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 2017-11-30 (rebased)

No chart data available

Performance per 2017-11-30

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  Fund Benchmark
1 month -1.0 % -2.1 %
3 months 3.9 % 3.7 %
This year 10.9 % 9.4 %
2014 3.2 % 6.8 %
2015 7.2 % 8.2 %
2016 3.5 % 2.6 %
3 years (on annual basis) i 6.7 % 6.2 %
5 years (on annual basis) i 8.8 % 9.5 %
Since inception (on annual basis) i 1.7 % 1.4 %
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 749.77 M 2017-11-30
Number of shares
11,276,761 2017-11-30
Net Asset Value i
EUR 7.32 2017-12-15
Transaction price i
EUR 7.30 2017-12-15
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Fund characteristics per 2017-11-30

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  Fund Benchmark
Number of holdings 55 444
Dividend yield i 4.16 % 3.19 %
Weighted average market capitalization i EUR 44,506 M EUR 65,690 M
P/E ratio i 14.93 17.81
Active share i 78.73 %
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 2017-11-30

In November, equity markets in Europe were weak, with KEHDF performing better than the benchmark. On a year-to-date basis KEHDF is also well ahead of the MSCI Europe Index. In addition, KEHDF is doing much better than the high dividend universe. Dividend as a style is lagging the broader market.

Traditionally, in more uncertain and negative markets, KEHDF tends to do relatively well and this was the case this month. The stock selection in the KEHDF portfolio was strong across all sectors, particularly within the telecommunication sector. Vodafone, Orange and Telenor all performed well. Selection within the utilities sector detracted from the performance after a profit warning from UK utility Centrica. The company unexpectedly pointed to more competition in the US business. We think this has been more than priced into the stock and continue to hold on to our position.

Portfolio developments per 2017-11-30

In December we will complete our quarterly rebalance, the fourth and last one in 2017.

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 4.5%. 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 2017-11-30 (rebased)

No chart data available

Performance per 2017-11-30

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  Fund Benchmark
1 month -1.0 % -2.1 %
3 months 3.9 % 3.7 %
This year 10.9 % 9.4 %
2014 3.2 % 6.8 %
2015 7.2 % 8.2 %
2016 3.5 % 2.6 %
3 years (on annual basis) i 6.7 % 6.2 %
5 years (on annual basis) i 8.8 % 9.5 %
Since inception (on annual basis) i 1.7 % 1.4 %
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
2017-11-02
Number of distributions per year
4
Dividend calendar

Risk analysis (ex post) per 2017-11-30

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  3 years Since inception
Maximum drawdown i -14.94 % -56.33 %
Tracking error i 2.31 % 2.95 %
Information ratio i 0.21 0.10
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 (2017-11-30)

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  Contribution i Performance i
Mediobanca 0.14 % 7.03 %
Roche Holding 0.13 % 6.80 %
Vodafone Group 0.11 % 5.63 %
Allied Irish Banks 0.11 % 7.41 %
Britvic 0.08 % 5.94 %

Bottom 5 contribution (2017-11-30)

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  Contribution i Performance i
Centrica -0.28 % -15.19 %
ABN AMRO Holding -0.12 % -6.00 %
Aggreko -0.12 % -9.68 %
AstraZeneca -0.11 % -5.42 %
Yara International -0.11 % -8.00 %

Geographic allocation (2017-11-30)

31.2 %
United Kingdom
12.6 %
The Netherlands
8.2 %
France
7.9 %
Switzerland
6.6 %
Norway
6.4 %
Italy
5.5 %
Germany
5.0 %
Sweden
4.0 %
Portugal
3.5 %
Belgium
9.1 %
Others
Totaal
100 %

Top 10 holdings (2017-11-30)

2.3 %
Pearson
2.2 %
Novo Nordisk
2.2 %
Mediobanca
2.1 %
Vodafone Group
2.1 %
Enel
2.1 %
Galp Energia
2.1 %
Telenor
2.1 %
Atlantia
2.1 %
Boskalis Westminster
2.1 %
Royal Dutch Shell
Totaal
21.4 %

Sector allocation (2017-11-30)

25.6 %
Financials
12.4 %
Industrials
10.2 %
Telecommunications
10.0 %
Utilities
9.8 %
Health Care
9.5 %
Oil & gas
7.8 %
Consumer goods
6.1 %
Consumer services
5.3 %
Basic Materials
1.7 %
Technology
1.7 %
Other
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
0.57 %
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%

Performance fee

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Potential performance fee
0 % - 0.20 %
Current performance fee
0.002 % per November 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 %
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
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.