Kempen Global High Dividend Fund NV - Class N

Profile

Kempen Global High Dividend Fund N.V. (KGHDF) offers a diversified portfolio of listed companies worldwide with an expected dividend yield of 3.3% at the time the company is purchased for the first time. The portfolio contains around 100 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.

Management team

Jorik van den Bos, Joris Franssen, Joost de Graaf, Dimitri Willems, Luc Plouvier

Performance per 2020-05-31 (rebased)

No chart data available

Performance per 2020-05-31

Slide to see more
  Fund Benchmark
1 month 1.3 % 3.2 %
3 months -11.9 % -0.4 %
This year -22.2 % -7.4 %
2017 9.7 % 7.5 %
2018 -5.0 % -4.1 %
2019 20.2 % 30.0 %
1 year (on annual basis) -13.0 % 7.0 %
3 years (on annual basis) i -1.6 % 6.3 %
5 years (on annual basis) i 1.2 % 5.5 %
Since inception (on annual basis) i 4.8 % 6.8 %
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. For the calculation of the performance figures a deviant net asset value (NAV) is used. The NAV is calculated based on the closing prices of the Fund investments per 29 March 2018, in contrast of the original NAV issued, that partly is calculated based on the closing prices of 2 April 2018 (North America) and calculated based on ‘snapshots’ prices of 3 April 2018 (Asian and Pacific investments). The deviating NAV is used for better comparison with the benchmark that is also calculated based on the closing prices of the investments. 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

Slide to see more
Total fund size
EUR 948.39 M 2020-05-31
Share class size
EUR 349.20 M 2020-05-31
Number of shares
13,752,874 2020-05-31
Net Asset Value i
EUR 25.90 2020-07-01
Transaction price i
EUR 25.87 2020-07-01
Morningstar rating â„¢
Morningstar Analyst rating
Gold

Fund characteristics per 2020-05-31

Slide to see more
  Fund Benchmark
Number of holdings 97 1636
Dividend yield i 6.11 % 2.45 %
Weighted average market capitalization i EUR 40,113 M EUR 212,465 M
P/E ratio i 13.42 20.84
Active share i 93.57 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM 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 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.

Market developments per 2020-05-31

Compared to the previous months, May was a relatively quiet month for equity markets globally. They continued the upward path after the sharp rebound in April. In many countries the severe lockdown measures are being eased, which should help economies to gradually recover. KGHDF booked a positive absolute performance but underperformed the index.

KGHDF has so far failed to show its relatively defensive character during the market downturn. The attractive valuation of the portfolio in combination with the solid financial position of the companies we invest in should have provided a safety net. However, the uniqueness of this crisis has prevented the portfolio from showing its defensiveness so far. We see a clear schism in the market; where a large part of the market has been hit hard by the COVID-19 crisis, a significant part of the market (the part that largely pays no dividends) are priced as if they will be unaffected. We are confident however that the portfolio will show attractive risk return characteristics over the next 3 to 5 years, with an attractive and growing dividend income stream. We continue to diligently execute our investment process. As is the case with every crisis, it also offers attractive new opportunities. We have already added a number of new attractive companies to the portfolio and are confident that we will find more.

The most striking fact this year is that the ‘Quality Bubble’ has become even more extreme. A huge valuation dispersion between quality- and value stocks has been present for some time in the market, which has now reached levels never seen before. This month growth stocks strongly outperformed value stocks again, which was a headwind for the relative performance. You need to go back to the IT-bubble at the start of this century to find comparable valuation dispersions. Going forward, we see this as a huge opportunity when the market will focus more on attractively valued shares.

Next month, we will implement the quarterly rebalance of KGHDF, as a result trading was limited in May. We sold our position in Simon Property Group. Shopping malls are obviously being hit severely by the Corona crisis. Although the economy is slowly reopening, Simon may see its rental income permanently decline by 20% as occupancy declines and tenants attempt to negotiate lower rents as traffic is permanently lower. Taking these developments into account the company no longer offered an attractive valuation. We used the proceeds to add to our position in Redwood Trust, as its valuation is very attractive after the weak share price performance.

Portfolio developments per 2020-05-31

In May, KGHDF had both negative stock selection and sector allocation. In particular selection within communication services and real estate detracted from the relative performance. Sector allocation was negative as we are underweight the strongly outperforming information technology sector and overweight the energy sector, which lagged the market despite the oil price recovering sharply. KGHDF benefited from positive stock selection within materials.

In our investment process, we spend a large portion of our time understanding where profitability should be on an over the cycle basis, as this is what determines the cash flows we will receive as a long-term shareholder. A firm may appear attractive based on its price to earnings ratio or other headline multiple, but if margins and/or revenue are high, this only gives you limited information about the future returns of an investment. In a diversified portfolio, we are always going to have individual names that disappoint or surprise to the upside. We believe that a value process of bottom up stock picking will lead to more winners than losers, as our long-term track record indicates. We continue to purchase our investments based on intrinsic value, while ensuring a margin of safety when we select our stocks.

