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, Mark Oud, Martijn Kleinbussink

Performance per 2018-10-31 (rebased)

No chart data available

Performance per 2018-10-31

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  Fund Benchmark
1 month -4.8 % -5.0 %
3 months -3.5 % -2.6 %
This year 2.0 % 3.5 %
2015 2.8 % 10.4 %
2016 16.7 % 10.7 %
2017 6.1 % 7.5 %
1 year (on annual basis) 2.4 % 4.0 %
3 years (on annual basis) i 7.4 % 7.0 %
5 years (on annual basis) i 7.5 % 10.8 %
Since inception (on annual basis) i 8.4 % 11.8 %
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. Due to Easter a deviating net asset value (NAV) is used for the calculation of the performance figures. The NAV is calculated based on the closing prices of the Fund investments per 29 March 2018 (Europe), the closing prices of 2 April 2018 (North America) and calculated based on ‘snapshots’ prices of 3 April 2018 (Asian and Pacific investments).
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 88.28 M 2018-10-31
Share class size
EUR 88.28 M 2018-10-31
Number of shares
1,278,545 2018-10-31
Net Asset Value i
EUR 69.77 2018-11-16
Transaction price i
EUR 69.77 2018-11-16
Morningstar rating â„¢

Fund characteristics per 2018-10-31

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  Fund Benchmark
Number of holdings 42 1636
Dividend yield i 2.14 % 2.46 %
Weighted average market capitalization i EUR 122,938 M EUR 139,514 M
P/E ratio i 20.64 16.32
Active share i 90.35 %
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.

 

 

 

 

Portfolio developments per 2018-10-31

In October, the fund earned a return of -4.8% against a return on the MSCI World Index of -5.0%. In 2018 so far, the fund has earned a return of 2.0% against a return on the MSCI World Index of 3.5%.

The consumer staples sector was the only sector to contribute positively to the performance. All the other sectors closed the month in the red. In doing so, the healthcare and financials sectors performed better than the general market, while the telecom, materials and industrials sectors noted the largest decreases.

Xylem is a new name that has been added to the portfolio. This company supplies products and services for water management. Its main customers are water companies and industrial companies. Xylem operates globally and is a market leader in technological innovation. No other changes have been made to the portfolio.

Marine Harvest, Marsh & McLennan and Bridgestone were the best performers in the portfolio, while Valeo, Fergusson and Covestro made the largest negative contributions.

Salmon producer Marine Harvest profited from a further increase in the price of salmon. Market demand for salmon remains robust, while the supply side has restricted volume growth. These are sound dynamics for market leader Marine Harvest, but also for other parties in the market. The other names in the consumer staples sector, such as Unilever and Heineken, performed relatively well in the volatile market thanks to their defensive nature.

Auto part manufacturer Valeo disappointed analysts with weak forecasts for the coming quarter. The disappointment derives partly from market conditions, such as the introduction of new emission legislation for cars in Europe and the weakening growth in China. There were also a number of company-specific setbacks. The postponement of a large customer order in Driver Assistance and the loss of a major Chinese order for lights are particularly negative developments. As a result, Valeo continues to lag far behind the already weak auto sector. Nevertheless, based on its order book and leading position in interesting product segments, we see a great deal of room for recovery at Valeo.

Fergusson, a distributor of products and parts for the plumbing and heating market, has had a good quarter but announced its intention to increase its growth investments further. This matches its strategy to further consolidate the market. However, the negative impact on the cashflow led to its equity coming in for severe punishment. In our view, this was exacerbated by concerns about the cycle in the US housing market.

What kind of companies do we seek?
We seek profitable companies undergoing structural growth that will create shareholder value in the long term alongside a clear social mandate.

The best results are achieved if the interests 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 an attractive return (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 equities, they could form an interesting addition to the portfolio.
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 2018-10-31 (rebased)

No chart data available

Performance per 2018-10-31

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  Fund Benchmark
1 month -4.8 % -5.0 %
3 months -3.5 % -2.6 %
This year 2.0 % 3.5 %
2015 2.8 % 10.4 %
2016 16.7 % 10.7 %
2017 6.1 % 7.5 %
1 year (on annual basis) 2.4 % 4.0 %
3 years (on annual basis) i 7.4 % 7.0 %
5 years (on annual basis) i 7.5 % 10.8 %
Since inception (on annual basis) i 8.4 % 11.8 %
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. Due to Easter a deviating net asset value (NAV) is used for the calculation of the performance figures. The NAV is calculated based on the closing prices of the Fund investments per 29 March 2018 (Europe), the closing prices of 2 April 2018 (North America) and calculated based on ‘snapshots’ prices of 3 April 2018 (Asian and Pacific investments).

Dividends

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Distributing
Yes
Last dividend
EUR 1.29
Ex-date last dividend
2018-02-05
Number of distributions per year
1
Dividend calendar

Risk analysis (ex post) per 2018-10-31

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  3 years Since inception
Maximum drawdown i -8.72 % -14.32 %
Tracking error i 3.01 % 3.40 %
Information ratio i 0.13 -0.99
Beta i 0.93 0.90
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 (2018-10-31)

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  Contribution i Performance i
Marine Harvest 0.17 % 7.44 %
Marsh & McLennan Companies 0.16 % 5.54 %
Bridgestone 0.10 % 4.86 %
Roche Holding 0.07 % 2.59 %
Pepsico 0.06 % 3.06 %

Bottom 5 contribution (2018-10-31)

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  Contribution i Performance i
Valeo -0.48 % -23.76 %
Ferguson -0.46 % -16.96 %
Covestro -0.37 % -18.27 %
Applied Materials -0.32 % -12.82 %
Blackrock -0.31 % -10.55 %

Geographic allocation (2018-10-31)

55.3 %
United States
11.6 %
United Kingdom
7.3 %
Germany
5.6 %
Ireland
4.1 %
Switzerland
4.0 %
Netherlands
2.5 %
Norway
2.3 %
Taiwan
2.2 %
Japan
1.7 %
France
1.5 %
Spain
1.4 %
Denmark
2.4 %
Other
Totaal
102 %

Top 10 holdings (2018-10-31)

3.9 %
Alphabet Class A
3.9 %
Microsoft
3.3 %
Mastercard
3.3 %
Estee Lauder
3.3 %
JPMorgan Chase & Co
3.1 %
Marsh & McLennan Companies
3.1 %
AstraZeneca
3.1 %
IQVIA Holdings
3.1 %
Roche Holding
3.1 %
Cisco
Totaal
33.1 %

Sector allocation (2018-10-31)

24.3 %
Consumer goods
17.7 %
Technology
16.5 %
Industrials
16.0 %
Health Care
14.4 %
Financials
6.7 %
Basic Materials
2.7 %
Consumer services
1.7 %
Telecommunications
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
0.83 %
As of 16 January 2017 the service fee and management fee have been amended.

The Ongoing Charges Figure of the last financial year relates to 2016/2017.

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%

The management 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: 0.60%
>EUR 200 million: 0.55%

Other costs

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Upward swing factor i
0.25 %
Downward swing factor i
0.15 %
As of 1 January 2018 the swing factor is adjusted from 0.25%/0.25% to 0.25%/0.15%.
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
Sustainable Value Creation
Universum
Global equities
Inception date
2013-09-18
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.
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
Subscription/Redemption 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 that we invest in. Our full voting records are available here.

Our 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.