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 0.1 4.5 -16.3 34.7 12.0 124.5 327.6 434.7
Benchmark 2.7 8.2 3.1 37.2 41.2 177.7 256.8 316.2
IA sector 1.8 7.6 -1.2 29.8 36.2 171.2 240.9 290.8
IA rank 111/119 107/119 118/118 28/107 93/94 70/73 9/55 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 10.0 17.0 17.4 -12.2
IA rank 91/93 51/98 2/106 15/111 118/118
Quartile 4 3 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.

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 10.0 17.0 17.4 -12.2
IA rank 91/93 51/98 2/106 15/111 118/118
Quartile 4 3 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.

Portfolio

Data as at 31/03/2019

Top ten holdings (%)

FundIndex
Bayer 3.93 0.97
Intesa Sanpaolo 3.11 0.58
Sanofi-Aventis 3.11 1.60
E.ON 3.10 0.39
Crédit Agricole 3.07 0.22
Siemens 3.03 1.32
Danone 3.03 0.76
Maersk 3.02 0.21
Unilever 3.01 1.44
Pernod Ricard 3.01 0.61

Sector (%)

FundIndex
Financials 21.8 17.5
Industrials 14.6 14.5
Materials 14.6 6.8
Consumer discretionary 12.6 10.4
Healthcare 9.6 14.3
Consumer staples 9.0 13.6
Information technology 8.3 7.2
Energy 4.0 4.8
Utilities 3.1 4.5
Communication services 2.1 4.7
Real estate 0.0 1.6
Cash 0.3000 0.0

Country (%)

FundIndex
Germany 26.2 18.7
France 24.8 24.6
Netherlands 13.0 7.8
Spain 7.0 6.5
Italy 6.1 5.2
Other 5.4 0.0
Portugal 4.8 0.3
Sweden 4.3 5.8
Denmark 3.0 3.9
Norway 2.6 1.6
Switzerland 2.5 19.5
Cash 0.3000 0.0

Top ten holdings (%)

FundIndex
Bayer 3.93 0.97
Intesa Sanpaolo 3.11 0.58
Sanofi-Aventis 3.11 1.60
E.ON 3.10 0.39
Crédit Agricole 3.07 0.22
Siemens 3.03 1.32
Danone 3.03 0.76
Maersk 3.02 0.21
Unilever 3.01 1.44
Pernod Ricard 3.01 0.61

Sector (%)

FundIndex
Financials 21.8 17.5
Industrials 14.6 14.5
Materials 14.6 6.8
Consumer discretionary 12.6 10.4
Healthcare 9.6 14.3
Consumer staples 9.0 13.6
Information technology 8.3 7.2
Energy 4.0 4.8
Utilities 3.1 4.5
Communication services 2.1 4.7
Real estate 0.0 1.6
Cash 0.3000 0.0

Country (%)

FundIndex
Germany 26.2 18.7
France 24.8 24.6
Netherlands 13.0 7.8
Spain 7.0 6.5
Italy 6.1 5.2
Other 5.4 0.0
Portugal 4.8 0.3
Sweden 4.3 5.8
Denmark 3.0 3.9
Norway 2.6 1.6
Switzerland 2.5 19.5
Cash 0.3000 0.0

    Active share

    Active share 77.2%

    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

    Q4 2018

    Market overview

    Global equities had a tough final quarter of 2018, with concerns over global growth, the trade war between and the US and China, continued interest rate hikes from the Fed and political uncertainty in Europe all weighing on equity markets. Mario Draghi cited rising protectionism as the “major source of uncertainty” to the Eurozone economy, which expanded at just 0.2% QoQ in the third quarter of 2018, half the pace of the previous quarter, and the IMF cut its global GDP forecasts to 3.7% from 3.9% in both 2018 and 2019, criticising Trump for escalating trade wars. The Rome-Brussels confrontation intensified, as the European Commission rejected Italy’s budget plan in an unprecedented step in the block’s history, and German Chancellor Angela Merkel announced she would step down as leader of the governing CDU party, but intends to remain Chancellor until the end of her term in 2021.

    Against this backdrop European equities fell by -11% during the quarter, in line with other developed markets. The Neptune European Opportunities Fund declined by -19.7% as the sharp decline in global yields benefited long duration, safe haven assets in contrast to the Fund’s deep value positioning. The financials sector was the main contributor to underperformance with a number of banks falling by 25-35%. Our holdings in the autos sector also performed poorly as the global trade war escalated, with Renault, Continental and Daimler all falling by 15-25%.

    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

    As recession fears recede & 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

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 170.40 0.06 18/04/2019
    C Acc GBP Hdg 86.91 0.29 18/04/2019
    C Inc GBP 131.70 0.08 18/04/2019
    C Acc EUR 116.50 0.26 18/04/2019
    A Acc GBP 532.60 0.08 18/04/2019
    A Inc GBP 442.40 0.07 18/04/2019
    A Acc EUR 190.40 0.26 18/04/2019
    B Acc GBP 573.10 0.07 18/04/2019
    B Inc GBP 453.30 0.07 18/04/2019
    B Acc EUR 200.10 0.25 18/04/2019
    D Acc GBP 136.60 0.07 18/04/2019
    D Acc GBP Hdg 86.85 0.29 18/04/2019
    E Inc GBP 83.96 0.07 18/04/2019

    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 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