Kempen Global High Dividend Fund - Class Y

Profile

Kempen Global High Dividend Fund (KGHDF) offers a diversified portfolio of listed companies worldwide with an above-average dividend yield at the time the company is purchased for the first time. The portfolio contains around 70 investments, which are approximately equally weighted. The environmental, social and governance (ESG) criteria are incorporated in the investment process.

The primary objective of KGHDF is to achieve a structurally better long-term return, comprising capital gains plus net dividends, than the MSCI World Total Return Index.

KGHDF pays out dividend on a quarterly basis and aims to pay all the received net dividends to the shareholders. Share class Y will only be available for distributors who submit orders on behalf of their clients, and who have been selected by the management company.

Management team

Joris Franssen, Luc Plouvier, Marius Bakker, Robert van den Barselaar, Reineke Davidsz, Roderick van Zuylen

Performance per 2022-12-31 (rebased)

No chart data available

Performance per 2022-12-31

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  Fund Benchmark
1 month -3.8 % -7.6 %
3 months 9.4 % 0.8 %
This year 0.2 % -12.8 %
2019 20.3 % 30.0 %
2020 -9.9 % 6.3 %
2021 29.8 % 31.1 %
1 year (on annual basis) 0.2 % -12.8 %
3 years (on annual basis) i 5.4 % 6.7 %
5 years (on annual basis) i 6.1 % 8.7 %
Since inception (on annual basis) i 6.8 % 7.5 %
The results shown of the periods before 20 July 2016, the inception date of Kempen Global High Dividend Fund N.V. class Y, are those of Kempen Global 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. The dividend distribution of KGHDF (ex-date 01 August 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 759.10 M 2022-12-31
Share class size
EUR 407.76 M 2022-12-31
Number of shares
11,807,854 2022-12-31
Net Asset Value i
EUR 36.50 2023-02-03
Transaction price i
EUR 36.44 2023-02-03

Fund characteristics per 2022-12-31

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  Fund Benchmark
Number of holdings 69 1508
Dividend yield i 4.41 % 2.18 %
Weighted average market capitalization i EUR 57,240 M EUR 277,115 M
P/E ratio i 9.01 14.80
Active share i 94.21 %
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Van Lanschot Kempen Investment Management NV is the management company of the Fund. Van Lanschot Kempen Investment Management NV is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of Van Lanschot Kempen Investment Management NV at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Information Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of Van Lanschot Kempen Investment Management NV (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 2022-12-31

With one of the weakest December months on record, the stock market ended 2022 in style. Investor sentiment was driven by worries about a weakening economy. According to the International Monetary Fund (IMF) 2023 is going to be tougher on the global economy than the one we have left behind. The economies of the EU, the US and China are simultaneously slowing down. The IMF expects that about one third of the world economy will end up in a recession. Tech-related stocks had strongly negative returns. At the start of 2022, these stocks were priced for perfection. Now that the growth outlook of these companies are deteriorating, the stocks are experiencing a substantial derating. Given our disciplined valuation-driven approach to investing, we were able to sidestep much of the downturn in these tech-related companies. Investors have clearly changed their attitude towards value stocks. Value stocks in general did substantially better than growth stocks. In this environment, the performance of KGHDF was ahead of the broader market. KGHDF also outperformed the style index (Morningstar Developed Markets Dividend Yield > 3% Index).

Part of the strong performance in December was driven by the sale of the position in the depository receipts (GDR’s) of PhosAgro. In normal market circumstances, these GDR’s closely tracked the share price performance of the underlying Moscow-listed shares. After the Russian invasion of Ukraine the trading in these GDR’s was halted. International sanctions made it likely that we would not recoup any of the value of our holdings in PhosAgro. Late 2022 we got the opportunity to sell our position, which resulted in a substantial capital gain.

The sector that contributed most to the absolute performance of KGHDF was the real estate sector (Sun Hung Kai Properties was up 10% in December). The sector that detracted most from the absolute performance of KGHDF was the communication services sector. From a relative perspective we benefited from not owning tech-related stocks like Amazon, Apple, and Tesla. We also benefited from strong stock selection in the financial, energy and industrials sectors. The relative performance of KGHDF was modestly impacted by stock selection within the consumer staples sector (Sysco).

