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 2022-08-31 (rebased)

No chart data available

Performance per 2022-08-31

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  Fund Benchmark
1 month -2.3 % -2.8 %
3 months -3.3 % 0.6 %
This year -2.0 % -7.0 %
2019 20.3 % 30.0 %
2020 -9.9 % 6.3 %
2021 29.8 % 31.1 %
1 year (on annual basis) 4.5 % -0.3 %
3 years (on annual basis) i 8.5 % 12.1 %
5 years (on annual basis) i 7.2 % 11.5 %
Since inception (on annual basis) i 6.8 % 8.1 %
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 777.33 M 2022-08-31
Share class size
EUR 411.50 M 2022-08-31
Number of shares
12,067,013 2022-08-31
Net Asset Value i
EUR 33.14 2022-10-05
Transaction price i
EUR 33.09 2022-10-05
Morningstar rating â„¢
Morningstar Analyst rating
Bronze

Fund characteristics per 2022-08-31

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  Fund Benchmark
Number of holdings 72 1515
Dividend yield i 4.56 % 2.08 %
Weighted average market capitalization i EUR 58,604 M EUR 374,174 M
P/E ratio i 8.87
Active share i 94.44 %
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 2022-08-31

August was a weak month for equities. Investors are more and more convinced that the global economy is in a recession or is heading towards one. In light of this slowdown, the general expectation was that central banks would reduce the speed at which interest rates are raised. Comments by central banks, most notably the Fed, clearly indicate that fighting inflation is on top of the priority list at the moment. Curbing inflation by increasing interest rates will further increase the possibility of a recession. Rising rates, lower growth, and still high inflation is a combination that makes investors more cautious on equities. Within this negative environment, KGDHF outperformed the broader market. KGHDF modestly underperformed the style index (Morningstar Developed Markets Dividend Yield > 3% Index).

The sector that contributed most to the absolute and relative performance of KGHDF was the energy sector. Driven by higher energy prices, stocks like Chesapeake Energy, BP, and Technip Energies performed well. The industrials sector detracted most from the absolute performance of KGHDF. Especially European industrials performed poorly over the month of August, driven by recession fears, rising energy prices, and inflationary pressures. The worst performing sector from a relatively perspective was the communication services sector (WPP did poorly).

One of the largest contributors was Cardinal Health (+20% in August). Cardinal Health is an American company that focuses mainly on the distribution of pharmaceutical products. A part of the business is also involved with manufacturing, sourcing and distribution of branded and private label surgical and laboratory products. This division is loss-making at the moment. Recently, Elliott Advisors acquired a stake in Cardinal Health. This activist shareholder has been able to appoint 5 of the 11 board members. This provides Elliott with substantial power to change the strategic direction of the company. There are two obvious ways in which the activist can change the value of the company. The first way is to sell the loss-making medical division. Based on a recent transaction of a similar company, the potential price of Cardinal’s medical division could well be in excess of Cardinal’s market value. The second way to change the company for the better is to reorganize the distribution business. If Cardinal can improve its below average margins towards the margins that are achieved by direct peers, substantial value is created. In anticipation of a strong uplift in earnings, the shares have moved up substantially. Despite the strong price performance in August, the shares trade at 12 times expected 2023 earnings. The shares provide a dividend yield of around 3%.

One of the detractors from KGHDF’s performance was Taylor Wimpey, declining 17%. Taylor Wimpey is one of the largest housebuilders in the UK by volume. There are three negatives that are driving the disappointing share price performance, which are inflation, rising interest rates, and deteriorating consumer confidence. The housebuilders have successfully battled with inflation for a couple of months now as building materials like cement, bricks, and wood have become more expensive. So far, most of the cost inflation could be passed on to the home buyers. However, investors are increasingly worried that consumers will see their budgets squeezed by higher cost of living (e.g. food and energy) and higher interest rates. We believe that the demand/supply balance in the UK housing market remains healthy, which creates a strong pricing tailwind for UK homebuilders. Recent company results were reassuring, and Taylor Wimpey’s 2022 profit guidance was raised. Both price/earnings ratio (6 times expected 2023 earnings) and dividend yield (~10%) indicate that the shares are offering good value at current levels.

Portfolio activity over August was limited. In July we started a position in Ferguson. This position was financed by selling our position in MSC Industrial Direct. Both companies are distributors. However, Ferguson has a better competitive position than MSCI Industrial Direct. This was not reflected in the share price.

We currently expect a dividend yield of around 4.9% for KGHDF. This number is based on the consensus estimate of dividends paid out over the next 12 months. 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 2022-08-31 (rebased)

No chart data available

Performance per 2022-08-31

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  Fund Benchmark
1 month -2.3 % -2.8 %
3 months -3.3 % 0.6 %
This year -2.0 % -7.0 %
2019 20.3 % 30.0 %
2020 -9.9 % 6.3 %
2021 29.8 % 31.1 %
1 year (on annual basis) 4.5 % -0.3 %
3 years (on annual basis) i 8.5 % 12.1 %
5 years (on annual basis) i 7.2 % 11.5 %
Since inception (on annual basis) i 6.8 % 8.1 %
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
2022-08-05
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 2022-08-31

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  3 years Since inception
Maximum drawdown i -29.47 % -33.53 %
Tracking error i 9.74 % 5.72 %
Information ratio i -0.37 -0.23
Beta i 0.99 0.92
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 (2022-08-31)

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  Contribution i Performance i
Cardinal Health 0.30 % 20.40 %
Technip Energies 0.16 % 8.19 %
Repsol 0.14 % 7.09 %
Yamaha Motor 0.14 % 10.74 %
Principal Financial Group 0.13 % 13.24 %

Bottom 5 contribution (2022-08-31)

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  Contribution i Performance i
Taylor Wimpey -0.35 % -17.38 %
GSK -0.28 % -22.58 %
WPP -0.26 % -18.35 %
Sanofi -0.22 % -15.46 %
Hennes & Mauritz B -0.17 % -16.47 %

Geographic allocation (2022-08-31)

29.9 %
United States
16.5 %
United Kingdom
7.2 %
Germany
6.5 %
Japan
6.4 %
Netherlands
5.9 %
France
3.3 %
Spain
3.2 %
Singapore
3.1 %
Canada
17.9 %
Other
Total
100 %

Top 10 holdings (2022-08-31)

2.3 %
BlackRock
2.2 %
Shell
2.2 %
Kinder Morgan
2.2 %
Singapore Telecommunications
2.1 %
Technip Energies
2.0 %
Samsung Electronics Pref
2.0 %
Sysco
1.9 %
Repsol
1.9 %
LyondellBasell Industries
1.8 %
National Grid
Total
20.6 %

Sector allocation (2022-08-31)

20.2 %
Financials
13.0 %
Energy
11.0 %
Telecommunications
8.4 %
Industrials
8.3 %
Health Care
8.1 %
Consumer Staples
8.0 %
Consumer Discretionary
6.2 %
Technology
6.0 %
Utilities
5.5 %
Basic Materials
3.2 %
Real estate
2.1 %
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

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.