Kempen (Lux) European High Dividend Fund - Class BNX1-GBP

Profile

Kempen International Funds SICAV - Kempen (Lux) European High Dividend Fund (the Fund) biedt een gediversifieerde portefeuille van Europese beursgenoteerde ondernemingen met een bovengemiddeld dividendrendement op het moment dat het bedrijf voor de eerste keer wordt gekocht. Het Fonds belegt in bedrijven die beursgenoteerd zijn of zaken doen in geografisch Europa, inclusief Oost-Europa en Rusland. De portefeuille bevat circa 50 beleggingen, die ongeveer even zwaar zijn gewogen.

Het Fonds streeft er in de eerste plaats naar om een ??beter totaalrendement op lange termijn te genereren dan de MSCI Europe Total Return Index (herbelegde nettodividenden), bestaande uit vermogenswinsten of -verliezen plus nettodividend.

Management team

Jorik van den Bos, Joris Franssen, Joost de Graaf, Dimitri Willems, Luc Plouvier, Marius Bakker

Performance per 2021-03-31 (rebased)

No chart data available

Performance per 2021-03-31

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  Fund Benchmark
1 month 4.6 % 4.5 %
3 months 5.6 % 3.1 %
This year 5.6 % 3.1 %
2020 29.8 % 28.6 %
1 year (on annual basis) 34.5 % 30.3 %
Since inception (on annual basis) i 36.5 % 32.2 %
Performance is shown after deduction of ongoing charges. 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 12.59 M 2021-04-30
Share class size
GBP 0.00 M 2021-03-31
Number of shares
40 2021-03-31
Net Asset Value i
GBP 35.09 2021-05-06
Turnover rate
34.75 %
The turnover rate figure is per the end of the financial year of the fund and will be updated once a year.

Fund characteristics per 2021-04-30

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  Fund Benchmark
Number of holdings 50 434
Dividend yield i 3.63 % 2.33 %
Weighted average market capitalization i EUR 42,853 M EUR 72,427 M
P/E ratio i 13.27
Active share i 80.87 %
Kempen (Lux) European High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by the Dutch Authority for the Financial Markets (AFM). Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund. The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Developments per 2021-03-31

In de eerste drie maanden van 2021 hield het positieve sentiment op de financiële markten aan en bleven beleggers hun aandacht verleggen naar waardeaandelen. Het Fonds heeft tot dusverre geprofiteerd van deze trend die in november 2020, na de aankondiging van een werkend COVID-19-vaccin, werd ingezet. Maart was opnieuw een maand waarin het Fonds een sterke absolute performance realiseerde. Daarbij wist het Fonds de bredere markt (afgemeten aan de MSCI Europe Index) licht te verslaan. Beleggers blijven optimistisch over economische normalisatie in de loop van het jaar, nu steeds meer mensen met een coronavaccin worden ingeënt. Dit ondanks het negatieve nieuws voor de korte termijn dat veel Europese landen nieuwe lockdownmaatregelen moeten afkondigen vanwege een oplopend aantal besmettingen. Een andere trend die de aandelenmarkten steun biedt, is het groeiende aantal retailbeleggers dat is begonnen met beleggen. Redenen hiervoor zijn het gebrek aan rendementsalternatieven en mogelijkheden om geld aan andere zaken te besteden tijdens de COVID-19-crisis.

Waardeaandelen presteerden in maart beter dan groeiaandelen. Ook dit gaf de relatieve outperformance van het Fonds een impuls. De aandelenselectie droeg positief bij, terwijl de sectorallocatie een neutrale bijdrage leverde. De aandelenselectie voegde vooral in sterke mate waarde toe binnen financiële dienstverlening. Hier was de Nederlandse bank ING een van de uitblinkers. De aandelenkoers bereikte het hoogste niveau van de afgelopen twaalf maanden zonder dat daar aandeelspecifiek nieuws aan ten grondslag lag. Banken profiteerden in het algemeen echter van oplopende rentes. Aan het einde van de maand maakte ING bekend dat meer dan de helft van de Nederlandse bankkantoren wordt gesloten. ING blijft – mede gezien het goede rendement op het eigen vermogen en de sterke solvabiliteit – een aantrekkelijk gewaardeerde bank in de Europese context.