One of the best contributors was Sumitomo Mitsui Financial Group (+16% in December). SMFG is one of the largest Japanese banking groups. It provides retail, corporate, and investment banking; asset management; securities trading; and lending. The Japanese Central bank announced in December that it would allow the yield on 10-year government bonds to rise to a maximum of 0.5%. Previously, the maximum was set at 0.25%. This change in central bank policy makes it much more attractive for banks to provide loans. As a result, earnings estimates for 2023 and 2024 are moving up substantially. Despite a 40% return (in JPY) over the past year, the shares are still not expensive. The shares trade at around 9 times consensus expected earnings for 2023. The shares have a dividend yield of 4.3%.

The worst performing stock in the portfolio was Sysco (-15% in December). The US based company is the world’s largest foodservice distributor and caters food and related non-food items to for example restaurants, schools and hospitals. The company is recovering from the covid-pandemic. In December, the Chief Financial Officer (CFO) of Sysco unexpectedly announced his retirement. Although there appears to be no direct impact on the business, investors were disappointed by the news. We still believe that Sysco will continue its long term track record of growing its earnings and dividends steadily over time. The current dividend yield of Sysco is around 2.6%.

In December, we built up positions in Knorr-Bremse and in Medtronic. Knorr-Bremse is the global leader in braking systems for commercial transit vehicles such as trains and buses. The company has a 50% market share in breaking systems for trains, metros and other light rail vehicles. Thanks to safety regulation, best product line up, and strong customer relationships, it is likely that KB will be able to maintain their market share for many years to come. Big accidents caused by failing breaking systems cause human harm, wreak havoc on the train maker’s safety reputation, and puts pressure on local transportation authorities. Customers are therefore more interested in having the best product and not so much in paying the lowest price. Besides the strong market position, we also like the substantial stream of after-market revenues (e.g., brakes wear out, systems need periodic revision). The strong market position and cash flows allow KB to reinvest in R&D, thereby increasing their technological lead. The shares had shed more than 50% of the market price over the last 2 years. Much of the decline can be attributed to China (Covid-lockdowns and increasing local competition), Russia (Ukraine invasion), and cost inflation, which caused a substantial decline in operating margins. The latest quarterly report showed that the company is making progress on each of these problem areas. Operating margins appear to be on the rise again. The high quality nature of the business is not reflected in the valuation of the shares. We could establish our position in Knorr-Bremse at a price/earnings ratio of around 14. The shares provide a dividend yield of 3.5%.

Medtronic is one of the largest medical technology companies in the world. It has four business lines, which are Cardiovascular (e.g., pacemakers, catheters, stents), Medical Surgical (e.g., surgical stapling devices, robotic-assisted surgical products, and inhalation products), Neuroscience (e.g., spinal cord stimulation, neuro stimulators, implants), and Diabetes (e.g., insulin pumps and monitoring systems). With this wide portfolio of products and an aging population, Medtronic will benefit from strong industry-wide growth. The shares have done poorly over the last years as a result of the covid-pandemic, which has led to a reduction in surgical procedures. Medtronic also suffers from hiccups in their supply chain and from input cost inflation. Over time we expect Medtronic to fully recover from these temporary setbacks. The shares trade at historically modest multiples of earnings (~14x versus 18x), and provide a dividend yield of ~ 3.5%. Once Medtronic recovers from the temporary setbacks, we expect the shares to benefit from growing earnings and multiple expansion.

To finance the new positions, we sold our shares in Principal Financial Group, Siemens, and Verizon Communications. Principal Financial Group is a US-based life insurance company that has changed its business model over the past years. Over time, the company has shifted its income stream from lumpy, traditional life insurance operations towards steady, fee generating activities (e.g. asset management). PFG has also been a strong capital allocator, with a track record of substantial dividends and share buybacks. The shares experienced a strong re-rating over the last months. Although this re-rating is fully justified, we no longer see sufficient upside to our fair value estimate.