After the sharp selloff of the equity market during the year, our return expectations for the broad market have increased. Valuation dispersion between, and within regions and sectors have further increased this year and are now close to the peak of the technology bubble (please see the slide below for the valuation difference of growth versus value). The Global Dividend strategy trades at an exceptional discount versus the market. Historically, this has led to a strong relative performance on the medium term. Also, the absolute valuation of the strategy is compelling. In summary, the current environment offers the opportunity to buy a well-diversified portfolio with solid earnings power at an attractive valuation.

We currently expect a forward dividend yield of around 5% for the Fund. Obviously, this number is indicative and based on current figures with an outlook filled with uncertainties and therefore based on conservative estimates.
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM 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 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 2020-05-31 (rebased)

No chart data available

Performance per 2020-05-31

Slide to see more
  Fund Benchmark
1 month 1.3 % 3.2 %
3 months -11.9 % -0.4 %
This year -22.2 % -7.4 %
2017 9.7 % 7.5 %
2018 -5.0 % -4.1 %
2019 20.2 % 30.0 %
1 year (on annual basis) -13.0 % 7.0 %
3 years (on annual basis) i -1.6 % 6.3 %
5 years (on annual basis) i 1.2 % 5.5 %
Since inception (on annual basis) i 4.8 % 6.8 %
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. For the calculation of the performance figures a deviant net asset value (NAV) is used. The NAV is calculated based on the closing prices of the Fund investments per 29 March 2018, in contrast of the original NAV issued, that partly is calculated based on the closing prices of 2 April 2018 (North America) and calculated based on ‘snapshots’ prices of 3 April 2018 (Asian and Pacific investments). The deviating NAV is used for better comparison with the benchmark that is also calculated based on the closing prices of the investments. 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

Slide to see more
Distributing
Yes
Last dividend
EUR 0.33
Ex-date last dividend
2020-05-22
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 2020-05-31

Slide to see more
  3 years Since inception
Maximum drawdown i -29.49 % -42.78 %
Tracking error i 6.73 % 4.76 %
Information ratio i -1.17 -0.42
Beta i 1.05 0.94
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM 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 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 (2020-05-31)

Slide to see more
  Contribution i Performance i
Siemens 0.20 % 16.35 %
EDP - Energias de Portugal 0.18 % 15.04 %
SKF AB-B Shares 0.18 % 13.46 %
Vodafone Group 0.17 % 14.48 %
Rio Tinto 0.16 % 12.97 %

Bottom 5 contribution (2020-05-31)

Slide to see more
  Contribution i Performance i
Sun Hung Kai Properties -0.21 % -17.62 %
China Mobile -0.15 % -11.97 %
Hysan Development -0.13 % -19.84 %
Sino Land Company -0.13 % -17.96 %
Gilead Sciences -0.12 % -8.77 %

Geographic allocation (2020-05-31)

24.0 %
United States
9.1 %
United Kingdom
6.7 %
Japan
5.9 %
France
5.4 %
Netherlands
4.3 %
Hong Kong
3.8 %
Taiwan
3.8 %
Germany
3.5 %
Korea Republic Of
3.5 %
Switzerland
2.7 %
Australia
2.6 %
Sweden
2.5 %
Norway
2.5 %
Portugal
2.4 %
Spain
2.4 %
Canada
2.2 %
Russia
3.2 %
Other
0.7 %
Cash
8.9 %
Overig
Total
100 %

Top 10 holdings (2020-05-31)

1.4 %
Ampol
1.4 %
SKF AB-B Shares
1.4 %
Valeo
1.4 %
Siemens
1.3 %
Vodafone Group
1.3 %
Equinor
1.3 %
Cardinal Health
1.3 %
Cisco
1.3 %
Rio Tinto
1.3 %
Schlumberger
Total
13.5 %

Sector allocation (2020-05-31)

27.2 %
Financials
12.8 %
Oil & gas
11.6 %
Consumer goods
9.9 %
Utilities
9.5 %
Telecommunications
7.3 %
Industrials
6.3 %
Basic Materials
5.7 %
Technology
4.9 %
Health Care
4.1 %
Consumer services
0.7 %
Other
Total
100 %
The cash position is included in ‘Other’.
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM 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 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.

 

SWING FACTORS

An overview of the current swing factors are available here.

Ongoing charges

Slide to see more
Management fee i
0.63 %
Service fee i
0.10 %
Expected ongoing charges i
0.73 %
Ongoing charges last financial year i
0.73 %
The Ongoing Charges Figure of the last financial year relates to 2018/2019.

