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, Mark Oud, Martijn Kleinbussink

Performance per 2018-09-30 (rebased)

No chart data available

Performance per 2018-09-30

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  Fund Benchmark
1 month -0.2 % 0.5 %
3 months 1.7 % 1.3 %
This year 0.5 % 0.8 %
2017 1.4 % 0.9 %
Since inception (on annual basis) i 1.9 % 1.7 %
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 203.64 M 2018-09-30
Share class size
EUR 203.64 M 2018-09-30
Number of shares
1,998,170 2018-09-30
Net Asset Value i
EUR 95.87 2018-10-23
Transaction price i
EUR 98.80 2018-10-10

Fund characteristics per 2018-09-30

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  Fund Benchmark
Number of holdings 33 446
Dividend yield i 3.08 % 3.44 %
Weighted average market capitalization i EUR 49,067 M EUR 64,265 M
P/E ratio i 16.24 14.62
Active share i 84.62 %
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 2018-09-30

In September, the fund earned a return of -0.15% against a return on the MSCI Europe Index of 0.53%. In 2018 so far, the fund has earned a return of 0.97% versus a return on the MSCI Europe Index of 0.84%.

The consumer discretionary and healthcare sectors made the largest positive contributions to the performance, while largest negative contribution came from the materials sector. Sector allocation had a negative impact on the relative performance. The strategy holds zero exposure to energy, while this sector performed strongly.

The portfolio remained unchanged in September. Reckitt Benckiser Group, Marine Harvest and Ferguson were particularly popular among investors. At the other end of the spectrum, we saw Kion Group, ASML and Heineken drop the furthest in price.

ING Group attracted negative publicity after it reached a settlement with the Dutch Public Prosecution Service amounting to €775 million. A range of serious shortcomings had been identified at ING Nederland. The failings related to proper customer due diligence and the monitoring of transactions. These shortcomings apply to the period 2010-2016. At the end of 2016, the bank has implemented rigorous measures, including the termination of its relationship with thousands of customers. We take this very seriously and, as an engaged shareholder, are in touch with the company to assess what the structural shortcoming imply about the quality of the bank’s operations. This includes operating processes, but also the digital capacities that ING is investing in heavily. We believe it was sensible of the board to respond to public pressure and assume responsibility via the departure of the CFO.

Sustainable value creation comes in many shapes and sizes. A company that consistently solves a major problem. Carefully build over decades. Society relies on the company’s decency, integrity and expertise. The problem it solves existed 50 years ago and will still exist in 50 years’ time.

These are not the companies that make the headlines. They don’t launch a new product every summer. No celebrities endorses their products. The focus lies on doing the same thing every day. On improving their expertise, solutions and services. In doing so, they create a profitable and worthwhile company.

Ferguson was founded in 1953 in Colmar Manor, a small suburb of Washington with about 1,400 inhabitants, with US$165,000 start-up capital. Fast-forward to 2018 and Ferguson is the largest distributor of plumbing supplies. Its expertise has now expanded to encompass heating and water elements and air conditioning.

People throughout the US and the UK rely on Ferguson on a daily basis, although they may not know it. You rarely think twice about flushing your toilet, cooling your house or drinking water from the tap.

In 65 years, Ferguson has grown into a distributor with over 1,400 locations and 24,000 employees. Ferguson has become an industry leader by constantly evolving and being consistent and reliable.

Each day, Ferguson takes small steps towards improving its proposition. The company has rolled out an e-commerce platform, is investing in the latest digital technology and constructing new distribution centres. Our need for access to water will not go away. Ferguson is there to help us in this and to do so profitably and reliably. That is why we believe Ferguson to be a good example of sustainable value creation.


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 2018-09-30 (rebased)

No chart data available

Performance per 2018-09-30

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  Fund Benchmark
1 month -0.2 % 0.5 %
3 months 1.7 % 1.3 %
This year 0.5 % 0.8 %
2017 1.4 % 0.9 %
Since inception (on annual basis) i 1.9 % 1.7 %
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 (2018-09-30)

25.9 %
United Kingdom
17.9 %
Netherlands
16.1 %
France
14.9 %
Germany
5.2 %
Sweden
3.7 %
Switzerland
3.6 %
Ireland
3.5 %
Norway
1.8 %
Spain
1.4 %
Denmark
3.7 %
Other
2.1 %
Cash
Totaal
100 %

Top 10 holdings (2018-09-30)

4.1 %
SAP
3.9 %
Essilor
3.9 %
AstraZeneca
3.7 %
Nationale Nederlanden Group
3.7 %
LVMH Moet Hennessy Louis Vuitton
3.7 %
Ferguson
3.7 %
Roche Holding
3.7 %
Reckitt Benckiser
3.6 %
Kerry Group
3.5 %
Marine Harvest
Totaal
37.6 %

Sector allocation (2018-09-30)

16.2 %
Health Care
14.3 %
Industrial Goods & Services
12.7 %
Insurance
10.3 %
Food & Beverage
8.6 %
Technology
7.4 %
Personal & Household Goods
5.8 %
Chemicals
5.7 %
Automobiles & Parts
5.1 %
Banks
3.9 %
Basic Resources
3.6 %
Retail
2.6 %
Telecommunications
1.7 %
Utilities
2.1 %
Other
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
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.

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.
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. Our full voting records are available here.

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.