Kempen Global Sustainable Equity Fund NV

Profile

The Fund offers the opportunity to invest in a diversified portfolio of companies worldwide which comply with strict sustainability criteria. 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. The Fund strives to select investments with the focus on the long-term and sustainable growth. The Fund strives to select companies that have well integrated ESG in their strategy and are in a position to create sustainable value in the long-term. Contribution to the transition to a more sustainable economy is taken into account in the investment process. The primary objective of the Fund is to achieve a structurally better long-term return, comprising capital gains plus net dividends, than the MSCI World Total Return Index. Next to that, the Fund aims to be in line with the Paris Agreement climate goals by targeting a carbon neutral portfolio in 2050. In the meantime the Fund aims to have a carbon intensity of at least 50% below the MSCI world Net Total Return Index.

Management team

Richard Klijnstra, Mark Oud, Martijn Kleinbussink, Ivo Kuiper, Raoul Martin

Performance per 2022-08-31 (rebased)

No chart data available

Performance per 2022-08-31

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  Fund Benchmark
1 month -5.1 % -2.8 %
3 months -1.3 % 0.6 %
This year -13.7 % -7.0 %
2019 34.2 % 30.0 %
2020 10.2 % 6.3 %
2021 36.3 % 31.1 %
1 year (on annual basis) -8.5 % -0.3 %
3 years (on annual basis) i 12.9 % 12.1 %
5 years (on annual basis) i 12.8 % 11.5 %
Since inception (on annual basis) i 10.8 % 12.0 %
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 314.14 M 2022-08-31
Share class size
EUR 314.14 M 2022-08-31
Number of shares
2,871,644 2022-08-31
Net Asset Value i
EUR 103.10 2022-10-05
Transaction price i
EUR 103.00 2022-10-05

Fund characteristics per 2022-08-31

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  Fund Benchmark
Number of holdings 39 1515
Dividend yield i 1.46 % 2.08 %
Weighted average market capitalization i EUR 243,887 M EUR 374,174 M
P/E ratio i 20.53
Active share i 90.22 %
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 Dutch Authority for the Financial Markets (AFM). The 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

The fund earned a net return of -5.1% in August versus a return on the MSCI World Index of -2.8%. This brings the net return over the year so far to -13.7% versus a return on the MSCI World Index of -7.0%.

The real estate and financial sectors made the largest positive contributions to the return, while the biggest negative contribution came from the materials sector. The allocation and selection effects were negative for the month.

Deere, Beazley and Datadog accounted for the largest positive contributions to the result. At a time of huge uncertainty surrounding the state of global agriculture, the eyes of investors were fixed on Deere’s third-quarter results. The manufacturer of agricultural machines reported a compelling set of results. The company continues to be adversely affected by shortages in the value chain but things are clearly improving. Moreover, its management noted that demand for agricultural machines remained strong in all its important markets.

Croda, Applied Materials and IQVIA made the biggest negative contributions to the result. Croda reported better-than-expected interim results. Price increases and an improvement in the product mix generated 15% more revenue and net income for the company. Furthermore, its management indicated that the forecasts for the second half of the year are slightly up on those at the start of this year. Investors were unconvinced, however, and are fixated on the deteriorating consumer market. Croda will therefore need to demonstrate its stability.

The fund sold its position in Michelin and started to accrue a position in EssilorLuxottica.

EssilorLuxottica combines a leading manufacturer of premium frames and sunglasses with the global leader in optical lenses. The company was created by the merger of Essilor and Luxottica in 2018. Grandvision was added to the group in 2019. As a result, EssilorLuxottica now has a fully vertically-integrated business model, from production to distribution. The group launched its new direct-to-consumer strategy in early 2022. EssilorLuxottica aims to act as a network company for expanding the industry. As part of this it has also announced new financial targets for the medium term. We see this combination of the new strategy and financial targets as presenting an attractive trade-off between risk and return for the medium term.

EssilorLuxottica has an extensive new sustainability programme that revolves around doing good for the planet. The programme, entitled Eyes on the Planet, contains goals relating to carbon neutrality, circularity, vision care for all and an ethical approach to business. The carbon-related goals are in line with the Paris Agreement goals, important objectives for the fund.



***

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 long-term addition to the portfolio.

 

ESG

ESG MSCI ratings

The portfolio has a clear overweight in the leaders (AAA/AA) and does not invest in the laggards (B/CCC).

Source: MSCI

 

KCM versus Sustainalytics ESG risk rating

The portfolio is not invested in companies with a high or severe ESG risk according to the KCM risk rating.

Source: Sustainalytics. KGSEF* is according to KCM ESG risk rating, KGSEF** is according to Sustainalytics ESG risk rating, MSCI World*** is according to ESG risk rating

 

SDG Solutions Exposure

The SDG Solutions Assessment identifies a product or service category’s contribution or obstruction towards attaining each of 15 individual sustainability objectives. A company has a score between -10 (significant obstruction) and +10 (significant contribution). The SDG Solutions score for the portfolio is 1.72 versus 0.84 for the benchmark.

