Investment objective

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

Strategy

The Fund invests in securities using a combination of economic, industry and stock specific analysis.

Ongoing charge (%) 1.30
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00B29MXF68
Bloomberg NEGMABA:LN
SEDOL B29MXF6

Fund managers

Robin Geffen

Fund Manager

Storm Uru

Assistant Manager
  • Role at Neptune

    Fund Manager

  • Time at Neptune

    4 years

  • Research focus

    Industrials

Will Geffen

Assistant Manager
  • Role at Neptune

    Assistant Manager

  • Time at Neptune

    <1 year

  • Research focus

    Technology

Performance since 01/07/2016^

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs Launch
Fund 10.7 31.3 17.6 78.5 90.0
Benchmark 4.3 22.6 6.0 40.9 49.5
IA sector 4.7 22.3 9.6 42.5 51.5
IA rank 1/327 11/322 36/317 4/282 5/282
Quartile 1 1 1 1 1
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund - - - 25.0 2.2
Benchmark - - - 12.9 -7.8
IA sector - - - 13.9 -5.7
IA rank - - - 11/290 7/306
Quartile - - - 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 Global and the benchmark is MSCI World SMID Cap 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.

^Please note that on 1 July 2016 the name of this Fund was changed to Neptune Global Smaller Companies and its investment objective and benchmark were altered. This should be considered when viewing the Fund’s past performance.

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 - - - 25.0 2.2
Benchmark - - - 12.9 -7.8
IA sector - - - 13.9 -5.7
IA rank - - - 11/290 7/306
Quartile - - - 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 Global and the benchmark is MSCI World SMID Cap 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.

^Please note that on 1 July 2016 the name of this Fund was changed to Neptune Global Smaller Companies and its investment objective and benchmark were altered. This should be considered when viewing the Fund’s past performance.

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 (%)

CyberArk 5.71
Rapid7 5.60
RingCentral 5.42
Twilio 5.42
Zendesk 5.41
Mimecast  4.69
8X8 4.60
JAFCO 4.34
GBG 3.67
Pegasystems 3.57

Sector (%)

Information technology 52.6
Healthcare 13.8
Financials 12.8
Industrials 10.2
Consumer staples 4.8
Communication services 4.6
Alternatives 0.8
Cash 0.4

Region (%)

North America 60.7
Japan 17.8
UK 13.8
Europe ex UK 6.9
Asia Pacific ex Japan 0.4
Cash 0.4

Top ten holdings (%)

CyberArk 5.71
Rapid7 5.60
RingCentral 5.42
Twilio 5.42
Zendesk 5.41
Mimecast  4.69
8X8 4.60
JAFCO 4.34
GBG 3.67
Pegasystems 3.57

Sector (%)

Information technology 52.6
Healthcare 13.8
Financials 12.8
Industrials 10.2
Consumer staples 4.8
Communication services 4.6
Alternatives 0.8
Cash 0.4

Region (%)

North America 60.7
Japan 17.8
UK 13.8
Europe ex UK 6.9
Asia Pacific ex Japan 0.4
Cash 0.4

    Active share

    Active share 99.1%

    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 34

    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 attribution

    As in Q1, we continue to see an attractive backdrop for equities in the US and we have retained our significant weighting here. The portfolio’s significant overweight to the technology sector, which was a strong contributor to outperformance in Q1, continued to contribute positively through Q2, driven by the strong performance of our high conviction holdings in the likes of Tableau Software, Rapid7 and Twilio. A key detractor within th tech sector, however, was Intelligent Systems, a company who we took a position in on improved growth prospects following news that it was picked by Goldman Sachs to help handle a credit-card partnership with Apple – a highly valuable contract that appeared sticky, potentially scalable, and providing of a solid revenue stream going forward. We exited the company at a slight loss following a negative short report highlighting previously undiscovered operational risk potential that we believed made the stock inappropriate for the Fund going forward. This loss was more than offset by the gains in our other tech positions. Other positive contributors to the Fund were our overweighting of the energy sector, zero weightings of utilities and real estate, and stock selection within communication services. Key detractors include industrials (primarily due to the poor performance of Japanese stocks), healthcare (primarily due to the poor performance of Livanova – a company we ended up exiting), and consumer staples.

    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.

    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. At a portfolio level, we continue focus on small-caps that are at the forefront of technological disruption within their given industries.

    Robin Geffen

    Fund Manager

    The portfolio’s significant overweight to the technology sector, which was a strong contributor to outperformance in Q1, continued to contribute positively through Q2

    Related event

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 183.30 1.05 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 GB00B29MXF68 B29MXF6 NEGMABA:LN 1.30

    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