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 2018-04-30 (rebased)

No chart data available

Performance per 2018-04-30

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  Fund Benchmark
1 month 2.5 % 3.0 %
3 months -1.8 % -2.2 %
This year -0.3 % -0.8 %
2015 2.8 % 10.4 %
2016 16.7 % 10.7 %
2017 6.1 % 7.5 %
3 years (on annual basis) i 3.8 % 4.9 %
Since inception (on annual basis) i 8.8 % 12.1 %
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. 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 116.32 M 2018-04-30
Number of shares
1,723,588 2018-04-30
Net Asset Value i
EUR 69.99 2018-05-18
Transaction price i
EUR 70.16 2018-05-18
Morningstar rating â„¢

Fund characteristics per 2018-04-30

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  Fund Benchmark
Number of holdings 45 1648
Dividend yield i 2.19 % 2.34 %
Weighted average market capitalization i EUR 106,691 M EUR 113,876 M
P/E ratio i 19.70 17.68
Active share i 90.02 %
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 2018-04-30

In April, the fund earned a return of 2.5% against a return of 3.0% on the MSCI World Index. In 2018 so far, the fund has earned a return of -0.3 % compared to a return of -0.8% on the MSCI World Index.

The consumer goods, financials and healthcare sectors accounted for the largest positive contributions to the performance, while the industrials and materials sectors made the largest negative contributions. Sector allocation had a major impact on the negative relative performance. The strategy holds no exposure to energy, while this sector displayed a robust performance.

The top-3 best-performing stocks for April were: LHC Group, Booking Holdings (formerly Priceline) and Marine Harvest. LHC Group is a high-end provider of post-acute healthcare in the US, chiefly in the comfort and privacy of a patient’s own home or home town.

In addition to the fact that patients appreciate this, it is a solution to rising healthcare costs. LHC Group is able to provide the same standard of care at a lower cost than a hospital. In April, the US government introduced new legislation aimed at increasing the quality of life of patients and at the same time cutting costs. One component of this is shifting care from expensive hospitals to the patient’s own home. For LHC this means it will now be able to offer more services and treat more patients. We believe LHC to be a good example of sustainable value creation from which all stakeholders benefit.

Kion Group, Applied Materials and Deere & Company were the largest negative outliers. Deere & Company is a globally-operating manufacturer of agricultural, construction and forestry machines under the John Deere brand.

The company was founded in 1837 by a blacksmith named John Deere. He discovered that the farmers’ imported ploughs were inappropriate for use in the US. He went on to develop ten different ploughs for the different soil types found throughout the US. One hundred and eighty one years later, Deere still works closely with farmers across the world. The company was therefore at the centre of the storm triggered by the ‘trade war’ between Trump and Xi Jinping.

First there were threats of import tariffs on agricultural products and then on steel. The former would affect Deere’s client base and the latter its manufacturing costs. Although we do not yet know how this ‘trade war’ will end, we continue to believe in Deere’s long-term proposition.

In addition to the movements in the market, in April we acquired a new position in the UK’s Croda International. This company produces and sells ingredients in 37 countries and employs 4,300 people. Croda operates in three segments: personal care, life sciences and performance technologies.

The market for ingredients is stable and growing. The competitive landscape has remained virtually unchanged for many years. This is due to the high entry barriers in the shape of supply chain relationships, customer relationships, knowledge and patented products. Moreover, regulation is becoming ever stricter, which makes complicates things for new players.

Croda distinguishes itself in this market by focusing on specific niche applications and a sustainable proposition. In contrast to its competitors, Croda obtains over 60% of its raw materials from natural sources. In doing so it actively works together with producers (e.g. farmers). This has helped to make Croda a preferred supplier in the fast-growing personal care market. Consumers are increasingly demanding products made from organic materials.

In the life sciences segment, Croda’s sustainable proposition concentrates mainly on the treatment of seeds and crop protection. Offering farmers organic alternatives for protecting their seeds and crops is quickly enabling Croda to make a name for itself.

We believe that Croda is a good example of a sustainable growth leader. The markets in which Croda operates are undergoing structural growth, boosted by long-term trends. Croda responds to these in a sustainable manner. We see replacing chemicals with organic materials in food and cosmetics as a positive contribution to society.


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 2018-04-30 (rebased)

No chart data available

Performance per 2018-04-30

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  Fund Benchmark
1 month 2.5 % 3.0 %
3 months -1.8 % -2.2 %
This year -0.3 % -0.8 %
2015 2.8 % 10.4 %
2016 16.7 % 10.7 %
2017 6.1 % 7.5 %
3 years (on annual basis) i 3.8 % 4.9 %
Since inception (on annual basis) i 8.8 % 12.1 %
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. 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 2018-04-30

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  3 years Since inception
Maximum drawdown i -14.32 % -14.32 %
Tracking error i 3.55 % 3.55 %
Information ratio i -0.30 -0.93
Beta i 0.90 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 (2018-04-30)

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  Contribution i Performance i
LHC Group 0.29 % 23.07 %
Booking Holdings 0.18 % 6.57 %
Marine Harvest 0.17 % 10.83 %
Sysco 0.16 % 6.80 %
Vodafone Group 0.16 % 8.79 %

Bottom 5 contribution (2018-04-30)

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  Contribution i Performance i
Deere & Company -0.31 % -11.26 %
Applied Materials -0.25 % -9.27 %
Taiwan Semiconductor Manufacturing (US) -0.24 % -10.61 %
Kion Group -0.24 % -8.50 %
Allegion -0.18 % -7.89 %

Geographic allocation (2018-04-30)

51.0 %
United States
9.8 %
United Kingdom
7.6 %
Germany
6.3 %
Netherlands
4.4 %
Ireland
4.1 %
France
3.3 %
Switzerland
2.3 %
Taiwan
1.7 %
Norway
1.6 %
Japan
1.3 %
Sweden
1.2 %
Spain
2.6 %
NoMatchingBucket
2.8 %
Cash
Totaal
100 %

Top 10 holdings (2018-04-30)

3.3 %
Alphabet Class C
3.2 %
Estee Lauder
3.1 %
Microsoft
2.8 %
JPMorgan Chase & Co
2.8 %
Applied Materials
2.8 %
Booking Holdings
2.8 %
Nike Inc Class B
2.7 %
Mastercard
2.7 %
AstraZeneca
2.7 %
Cisco
Totaal
28.9 %

Sector allocation (2018-04-30)

24.9 %
Consumentengoederen
21.6 %
Financiële waarden
16.4 %
Technologie
12.2 %
Gezondheidszorg
10.0 %
Industriële waarden
7.1 %
Basismaterialen
2.8 %
Consumentendiensten
2.8 %
Overig
2.1 %
Telecommunicatie
1.0 %
Nutsbedrijven
Totaal
101 %
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 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.