- Kempen
- Kempen European Sustainable Equity Fund NV
Kempen European Sustainable Equity Fund NV
Profile
Investments in the fund are screened by an independent data provider to assess compliance with environmental, social and governance (ESG) criteria. KESEF will only invest in companies with an ESG rating of at least BB or a similar rating. On June 28, 2021, the name of this fund was changed from Kempen European Sustainable Value Creation Fund NV into Kempen European Sustainable Equity Fund NV.
Management team
Performance per 2022-11-30 (rebased)
Performance per 2022-11-30
Fund | Benchmark | |
---|---|---|
1 month | 4.8 % | 6.9 % |
3 months | 3.0 % | 6.4 % |
This year | -14.8 % | -6.2 % |
2019 | 29.9 % | 26.0 % |
2020 | 5.1 % | -3.3 % |
2021 | 32.3 % | 25.1 % |
1 year (on annual basis) | -10.2 % | -1.0 % |
3 years (on annual basis) i | 6.0 % | 5.0 % |
5 years (on annual basis) i | 6.8 % | 5.2 % |
Since inception (on annual basis) i | 6.8 % | 5.2 % |
Key figures
Total fund size | EUR 334.75 M 2022-11-30 |
Share class size | EUR 334.75 M 2022-11-30 |
Number of shares | 2,665,671 2022-11-30 |
Net Asset Value i | EUR 123.80 2022-12-16 |
Transaction price i | EUR 124.25 2022-12-09 |
Fund characteristics per 2022-11-30
Fund | Benchmark | |
---|---|---|
Number of holdings | 32 | 427 |
Dividend yield i | 2.50 % | 3.19 % |
Weighted average market capitalization i | EUR 73,976 M | EUR 91,558 M |
P/E ratio i | 19.47 | |
Active share i | 83.68 % |
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 2022-11-30
Since its inception the fund has outperformed the benchmark (6.8% versus 5.2% for the MSCI Europe Index) including on a 3-year basis (6.0% versus 5.0% for the MSCI Europe Index).
The technology and healthcare sectors made the largest positive contributions to the return, while the biggest negative contribution came from the consumer discretionary sector. The allocation and selection effects were negative for the month.
ASML, EssilorLuxottica and Allianz accounted for the largest positive contributions to the result. Chip machine manufacturer ASML held an investor day at which it explained its long-term plans in more detail. As of 2025, the company forecasts annual capital expenditure of EUR1.5 billion, an increase of 50% versus the target it set a year ago. The expenditure is aimed at financing a considerable expansion of production capacity. ASML is now planning to manufacture about 90 units of its high-grade EUV lithography tools in 2025, 50% more than expected.
Lonza, NN Group and Roche made the biggest negative contributions to the result. Roche, a Swiss pharmaceutical company, published disappointing results on an experimental drug against Alzheimer’s disease called Gantenerumab. The drug, which was designed to slow cognitive decline, failed to meet its goals in two closely-monitored clinical trials, a discouraging development that underlines the challenges of developing treatments for this disease that causes memory loss.
No changes were made to the portfolio in November.
***
What kind of companies do we seek?
We seek profitable companies undergoing structural growth that will create shareholder value in the long term alongside a clear social mandate.
The best results are achieved if the interests of all the stakeholders are aligned. This requires not only products and services but also operations to be in line with the wishes and requirements of society (licence to operate). Moreover, the companies need to have sufficient opportunities for growth to be able to invest at an attractive return (innovation and expansion). In order to sustain earnings growth over the long term, companies need to enjoy sustainable competitive advantages compared to existing and new competitors (strong strategic position).
The role of management
We expect management to pursue a long-term strategy in addition to conducting sound day-to-day management. The risks and opportunities relating to ESG need to be clearly incorporated, backed up by sensible investment plans that respond to long-term trends and match the company’s strategic positioning and growth opportunities.
Quality and valuation
We believe the selected companies are above-average quality in terms of strategy and operations and are capable of creating long-term value for all stakeholders. Depending on the absolute valuation of their equities, they could form an interesting long-term addition to the portfolio.
ESG
ESG MSCI ratings
The portfolio has a clear overweight in the leaders (AAA/AA) and does not invest in the laggards (B/CCC).
Source: MSCI
KCM versus Sustainalytics ESG risk rating
The portfolio is not invested in companies with a high or severe ESG risk according to the KCM risk rating.
Source: Sustainalytics. KESVC* according to KCM ESG risk rating, KESVC** and MSCI Europe according to Sustainalytics ESG risk rating
SDG Solutions Exposure
The SDG Solutions Assessment identifies a product or service category’s contribution or obstruction towards attaining each of 15 individual sustainability objectives. A company has a score between -10 (significant obstruction) and +10 (significant contribution). The SDG Solutions score for the portfolio is 3.25 versus 0.67 for the benchmark.
Source: ISS
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 2022-11-30 (rebased)
Performance per 2022-11-30
Fund | Benchmark | |
---|---|---|
1 month | 4.8 % | 6.9 % |
3 months | 3.0 % | 6.4 % |
This year | -14.8 % | -6.2 % |
2019 | 29.9 % | 26.0 % |
2020 | 5.1 % | -3.3 % |
2021 | 32.3 % | 25.1 % |
1 year (on annual basis) | -10.2 % | -1.0 % |
3 years (on annual basis) i | 6.0 % | 5.0 % |
5 years (on annual basis) i | 6.8 % | 5.2 % |
Since inception (on annual basis) i | 6.8 % | 5.2 % |
Dividends
Distributing | Yes |
Last dividend | EUR 5.80 |
Ex-date last dividend | 2022-11-24 |
Number of distributions per year | 1 |
Dividend calendar |
Risk analysis (ex post) per 2022-11-30
3 years | Since inception | |
---|---|---|
Maximum drawdown i | -18.85 % | -18.85 % |
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.
