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 2018-08-31 (rebased)

No chart data available

Performance per 2018-08-31

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  Fund Benchmark
1 month 1.5 % 1.8 %
3 months 4.1 % 4.7 %
This year 7.3 % 8.2 %
2015 2.8 % 10.4 %
2016 16.7 % 10.7 %
2017 6.1 % 7.5 %
1 year (on annual basis) 16.0 % 15.5 %
3 years (on annual basis) i 10.3 % 10.5 %
Since inception (on annual basis) i 9.8 % 13.2 %
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 93.41 M 2018-08-31
Share class size
EUR 93.41 M 2018-08-31
Number of shares
1,286,137 2018-08-31
Net Asset Value i
EUR 72.33 2018-09-21
Transaction price i
EUR 72.51 2018-09-21
Morningstar rating â„¢

Fund characteristics per 2018-08-31

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  Fund Benchmark
Number of holdings 41 1642
Dividend yield i 2.00 % 2.28 %
Weighted average market capitalization i EUR 129,198 M EUR 146,647 M
P/E ratio i 21.81 17.94
Active share i 90.48 %
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 2018-08-31

The fund earned a return of 1.5% in August, against a return on the MSCI World Index of 1.8%. Over 2018 so far, the fund has earned a return of 7.3% compared to a return on the MSCI World Index of 8.2%.

The consumer staples, technology and healthcare sectors performed well in the portfolio, while the consumer discretionary, telecom and materials sectors contributed negatively.

The three companies with the largest contributions were: Cisco Systems, LHC Group and Sysco Corporation. Cisco Systems is global market leader in computer network equipment, mainly switches and routers. This equipment forms the core of the internet. Last year, Cisco launched a new generation of switches, the Catalyst 9000. The new systems chiefly sell well in the enterprise client segment. More than ever the product is a combination of hardware and software. The software enables Cisco’s customers to optimise use of their networks and provides excellent security options. Cisco’s products mean that it is well positioned at a time when cybersecurity is growing in importance and companies are having to do more and more to protect themselves. As Cisco increasingly sells its products more as a service, with income from subscriptions rather than one-off product sales (Software-as-a-Service or SaaS), it is also easier to predict revenue. We discussed this transition in detail during our recent meetings with management. Although the transition from product to subscription has a negative impact on revenue and profitability in the short term, we see this as the correct long-term strategy. LHC, a provider of home healthcare in the US, could profit from changing legislation. It could lead to LHC receiving more money for its services and at the same time reduce overall healthcare costs for society.

Applied Materials, Covestro and Vodafone were the largest negative outliers. Applied Materials, a manufacturer of machines for the semiconductor industry, cut its forecasts for the next few quarters. This led to speculation that the top of the cycle has been reached in this industry. The sector is also being affected by fears of a trade war. The semiconductor industry is one of the central sectors here and depends greatly on China and other countries in South East Asia for revenue and growth. Covestro is a leading manufacturer of high-tech polymer material. August saw price pressure on both MDI and TDI, two major products for Covestro.

No new positions were included in the fund in August. The positions in Sanofi, Prudential and Procter & Gamble were sold, further reducing the number of names in 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 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 2018-08-31 (rebased)

No chart data available

Performance per 2018-08-31

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  Fund Benchmark
1 month 1.5 % 1.8 %
3 months 4.1 % 4.7 %
This year 7.3 % 8.2 %
2015 2.8 % 10.4 %
2016 16.7 % 10.7 %
2017 6.1 % 7.5 %
1 year (on annual basis) 16.0 % 15.5 %
3 years (on annual basis) i 10.3 % 10.5 %
Since inception (on annual basis) i 9.8 % 13.2 %
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 2018-08-31

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  3 years Since inception
Maximum drawdown i -8.72 % -14.32 %
Tracking error i 3.13 % 3.45 %
Information ratio i -0.07 -0.99
Beta i 0.92 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 (2018-08-31)

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  Contribution i Performance i
Cisco 0.33 % 13.59 %
LHC Group 0.28 % 15.53 %
Sysco 0.28 % 11.92 %
Mastercard 0.28 % 9.46 %
Microsoft 0.23 % 6.95 %

Bottom 5 contribution (2018-08-31)

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  Contribution i Performance i
Applied Materials -0.33 % -10.61 %
Covestro -0.24 % -10.69 %
Vodafone Group -0.24 % -12.41 %
ING Groep -0.20 % -9.07 %
Valeo -0.14 % -6.90 %

Geographic allocation (2018-08-31)

51.7 %
United States
11.0 %
United Kingdom
8.0 %
Germany
5.3 %
Ireland
4.5 %
Netherlands
3.9 %
Switzerland
2.3 %
Taiwan
2.1 %
France
1.9 %
Norway
1.9 %
Japan
1.4 %
Spain
1.4 %
Denmark
2.6 %
Other
1.9 %
Cash
Totaal
100 %

Top 10 holdings (2018-08-31)

3.9 %
Alphabet Class A
3.6 %
Microsoft
3.2 %
Mastercard
3.0 %
JPMorgan Chase & Co
3.0 %
Estee Lauder
2.9 %
Blackrock
2.9 %
IQVIA Holdings
2.8 %
Cisco
2.8 %
Nike Inc Class B
2.8 %
Roche Holding
Totaal
31.0 %

Sector allocation (2018-08-31)

24.0 %
Consumer goods
19.6 %
Financials
17.8 %
Technology
15.2 %
Health Care
10.4 %
Industrials
6.9 %
Basic Materials
2.5 %
Consumer services
1.9 %
Other
1.8 %
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.