Kempen Global High Dividend Fund - Class Y

Profile

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

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

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

Management team

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

Performance per 2022-04-30 (rebased)

No chart data available

Performance per 2022-04-30

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  Fund Benchmark
1 month 1.1 % -3.3 %
3 months -2.5 % -2.4 %
This year -0.2 % -6.3 %
2019 20.3 % 30.0 %
2020 -9.9 % 6.3 %
2021 29.8 % 31.1 %
1 year (on annual basis) 11.7 % 10.1 %
3 years (on annual basis) i 6.9 % 12.7 %
5 years (on annual basis) i 7.3 % 10.9 %
Since inception (on annual basis) i 7.1 % 8.4 %
The results shown of the periods before 20 July 2016, the inception date of Kempen Global High Dividend Fund N.V. class Y, are those of Kempen Global High Dividend Fund N.V. class N. Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The value of your investments may fluctuate. Past performance provides no guarantee for the future. The dividend distribution of KGHDF (ex-date 01 August 2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 890.34 M 2022-04-30
Share class size
EUR 423.76 M 2022-04-30
Number of shares
11,946,199 2022-04-30
Net Asset Value i
EUR 35.55 2022-05-16
Transaction price i
EUR 35.49 2022-05-16
Morningstar rating â„¢
Morningstar Analyst rating
Bronze

Fund characteristics per 2022-04-30

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  Fund Benchmark
Number of holdings 75 1538
Dividend yield i 4.41 % 1.92 %
Weighted average market capitalization i EUR 58,836 M EUR 363,267 M
P/E ratio i 9.57
Active share i 94.52 %
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 2022-04-30

April was a positive month for KGHDF in an absolute sense. The performance was in line with the performance of our investment universe (Morningstar Developed Markets DY > 3%) and KGHDF was substantially ahead of the broader market index. Besides strong stock selection, the relative performance versus the broader market index was mainly driven by avoiding technology stocks as the tech-heavy NASDAQ index declined by 13% in USD. The sector that contributed most to the absolute performance was the consumer staples sector (Danone performed well). The financials sector detracted from our absolute performance (Blackrock did poorly). The sector that added most to the relative performance was the IT sector (avoiding the tech sell off). Stock selection within healthcare was strong (GlaxoSmithKline and Merck did well). The sector that detracted most from the relative performance was the real estate sector, although the effect was negligible.

One of the best contributors was Repsol (+20% in April). This integrated energy company reported strong first quarter results. Production is increasing and refining utilization rates are moving up. These developments lead to higher than expected free cash flows. The company positively surprised investors by announcing additional share buy backs. Consensus earnings estimates for 2022 and 2023 have been rising for several months now . Despite the 67% strong run-up of the shares since the summer of 2021, the shares still only trade at 6 times 2023 earnings.

One of the detractors from performance was Blackrock, declining 20%. The American asset management company reported quarterly earnings. Although earnings were in line with expectations, investors are worried that the recent weakness in capital markets will lead to lower fee income. We believe that Blackrock is able to adjust their cost base to potentially negative fee income developments. Also, assets continue to grow, driven by passive products. The shares currently trade at a price/earnings ratio of 14 times 2023 consensus earnings. For a cash generative business with long term growth prospects, this is too low. The dividend yield of around 3% remains attractive.

In April we have added 2 new positions to the portfolio. The first new position is Telefonica. Telefonica is active in fixed and wireless telecommunication across Europe (Spain, Germany and UK) and Latin America. They currently are market leader in their home market Spain, which is also their largest market (~30% of revenue). The Spanish market is seeing consolidation in the market, which we believe this will lead to a more stable pricing environment. Brazil is also a consolidating market, which should eventually lead to improving profits. Telefonica has lowered its debt levels by selling infrastructure and non-core assets. These developments are not yet fully reflected in the share price. The current dividend yield of around 7% is attractive. The second addition to the portfolio is Chesapeake Energy. This US shale gas producer is benefiting from very high natural gas prices. The high natural gas prices result in substantial free cash flow generation, which are not reflected in the share price. We have carefully evaluated Chesapeake’s ESG profile. The company has various policies that are clearly better than industry standards. E.g., it uses 3 walls of casings around the wellbore, it provides details about greenhouse gas emissions, and management compensation is dependent on achieving environmental and safety standards. Natural gas can be seen as a transition fuel in the move towards renewable energy. We actively engage with management to further improve the ESG profile of the company.

