Overview

A high conviction, actively managed portfolio providing exposure to world-class companies based in Europe, excluding the UK. The Fund targets companies at attractive valuations whilst manager Thomas Smith has the freedom to rapidly adjust the portfolio in line with prevailing market conditions.

Investment objective

To provide capital growth by investing mainly in a focused portfolio of approximately 40-60 European companies, selected at the manager's discretion, excluding the UK.

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

Ongoing charge (%) 0.96
Net yield (%) -
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00B8LF7310
Bloomberg CFNEOCA:LN
SEDOL B8LF731

Fund managers

Thomas Smith

Fund Manager
  • Role at Neptune

    Investment Director, Head of European Equities

  • Time at Neptune

    9 years

  • Research focus

    Energy and Utilities

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs 10 yrs 15 yrs Launch
Fund -4.1 6.5 -15.3 35.3 16.1 89.8 347.0 445.1
Benchmark -1.7 10.8 2.0 39.7 41.3 149.2 261.8 326.3
IA sector -2.6 9.8 -3.2 32.2 37.9 143.9 246.8 299.1
IA rank 99/120 102/118 117/118 44/108 92/94 72/73 10/56 6/48
Quartile 4 4 4 2 4 4 1 1
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund -8.3 9.3 29.1 21.7 -24.8
Benchmark 0.0 5.9 19.7 16.7 -9.1
IA sector -0.4 9.9 17.1 17.4 -12.2
IA rank 91/93 50/99 2/107 15/112 118/118
Quartile 4 2 1 1 4

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. Launch date used is 29/11/2002, 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 29/11/2002 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 Europe Excluding UK and the benchmark is MSCI Europe ex UK 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.

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).

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund -8.3 9.3 29.1 21.7 -24.8
Benchmark 0.0 5.9 19.7 16.7 -9.1
IA sector -0.4 9.9 17.1 17.4 -12.2
IA rank 91/93 50/99 2/107 15/112 118/118
Quartile 4 2 1 1 4

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. Launch date used is 29/11/2002, 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 29/11/2002 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 Europe Excluding UK and the benchmark is MSCI Europe ex UK 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.

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).

Income

Income distribution

XD dates Pay dates Distribution rates* (pence per share)
01 Jan 19 28 Feb 19 0.4296
01 Jul 18 31 Aug 18 4.0127

*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 3.53%
A Inc GBP 3.56%

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 31/05/2019

Top ten holdings (%)

FundIndex
Bayer 3.84 0.91
Unilever 3.35 1.45
Pernod Ricard 3.32 0.62
Danone 3.28 0.81
E.ON 3.06 0.38
Sanofi-Aventis 3.06 1.50
Siemens 2.98 1.43
Banco Santander 2.86 1.18
Crédit Agricole 2.71 0.22
UniCredit 2.68 0.38

Sector (%)

FundIndex
Financials 20.2 17.4
Materials 14.7 6.6
Industrials 14.2 14.6
Consumer discretionary 12.7 10.4
Consumer staples 9.9 14.1
Healthcare 9.3 14.1
Information technology 8.6 7.5
Energy 4.0 4.4
Utilities 3.1 4.6
Communication services 2.0 4.7
Real estate 0.0 1.6
Cash 1.3000 0.0

Country (%)

FundIndex
Germany 26.4 19.0
France 25.1 24.4
Netherlands 12.6 7.8
Spain 7.0 6.6
Other 5.4 0.0
Italy 5.2 4.9
Portugal 4.7 0.3
Sweden 4.2 5.6
Norway 2.7 1.5
Denmark 2.7 3.8
Switzerland 2.6 20.1
Cash 1.3000 0.0

Top ten holdings (%)

FundIndex
Bayer 3.84 0.91
Unilever 3.35 1.45
Pernod Ricard 3.32 0.62
Danone 3.28 0.81
E.ON 3.06 0.38
Sanofi-Aventis 3.06 1.50
Siemens 2.98 1.43
Banco Santander 2.86 1.18
Crédit Agricole 2.71 0.22
UniCredit 2.68 0.38

Sector (%)

FundIndex
Financials 20.2 17.4
Materials 14.7 6.6
Industrials 14.2 14.6
Consumer discretionary 12.7 10.4
Consumer staples 9.9 14.1
Healthcare 9.3 14.1
Information technology 8.6 7.5
Energy 4.0 4.4
Utilities 3.1 4.6
Communication services 2.0 4.7
Real estate 0.0 1.6
Cash 1.3000 0.0