Top 5 contribution (2022-11-30)
Contribution i | Performance i | |
---|---|---|
ASML | 0.77 % | 17.73 % |
EssilorLuxottica | 0.50 % | 10.57 % |
Allianz | 0.47 % | 12.16 % |
BE Semiconductor Industries | 0.38 % | 17.17 % |
Siemens Healthineers | 0.37 % | 8.76 % |
Bottom 5 contribution (2022-11-30)
Contribution i | Performance i | |
---|---|---|
Roche Holding | -0.28 % | -6.68 % |
Nationale Nederlanden Group | -0.21 % | -5.20 % |
Lonza | -0.15 % | -4.10 % |
Vodafone Group | -0.14 % | -6.50 % |
RELX | -0.05 % | -2.18 % |
Geographic allocation (2022-11-30)
Top 10 holdings (2022-11-30)
Sector allocation (2022-11-30)
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.
Ongoing charges
Management fee i | 0.500 % |
Service fee i | 0.10 % |
Expected ongoing charges i | 0.60 % |
Ongoing charges last financial year i | 0.60 % |
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
Share class | N |
Investor type | Institutional & Private |
Distributing | Yes |
Benchmark i | MSCI Europe Net Total Return Index |
Investment category | Sustainable Equity |
Universe | European equities |
Inception date | 2017-11-13 |
Domicile | Netherlands |
May be offered to all investors in | 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 | Van Lanschot Kempen Investment Management NV |
Depositary and custodian | BNP Paribas S.A., Netherlands Branch |
Tradability
Listed | yes, listed on the NAV Trading Facility of Euronext |
Subscription/Redemption Frequency | Daily |
ISIN i | NL0012512958 |
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.
No sustainable investment objective
The product excludes at least 20% of the investment universe through the application of strict exclusion criteria. These take into account international standards, such as the UN Global Compact framework, the OECD Guidelines for Multinational Enterprises, the 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. Furthermore, the Fund excludes companies with low ESG ratings.
The Fund uses a combination of principal adverse impact indicators and exclusion criteria to ensure the sustainable investments do not significantly harm any of the sustainable investment objectives. Furthermore, we monitor the number of severe controversies and take this broad set of indicators into account in the portfolio construction, when integrating ESG factors and when executing our active ownership activities.Â
Environmental or social characteristics of the financial product
• Climate change mitigation and climate change adaptation in line with the Paris Climate Agreement; Â
• The protection of biodiversity and ecosystems; Â
• The transition to a circular economy.Â
The Fund promotes social characteristics related to:Â
• Decent work;Â
• Adequate living standards and wellbeing for end-users; Â
• Other social topics such as gender equality and broader diversity matters. Â
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The environmental characteristics promoted by the Fund seek to contribute to achievement of the climate goals of the Paris Agreement and the National Climate Agreement of the Netherlands (‘Klimaatakkoord’). This decarbonization pathway encompasses short-term (2025) objectives, a mid-term (2030) ambition and a long-term commitment to be net zero by 2050. Although there has been no index designated as a reference benchmark, by 2025 the Fund aims to have a carbon intensity that is below the EU Paris Aligned (EU PAB) pathway. This pathway assumes a carbon intensity that is 50% lower than the MSCI Europe Total Return Net Index (the “Benchmarkâ€) in 2019 with a subsequent 7% annual reduction. Â
Investment strategy
Before and after selecting the asset, we apply adequate (ESG) due diligence measures. This can help to enhance long-term risk adjusted returns for investors, in accordance with the investment objectives of the Fund. We look at each company on a case-by-case basis, taking into account both material risks in a given industry and the company’s respective risk exposure, practices and disclosure. This includes:Â
- an assessment of good governance practices. The investee companies are rated for governance aspects using external research and internal assessments.Â
- the company’s exposure to past controversies and future ESG opportunities
Based on fundamental ESG analysis we form an opinion on the quality of a company’s ESG profile and award a score (1-5).
Proportion of investments
Monitoring of environmental or social characteristics
Methodologies
Kempen ESG Score serves as input throughout the investment process (exclusion, integration in the valuation models, engagement). Scores are based on 21 ESG risk factors, which are selected based on their materiality per industry.Â
Carbon emission intensity is used as the key carbon metric. We calculate carbon intensity based on revenues (weighted average carbon intensity), which we use for our commitment, ambition and objectives.Â
EU Taxonomy alignment is measured by turnover, for which we use a combination of actual data from investee companies and estimates on EU Taxonomy alignment made by a third party provider.Â
Engagement Milestones are used in order to measure engagement success. All engagement contacts are recorded and classified: Milestone 1 (company is informed), Milestone 2 (company acknowledges request), Milestone 3 (company commits to improve), up until Milestone 4 (proof of improvement).
Data sources and processing
- Institutional Shareholder Services (ISS), used for proxy voting, governance research, carbon data and Sustainable Development Goals data;Â
- MSCI ESG Research: used for company ESG Ratings, product involvement data, principal adverse indicators and to assess the degree to which the investments are in environmentally sustainable economic activities under the EU Taxonomy, measured by turnover;Â
- Sustainalytics: used for ESG Risk Ratings and product involvement data.Â
Internal as well as external data is collected and processed in several data analytics (including FactSet, PowerBI, Tableau) and internal compliance systems (including ThinkFolio).
Exclusion criteria
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 |
Fund carbon emission targets
Limitations to methodologies and data
Due diligence
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.
Read more information about Van Lanschot Kempen Investment Management N.V. on this site and find also more information on BNP Paribas S.A., Netherlands Branch.
Factsheets
Prospectus
Sustainability related disclosures
Shareholders' Meeting
Formal documents other
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.