Kempen European High Dividend Fund NV - Class X

Profile

Kempen European High Dividend Fund N.V. (KEHDF) offers a diversified portfolio of European listed companies with an above-average dividend yield at the time the company purchased for the first time. KEHDF invests in companies that are listed or do business in geographical Europe including Eastern Europe and Russia. The portfolio contains around 40 investments, which are approximately equally weighted. The environmental, social and governance (ESG) criteria are incorporated in the investment process.

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. Share class X will only be 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 2022-10-31 (rebased)

No chart data available

Performance per 2022-10-31

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  Fund Benchmark
1 month 8.2 % 6.2 %
3 months -3.1 % -5.3 %
This year -8.6 % -12.2 %
2019 18.1 % 26.0 %
2020 -10.7 % -3.3 %
2021 24.7 % 25.1 %
1 year (on annual basis) -5.2 % -9.7 %
3 years (on annual basis) i 2.0 % 3.6 %
5 years (on annual basis) i 1.9 % 3.4 %
Since inception (on annual basis) i 1.8 % 1.9 %
The results shown of the periods before 7 September 2016, the inception date of Kempen European High Dividend Fund N.V. class X, are those of Kempen European High Dividend Fund N.V. class N. 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. The dividend distribution of KEHDF (ex-date 01-08-2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 197.47 M 2022-10-31
Share class size
EUR 21.12 M 2022-10-31
Number of shares
3,229,342 2022-10-31
Net Asset Value i
EUR 6.87 2022-12-02
Transaction price i
EUR 6.86 2022-12-02

Fund characteristics per 2022-10-31

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  Fund Benchmark
Number of holdings 45 429
Dividend yield i 5.62 % 3.39 %
Weighted average market capitalization i EUR 50,184 M EUR 85,814 M
P/E ratio i 7.43
Active share i 85.21 %
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 Dutch Authority for the Financial Markets (AFM). The 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 2022-10-31

October was a strong month for equities. Investor sentiment was driven by the hope that central banks would start slowing down the pace of interest rate increases. This hope was based on encouraging inflation data in the United States. Commodity prices had come off over the last few months. In the second half of October, earnings reporting season started. In this period, companies publish their financial statements, and management teams give an outlook on what their expectations are in the upcoming months. So far, earnings have not disappointed investors and the business outlook was frequently somewhat better than expected. In this bullish environment, KEDHF outperformed the broader market. The performance was also better than the performance of the style index (Morningstar Developed Europe Dividend Yield > 2.5% Index).

The sector that contributed most to the absolute performance of KEHDF was the financial services sector. Driven by higher interest rates and strong financial markets, the shares of banks (e.g. ING) and insurers (e.g. Allianz) were up substantially. No sectors detracted from the absolute performance of KEHDF. The best performing sector from a relative perspective was the consumer discretionary sector. This was the result of strong stock selection (e.g. Autoliv and Taylor Wimpey). From a relative perspective, the materials sector was the worst performing sector (Rio Tinto was down modestly).

One of the best contributors was Autoliv (+19% in October). Autoliv is the world market leader in passive automotive safety products like airbags and seatbelts. Their latest reported numbers show that the company is benefiting from a strong recovery in the automobile market. Automobile makers had not been able to keep up with demand, because of covid-related supply chain issues. It now looks like these issues are resolving. A strong uplift for automobiles is driving a strong uplift in demand for Autoliv’s safety products. By raising prices and controlling costs, Autoliv has been able to show a strong recovery in profitability. At the current price, the shares trade at a 3.2% dividend yield. If the earnings of Autoliv continue to grow as expected, we believe that the shares remain substantially undervalued.

One of the detractors from performance was Rio Tinto (declining 5%). Commodity prices have corrected over the past months from very high levels earlier this year. Iron ore is Rio Tinto’s most important commodity and has also come down. Despite the correction, commodity prices are still at elevated levels, allowing Rio Tinto to make substantial profits. Most of these earnings are paid out to shareholders through ordinary and special dividends. Based on consensus estimates, the shares will provide a dividend of around 12% over the next year.

Portfolio activity over October was limited. We did not initiate new positions, nor fully exited existing positions.

We currently expect a dividend yield of around 6.0% for KEHDF. This number is based on the consensus estimate of dividends paid out over the next 12 months. KEHDF still trades at a strong discount versus the market (the average valuation of all the holdings in KEHDF versus the broader equity market). Historically, this has led to a strong relative performance in the medium term. Also, the absolute valuation of the strategy is compelling. We continue to focus on attractively valued companies, that have good capital discipline and generate positive cash flows through the cycle. In summary, the current environment offers the opportunity to buy a well-diversified portfolio with solid earnings power at an attractive valuation. In addition, ESG (Environmental, Social and Governance) is fully incorporated in our investment process.

