Kempen European High Dividend Fund NV - Class Y

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. 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. Aandelen in klasse Y zijn alleen beschikbaar voor door de beheerder geselecteerde distributeurs die namens hun cliënten orders inleggen.

Management team

Jorik van den Bos, Joris Franssen, Joost de Graaf, Dimitri Willems, Luc Plouvier, Marius Bakker

Performance per 2020-08-31 (rebased)

No chart data available

Performance per 2020-08-31

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  Fund Benchmark
1 month 3.2 % 2.9 %
3 months 4.1 % 4.6 %
This year -19.2 % -11.5 %
2017 10.9 % 10.3 %
2018 -7.8 % -10.6 %
2019 18.0 % 26.0 %
1 year (on annual basis) -10.4 % -2.9 %
3 years (on annual basis) i -2.9 % 1.4 %
5 years (on annual basis) i 0.2 % 2.6 %
Since inception (on annual basis) i 0.8 % 1.2 %
The results shown of the periods before 20 July 2016, the inception date of Kempen European High Dividend Fund N.V. class Y, 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. For the calculation of the performance figures a deviant net asset value (NAV) is used. The NAV is calculated based on the closing prices of the Fund investments per 29 March 2018, in contrast of the original NAV issued, that partly is calculated based on the closing prices of 2 April 2018 (North America) and calculated based on ‘snapshots’ prices of 3 April 2018 (Asian and Pacific investments). The deviating NAV is used for better comparison with the benchmark that is also calculated based on the closing prices of the investments. 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 184.98 M 2020-08-31
Share class size
EUR 59.69 M 2020-08-31
Number of shares
10,638,118 2020-08-31
Net Asset Value i
EUR 5.70 2020-09-18
Transaction price i
EUR 5.70 2020-09-18
Morningstar rating â„¢
Morningstar Analyst rating
Gold

Fund characteristics per 2020-08-31

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  Fund Benchmark
Number of holdings 50 435
Dividend yield i 5.03 % 3.21 %
Weighted average market capitalization i EUR 37,076 M EUR 68,120 M
P/E ratio i 14.73
Active share i 82.55 %
Kempen Capital Management N.V. (KCM) is de beheerder van Kempen European High Dividend Fund N.V. (het “Fonds”). KCM heeft een vergunning als beheerder en staat onder toezicht van de Autoriteit Financiële Markten. Het Fonds is onder de vergunning van KCM geregistreerd bij de Autoriteit Financiële Markten.

Deze informatie biedt onvoldoende basis voor een beleggingsbeslissing. Lees daarom de Essentiële Beleggersinformatie (beschikbaar in het Nederlands) en het prospectus (beschikbaar in het Engels). Deze zijn verkrijgbaar op de website van KCM (www.kempen.com/nl/asset-management). De informatie op de website is (deels) beschikbaar in het Nederlands en het Engels. De waarde van uw belegging kan fluctueren. In het verleden behaalde resultaten bieden geen garantie voor de toekomst.

Developments per 2020-08-31

August was a positive month for equities in Europe, and at the same time KEHDF was able outperform the broader market. Notably, this was the first months in a long time in which value stocks in Europe performed better than growth stocks. However, year to date growth is still sharply outperforming value. This trend has been a massive headwind to our strategy but also presents a great opportunity going forward.

In August, stock selection in KEHDF was positive, sector allocation overall was neutral. Stock selection within energy and financials contributed to the performance. Within energy Wood Group was up sharply during the month after reassuring results and a further improvement of its balance sheet. The oil-services company is benefiting from a well-diversified client base with the struggling upstream oil & gas sector only being one third of profits. Within financials, ING and ABN Amro performed very well. ING reported in line with expectations, but capital was stronger than expected as the CET1 ratio increased to 15.0%. The outlook was also supportive. ABN Amro reported in-line and it announced a wind-down of its global sector’s loan book. This could free up more capital. KEHDF also benefited from its underweight in the healthcare sector that performed poorly this month.

In September we will implement the quarterly rebalance of KEHDF. Therefore trading was limited this month.