In maart vond de driemaandelijkse portefeuilleherschikking plaats. Vier posities zijn geheel verkocht en drie nieuwe namen zijn aan de portefeuille toegevoegd. De voornaamste reden voor de verkopen was een zeer sterke aandelenkoersperformance, waardoor waardering en dividendrendement niet langer aantrekkelijk waren, bijvoorbeeld bij ABB en Swatch. Toegevoegd zijn de Britse woningbouwer Taylor Wimpey, de Franse bank BNP Paribas en RELX. Al deze aandelen hebben een aantrekkelijke waardering en bieden het vooruitzicht van een groeiend dividend. RELX, het voormalige Reed Elsevier, is een wereldwijde opererende aanbieder van tools voor op informatie gebaseerde analyse en besluitvorming. RELX levert deze tools aan academische instellingen en specifieke sectoren zoals gezondheidszorg en de verzekerings- en juridische sector. Voorts biedt de onderneming tools om fraude en cybercriminaliteit op te sporen. Het bedrijf wordt als defensieve, stabiele groeier beschouwd, gezien de aanzienlijk mate van licentie-inkomsten en het must-have karakter van de geboden informatie. Een klein deel van de activiteiten heeft betrekking op beurzen en tentoonstellingen. Dit bedrijfsonderdeel is fors getroffen door de COVID-crisis. We verwachten een herstel wanneer de markten weer open gaan en zakenreizen weer mogelijk zijn.

De marktvoorkeur ging de afgelopen jaren uit naar ondernemingen die op de korte termijn winstvoorspelbaarheid bieden. Er was minder aandacht voor het potentieel om gedurende de cyclus waarde toe te voegen. Gezien de onzekere vooruitzichten was deze kortetermijnfocus ten dele zeker gerechtvaardigd. Die heeft echter tot een grote waarderingskloof in de markt geleid. Terwijl een handvol bekende aandelen voor perfectie geprijsd lijkt (alle mogelijke positieve scenario’s zijn al ingeprijsd), lijkt bij andere aandelen juist een diepe depressie in de koers verdisconteerd te zijn. Wij geven toe dat sommige ‘kwaliteitsondernemingen’ een aantrekkelijke propositie boden, gezien hun defensieve aard of hun groeimogelijkheden op de lange termijn ongeacht de huidige economische situatie. Echter, zelfs de beste onderneming kan volgens ons niet op elk koersniveau als een geweldige belegging worden beschouwd. Sinds vorig jaar november is de waarderingskloof iets gedicht. Dankzij het vaccin is de kans veel groter geworden dat de economische situatie in 2021 weer normaliseert. Een verdere normalisatie van de economische situatie zou zeer positief uitwerken op de absolute en relatieve performance van het Fonds. De eerste signalen hiervan blijven tot dusverre dit jaar zichtbaar.

We rekenen momenteel op een dividendrendement van rond 4% voor het Fonds. Dit is een indicatief percentage, dat gebaseerd is op actuele data, onzekere vooruitzichten en conservatieve taxaties. Uitgaande van deze taxaties voorzien we 15-20% hogere dividendinkomsten in 2021.

Het Fonds handelt op een forse waarderingsdiscount ten opzichte van de markt: de gemiddelde waardering van alle portefeuillenamen is aanzienlijk lager dan die van de bredere aandelenmarkt. Dit was in het verleden een voorbode voor een goede relatieve performance op de middellange termijn. Daarnaast is de absolute waardering van de strategie zeer aantrekkelijk. Onze focus blijft gericht op aantrekkelijk gewaardeerde bedrijven met een sterke kapitaaldiscipline die over de gehele cyclus bezien een positieve kasstroom realiseren. Al met al biedt de huidige omgeving mogelijkheden om tegen een aantrekkelijke waardering een breedgespreide portefeuille met een degelijk winstgenererend vermogen aan te schaffen. Daarnaast zijn ESG-factoren (op het gebied van milieu, maatschappij en goed bestuur) volledig in ons beleggingsproces geïntegreerd. Positieve ontwikkelingen op ESG-gebied kunnen waarde toevoegen aan de beleggingscase.

Kempen (Lux) European High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by the Dutch Authority for the Financial Markets (AFM). Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund. The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Performance per 2021-03-31 (rebased)

No chart data available

Performance per 2021-03-31

Slide to see more
  Fund Benchmark
1 month 4.6 % 4.5 %
3 months 5.6 % 3.1 %
This year 5.6 % 3.1 %
2020 29.8 % 28.6 %
1 year (on annual basis) 34.5 % 30.3 %
Since inception (on annual basis) i 36.5 % 32.2 %
Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future.

Dividends

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Distributing
Yes
Last dividend
GBP 0.65
Ex-date last dividend
2021-01-14
Number of distributions per year
2
Dividend calendar
Kempen (Lux) European High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by the Dutch Authority for the Financial Markets (AFM). Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund. The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Top 5 contribution (2021-04-30)

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  Contribution i Performance i
Wartsila OYJ 0.41 % 20.16 %
Hennes & Mauritz -B- 0.13 % 6.80 %
Novolipetskiy Steel PJSC 0.12 % 7.62 %
ALD 0.11 % 4.81 %
A2A SPA 0.10 % 4.83 %

Bottom 5 contribution (2021-04-30)

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  Contribution i Performance i
Repsol -0.13 % -5.89 %
Royal Dutch Shell -0.11 % -5.71 %
Valeo -0.09 % -7.01 %
Ahold Delhaize Koninklijke -0.08 % -4.06 %
Baloise -0.07 % -3.28 %