Country (%)

FundIndex
Germany 26.4 19.0
France 25.1 24.4
Netherlands 12.6 7.8
Spain 7.0 6.6
Other 5.4 0.0
Italy 5.2 4.9
Portugal 4.7 0.3
Sweden 4.2 5.6
Norway 2.7 1.5
Denmark 2.7 3.8
Switzerland 2.6 20.1
Cash 1.3000 0.0

    Active share

    Active share 76.6%

    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 42

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q1 2019

    Market overview

    The main narratives of the first quarter were the dovish turns of the major central banks in response to slowing economic growth, and progress being made on the US/China trade talks. In January, the Fed signalled a pause in further rate hikes, citing global economic uncertainties and muted inflation pressures, and in March suggested there would be no further hikes this year and announced it would cease quantitative tightening in September. The ECB also ruled out any rate hikes this year and announced a new series of two year targeted longer-term refinancing operations (TLTROs) starting in September. The US/China trade talks continued and yielded some progress, and China announced fresh stimulus measures estimated at 0.5-1.0% of GDP in 2019. These factors helped to drive equity markets higher, despite slowing global growth and political uncertainty. The IMF revised down global growth forecasts, the Eurozone continued to slow down with Italy falling into recession, and the US government went through the longest shutdown in its history.

    Portfolio attribution

    Despite the rally in global equities, the fall in global bond yields continued to favour growth stocks over value, with consumer staples and technology two of the best performing sectors. The main contributor to underperformance was the healthcare sector due to the strong performance of Swiss bellwethers Roche and Novartis, which we do not own, and the weakness in Bayer as it lost its second roundup litigation case.

    Outlook

    The portfolio maintains a strong value bias, with valuations at a material discount to both the market and peers. As recession fears recede and risk assets are supported by a more dovish Fed and stimulus measures in China, we see room for the sharp outperformance of growth over value to begin to reverse.

    Thomas Smith

    Fund Manager

    These factors helped to drive equity markets higher, despite slowing global growth and political uncertainty

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 173.10 0.64 26/06/2019
    C Acc GBP Hdg 85.42 0.26 26/06/2019
    C Inc GBP 133.70 0.60 26/06/2019
    C Acc EUR 114.30 0.26 26/06/2019
    A Acc GBP 539.90 0.62 26/06/2019
    A Inc GBP 448.50 0.63 26/06/2019
    A Acc EUR 186.40 0.22 26/06/2019
    B Acc GBP 581.50 0.62 26/06/2019
    B Inc GBP 460.00 0.61 26/06/2019
    B Acc EUR 196.00 0.26 26/06/2019
    D Acc GBP 138.70 0.65 26/06/2019
    D Acc GBP Hdg 85.31 0.27 26/06/2019
    E Inc GBP 85.31 0.63 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

    Codes & fees

    ISIN SEDOL Bloomberg Ongoing charge (%)
    C Acc GBP GB00B8LF7310 B8LF731 CFNEOCA:LN 0.96
    C Acc GBP Hdg GB00BFN4FT71 BFN4FT7 NEPEECH:LN 1.00
    C Inc GBP GB00B909GK18 B909GK1 NEPEOCI:LN 0.96
    C Acc EUR GB00BNJZR720 BNJZR72 NEPEOPC:LN 0.96
    A Acc GBP GB0032308594 3230859 CFNEOAA:LN 1.97
    A Inc GBP GB00B058ZH01 B058ZH0 CFNEOAI:LN 1.96
    A Acc EUR GB00B60T5P82 B60T5P8 NEUOAAE:LN 1.96
    B Acc GBP GB0032310012 3231001 CFNEOBA:LN 1.46
    B Inc GBP GB00B058ZP84 B058ZP8 CFNEOBI:LN 1.46
    B Acc EUR GB00B60T5Q99 B60T5Q9 NEUOBAE:LN 1.46
    D Acc GBP GB00BFZC7488 BFZC748 NEPECRA:LN 0.86
    D Acc GBP Hdg GB00BFN4FV93 BFN4FV9 NEPEEDH:LN 0.90
    E Inc GBP GB00BFN4FS64 BFN4FS6 NEPEEAG:LN 0.76

    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