Kempen Sustainable Global High Dividend Fund N

Profile

Kempen Sustainable Global High Dividend Fund (KSGHDF) offers a diversified portfolio of listed companies worldwide with an attractive dividend yield which comply with strict sustainability criteria. The portfolio contains around 60 investments. The environmental, social and governance (ESG) criteria are incorporated in the investment process. Investments in KSGHDF are screened by an independent data provider to assess compliance with environmental, social and governance (ESG) criteria. The management company uses strict sustainability criteria that minimizes or excludes investments in companies involved in controversial activities such as alcohol coal production and adult entertainment or have exposure to severe ESG controversies. KSGHDF integrates ESG factors in its investment process and aims to select companies that are able to manage their ESG risks and opportunities. KSGHDF strives to select investments with the focus on cash flow generation, healthy capital allocation and an attractive valuation.

The primary objective of KSGHDF is to achieve a structurally better long-term return, comprising capital gains plus net dividends, than the Morningstar Global Dividend Net Total Return Index.

KGHDF pays out dividend on a quarterly basis and aims to pay all the received net dividends to the shareholders.

Management team

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

Performance per 2021-01-31 (rebased)

No chart data available

Performance per 2021-01-31

Slide to see more
  Fund Benchmark
1 month -1.6 % -3.8 %
This year -1.6 % -3.8 %
Since inception (on annual basis) i -1.6 % -3.8 %
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 For the calculation of the performance figures a deviant net asset value (NAV) is used. The NAV is calculated based on the closing prices of the fund investments per end of the month, in contrast of the original NAV issued, that partly is calculated based on the closing prices of the end of the month (North America) and calculated based on ‘snapshots’ prices of the first business day of the following month (Asian and Pacific investments). The deviating NAV is used for better comparison with the benchmark that is also calculated based on the closing prices of the investments.
More information can be found on the documents page of this fund

Key figures

Slide to see more
Total fund size
EUR 89.49 M 2021-01-31
Share class size
EUR 0.00 M 2021-01-31
Number of shares
20 2021-01-31
Net Asset Value
EUR 25.88 2021-03-01
Transaction price
EUR 26.10 2021-02-24

Fund characteristics per 2021-01-31

Slide to see more
  Fund Benchmark
Number of holdings 56
Dividend yield i 4.33 %
Weighted average market capitalization i EUR 35,040 M
P/E ratio i 14.21
Active share i 89.06 %
Kempen Sustainable 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 2021-01-31

In September 2020, the Kempen Sustainable Global High Dividend Fund (KSGHDF) was launched. KSGHDF combines stock selection, an attractive dividend yield with strict sustainable criteria. We exclude companies with severe controversies or controversial activities. We take responsibility as an active manager to engage with the companies we invest in to encourage positive change. Furthermore, we integrate ESG opportunities and risks in our valuation model making the ESG value transparent. KSGHDF is aiming for a Morningstar classification 4-5 globes. The benchmark of KSGHDF is the Morningstar Developed Markets Dividend Yield > 3% NR. This is a representation of the high dividend universe. KSGHDF is not managed versus this index, but it will be applied to measure the relative performance.

The positive sentiment in stock markets and the shifting preference towards value equities that started in November, continued in January. However, the sentiment shifted during the month as due to new strains of the corona virus stricter lockdown measures were implemented, causing the overall market to decline over January. In the US, the Federal Reserve held its monetary policy steady, but will continue with the massive support for the economy as the effects of the pandemic linger. A remarkable phenomenon this month were the coordinated actions by retail investors to collectively buy heavily shorted stocks, coordinated via the Reddit message board. It caused prices of certain of these stocks to soar, inflicting painful losses on hedge funds that bet these shares would drop. While the impact on the broader market is negligible, these kind of events where stock price moves become completely detached of underlying fundamentals are a worrying sign that there is irrational exuberance in certain parts of the market.

KSGHDF realised a positive absolute performance and performed in-line with the index. Since its inception September last year, KSGHDF has strongly outperformed its index, the Morningstar Developed Markets Dividend Yield > 3% NR.

Two strong performers this month were Gilead and Bridgestone. Gilead develops and markets therapies to treat life-threatening infectious diseases, with the core of its portfolio focused on HIV and hepatitis B and C. In addition, it is the producer of the Remdesivir medicine, that is being used to treat Corona patients. It has a track record of good capital allocation and the company almost has no debt on the balance sheet. We use a lower cost of capital in our valuation compared to its peers as a result of its above average ESG profile. Gilead’s program for improving access to healthcare in developing countries continues to lead those of peers, with equitable pricing policies. Japanese Bridgestone is the world’s largest tire manufacturer in terms of revenues, with its two main brands being Bridgestone and Firestone. Bridgestone’s ESG initiatives are centered around its Mission & Foundation Framework, which includes safety, quality & environmental mission statements, and its global CSR commitment ‘Our Way to Serve’. Bridgestone’s US subsidiary announced the sale of its Building Products Company, which manufactures and supplies roofing and building materials. It was welcomed by the market as it is in-line with its reorganization plan laid out in the medium to long-term business strategy.

