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 (%) 0.93
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, Co-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 -8.90 0.60 4.14 34.76 71.05 214.96 424.38 455.90
IA sector -5.13 -3.40 -2.39 23.23 31.05 129.31 164.26 147.66
IA rank 164/167 12/157 6/157 19/140 1/120 6/77 1/41 1/35
Quartile 4 1 1 1 1 1 1 1
Large chart

Calendar year performance (%)

2013 2014 2015 2016 2017
Fund 26.47 17.12 1.87 6.52 25.33
IA sector 15.60 5.44 2.66 15.02 11.22
IA rank 6/112 1/124 78/137 129/141 1/149
Quartile 1 1 3 4 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.

Calendar year performance (%)

2013 2014 2015 2016 2017
Fund 26.47 17.12 1.87 6.52 25.33
Benchmark 25.00 12.07 5.45 29.01 12.42
IA sector 15.60 5.44 2.66 15.02 11.22
IA rank 6/112 1/124 78/137 129/141 1/149
Quartile 1 1 3 4 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.

Portfolio

Data as at 31/10/2018

Top ten holdings (%)

FundIndex
Amazon 4.96 1.71
Alphabet 4.23 1.72
Rapid7 3.85 0.00
CME Group 3.68 0.16
Twilio 3.66 0.00
Intuitive Surgical 3.56 0.15
Nvidia  3.27 0.32
Neptune Emerging Makets Fund 2.89 0.00
Palo Alto Networks 2.86 0.04
Mandarin Oriental 2.85 0.00

Sector (%)

FundIndex
Information technology 26.2 15.5
Financials 19.0 16.5
Consumer discretionary 12.4 10.2
Healthcare 11.7 13.1
Communication services 9.9 8.3
Materials 5.1 4.6
Industrials 3.7 11.0
Alternatives 3.2 0.0
Consumer staples 2.6 8.6
Energy 0.4 6.3
Utilities 0.2 3.1
Cash 5.6 0.0

Region (%)

FundIndex
North America 60.0 65.8
Emerging Markets 11.9 0.2
UK 9.4 6.0
Japan 7.8 8.4
Asia Pacific ex Japan 2.9 4.0
Europe ex UK 2.4 15.6
Cash 5.6 0.0

Asset class (%)

Equity 88.0
Private Equity 3.2
Alternatives 3.2
Cash 5.6

Top ten holdings (%)

FundIndex
Amazon 4.96 1.71
Alphabet 4.23 1.72
Rapid7 3.85 0.00
CME Group 3.68 0.16
Twilio 3.66 0.00
Intuitive Surgical 3.56 0.15
Nvidia  3.27 0.32
Neptune Emerging Makets Fund 2.89 0.00
Palo Alto Networks 2.86 0.04
Mandarin Oriental 2.85 0.00

Sector (%)

FundIndex
Information technology 26.2 15.5
Financials 19.0 16.5
Consumer discretionary 12.4 10.2
Healthcare 11.7 13.1
Communication services 9.9 8.3
Materials 5.1 4.6
Industrials 3.7 11.0
Alternatives 3.2 0.0
Consumer staples 2.6 8.6
Energy 0.4 6.3
Utilities 0.2 3.1
Cash 5.6 0.0

Region (%)

FundIndex
North America 60.0 65.8
Emerging Markets 11.9 0.2
UK 9.4 6.0
Japan 7.8 8.4
Asia Pacific ex Japan 2.9 4.0
Europe ex UK 2.4 15.6
Cash 5.6 0.0

Asset class (%)

Equity 88.0
Private Equity 3.2
Alternatives 3.2
Cash 5.6

    Active share

    Active share 88.5%

    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 47

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q3 2018

    Market overview

    Despite continuing fears around increased protectionism and trade wars, the US equity market was relatively calm in the third quarter of the year. This was in stark contrast to other global markets where equities suffered. Dollar strength and other idiosyncratic factors led to a number of emerging market currencies suffering volatility. The continued strength in US earnings reported during the period helped support the US market. Earnings per share for the S&P 500 grew around 25% year-over-year, driven by 12% sales growth and the highest level of EPS surprises in 7 years. On the trade front, there was some good news later on in the quarter where a new NAFTA deal seems to have been agreed with Canada and Mexico. The risk is that this is seen as a trade “win” by President Trump and adds further grist to his mill in negotiating with China potentially adding further volatility to equity markets down the road.

    Fund attribution

    Positive performance in the third quarter was generated by strong stockpicking, in particular the technology and healthcare sectors. Within technology, Twilio was the standout performer after reporting impressive second quarter results. Base revenue grew in excess of 50% year-on-year as the company benefits from strong underlying cloud communications trends. Amazon too was a key contributor as it became the world’s second trillion dollar company. Within healthcare, the Fund enjoyed strong quarters from LivaNova, Intuitive Surgical and Horizon Pharma. The Fund maintains its overweight to emerging markets despite EMs witnessing a continued period of weakness due to the continued strength of the dollar, alongside ongoing concerns over the impact of trade tariffs on global growth in general, and the Chinese economy in particular, contributed to general risk aversion in the direction of emerging markets.

    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

    Positive performance in the third quarter was generated by strong stockpicking, in particular the technology and healthcare sectors.

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 567.70 -0.07 14/12/2018
    A Acc GBP 500.30 -0.08 14/12/2018

    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 0.93
    A Acc GBP GB0031190449 3119044 CFORMGA:LN 2.13

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