Kempen European High Dividend Fund N.V. - Class N

Profile

Kempen European High Dividend Fund N.V. (KEHDF) offers a diversified portfolio of European listed companies with an expected dividend yield of 2.75% at the time the company purchased for the first time. The portfolio contains around 55 investments, which are approximately equally weighted.

KEHDF primarily aims to generate a better long-term total return than the MSCI Europe Total Return Index (net dividends reinvested), comprising capital gains plus net dividends. This index consists of about 500 companies in 15 countries.

KEHDF pays its 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, Floris Oliemans

Performance per 2017-10-31 (rebased)

No chart data available

Performance per 2017-10-31

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  Fund Benchmark
1 month 1.2 % 2.0 %
3 months 4.7 % 5.1 %
This year 11.8 % 11.7 %
2014 3.2 % 6.8 %
2015 7.2 % 8.2 %
2016 3.4 % 2.6 %
3 years (on annual basis) i 7.3 % 8.0 %
5 years (on annual basis) i 9.3 % 10.5 %
Since inception (on annual basis) i 1.7 % 1.5 %
The performance track-record of KEHDF is based on the Orange European Large Cap Fund until ultimo February 2007 including the corresponding benchmark (Dow Jones STOXX 50 Index). As of February 2007 the return data of KEHDF with the current benchmark are shown. 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.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 790.54 M 2017-10-31
Number of shares
20,230,711 2017-10-31
Net Asset Value i
EUR 7.24 2017-11-22
Transaction price i
EUR 7.26 2017-11-22
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Fund characteristics per 2017-10-31

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  Fund Benchmark
Number of holdings 55 445
Dividend yield i 4.06 % 3.14 %
Weighted average market capitalization i EUR 43,758 M EUR 66,414 M
P/E ratio i 15.25 18.65
Active share i 79.67 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend 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 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 2017-10-31

In October, European equity markets continued their upward momentum. KEHDF underperformed the market for the month. KEHDF is now performing in line with its benchmark on a year-to-date basis.

Both stock selection as well as sector allocation negatively impacted stock performance for the month. In terms of stock specific contributors, our worst performer was Nokia. Nokia dropped on disappointing quarterly earnings. Nokia is a producer of networking equipment and is suffering from low capital expenditure levels by telecom operators as well as high integration costs with Alcatel. Our largest contributor for the month was Pearson, a global education company. Better than expected results drove an increase in the share price. As for sector allocation, our overweight to the telecom sector did not help. This sector underperformed the broad market.

Portfolio developments per 2017-10-31

In October we completed our quarterly rebalance. We divested one company and purchased two companies. We sold Diageo as it crossed our dividend threshold.

In terms of purchases we bought the following companies:
WPP: World’s largest advertising agency trading at a very attractive free cash flow multiple. We believe the current decline in advertisement spend will prove to be cyclical rather than structural.
Dixons Carphone plc: Attractively valued consumer electronics retailer with high market share in its core markets.

Market volatility remains subdued, with few large moves in the indices. The benign environment attracts investors as it seemingly offers returns without the volatility that usually accompanies public markets. It is often in these markets that mistakes are made. Investors start to move up the risk curve without realizing it and are often faced with overvalued and/or illiquid assets once the cycle turns. We operate in the same capital markets as everyone else, and are similarly faced with elevated multiples. We do believe that safe investments with sufficient expected returns continue to exist, they present themselves in areas where the perception of risk is high. Currently this is the case in cyclical firms, or in commodity based operators. Within this space we look for companies with a sustainable low cost position and strong balance sheets to reduce the long term risk.

Our focus is on finding companies with sustainable dividends that can be bought at a discount to our estimate of intrinsic value. We base our estimate on the Earnings Power Value (EPV) framework of the Columbia Business School. EPV allows us to separate the three valuation components: asset value, earnings power and growth value. This framework improves our ability to analyze what we are paying for and gives insight into whether a stock is priced with a margin of safety.

KEHDF now has a forward yield of around 4.4%. We remain optimistic on the dividend growth prospects for 2017.
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend 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 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 2017-10-31 (rebased)

No chart data available

Performance per 2017-10-31

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  Fund Benchmark
1 month 1.2 % 2.0 %
3 months 4.7 % 5.1 %
This year 11.8 % 11.7 %
2014 3.2 % 6.8 %
2015 7.2 % 8.2 %
2016 3.4 % 2.6 %
3 years (on annual basis) i 7.3 % 8.0 %
5 years (on annual basis) i 9.3 % 10.5 %
Since inception (on annual basis) i 1.7 % 1.5 %
The performance track-record of KEHDF is based on the Orange European Large Cap Fund until ultimo February 2007 including the corresponding benchmark (Dow Jones STOXX 50 Index). As of February 2007 the return data of KEHDF with the current benchmark are shown. 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.

