- Kempen
- Kempen Global High Dividend Fund NV Class X
Kempen Global High Dividend Fund - Class X
Profile
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
Performance per 2021-03-31 (rebased)
Performance per 2021-03-31
Fund | Benchmark | |
---|---|---|
1 month | 7.3 % | 6.7 % |
3 months | 15.3 % | 9.2 % |
This year | 15.3 % | 9.2 % |
2018 | -4.8 % | -4.1 % |
2019 | 20.4 % | 30.0 % |
2020 | -9.8 % | 6.3 % |
1 year (on annual basis) | 47.4 % | 43.8 % |
3 years (on annual basis) i | 7.8 % | 14.5 % |
5 years (on annual basis) i | 9.0 % | 12.7 % |
Since inception (on annual basis) i | 6.8 % | 8.2 % |
Key figures
Total fund size | EUR 930.91 M 2021-03-31 |
Share class size | EUR 195.34 M 2021-03-31 |
Number of shares | 5,911,153 2021-03-31 |
Net Asset Value i | EUR 33.34 2021-04-16 |
Transaction price i | EUR 33.29 2021-04-16 |
Morningstar rating â„¢ | |
Morningstar Analyst rating | Silver |
Fund characteristics per 2021-03-31
Fund | Benchmark | |
---|---|---|
Number of holdings | 89 | 1586 |
Dividend yield i | 3.89 % | 1.71 % |
Weighted average market capitalization i | EUR 47,745 M | EUR 270,116 M |
P/E ratio i | 12.04 | |
Active share i | 94.68 % |
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.
Developments per 2021-03-31
Also in March value stocks outperformed growth stocks, which contributed to the relative outperformance of KGHDF. Both sector allocation and stock selection were positive. More than a third of the holdings in KGHDF gained over 10% in March. Stock selection within healthcare was strong as one the best performers in KGHDF was Cardinal Health. The company is a global, integrated healthcare services and products provider, offering customized solutions for hospitals, health systems, pharmacies, and clinical laboratories worldwide. In February, the company already reported better than expected quarterly results and it slightly upgraded its full-year guidance. Cardinal also repeated its capital allocation priorities: prioritize investment in the business, maintain a strong balance sheet and return cash to shareholders. Later in March, the company announced the planned sale of its Cordis business (cardiology and endovascular devices), which has been a difficult business for Cardinal since it was acquired in 2015. Also stock selection within communication services was strong as South African telecom company MTN gained sharply. Despite the COVID crisis, MTN delivered strong free cash flow growth in 2020 driven by data growth. Furthermore, the company announced it wants to unlock asset value from tower sales and at a later stage its fiber and fintech assets.
We implemented the quarterly rebalance this month. We sold ten of our positions completely, while adding four new investments to the portfolio. The main reason behind most of the disposals was a very strong share price performance. As a result of that, the valuation and dividend yield were not attractive anymore. Examples were Denso Corp, ABB and Novatek Microelectronics. The new holdings added to the portfolio were Royal Bank of Canada, Ahold, Yamaha Motor and Taylor Whimpey. These shares offer an attractive valuation and the prospects of dividend growth. Yamaha Motor is a Japanese manufacturer of motorcycles and marine engines. Land mobility is 2/3 of revenues and marine is around 20%. In both segments Yamaha has a strong market positions. Based on our conservative over the cycle margins, the shares have an attractive valuation, a very strong balance sheet and the prospects for the company are good.
Over the past few years, the equity market has favored companies with short-term earnings predictability rather than look at the potential to add value over the cycle. Given the uncertain outlook, part of that short-termism was certainly justified. This has resulted in a large valuation gap in the market as a handful of well-known names appear priced for perfection, while others look priced for a deep depression. We agree that several of those ‘quality’ companies were an attractive proposition, either because of their defensive nature or a long-term growth opportunity regardless of the current economic situation. However, in our view even the best company is not a good investment at any price. Since November last year, the valuation gap slightly narrowed as the vaccine greatly raised the odds of the economic situation normalizing in 2021. When the situation normalizes further this should be very positive for both the absolute and relative performance of KGHDF. The first signs of this have continued so far this year.
We currently expect a forward dividend yield of around 4% for KGHDF. This number is indicative and based on current figures with an outlook filled with uncertainties and therefore based on conservative estimates. Based on those estimates we foresee a 5 to 10% increase in dividends in 2021.
KGHDF still trades at a sharp discount versus the market (the average valuation of all the holdings in KGHDF). Historically, this has led to a strong relative performance on 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 flows 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. A positive ESG development can add value to the investment case.
