Kempen Global High Dividend Fund - Class X

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

Performance per 2021-09-30 (rebased)

No chart data available

Performance per 2021-09-30

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  Fund Benchmark
1 month 0.7 % -2.4 %
3 months 2.5 % 2.3 %
This year 22.5 % 19.3 %
2018 -4.8 % -4.1 %
2019 20.4 % 30.0 %
2020 -9.8 % 6.3 %
1 year (on annual basis) 39.6 % 30.3 %
3 years (on annual basis) i 7.1 % 13.2 %
5 years (on annual basis) i 9.1 % 13.0 %
Since inception (on annual basis) i 7.1 % 8.5 %
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. 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 877.49 M 2021-09-30
Share class size
EUR 184.15 M 2021-09-30
Number of shares
5,352,251 2021-09-30
Net Asset Value i
EUR 35.14 2021-10-15
Transaction price i
EUR 35.09 2021-10-15
Morningstar rating â„¢
Morningstar Analyst rating
Bronze

Fund characteristics per 2021-09-30

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  Fund Benchmark
Number of holdings 87 1559
Dividend yield i 4.02 % 1.69 %
Weighted average market capitalization i EUR 48,151 M EUR 332,844 M
P/E ratio i 10.72
Active share i 94.89 %
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM 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 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.

Developments per 2021-09-30

September was a positive month for KGHDF. The relative performance versus our investment universe (defined as Morningstar Developed Markets DY > 3%) was strong as the benchmark was down 0.3% in September while the fund had a positive return of 0.7% over the month. The performance of KGHDF was also strong on a relative basis versus the MSCI World Index, which declined by 2.4% over September. The sector that contributed most to the absolute and relative performance was the energy sector. This was not only driven by our substantial overweight position in energy; stocks like Equinor and Repsol performed even better than the energy sector as a whole. The sector that detracted most from the absolute and relative performance of KGHDF was the utilities sector.

One of the best relative contributors was Equinor. This Norwegian energy company Equinor is the second-largest natural gas supplier to Europe. One of their important assets is the Johan Sverdrup field, which will produce about 25% of all Norwegian oil output in the upcoming 50 years. The Johan Sverdrup field is powered by power from shore, which means that the field has the lowest CO2 emissions from production in the world. Energy prices have been increasing over the last months. Inventories in Europe are limited, and high LNG prices in Asia prevent additional supply from entering the European market. Despite the strong run-up of the shares (up more than 20% in September), both price/earnings ratio (11 times expected 2022 earnings) and dividend yield (~3%) remain attractive.

One of the detractors from performance was Taylor Wimpey, declining 15%. Taylor Wimpey is one of the largest housebuilders in the UK by volume. Over the last weeks, fear of input cost inflation is taking its toll on the homebuilders. Building materials like cement, bricks, wood and iron have become more expensive. Although cost inflation is generally a negative, most of the cost inflation can be passed through to the home buyers. Strong demand and disciplined supply is creating a strong pricing tailwind for UK homebuilders. In August, Taylor Wimpey reported higher than expected average selling prices, which translated into strong profit margins. Both price/earnings ratio (8 times expected 2022 earnings) and dividend yield (~7%) indicate that the shares are offering good value at the current levels.

During September, we bought two new positions: Sysco and Reckitt Benckiser. Sysco is the largest foodservice distributor in the US. Sysco also sells non-food products like cleaning supplies. Sysco serves schools, hospitals, restaurants, hotels, caterers and other foodservice providers. There are two negatives that have impacted the shares over the last two years. First, the growth in their international part of the business (approximately 18% of revenues) has been disappointing. Second, the coronavirus had a substantial impact on Sysco’s customer base. We expect the global food industry to recover to pre-COVID levels and taking a more long-term view , Sysco will likely gain market share from smaller competitors. With a growing dividend yield of around 2.3% we believe the shares are conservatively valued.