Dividends

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Distributing
Yes
Last dividend
EUR 0.08
Ex-date last dividend
2017-08-02
Number of distributions per year
4
Dividend calendar

Risk analysis (ex post) per 2017-10-31

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  3 years Since inception
Maximum drawdown i -14.94 % -56.33 %
Tracking error i 2.54 % 2.94 %
Information ratio i -0.30 0.07
Beta i 0.89 0.93
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend 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 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 (2017-10-31)

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  Contribution i Performance i
Pearson 0.31 % 15.42 %
SKF AB-B Shares 0.17 % 8.50 %
Edenred 0.15 % 7.56 %
ABB 0.14 % 7.27 %
Galp Energia 0.13 % 6.39 %

Bottom 5 contribution (2017-10-31)

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  Contribution i Performance i
Nokia -0.34 % -17.03 %
Nordea Bank AB -0.19 % -9.32 %
GlaxoSmithKline -0.17 % -8.50 %
Roche Holding -0.16 % -8.15 %
BT Group -0.16 % -7.91 %

Geographic allocation (2017-10-31)

31.0 %
United Kingdom
12.6 %
The Netherlands
8.2 %
France
7.9 %
Switzerland
6.6 %
Norway
6.2 %
Italy
5.5 %
Germany
5.1 %
Sweden
4.0 %
Portugal
3.5 %
Belgium
9.6 %
Others
Totaal
100 %

Top 10 holdings (2017-10-31)

2.3 %
Pearson
2.1 %
SKF AB-B Shares
2.1 %
Edenred
2.1 %
ABB
2.1 %
Novo Nordisk
2.1 %
Galp Energia
2.1 %
Muenchener Rueckversicherungs
2.1 %
Atlantia
2.1 %
Royal Dutch Shell
2.1 %
Allianz
Totaal
21.2 %

Sector allocation (2017-10-31)

25.2 %
Financials
12.4 %
Industrials
10.2 %
Utilities
9.8 %
Telecommunications
9.7 %
Health Care
9.4 %
Oil & gas
7.7 %
Consumer goods
6.0 %
Consumer services
5.5 %
Basic Materials
2.5 %
Other
1.6 %
Technology
Totaal
100 %
The cash position is included in ‘Other’.
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend 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 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

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Management fee i
0.63 %
Service fee i
0.10 %
Expected ongoing charges i
0.78 %
Ongoing charges last financial year i
0.77 %
The service fee has been reduced by 0,05% as of 30 September 2017. The expected ongoing charge factor is therefore also reduced by 0,05%.
The Ongoing Charges Figure of the last financial year relates to 2015/2016.

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

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Upward swing factor i
0.30 %
Downward swing factor i
0.30 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend 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 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

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Share class
N
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
MSCI Europe Total Return Index (calculated in Euro)
Investment category
High Dividend Equity
Universum
European equities
Inception date
1998-04-01
Domicile
The Netherlands
May be offered to all investors in
The Netherlands
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Administrator
BNP Paribas Securities Services S.C.A.
Management company
Kempen Capital Management N.V.
Custodian
BNP Paribas Securities Services S.C.A.
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Tradability

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Listed
yes, listed on the NAV Trading Facility of Euronext
Pricing frequency
Daily
ISIN i
NL0000293348
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend 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 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 European High Dividend 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 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.

KCM Vision

Kempen Capital Management is an asset manager with a long-term investment approach. We strongly believe in engaged shareholdership that benefits all stakeholders. As a long-term responsible investor, we firmly believe that active ownership and shareholder engagement contribute to positive change across the board.

Our KCM wide approach to responsible investment

To put our vision into action we engage with our investment targets on a wide array of strategic, financial, environmental, social and governance (ESG) topics. Our long-term investment worldview paired with thorough analysis and an experienced and diverse ESG team allow us to use both voting and engagement as means to consistently encourage positive change. Through this process of constructive engagement, we are able to contribute to the development of principles and standards of corporate responsibility within companies.

Fund approach to Responsible Investment

  • ESG is integrated in our investment process.
  • Portfolio managers (PM's) have access to ESG research via the database from MSCI ESG Research and via FactSet.
  • Prior to investment, our PM's assess the ESG performance of the company. If material ESG concerns are identified, this can result in the decision to quantify the ESG risks into the investment model, to engage with a company or to avoid investment.
  • In case of engagement, the PM and the Responsible Investment Department will start a dialogue with the company. The aim of the engagement is to use our influence as a shareholder to encourage positive change.
  • During the quarterly re-balancing process the PM's monitor the ESG performance of the holdings.

Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend 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 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.