Kempen (Lux) Global High Dividend Fund - Class ZJ

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. Shares in class ZJ are only available for distributors selected by the administrator, who place orders on behalf of their clients.

Management team

Jorik van den Bos, Joris Franssen, Joost de Graaf, Dimitri Willems, Luc Plouvier, Marius Bakker

Performance per 2021-03-31 (rebased)

No chart data available

Performance per 2021-03-31

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  Fund Benchmark
1 month 7.3 % 6.7 %
3 months 15.3 % 9.2 %
This year 15.3 % 9.2 %
2018 -6.2 % -11.4 %
2019 20.2 % 30.0 %
2020 -9.9 % 6.3 %
1 year (on annual basis) 47.0 % 43.8 %
Since inception (on annual basis) i 6.3 % 11.9 %
Performance is shown after deduction of ongoing charges. 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 386.33 M 2021-03-31
Share class size
EUR 58.25 M 2021-03-31
Number of shares
54,203 2021-03-31
Net Asset Value i
EUR 1,086.73 2021-04-16
Turnover rate
45.22 %
The turnover rate figure is per the end of the financial year of the fund and will be updated once a year.

Fund characteristics per 2021-03-31

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  Fund Benchmark
Number of holdings 88 1586
Dividend yield i 3.87 % 1.71 %
Weighted average market capitalization i EUR 47,879 M EUR 270,116 M
P/E ratio i 12.05
Active share i 94.26 %
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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Developments per 2021-03-31

The positive sentiment in the financial markets and the rotation towards value equities that started in November 2020 with the announcement of a working COVID vaccine, has continued in 2021. This trend has so far benefitted the Fund, as March was another strong month for the Fund both in absolute terms and compared to the broader market (as measured by the MSCI World Index). The market remains optimistic that during this year economies will normalize as an increasing amount of people receive a COVID vaccine. This despite the more negative short-term news that in particular many European countries were renewing lockdown measures due to an increasing number of infections. Another trend supporting equity markets is the increased amount of new retail investors that are starting to invest. Reasons are the lack of investment alternatives and less opportunities to spend money on other items during the COVID crisis.

Also in March value stocks outperformed growth stocks, which contributed to the relative outperformance of the Fund. Both sector allocation and stock selection were positive. More than a third of the holdings in the Fund gained over 10% in March. Stock selection within healthcare was strong as one the best performers in the Fund was Cardinal Health. The company is a global, integrated healthcare services and products provider, offering customized solutions for hospitals, health systems, pharmacies, and clinical laboratories worldwide. In February, the company already reported better than expected quarterly results and it slightly upgraded its full-year guidance. Cardinal also repeated its capital allocation priorities: prioritize investment in the business, maintain a strong balance sheet and return cash to shareholders. Later in March, the company announced the planned sale of its Cordis business (cardiology and endovascular devices), which has been a difficult business for Cardinal since it was acquired in 2015. Also stock selection within communication services was strong as South African telecom company MTN gained sharply. Despite the COVID crisis, MTN delivered strong free cash flow growth in 2020 driven by data growth. Furthermore, the company announced it wants to unlock asset value from tower sales and at a later stage its fiber and fintech assets.

We implemented the quarterly rebalance this month. We sold ten of our positions completely, while adding four new investments to the portfolio. The main reason behind most of the disposals was a very strong share price performance. As a result of that, the valuation and dividend yield were not attractive anymore. Examples were Denso Corp, ABB and Novatek Microelectronics. The new holdings added to the portfolio were Royal Bank of Canada, Ahold, Yamaha Motor and Taylor Whimpey. These shares offer an attractive valuation and the prospects of dividend growth. Yamaha Motor is a Japanese manufacturer of motorcycles and marine engines. Land mobility is 2/3 of revenues and marine is around 20%. In both segments Yamaha has a strong market positions. Based on our conservative over the cycle margins, the shares have an attractive valuation, a very strong balance sheet and the prospects for the company are good.

Over the past few years, the equity market has favored companies with short-term earnings predictability rather than look at the potential to add value over the cycle. Given the uncertain outlook, part of that short-termism was certainly justified. This has resulted in a large valuation gap in the market as a handful of well-known names appear priced for perfection, while others look priced for a deep depression. We agree that several of those ‘quality’ companies were an attractive proposition, either because of their defensive nature or a long-term growth opportunity regardless of the current economic situation. However, in our view even the best company is not a good investment at any price. Since November last year, the valuation gap slightly narrowed as the vaccine greatly raised the odds of the economic situation normalizing in 2021. When the situation normalizes further this should be very positive for both the absolute and relative performance of the Fund. The first signs of this have continued so far this year.

We currently expect a forward dividend yield of around 4% for the Fund. This number is indicative and based on current figures with an outlook filled with uncertainties and therefore based on conservative estimates. Based on those estimates we foresee a 5 to 10% increase in dividends in 2021.

The Fund still trades at a sharp discount versus the market (the average valuation of all the holdings in the Fund). Historically, this has led to a strong relative performance on the medium-term. Also, the absolute valuation of the strategy is compelling. We continue to focus on attractively valued companies, that have good capital discipline and generate positive cash flows through the cycle. In summary, the current environment offers the opportunity to buy a well-diversified portfolio with solid earnings power at an attractive valuation. In addition, ESG (Environmental, Social and Governance) is fully incorporated in our investment process. A positive ESG development can add value to the investment case.