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 Capital Management N.V. (KCM) is the management company of Kempen Global High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM 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 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

Slide to see more
Share class
N
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
MSCI World Net Total Return Index (calculated in Euro)
Investment category
High Dividend Equity
Universum
Global equities
Inception date
2007-10-24
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.
Depositary and custodian
BNP Paribas Securities Services S.C.A.
Morningstar rating â„¢
Morningstar Analyst rating
Gold

Tradability

Slide to see more
Listed
yes, listed on the NAV Trading Facility of Euronext
Subscription/Redemption Frequency
Daily
ISIN i
NL0006089229
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM 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 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.
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM 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 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.

Kempen's vision & mission

Kempen Capital Management is an asset manager that believes in stewardship and investment focusing on the long-term for the benefit of all stakeholders. Value creation is at the heart of the services we provide to our clients. We believe that being an engaged shareholder on environmental, social and governance (ESG) issues and retaining a long-term focus, is critical to helping our clients to preserve and create sustainable wealth that has positive real world impact and economic returns.

Kempen wide approach to responsible investment

We are committed to create sustainable alpha. The four pillars of our ESG-policy are:

  • ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.

  • Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.

  • Active ownership: Being responsible stewards of our clients’ capital and using our influence through engagement and voting to improve corporate behaviour on specific ESG issues and achieve positive change

  • Positive impact: Investing with an objective to achieve positive real world outcomes and impact, such as contributing to the UN Sustainable Development Goals.

Â

To put our mission and vision into practice we engage with our investee companies on a wide array of strategic, financial, and ESG topics. As an active owner we use our influence to improve our investee companies’ ESG performance.  This helps us address some of the most pressing and important sustainability issues facing business and the world. Our focus themes for engagement are: human rights, labour rights, climate change and governance.

Â

Through collaboration with other investors and industry think tanks we contribute to the development of principles and standards of corporate responsibility both at sector levels, as well as investee company level.

Â

Our full voting records are available here.

OUR FUND APPROACH TO RESPONSIBLE INVESTMENT

Kempen’s ESG policy is fully implemented in our fund’s investment process across the three relevant pillars of: Exclusion, Integration and Active ownership.

Â

1. Exclusion

The fund follows the clear and transparent exclusion framework we have developed. According to the framework the fund currently excludes companies involved in the production of controversial weapons and tobacco. Furthermore, the strategy avoids investments in companies that structurally violate ESG criteria, with no willingness to improve. In total 177 companies are excluded from the fund’s global equity universe.

Â

2. ESG integration

ESG criteria are an integral part of the investment process. The aim is to incorporate material ESG issues in our fundamental analysis. This means that portfolio managers perform an in-depth analysis of ESG data and material ESG risks and reflect them in the assumptions used in the valuation assessment. For example, as demonstrated in the chart on the right side, the ESG impact forms part of our Earnings Power Value (EPV) valuation model.

Â

3. Active ownership

The aim of the engagements our fund participates in is to use our influence as a shareholder to encourage the companies we invest in to improve policies and practices in specific ESG issues. A successful engagement reduces the ESG risk and as a result unlocks value in the interest of our clients. In 2018 we held over 200 company engagements and voted at 104 shareholder meetings.

Â

In order to lay out our guiding investment principles, we send a “welcome letter” to most of the companies we invest in. In this letter, we explain to the company why we made the decision to invest and what our long-term expectations are, including those in the areas of social and environmental responsibilities and corporate governance.

Â

Our fund also believes in the strength of collaborative engagement. Through cooperation with other investors and fund managers, we can increase the leverage of our engagement activities. In 2018, for example, we participated in the CIO Exchange Collaboration on Energy transition.

Â

Our engagement focus is on: climate change and energy efficiency, and corporate governance. For example recent activities include:Â

  • Shell: We engaged with senior management to set carbon targets with success as Shell announced that it will link its scope 1,2 and 3 carbon targets to its remuneration. You can find the engagement factsheet here.

  • Severstal: We are monitoring Severstal’s health & safety efforts and encouraging the company to establish health & safety best practices that set an example to otherRussian steel producers. As a result of the engagement, the company is working on a revised policy and process on labour. You can find the engagement factsheet here.

  • China Mobile: We have teamed up with another investor to engage with China Mobile. Our ultimate goal is to improve the company’s capital allocation as the company has a very inefficient balance sheet. To achieve this goal, it is in our view crucial that the Board becomes more independent.

Risks

For more information about the mid and long term risks associated with the investments:

*

Although Kempen Capital Management N.V.’s information providers, including without limitation, MSCI ESG Research LLC and its affiliates (the “ESG Parties”), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of any data herein. None of the ESG Parties makes any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

ESG Report
Screening MSCI ESG research
Screening MSCI ESG research
UN global impact
ESG integration in the EPV valuation model
ESG integration in the EPV valuation model
Bron EN
disclaimer
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Fund is registered under the license of KCM 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 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.