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
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 202.48 M 2018-01-31
Number of shares
1,976,938 2018-01-31
Net Asset Value
EUR 97.51 2018-02-16
Transaction price
EUR 99.33 2018-02-08
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 2018-01-31

KESVCF started the year with a positive return of 1.0%, but in doing so lagged behind its benchmark: the MSCI Europe Index noted a positive return of 1.6% in January.

The industrial sector accounted for the largest positive contribution to the fund’s performance, while the financial and healthcare sectors made the largest negative contributions.

ASML (technology), Covestro (materials) and Michelin (consumer discretionary) provided the largest positive contributions. ASML published strong results and profited from the growing demand for the latest EUV machines and the persisting growth on the market for semiconductor machines. Covestro expects a positive impact from the tax reforms in the US and the liquidity of the stock is increasing as former owner Bayer is cutting its stake in the company.

Kerry Group (consumer staples), National Grid (utilities) and Coats (consumer discretionary) were the largest negative outliers. Kerry was adversely affected by the more general negative sentiment in the consumer staples sector, driven by rising interest rates. UK utility company National Grid came under pressure as a result of a proposal from regulator Ofgem. National Grid may face a mechanism being imposed on its project to connect the Hinkley Point C nuclear power station to the electricity network which will yield a lower return.

One change was made to the portfolio: the holding in UK funeral company Dignity was sold following what we see as a very rapid structural deterioration in the market’s competitive and price dynamics.

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.

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 (2018-01-31)

24.3 %
United Kingdom
17.8 %
France
16.9 %
Netherlands
15.2 %
Germany
7.3 %
Sweden
7.1 %
Switzerland
3.5 %
Ireland
2.5 %
Norway
1.9 %
Cash
Totaal
96 %

Top 10 holdings (2018-01-31)

3.9 %
Covestro
3.8 %
Essilor
3.7 %
Valeo
3.7 %
Cie Generale des Etablissements Michelin
3.7 %
Nationale Nederlanden Group
3.7 %
Heineken Holding
3.7 %
Lloyds TSB
3.6 %
Reckitt Benckiser
3.6 %
Vodafone Group
3.6 %
ASSA Abloy
Totaal
37.0 %

Sector allocation (2018-01-31)

15.7 %
Industrial Goods & Services
13.6 %
Health Care
13.4 %
Insurance
9.5 %
Food & Beverage
7.5 %
Automobiles & Parts
7.4 %
Banks
7.2 %
Personal & Household Goods
6.2 %
Technology
3.9 %
Chemicals
3.8 %
Basic Resources
3.6 %
Telecommunications
3.5 %
Retail
3.0 %
Utilities
Totaal
98 %
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.