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, Mark Oud, Martijn Kleinbussink

Performance per 2017-09-30 (rebased)

No chart data available

Performance per 2017-09-30

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  Fund Benchmark
1 month 4.2 % 2.8 %
3 months 2.2 % 1.1 %
This year 2.2 % 3.5 %
2014 10.3 % 19.5 %
2015 2.8 % 10.4 %
2016 16.7 % 10.7 %
3 years (on annual basis) i 7.4 % 10.1 %
Since inception (on annual basis) i 9.2 % 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 108.21 M 2017-09-30
Number of shares
1,628,231 2017-09-30
Net Asset Value i
EUR 68.09 2017-10-18
Transaction price i
EUR 67.92 2017-10-18
Morningstar rating â„¢

Fund characteristics per 2017-09-30

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  Fund Benchmark
Number of holdings 45 1652
Dividend yield i 2.54 % 2.34 %
Weighted average market capitalization i EUR 103,688 M EUR 105,284 M
P/E ratio i 19.78 19.71
Active share i 89.15 %
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.

Market developments per 2017-09-30

Global equity markets noted sound positive returns in September. KGSEF also earned a good return at 4.2%, both in an absolute sense and versus the general market. The sector with the largest positive contribution was technology, while the telecom sector yielded the largest negative contribution. All the regions added to KGSEF’s performance.

 

Portfolio developments per 2017-09-30

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.

Portfolio
We have included Valeo in the portfolio and sold our positions in Telstra, Toyota, Mattel and New York Community Bancorp. This means that the transition to the new long-term strategy is now largely complete.

Valeo occupies a leading position as a supplier to the auto industry (climate, visibility, comfort and driving assistance systems). The supplier value chain has become much more rational and the position of suppliers in relation to car manufacturers has improved, chiefly thanks to innovation and product leadership. Valeo enjoys a high level of exposure to growth in driverless and electric cars and to Asia. Valeo continues to depend on car manufacturers and the sales cycles of new cars, but the company’s sensitivity to these has been reduced via lower fixed costs and its exposure to products that are undergoing sharp growth. Valeo has been awarded an ‘A’ ESG rating and is contributing to the development of cleaner cars via its above-average R&D budget.
The equity selection added value this month, mainly in the US. The top-three companies ranked according to contribution are Applied Materials, which published positive forecasts for 2020; AstraZeneca, which reported in detail on its clinical trials for lung cancer treatment; and Allegion. At the bottom of the ranking are Mattel, Pepsico and Beazley. Beazley was affected by hurricanes Harvey, Mary and Irma, although we view this as a short-term impact on the company. We have sold Mattel because we believe it is not robust enough to be able to grow structurally in a competitive market.
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 2017-09-30 (rebased)

No chart data available

Performance per 2017-09-30

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  Fund Benchmark
1 month 4.2 % 2.8 %
3 months 2.2 % 1.1 %
This year 2.2 % 3.5 %
2014 10.3 % 19.5 %
2015 2.8 % 10.4 %
2016 16.7 % 10.7 %
3 years (on annual basis) i 7.4 % 10.1 %
Since inception (on annual basis) i 9.2 % 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 2017-09-30

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  3 years Since inception
Maximum drawdown i -14.32 % -14.32 %
Tracking error i 4.03 % 3.75 %
Information ratio i -0.68 -1.05
Beta i 0.89 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 (2017-09-30)

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  Contribution i Performance i
Applied Materials 0.47 % 16.06 %
AstraZeneca 0.30 % 14.17 %
Allegion 0.26 % 10.67 %
LyondellBasell Industries 0.25 % 11.05 %
Marsh & McLennan Companies 0.21 % 7.95 %

Bottom 5 contribution (2017-09-30)

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  Contribution i Performance i
Mattel -0.11 % -6.79 %
Pepsico -0.09 % -3.17 %
Telstra -0.04 % -3.64 %
Beazley -0.03 % -1.73 %
Vodafone Group -0.02 % -1.35 %

Geographic allocation (2017-09-30)

46.3 %
The United States
10.3 %
United Kingdom
9.9 %
The Netherlands
8.0 %
Switzerland
4.9 %
Ireland
4.6 %
Germany
4.5 %
France
2.2 %
Taiwan
2.1 %
Norway
1.9 %
Japan
1.8 %
Sweden
1.0 %
Canada
2.5 %
Cash
Totaal
100 %

Top 10 holdings (2017-09-30)

3.3 %
Applied Materials
2.9 %
Alphabet Class C
2.9 %
Unilever
2.8 %
Marsh & McLennan Companies
2.8 %
ING Groep
2.7 %
AstraZeneca
2.7 %
JPMorgan Chase & Co
2.6 %
Microsoft
2.6 %
Estee Lauder
2.6 %
Pepsico
Totaal
27.9 %

Sector allocation (2017-09-30)

22.5 %
Financials
22.3 %
Consumer goods
14.9 %
Technology
12.2 %
Health Care
11.2 %
Industrials
4.8 %
Basic Materials
3.7 %
Consumer services
2.5 %
Other
2.1 %
Oil & gas
2.0 %
Utilities
2.0 %
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
0.92 %
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 2015/2016.

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
0.25 %
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
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
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.