Despite outperformance this month the fund continues to lag the benchmark sharply this year. The market continues to favor companies with short-term earnings quality (health care, online retail etc.) rather than look at the potential to add value over the cycle. The dividend universe is overrepresented in the latter, presenting a very challenging environment for our strategy. Given the uncertain outlook, part of that short-termism is certainly justified. Much has been said about the ‘FAANG’ companies in the US already, a similar trend can be seen in Europe. Here a handful of companies (the GRANOLAS, a.o. Roche, Nestle, ASML) have greatly outperformed the rest of the market due to their defensive nature. However, it has resulted in a large valuation gap in the market. While some companies appear priced for perfection, others look priced for depression. We agree that several of those ‘quality’ companies can be attractive long-term investments. They tend to have superior businesses and we have (had) our fair share in the portfolio over time. However, in our view even the best company is not a great investment at any price.

We currently expect a forward dividend yield of around 4.5% for KEHDF. Obviously, this number is indicative and based on current figures with an outlook filled with uncertainties and therefore based on conservative estimates. KEHDF trades at an exceptional discount versus the market. Historically, this has led to a strong relative performance on the medium term. Also, the absolute valuation of the strategy is compelling. In summary, the current environment offers the opportunity to buy a well-diversified portfolio with solid earnings power at an attractive valuation.

Kempen Capital Management N.V. (KCM) is de beheerder van Kempen European High Dividend Fund N.V. (het “Fonds”). KCM heeft een vergunning als beheerder en staat onder toezicht van de Autoriteit Financiële Markten. Het Fonds is onder de vergunning van KCM geregistreerd bij de Autoriteit Financiële Markten.

Deze informatie biedt onvoldoende basis voor een beleggingsbeslissing. Lees daarom de Essentiële Beleggersinformatie (beschikbaar in het Nederlands) en het prospectus (beschikbaar in het Engels). Deze zijn verkrijgbaar op de website van KCM (www.kempen.com/nl/asset-management). De informatie op de website is (deels) beschikbaar in het Nederlands en het Engels. De waarde van uw belegging kan fluctueren. In het verleden behaalde resultaten bieden geen garantie voor de toekomst.

Performance per 2020-08-31 (rebased)

No chart data available

Performance per 2020-08-31

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  Fund Benchmark
1 month 3.2 % 2.9 %
3 months 4.1 % 4.6 %
This year -19.2 % -11.5 %
2017 10.9 % 10.3 %
2018 -7.8 % -10.6 %
2019 18.0 % 26.0 %
1 year (on annual basis) -10.4 % -2.9 %
3 years (on annual basis) i -2.9 % 1.4 %
5 years (on annual basis) i 0.2 % 2.6 %
Since inception (on annual basis) i 0.8 % 1.2 %
The results shown of the periods before 20 July 2016, the inception date of Kempen European High Dividend Fund N.V. class Y, 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. For the calculation of the performance figures a deviant net asset value (NAV) is used. The NAV is calculated based on the closing prices of the Fund investments per 29 March 2018, in contrast of the original NAV issued, that partly is calculated based on the closing prices of 2 April 2018 (North America) and calculated based on ‘snapshots’ prices of 3 April 2018 (Asian and Pacific investments). The deviating NAV is used for better comparison with the benchmark that is also calculated based on the closing prices of the investments. 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 0.06
Ex-date last dividend
2020-08-06
Number of distributions per year
4
Dividend calendar
De dividenduitkering van KEHDF (ex-datum 1-8-2018) is verwerkt in de IW per 31 juli 2018, en is derhalve verdisconteerd in de performancecijfers van juli.

Risk analysis (ex post) per 2020-08-31

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  3 years Since inception
Maximum drawdown i -29.35 % -56.33 %
Tracking error i 4.34 % 3.22 %
Information ratio i -1.00 -0.13
Beta i 1.14 0.96
Kempen Capital Management N.V. (KCM) is de beheerder van Kempen European High Dividend Fund N.V. (het “Fonds”). KCM heeft een vergunning als beheerder en staat onder toezicht van de Autoriteit Financiële Markten. Het Fonds is onder de vergunning van KCM geregistreerd bij de Autoriteit Financiële Markten.