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 2021-03-31 (rebased)
Performance per 2021-03-31
Fund | Benchmark | |
---|---|---|
1 month | 7.3 % | 6.7 % |
3 months | 15.3 % | 9.2 % |
This year | 15.3 % | 9.2 % |
2018 | -4.8 % | -4.1 % |
2019 | 20.4 % | 30.0 % |
2020 | -9.8 % | 6.3 % |
1 year (on annual basis) | 47.4 % | 43.8 % |
3 years (on annual basis) i | 7.8 % | 14.5 % |
5 years (on annual basis) i | 9.0 % | 12.7 % |
Since inception (on annual basis) i | 6.8 % | 8.2 % |
Dividends
Distributing | Yes |
Last dividend | EUR 0.33 |
Ex-date last dividend | 2021-02-26 |
Number of distributions per year | 4 |
Dividend calendar |
Risk analysis (ex post) per 2021-03-31
3 years | Since inception | |
---|---|---|
Maximum drawdown i | -29.45 % | -42.78 % |
Tracking error i | 7.78 % | 4.99 % |
Information ratio i | -0.87 | -0.26 |
Beta i | 1.11 | 0.96 |
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 (2021-03-31)
Contribution i | Performance i | |
---|---|---|
MTN Group | 0.32 % | 26.25 % |
Asustek Computer | 0.32 % | 23.28 % |
Cardinal Health | 0.31 % | 22.78 % |
Cisco | 0.27 % | 19.06 % |
ING Groep | 0.20 % | 15.41 % |
Bottom 5 contribution (2021-03-31)
Contribution i | Performance i | |
---|---|---|
CNOOC | -0.07 % | -9.43 % |
Wood Group | -0.05 % | -8.12 % |
Wartsila OYJ | -0.04 % | -4.94 % |
Sun Hung Kai Properties | -0.03 % | -1.67 % |
Valero Energy | -0.03 % | -3.94 % |
Geographic allocation (2021-03-31)
Top 10 holdings (2021-03-31)
Sector allocation (2021-03-31)
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.
Ongoing charges
Management fee i | 0.400 % |
Service fee i | 0.10 % |
Expected ongoing charges i | 0.50 % |
Ongoing charges last financial year i | 0.50 % |
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
Potential performance fee | 0 % - 0.20 % |
Current performance fee | 0.0 % per March 2021 |
Performance fee last financial year | 0.00 % |
Please note that a performance fee is charged in case when the fund has positive return, which is more than the benchmark, but also when the fund has a negative return, which is less negative than the benchmark.
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
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. |
Depositary and custodian | BNP Paribas Securities Services S.C.A. |
Morningstar rating â„¢ | |
Morningstar Analyst rating | Silver |
Tradability
Listed | no |
Subscription/Redemption Frequency | Daily |
ISIN i | NL0011755848 |
Details | Orders must be submitted via Vestima. |
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.
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.
Factsheets
Prospectus
Sustainability related disclosures
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:
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ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.
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Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.
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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
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Positive impact: Investing with an objective to achieve positive real world outcomes and impact, such as contributing to the UN Sustainable Development Goals.
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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.
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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.
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Our full voting records are available here.
Climate change
As a long-term investor, we believe climate change represents a systemic risk facing the economy, society and environment. We want to consider the risks and opportunities this presents to our investments in the coming decades. We have therefore set a long-term commitment (2050), a mid-term ambition (2030) and short-term objectives (2025).
- 2050 commitment: Net-zero investor.  Â
- 2030 ambition: To align with a Paris Agreement pathway (listed and non-listed investments) and Dutch Klimaatakkoord.  Â
- 2025 objectives: To align with a pathway towards achieving the Paris Agreement (listed investments) and Dutch Klimaatakkoord goals.[1]
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The Kempen climate change policy can be found here (under climate change policy).
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[1]We use carbon intensity as a metric to come to the pathway of net-zero emissions. As we care about the direction of travel and reduction of carbon emissions in the economy, it might be that the actual reducing trend may deviate from the suggested average trend line. The pathway is derived from the pathway of the EU Benchmarks.
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.
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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. In addition, we exclude pure coal players and pure players involved in tar sands, as these activities have an adverse impact on climate change. 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.
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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. With regard to climate change, we prefer to invest in companies that integrate climate risks and opportunities into their organisation, and are able to move towards a low-carbon economy. 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.
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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. With regard to climate change, we engage generally and take a sector-specific approach for the most carbon-intensive companies and sectors (oil and gas, utilities), as these count for the largest part of the global carbon emissions. 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.
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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.
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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, and, since last year we have been an active participant in the Climate Action 100+ initiative.
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Our engagement focus is on: climate change and energy efficiency, and corporate governance. For example recent activities include:Â
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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.
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Severstal: We are monitoring Severstal’s health & safety efforts and encouraging the company to establish health & safety best practices that set an example to other Russian 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.
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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:
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Although Kempen Capital Management N.V.’s information providers, including without limitation, MSCI ESG Research LLC and its affiliates (the “ESG Partiesâ€), 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





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.