Overview

The Neptune Balanced Fund combines our best investment ideas to address the needs of long-term savers. Actively managed, with the ability to invest across different asset classes, sectors and countries, the Fund is designed for pension investors who want a diversified portfolio to generate long-term outperformance.

Investment objective

To provide a combination of capital growth and income by investing conservatively in a mixture of companies’ shares, bonds (issued by companies and/or governments), money market instruments and cash deposits, selected at the manager's discretion.

There is no assurance that the investment objective will be achieved.

Ongoing charge (%) 0.83
Net yield (%) -
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00B85K7211
Bloomberg NEPBCRA:LN
SEDOL B85K721

Fund managers

Robin Geffen

Fund Manager

Theodora Zemek

Fixed Income Strategy
  • Role at Neptune

    Head of Fixed Income Strategy

  • Time at Neptune

    1 year

James Dowey

Deputy Fund Manager
  • Role at Neptune

    Chief Economist and CIO

  • Time at Neptune

    12 years

Storm Uru

Deputy Fund Manager
  • Role at Neptune

    Fund Manager

  • Time at Neptune

    4 years

  • Research focus

    Industrials

Ewan Thompson

Assistant Manager
  • Role at Neptune

    Investment Director, Head of Emerging Market Equities

  • Time at Neptune

    13 years

  • Research focus

    Metals and Mining

George Boyd-Bowman

Assistant Manager
  • Role at Neptune

    Investment Director, Head of US Equities

  • Time at Neptune

    8 years

  • Research focus

    Financials

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs 10 yrs 15 yrs Launch
Fund 2.9 9.7 4.3 40.5 48.6 136.4 230.2 709.1
IA sector 3.0 11.0 3.7 22.8 38.1 123.1 163.2 174.6
IA rank 82/165 121/159 60/157 6/112 20/119 30/73 11/44 1/24
Quartile 2 4 2 1 1 2 1 1
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund 2.4 2.4 12.8 13.5 -1.0
IA sector 4.5 2.3 12.5 8.9 -6.1
IA rank 106/123 67/132 61/128 9/127 3/156
Quartile 4 2 2 1 1

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. Launch date used is 31/12/1998, which is the launch of the A Accumulation share class. The C Accumulation share class was launched on 03/10/2012, so during the period from 31/12/1998 to 03/10/2012 the performance record is based on the pre-existing A Accumulation share class. Reported date prices used for cumulative and discrete performance tables. The performance of other share classes may differ.

IA sector rankings may change at any time as a result of closure, movement between sectors or price amendments by competitor funds. The Fund's IA sector is IA Mixed Investment 40-85% Shares.

This Fund may have a high historic volatility rating and past performance is not a guide to future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations and you and your clients may not get back the original amount invested. Investments in emerging markets may be higher risk and more volatile than investments in developed markets.

Distribution Technology’s Risk Profiling rates funds on a scale of 1-10, with 1 being the lowest and 10 being the highest risk. FE Crown Fund Rating applies to C Accumulation share class in pound sterling. FE Crown Fund Ratings do not constitute investment advice offered by FE and should not be used as the sole basis for making any investment decision. ©2019 FE. All rights reserved.

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund - - - - -
IA sector - - - - -
IA rank - - - - -
Quartile - - - - -

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. Launch date used is 31/12/1998, which is the launch of the A Accumulation share class. The C Accumulation share class was launched on 03/10/2012, so during the period from 31/12/1998 to 03/10/2012 the performance record is based on the pre-existing A Accumulation share class. Reported date prices used for cumulative and discrete performance tables. The performance of other share classes may differ.

IA sector rankings may change at any time as a result of closure, movement between sectors or price amendments by competitor funds. The Fund's IA sector is IA Mixed Investment 40-85% Shares.

This Fund may have a high historic volatility rating and past performance is not a guide to future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations and you and your clients may not get back the original amount invested. Investments in emerging markets may be higher risk and more volatile than investments in developed markets.

