Kempen European High Dividend Fund N.V. - Class Y

Profile

Kempen European High Dividend Fund N.V. (KEHDF) offers a diversified portfolio of European listed companies with an above-average dividend yield at the time the company purchased for the first time. KEHDF invests in companies that are listed or do business in geographical Europe including Eastern Europe and Russia. The portfolio contains around 40 investments, which are approximately equally weighted. The environmental, social and governance (ESG) criteria are incorporated in the investment process.

KEHDF primarily aims to generate a better long-term total return than the MSCI Europe Total Return Index (net dividends reinvested), comprising capital gains plus net dividends. This index consists of about 500 companies in 15 countries.

KEHDF pays its dividend on a quarterly basis and aims to pay all the received net dividends to the shareholders. Share class Y will only be available for distributors who submit orders on behalf of their clients, and who have been selected by the management company.

Management team

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

Performance per 2022-05-31 (rebased)

No chart data available

Performance per 2022-05-31

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  Fund Benchmark
1 month 1.7 % -0.8 %
3 months 3.0 % -0.5 %
This year -0.7 % -6.6 %
2019 18.0 % 26.0 %
2020 -10.8 % -3.3 %
2021 24.4 % 25.1 %
1 year (on annual basis) 7.8 % 3.0 %
3 years (on annual basis) i 6.9 % 8.5 %
5 years (on annual basis) i 4.1 % 5.1 %
Since inception (on annual basis) i 2.2 % 2.2 %
The results shown of the periods before 20 July 2016, the inception date of Kempen European High Dividend Fund N.V. class Y, are those of Kempen European High Dividend Fund N.V. class N. 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 29 March 2018, in contrast of the original NAV issued, that partly is calculated based on the closing prices of 2 April 2018 (North America) and calculated based on ‘snapshots’ prices of 3 April 2018 (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. The dividend distribution of KEHDF (ex-date 01-08-2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.
More information can be found on the documents page of this fund

Key figures

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Total fund size
EUR 226.81 M 2022-05-31
Share class size
EUR 87.79 M 2022-05-31
Number of shares
12,304,088 2022-05-31
Net Asset Value i
EUR 6.65 2022-06-28
Transaction price i
EUR 6.65 2022-06-28
Morningstar rating â„¢
Morningstar Analyst rating
Neutral

Fund characteristics per 2022-05-31

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  Fund Benchmark
Number of holdings 48 428
Dividend yield i 4.44 % 2.87 %
Weighted average market capitalization i EUR 49,896 M EUR 86,341 M
P/E ratio i 9.58
Active share i 84.81 %
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The 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 2022-05-31

May was a positive month for KEHDF. In addition, the relative performance versus our investment universe ((Morningstar Developed Europe Dividend Yield > 2.5% Index) was slightly positive. KEHDF substantially outperformed the broader market index.

Besides strong stock selection, the relative performance versus the broader market index was also driven by a positive allocation effect. We hold a relatively sizable position in energy, a sector that was up more than 10% in May. Energy markets continue to be tight, and it does not look like that this situation is going to change any time soon. It was therefore no surprise that the energy sector contributed most to the absolute performance of KEHDF. For example, Shell and Equinor performed well. The healthcare sector detracted modestly from our absolute performance (Roche was down). The sector that added most to the relative performance was the consumer discretionary sector (Valeo and BMW performed well). The sector that detracted most from the relative performance was the communication services sector (WPP did poorly).

One of the best contributors was ING Group (+19% in May). ING reported better than expected earnings numbers. This was despite 800 million euro of Russia-related impairments. Investors were positively surprised by the announcement of nearly 900 million euro in dividends and nearly 400 million euro in share repurchases. These capital returns are approximately 3% on the current market capitalization. This shows that ING is in a strong financial position. Despite the run-up of the shares over the last couple of weeks, the shares still only trade at 8 times expected 2023 earnings.

One of the detractors from performance was WPP, declining 9%. WPP is one of the largest advertising agencies in the world. Investors are increasingly worried about a recession, which would hurt advertising spending. The results and comments by social media platform Snap Inc. (Snapchat) were much more negative than expected, and caused the shares to be down by more than 80% from their 52 week high. Also, new privacy measures by Apple make it harder for social media companies to use app-related data for targeted advertising. Many stocks of advertising-related companies came down in sympathy. However, we are optimistic about WPP’s future for two reasons. The first reason it that the company recently reported better than expected earnings and also raised its earnings guidance for the current year. The second reason is that WPP will be able to benefit from a more fragmented media landscape. I.e. if it becomes harder for companies to reach specific consumer groups, more help from advertising agencies is needed to reach the same consumers. The shares trade at only 9 times 2023 consensus earnings. The dividend yield of around 4% is also attractive.

In May we did not initiate any new positions. We also did not fully sell any positions.

We currently expect a dividend yield of around 5.2% for KEHDF. This number is based on the consensus estimate of dividends paid out over the next 12 months. Based on those estimates the annual growth in dividends for KEHDF will be 7%. KEHDF still trades at a strong discount versus the market (the average valuation of all the holdings in KEHDF versus the broader equity market). Historically, this has led to a strong relative performance in 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.

Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The 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 2022-05-31 (rebased)

No chart data available

Performance per 2022-05-31

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  Fund Benchmark
1 month 1.7 % -0.8 %
3 months 3.0 % -0.5 %
This year -0.7 % -6.6 %
2019 18.0 % 26.0 %
2020 -10.8 % -3.3 %
2021 24.4 % 25.1 %
1 year (on annual basis) 7.8 % 3.0 %
3 years (on annual basis) i 6.9 % 8.5 %
5 years (on annual basis) i 4.1 % 5.1 %
Since inception (on annual basis) i 2.2 % 2.2 %
The results shown of the periods before 20 July 2016, the inception date of Kempen European High Dividend Fund N.V. class Y, are those of Kempen European High Dividend Fund N.V. class N. 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 29 March 2018, in contrast of the original NAV issued, that partly is calculated based on the closing prices of 2 April 2018 (North America) and calculated based on ‘snapshots’ prices of 3 April 2018 (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. The dividend distribution of KEHDF (ex-date 01-08-2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.

Dividends

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Distributing
Yes
Last dividend
EUR 0.08
Ex-date last dividend
2022-05-27
Number of distributions per year
4
Dividend calendar
The dividend distribution of KEHDF (ex-date 01-08-2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.

Risk analysis (ex post) per 2022-05-31

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  3 years Since inception
Maximum drawdown i -29.35 % -38.92 %
Tracking error i 6.91 % 3.77 %
Information ratio i -0.24 -0.02
Beta i 1.13 0.96
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The 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 (2022-05-31)

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  Contribution i Performance i
ING Groep 0.46 % 18.13 %
Valeo 0.43 % 20.04 %
Equinor 0.31 % 10.92 %
BNP Paribas 0.25 % 14.37 %
Shell 0.25 % 8.99 %

Bottom 5 contribution (2022-05-31)

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  Contribution i Performance i
Roche Holding -0.22 % -10.18 %
WPP -0.22 % -9.68 %
Admiral -0.18 % -8.47 %
Telenet Group -0.18 % -7.98 %
RELX -0.17 % -6.25 %

Geographic allocation (2022-05-31)

28.9 %
United Kingdom
18.3 %
France
11.0 %
Germany
9.6 %
Netherlands
4.9 %
Spain
4.4 %
Belgium
3.5 %
Sweden
3.4 %
Switzerland
3.1 %
Norway
12.9 %
Other
Total
100 %

Top 10 holdings (2022-05-31)

3.1 %
Equinor
3.1 %
Repsol
3.0 %
Rio Tinto
2.9 %
ING Groep
2.6 %
Sanofi
2.6 %
Technip Energies
2.6 %
National Grid
2.6 %
Vodafone Group
2.6 %
Taylor Wimpey
2.6 %
Hellenic Telecomm. Organization
Total
27.7 %

Sector allocation (2022-05-31)

24.6 %
Financials
13.4 %
Energy
11.5 %
Telecommunications
9.5 %
Industrials
9.4 %
Health Care
9.3 %
Consumer Discretionary
8.9 %
Consumer Staples
7.9 %
Utilities
3.0 %
Basic Materials
2.4 %
Other
Total
100 %
The cash position is included in ‘Other’.
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The 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 European 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. This fund will invest in a broad range of companies, of which some will have sustainability objectives.

We commit to the goals of the Paris Agreement. This encompasses short-term objectives (2025), a mid-term ambition (2030) and a long-term commitment to be a net zero investor by 2050. By 2025, we aim to be aligned with a path to achieving the Paris Agreement and Dutch Klimaatakkoord. We follow the market reduction, which assumes a pathway in line with the EU Benchmarks.

Fund carbon emission targets

Morningstar sustainability rating

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 three relevant pillars of: Exclusion, ESG integration and Active ownership.

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. Based on the fundamental ESG analysis we form an opinion on the quality of a company’s ESG profile.

Exclusion

The Fund applies exclusion criteria. These take into account international standards, such as UN Global Compact Framework, the OECD Guidelines for Multinational Enterprises, 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 Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The 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
0.500 %
Service fee i
0.15 %
Expected ongoing charges i
0.65 %
Ongoing charges last financial year i
0.70 %
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 Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The 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
Y
Investor type
Institutional & Private
Distributing
Yes
Benchmark i
MSCI Europe Total Return Index (calculated in Euro)
Investment category
High Dividend Equity
Universum
European equities
Inception date
2016-07-20
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., Amsterdam branch
Management company
Kempen Capital Management N.V.
Depositary and custodian
BNP Paribas Securities Services S.C.A., Amsterdam branch
Morningstar rating â„¢
Morningstar Analyst rating
Neutral

Tradability

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Listed
no
Subscription/Redemption Frequency
Daily
ISIN i
NL0011843172
Details
Orders must be submitted via Fundsettle.
Class Y of Kempen European High Dividend Fund N.V. will only be available for orders submitted via the Fundsettle platform. Share class Y will only be available for distributors who submit orders on behalf of their clients, and who have been selected by the management company.
Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The 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 Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the “Fund”). KCM is authorised as a management company and regulated by the Dutch Authority for the Financial Markets (AFM). The 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.