Kempen Sustainable Global High Dividend Fund N

Profile

Kempen Sustainable Global High Dividend Fund (KSGHDF) offers a diversified portfolio of listed companies worldwide with an attractive dividend yield which comply with strict sustainability criteria. The portfolio contains around 55 investments. The environmental, social and governance (ESG) criteria are incorporated in the investment process. Investments in KSGHDF 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 minimizes or excludes investments in companies involved in controversial activities such as alcohol coal production and adult entertainment or have exposure to severe ESG controversies. KSGHDF integrates ESG factors in its investment process and aims to select companies that are able to manage their ESG risks and opportunities. KSGHDF strives to select investments with the focus on cash flow generation, healthy capital allocation and an attractive valuation.

The primary objective of KSGHDF is to achieve a structurally better long-term return, comprising capital gains plus net dividends, than the Morningstar Developed Markets Dividend Yield > 3% NR EUR Index.

KSGHDF pays out dividend on a quarterly basis and aims to pay all the received net dividends to the shareholders.

Management team

Joris Franssen, Luc Plouvier, Marius Bakker, Robert van den Barselaar, Reineke Davidsz, Roderick van Zuylen

Performance per 2022-08-31 (rebased)

No chart data available

Performance per 2022-08-31

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  Fund Benchmark
1 month -3.1 % -2.0 %
3 months -3.8 % -4.0 %
This year -3.8 % 7.2 %
2021 24.5 % 28.2 %
1 year (on annual basis) 1.3 % 14.5 %
Since inception (on annual basis) i 11.8 % 21.7 %
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 For the calculation of the performance figures a deviant net asset value (NAV) is used. The NAV is calculated based on the closing prices of the fund investments per end of the month, in contrast of the original NAV issued, that partly is calculated based on the closing prices of the end of the month (North America) and calculated based on ‘snapshots’ prices of the first business day of the following month (Asian and Pacific investments). The deviating NAV is used for better comparison with the benchmark that is also calculated based on the closing prices of the investments.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 139.54 M 2022-08-31
Share class size
EUR 1.05 M 2022-08-31
Number of shares
37,307 2022-08-31
Net Asset Value
EUR 27.26 2022-10-05
Transaction price
EUR 27.33 2022-10-05

Fund characteristics per 2022-08-31

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  Fund Benchmark
Number of holdings 52
Dividend yield i 4.76 %
Weighted average market capitalization i EUR 42,194 M
P/E ratio i 9.58
Active share i 91.09 %
Kempen Sustainable Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Developments per 2022-08-31

August was a weak month for equities. Investors are more and more convinced that the global economy is in a recession or is heading towards one. In light of this slowdown, the general expectation was that central banks would reduce the speed at which interest rates are raised. Comments by central banks, most notably the Fed, clearly indicate that fighting inflation is on top of the priority list at the moment. Curbing inflation by increasing interest rates will further increase the possibility of a recession. Rising rates, lower growth, and still high inflation is a combination that makes investors more cautious on equities. Within this negative environment, KSGDHF outperformed the broader market. KSGHDF modestly underperformed the style index (Morningstar Developed Markets Dividend Yield > 3% Index). This is partially driven by the strong performance of energy-related stocks. As a result of sustainability considerations, the overall energy exposure of KSGHDF is lower than that of the dividend index.

The sector that contributed most to the absolute performance of KSGHDF was the energy sector. Driven by higher energy prices, stocks like Repsol and Technip Energies performed well. The communication services sector detracted most from the absolute performance of KSGHDF (WPP did poorly). Healthcare contributed most to the relative performance (Cardinal Health). The consumer discretionary sector detracted most from the relative performance of KSGHDF. The downturn in the more cyclical consumer stocks was driven by recession fears, rising energy prices, and inflationary pressures.

One of the largest contributors was Cardinal Health (+20% in August). Cardinal Health is an American company that focuses mainly on the distribution of pharmaceutical products. A part of the business is also involved with manufacturing, sourcing and distribution of branded and private label surgical and laboratory products. This division is loss-making at the moment. Recently, Elliott Advisors acquired a stake in Cardinal Health. This activist shareholder has been able to appoint 5 of the 11 board members. This provides Elliott with substantial power to change the strategic direction of the company. There are two obvious ways in which the activist can change the value of the company. The first way is to sell the loss-making medical division. Based on a recent transaction of a similar company, the potential price of Cardinal’s medical division could well be in excess of Cardinal’s market value. The second way to change the company for the better is to reorganize the distribution business. If Cardinal can improve its below average margins towards the margins that are achieved by direct peers, substantial value is created. In anticipation of a strong uplift in earnings, the shares have moved up substantially. Despite the strong price performance in August, the shares trade at 12 times expected 2023 earnings. The shares provide a dividend yield of around 3%.