Deze informatie biedt onvoldoende basis voor een beleggingsbeslissing. Lees daarom de Essentiële Beleggersinformatie (beschikbaar in het Nederlands) en het prospectus (beschikbaar in het Engels). Deze zijn verkrijgbaar op de website van KCM (www.kempen.com/nl/asset-management). De informatie op de website is (deels) beschikbaar in het Nederlands en het Engels. De waarde van uw belegging kan fluctueren. In het verleden behaalde resultaten bieden geen garantie voor de toekomst.

Top 5 contribution (2020-08-31)

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  Contribution i Performance i
Wood Group 0.51 % 30.83 %
Valeo 0.35 % 17.75 %
Deutsche Post 0.31 % 14.61 %
ING Groep 0.30 % 15.40 %
WPP 0.27 % 14.65 %

Bottom 5 contribution (2020-08-31)

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  Contribution i Performance i
Sydbank A/S -0.15 % -12.39 %
Orange -0.11 % -5.87 %
National Grid -0.10 % -5.54 %
Enagas -0.09 % -4.12 %
Sanofi -0.09 % -4.16 %

Geographic allocation (2020-08-31)

19.1 %
United Kingdom
15.2 %
France
10.5 %
Netherlands
8.8 %
Germany
8.5 %
Switzerland
6.0 %
Sweden
4.3 %
Norway
3.9 %
Spain
3.9 %
Portugal
3.8 %
Italy
1.2 %
Cash
14.8 %
Overig
Total
100 %

Top 10 holdings (2020-08-31)

2.6 %
Nationale Nederlanden Group
2.4 %
Engie
2.4 %
Allianz
2.4 %
ALD
2.3 %
Swatch
2.3 %
Enel
2.3 %
Unilever
2.2 %
Hellenic Telecomm. Organization
2.2 %
ING Groep
2.2 %
Danone
Total
23.4 %

Sector allocation (2020-08-31)

27.6 %
Financials
14.6 %
Consumer goods
11.4 %
Oil & gas
10.9 %
Utilities
8.2 %
Industrials
8.1 %
Telecommunications
6.4 %
Health Care
6.2 %
Consumer services
5.5 %
Basic Materials
1.2 %
Other
Total
100 %
The cash position is included in ‘Other’.
Kempen Capital Management N.V. (KCM) is de beheerder van Kempen European High Dividend Fund N.V. (het “Fonds”). KCM heeft een vergunning als beheerder en staat onder toezicht van de Autoriteit Financiële Markten. Het Fonds is onder de vergunning van KCM geregistreerd bij de Autoriteit Financiële Markten.

Deze informatie biedt onvoldoende basis voor een beleggingsbeslissing. Lees daarom de Essentiële Beleggersinformatie (beschikbaar in het Nederlands) en het prospectus (beschikbaar in het Engels). Deze zijn verkrijgbaar op de website van KCM (www.kempen.com/nl/asset-management). De informatie op de website is (deels) beschikbaar in het Nederlands en het Engels. De waarde van uw belegging kan fluctueren. In het verleden behaalde resultaten bieden geen garantie voor de toekomst.

 

SWING FACTORS

An overview of the current swing factors are available here.

Ongoing charges

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Management fee i
0.50 %
Service fee i
0.15 %
Expected ongoing charges i
0.65%
Ongoing charges last financial year i
0.65 %
De lopende kosten laatste boekjaar hebben betrekking op het boekjaar 2018/2019.

De service fee wordt elk boekjaar opnieuw bepaald op basis van de grootte van het fondsvermogen per laatste dag van het voorgaande boekjaar:
< of gelijk aan EUR 200 miljoen: 0,20%
Tussen EUR 200 en EUR 700 miljoen: 0,15%
>EUR 700 miljoen: 0,10%
Kempen Capital Management N.V. (KCM) is de beheerder van Kempen European High Dividend Fund N.V. (het “Fonds”). KCM heeft een vergunning als beheerder en staat onder toezicht van de Autoriteit Financiële Markten. Het Fonds is onder de vergunning van KCM geregistreerd bij de Autoriteit Financiële Markten.

