Kempen Sustainable Global High Dividend Fund Y

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 55 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 Developed Markets Dividend Yield > 3% NR EUR Index.

KSGHDF pays out dividend on a quarterly basis and aims to pay all the received net dividends to the shareholders. Share class Y is only available for distributors who submit orders on behalf of their clients, and who have been selected by the management company.

Management team

Joris Franssen, Luc Plouvier, Marius Bakker, Robert van den Barselaar, Reineke Davidsz, Roderick van Zuylen

Performance per 2022-05-31 (rebased)

No chart data available

Performance per 2022-05-31

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  Fund Benchmark
1 month 0.3 % 2.4 %
3 months 2.6 % 7.4 %
This year 0.1 % 11.6 %
2020 11.5 % 8.8 %
2021 26.7 % 28.2 %
1 year (on annual basis) 9.4 % 22.9 %
Since inception (on annual basis) i 22.0 % 28.9 %
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

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Total fund size
EUR 144.22 M 2022-05-31
Share class size
EUR 143.14 M 2022-05-31
Number of shares
4,160,157 2022-05-31
Net Asset Value
EUR 32.30 2022-07-04
Transaction price
EUR 32.38 2022-07-04

Fund characteristics per 2022-05-31

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  Fund Benchmark
Number of holdings 53
Dividend yield i 4.07 %
Weighted average market capitalization i EUR 43,420 M
P/E ratio i 10.72
Active share i 90.63 %
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 2022-05-31

May was a positive month for KSGHDF in an absolute sense, while global equity markets were down (MSCI World -1.4%). However, the performance was worse than the performance of our investment universe (defined as Morningstar Developed Markets DY > 3%). The relative performance versus the index was partly driven by a negative sector allocation effect. For sustainability reasons, we only invest in the energy transition leaders. As a result we hold a relatively modest position in energy, a sector that was up more than 10% in May. The energy sector represents around 15% of the Morningstar style index. The sector that added most to the absolute and relative performance of KSGHDF was the consumer discretionary sector (Valeo and Hennes & Mauritz were up). The sector that detracted from the relative performance was the communication services sector (WPP and Singapore Telecom did poorly).

One of the best contributors was Valeo (+20% in May). Valeo is a French automotive supplier with exposure to electric vehicles and autonomous driving. It operates four business lines: comfort and driving assistance systems, powertrain systems, thermal systems, and visibility systems. Valeo sells for example stop-start systems, electrical systems, interior controls, air management, cooling, and wipers. Due to ongoing global supply chain issues (especially the lack of chips), automobile producers had to reduce the number of cars produced. Demand for Valeo’s products therefore declined, and investor sentiment was negative. However, the latest quarterly results gave way to optimism around global supply chains. Valeo reiterated its guidance for 2022. Despite the 50% run-up of the shares since March 2022, the shares still only trade at 9 times 2023 earnings.

One of the detractors from performance was AvalonBay Communities, declining 10%. AvalonBay Communities is an apartment REIT based in the US. The company has a portfolio of around 87,000 apartment units. With rising interest rates, investors worry about a potential downturn in the US housing market. Rising interest rates and high inflation make it less affordable to buy an apartment. However, we are less worried about these developments. Recent data shows that wages are going up and that rents are up strongly as well. AvalonBay has a dividend yield of approximately 3.2%. We believe that this yield is well-protected by AvalonBay’s ability to adjust rents to inflationary developments. We also think the company’s development pipeline will add value thanks to relatively high rental yields on newly developed apartments.

In May we completed our purchase of Western Forest Products. Western Forest Products is an integrated forest products company and a coastal woodland operator located in British Columbia, Canada. The Company's activities include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, value-added remanufacturing, and producing pulp. The company’s free cash flows have been increasing sharply as a result of rapidly rising prices for their products (e.g. lumber). Part of this free cash flow is used to pay for a 25% dividend increase. As a result, the shares now have a dividend yield that is significantly above our 2% dividend yield threshold. Western Forest Products are also buying back shares. We are in active dialogue with the company on how the free cash flows can be used to further enhance shareholder value.

We have decided to reclassify KSGHDF from an article 9 fund to an article 8 fund under the EU Sustainable Finance Disclosure Regulation (SFDR). The re-classification does not change our sustainability ambitions. KSGHDF will maintain its climate objectives, will incorporate principal adverse indicators, will keep an extensive list of exclusion criteria and will target sustainable investments higher than the benchmark. We also updated our prospectus and included the pre-contractual templates to provide full transparency under the SFDR level 2 requirements.