 

Source: ISS

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 Dutch Authority for the Financial Markets (AFM). The 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

Slide to see more
  Fund Benchmark
1 month -5.1 % -2.8 %
3 months -1.3 % 0.6 %
This year -13.7 % -7.0 %
2019 34.2 % 30.0 %
2020 10.2 % 6.3 %
2021 36.3 % 31.1 %
1 year (on annual basis) -8.5 % -0.3 %
3 years (on annual basis) i 12.9 % 12.1 %
5 years (on annual basis) i 12.8 % 11.5 %
Since inception (on annual basis) i 10.8 % 12.0 %
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 0.65
Ex-date last dividend
2021-02-26
Number of distributions per year
1
Dividend calendar

Risk analysis (ex post) per 2022-08-31

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  3 years Since inception
Maximum drawdown i -18.67 % -18.67 %
Tracking error i 4.92 % 4.11 %
Information ratio i 0.15 -0.30
Beta i 1.00 0.96
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 Dutch Authority for the Financial Markets (AFM). The 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
Deere 0.25 % 7.88 %
Beazley 0.08 % 4.30 %
Blackrock 0.04 % 0.98 %
Datadog 0.03 % 4.32 %
Xylem 0.01 % 0.71 %

Bottom 5 contribution (2022-08-31)

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  Contribution i Performance i
IQVIA -0.39 % -10.25 %
Applied Materials -0.35 % -9.76 %
Croda -0.33 % -12.84 %
Mastercard -0.31 % -7.03 %
Thermo Electron -0.31 % -7.59 %

Geographic allocation (2022-08-31)

59.1 %
United States
7.5 %
Germany
5.9 %
United Kingdom
5.5 %
Switzerland
5.4 %
Denmark
4.8 %
Ireland
2.5 %
Norway
2.4 %
Taiwan
2.3 %
Sweden
2.1 %
France
0.8 %
Cash
1.8 %
Other
Total
100 %

Top 10 holdings (2022-08-31)

4.7 %
Microsoft
4.3 %
Mastercard
4.2 %
Alphabet Class A
3.9 %
Thermo Fisher Scientific
3.8 %
Estee Lauder
3.7 %
BlackRock
3.7 %
Nike Class B
3.6 %
IQVIA
3.6 %
Marsh & McLennan Companies
3.5 %
Applied Materials
Total
39.1 %

Sector allocation (2022-08-31)

22.9 %
Technology
19.4 %
Health Care
12.6 %
Financials
12.6 %
Industrials
12.2 %
Consumer Staples
8.7 %
Consumer Discretionary
5.6 %
Telecommunications
5.2 %
Basic Materials
0.8 %
Other
Total
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 Dutch Authority for the Financial Markets (AFM). The 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 Sustainable Equity Fund (the “Fund”) falls under the scope of article 8 of the SFDR which means that the Fund promotes environmental and/or social characteristics. While it does not have as its objective a sustainable investment, it will have a minimum proportion of the benchmark level of sustainable investments. The Fund considers principle adverse impact on sustainability factors.

The Fund promotes environmental characteristics related to:
• climate change mitigation and climate change adaptation in line with the Paris Climate Agreement;
• the protection of biodiversity and ecosystems;
• the transition to a circular economy.

The Fund promotes social characteristics related to:
• decent work;
• adequate living standards and wellbeing for end-users;
• other social topics such as gender equality and broader diversity matters.

The environmental characteristics promoted by the Fund seek to contribute to the achievement of the climate goals of the Paris Agreement and the National Climate Agreement of the Netherlands (‘Klimaatakkoord’). This decarbonization pathway encompasses short-term (2025) objectives, a mid-term (2030) ambition and a long-term commitment to be net zero by 2050. Although there has been no index designated as a reference benchmark, by 2025 the Fund aims to have a carbon intensity that is below the EU Paris Aligned Benchmark (EU PAB) pathway. This pathway assumes a carbon intensity that is 50% lower than the Fund's relevant benchmark in 2019 with a subsequent 7% annual reduction.

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 four relevant pillars of ESG pillars: Exclusion, ESG integration, Active Ownership and Positive Impact.

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 and award a score (1-5). We apply adequate due diligence measures when selecting the assets and such due diligence measures take into account ESG related risks as it could help to enhance long-term risk adjusted returns for investors, in accordance with the investment objectives of the Fund.

Exclusion

The product excludes at least 20% of the investment universe through the application of strict exclusion criteria. These take into account international standards, such as the UN Global Compact framework, the OECD Guidelines for Multinational Enterprises, the 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. Furthermore, the Fund excludes companies with low ESG ratings.

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 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 Dutch Authority for the Financial Markets (AFM). The 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
0.15 %
Expected ongoing charges i
0.65 %
Ongoing charges last financial year i
0.70 %
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 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 Dutch Authority for the Financial Markets (AFM). The 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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Investor type
Institutional & Private
Distributing
Yes
Benchmark i
MSCI World Total Return Index Net (dividends reinvested, calculated in Euro's)
Investment category
Sustainable Equity
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., Amsterdam branch
Management company
Kempen Capital Management N.V.
Depositary and custodian
BNP Paribas Securities Services S.C.A., Amsterdam branch

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 Dutch Authority for the Financial Markets (AFM). The 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 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 Dutch Authority for the Financial Markets (AFM). The 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.