Deze informatie biedt onvoldoende basis voor een beleggingsbeslissing. Lees daarom de Essentiële Beleggersinformatie (beschikbaar in het Nederlands) en het prospectus (beschikbaar in het Engels). Deze zijn verkrijgbaar op de website van KCM (www.kempen.com/nl/asset-management). De informatie op de website is (deels) beschikbaar in het Nederlands en het Engels. De waarde van uw belegging kan fluctueren. In het verleden behaalde resultaten bieden geen garantie voor de toekomst.

Share class details

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Share class
Y
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
2016-07-20
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.
Depositary and custodian
BNP Paribas Securities Services S.C.A.
Morningstar rating â„¢
Morningstar Analyst rating
Gold

Tradability

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Listed
no
Subscription/Redemption Frequency
Dagelijks
ISIN i
NL0011843172
Details
Orders must be submitted via Fundsettle.
Klasse Y van Kempen European High Dividend Fund N.V. is alleen toegankelijk voor orders ontvangen via het Fundsettle-platform. Aandelen in klasse Y zijn alleen beschikbaar voor door de beheerder geselecteerde distributeurs die namens hun cliënten orders inleggen.
Kempen Capital Management N.V. (KCM) is de beheerder van Kempen European High Dividend Fund N.V. (het “Fonds”). KCM heeft een vergunning als beheerder en staat onder toezicht van de Autoriteit Financiële Markten. Het Fonds is onder de vergunning van KCM geregistreerd bij de Autoriteit Financiële Markten.

Deze informatie biedt onvoldoende basis voor een beleggingsbeslissing. Lees daarom de Essentiële Beleggersinformatie (beschikbaar in het Nederlands) en het prospectus (beschikbaar in het Engels). Deze zijn verkrijgbaar op de website van KCM (www.kempen.com/nl/asset-management). De informatie op de website is (deels) beschikbaar in het Nederlands en het Engels. De waarde van uw belegging kan fluctueren. In het verleden behaalde resultaten bieden geen garantie voor de toekomst.
Kempen Capital Management N.V. (KCM) is de beheerder van Kempen European High Dividend Fund N.V. (het “Fonds”). KCM heeft een vergunning als beheerder en staat onder toezicht van de Autoriteit Financiële Markten. Het Fonds is onder de vergunning van KCM geregistreerd bij de Autoriteit Financiële Markten.

Deze informatie biedt onvoldoende basis voor een beleggingsbeslissing. Lees daarom de Essentiële Beleggersinformatie (beschikbaar in het Nederlands) en het prospectus (beschikbaar in het Engels). Deze zijn verkrijgbaar op de website van KCM (www.kempen.com/nl/asset-management). De informatie op de website is (deels) beschikbaar in het Nederlands en het Engels. De waarde van uw belegging kan fluctueren. In het verleden behaalde resultaten bieden geen garantie voor de toekomst.

Kempen's vision & mission

Kempen Capital Management is an asset manager that believes in stewardship and investment focusing on the long-term for the benefit of all stakeholders. Value creation is at the heart of the services we provide to our clients. We believe that being an engaged shareholder on environmental, social and governance (ESG) issues and retaining a long-term focus, is critical to helping our clients to preserve and create sustainable wealth that has positive real world impact and economic returns.

Kempen wide approach to responsible investment

We are committed to create sustainable alpha. The four pillars of our ESG-policy are:

  • ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.

  • Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.

  • Active ownership: Being responsible stewards of our clients’ capital and using our influence through engagement and voting to improve corporate behaviour on specific ESG issues and achieve positive change

  • Positive impact: Investing with an objective to achieve positive real world outcomes and impact, such as contributing to the UN Sustainable Development Goals.

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To put our mission and vision into practice we engage with our investee companies on a wide array of strategic, financial, and ESG topics. As an active owner we use our influence to improve our investee companies’ ESG performance.  This helps us address some of the most pressing and important sustainability issues facing business and the world. Our focus themes for engagement are: human rights, labour rights, climate change and governance.

