Kempen European Sustainable Value Creation Fund N.V.

Profile

Kempen European Sustainable Value Creation Fund (KESVCF) is primarily created for long-term investors and offers the opportunity to invest in a diversified portfolio of European publicly traded shares of companies open to stakeholders and environmental, social and governance criteria in their strategy. KESVCF aims to select investments focusing on long-term and sustainable growth.

Investments in the fund are screened by an independent data provider to assess compliance with environmental, social and governance (ESG) criteria. The Fund will only invest in companies with an ESG rating of at least BB or a similar rating. The first transaction day has taken place on 14 November 2017.

Management team

Richard Klijnstra, Erwin Dut, Mark Oud, Martijn Kleinbussink

Performance per 2018-05-31 (rebased)

No chart data available

Performance per 2018-05-31

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  Fund Benchmark
1 month 0.7 % 0.1 %
3 months 3.2 % 2.6 %
This year -0.3 % 0.2 %
2017 1.4 % 0.9 %
Since inception (on annual basis) i 1.0 % 1.1 %
Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The performance figures shown in the graph are rebased. 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 200.68 M 2018-05-31
Share class size
EUR 200.68 M 2018-05-31
Number of shares
1,986,456 2018-05-31
Net Asset Value
EUR 100.82 2018-06-22
Transaction price
EUR 102.39 2018-06-08

Fund characteristics per 2018-05-31

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  Fund Benchmark
Number of holdings 32 443
Dividend yield i 2.99 % 3.39 %
Weighted average market capitalization i EUR 46,811 M EUR 63,885 M
P/E ratio i 16.65 14.99
Active share i 85.68 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global European Sustainable Value Creation 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 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/en/asset-management). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

 

Portfolio developments per 2018-05-31

In May, the fund earned a return of 0.7% against a return on the MSCI Europe Index of 0.1%. In 2018 so far, the fund has earned a return of -0.3% compared to a return on the MSCI Europe Index of 0.2%.

The healthcare, industrials and technology sectors made the largest positive contributions to the performance, while the financial and telecommunications sectors contributed negatively. Sector allocation had a neutral effect this month.

The top-3 best performers for May were: AstraZeneca, Kerry Group and SAP. AstraZeneca was strong thanks to positive trials on a number of pipeline oncology medicines. In spite of relatively weak results and healthcare legislation issues in the US, AstraZeneca equities noted a sound performance. Kerry is profiting from renewed interest in the food ingredients sector, driven by a number of announced takeovers. Market leader IFF acquired Frutarom and Givaudan put in a bid for Naturex. Both target acquisitions have a strong focus on organic ingredients, a segment undergoing robust growth and which Kerry is increasingly concentrating on.

There was little specific news at SAP. The success of the transition to the cloud platform and the revenue model based on subscriptions is becoming ever more visible.

ING Group, Vodafone and NN Group were the largest negative outliers. The financial sector as a whole was weak, with banks lagging furthest behind in relative terms. The cause was the political uncertainty in Italy and declining bond yields. ING reported robust operational results, but its capital position was weaker than expected. Vodafone announced the long-awaited acquisition of the Liberty Global operations, John Malone’s cable networks giant. Vodafone is taking over its German and Central European operations. The market was relieved that the scope of the acquisition is being restricted to these regions, as the potential for synergy is greatest within these regions. The price was at the lower end of expectations. News of the acquisition was accompanied by the announcement of the Vodafone CEO’s departure. After ten years in the post he will hand over to the CFO.

We have sold the full position in Novartis. The company has been downgraded from Watchlist to Fail on the UN Global Compact list due to persisting issues relating to corruption and bribery. Our engagement on this topic has given us no reason to retain the position.

We have expanded the fund’s positions in Croda, Siemens Healthineers and Covestro.

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 addition to the portfolio.
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global European Sustainable Value Creation 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 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/en/asset-management). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Performance per 2018-05-31 (rebased)

No chart data available

Performance per 2018-05-31

Slide to see more
  Fund Benchmark
1 month 0.7 % 0.1 %
3 months 3.2 % 2.6 %
This year -0.3 % 0.2 %
2017 1.4 % 0.9 %
Since inception (on annual basis) i 1.0 % 1.1 %
Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The performance figures shown in the graph are rebased. The value of your investments may fluctuate. Past performance provides no guarantee for the future.

Dividends

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Distributing
Yes
Number of distributions per year
1
Dividend calendar
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global European Sustainable Value Creation 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 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/en/asset-management). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Geographic allocation (2018-05-31)

26.0 %
United Kingdom
17.8 %
France
16.5 %
Netherlands
15.5 %
Germany
6.6 %
Sweden
3.7 %
Ireland
3.3 %
Switzerland
3.1 %
Norway
1.3 %
Spain
3.9 %
NoMatchingBucket
2.5 %
Cash
Totaal
100 %

Top 10 holdings (2018-05-31)

4.2 %
LVMH Moet Hennessy Louis Vuitton
4.0 %
AstraZeneca
3.9 %
Ferguson
3.9 %
Essilor
3.8 %
SAP
3.8 %
ASSA Abloy
3.7 %
Kerry Group
3.7 %
Valeo
3.6 %
Nationale Nederlanden Group
3.6 %
Heineken Holding
Totaal
38.0 %

Sector allocation (2018-05-31)

15.3 %
Industrial Goods & Services
14.0 %
Health Care
12.7 %
Insurance
10.1 %
Food & Beverage
7.3 %
Personal & Household Goods
6.9 %
Automobiles & Parts
6.5 %
Technology
6.2 %
Banks
5.7 %
Chemicals
3.9 %
Basic Resources
3.7 %
Retail
3.1 %
Telecommunications
2.2 %
Utilities
2.5 %
Cash
Totaal
100 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global European Sustainable Value Creation 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 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/en/asset-management). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Ongoing charges

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Management fee i
0.50 %
Service fee i
0.10 %
Expected ongoing charges i
0.60 %

Other costs

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Upward swing factor i
0.35 %
Downward swing factor i
0.15 %
As of 1 January 2018 the swing factor has been adjusted from 0.30%/0.10% naar 0.35%/0.15%.
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global European Sustainable Value Creation 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 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/en/asset-management). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Share class details

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Share class
N
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
MSCI Europe Net Total Return Index
Investment category
Sustainable Value Creation
Universum
European equities
Inception date
2017-11-13
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.

Tradability

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Listed
yes, listed on the NAV Trading Facility of Euronext
Subscription/Redemption Frequency
Daily
ISIN i
NL0012512958
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global European Sustainable Value Creation 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 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/en/asset-management). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Read more information about Kempen Capital Management N.V. on this site and find also more information on BNP Paribas Securities Services S.C.A.

Kempen Capital Management N.V. (KCM) is the management company of Kempen Global European Sustainable Value Creation 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 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/en/asset-management). 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.

Kempen Capital Management N.V. (KCM) is the management company of Kempen Global European Sustainable Value Creation 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 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/en/asset-management). The value of your investment may fluctuate. Past performance provides no guarantee for the future.