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 -6.28 0.06 1.61 20.86 31.18 58.20
Benchmark -5.41 3.90 5.70 54.49 79.68 120.61
IA sector -4.37 -1.25 0.15 36.58 46.29 75.20
IA rank 47/54 21/53 19/52 36/41 29/33 26/29
Quartile 4 2 2 4 4 4
Large chart

Calendar year performance (%)

2013 2014 2015 2016 2017
Fund 24.08 5.13 3.18 11.12 6.90
Benchmark 25.00 12.07 5.45 29.01 12.42
IA sector 21.02 7.79 3.28 23.65 10.46
IA rank 10/30 25/36 23/39 39/44 43/50
Quartile 2 3 3 4 4

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 (%)

2013 2014 2015 2016 2017
Fund 24.08 5.13 3.18 11.12 6.90
Benchmark 25.00 12.07 5.45 29.01 12.42
IA sector 21.02 7.79 3.28 23.65 10.46
IA rank 10/30 25/36 23/39 39/44 43/50
Quartile 2 3 3 4 4

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 31/10/2018

Top ten holdings (%)

FundIndex
Microsoft 3.89 2.02
Constellation Software 3.33 0.04
Wells Fargo 3.29 0.64
Facebook 3.29 0.95
UnitedHealth Group 3.22 0.65
American Tower Corporation 3.21 0.18
JPMorgan Chase 3.20 0.96
CME Group 3.19 0.16
Starbucks 3.14 0.21
SunTrust Banks 3.09 0.08

Sector (%)

FundIndex
Financials 23.0 16.5
Information technology 18.7 15.5
Communication services 13.0 8.3
Industrials 11.7 11.0
Healthcare 10.5 13.1
Consumer discretionary 8.0 10.2
Materials 7.2 4.6
Real estate 3.2 3.0
Utilities 2.0 3.1
Consumer staples 1.9 8.6
Energy 0.8 6.3

Region (%)

FundIndex
North America 71.6 65.8
Emerging Markets 8.3 0.2
UK 7.2 6.0
Japan 6.2 8.4
Asia Pacific ex Japan 4.1 4.0
Europe ex UK 2.6 15.6

Top ten holdings (%)

FundIndex
Microsoft 3.89 2.02
Constellation Software 3.33 0.04
Wells Fargo 3.29 0.64
Facebook 3.29 0.95
UnitedHealth Group 3.22 0.65
American Tower Corporation 3.21 0.18
JPMorgan Chase 3.20 0.96
CME Group 3.19 0.16
Starbucks 3.14 0.21
SunTrust Banks 3.09 0.08

Sector (%)

FundIndex
Financials 23.0 16.5
Information technology 18.7 15.5
Communication services 13.0 8.3
Industrials 11.7 11.0
Healthcare 10.5 13.1
Consumer discretionary 8.0 10.2
Materials 7.2 4.6
Real estate 3.2 3.0
Utilities 2.0 3.1
Consumer staples 1.9 8.6
Energy 0.8 6.3

Region (%)

FundIndex
North America 71.6 65.8
Emerging Markets 8.3 0.2
UK 7.2 6.0
Japan 6.2 8.4
Asia Pacific ex Japan 4.1 4.0
Europe ex UK 2.6 15.6

    Active share

    Active share 86.1%

    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 42

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q3 2018

    Market overview

    Global markets finished the third quarter up over 6%, with strong fundamental data driving market strength. Within this, mid-cap stocks performed modestly ahead of their larger-cap brethren, with emerging markets significantly underperforming developed markets. We used emerging market weakness to build a new position in Tencent, a Chinese company operating in a market with strong barriers to entry and plenty of opportunities to invest cash at attractive returns. The company is now trading 40% off its highs earlier in the year and offers an attractive return/reward proposition, even though it is transitioning through short-term regulatory issues. Importantly, the companies’ cloud capabilities and monetisation of key platforms are underappreciated by the market, so for our investment horizon of 3 – 5 years, Tencent offers an attractive investment. Tencent is not a typical dividend-focused fund holding, however, we prefer to invest in companies that are growing earnings and dividends faster than the industry average and importantly, has attractive opportunities to deploy capital over the long-term.

    Fund attribution

    Strong performance over the quarter came from Lowe’s and Apple, the latter, the world’s largest company, which benefited from stronger than expected demand for key Apple products. Lowe’s, a new position in the second quarter, performed strongly as management released more information on their strategic plan to restructure the business. Lowe’s has significantly underperformed Home Depot over the last 10 years and with a change of management and a shift in corporate focus, we continue to see plenty of upside. Rising rates and volatile earnings will ensure the stock price continues to be volatile, however over the long term, we expect management to cut costs and drive operational leverage across to the business to create shareholder value. This outperformance was outweighed by two stocks in particular: Howden Joinery and Anheuser-Busche InBev (ABI). Howden Joinery underperformed due to increased concerns over UK consumer sentiment and slowing housing activity. Furthermore, with the uncertainty in Brexit negotiations, we made the decision to exit the position. ABI suffered from soft sales in North America and integration issues, however, we expect these to be transitory problems and will consider adding to our position if the stock price continues to weaken. The investment thesis for ABI remains intact with emerging market growth, in particular, underappreciated by the market and clouded by the integration of Anheuser-Busch and InBev.

    Outlook

    As we enter the final quarter of the year, we are optimistic about the global economy. We continue to focus on high quality, cash generative companies which have a clear capacity for shareholder returns.

    Storm Uru

    Fund Manager

    We continue to focus on high quality, cash generative companies which have a clear capacity for continued dividend growth

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 160.20 0.44 14/12/2018
    C Inc GBP 133.10 0.45 14/12/2018
    F Acc GBP 163.00 0.49 14/12/2018
    F Inc GBP 136.50 0.44 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 GB00B9225P64 B9225P6 NEPGIBA:LN 1.20
    C Inc GBP GB00B91RFZ23 B91RFZ2 NEPGIBI:LN 1.20
    F Acc GBP GB00B91SJC09 B91SJC0 NEPGIAA:LN 1.20
    F Inc GBP GB00B8JCK028 B8JCK02 NEPGIAI:LN 1.20

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