Also in 2021 we will continue our engagement efforts with the companies we invest in. As an example, in February we will meet with the top management of Ampol which is one of the few energy investments in KSGHDF. The company’s core business are its gasoline stations of which some are also convenience stores. Although the company scores well on ESG criteria, there are areas for improvement that will be discussed. The company has one refinery, which might be converted to an import terminal. This would lead to a strong CO2 reduction and is an important topic for discussion.

Trading was limited in January after we implemented the quarterly rebalance December last year.

In our investment process, we spend a large portion of our time understanding where profitability should be on an over the cycle basis, as this is what determines the cash flows, we will receive as a long-term shareholder. A firm may appear attractive based on its price to earnings ratio or other headline multiple, but if margins and/or revenue are high, this only gives you limited information about the future returns of an investment. We believe that a value process of bottom up stock picking will lead to more winners than losers, as our long-term track record of managing high dividend strategies indicates. We continue to purchase our investments based on intrinsic value, while ensuring a margin of safety when we select our stocks. Like mentioned, we try to put a value on ESG and take this fully into account in our intrinsic value modelling.

Even after the rally in November last year, the valuation dispersion between, and within regions and sectors is still at a level we have never experienced before. As many cyclical sectors have sold off across the board most part of the year, 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 investments both in relative and absolute terms. In summary, the current environment offers the opportunity to buy a well-diversified portfolio with solid earnings power and an attractive ESG profile at an undemanding valuation.

Kempen Sustainable 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 2021-01-31 (rebased)

No chart data available

Performance per 2021-01-31

Slide to see more
  Fund Benchmark
1 month -1.6 % -3.8 %
This year -1.6 % -3.8 %
Since inception (on annual basis) i -1.6 % -3.8 %
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 For the calculation of the performance figures a deviant net asset value (NAV) is used. The NAV is calculated based on the closing prices of the fund investments per end of the month, in contrast of the original NAV issued, that partly is calculated based on the closing prices of the end of the month (North America) and calculated based on ‘snapshots’ prices of the first business day of the following month (Asian and Pacific investments). The deviating NAV is used for better comparison with the benchmark that is also calculated based on the closing prices of the investments.

Dividends

Slide to see more
Distributing
Yes
Number of distributions per year
4
Dividend calendar
Kempen Sustainable 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 (2021-01-31)

Slide to see more
  Contribution i Performance i
Gilead Sciences 0.25 % 13.40 %
Bridgestone 0.24 % 13.52 %
Primax Electronics 0.15 % 15.46 %
Asustek Computer 0.15 % 15.58 %
ABB 0.14 % 6.67 %

Bottom 5 contribution (2021-01-31)

Slide to see more
  Contribution i Performance i
Pepsico -0.14 % -7.25 %
Allianz -0.14 % -7.07 %
AIB Group -0.13 % -12.55 %
MSC Industrial Industrial A -0.13 % -6.60 %
Denso -0.13 % -5.98 %

Geographic allocation (2021-01-31)

25.7 %
United States
11.0 %
United Kingdom
8.0 %
France
7.1 %
Japan
6.0 %
Netherlands
4.5 %
Switzerland
4.0 %
Canada
3.9 %
Spain
3.4 %
Taiwan
2.6 %
Cash
2.2 %
Portugal
2.1 %
Singapore
2.0 %
Hong Kong
2.0 %
Korea Republic Of
2.0 %
Belgium
2.0 %
Sweden
1.9 %
Norway
1.9 %
Finland
1.9 %
Germany
1.0 %
Austria
1.0 %
Bermuda
0.9 %
Ireland
0.9 %
Australia
2.1 %
Other
Total
100 %

Top 10 holdings (2021-01-31)

2.3 %
Swatch
2.2 %
EDP - Energias de Portugal
2.2 %
ABB
2.2 %
CubeSmart
2.2 %
Gilead Sciences
2.1 %
Danone
2.1 %
Bridgestone
2.1 %
Vodafone Group
2.1 %
United Overseas Bank
2.1 %
WPP
Total
21.4 %

Sector allocation (2021-01-31)

31.0 %
Financials
14.4 %
Consumer goods
10.1 %
Consumer services
8.1 %
Industrials
7.8 %
Telecommunications
7.0 %
Health Care
6.7 %
Oil & gas
6.2 %
Utilities
4.3 %
Technology
2.6 %
Other
2.0 %
Basic Materials
Total
100 %
Kempen Sustainable 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

Slide to see more
Management fee i
0.630 %
Service fee i
0.20 %
Expected ongoing charges i
0.83%
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%
Kempen Sustainable 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

Slide to see more
Share class
N
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
Morningstar Global Dividend Net Total Return Index (euro)
Investment category
High Dividend Equity
Inception date
2021-01-18
May be offered to all investors in
The Netherlands
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Management company
Kempen Capital Management N.V.
Depositary and custodian
BNP Paribas Securities Services S.C.A.

Tradability

Slide to see more
Listed
yes, listed on the NAV Trading Facility of Euronext
ISIN i
NL0014926404
Kempen Sustainable 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.

Read more information about Kempen Capital Management N.V. on this site and find also more information on BNP Paribas Securities Services S.C.A.

