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. KEHDF invests in companies that are listed or do business in geographical Europe including Eastern Europe and Russia. 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 2018-06-30 (rebased)

No chart data available

Performance per 2018-06-30

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  Fund Benchmark
1 month -1.0 % -0.7 %
3 months 3.4 % 4.0 %
This year -0.8 % -0.5 %
2015 7.2 % 8.2 %
2016 3.5 % 2.6 %
2017 11.0 % 10.3 %
1 year (on annual basis) 3.7 % 2.8 %
3 years (on annual basis) i 2.8 % 2.6 %
5 years (on annual basis) i 7.2 % 8.5 %
Since inception (on annual basis) i 1.6 % 1.3 %
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 667.03 M 2018-06-30
Share class size
EUR 72.29 M 2018-06-30
Number of shares
10,201,977 2018-06-30
Net Asset Value i
EUR 7.14 2018-07-18
Transaction price i
EUR 7.13 2018-07-18
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Fund characteristics per 2018-06-30

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  Fund Benchmark
Number of holdings 54 447
Dividend yield i 4.81 % 3.44 %
Weighted average market capitalization i EUR 40,046 M EUR 64,096 M
P/E ratio i 12.19 14.97
Active share i 83.52 %
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 2018-06-30

In Europe, markets were down slightly. KEHDF slightly lagged the market for the month, and is performing close to in line with its benchmark on a year-to-date basis. During the month we also completed our quarterly rebalance.

Our underperformance was due to a combination of allocation and selection effects. In terms of sector allocation, consumer staples impacted performance. We are underweight this sector, which outperformed the market as whole. In terms of stock specific contributors our weakest performers were Proximus, John Wood Group and Renault. Proximus, a Belgian telecom operator, was weak as the Belgian government announced it is planning a new entrant into the telecom market. John Wood, an oil services company, dropped after a strong rally in the previous months. Renault, a French automaker, dropped on fears of escalating trade wars and potential increased tariffs. Our best performer for the month was Centrica, a UK utility provider, There was no specific news surrounding Centrica.

Portfolio developments per 2018-06-30

During the month we completed our quarterly rebalance. We sold three companies and added two. TGS Nopec was sold as it dropped below our dividend threshold. Uniper and AstraZeneca were sold on valuation grounds.

We added two companies. Technicas Reunidas and BASF. Technicas Reunidas is an EPC engineering firm active in the oil & gas industry, with a focus on downstream activities. The downturn in oil and gas has impacted margin and we believe this will revert with the recovery in oil prices. BASF is an attractively valued chemical company with exposure to rising oil & gas prices. Uncertainty surrounding trade wars created attractive entry point.

After a period of muted markets, we welcome increased volatility as this improves our opportunity to pick individual stocks. We believe European markets are attractively valued, especially when compared to North America. Many European companies are performing well on the back of improving economic fundamentals, yet are not pricing in growth. The opposite is true in the United States where peak multiples are being paid on the back of elevated profitability.

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 5.2%. Our portfolio trades at a significant discount to market multiples. We remain optimistic on the dividend growth prospects for 2018.
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 2018-06-30 (rebased)

No chart data available

Performance per 2018-06-30

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  Fund Benchmark
1 month -1.0 % -0.7 %
3 months 3.4 % 4.0 %
This year -0.8 % -0.5 %
2015 7.2 % 8.2 %
2016 3.5 % 2.6 %
2017 11.0 % 10.3 %
1 year (on annual basis) 3.7 % 2.8 %
3 years (on annual basis) i 2.8 % 2.6 %
5 years (on annual basis) i 7.2 % 8.5 %
Since inception (on annual basis) i 1.6 % 1.3 %
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
2018-05-21
Number of distributions per year
4
Dividend calendar

Risk analysis (ex post) per 2018-06-30

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  3 years Since inception
Maximum drawdown i -14.02 % -56.33 %
Tracking error i 2.71 % 2.96 %
Information ratio i 0.07 0.08
Beta i 0.87 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 (2018-06-30)

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  Contribution i Performance i
Centrica 0.15 % 7.18 %
Boskalis Westminster 0.11 % 5.53 %
BT Group 0.10 % 5.30 %
Roche Holding 0.07 % 3.34 %
Galp Energia 0.06 % 2.77 %

Bottom 5 contribution (2018-06-30)

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  Contribution i Performance i
Proximus -0.31 % -15.73 %
Wood Group -0.16 % -7.14 %
Arcadis -0.15 % -10.72 %
Renault -0.15 % -7.73 %
BMW -0.09 % -9.06 %

Geographic allocation (2018-06-30)

26.9 %
United Kingdom
11.3 %
Netherlands
9.8 %
Germany
9.0 %
France
8.1 %
Sweden
4.6 %
Russia
4.1 %
Switzerland
4.1 %
Portugal
4.0 %
Norway
4.0 %
Italy
3.3 %
Belgium
2.4 %
Cash
8.4 %
Overig
Totaal
100 %

Top 10 holdings (2018-06-30)

2.5 %
National Grid
2.2 %
Lukoil (US)
2.1 %
Roche Holding
2.1 %
BT Group
2.1 %
Novo Nordisk
2.1 %
Centrica
2.1 %
Unilever
2.1 %
Royal Dutch Shell
2.1 %
Galp Energia
2.1 %
Lloyds TSB
Totaal
21.4 %

Sector allocation (2018-06-30)

26.9 %
Financials
11.3 %
Oil & gas
10.0 %
Telecommunications
9.9 %
Utilities
8.3 %
Basic Materials
8.3 %
Consumer goods
8.2 %
Consumer services
6.7 %
Industrials
6.2 %
Health Care
2.4 %
Other
1.9 %
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
0.40 %
Service fee i
0.10 %
Expected ongoing charges i
0.55 %
Ongoing charges last financial year i
0.56 %
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 2016/2017.

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
0,0% per June 2018
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
0.40 %
Downward swing factor i
0.15 %
As of 1 January 2018 the swing factor has been adjusted from 0.30%/0.30% to 0.40%/0.15%.
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 (calculated in Euro)
Investment category
High Dividend Equity
Universum
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 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
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 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 that we invest in. Our full voting records are available here.

Our 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.