Investment objective

The investment objective of the Neptune Global Alpha Fund is to generate long-term (5 years or more) capital growth.

Strategy

The Fund runs an actively managed portfolio and invests in securities using a combination of economic, industry and stock specific analysis irrespective of a benchmark index to generate capital growth.

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

Theodora Zemek

Fixed Income Strategy
  • Role at Neptune

    Head of Fixed Income Strategy

  • Time at Neptune

    1 year

James Dowey

Assistant Manager
  • Role at Neptune

    Fund Manager, Chief Economist and CIO

  • Time at Neptune

    12 years

Storm Uru

Assistant Manager
  • Role at Neptune

    Fund Manager

  • Time at Neptune

    4 years

  • Research focus

    Industrials

George Boyd-Bowman

Assistant Manager
  • Role at Neptune

    Investment Director, Head of US Equities

  • Time at Neptune

    8 years

  • Research focus

    Financials

Will Geffen

Assistant Manager
  • Role at Neptune

    Assistant Manager

  • Time at Neptune

    <1 year

  • Research focus

    Technology

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs 10 yrs 15 yrs Launch
Fund 8.0 21.5 12.1 65.1 85.1 226.9 484.3 564.2
IA sector 3.1 14.0 4.4 24.8 42.1 120.4 185.0 172.9
IA rank 1/165 6/160 6/157 1/133 2/121 3/76 1/41 1/33
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 15.0 11.3 -6.7
IA rank 1/118 72/125 118/129 1/137 8/149
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.

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 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 15.0 11.3 -6.7
IA rank 1/118 72/125 118/129 1/137 8/149
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.

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 31/07/2019

Top ten holdings (%)

FundIndex
Amazon 4.85 1.88
Neptune Global Technology Fund 4.39 0.00
Rapid7 4.31 0.00
Alphabet 4.29 1.81
CME Group 4.17 0.17
Twilio 3.98 0.00
RingCentral 3.57 0.00
Intuitive Surgical 3.10 0.14
Visa 3.04 0.75
Gallagher 3.01 0.04

Sector (%)

FundIndex
Information technology 39.3 16.6
Financials 19.3 15.8
Communication services 11.6 8.5
Consumer discretionary 11.4 10.5
Healthcare 8.6 12.4
Materials 3.5 4.5
Consumer staples 3.4 8.6
Industrials 1.2 11.1
Alternatives 0.6 0.0
Energy 0.2 5.4
Utilities 0.1 3.3
Cash 0.8000 0.0

Region (%)

FundIndex
North America 66.5 66.8
UK 10.3 5.5
Emerging Markets 10.0 0.2
Japan 7.5 8.0
Europe ex UK 2.7 15.3
Asia Pacific ex Japan 2.2 4.2
Cash 0.8000 0.0

Asset class (%)

Equity 95.5
Private Equity 3.1
Alternatives 0.6
Cash 0.8

Top ten holdings (%)

FundIndex
Amazon 4.85 1.88
Neptune Global Technology Fund 4.39 0.00
Rapid7 4.31 0.00
Alphabet 4.29 1.81
CME Group 4.17 0.17
Twilio 3.98 0.00
RingCentral 3.57 0.00
Intuitive Surgical 3.10 0.14
Visa 3.04 0.75
Gallagher 3.01 0.04

Sector (%)

FundIndex
Information technology 39.3 16.6
Financials 19.3 15.8
Communication services 11.6 8.5
Consumer discretionary 11.4 10.5
Healthcare 8.6 12.4
Materials 3.5 4.5
Consumer staples 3.4 8.6
Industrials 1.2 11.1
Alternatives 0.6 0.0
Energy 0.2 5.4
Utilities 0.1 3.3
Cash 0.8000 0.0

Region (%)

FundIndex
North America 66.5 66.8
UK 10.3 5.5
Emerging Markets 10.0 0.2
Japan 7.5 8.0
Europe ex UK 2.7 15.3
Asia Pacific ex Japan 2.2 4.2
Cash 0.8000 0.0

Asset class (%)

Equity 95.5
Private Equity 3.1
Alternatives 0.6
Cash 0.8

    Active share

    Active share 90.1%

    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 62

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q2 2019

    Market overview

    It was a volatile quarter thanks to the re-escalation in the US/China trade war. Donald Trump’s decision to re-impose $200bn of tariffs on Chinese goods weighed heavily on investor sentiment, as did his decision to impose tariffs on Mexico (though these were lifted shortly after). This meant emerging markets, led by China, considerably underperformed developed markets as investors became nervous about the growth impact on the world’s second largest economy. However, the US Federal Reserve’s stance on monetary policy became even more dovish over the quarter, which in turn led to strong bifurcation in markets with longer duration equities (such as classic bond proxies or disruptive structural growth companies) delivering strong returns and value stocks (or those with links to global economic growth) underperforming.

    Portfolio positioning

    We continue to see an attractive backdrop for equities in the US and we have retained our significant weighting here. The portfolio’s overweight to the financials sector was a notable contributor to the Fund’s performance over the quarter, both in terms of sector allocation and stock selection effects as high conviction holdings such as CME Group, Ping An insurance, and Arthur J Gallagher & Co. continued to perform strongly. The portfolio’s largest overweight remains towards the technology sector, which was a strong contributor in Q1 and continued be a positive driver in Q2, though the underperformance of a few key stocks unfortunately meant the sector was overall a slight detractor on Fund performance in the quarter. We remain confident in the sector going forward and will continue to maintain our overweight position, though are looking to diversify our holdings within the sector to reduce stock-specific risk. Other key positive contributors to performance include our underweighting in real estate, energy, and consumer staples; detractors included our underweight position in the materials sector and certain individual stocks within the health-care and communication services sectors.

    Outlook

    Despite the re-escalation in the US/China trade war, we remain optimistic in our outlook for the global economy. We believe the macroeconomic backdrop remains supportive, particularly within emerging markets where valuations remain low economic growth continues to improve. We maintain our view that Chinese growth will improve in the second half of the year as the authorities’ monetary and fiscal loosening begin to take effect despite the recent uncertainty surrounding US tariffs.

    Robin Geffen

    Fund Manager

    The portfolio’s overweight to the financials sector was a notable contributor to the Fund’s performance over the quarter, both in terms of sector allocation and stock selection

    Related event

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 640.20 1.30 20/08/2019
    A Acc GBP 559.80 1.28 20/08/2019

    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
    31/07/2019
    Quarterly Commentary
    30/06/2019
    Key Investor Information Document
    07/08/2019

    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

    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

    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