Factsheets

Show more documents Show fewer documents
Kempen Sustainable 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 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 are critical to helping our clients to preserve and create sustainable wealth that yields both positive real-world impact and economic returns.

Â

KEMPEN-WIDE APPROACH TO RESPONSIBLE INVESTMENT

We are committed to creating sustainable alpha. The four pillars of our ESG policy are:Â

  • 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 conduct on specific ESG issues and achieve positive change;

  • Positive impact: investing with the objective of achieving positive real-world outcomes and impact, such as contributing to the UN Sustainable Development Goals (SDGs).

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 we contribute to the development of principles and standards of corporate responsibility at both sector and investee company level.Â

Â

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.  Â
  • 2030 ambition: To align with a Paris Agreement pathway (listed and non-listed investments) and Dutch Klimaatakkoord.  Â
  • 2025 objectives: To align with a pathway towards achieving the Paris Agreement (listed investments) and Dutch Klimaatakkoord goals.[1]

Â

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

Â

[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.

Â

OUR FUND APPROACH TO RESPONSIBLE INVESTMENT

The investment objective of Kempen Sustainable Global High Dividend Fund is to offer investors the opportunity to invest in an actively and professionally managed long-term portfolio of companies from around the world that pay above-average dividend yields, while at the same time complying with strict exclusion and sustainability criteria.

Â

We aim to align with a pathway towards achieving the Paris Agreement and Dutch Klimaatakkoord goals for our portfolio, as well as the EU Climate Transition Benchmark[2].

Â

[2] The EU Benchmarks consists of two climate benchmarks, Climate Transition Benchmark and Paris Aligned Benchmark, which have the aim to reach net-zero emissions by 2050 - in line with the 1.5?C scenarios from the IPCC. 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 average pathway. We use carbon intensity (based on Revenues) as the forward looking climate metric.

Â

Kempen’s ESG policy is incorporated into our fund’s investment process via the following pillars: exclusion, integration and active ownership.

Â

Exclusion & avoidance

In line with Kempen’s general policy, the Sustainable Global High Dividend Fund excludes all companies on Kempen’s Exclusion and Avoidance lists.

Â

Companies that ‘Fail’ marked against the criteria of the UN Global Compact or are on the Watchlist are also excluded.

Â

The fund also excludes companies involved in serious controversies and uses data provider Sustainalytics to this end. It rates the controversies on a scale of 1 to 5, with 5 being the highest or ‘severe’ category. Those companies that receive a Sustainalytics rating of category 4 or 5 are excluded from the Sustainable Global High Dividend Fund.

Â

More information on our exclusion criteria and thresholds can be found here.

Â

The Sustainable Global High Dividend Fund also excludes companies based on additional sustainability criteria as listed in the table below.

EXCLUSION CRITERIA FOR KEMPEN SUSTAINABLE GLOBAL HIGH DIVIDEND FUND

Â

KEMPEN CRITERIA

ADDITIONAL SUSTAINABILITY CRITERIA

Corporate conduct

Â

Â

x     Human rights

V

Â

x     Labour rights

V

Â

x     Environment

V

Â

x     Anti-corruption

V

Â

Product involvement

Â

Â

x     Controversial weapons

V

Â

x     Tobacco

V

Â

x     Thermal Coal

V

Â

x     Tar Sands

V

Â

x     Adult Entertainment

Â

V

x     Alcohol

Â

x     Animal welfare & GMO

Â

V

x     Gambling

Â

V

x     Nuclear power

       generation

Â

V

x     Carbon-intensive

       power generation

Â

V

x     (Un)conventional

       oil & gas extraction

Â

V

x     Weaponry

Â

V

Â

ESG integration

ESG criteria are an integral part of the investment process at Kempen. The goal is to include ESG factors in the same way as other factors. This means that the portfolio managers conduct a thorough strategic analysis of the companies that incorporates material ESG risks and opportunities. This analysis yields assumptions that form the input for the valuation model used within the fund.

Â

Depending on their impact, ESG factors may be included in the valuation model in a variety of ways. For instance, a company’s profitability or growth may be adjusted and identified as an ESG value. This compels the portfolio manager to consider how the ESG factor affects the company’s value, while at the same time providing transparency on the ESG value of each company.

Â

Active ownership: engagement

As active investors we conduct comprehensive engagement processes with the companies in our portfolio with the objective of unlocking value and reducing risk.Â

Â

Our engagement process defines clear objectives, with the progress and results being tracked and well documented. If at any stage the company refuses to cooperate, divestment will be considered.

Â

In 2020, engagement with companies focused on aspects such as the energy transition and the related reduction in carbon emissions.

Â

Active ownership: voting

Exercising our voting rights is also an essential part of our sustainable investment philosophy. ISS provides us with voting recommendations based on our own voting and governance policies. Agenda items are dealt with on a case-by-case basis.

Â

We often inform the company of our voting intention ahead of the meeting and, where there is a recommendation to vote against management, ask the company to clarify its stance. After careful analysis, we form our own opinion and vote accordingly.

Risks

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

--------------------------

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
Kempen Sustainable 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.