Kempen Global Sustainable Equity Fund N.V.

Profile

Kempen Global Sustainable Equity Fund N.V. (KGSEF) offers the opportunity to invest in a diversified portfolio of companies worldwide which comply with strict sustainability criteria. KGSEF aims to select investments with the focus on the long term. As of 1 July 2017 KGSEF will no longer invest in real estate.

Investments in the fund are screened by an independent data provider to assess compliance with environmental, social and governance (ESG) criteria. The management company uses strict sustainability criteria that minimises or excludes investments in companies involved in controversial activities such as alcohol, tobacco and adult entertainment.

Management team

Richard Klijnstra, Erwin Dut

Performance per 2017-07-31 (rebased)

No chart data available

Performance per 2017-07-31

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  Fund Benchmark
1 month -0.7 % -0.9 %
3 months -2.9 % -3.1 %
This year -0.6 % 1.4 %
2014 10.3 % 19.5 %
2015 2.8 % 10.4 %
2016 16.7 % 10.7 %
3 years (on annual basis) i 7.3 % 11.2 %
Since inception (on annual basis) i 8.8 % 13.1 %
Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The value of your investments may fluctuate. Past performance provides no guarantee for the future.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 106.91 M 2017-07-31
Number of shares
1,655,281 2017-07-31
Net Asset Value i
EUR 64.47 2017-08-16
Morningstar rating â„¢

Fund characteristics per 2017-07-31

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  Fund Benchmark
Number of holdings 49 1654
Dividend yield i 2.95 % 2.35 %
Weighted average market capitalization i EUR 100,874 M EUR 103,111 M
P/E ratio i 18.31 19.58
Active share i 88.35 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Sustainable Equity Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Market developments per 2017-07-31

The equity markets closed July down. Most companies that published results reported both better-than-expected revenue and earnings. Relatively high valuations and persisting political turbulence, as well as comments from central bank executives on reversing monetary stimulation measures, led to relatively moderate market movements.

 

Portfolio developments per 2017-07-31

What kind of companies do we seek?
We seek structurally growing and profitable companies that will create shareholder value over the long term alongside a clear social mandate. .

The best results are achieved if the interest of all the stakeholders are aligned. This requires not only products and services but also operations to be in line with the wishes and requirements of society (licence to operate).

Moreover, the companies need to have sufficient opportunities for growth to be able to invest at attractive returns (innovation and expansion).

In order to sustain earnings growth over the long term, companies need to enjoy sustainable competitive advantages compared to existing and new competitors (strong strategic position).

The role of management
We expect management to pursue a long-term strategy in addition to conducting sound day-to-day management. The risks and opportunities relating to ESG need to be clearly incorporated, backed up by sensible investment plans that respond to long-term trends and match the company’s strategic positioning and growth opportunities.

Quality and valuation
We believe the selected companies are above-average quality in terms of strategy and operations and are capable of creating long-term value for all stakeholders. Depending on the absolute valuation of their shares, they could form an interesting addition to the portfolio.

KGSEF closed the month down 0.67% and in doing so was 0.27% ahead of its benchmark.

Asia was the weakest region in KGSEF, but all regions contributed negatively to the absolute return. The energy, technology and financial sectors added to the return, while the healthcare, industrial and consumer staples sectors were the largest detractors to return. In relative terms, the consumer durables sector contributed positively, on the one hand due to food companies Unilever and Sysco performing well and on the other due to the tobacco sector, in which KGSEF holds no positions, plummeting in the wake of the FDA announcing plans to crack down the sector.
Those equities that contributed most positively to the return were: Statoil, ING Group, Verizon Communications, Applied Materials and Allianz. The negative performers were: AstraZeneca, Mattel, PPG Industries, ABB and Siemens. Statoil reported sound revenue and earnings and profited from the higher commodity prices. As far as we are concerned, this Norwegian oil company continues to be the best-positioned company in its industry with its MSCI ESG AAA rating. AstraZeneca announced disappointing news on its most important oncological clinical trial. Although its Mystic lung cancer treatment trial has not yet been completed, initial results are negative. Expectations were high as another AstraZeneca lung cancer treatment trial had recently yielded hopeful results. In spite of this short-term setback, demand for new oncology medicines is growing fast, which is positive for AstraZeneca in the long term. The Kerry Group is a new position in KGSEF. The company has a leading position in the global market for food ingredients. This market is typified by constant growth in demand due to food chain innovation and the trend for outsourcing food products. Kerry holds strong positions in this market in natural ingredients, expanding end clients and emerging markets. Kerry has been awarded an A rating for ESG with a strong score for corporate governance. The company has room for improvement in relation to its procurement chain for commodities and its fiscal transparency. Furthermore, there are ESG opportunities for healthier and more natural foods.

No major changes were made to the regional and sector weights in KGSEF in July.
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Sustainable Equity Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Performance per 2017-07-31 (rebased)

No chart data available

Performance per 2017-07-31

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  Fund Benchmark
1 month -0.7 % -0.9 %
3 months -2.9 % -3.1 %
This year -0.6 % 1.4 %
2014 10.3 % 19.5 %
2015 2.8 % 10.4 %
2016 16.7 % 10.7 %
3 years (on annual basis) i 7.3 % 11.2 %
Since inception (on annual basis) i 8.8 % 13.1 %
Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The value of your investments may fluctuate. Past performance provides no guarantee for the future.

