Overview

The Neptune Global Alpha Fund takes a high conviction approach to global investing, resulting in a focused portfolio of our very best ideas. The Fund has the ability to invest in companies’ shares and bonds from across the developed and emerging markets, unconstrained by region or sector as it seeks to deliver capital growth. As with all Neptune funds, the portfolio benefits from our team-based global sector research process.

Investment objective

To provide capital growth by investing in both companies’ shares and bonds (issued by companies and/or governments) from around the world; the precise mix of investments will be chosen by the manager and selected at their discretion.

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

Ongoing charge (%) 0.89
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB0031190555
Bloomberg CFORMGB:LN
SEDOL 3119055

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

    13 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 2.4 9.1 9.4 58.7 74.6 243.9 382.5 496.3
IA sector 1.3 6.3 3.3 26.0 34.6 137.6 158.2 154.5
IA rank 22/162 17/161 7/156 1/137 1/124 4/77 1/43 1/35
Quartile 1 1 1 1 1 1 1 1
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund 17.1 1.9 6.5 25.3 -1.0
IA sector 5.4 2.6 15.1 11.4 -6.6
IA rank 1/122 76/130 123/134 1/142 8/158
Quartile 1 3 4 1 1

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. 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 Flexible Investment.

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 17.1 1.9 6.5 25.3 -1.0
Benchmark 12.1 5.5 29.0 12.4 -2.5
IA sector 5.4 2.6 15.1 11.4 -6.6
IA rank 1/122 76/130 123/134 1/142 8/158
Quartile 1 3 4 1 1

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. 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 Flexible Investment.

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 31/03/2019

Top ten holdings (%)

FundIndex
Twilio 5.99 0.00
Amazon 5.23 1.86
Rapid7 5.08 0.00
Alphabet 4.30 1.81
Neptune Global Technology Fund 3.99 0.00
Intuitive Surgical 3.72 0.16
Palo Alto Networks 3.50 0.06
Neptune Emerging Markets Fund 3.40 0.00
Nvidia  3.25 0.26
Horizon Pharma 3.07 0.00

Sector (%)

FundIndex
Information technology 34.1 15.9
Financials 19.2 15.6
Consumer discretionary 12.8 10.4
Communication services 12.0 8.3
Healthcare 10.6 12.9
Materials 5.3 4.6
Consumer staples 2.7 8.6
Industrials 1.6 11.1
Alternatives 0.5 0.0
Energy 0.4 6.0
Utilities 0.2 3.4
Cash 0.6000 0.0

Region (%)

FundIndex
North America 63.1 65.8
Emerging Markets 13.3 0.2
UK 9.5 5.8
Japan 7.7 8.2
Europe ex UK 3.2 15.6
Asia Pacific ex Japan 2.6 4.3
Cash 0.6000 0.0

Asset class (%)

Equity 95.7
Private Equity 3.2
Alternatives 0.5
Cash 0.6

Top ten holdings (%)

FundIndex
Twilio 5.99 0.00
Amazon 5.23 1.86
Rapid7 5.08 0.00
Alphabet 4.30 1.81
Neptune Global Technology Fund 3.99 0.00
Intuitive Surgical 3.72 0.16
Palo Alto Networks 3.50 0.06
Neptune Emerging Markets Fund 3.40 0.00
Nvidia  3.25 0.26
Horizon Pharma 3.07 0.00

Sector (%)

FundIndex
Information technology 34.1 15.9
Financials 19.2 15.6
Consumer discretionary 12.8 10.4
Communication services 12.0 8.3
Healthcare 10.6 12.9
Materials 5.3 4.6
Consumer staples 2.7 8.6
Industrials 1.6 11.1
Alternatives 0.5 0.0
Energy 0.4 6.0
Utilities 0.2 3.4
Cash 0.6000 0.0

Region (%)

FundIndex
North America 63.1 65.8
Emerging Markets 13.3 0.2
UK 9.5 5.8
Japan 7.7 8.2
Europe ex UK 3.2 15.6
Asia Pacific ex Japan 2.6 4.3
Cash 0.6000 0.0

Asset class (%)

Equity 95.7
Private Equity 3.2
Alternatives 0.5
Cash 0.6

    Active share

    Active share 89.5%

    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 50

    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 positioning

    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 small 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. Positive stock contributors in the fourth quarter included CME Group, the futures exchange which benefited from the more volatile market conditions during the period. Another source of outperformance in the fourth quarter of 2018 was through US tech firm Twilio. The company, which offers a software platform that allows its customers to easily integrate various communication capabilities into their products, continued to impress with an excellent Q3 earnings report seeing the stock rise and maintain a high price as many of its tech peers struggled. In the healthcare sector, LivaNova was a detractor to performance in the fourth quarter. The medical devices company, underperformed on the back of the Centres for Medicare & Medicaid Services’ (CMS) decision for Livanova’s VNS Therapy for treatment-resistant depression. The market had expected LivaNova to be allowed to proceed unhindered with its device but instead the CMS would like more data.

    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. We maintain an actively managed portfolio with a high conviction approach.

    Robin Geffen

    Fund Manager

    We continue to see an attractive backdrop for equities in the US & we have retained our significant weighting here

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 614.70 -0.55 18/04/2019
    A Acc GBP 539.60 -0.55 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 GB0031190555 3119055 CFORMGB:LN 0.89
    A Acc GBP GB0031190449 3119044 CFORMGA:LN 2.05

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