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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Performance per 2021-03-31 (rebased)

No chart data available

Performance per 2021-03-31

Slide to see more
  Fund Benchmark
1 month 7.3 % 6.7 %
3 months 15.3 % 9.2 %
This year 15.3 % 9.2 %
2018 -6.2 % -11.4 %
2019 20.2 % 30.0 %
2020 -9.9 % 6.3 %
1 year (on annual basis) 47.0 % 43.8 %
Since inception (on annual basis) i 6.3 % 11.9 %
Performance is shown after deduction of ongoing charges. 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 8.00
Ex-date last dividend
2021-03-18
Number of distributions per year
4
Dividend calendar

Risk analysis (ex post) per 2021-03-31

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  Since inception
Maximum drawdown i 0.00 %
Tracking error i 0.00 %
Beta i 0.00
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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Top 5 contribution (2021-03-31)

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  Contribution i Performance i
MTN Group 0.33 % 26.31 %
Asustek Computer 0.31 % 23.36 %
Cardinal Health 0.30 % 22.75 %
Cisco 0.27 % 19.02 %
ING Groep 0.20 % 15.41 %
Percentages shown for contributions and performances are based on Euros.

Bottom 5 contribution (2021-03-31)

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  Contribution i Performance i
CNOOC -0.07 % -9.43 %
Wood Group -0.06 % -8.12 %
Wartsila OYJ -0.04 % -5.07 %
Sun Hung Kai Properties -0.04 % -1.91 %
China Mobile -0.03 % -2.23 %
Percentages shown for contributions and performances are based on Euros.

Geographic allocation (2021-03-31)

23.2 %
United States
11.0 %
United Kingdom
7.0 %
France
5.9 %
Japan
5.2 %
Netherlands
4.5 %
Hong Kong
4.2 %
Germany
4.1 %
Taiwan
3.8 %
Korea Republic Of
3.5 %
Canada
3.1 %
Cash
2.8 %
Portugal
2.6 %
Spain
2.2 %
Russia
2.0 %
Norway
2.0 %
Singapore
1.9 %
Sweden
1.6 %
Australia
1.3 %
South Africa
1.3 %
Italy
1.3 %
Switzerland
1.2 %
Bermuda
0.7 %
Finland
0.7 %
Austria
0.6 %
Philippines
2.0 %
Other
Total
100 %

Top 10 holdings (2021-03-31)

1.5 %
Allianz
1.5 %
Sanofi
1.5 %
Unilever PLC
1.5 %
Danone
1.5 %
GlaxoSmithKline
1.5 %
Pepsico
1.5 %
Royal Bank of Canada
1.5 %
Cisco
1.5 %
Galp Energia
1.5 %
Omnicom
Total
15.0 %

Sector allocation (2021-03-31)

29.7 %
Financials
10.6 %
Consumer goods
9.8 %
Telecommunications
9.6 %
Utilities
8.7 %
Oil & gas
7.1 %
Health Care
6.2 %
Technology
5.4 %
Industrials
5.4 %
Industrials
5.4 %
Industrials
5.4 %
Industrials
5.4 %
Industrials
5.4 %
Industrials
5.3 %
Consumer services
4.2 %
Basic Materials
3.5 %
Other
Total
127 %
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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

 

SWING FACTORS

An overview of the current swing factors are available here.

Ongoing charges

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Service fee i
0.20 %
Taxe d'abonnement i
0.01 %
Expected ongoing charges i
0,21 %
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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Share class details

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Share class
ZJ
Investor type
Institutional
Distributing
Yes
Benchmark i
MSCI World Total Return Net Index (calculated in Euro)
Investment category
High Dividend Equity
Universum
Global equities
Inception date
2018-09-03
Domicile
Luxembourg
May be offered to professional investors only in
Luxembourg, The Netherlands
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Management company
Kempen Capital Management N.V.
Depositary and custodian
J.P. Morgan Bank Luxembourg S.A.

Tradability

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Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
LU1816221482
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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.
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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.

Kempen's vision & mission

Kempen Capital Management is an asset manager that believes in stewardship and investment focusing on the long-term for the benefit of all stakeholders. Value creation is at the heart of the services we provide to our clients. We believe that being an engaged shareholder on environmental, social and governance (ESG) issues and retaining a long-term focus, is critical to helping our clients to preserve and create sustainable wealth that has positive real world impact and economic returns.

Kempen wide approach to responsible investment

We are committed to create sustainable alpha. The four pillars of our ESG-policy are:

  • ESG integration: Ensuring sustainability risks and opportunities are adequately considered in our investment analysis and processes.

  • Exclusion & avoidance: Not investing in companies involved in controversial activities or conduct.

  • Active ownership: Being responsible stewards of our clients’ capital and using our influence through engagement and voting to improve corporate behaviour on specific ESG issues and achieve positive change

  • Positive impact: Investing with an objective to achieve positive real world outcomes and impact, such as contributing to the UN Sustainable Development Goals.

