Kempen Global High Dividend Fund N.V. - Class X

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 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 X 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

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

Performance per 2017-10-31 (rebased)

No chart data available

Performance per 2017-10-31

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  Fund Benchmark
1 month 2.3 % 3.4 %
3 months 6.0 % 5.6 %
This year 8.2 % 7.0 %
2014 13.1 % 19.5 %
2015 7.4 % 10.4 %
2016 16.7 % 10.7 %
3 years (on annual basis) i 11.4 % 10.8 %
5 years (on annual basis) i 11.5 % 14.0 %
Since inception (on annual basis) i 7.2 % 7.0 %
The results shown of the periods before 10 May 2016, the inception date of Kempen Global High Dividend Fund N.V. class X, 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.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 1,369.52 M 2017-10-31
Number of shares
11,519,412 2017-10-31
Net Asset Value i
EUR 32.10 2017-11-22
Transaction price i
EUR 32.02 2017-11-22
Morningstar rating â„¢
Morningstar Analyst rating
Gold

Fund characteristics per 2017-10-31

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  Fund Benchmark
Number of holdings 98 1652
Dividend yield i 4.43 % 2.28 %
Weighted average market capitalization i EUR 40,119 M EUR 113,992 M
P/E ratio i 13.79 20.00
Active share i 92.37 %
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 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/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Market developments per 2017-10-31

In October, global equity markets continued their strong run, with KGHDF lagging the benchmark. On a year-to-date basis KGHDF is well ahead of the MSCI World Index.

Both stock selection as well as sector allocation negatively impacted stock performance for the month. The strong performance of the technology sector was the main reason for lagging the benchmark. Alphabet, Microsoft and Amazon all reported strong sales results in October. These companies continue to grow rapidly, which is impressive given their sales base. We have no exposure to these companies given either their lack of dividends or low dividend yields. In terms of stock specific contributors, our worst performer was also in the tech sector: Nokia. Nokia dropped on disappointing quarterly earnings. Nokia is a producer of networking equipment, and is suffering from low capital expenditure levels by telecom operators as well as high integration costs with Alcatel. Our largest contributor for the month was Triton international, a container leasing company. Triton continues to benefit from an improving container market.

Portfolio developments per 2017-10-31

In October we completed our quarterly rebalance. We divested seven companies and purchased six new stakes.

Three companies were sold due to the dividend yields falling below the threshold (Yara, Uniper and Qualicorp). Pearson was sold due to a significant dividend cut. Camden and Philip Morris International were sold as strong performance reduced the forward returns. Finally Great-West life Corporation was sold in return for a more attractive alternative.

In terms of purchases, we bought the following companies:
WPP: World’s largest advertising agency trading at a very attractive free cash flow multiple. We believe the current decline in advertisement spend will prove to be cyclical rather than structural.
Power Financial Corporation: Holding company that trades at a historically wide discount. Approximately 65% stake in Great West Lifeco and IGM financial, smaller stake in Pargesa.
MS&AD Insurance Group: Top 3 player in the very consolidated Japanese non-life market producing attractive returns. MS&AD is very well capitalised, distributing more of this to shareholders.
Dixons Carphone plc: Attractively valued consumer electronics retailer with high market share in its core markets.
Phosagro: Lowest cost producer of phosphates globally, continues to be highly profitable despite depressed industry conditions. Given low prices, supply is likely to tighten.
Lite-on Technology: Very attractively valued producer of technological components that has established a competitive advantage in efficient mass production.

Market volatility still remains subdued, with few large moves in the indices. The benign environment attracts investors as it seemingly offers returns without the volatility that usually accompanies public markets. It is often in these markets that mistakes are made. Investors start to move up the risk curve without realizing it and are often faced with overvalued and/or illiquid assets once the cycle turns. We operate in the same capital markets as everyone else, and are similarly faced with elevated multiples. We do believe that safe investments with sufficient expected returns continue to exist, they present themselves in areas where the perception of risk is high. Currently this is the case in cyclical firms, or in commodity based operators. Within this space we look for companies with a sustainable low cost position and strong balance sheets to reduce the long term risk.

Our focus is on finding companies with sustainable dividends that can be bought at a discount to our estimate of intrinsic value. We base our estimate on the Earnings Power Value (EPV) framework of the Columbia Business School. EPV allows us to separate the three valuation components: asset value, earnings power and growth value. This framework improves our ability to analyze what we are paying for, and gives insight into whether a stock is priced with a margin of safety.