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Through collaboration with other investors and industry think tanks we contribute to the development of principles and standards of corporate responsibility both at sector levels, as well as investee company level.Â

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Our full voting records are available here.

Our fund approach to responsible investment

Kempen’s ESG policy is fully implemented in our fund’s investment process across the three relevant pillars of:  Exclusion, Integration and Active ownership.

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1. Exclusion

The fund follows the clear and transparent exclusion framework developed by Kempen. According to the framework the fund currently excludes companies involved in the production of controversial weapons and tobacco. Furthermore, the strategy avoids investments in companies that structurally violate ESG criteria, with no willingness to improve. In total 13 companies are excluded from the fund’s European equity universe.

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2. ESG integration

ESG criteria are an integral part of the investment process. The aim is to incorporate material ESG issues in our fundamental analysis. This means that portfolio managers perform an in-depth analysis of ESG data and material ESG risks and reflect them in the assumptions used in the valuation assessment. For example, as demonstrated in the chart on the right side, the ESG impact forms part of our Earnings Power Value (EPV) valuation model.

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3. Active ownership: Engagement

The aim of the engagements our fund participates in is to use our influence as a shareholder to encourage the companies we invest in to improve policies and practices in specific ESG issues. A successful engagement reduces the ESG risk and as a result unlocks value in the interest of our clients. In 2018 we held as a team over 200 company engagements on a range of topics. Â

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In order to lay out our guiding investment principles, we send a “welcome letter” to most of the companies we invest in. In this letter, we explain to the company why we made the decision to invest and what our long-term expectations are, including those in the areas of social and environmental responsibilities and corporate governance.Â

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Our fund also believes in the strength of collaborative engagement. Through cooperation with other investors and fund managers, we can increase the leverage of our engagement activities. In 2018, for example, we participated in the CIO Exchange Collaboration on Energy transition.

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Our engagement focus is on: climate change and energy efficiency, and corporate governance. For example recent activities include:Â

  • Shell: We engaged with senior management to set carbon targets with success as Shell announced that it will link its scope 1, 2 and 3 carbon targets to its remuneration. You can find the engagement factsheet here.

  • Severstal: We are monitoring Severstal’s health & safety efforts and encouraging the company to establish health & safety best practices that set an example to other Russian steel producers. As a result of the engagement, the company is working on a revised policy and process on labour. You can find the engagement factsheet here.

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3. Active ownership: Voting

Exercising our voting rights is also an essential part of the responsible investment philosophy of our fund. We analyse each vote on a case by case basis and often inform the company about our voting intention ahead of the meeting. Where there is a recommendation to vote against management, we ask the company to clarify their viewpoints. In 2018 we voted at a total of 104 shareholder meetings.

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Risks

For more information about the mid and long term risks associated with the investments:

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Although Kempen Capital Management N.V.’s information providers, including without limitation, MSCI ESG Research LLC and its affiliates (the “ESG Parties”), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of any data herein. None of the ESG Parties makes any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

ESG Report
Screening MSCI ESG research
Screening MSCI ESG research
UN global impact
ESG integration in the EPV valuation model
ESG integration in the EPV valuation model
Bron EN
disclaimer
Kempen Capital Management N.V. (KCM) is de beheerder van Kempen European High Dividend Fund N.V. (het “Fonds”). KCM heeft een vergunning als beheerder en staat onder toezicht van de Autoriteit Financiële Markten. Het Fonds is onder de vergunning van KCM geregistreerd bij de Autoriteit Financiële Markten.

Deze informatie biedt onvoldoende basis voor een beleggingsbeslissing. Lees daarom de Essentiële Beleggersinformatie (beschikbaar in het Nederlands) en het prospectus (beschikbaar in het Engels). Deze zijn verkrijgbaar op de website van KCM (www.kempen.com/nl/asset-management). De informatie op de website is (deels) beschikbaar in het Nederlands en het Engels. De waarde van uw belegging kan fluctueren. In het verleden behaalde resultaten bieden geen garantie voor de toekomst.