG. This believe is underpinned by academic literature.

Â

The figure 'How ESG is integrated in our investment process' shows how ESG is incorporated into the investment process. Note that we do not only invest in the ESG leaders but also in the laggards as the potential value to be unlocked by providing capital to those who need it the most is massive.

Â

2. Active ownership

As anactive investor, the Real Estate funds also actively engage with companies on their strategic,financial and social responsibilities.

Â

Our engagements focus on those companies where we believe substantial value can be unlocked. Engagement can take place on a wide array of topics including:

  • Reducing CO2 intensity levels;

  • Reducing energy and water consumption;

  • Improving waste recycling;

  • Improving working conditions and human rights;

  • Improving governance structures;

  • Improving shareholder alignment;

  • Shifting remuneration policies from being linked to short term goals to long term targets

Â

You can find the engagement factsheet of Kojamo Oyj here.

Â

Our full ESG policy can be downloaded here.

 Â

[1]Kempen (Lux) Global Property Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg.Â

*

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 research
Screening MSCI research
UN
How ESG is integrated ...
Source
disclaimer
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Property 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 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.