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 Dutch Authority for the Financial Markets (AFM). The 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 2022-10-31 (rebased)

No chart data available

Performance per 2022-10-31

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  Fund Benchmark
1 month 8.2 % 6.2 %
3 months -3.1 % -5.3 %
This year -8.6 % -12.2 %
2019 18.1 % 26.0 %
2020 -10.7 % -3.3 %
2021 24.7 % 25.1 %
1 year (on annual basis) -5.2 % -9.7 %
3 years (on annual basis) i 2.0 % 3.6 %
5 years (on annual basis) i 1.9 % 3.4 %
Since inception (on annual basis) i 1.8 % 1.9 %
The results shown of the periods before 7 September 2016, the inception date of Kempen European High Dividend Fund N.V. class X, are those of Kempen European High Dividend Fund N.V. class N. 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. The dividend distribution of KEHDF (ex-date 01-08-2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.

Dividends

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Distributing
Yes
Last dividend
EUR 0.08
Ex-date last dividend
2022-08-05
Number of distributions per year
4
Dividend calendar
The dividend distribution of KEHDF (ex-date 01-08-2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.

Risk analysis (ex post) per 2022-10-31

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  3 years Since inception
Maximum drawdown i -29.33 % -38.92 %
Tracking error i 7.23 % 3.85 %
Information ratio i -0.23 -0.04
Beta i 1.08 0.96
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 Dutch Authority for the Financial Markets (AFM). The 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.

Maturity profile (2022-10-31)

1.0 %
Cash
99.0 %
Other
Total
100 %

Geographic allocation (2022-10-31)

27.0 %
United Kingdom
17.7 %
France
12.6 %
Germany
8.6 %
Netherlands
5.2 %
Spain
4.1 %
Belgium
3.4 %
Switzerland
3.3 %
Sweden
3.1 %
Norway
15.0 %
Other
Total
100 %

Top 10 holdings (2022-10-31)

3.2 %
Sanofi
3.1 %
Equinor
2.9 %
Unilever PLC
2.9 %
Shell
2.7 %
Repsol
2.7 %
ING Groep
2.7 %
Deutsche Post
2.6 %
Reckitt Benckiser
2.6 %
Allianz
2.6 %
ALD
Total
28.1 %

Rating allocation (2022-10-31)

97.9 %
Not Rated
1.0 %
Cash
1.0 %
Other
Total
100 %

Sector allocation (2022-10-31)

24.9 %
Financials
13.8 %
Energy
11.7 %
Telecommunications
10.0 %
Health Care
9.7 %
Industrials
9.1 %
Consumer Discretionary
7.9 %
Consumer Staples
7.1 %
Utilities
4.9 %
Basic Materials
1.0 %
Other
Total
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 Dutch Authority for the Financial Markets (AFM). The 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 European 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. This fund will invest in a broad range of companies, of which some will have sustainability objectives.

We commit to the goals of the Paris Agreement. This encompasses short-term objectives (2025), a mid-term ambition (2030) and a long-term commitment to be a net zero investor by 2050. By 2025, we aim to be aligned with a path to achieving the Paris Agreement and Dutch Klimaatakkoord. We follow the market reduction, which assumes a pathway in line with the EU Benchmarks.

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 three relevant pillars of: Exclusion, ESG integration and Active ownership.

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. Based on the fundamental ESG analysis we form an opinion on the quality of a company’s ESG profile.

Exclusion

The Fund applies exclusion criteria. These take into account international standards, such as UN Global Compact Framework, the OECD Guidelines for Multinational Enterprises, 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 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 Dutch Authority for the Financial Markets (AFM). The 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
0.400 %
Service fee i
0.15 %
Expected ongoing charges i
0.55 %
Ongoing charges last financial year i
0.60 %
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%

Performance fee

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Potential performance fee
0 % - 0.20 %
Current performance fee
0 % per October 2022
Performance fee last financial year
0.00 %
The level of the performance fee is determined on a montly basis, based on the performance relative to the benchmark and does not exceed 0,20%.

Please note that a performance fee is charged in case when the fund has positive return, which is more than the benchmark, but also when the fund has a negative return, which is less negative than the benchmark.
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 Dutch Authority for the Financial Markets (AFM). The 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
X
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
MSCI Europe Total Return Index (calculated in Euro)
Investment category
High Dividend Equity
Universe
European equities
Inception date
2016-09-06
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 S.A., Netherlands Branch
Management company
Kempen Capital Management N.V.
Depositary and custodian
BNP Paribas S.A., Netherlands Branch

Tradability

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Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
NL0011843164
Details
Orders must be submitted via Vestima.
Class X of Kempen European High Dividend Fund N.V. will only be available for orders submitted via the Vestima platform. Share class X will only be available for distributors who submit orders on behalf of their clients, and who have been selected by the management company.
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 Dutch Authority for the Financial Markets (AFM). The 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 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 Dutch Authority for the Financial Markets (AFM). The 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.