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

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. 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

Jorik van den Bos, Joris Franssen, Joost de Graaf, Dimitri Willems, Luc Plouvier, Floris Oliemans

Performance per 2017-07-31 (rebased)

No chart data available

Performance per 2017-07-31

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  Fund Benchmark
1 month 0.5 % -0.4 %
3 months 0.4 % -1.4 %
This year 6.8 % 6.3 %
2014 3.2 % 6.8 %
2015 7.2 % 8.2 %
2016 3.5 % 2.6 %
3 years (on annual basis) i 5.0 % 6.4 %
5 years (on annual basis) i 9.0 % 10.2 %
10 years (on annual basis) 2.3 % 2.2 %
Since inception (on annual basis) i 1.5 % 1.2 %
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.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 735.66 M 2017-07-31
Number of shares
11,652,920 2017-07-31
Net Asset Value i
EUR 7.13 2017-08-18
Transaction price i
EUR 7.15 2017-08-18
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Fund characteristics per 2017-07-31

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  Fund Benchmark
Number of holdings 54 444
Dividend yield i 4.16 % 3.29 %
Weighted average market capitalization i EUR 44,041 M EUR 63,789 M
P/E ratio i 16.46 18.27
Active share i 78.27 %
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 2017-07-31

In July the European equity markets dropped whereas KEHDF was up for the month. KEHDF is now ahead of its benchmark on a year-to-date basis. The USD Dollar continued to weaken significantly versus the Euro, as investors become more optimistic on the growth prospects in Europe and weary about the political instability in the United States. The increase in the Euro is likely to dampen the results of European exporters in the second half.

Both sector allocation and stock selection were positive for the month. Stock selection was strong within the industrials sector and we benefited most from our overweight to the telecom sector which performed well during the month. The largest stock specific contributors were Telenor and NN Group. Telenor, a large Scandinavian telecom operator, benefited from strong quarterly numbers as its operations in emerging markets are showing improvement. NN group, the Dutch insurer, benefited from stronger than expected earnings. Our weakest performer for the month was British American Tobacco (BAT). The share price of BAT declined on the back of an FDA report stating that it may attempt to limit the amount of nicotine in cigarettes for the US market. The move towards the next generation tobacco products could partially offset increased regulatory pressure.

Portfolio developments per 2017-07-31

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 2017-07-31 (rebased)

No chart data available

Performance per 2017-07-31

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  Fund Benchmark
1 month 0.5 % -0.4 %
3 months 0.4 % -1.4 %
This year 6.8 % 6.3 %
2014 3.2 % 6.8 %
2015 7.2 % 8.2 %
2016 3.5 % 2.6 %
3 years (on annual basis) i 5.0 % 6.4 %
5 years (on annual basis) i 9.0 % 10.2 %
10 years (on annual basis) 2.3 % 2.2 %
Since inception (on annual basis) i 1.5 % 1.2 %
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.

Dividends

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Distributing
Yes
Last dividend
EUR 0.08
Ex-date last dividend
2017-05-15
Number of distributions per year
4
Dividend calendar

Risk analysis (ex post) per 2017-07-31

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  3 years Since inception
Maximum drawdown i -14.94 % -56.33 %
Tracking error i 2.60 % 2.95 %
Information ratio i -0.57 0.08
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 (2017-07-31)

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  Contribution i Performance i
Telenor 0.33 % 16.48 %
Nationale Nederlanden Group 0.21 % 10.19 %
Statoil 0.19 % 9.23 %
Rio Tinto 0.15 % 6.60 %
Boskalis Westminster 0.12 % 6.30 %

Bottom 5 contribution (2017-07-31)

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  Contribution i Performance i
British American Tobacco -0.23 % -11.58 %
GlaxoSmithKline -0.17 % -9.08 %
ABB -0.15 % -7.96 %
AstraZeneca -0.15 % -12.64 %
Imperial Brands -0.14 % -11.17 %

Geographic allocation (2017-07-31)

31.4 %
United Kingdom
13.2 %
The Netherlands
8.0 %
Norway
7.9 %
France
7.7 %
Switzerland
6.1 %
Italy
5.5 %
Germany
5.1 %
Sweden
4.2 %
Portugal
3.5 %
Belgium
7.4 %
Others
Totaal
100 %

Top 10 holdings (2017-07-31)

2.3 %
Telenor
2.3 %
Rio Tinto
2.3 %
Nationale Nederlanden Group
2.2 %
Statoil
2.2 %
BT Group
2.2 %
Yara International
2.2 %
ING Groep
2.1 %
AXA
2.1 %
Allianz
2.1 %
Diageo
Totaal
22.0 %

Sector allocation (2017-07-31)

27.8 %
Financials
10.5 %
Industrials
10.5 %
Telecommunications
10.3 %
Utilities
10.1 %
Consumer goods
9.5 %
Oil & gas
8.5 %
Health Care
6.3 %
Basic Materials
2.6 %
Consumer services
2.1 %
Other
1.9 %
Technology
Totaal
100 %
De cashpositie is opgenomen onder de post ‘Overig’.
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
0.40 %
Service fee i
0.15 %
Expected ongoing charges i
0.55 %
Ongoing charges last financial year i
0.57 %

Performance fee

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Potential performance fee
0 % - 0.20 %
Current performance fee
0 % per July 2017
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%.

Other costs

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Upward swing factor i
0.30 %
Downward swing factor i
0.30 %
More about our swing pricing policy
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
X
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
MSCI Europe Total Return Index (berekend in euro's)
Investment category
High Dividend Equity
Universum
Aandelen Europa
Inception date
2016-09-06
Domicile
The Netherlands
Registered 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
no
Pricing 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 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.