Overview

The Neptune Emerging Markets Fund gives investors exposure to the fast growth potential of the world’s emerging economies. Fund Manager Ewan Thompson is able to tap into the best investment opportunities from across the emerging markets globally, to build a diversified portfolio. The Fund aims to provide capital growth, with the potential for some income, by investing in a diverse selection of stocks.

Investment objective

To provide capital growth, with the potential for some income, by investing mainly in companies based in emerging markets worldwide, selected at the manager's discretion.

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

Ongoing charge (%) 0.90**
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00B8J6SV12
Bloomberg NEPEMCA:LN
SEDOL B8J6SV1

Fund managers

Ewan Thompson

Fund Manager
  • Role at Neptune

    Investment Director, Head of Emerging Market Equities

  • Time at Neptune

    13 years

  • Research focus

    Metals and Mining

Ruth Chambers

Assistant Manager
  • Role at Neptune

    Fund Manager

  • Time at Neptune

    3 years

  • Research focus

    Energy and Utilities

Thomas Smith

Assistant Manager
  • Role at Neptune

    Investment Director, Head of European Equities

  • Time at Neptune

    9 years

  • Research focus

    Energy and Utilities

Robin Geffen

Assistant Manager

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs 10 yrs Launch
Fund -3.3 4.9 -7.8 61.0 61.6 93.9 139.6
Benchmark -4.0 5.3 -3.2 54.9 48.1 116.1 138.9
IA sector -3.4 7.1 -2.8 48.5 42.2 106.6 130.9
IA rank 50/105 81/105 87/102 17/98 14/89 29/41 18/38
Quartile 2 4 4 1 1 3 2
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund 0.8 1.1 29.2 27.6 -10.7
Benchmark 4.3 -9.7 33.1 25.8 -8.9
IA sector 4.2 -8.8 32.0 24.7 -11.5
IA rank 71/86 1/92 63/95 34/99 44/100
Quartile 4 1 3 2 2

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. Launch date used is 30/09/2008, 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 30/09/2008 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 Global Emerging Markets and the benchmark is MSCI Emerging Markets Index. Neptune’s funds are not tied to replicating a benchmark and holdings can therefore vary from those in the index quoted. For this reason, the comparison index should be used for reference only.

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.

Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices.  None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information.  MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information.  Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com).

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 0.8 1.1 29.2 27.6 -10.7
Benchmark 4.3 -9.7 33.1 25.8 -8.9
IA sector 4.2 -8.8 32.0 24.7 -11.5
IA rank 71/86 1/92 63/95 34/99 44/100
Quartile 4 1 3 2 2

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. Launch date used is 30/09/2008, 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 30/09/2008 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 Global Emerging Markets and the benchmark is MSCI Emerging Markets Index. Neptune’s funds are not tied to replicating a benchmark and holdings can therefore vary from those in the index quoted. For this reason, the comparison index should be used for reference only.

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.

Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices.  None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information.  MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information.  Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com).

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 31/05/2019

Top ten holdings (%)

FundIndex
Samsung 5.04 3.72
Novatek 4.76 0.36
Tencent 4.50 4.53
Alibaba Group 4.06 4.05
Taiwan Semiconductor Manufacturing 3.99 0.00
Rumo 3.94 0.10
Sberbank 3.65 0.73
Ping An Insurance Group 3.39 1.84
Lukoil  3.28 0.63
Gazprom Neft 3.06 0.67

Sector (%)

FundIndex
Financials 31.3 25.7
Materials 15.5 7.6
Energy 11.1 8.1
Information technology 10.6 13.7
Consumer discretionary 8.6 13.0
Industrials 8.1 5.4
Communication services 8.0 11.5
Consumer staples 4.6 6.7
Healthcare 1.5 2.7
Utilities 0.7 2.7
Real estate 0.0 3.0

Country (%)

FundIndex
China 26.7 31.0
Russia 19.4 4.0
Brazil 18.6 7.6
South Korea 7.8 12.0
South Africa 6.0 5.9
India 5.9 9.5
Taiwan 5.1 11.0
UK 3.4 0.0
Indonesia 3.0 2.1
Peru 2.7 0.4
Argentina 1.4 0.3

Top ten holdings (%)

FundIndex
Samsung 5.04 3.72
Novatek 4.76 0.36
Tencent 4.50 4.53
Alibaba Group 4.06 4.05
Taiwan Semiconductor Manufacturing 3.99 0.00
Rumo 3.94 0.10
Sberbank 3.65 0.73
Ping An Insurance Group 3.39 1.84
Lukoil  3.28 0.63
Gazprom Neft 3.06 0.67

