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, 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 0.8 0.8 -1.5 35.2 39.6 120.2 225.3 643.1
IA sector 3.3 3.3 -3.0 25.6 32.6 117.5 148.7 155.6
IA rank 160/162 160/162 46/157 15/144 30/119 45/74 6/45 1/24
Quartile 4 4 2 1 1 3 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 60/128 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.

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.

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.

Portfolio

Data as at 31/01/2019

Top ten holdings (%)

Amazon 4.99
Microsoft 4.46
CME Group 4.37
Alphabet 4.30
Visa 3.59
Palo Alto Networks 3.18
Neptune Emerging Markets Fund 3.05
Apple 2.93
Alibaba Group 2.80
Tencent 2.71

Sector (%)

Financials 23.2
Information technology 19.1
Government bonds 16.2
Consumer discretionary 13.2
Communication services 10.0
Materials 6.5
Healthcare 4.7
Consumer staples 2.4
Industrials 2.0
Alternatives 1.5
Other 0.8
Cash 0.4

Region (%)

North America 50.9
UK 27.5
Emerging Markets 13.6
Japan 5.0
Asia Pacific ex Japan 2.6
Cash 0.4

Asset class (%)

Equity 79.8
Fixed Income 16.2
Private Equity 2.1
Alternatives 1.5
Cash 0.4

Top ten holdings (%)

Amazon 4.99
Microsoft 4.46
CME Group 4.37
Alphabet 4.30
Visa 3.59
Palo Alto Networks 3.18
Neptune Emerging Markets Fund 3.05
Apple 2.93
Alibaba Group 2.80
Tencent 2.71

Sector (%)

Financials 23.2
Information technology 19.1
Government bonds 16.2
Consumer discretionary 13.2
Communication services 10.0
Materials 6.5
Healthcare 4.7
Consumer staples 2.4
Industrials 2.0
Alternatives 1.5
Other 0.8
Cash 0.4

Region (%)

North America 50.9
UK 27.5
Emerging Markets 13.6
Japan 5.0
Asia Pacific ex Japan 2.6
Cash 0.4

Asset class (%)

Equity 79.8
Fixed Income 16.2
Private Equity 2.1
Alternatives 1.5
Cash 0.4

    Number of holdings

    No. of holdings 60

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q4 2018

    Market overview

    The US equity market, having for most of the year eluded the growing fears that had afflicted other global stockmarkets, succumbed during the final quarter of 2018 and suffered a sharp correction. In addition to fears over the damage from the ongoing US-China trade spat, markets became concerned that the US economy was headed for tougher times. Further fuel to the sell-off was added by concerns that the Fed was going to continue to tighten monetary policy with more regular rate hikes in addition to continued shrinking of its QE-bloated balance sheet despite growing evidence that the economy was likely to head back towards trend growth in 2019.

    Portfolio attribution

    Despite this, we continue to see an attractive backdrop for equities in the US and we have retained our significant weighting here. The Fund’s weighting to the UK was a detractor to performance as concerns surrounding Brexit negotiations continued to weigh on sterling which, combined with further evidence of a deteriorating outlook for the UK consumer, meant the market struggled over the quarter.

    However, the Fund retains its overweights to emerging markets, which significantly outperformed developed markets during the period of volatility in the fourth quarter. In order to shield the Fund from overall market volatility, we maintained our positions in exchange traded index put options, these options were a significant positive contributor to relative performance in a volatile quarter. At an individual stock level, positive contributors in the fourth quarter included CME Group, the futures exchange which benefited from the more volatile market conditions during the period. The main detractors to the Fund’s performance in the fourth quarter were Apple, which fell on the back of weaker Chinese data, as well as certain financials and technology holdings such as SVB Financial and Nvidia.

    Outlook

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

    Robin Geffen

    Fund Manager

    We remain confident in our outlook for global equity markets, despite the recent flight to safety amongst investors, and continue to run a more cyclically-positioned portfolio

    Insights & analysis

    Prices

    Choose date
    Share class Bid price Offer price Change (%) Date
    C Acc GBP 162.20 162.60 -0.18 15/02/2019
    C Inc GBP 154.80 155.10 -0.13 15/02/2019
    A Acc GBP 726.50 728.20 -0.15 15/02/2019
    A Inc GBP 648.10 649.70 -0.17 15/02/2019
    D Acc GBP 143.00 143.30 -0.14 15/02/2019

    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

    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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