KSGHDF combines stock selection, an attractive dividend yield with strict sustainability 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 has the Towards Sustainability logo and 5 Globes by Morningstar, important recognitions of the high ESG standards of the strategy. We currently expect a dividend yield of around 4.5% for KSGHDF. This number is based on the consensus estimate of dividends paid out over the next 12 months. Based on those estimates the annual growth in dividends for KSGHDF will be around 5%. The valuation dispersion between, and within regions and sectors remains at a very high level. We are still able to find companies that are cash generative, have market leading positions and embrace and benefit from 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 2022-05-31 (rebased)

No chart data available

Performance per 2022-05-31

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  Fund Benchmark
1 month 0.3 % 2.4 %
3 months 2.6 % 7.4 %
This year 0.1 % 11.6 %
2020 11.5 % 8.8 %
2021 26.7 % 28.2 %
1 year (on annual basis) 9.4 % 22.9 %
Since inception (on annual basis) i 22.0 % 28.9 %
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

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Distributing
Yes
Last dividend
EUR 0.35
Ex-date last dividend
2022-05-27
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 (2022-05-31)

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  Contribution i Performance i
Valeo 0.34 % 20.04 %
Technip Energies 0.20 % 8.08 %
Hennes & Mauritz -B- 0.18 % 8.85 %
Bridgestone 0.18 % 5.75 %
Telefonica 0.17 % 9.22 %

Bottom 5 contribution (2022-05-31)

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  Contribution i Performance i
Avalonbay Communities -0.19 % -9.97 %
WPP -0.18 % -9.45 %
Singapore Telecommunications -0.17 % -7.25 %
Cisco -0.16 % -9.61 %
Telenet Group -0.14 % -7.99 %

Geographic allocation (2022-05-31)

25.0 %
United States
16.7 %
United Kingdom
8.2 %
Japan
6.2 %
Netherlands
6.0 %
France
5.6 %
Germany
4.8 %
Canada
4.6 %
Spain
4.2 %
Sweden
3.0 %
Singapore
2.1 %
Bermuda
2.1 %
Portugal
2.0 %
Greece
9.6 %
Other
Total
100 %

Top 10 holdings (2022-05-31)

3.2 %
Bridgestone
3.1 %
Taylor Wimpey
2.9 %
National Grid
2.6 %
Repsol
2.5 %
Merck & Co
2.3 %
LyondellBasell Industries
2.3 %
MSC Industrial Industrial A
2.1 %
Unilever PLC
2.1 %
Singapore Telecommunications
2.1 %
Danone
Total
25.3 %

Sector allocation (2022-05-31)

21.8 %
Financials
13.3 %
Telecommunications
12.3 %
Consumer Discretionary
11.2 %
Industrials
10.3 %
Consumer Staples
9.5 %
Health Care
5.0 %
Utilities
4.6 %
Technology
4.6 %
Energy
3.2 %
Basic Materials
2.6 %
Real estate
1.4 %
Other
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.

Environmental and/or social characteristics promoted

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

The Fund promotes environmental characteristics related to:
• climate change mitigation and climate change adaptation in line with the Paris Climate Agreement;
• the protection of biodiversity and ecosystems;
• the transition to a circular economy.
The Fund promotes social characteristics related to:
• decent work;
• adequate living standards and wellbeing for end-users;
• other social topics such as gender equality and broader diversity matters.

The environmental characteristics promoted by the Fund seek to contribute to the achievement of the climate goals of the Paris Agreement and the National Climate Agreement of the Netherlands (‘Klimaatakkoord’). This decarbonization pathway encompasses short-term (2025) objectives, a mid-term (2030) ambition and a long-term commitment to be net zero by 2050. Although there has been no index designated as a reference benchmark, by 2025 the Fund aims to have a carbon intensity that is below the EU Climate Transition Benchmark (EU CTB) pathway. This pathway assumes a carbon intensity that is 30% lower than the Fund's relevant benchmark in 2019 with a subsequent 7% annual reduction.

Fund carbon emission targets

ESG Investment process

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

In the investment process we assess the ESG profile of a company. We look at each company on a case-by-case basis, taking into account material risks in a given industry in combination with the company’s respective risk exposure, practices and disclosure. This includes an assessment of good governance practices. The investee companies are rated for governance aspects using external research as well as making internal assessments. Furthermore, we look into the company’s exposure to past controversies and future ESG opportunities. These opportunities and risks are integrated in our valuation model and ESG value is made transparent. We apply adequate due diligence measures when selecting the assets and such due diligence measures take into account ESG related risks as it could help to enhance long-term risk adjusted returns for investors, in accordance with the investment objectives of the Fund.

Exclusion

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

Key figures

  Kempen criteria Additional criteria
Business conduct
Human Rights
Labour
Environment
Anti Corruption
Product involvement
Controversial Weapons
Tobacco
Thermal Coal
Tar Sands
Adult Entertainment
Alcohol
Animal Welfare & GMO
Gambling
Power Generation Nuclear
Power Generation Carbon Intensive
(Un)conventional Oil & Gas Extraction
Weaponry
Kempen 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

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Management fee i
0.500 %
Service fee i
0.20 %
Expected ongoing charges i
0.70%
Ongoing charges last financial year i
0.71 %
The ongoing charges figure of the last financial year relates to 2020/2021.

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

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Share class
Y
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
Morningstar Developed Markets Dividend Yield > 3% NR EUR Index
Investment category
High Dividend Equity
Inception date
2020-09-03
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., Amsterdam branch
Management company
Kempen Capital Management N.V.
Depositary and custodian
BNP Paribas Securities Services S.C.A., Amsterdam branch

Tradability

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Listed
no
ISIN i
NL0014926438
Details
Orders must be submitted via Fundsettle
Class Y of Kempen Sustainable Global High Dividend Fund will only be available for orders submitted via the Fundsettle platform. Share class Y will only be available for distributors who submit orders on behalf of their clients, and who have been selected by the management company.
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 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.