Distribution Technology’s Risk Profiling rates funds on a scale of 1-10, with 1 being the lowest and 10 being the highest risk. FE Crown Fund Rating applies to C Accumulation share class in pound sterling. FE Crown Fund Ratings do not constitute investment advice offered by FE and should not be used as the sole basis for making any investment decision. ©2019 FE. All rights reserved.

Income

Income distribution

XD dates Pay dates Distribution rates* (pence per share)
01 Jan 19 28 Feb 19 0.0000
01 Jul 18 31 Aug 18 0.2482

*Rates paid per share for the C income shares, the primary distributing share class. For rates on other share classes, please contact us.

Net yield

C Inc GBP 0.13%
A Inc GBP 0.00%

Yields quoted for the income share classes, the primary distributing share classes. For yields on other share classes, please contact us.

Past performance is not a reliable indicator of future returns. You should not make any assumptions on the future on the basis of performance information. The value of an investment and the income from it can fall as well as rise as a result of market fluctuations and you may not get back the amount originally invested.

Portfolio

Data as at 30/06/2019

Top ten holdings (%)

Amazon 5.41
Microsoft 5.22
CME Group 4.78
Visa 4.54
Alphabet 4.29
Apple 3.60
Neptune Global Technology Fund 3.50
Palo Alto Networks 3.11
Alibaba Group 2.92
Tencent 2.57

Sector (%)

Information technology 23.5
Financials 21.1
Government bonds 16.9
Consumer discretionary 13.5
Communication services 9.8
Materials 5.9
Consumer staples 2.8
Healthcare 2.7
Industrials 2.3
Other 0.6
Energy 0.3
Cash 0.6

Region (%)

North America 52.3
UK 27.2
Emerging Markets 12.2
Japan 5.1
Asia Pacific ex Japan 2.5
Europe ex UK 0.1
Cash 0.6

Asset class (%)

Equity 80.1
Fixed Income 16.9
Private Equity 2.2
Alternatives 0.2
Cash 0.6

Top ten holdings (%)

Amazon 5.41
Microsoft 5.22
CME Group 4.78
Visa 4.54
Alphabet 4.29
Apple 3.60
Neptune Global Technology Fund 3.50
Palo Alto Networks 3.11
Alibaba Group 2.92
Tencent 2.57

Sector (%)

Information technology 23.5
Financials 21.1
Government bonds 16.9
Consumer discretionary 13.5
Communication services 9.8
Materials 5.9
Consumer staples 2.8
Healthcare 2.7
Industrials 2.3
Other 0.6
Energy 0.3
Cash 0.6

Region (%)

North America 52.3
UK 27.2
Emerging Markets 12.2
Japan 5.1
Asia Pacific ex Japan 2.5
Europe ex UK 0.1
Cash 0.6

Asset class (%)

Equity 80.1
Fixed Income 16.9
Private Equity 2.2
Alternatives 0.2
Cash 0.6

    Number of holdings

    No. of holdings 58

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q2 2019

    Market overview

    It was a volatile quarter thanks to the re-escalation in the US/China trade war. Donald Trump’s decision to re-impose $200bn of tariffs on Chinese goods weighed heavily on investor sentiment, as did his decision to impose tariffs on Mexico (though these were lifted shortly after). This meant emerging markets, led by China, considerably underperformed developed markets as investors became nervous about the growth impact on the world’s second largest economy. However, the US Federal Reserve’s stance on monetary policy became even more dovish over the quarter, causing bond yields to fall. This in turn led to strong bifurcation in the equity market with longer duration stocks (such as classic bond proxies or disruptive structural growth companies) delivering strong returns and value stocks (or those with links to global economic growth) underperforming.

    Portfolio attribution

    The Fund’s outperformance relative to its peers was primarily driven by its higher weightings to equities, despite the increased market volatility. Nevertheless, the Fund’s index-linked bond exposure was additive to its total returns. The strongest contributors to the Fund’s returns were its financials holdings, notably CME Group – the futures exchange – which benefited from the heightened volatility. The Fund’s bias toward structural growth tech stocks (whether they sit in the information technology or the communication services sectors) also aided relative returns, with longer duration assets rallying thanks fall in bond yields. Our exposure to the Neptune Emerging Markets Fund, with its overweights to Russia and Brazil (two of the relative bright spots within the developing world) was also additive.