Geographic allocation (2021-04-30)

23.6 %
United Kingdom
16.3 %
France
8.3 %
Germany
8.2 %
Netherlands
6.1 %
Switzerland
5.2 %
Italy
4.3 %
Belgium
4.1 %
Sweden
4.0 %
Spain
4.0 %
Portugal
3.2 %
Norway
2.5 %
Cash
2.4 %
Finland
2.3 %
Greece
1.8 %
Austria
1.7 %
Russia
2.0 %
Other
Total
100 %

Top 10 holdings (2021-04-30)

2.6 %
Sanofi
2.5 %
GlaxoSmithKline
2.5 %
Danone
2.4 %
Wartsila OYJ
2.3 %
ING Groep
2.3 %
Hellenic Telecomm. Organization
2.3 %
Unilever PLC
2.3 %
ALD
2.3 %
Allianz
2.2 %
Nationale Nederlanden Group
Total
23.7 %

Sector allocation (2021-04-30)

26.7 %
Financials
13.3 %
Consumer goods
11.8 %
Utilities
9.9 %
Oil & gas
8.4 %
Telecommunications
8.0 %
Industrials
7.8 %
Consumer services
7.2 %
Health Care
4.1 %
Other
2.8 %
Basic Materials
Total
100 %
The cash position is included in ‘Other’.
Kempen (Lux) European High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by the Dutch Authority for the Financial Markets (AFM). Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund. The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

 

SWING FACTORS

An overview of the current swing factors are available here.

Ongoing charges

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Management fee i
0.470 %
Service fee i
0.20 %
Taxe d'abonnement i
0.05 %
Expected ongoing charges i
0.72%
Kempen (Lux) European High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by the Dutch Authority for the Financial Markets (AFM). Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund. The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Share class details

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Share class
BNX1-GBP
Investor type
Private
Distributing
Yes
Benchmark i
MSCI Europe Total Return Net Index
Investment category
High Dividend Equity
Universum
European equities
Inception date
2020-03-27
Domicile
Luxembourg
May be offered to all investors in
Luxembourg, The Netherlands, United Kingdom
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
GBP
Management company
Kempen Capital Management N.V.
Depositary and custodian
J.P. Morgan Bank Luxembourg S.A.

Tradability

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Minimum subscription
Initial subscription GBP 1
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU2133597620
Kempen (Lux) European High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by the Dutch Authority for the Financial Markets (AFM). Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund. The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Kempen (Lux) European High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by the Dutch Authority for the Financial Markets (AFM). Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund. The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Kempen's vision and 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.Â

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Our full voting records are available here

Climate change

As a long-term investor, we believe climate change represents a systemic risk facing the economy, society and environment. We want to consider the risks and opportunities this presents to our investments in the coming decades. We have therefore set a long-term commitment (2050), a mid-term ambition (2030) and short-term objectives (2025).

  • 2050 commitment: Net-zero investor.

  • 2030 ambition: To align with a Paris Agreement pathway (listed and non-listed investments) and Dutch Klimaatakkoord.

  • 2025 objectives: To align with a pathway towards achieving the Paris Agreement (listed investments) and Dutch Klimaatakkoord goals.[1]

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The Kempen climate change policy can be found here (under climate change policy).Â

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[1] We use carbon intensity as a metric to come to the pathway of net-zero emissions. As we care about the direction of travel and reduction of carbon emissions in the economy, it might be that the actual reducing trend may deviate from the suggested average trend line. The pathway is derived from the pathway of the EU Benchmarks.

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 developed by Kempen. According to the framework the fund currently excludes companies involved in the production of controversial weapons and tobacco. In addition, we exclude pure coal players and pure players involved in tar sands, as these activities have an adverse impact on climate change. Furthermore, the strategy avoids investments in companies that structurally violate ESG criteria, with no willingness to improve. In total 13 companies are excluded from the fund’s European 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: Engagement

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. With regard to climate change, we engage generally and take a sector-specific approach for the most carbon-intensive companies and sectors (oil and gas, utilities), as these count for the largest part of the global carbon emissions. A successful engagement reduces the ESG risk and as a result unlocks value in the interest of our clients. In 2018 we held as a team over 200 company engagements on a range of topics. Â

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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.Â

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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. Also, since last year we have been an active participant in the Climate Action 100+ initiative.

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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.

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3. Active ownership: Voting

Exercising our voting rights is also an essential part of the responsible investment philosophy of our fund. We analyse each vote on a case by case basis and often inform the company about our voting intention ahead of the meeting. Where there is a recommendation to vote against management, we ask the company to clarify their viewpoints. In 2018 we voted at a total of 104 shareholder meetings.Â

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 EPV valuation model
ESG integration in EPV valuation model
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Kempen (Lux) European High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by the Dutch Authority for the Financial Markets (AFM). Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund. The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.