We exited our position in Siemens. Over the first months of 2022, the shares had sold off substantially. Investors were worried about Siemens being exposed to Russia, about being a German company that would suffer from high energy prices, about falling demand and about suffering from supply chains issues. These worries proved to be unfound. Although Siemens did report a negative effect from its business in Russia, it showed strong results in many other parts of its business. It has been able to keep its supply chains intact and demand remained strong. The shares rebounded sharply in the final months of 2022. We sold the shares once they hit our conservative assessment of fair value. Especially since several cyclical companies have sold off over 2022, we see better opportunities elsewhere. We have therefore sold our position in Siemens.

We sold our shares in Verizon Communications. The U.S. telecom provider reported its third disappointing quarter in a row. Not only are they clearly losing customers to AT&T and T-Mobile US, they are also increasing their investments that come with the roll out of a 5G network. Free cash flows are therefore under pressure. These developments have made us reassess the defensive qualities of the business. The valuation is reasonable, but with potential for further potential disappointments ahead we decided to sell our relatively small position in Verizon.

We currently expect a dividend yield of around 4.7% for KGHDF. This number is based on the consensus estimate of dividends paid out over the next 12 months. KGHDF still trades at a strong discount versus the market (the average valuation of all the holdings in KGHDF versus the broader equity market). Historically, this has led to a strong relative performance in the medium term.
Also, the absolute valuation of the strategy is compelling. We continue to focus on attractively valued companies, that have good capital discipline and generate positive cash flow through the cycle. In summary, the current environment offers the opportunity to buy a well-diversified portfolio with solid earnings power at an attractive valuation. In addition, ESG (Environmental, Social and Governance) is fully incorporated in our investment process.

Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Van Lanschot Kempen Investment Management NV is the management company of the Fund. Van Lanschot Kempen Investment Management NV is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of Van Lanschot Kempen Investment Management NV at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Information Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of Van Lanschot Kempen Investment Management NV (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 2022-12-31 (rebased)

No chart data available

Performance per 2022-12-31

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  Fund Benchmark
1 month -3.8 % -7.6 %
3 months 9.4 % 0.8 %
This year 0.2 % -12.8 %
2019 20.3 % 30.0 %
2020 -9.9 % 6.3 %
2021 29.8 % 31.1 %
1 year (on annual basis) 0.2 % -12.8 %
3 years (on annual basis) i 5.4 % 6.7 %
5 years (on annual basis) i 6.1 % 8.7 %
Since inception (on annual basis) i 6.8 % 7.5 %
The results shown of the periods before 20 July 2016, the inception date of Kempen Global High Dividend Fund N.V. class Y, are those of Kempen Global 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. The dividend distribution of KGHDF (ex-date 01 August 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 0.37
Ex-date last dividend
2022-11-04
Number of distributions per year
4
Dividend calendar
The dividend distribution of KGHDF (ex-date 01 August 2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.

Risk analysis (ex post) per 2022-12-31

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  3 years Since inception
Maximum drawdown i -29.47 % -33.53 %
Tracking error i 10.03 % 5.81 %
Information ratio i -0.13 -0.11
Beta i 0.96 0.91
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Van Lanschot Kempen Investment Management NV is the management company of the Fund. Van Lanschot Kempen Investment Management NV is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of Van Lanschot Kempen Investment Management NV at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Information Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of Van Lanschot Kempen Investment Management NV (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 (2022-12-31)

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  Contribution i Performance i
PhosAgro GDR 0.45 % 16,444.89 %
Lukoil (US) 0.34 % 2,550.59 %
Sumitomo Mitsui Financial Group 0.18 % 15.63 %
Sun Hung Kai Properties 0.14 % 9.97 %
Ferguson 0.10 % 5.11 %

Bottom 5 contribution (2022-12-31)

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  Contribution i Performance i
Sysco -0.30 % -14.61 %
Nexstar Media Group -0.18 % -10.92 %
Prudential Financial -0.18 % -11.18 %
Texas Instruments -0.18 % -11.67 %
Kinder Morgan -0.18 % -8.77 %