KGHDF now has a forward yield of around 4.7%. We remain optimistic on the dividend growth prospects for 2017.
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 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/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Performance per 2017-10-31 (rebased)

No chart data available

Performance per 2017-10-31

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  Fund Benchmark
1 month 2.3 % 3.4 %
3 months 6.0 % 5.6 %
This year 8.2 % 7.0 %
2014 13.1 % 19.5 %
2015 7.4 % 10.4 %
2016 16.7 % 10.7 %
3 years (on annual basis) i 11.4 % 10.8 %
5 years (on annual basis) i 11.5 % 14.0 %
Since inception (on annual basis) i 7.2 % 7.0 %
The results shown of the periods before 10 May 2016, the inception date of Kempen Global High Dividend Fund N.V. class X, 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.

Dividends

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Distributing
Yes
Last dividend
EUR 0.35
Ex-date last dividend
2017-08-02
Number of distributions per year
4
Dividend calendar

Risk analysis (ex post) per 2017-10-31

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  3 years Since inception
Maximum drawdown i -11.46 % -42.78 %
Tracking error i 3.58 % 3.84 %
Information ratio i 0.18 0.05
Beta i 0.88 0.89
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 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/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Top 5 contribution (2017-10-31)

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  Contribution i Performance i
Taiwan Semiconductor Manufacturing (US) 0.16 % 14.40 %
Triton 0.15 % 21.67 %
SK Telecom (US) 0.11 % 7.65 %
Hyundai Motor 0.10 % 14.39 %
General Motors 1.26 % 0.10 %

Bottom 5 contribution (2017-10-31)

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  Contribution i Performance i
Nokia -0.20 % -17.05 %
Fortescue Metals Group -0.12 % -10.48 %
Nordea Bank AB -0.11 % -9.33 %
GlaxoSmithKline -0.10 % -8.56 %
Roche Holding -0.09 % -8.17 %

Geographic allocation (2017-10-31)

21.5 %
The United States
13.7 %
United Kingdom
7.0 %
Canada
7.0 %
Japan
6.9 %
The Netherlands
4.6 %
Switzerland
4.2 %
Hong Kong
3.9 %
Taiwan
3.6 %
Italy
3.2 %
Russia
2.9 %
Korea Republic Of
2.4 %
Germany
2.3 %
France
2.3 %
Norway
2.3 %
Portugal
2.2 %
Australia
10.0 %
Others
Totaal
100 %

Top 10 holdings (2017-10-31)

1.6 %
LyondellBasell Industries
1.6 %
SK Telecom (US)
1.3 %
Taiwan Semiconductor Manufacturing (US)
1.2 %
CubeSmart
1.2 %
ABB
1.2 %
CNOOC
1.2 %
Royal Dutch Shell
1.2 %
Enel
1.2 %
Mizuho Financial Group
1.2 %
Exelon
Totaal
12.9 %

Sector allocation (2017-10-31)

32.0 %
Financials
12.9 %
Telecommunications
10.3 %
Oil & gas
8.1 %
Utilities
8.0 %
Technology
7.6 %
Basic Materials
5.9 %
Consumer goods
5.6 %
Health Care
5.4 %
Industrials
3.4 %
Consumer services
0.8 %
Other
Totaal
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 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/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Ongoing charges

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Management fee i
0.40 %
Service fee i
0.10 %
Expected ongoing charges i
0.50 %
Ongoing charges last financial year i
0.52 %
The Ongoing Charges Figure of the last financial year relates to 2015/2016.

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%

Performance fee

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Potential performance fee
0 % - 0.20 %
Current performance fee
0.005 % per October 2017
The level of the performance fee is determined on a montly basis, based on the performance relative to the benchmark and does not exceed 0,20%.

Other costs

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Upward swing factor i
0.25 %
Downward swing factor i
0.25 %
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 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/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Share class details

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Share class
X
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
2016-05-10
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.
Morningstar rating â„¢
Morningstar Analyst rating
Gold

Tradability

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Listed
no
Pricing frequency
Daily
ISIN i
NL0011755848
Details
Orders must be submitted via Vestima.
Class X of Kempen Global High Dividend Fund N.V. will only be available for orders submitted via the Vestima platform. Share class X will only be available for distributors who submit orders on behalf of their clients, and who have been selected by the management company.
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 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/investmentfunds). 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 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/investmentfunds). 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.

Fund approach to Responsible Investment

  • ESG is integrated in our investment process.
  • Portfolio managers (PM's) have access to ESG research via the database from MSCI ESG Research and via FactSet.
  • Prior to investment, our PM's assess the ESG performance of the company. If material ESG concerns are identified, this can result in the decision to quantify the ESG risks into the investment model, to engage with a company or to avoid investment.
  • In case of engagement, the PM and the Responsible Investment Department will start a dialogue with the company. The aim of the engagement is to use our influence as a shareholder to encourage positive change.
  • During the quarterly re-balancing process the PM's monitor the ESG performance of the holdings.

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 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/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.