The other new position is Reckitt Benckiser. The British company has strong market shares in hygiene, health, and nutrition. Well known brands include Lysol, Finish, Dettol, Vanish, Durex and Nurofen. We are attracted by Reckitt’s credible medium-term targets (4-6% growth and higher operating margins by 2025) and their strong track record regarding capital allocation. At the current share price, none of the expected improvements are priced in. With a dividend yield of 3.1% we are paid an above average market return while we wait for the share price to catch up with the improving fundamentals.

We decided to sell our shares in Public Storage and Orange. The shares of Public Storage have done very well year-to-date (+30%), and are no longer supported by our estimate of intrinsic value. Orange continues to struggle in its core markets (e.g. in France and Spain), the company owns a number of infrastructure assets is it looking to monetize but the market has not responded as positive to this as we had hoped.

We currently expect a dividend yield of around 4.8% for KGHDF. This number is based on the consensus estimate of dividends paid out over the next 12 months. Based on those estimates the annual growth in dividends for KGHDF will be approximately 10%. 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 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.

Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM 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 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 2021-09-30 (rebased)

No chart data available

Performance per 2021-09-30

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  Fund Benchmark
1 month 0.7 % -2.4 %
3 months 2.5 % 2.3 %
This year 22.5 % 19.3 %
2018 -4.8 % -4.1 %
2019 20.4 % 30.0 %
2020 -9.8 % 6.3 %
1 year (on annual basis) 39.6 % 30.3 %
3 years (on annual basis) i 7.1 % 13.2 %
5 years (on annual basis) i 9.1 % 13.0 %
Since inception (on annual basis) i 7.1 % 8.5 %
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. 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 0.34
Ex-date last dividend
2021-08-05
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 2021-09-30

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  3 years Since inception
Maximum drawdown i -29.45 % -42.78 %
Tracking error i 8.12 % 5.17 %
Information ratio i -0.75 -0.29
Beta i 1.07 0.95
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM 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 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 (2021-09-30)

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  Contribution i Performance i
Equinor 0.29 % 21.52 %
Technip Energies 0.28 % 22.91 %
Repsol 0.21 % 16.41 %
Royal Dutch Shell 0.21 % 15.50 %
BP 0.19 % 14.36 %

Bottom 5 contribution (2021-09-30)

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  Contribution i Performance i
Taylor Wimpey -0.21 % -14.99 %
Enel -0.18 % -13.81 %
Sun Hung Kai Properties -0.13 % -9.57 %
Deutsche Post -0.11 % -8.56 %
Vodafone Group -0.11 % -7.30 %

Geographic allocation (2021-09-30)

23.8 %
United States
12.4 %
United Kingdom
6.9 %
Netherlands
6.9 %
Japan
5.5 %
France
5.2 %
Germany
3.9 %
Taiwan
3.8 %
Korea Republic Of
3.3 %
Canada
3.2 %
Hong Kong
3.1 %
Norway
2.8 %
Spain
2.1 %
Portugal
2.0 %
Singapore
15.3 %
Other
Total
100 %

Top 10 holdings (2021-09-30)

1.8 %
Equinor
1.6 %
Avalonbay Communities
1.6 %
Sumitomo Mitsui
1.5 %
Royal Dutch Shell
1.5 %
Sysco
1.5 %
Technip Energies
1.5 %
Pepsico
1.5 %
Repsol
1.5 %
Omnicom
1.5 %
Danone
Total
15.4 %

Sector allocation (2021-09-30)

23.6 %
Financials
11.1 %
Telecommunications
11.1 %
Energy
8.8 %
Consumer Staples
8.7 %
Utilities
7.7 %
Industrials
7.5 %
Consumer Discretionary
7.3 %
Technology
7.0 %
Health Care
3.4 %
Real estate
3.3 %
Basic Materials
0.5 %
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”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM 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 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

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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 Ongoing Charges Figure of the last financial year relates to 2019/2020.

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
0.0 % per September 2021
Performance fee last financial year
0.00 %
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%.

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.
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM 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 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

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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.
Depositary and custodian
BNP Paribas Securities Services S.C.A.
Morningstar rating â„¢
Morningstar Analyst rating
Bronze

Tradability

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Listed
no
Subscription/Redemption 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 Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM 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 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 Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM 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 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.

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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

  • 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 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.

  • 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 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 en
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM 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 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.