Dividends

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Distributing
Yes
Last dividend
EUR 1.56
Ex-date last dividend
2017-01-30
Number of distributions per year
1
Dividend calendar

Risk analysis (ex post) per 2017-07-31

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  3 years Since inception
Maximum drawdown i -14.32 % -14.32 %
Tracking error i 4.03 % 3.73 %
Information ratio i -0.98 -1.16
Beta i 0.87 0.89
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Sustainable Equity Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Top 5 contribution (2017-07-31)

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  Contribution i Performance i
Statoil 0.19 % 9.23 %
ING Groep 0.13 % 4.74 %
Verizon Communications 0.12 % 6.23 %
Applied Materials 0.11 % 3.76 %
Allianz 0.08 % 4.37 %

Bottom 5 contribution (2017-07-31)

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  Contribution i Performance i
AstraZeneca -0.29 % -12.64 %
Mattel -0.18 % -10.05 %
PPG Industries -0.18 % -7.40 %
ABB -0.17 % -7.96 %
Siemens -0.10 % -4.65 %

Geographic allocation (2017-07-31)

47.3 %
The United States
11.5 %
The Netherlands
8.4 %
United Kingdom
7.7 %
Switzerland
4.5 %
Ireland
4.3 %
Germany
3.2 %
Japan
2.2 %
Norway
2.1 %
Taiwan
1.9 %
France
1.7 %
Sweden
1.4 %
Canada
1.0 %
Australia
2.8 %
Cash
Totaal
100 %

Top 10 holdings (2017-07-31)

3.0 %
Unilever
2.8 %
Alphabet Class C
2.8 %
Applied Materials
2.8 %
ING Groep
2.7 %
Pepsico
2.6 %
Estee Lauder
2.6 %
Marsh & McLennan Companies
2.6 %
JPMorgan Chase & Co
2.5 %
Microsoft
2.4 %
Allegion
Totaal
26.7 %

Sector allocation (2017-07-31)

24.4 %
Financials
21.5 %
Consumer goods
13.8 %
Technology
11.2 %
Health Care
10.7 %
Industrials
4.7 %
Telecommunications
4.4 %
Basic Materials
2.8 %
Other
2.4 %
Consumer services
2.2 %
Oil & gas
1.9 %
Utilities
Totaal
100 %
The cash position is included in ‘Other’.
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Sustainable Equity Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Ongoing charges

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Management fee i
0.60 %
Service fee i
0.20 %
Expected ongoing charges i
0.80 %
Ongoing charges last financial year i
0.92 %
As of 16 January 2017 the service fee and management fee have been amended.

Other costs

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Upward swing factor i
0.25 %
Downward swing factor i
0.25 %
More about our swing pricing policy
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Sustainable Equity Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Share class details

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Investor type
Institutional & Private
Distributing
Yes
Benchmark i
MSCI World Total Return Index Net (dividends reinvested, calculated in Euro's)
Investment category
Other
Universum
Global equities
Inception date
2013-09-18
Domicile
The Netherlands
Registered in
The Netherlands
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Administrator
BNP Paribas Securities Services S.C.A.
Management company
Kempen Capital Management N.V.
Custodian
BNP Paribas Securities Services S.C.A.
Morningstar rating â„¢

Tradability

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Listed
yes, listed on the NAV Trading Facility of Euronext
Pricing frequency
Daily
ISIN i
NL0010558854
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Sustainable Equity Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.
Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Sustainable Equity Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

KCM Vision

Kempen Capital Management is an asset manager with a long-term investment approach. We strongly believe in engaged shareholdership that benefits all stakeholders. As a long-term responsible investor, we firmly believe that active ownership and shareholder engagement contribute to positive change across the board.

Our KCM wide approach to responsible investment

To put our vision into action we engage with our investment targets on a wide array of strategic, financial, environmental, social and governance (ESG) topics. Our long-term investment worldview paired with thorough analysis and an experienced and diverse ESG team allow us to use both voting and engagement as means to consistently encourage positive change. Through this process of constructive engagement, we are able to contribute to the development of principles and standards of corporate responsibility within companies.

Fund approach to Responsible Investment

Exclude

Utilize MSCI ESG Research to screen companies on exclusion criteria:

  • Weapons
  • Nuclear Energy
  • Alcohol
  • Tobacco
  • Animal Testing
  • Adult Entertainment
  • Fur
  • Gambling
  • Factory Farming
  • GMO
  • CO2 Emissions
  • Thermal Coal
  • Real Estate

Maintain at least 30% lower carbon intensity than the benchmark (MSCI World)

Best-In-Class and Integration

Companies must have MSCI ESG ratings of BB and higher to be considered investible (comply or explain).

ESG is then further embedded into our selection process, with companies better performing on ESG scoring higher in our investment model.

Analyzing ESG data enables us to capture and better understand the potential material impacts of ESG risks and opportunities.

Process visible through larger portfolio weights in higher ESG ratings than the benchmark.

Engage

As a long-term investor, we are in a continuous dialogue with all companies in the portfolio.

We engage on strategy and ESG in particular to unlock intrinsic value and reduce risk.

We strive for companies to have best-in-class ESG policies, and consistently encourage positive change through engagement and exercising our voting rights.

Kempen Capital Management N.V. (KCM) is the management company of Kempen Global Sustainable Equity Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at the The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.