To finance our new positions we have sold our positions in SK Square and Redwood Trust. SK Square is a spin off from our holding in SK Telecom. The position was therefore relatively small. After analyzing the SK Square business in more detail, we concluded that a larger position was not warranted. We have sold our shares in Redwood Trust, which is an American specialty finance company focused on several areas of housing credit. We have sold Redwood Trust for two reasons. We expect that higher interest rates will put pressure on mortgage refinancing volumes. Additionally, margin pressure is expected as the result of intensifying competitive pressures.

We currently expect a dividend yield of around 4.5% 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 6%. KGHDF still trades at a strong discount versus the market (the average valuation of all the holdings in KGHDF versus the broader equity market). Historically, this has led to a strong relative performance in the medium term. Also, the absolute valuation of the strategy is compelling. We continue to focus on attractively valued companies, that have good capital discipline and generate positive cash flow through the cycle. In summary, the current environment offers the opportunity to buy a well-diversified portfolio with solid earnings power at an attractive valuation. In addition, ESG (Environmental, Social and Governance) is fully incorporated in our investment process.

Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). 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 2022-04-30 (rebased)

No chart data available

Performance per 2022-04-30

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  Fund Benchmark
1 month 1.1 % -3.3 %
3 months -2.5 % -2.4 %
This year -0.2 % -6.3 %
2019 20.3 % 30.0 %
2020 -9.9 % 6.3 %
2021 29.8 % 31.1 %
1 year (on annual basis) 11.7 % 10.1 %
3 years (on annual basis) i 6.9 % 12.7 %
5 years (on annual basis) i 7.3 % 10.9 %
Since inception (on annual basis) i 7.1 % 8.4 %
The results shown of the periods before 20 July 2016, the inception date of Kempen Global High Dividend Fund N.V. class Y, are those of Kempen Global High Dividend Fund N.V. class N. Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The value of your investments may fluctuate. Past performance provides no guarantee for the future. The dividend distribution of KGHDF (ex-date 01 August 2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.

Dividends

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Distributing
Yes
Last dividend
EUR 0.37
Ex-date last dividend
2022-02-28
Number of distributions per year
4
Dividend calendar
The dividend distribution of KGHDF (ex-date 01 August 2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.

Risk analysis (ex post) per 2022-04-30

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  3 years Since inception
Maximum drawdown i -29.47 % -20.10 %
Tracking error i 9.53 % 5.63 %
Information ratio i -0.60 -0.22
Beta i 1.05 0.93
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 (2022-04-30)

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  Contribution i Performance i
Repsol 0.33 % 19.80 %
Merck & Co 0.23 % 14.00 %
Danone 0.20 % 15.21 %
Sysco 0.16 % 9.99 %
Sanofi 0.14 % 9.37 %

Bottom 5 contribution (2022-04-30)

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  Contribution i Performance i
Blackrock -0.26 % -14.39 %
MTN Group -0.22 % -13.25 %
Triton International -0.13 % -8.19 %
Rio Tinto -0.11 % -5.61 %
Cisco -0.11 % -6.72 %

Geographic allocation (2022-04-30)

29.6 %
United States
17.6 %
United Kingdom
7.3 %
Germany
6.8 %
Netherlands
6.2 %
France
5.5 %
Japan
3.1 %
Singapore
3.0 %
Canada
2.9 %
Spain
2.6 %
Taiwan
2.3 %
Korea Republic Of
2.0 %
Sweden
11.1 %
Other
Total
100 %

