Kempen (Lux) Global High Dividend Fund - Class I

Profile

Kempen International Funds SICAV - Kempen (Lux) Global High Dividend Fund (the Fund) offers a diversified portfolio of listed companies worldwide with an expected dividend yield of 3.3% at the time the company is purchased for the first time. The portfolio contains around 100 investments, which are approximately equally weighted.

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.

Management team

Jorik van den Bos, Joris Franssen, Joost de Graaf, Dimitri Willems, Luc Plouvier, Floris Oliemans

Performance per 2017-12-31 (rebased)

No chart data available

Performance per 2017-12-31

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  Fund Benchmark
1 month 1.4 % 0.6 %
3 months 3.7 % 3.8 %
This year 8.7 % 7.5 %
2014 12.2 % 19.5 %
2015 6.8 % 10.4 %
2016 15.4 % 10.7 %
3 years (on annual basis) i 10.3 % 9.5 %
5 years (on annual basis) i 10.9 % 13.7 %
Since inception (on annual basis) i 10.1 % 11.2 %
Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future. Due to a bankholiday on 1 November 2017 a deviating Net Asset Value (NAV) is used for the calculation of the performance figures. This NAV is calculated based on closing prices of the Fund investments.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 433.20 M 2017-12-31
Number of shares
4,860 2017-12-31
Net Asset Value i
EUR 1,995.28 2018-01-18
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Fund characteristics per 2017-12-31

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  Fund Benchmark
Number of holdings 92 1651
Dividend yield i 4.54 % 2.24 %
Weighted average market capitalization i EUR 44,717 M EUR 113,253 M
P/E ratio i 13.48 20.10
Active share i 92.32 %
Kempen (Lux) Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Market developments per 2017-12-31

In December, global equity markets finished up the month in positive territory, capping up off a strong year for equity markets. In a strong equity market the Fund outperformed the market. This was the case for December and the year as a whole. We came out well ahead of the MSCI World Index in 2017, a year where dividend stocks underperformed the market.

As was the case for 2017 as a whole, stock selection was the predominant driver of the outperformance for the Fund in December. Allocation added slightly to the performance for the month, but detracted over the past twelve months. In terms of stock selection for the month, our selection was especially strong in the materials and telecom sectors. Fortescue Metals, Rio Tinto and Novolipetsk Steel all profited from a rebound in iron ore prices as well as improved momentum in the Chinese economy. In the telecom sector, the African telecommunications group, MTN group performed strongly, on limited company specific news. The weakest performer for the month was John Wood Group, an oil services company. John Wood Group is still seeing relatively muted end demand for oil services, despite a rebound in oil prices. We believe the continued strong oil prices should help demand for oil services over the next few years, helping the earnings profile of companies including John Wood Group.

Portfolio developments per 2017-12-31

In December we completed our last quarterly rebalance. We sold 14 companies and added nine companies. We sold the following companies: Atlantia, ABB, Philips Lighting, FNF group, Life Storage, GM, Qualcomm, Abbvie, Telus, Primax Electronics, HSBC, BAT, Imperial Tobacco, HollyFrontier and Exelon. These companies were sold either on valuation grounds, or due to the stocks crossing our dividend threshold. The large number of sales this quarter was necessitated as the rising markets significantly reduced the expected returns for a number of our holdings. After this quarter we no longer have any exposure to tobacco related companies.

We purchased the following companies during the quarter:
H&M Group: The large Scandinavian retailer. We believe the value proposition of H&M is still strong and that margins are likely to recover from current weak levels.
Omnicom & Publicis: We purchased two advertising agencies. We believe market worries about the decline of advertising agencies are overdone, and that this has created an attractive entry point for what has historically been an industry with excellent return characteristics.
Simon Property Group: An operator of high quality malls in the United States. We believe high quality malls will continue to do well despite the increase in e-commerce.
China Mobile: The dominant Chinese telecom operator. China mobile has a net cash balance sheet, trades at an attractive multiple and is expected to show strong data growth which should support profitability in the future.
Merck: An attractively valued pharmaceutical company
Lloyds Banking Group: Well managed and very attractively valued UK banking group. Residual claims are winding down, which should help improve the earnings quality going forward.
Tapestry: Owner of various luxury brands including Coach and Kate Spade. Tapestry has repositioned itself towards the high end of the market, which we believe will aid margins going forward.
Exxon Mobil: Best in class oil operator that is attractively valued on its normalized earnings power and should profit from the rebound in oil prices.

Equity markets as a whole are expensive, with the US being an extreme example. It has become increasingly difficult to find investments in the United States that offer both safety of principal and an attractive rate of return. Market sentiment is extremely positive, as indicated by record highs in equity markets and speculative behavior in cryptocurrencies. This environment makes finding prudent investments difficult.

Our focus is on finding companies with sustainable dividends that can be bought at a discount to our estimate of intrinsic value. We base our estimate on the Earnings Power Value (EPV) framework of the Columbia Business School. EPV allows us to separate the three valuation components: asset value, earnings power and growth value. This framework improves our ability to analyze what we are paying for, and gives insight into whether a stock is priced with a margin of safety.

The Fund now has a forward yield of around 4.8%. Our portfolio trades at a significant discount to market multiples. We remain optimistic on the dividend growth prospects for 2018.
Kempen (Lux) Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Performance per 2017-12-31 (rebased)

No chart data available

Performance per 2017-12-31

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  Fund Benchmark
1 month 1.4 % 0.6 %
3 months 3.7 % 3.8 %
This year 8.7 % 7.5 %
2014 12.2 % 19.5 %
2015 6.8 % 10.4 %
2016 15.4 % 10.7 %
3 years (on annual basis) i 10.3 % 9.5 %
5 years (on annual basis) i 10.9 % 13.7 %
Since inception (on annual basis) i 10.1 % 11.2 %
Performance is shown after deduction of ongoing charges. The value of your investments may fluctuate. Past performance provides no guarantee for the future. Due to a bankholiday on 1 November 2017 a deviating Net Asset Value (NAV) is used for the calculation of the performance figures. This NAV is calculated based on closing prices of the Fund investments.

