Overview

The Neptune Global Income Fund is designed for investors seeking regular equity income and long-term growth from a global portfolio. Leveraging Neptune’s global sector research, its income share classes pay distributions four times a year from a concentrated portfolio of stocks identified by the fund manager as being able to grow their dividends significantly. The Fund could be held as a more cautious alternative to traditional global growth funds, or by investors who want to diversify their income sources outside the UK while retaining the potential for capital growth.

Investment objective

To generate rising levels of income, with the potential for capital growth also. The Fund invests in global companies’ shares and the manager takes a high conviction approach, leading to a focused portfolio of holdings selected at their discretion.

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

Ongoing charge (%) 1.20
Net yield (%) -
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00B9225P64
Bloomberg NEPGIBA:LN
SEDOL B9225P6

Fund managers

Storm Uru

Fund Manager
  • Role at Neptune

    Fund Manager

  • Time at Neptune

    4 years

  • Research focus

    Industrials

Robin Geffen

Assistant Manager

George Boyd-Bowman

Assistant Manager
  • Role at Neptune

    Investment Director, Head of US Equities

  • Time at Neptune

    8 years

  • Research focus

    Financials

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs Launch
Fund 2.7 12.7 15.6 31.1 38.8 69.0
Benchmark 3.5 10.1 12.6 52.1 82.6 127.9
IA sector 2.2 8.1 8.6 35.0 50.4 80.8
IA rank 22/56 2/56 6/54 33/46 30/37 24/29
Quartile 2 1 1 3 4 4
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund 5.1 3.2 11.1 6.9 -5.2
Benchmark 12.1 5.5 29.0 12.4 -2.5
IA sector 7.7 3.1 23.5 10.7 -5.7
IA rank 26/37 23/41 40/46 45/51 25/54
Quartile 3 3 4 4 2

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 Global Equity Income and the benchmark is MSCI World 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. Investments in emerging markets may be higher risk and more volatile than investments in developed markets.

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund 5.1 3.2 11.1 6.9 -5.2
Benchmark 12.1 5.5 29.0 12.4 -2.5
IA sector 7.7 3.1 23.5 10.7 -5.7
IA rank 26/37 23/41 40/46 45/51 25/54
Quartile 3 3 4 4 2

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 Global Equity Income and the benchmark is MSCI World 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. Investments in emerging markets may be higher risk and more volatile than investments in developed markets.

Portfolio

Data as at 31/03/2019

Top ten holdings (%)

FundIndex
Moody's 3.66 0.08
UnitedHealth Group 3.53 0.60
Roper 3.47 0.00
Alphabet 3.42 1.81
American Tower Corporation 3.41 0.22
Microsoft 3.41 2.16
Tencent 3.35 0.00
Apple 3.30 2.26
Deutsche Börse 3.20 0.04
Oriflame 2.98 0.00

Sector (%)

FundIndex
Information technology 18.2 15.9
Financials 16.3 15.6
Communication services 11.5 8.3
Industrials 8.9 11.1
Healthcare 8.6 12.9
Consumer staples 8.0 8.6
Consumer discretionary 7.3 10.4
Materials 6.3 4.6
Energy 4.6 6.0
Utilities 4.2 3.4
Real estate 3.4 3.3
Cash 2.7000 0.0

Region (%)

FundIndex
North America 55.9 65.8
Asia Pacific ex Japan 11.5 4.3
Emerging Markets 10.7 0.2
Japan 7.5 8.2
Europe ex UK 6.2 15.6
UK 5.5 5.8
Cash 2.7000 0.0

Top ten holdings (%)

FundIndex
Moody's 3.66 0.08
UnitedHealth Group 3.53 0.60
Roper 3.47 0.00
Alphabet 3.42 1.81
American Tower Corporation 3.41 0.22
Microsoft 3.41 2.16
Tencent 3.35 0.00
Apple 3.30 2.26
Deutsche Börse 3.20 0.04
Oriflame 2.98 0.00

Sector (%)

FundIndex
Information technology 18.2 15.9
Financials 16.3 15.6
Communication services 11.5 8.3
Industrials 8.9 11.1
Healthcare 8.6 12.9
Consumer staples 8.0 8.6
Consumer discretionary 7.3 10.4
Materials 6.3 4.6
Energy 4.6 6.0
Utilities 4.2 3.4
Real estate 3.4 3.3
Cash 2.7000 0.0

Region (%)

FundIndex
North America 55.9 65.8
Asia Pacific ex Japan 11.5 4.3
Emerging Markets 10.7 0.2
Japan 7.5 8.2
Europe ex UK 6.2 15.6
UK 5.5 5.8
Cash 2.7000 0.0

    Active share

    Active share 86.5%

    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 38

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q4 2018

    Market overview

    Volatility returned to the global markets in the fourth quarter, with most markets retracing gains for the year. Weakness in energy markets spread to all areas of the markets as Chinese economic growth concerns resurfaced. Political deadlock added to economic growth uncertainty with US/China trade tensions escalating after strong rhetoric from both sides. Whilst the performance of the Fund was disappointing, it performed in line with the MSCI World Index. Importantly, we invest for the long term so over the period we took the opportunity to increase our positions in companies where valuations offered attractive entry points given the wider market volatility in the quarter.

    Portfolio attribution

    In particular, Apple’s significant share price declines offered a chance for us to increase our position in a company that has a superior business model, is exceptionally well managed, and Tim Cook can reinvest the naturally occurring excess capital. During the period, Coty and General Electric both endured management transitions resulting in weak stock price action. However, from a long-term perspective, both companies have strong franchises and significant value creation opportunities ahead. Nevertheless, we will continue to monitor these positions closely due to the uncertainty surrounding both investments.

    In terms of sector exposure, we retain our large underweight position in energy as the oil production cost curve lowers as a result of productivity enhancements in the shale oil industry. Furthermore, the prospects for attractive long-term capital returns is diminishing as the shift to alternative energy sources gains steam. During the period, we sold out of our Wells Fargo holding due to ESG factors; in particular, governance issues at the bank continue to plague both its reputation and operating efficiency and we do not believe management are making sufficient progress to remedy deficiencies within the business.

    Outlook

    Looking forward, we believe the US offers the most attractive opportunities after its most recent pullback and we remain positive on economic activity in 2019 but remain wary of companies with leveraged balance sheets and low pricing power.

    Storm Uru

    Fund Manager

    We invest for the long term so over the period we took the opportunity to increase our positions in companies where valuations offered attractive entry points given the wider market volatility

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 175.70 -0.06 18/04/2019
    C Inc GBP 144.20 -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 GB00B9225P64 B9225P6 NEPGIBA:LN 1.20
    C Inc GBP GB00B91RFZ23 B91RFZ2 NEPGIBI:LN 1.20

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