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 (%) 0.88
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

James Dowey

Asset Allocation Strategy
  • Role at Neptune

    Chief Economist and CIO

  • Time at Neptune

    11 years

Theodora Zemek

Fixed Income Strategy
  • Role at Neptune

    Head of Fixed Income Strategy

  • Time at Neptune

    <1 year

Ewan Thompson

Assistant Manager
  • Role at Neptune

    Investment Director, Co-Head of Emerging Market Equities

  • Time at Neptune

    12 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

Storm Uru

Assistant Manager
  • Role at Neptune

    Fund Manager

  • Time at Neptune

    4 years

  • Research focus

    Industrials

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs 10 yrs 15 yrs Launch
Fund -5.50 0.13 1.61 27.58 37.68 125.01 235.82 645.91
IA sector -4.70 -2.80 -1.74 21.76 30.54 123.60 157.68 155.92
IA rank 105/140 17/156 10/154 22/134 24/113 49/73 7/44 1/24
Quartile 3 1 1 1 1 3 1 1
Large chart

Calendar year performance (%)

2013 2014 2015 2016 2017
Fund 17.35 2.38 2.41 12.80 13.51
IA sector 14.36 4.48 2.27 12.51 8.86
IA rank 23/113 106/123 67/132 60/128 9/127
Quartile 1 4 2 2 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.

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. ©2018 FE. All rights reserved.

Calendar year performance (%)

2013 2014 2015 2016 2017
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.

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. ©2018 FE. All rights reserved.

Portfolio

Data as at 31/10/2018

Top ten holdings (%)

Amazon 4.49
CME Group 4.35
Microsoft 4.28
Alphabet 4.04
Apple 3.72
Visa 3.41
Palo Alto Networks 2.77
Neptune Emerging Makets Fund 2.73
JPMorgan Chase 2.72
Mandarin Oriental 2.47

Sector (%)

Financials 22.7
Information technology 19.0
Government bonds 15.4
Consumer discretionary 12.1
Communication services 9.2
Materials 6.0
Healthcare 4.4
Industrials 3.1
Alternatives 2.8
Consumer staples 2.3
Other 1.0
Cash 2.0

Region (%)

North America 52.3
UK 25.9
Emerging Markets 12.1
Japan 5.1
Asia Pacific ex Japan 2.6
Cash 2.0

Asset class (%)

Equity 78.0
Fixed Income 15.4
Alternatives 2.8
Private Equity 1.8
Cash 2.0

Top ten holdings (%)

Amazon 4.49
CME Group 4.35
Microsoft 4.28
Alphabet 4.04
Apple 3.72
Visa 3.41
Palo Alto Networks 2.77
Neptune Emerging Makets Fund 2.73
JPMorgan Chase 2.72
Mandarin Oriental 2.47

Sector (%)

Financials 22.7
Information technology 19.0
Government bonds 15.4
Consumer discretionary 12.1
Communication services 9.2
Materials 6.0
Healthcare 4.4
Industrials 3.1
Alternatives 2.8
Consumer staples 2.3
Other 1.0
Cash 2.0

Region (%)

North America 52.3
UK 25.9
Emerging Markets 12.1
Japan 5.1
Asia Pacific ex Japan 2.6
Cash 2.0

Asset class (%)

Equity 78.0
Fixed Income 15.4
Alternatives 2.8
Private Equity 1.8
Cash 2.0

    Number of holdings

    No. of holdings 62

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q3 2018

    Market overview

    Despite continuing fears around increased protectionism and trade wars, the US equity market was relative calm in the third quarter of the year. This was in stark contrast to other global markets where equities suffered. Dollar strength and other idiosyncratic factors led to a number of emerging market currencies suffering volatility. The continued strength in US earnings reported during the period helped support the US market. Earnings per share for the S&P 500 grew around 25% year-on-year, driven by 12% sales growth and the highest level of EPS surprises in 7 years. On the trade front, there was some good news later on in the quarter where a new NAFTA deal seems to have been agreed with Canada and Mexico. The risk is that this is seen as a trade “win” by President Trump and adds further grist to his mill in negotiating with China potentially adding further volatility to equity markets down the road.

    Fund attribution

    In the US, we continue to see an attractive backdrop for equities and we have retained our significant weighting here, which again was a strong contributor to performance. Sector wise, positive performance in the third quarter was generated by strong stockpicking, in particular the technology sector with Apple and Amazon both contributing to outperformance as they became the world’s first and second trillion dollar companies. The Fund’s weighting to the UK was a detractor to performance as the concerns surrounding Brexit negotiations weighed on sterling, which combined with further evidence of a deteriorating outlook for the UK consumer, meant the market struggled over the quarter. The Fund remains overweight to emerging markets despite EMs witnessing a period of weakness, thanks largely to US dollar strength, with notable developing world economies such as Brazil, Argentina and Turkey experiencing considerable currency weakness.

    Outlook

    We remain confident in our outlook for global equity markets, despite the recent flight to safety amongst investors, and continue to run with a more cyclically-positioned portfolio. We believe the macroeconomic backdrop remains supportive, particularly within emerging markets.

    Robin Geffen

    Fund Manager

    Positive performance in the third quarter was generated by strong stockpicking, in particular the technology sector

    Insights & analysis

    Prices

    Choose date
    Share class Bid price Offer price Change (%) Date
    C Acc GBP 161.40 161.80 0.25 14/12/2018
    C Inc GBP 154.00 154.40 0.26 14/12/2018
    A Acc GBP 723.80 725.70 0.26 14/12/2018
    A Inc GBP 645.80 647.40 0.28 14/12/2018
    D Acc GBP 142.30 142.60 0.28 14/12/2018

    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

    Codes & fees

    ISIN SEDOL Bloomberg Ongoing charge (%)
    C Acc GBP GB00B85K7211 B85K721 NEPBCRA:LN 0.88
    C Inc GBP GB00B83H6G14 B83H6G1 NEPBBRI:LN 0.88
    A Acc GBP GB0004821921 0482192 CFORBLAL:LN 1.64
    A Inc GBP GB0033272781 3327278 NEPBALI:LN 1.64
    D Acc GBP GB00BFZC7371 BFZC737 NEPBDGB:LN 0.79

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