Dividends

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Distributing
No

Risk analysis (ex post) per 2017-12-31

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  3 years Since inception
Maximum drawdown i -11.64 % -11.64 %
Tracking error i 3.48 % 3.88 %
Information ratio i 0.21 -0.30
Beta i 0.89 0.84
Kempen (Lux) Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Top 5 contribution (2017-12-31)

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  Contribution i Performance i
MTN Group 0.18 % 15.61 %
Dixons Carphone 0.16 % 26.31 %
Rio Tinto 0.14 % 11.74 %
Resona 0.13 % 11.43 %
Fortescue Metals Group 0.10 % 8.65 %
Percentages shown for contributions and performances are based on Euros.

Bottom 5 contribution (2017-12-31)

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  Contribution i Performance i
Hennes & Mauritz -B- -0.15 % -12.73 %
Wood Group -0.13 % -10.83 %
Nokia -0.08 % -7.45 %
Centrica -0.07 % -5.95 %
Enel -0.07 % -5.96 %
Percentages shown for contributions and performances are based on Euros.

Geographic allocation (2017-12-31)

19.6 %
United States
13.5 %
United Kingdom
7.4 %
Japan
6.3 %
Netherlands
5.5 %
Canada
5.4 %
Hong Kong
3.5 %
Switzerland
3.5 %
France
3.2 %
USSR
3.2 %
Taiwan
2.7 %
Korea Republic Of
2.4 %
Australia
2.3 %
Norway
2.3 %
Portugal
2.3 %
Italy
2.3 %
Germany
2.2 %
Sweden
2.2 %
Luxembourg
1.5 %
Cash
1.4 %
South Africa
1.2 %
Brazil
1.2 %
Finland
0.7 %
Ireland
0.7 %
Philippines
0.7 %
New Zealand
0.6 %
Bermuda
0.6 %
Israel
0.6 %
Belgium
Totaal
99 %

Top 10 holdings (2017-12-31)

2.2 %
JP Morgan Liquidity Funds US Dollar
1.5 %
LyondellBasell Industries
1.5 %
Verizon Communications
1.5 %
SK Telecom (US)
1.4 %
MTN Group
1.3 %
Resona
1.3 %
Valero Energy
1.3 %
Rio Tinto
1.3 %
Fortescue Metals Group
1.3 %
Potash Corp of Saskatchewan
Totaal
14.6 %

Sector allocation (2017-12-31)

31.8 %
Financials
14.3 %
Telecommunications
10.4 %
Oil & gas
8.2 %
Basic Materials
7.9 %
Consumer services
7.0 %
Utilities
6.3 %
Technology
6.1 %
Health Care
3.6 %
Consumer goods
2.5 %
Industrials
2.1 %
Other
Totaal
100 %
The cash position is included in ‘Other’.
Kempen (Lux) Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Ongoing charges

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Management fee i
0.70 %
Service fee i
0.20 %
Taxe d'abonnement i
0.01 %
Expected ongoing charges i
0,91 %

Other costs

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Upward swing factor i
0.25 %
Downward swing factor i
0.15 %
Kempen (Lux) Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

Share class details

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Share class
I i
Investor type
Institutional
Distributing
No
Benchmark i
MSCI World Total Return Net Index (calculated in Euro)
Investment category
High Dividend Equity
Universum
Global equities
Inception date
2010-12-15
Domicile
Luxembourg
May be offered to professional investors only in
Belgium, Finland, France, Germany, Italy, Luxembourg, Sweden, Switzerland, The Netherlands, United Kingdom
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Management company
Kempen Capital Management N.V.
Custodian
J.P. Morgan Bank Luxembourg S.A.
Morningstar rating â„¢
Morningstar Analyst rating
Silver

Tradability

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Minimum subscription
Initial subscription: €50,000, additional subscriptions: €10,000
Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU0427929855
Kempen (Lux) Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.
Kempen (Lux) Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.

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

  • ESG is integrated in our investment process.
  • Portfolio managers (PM's) have access to ESG research via the database from MSCI ESG Research and via FactSet.
  • Prior to investment, our PM's assess the ESG performance of the company. If material ESG concerns are identified, this can result in the decision to quantify the ESG risks into the investment model, to engage with a company or to avoid investment.
  • In case of engagement, the PM and the Responsible Investment Department will start a dialogue with the company. The aim of the engagement is to use our influence as a shareholder to encourage positive change.
  • During the quarterly re-balancing process the PM's monitor the ESG performance of the holdings.

Kempen (Lux) Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen International Funds SICAV (the “Fund”), domiciled in Luxembourg. This Fund is authorised in Luxembourg and is regulated by the Commission de Surveillance du Secteur Financier. Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as management company and regulated by The Netherlands Authority for the Financial Markets.

Paying agent and representative in Switzerland is RBC Investor Services Bank S.A., Esch-sur-Alzette, Zweigniederlassung Zürich, Badenerstrasse 567, P.O. Box 1292, 8048 Zürich. The Sub-Fund is registered with The Netherlands Authority for the Financial Markets under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents as well as annual report, semi-annual report and the articles of incorporation of the Fund are available free of charge at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg, at the offices of the representative in Switzerland and on the website of KCM (www.kempen.com/investmentfunds).

The Sub-Fund is registered for offering in a limited number of countries. The countries where the Sub-Fund is registered can be found on the website. The value of your investment may fluctuate. Past performance provides no guarantee for the future. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming units.