Top 10 holdings (2022-04-30)

2.3 %
Kinder Morgan
2.3 %
Shell
2.2 %
Public Services Enterprise Group
2.1 %
Technip Energies
2.0 %
Sysco
2.0 %
National Grid
2.0 %
Fresenius
2.0 %
Repsol
1.9 %
Bridgestone
1.9 %
LyondellBasell Industries
Total
20.9 %

Sector allocation (2022-04-30)

20.2 %
Financials
12.6 %
Energy
10.5 %
Telecommunications
10.2 %
Health Care
8.4 %
Consumer Staples
8.0 %
Utilities
7.9 %
Consumer Discretionary
7.5 %
Industrials
6.5 %
Technology
4.0 %
Basic Materials
2.9 %
Real estate
1.4 %
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.

Environmental and/or social characteristics promoted

The Kempen Global High Dividend Fund (the “Fund”) falls under the scope of article 8 of the SFDR which means that the fund promotes environmental and/or social characteristics. This fund will invest in a broad range of companies, of which some will have sustainability objectives.

We commit to the goals of the Paris Agreement. This encompasses short-term objectives (2025), a mid-term ambition (2030) and a long-term commitment to be a net zero investor by 2050. By 2025, we aim to be aligned with a path to achieving the Paris Agreement and Dutch Klimaatakkoord. We follow the market reduction, which assumes a pathway in line with the EU Benchmarks.

Fund carbon emission targets

Morningstar sustainability rating

ESG Investment process

The promotion of environmental and/or social characteristics is achieved through the consistent implementation of the funds ESG policy. The ESG policy is fully implemented in our strategy’s investment process across the three relevant pillars of: Exclusion, ESG integration and Active ownership.

In the investment process we assess the ESG profile of a company. We look at each company on a case-by-case basis, taking into account material risks in a given industry in combination with the company’s respective risk exposure, practices and disclosure. This includes an assessment of good governance practices. The investee companies are rated for governance aspects using external research as well as making internal assessments. Furthermore, we look into the company’s exposure to past controversies and future ESG opportunities. Based on the fundamental ESG analysis we form an opinion on the quality of a company’s ESG profile.

Exclusion

The Fund applies exclusion criteria. These take into account international standards, such as UN Global Compact Framework, the OECD Guidelines for Multinational Enterprises, UN Guiding Principles for Business and Human Rights, and our Principles for Responsible Investment commitments. The Fund applies additional exclusion criteria based on product involvement and business conduct.

Key figures

  Kempen criteria Additional criteria
Business conduct
Human Rights
Labour
Environment
Anti Corruption
Product involvement
Controversial Weapons
Tobacco
Thermal Coal
Tar Sands
Adult Entertainment
Alcohol
Animal Welfare & GMO
Gambling
Power Generation Nuclear
Power Generation Carbon Intensive
(Un)conventional Oil & Gas Extraction
Weaponry
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
0.500 %
Service fee i
0.10 %
Expected ongoing charges i
0.60 %
Ongoing charges last financial year i
0.60 %
The ongoing charges figure of the last financial year relates to 2020/2021.

The service fee is determined annually on basis of the net asset value as of the last day of the previous financial year:
< or equal to EUR 200 million: 0.20%
Between EUR 200 million and EUR 700 million: 0.15%
>EUR 700 million: 0.10%
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). 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
Y
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
2016-07-20
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., Amsterdam branch
Management company
Kempen Capital Management N.V.
Depositary and custodian
BNP Paribas Securities Services S.C.A., Amsterdam branch
Morningstar rating â„¢
Morningstar Analyst rating
Bronze

Tradability

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Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
NL0011755855
Details
Orders must be submitted via Fundsettle.
Class Y of Kempen Global High Dividend Fund N.V. will only be available for orders submitted via the Fundsettle platform. Share class Y will only be available for distributors who submit orders on behalf of their clients, and who have been selected by the management company.
Kempen Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). 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.