One of the detractors from KSGHDF’s performance was Taylor Wimpey, declining 17%. Taylor Wimpey is one of the largest housebuilders in the UK by volume. There are three negatives that are driving the disappointing share price performance, which are inflation, rising interest rates, and deteriorating consumer confidence. The housebuilders have successfully battled with inflation for a couple of months now as building materials like cement, bricks, and wood have become more expensive. So far, most of the cost inflation could be passed on to the home buyers. However, investors are increasingly worried that consumers will see their budgets squeezed by higher cost of living (e.g. food and energy) and higher interest rates. We believe that the demand/supply balance in the UK housing market remains healthy, which creates a strong pricing tailwind for UK homebuilders. Recent company results were reassuring, and Taylor Wimpey’s 2022 profit guidance was raised. Both price/earnings ratio (6 times expected 2023 earnings) and dividend yield (~10%) indicate that the shares are offering good value at current levels.

Portfolio activity over August was limited. In July we started a position in Ferguson. This position was financed by selling our position in MSC Industrial Direct. Both companies are distributors. However, Ferguson has a better competitive position than MSCI Industrial Direct. This was not reflected in the share price.

KSGHDF combines stock selection, an attractive dividend yield with strict sustainability criteria. We exclude companies with severe controversies or controversial activities. We take responsibility as an active manager to engage with the companies we invest in to encourage positive change. Furthermore, we integrate ESG opportunities and risks in our valuation model making the ESG value transparent. KSGHDF has the Towards Sustainability logo and 5 Globes by Morningstar, important recognitions of the high ESG standards of the strategy. We currently expect a dividend yield of around 5.0% for KSGHDF. This number is based on the consensus estimate of dividends paid out over the next 12 months. The valuation dispersion between, and within regions and sectors remains at a very high level. We are still able to find companies that are cash generative, have market leading positions and embrace and benefit from ESG trends. These companies are definitely not priced for that and are in our view a very interesting investments both in relative and absolute terms. In summary, the current environment offers the opportunity to buy a well-diversified portfolio with solid earnings power and an attractive ESG profile at an undemanding valuation.

Kempen Sustainable Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Performance per 2022-08-31 (rebased)

No chart data available

Performance per 2022-08-31

Slide to see more
  Fund Benchmark
1 month -3.1 % -2.0 %
3 months -3.8 % -4.0 %
This year -3.8 % 7.2 %
2021 24.5 % 28.2 %
1 year (on annual basis) 1.3 % 14.5 %
Since inception (on annual basis) i 11.8 % 21.7 %
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 For the calculation of the performance figures a deviant net asset value (NAV) is used. The NAV is calculated based on the closing prices of the fund investments per end of the month, in contrast of the original NAV issued, that partly is calculated based on the closing prices of the end of the month (North America) and calculated based on ‘snapshots’ prices of the first business day of the following month (Asian and Pacific investments). The deviating NAV is used for better comparison with the benchmark that is also calculated based on the closing prices of the investments.

Dividends

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Distributing
Yes
Last dividend
EUR 0.30
Ex-date last dividend
2022-08-05
Number of distributions per year
4
Dividend calendar
Kempen Sustainable Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Top 5 contribution (2022-08-31)

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  Contribution i Performance i
Cardinal Health 0.44 % 20.40 %
Yamaha Motor 0.21 % 10.80 %
Technip Energies 0.16 % 8.20 %
Gilead Sciences 0.14 % 7.72 %
Repsol 0.12 % 7.09 %

Bottom 5 contribution (2022-08-31)

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  Contribution i Performance i
Taylor Wimpey -0.53 % -17.38 %
WPP -0.39 % -18.33 %
GSK -0.35 % -22.94 %
Hennes & Mauritz B -0.33 % -16.50 %
National Grid -0.24 % -7.62 %

Geographic allocation (2022-08-31)

26.7 %
United States
15.8 %
United Kingdom
8.4 %
Japan
5.8 %
Netherlands
5.6 %
Germany
5.1 %
Canada
3.9 %
Spain
3.9 %
France
3.7 %
Sweden
3.1 %
Singapore
2.4 %
Taiwan
2.2 %
Austria
2.1 %
Bermuda
2.0 %
Portugal
9.4 %
Other
Total
100 %

Top 10 holdings (2022-08-31)

3.2 %
Bridgestone
2.9 %
National Grid
2.6 %
Taylor Wimpey
2.5 %
Cardinal Health
2.4 %
Lite-On Technology
2.3 %
Huntington Bancshares
2.2 %
Yamaha Motor
2.2 %
BAWAG Group
2.2 %
Sysco
2.1 %
Cisco
Total
24.6 %

Sector allocation (2022-08-31)

22.9 %
Financials
13.4 %
Telecommunications
11.0 %
Industrials
10.9 %
Consumer Discretionary
10.3 %
Consumer Staples
9.5 %
Health Care
5.6 %
Technology
5.0 %
Utilities
4.1 %
Energy
3.0 %
Real estate
3.0 %
Basic Materials
1.2 %
Other
Total
100 %
Kempen Sustainable Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Environmental and/or social characteristics promoted

The Kempen Sustainable Global High Dividend Fund (the “Fund”) falls under the scope of article 8 of the SFDR which means that the Fund promotes environmental and/or social characteristics. While it does not have as its objective a sustainable investment, it will have a minimum proportion of the benchmark level of sustainable investments. The Fund considers principle adverse impact on sustainability factors.