    The main detractors to performance included Baidu, which fell as result of the US/China trade war and thanks to a poor Q1 earnings update. Our exposure to the materials sector also detracted from returns as investors became increasingly concerned about global economic growth. This included our holding in Glencore, which fell over the quarter as a result of allegations of corruption and a relatively subdued update to the market. The Fund’s exposure to exchange traded put options also hurt relative returns at the margin given markets ended the quarter in positive territory, yet they helped dampen the overall portfolio drawdown.

    Outlook

    Despite the re-escalation in the US/China trade war, we remain optimistic in our outlook for the global economy. We believe the macroeconomic backdrop remains supportive, particularly within emerging markets where valuations remain low economic growth continues to improve. We maintain our view that Chinese growth will improve in the second half of the year as the authorities’ monetary and fiscal loosening begin to take effect despite the recent uncertainty surrounding US tariffs. Despite the more dovish rhetoric from the US Federal Reserve, we continue to view traditional fixed income as an asset class that is fraught with risk given the low yields on offer.

    Robin Geffen

    Fund Manager

    The Fund’s outperformance relative to its peers was primarily driven by its higher weightings to equities, despite the increased market volatility

    Insights & analysis

    Prices

    Choose date
    Share class Bid price Offer price Change (%) Date
    C Acc GBP 177.70 178.00 -0.67 18/07/2019
    C Inc GBP 169.30 169.60 -0.65 18/07/2019
    A Acc GBP 793.10 794.60 -0.66 18/07/2019
    A Inc GBP 707.60 709.00 -0.66 18/07/2019
    D Acc GBP 156.70 157.00 -0.63 18/07/2019

    Neptune funds are priced every working day at 12 noon UK time and prices should be updated here by 6pm the same day.

    The prices shown should be taken only as an indication of the value of shares. Prices are set on a forward-pricing basis which means that any instruction to buy or sell shares will be fulfilled at the price set at 12 noon the next day.

    If you are looking for historical prices of closed funds or share classes, or are having any difficulty finding the price information you require, please call our customer services team on 0800 587 5051.

    Literature

    Factsheet
    30/06/2019
    Quarterly Commentary
    30/06/2019
    Key Investor Information Document
    08/02/2019

    Codes & fees

    ISIN SEDOL Bloomberg Ongoing charge (%)
    C Acc GBP GB00B85K7211 B85K721 NEPBCRA:LN 0.83
    C Inc GBP GB00B83H6G14 B83H6G1 NEPBBRI:LN 0.83
    A Acc GBP GB0004821921 0482192 CFORBLAL:LN 1.60
    A Inc GBP GB0033272781 3327278 NEPBALI:LN 1.60
    D Acc GBP GB00BFZC7371 BFZC737 NEPBDGB:LN 0.74

    Contact us

    UK Sales Team

    Michael Parsons

    Global Head of Sales

    Tel: 020 3249 0181

    Mob: 07870 510 306

    Email: michael.parsons

    Harry Bush

    Head of London Sales

    Tel: 020 3249 0174

    Mob: 07850 770 470

    Email: harry.bush

    Hugo Morrissey

    Sales Manager – North & Scotland

    Mob: 07850 770 453

    Email: hugo.morrissey

    Harry Nolan

    Sales Manager – London & South East

    Tel: 020 3249 0192

    Mob: 07970 231 379

    Email: harry.nolan

    Veronika Blazicek

    Sales Executive - UK & Europe

    Tel: +44 20 3249 0189

    Mob: +44 7850 770 480

    Email: veronika.blazicek

    To place a deal or request information on investments:

    Lines are open on weekdays from 9am to 5pm UK time. All 0800 numbers are free of charge to call from fixed line and mobile phones.

    Postal address

    Neptune Investment Management

    PO Box 9004

    Chelmsford

    Essex CM99 2WR