Sector (%)

FundIndex
Financials 31.3 25.7
Materials 15.5 7.6
Energy 11.1 8.1
Information technology 10.6 13.7
Consumer discretionary 8.6 13.0
Industrials 8.1 5.4
Communication services 8.0 11.5
Consumer staples 4.6 6.7
Healthcare 1.5 2.7
Utilities 0.7 2.7
Real estate 0.0 3.0

Country (%)

FundIndex
China 26.7 31.0
Russia 19.4 4.0
Brazil 18.6 7.6
South Korea 7.8 12.0
South Africa 6.0 5.9
India 5.9 9.5
Taiwan 5.1 11.0
UK 3.4 0.0
Indonesia 3.0 2.1
Peru 2.7 0.4
Argentina 1.4 0.3

    Active share

    Active share 77.5%

    The Active Share is a measure of how different a portfolio is from its benchmark, i.e. how 'actively managed' a fund is relative to its respective Index. A score of 100% indicates the fund's holdings are completely different, whilst 0% indicates the portfolio exactly replicates the Index.

    Number of holdings

    No. of holdings 43

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q1 2019

    Market overview

    In the first quarter of 2019, emerging markets enjoyed strong performance, largely recovering the ground lost in the second half of 2018. Although emerging markets slightly trailed developed markets over the quarter, markets generally performed very well across the board. This was a welcome rebound after what had been a difficult 2018. The challenging backdrop of last year ‒ moderation in global economic growth, lower growth in China and a resurgent US dollar – moderated somewhat at the beginning of this year. Further indications that policy response in China is forthcoming and that economic data there are stabilising provided reassurance that economic momentum will be on an improving trajectory throughout this year. Moreover, the slower rise in the US dollar provided a much more benign backdrop for emerging markets, which tend to come under pressure as it appreciates.

    Portfolio attribution

    A major boost to performance over the quarter was the resurgent Chinese market ‒ which had been one of the largest casualties of 2018, when it fell over 20% ‒ which recovered almost all of last year’s fall in just a quarter. The increasing weight of evidence suggesting a turnaround in the economy was behind investors’ renewed appetite for the market. Elsewhere, Russia was also very strong, buoyed by the rising oil price – which rose from $53 per barrel to $67 in the quarter. With most markets posting solid positive returns, Turkey was a rare exception, falling -4.4% as policymaking remained erratic, shaking investors’ confidence and seeing the lira weaken significantly. By sector, returns were mixed, with consumer discretionary and IT leading the charge (led by Chinese stocks), closely followed by energy stocks tracking oil prices higher.

    The Fund’s overweight position in Russia was a major positive during the period, with performance driven by holdings in the industrial sector (Globaltrans) as well as in the energy sector itself (Lukoil in particular). Elsewhere, healthy performance came from positions in Chinese consumer stocks Haier Electronics and China Resources Beer, as well as in mining companies such as Antofagasta, which benefited from recovering copper prices. At the other end of the spectrum, the Fund’s underweight position in China dragged on performance, albeit largely offset by the positive performance of our overweight positions.

    Outlook

    Our outlook for emerging markets remains positive, supported by historically attractive relative valuations in comparison to developed markets. The moderation in economic growth that bedevilled the asset class last year is welcome indeed, led by China, such that we are now seeing a beneficial impact on earnings revisions starting to appear. Moreover, the macro backdrop of US bond yields and US dollar remains more benign than last year. Given our consistent outlook, the Fund has seen very few substantive changes during the quarter – though holdings in two problematic stocks (China Maple Leaf Education and Yes Bank in India) were sold due to a lack of confidence that the businesses would be able to recover following from unfavourable government actions. Finally, our position in Glencore was switched into preferred mining exposure Anglo American.

    Ewan Thompson

    Fund Manager

    The increasing weight of evidence suggesting a turnaround in the economy was behind investors’ renewed appetite for the market

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 166.40 0.24 26/06/2019
    E Acc GBP 101.00 0.20 26/06/2019

    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
    31/05/2019
    Quarterly Commentary
    31/03/2019
    Key Investor Information Document
    08/02/2019

    Codes & fees

    ISIN SEDOL Bloomberg Ongoing charge (%)
    C Acc GBP GB00B8J6SV12 B8J6SV1 NEPEMCA:LN 0.90**
    E Acc GBP GB00BYWLCP75 BYWLCP7 NEPEMEG:LN 0.70

    *The OCF is capped at 0.90% as at 01/07/2018.

    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