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To put our mission and vision into practice we engage with our investee companies on a wide array of strategic, financial, and ESG topics. As an active owner we use our influence to improve our investee companies’ ESG performance.  This helps us address some of the most pressing and important sustainability issues facing business and the world. Our focus themes for engagement are: human rights, labour rights, climate change and governance.

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Through collaboration with other investors and industry think tanks we contribute to the development of principles and standards of corporate responsibility both at sector levels, as well as investee company level.

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Our full voting records are available here.

Climate change

As a long-term investor, we believe climate change represents a systemic risk facing the economy, society and environment. We want to consider the risks and opportunities this presents to our investments in the coming decades. We have therefore set a long-term commitment (2050), a mid-term ambition (2030) and short-term objectives (2025).

  • 2050 commitment: Net-zero investor.  Â
  • 2030 ambition: To align with a Paris Agreement pathway (listed and non-listed investments) and Dutch Klimaatakkoord.  Â
  • 2025 objectives: To align with a pathway towards achieving the Paris Agreement (listed investments) and Dutch Klimaatakkoord goals.[1]

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The Kempen climate change policy can be found here (under climate change policy).

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[1]We use carbon intensity as a metric to come to the pathway of net-zero emissions. As we care about the direction of travel and reduction of carbon emissions in the economy, it might be that the actual reducing trend may deviate from the suggested average trend line. The pathway is derived from the pathway of the EU Benchmarks.

OUR FUND APPROACH TO RESPONSIBLE INVESTMENT

Kempen’s ESG policy is fully implemented in our fund’s investment process across the three relevant pillars of: Exclusion, Integration and Active ownership.

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1. Exclusion

The fund follows the clear and transparent exclusion framework we have developed. According to the framework the fund currently excludes companies involved in the production of controversial weapons and tobacco. In addition, we exclude pure coal players and pure players involved in tar sands, as these activities have an adverse impact on climate change. Furthermore, the strategy avoids investments in companies that structurally violate ESG criteria, with no willingness to improve. In total 177 companies are excluded from the fund’s global equity universe.

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2. ESG integration

ESG criteria are an integral part of the investment process. The aim is to incorporate material ESG issues in our fundamental analysis. With regard to climate change, we prefer to invest in companies that integrate climate risks and opportunities into their organisation, and are able to move towards a low-carbon economy. This means that portfolio managers perform an in-depth analysis of ESG data and material ESG risks and reflect them in the assumptions used in the valuation assessment. For example, as demonstrated in the chart on the right side, the ESG impact forms part of our Earnings Power Value (EPV) valuation model.

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3. Active ownership

The aim of the engagements our fund participates in is to use our influence as a shareholder to encourage the companies we invest in to improve policies and practices in specific ESG issues. With regard to climate change, we engage generally and take a sector-specific approach for the most carbon-intensive companies and sectors (oil and gas, utilities), as these count for the largest part of the global carbon emissions. A successful engagement reduces the ESG risk and as a result unlocks value in the interest of our clients. In 2018 we held over 200 company engagements and voted at 104 shareholder meetings.

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In order to lay out our guiding investment principles, we send a “welcome letter” to most of the companies we invest in. In this letter, we explain to the company why we made the decision to invest and what our long-term expectations are, including those in the areas of social and environmental responsibilities and corporate governance.

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Our fund also believes in the strength of collaborative engagement. Through cooperation with other investors and fund managers, we can increase the leverage of our engagement activities. In 2018, for example, we participated in the CIO Exchange Collaboration on Energy transition and since last year we have been an active participant in the Climate Action 100+ initiative.

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Our engagement focus is on: climate change and energy efficiency, and corporate governance. For example recent activities include:Â

  • Shell: We engaged with senior management to set carbon targets with success as Shell announced that it will link its scope 1,2 and 3 carbon targets to its remuneration. You can find the engagement factsheet here.

  • Severstal: We are monitoring Severstal’s health & safety efforts and encouraging the company to establish health & safety best practices that set an example to other Russian steel producers. As a result of the engagement, the company is working on a revised policy and process on labour. You can find the engagement factsheet here.

  • China Mobile: We have teamed up with another investor to engage with China Mobile. Our ultimate goal is to improve the company’s capital allocation as the company has a very inefficient balance sheet. To achieve this goal, it is in our view crucial that the Board becomes more independent.

Risks

For more information about the mid and long term risks associated with the investments:

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Although Kempen Capital Management N.V.’s information providers, including without limitation, MSCI ESG Research LLC and its affiliates (the “ESG Parties”), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness of any data herein. None of the ESG Parties makes any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

ESG Report
Screening MSCI ESG Research
Screening MSCI ESG Research
UN global impact
ESG integration in the EPV valuation model
ESG integration in the EPV valuation model
Bron EN
disclaimer
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 Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered with the Dutch Authority for the Financial Markets (AFM) under the license of the Fund.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch, English and several other languages, see website) and the prospectus (available in English). These documents of the Fund are available at the registered office of the Fund located at 6H, route de Trèves, L-2633 Senningerberg, Luxembourg and on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English.

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.