Geographic allocation (2022-12-31)

26.2 %
United States
17.9 %
United Kingdom
7.9 %
Germany
7.2 %
Netherlands
5.8 %
France
5.8 %
Japan
3.8 %
Canada
3.6 %
Spain
3.0 %
Singapore
1.9 %
Korea Republic Of
1.6 %
Bermuda
1.6 %
Hong Kong
1.5 %
Taiwan
1.4 %
Norway
1.3 %
South Africa
1.1 %
Austria
1.0 %
Ireland
0.9 %
Belgium
0.9 %
Sweden
0.6 %
Cash
0.0 %
Russia
5.1 %
Other
Total
100 %

Top 10 holdings (2022-12-31)

2.3 %
Fresenius
2.2 %
Taylor Wimpey
2.2 %
BlackRock
2.2 %
Repsol
2.1 %
Sysco
2.1 %
Technip Energies
2.1 %
LyondellBasell Industries
2.1 %
Ferguson
2.0 %
Shell
2.0 %
National Grid
Total
21.2 %

Sector allocation (2022-12-31)

20.7 %
Financials
12.2 %
Energy
10.4 %
Telecommunications
10.1 %
Health Care
8.5 %
Industrials
8.2 %
Consumer Staples
8.1 %
Consumer Discretionary
6.7 %
Technology
6.4 %
Utilities
5.9 %
Basic Materials
2.4 %
Real estate
0.6 %
Other
Total
100 %
The cash position is included in ‘Other’.
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Van Lanschot Kempen Investment Management NV is the management company of the Fund. Van Lanschot Kempen Investment Management NV is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of Van Lanschot Kempen Investment Management NV at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Information Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of Van Lanschot Kempen Investment Management NV (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.

 

SWING FACTORS

An overview of the current swing factors are available here.

Ongoing charges

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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 ongoing charges figure of the last financial year relates to 2021/2022.

The service fee is determined annually on basis of the net asset value as of the last day of the previous financial year:
< or equal to EUR 200 million: 0.20%
Between EUR 200 million and EUR 700 million: 0.15%
>EUR 700 million: 0.10%
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Van Lanschot Kempen Investment Management NV is the management company of the Fund. Van Lanschot Kempen Investment Management NV is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of Van Lanschot Kempen Investment Management NV at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Information Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of Van Lanschot Kempen Investment Management NV (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

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Share class
Y
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
MSCI World Net Total Return Index (calculated in Euro)
Investment category
High Dividend Equity
Universe
Global equities
Inception date
2016-07-20
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
Management company
Van Lanschot Kempen Investment Management NV
Depositary and custodian
BNP Paribas S.A., Netherlands Branch

Tradability

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Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
NL0011755855
Details
Orders must be submitted via Fundsettle.
Class Y of Kempen Global High Dividend Fund N.V. will only be available for orders submitted via the Fundsettle platform. Share class Y will only be available for distributors who submit orders on behalf of their clients, and who have been selected by the management company.
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Van Lanschot Kempen Investment Management NV is the management company of the Fund. Van Lanschot Kempen Investment Management NV is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of Van Lanschot Kempen Investment Management NV at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Information Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of Van Lanschot Kempen Investment Management NV (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.
This Fund falls under the scope of Article 6 SFDR, which means that that Fund neither promotes environmental and/or social characteristics nor has a sustainable investment objective. The sustainability-related disclosures for the Fund are available in the Fund Prospectus and under https://www.kempen.com/en/asset-management/esg , in line with Article 6 and 7 SFDR.
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Van Lanschot Kempen Investment Management NV is the management company of the Fund. Van Lanschot Kempen Investment Management NV is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of Van Lanschot Kempen Investment Management NV at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Information Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of Van Lanschot Kempen Investment Management NV (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.
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Van Lanschot Kempen Investment Management NV is the management company of the Fund. Van Lanschot Kempen Investment Management NV is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of Van Lanschot Kempen Investment Management NV at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Information Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of Van Lanschot Kempen Investment Management NV (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.