The Fund promotes environmental characteristics related to:
• climate change mitigation and climate change adaptation in line with the Paris Climate Agreement;
• the protection of biodiversity and ecosystems;
• the transition to a circular economy.
The Fund promotes social characteristics related to:
• decent work;
• adequate living standards and wellbeing for end-users;
• other social topics such as gender equality and broader diversity matters.

The environmental characteristics promoted by the Fund seek to contribute to the achievement of the climate goals of the Paris Agreement and the National Climate Agreement of the Netherlands (‘Klimaatakkoord’). This decarbonization pathway encompasses short-term (2025) objectives, a mid-term (2030) ambition and a long-term commitment to be net zero by 2050. Although there has been no index designated as a reference benchmark, by 2025 the Fund aims to have a carbon intensity that is below the EU Climate Transition Benchmark (EU CTB) pathway. This pathway assumes a carbon intensity that is 30% lower than the Fund's relevant benchmark in 2019 with a subsequent 7% annual reduction.

Fund carbon emission targets

ESG Investment process

The promotion of environmental and/or social characteristics is achieved through the consistent implementation of the Funds ESG policy. The ESG policy is fully implemented in our strategy’s investment process across the four relevant pillars of ESG pillars: Exclusion, ESG integration, Active Ownership and Positive Impact.

In the investment process we assess the ESG profile of a company. We look at each company on a case-by-case basis, taking into account material risks in a given industry in combination with the company’s respective risk exposure, practices and disclosure. This includes an assessment of good governance practices. The investee companies are rated for governance aspects using external research as well as making internal assessments. Furthermore, we look into the company’s exposure to past controversies and future ESG opportunities. These opportunities and risks are integrated in our valuation model and ESG value is made transparent. We apply adequate due diligence measures when selecting the assets and such due diligence measures take into account ESG related risks as it could help to enhance long-term risk adjusted returns for investors, in accordance with the investment objectives of the Fund.

Exclusion

The Fund excludes companies through the application of strict exclusion criteria. These take into account international standards, such as the UN Global Compact framework, the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles for Business and Human Rights, and our Principles for Responsible Investment commitments. The Fund applies additional exclusion criteria based on product involvement and business conduct.

Key figures

  Kempen criteria Additional criteria
Business conduct
Human Rights
Labour
Environment
Anti Corruption
Product involvement
Controversial Weapons
Tobacco
Thermal Coal
Tar Sands
Adult Entertainment
Alcohol
Animal Welfare & GMO
Gambling
Power Generation Nuclear
Power Generation Carbon Intensive
(Un)conventional Oil & Gas Extraction
Weaponry
Kempen Sustainable Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

 

SWING FACTORS

An overview of the current swing factors are available here.

Ongoing charges

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Management fee i
0.630 %
Service fee i
0.20 %
Expected ongoing charges i
0.83%
Ongoing charges last financial year i
0.83 %
The ongoing charges figure of the last financial year relates to 2020/2021.

The service fee is determined annually on basis of the net asset value as of the last day of the previous financial year:
< or equal to EUR 200 million: 0.20%
Between EUR 200 million and EUR 700 million: 0.15%
>EUR 700 million: 0.10%
Kempen Sustainable Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Share class details

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Share class
N
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
Morningstar Developed Markets Dividend Yield > 3% NR EUR Index
Investment category
High Dividend Equity
Inception date
2021-01-18
May be offered to all investors in
The Netherlands
UCITS status i
Yes
Status
Open-end i
Base currency
EUR
Share class currency
EUR
Administrator
BNP Paribas Securities Services S.C.A., Amsterdam branch
Management company
Kempen Capital Management N.V.
Depositary and custodian
BNP Paribas Securities Services S.C.A., Amsterdam branch

Tradability

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Listed
yes, listed on the NAV Trading Facility of Euronext
ISIN i
NL0014926404
Kempen Sustainable Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.
Kempen Sustainable Global High Dividend Fund (the “Sub-Fund”) is a sub-fund of Kempen Umbrella Fund I NV (the “Fund”). Kempen Capital Management N.V. (KCM) is the management company of the Fund. KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The Sub-Fund is registered under the license of KCM at the Dutch Authority for the Financial Markets (AFM).

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document (available in Dutch) and the prospectus (available in English). These documents are available on the website of KCM (www.kempen.com/en/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.