Overview

The Neptune Global Technology Fund is a focused portfolio of 40-60 global technology stocks. The Fund gives investors exposure to a hugely innovative sector that we believe will be at the forefront of future economic and business growth trends, influencing and permeating every industry. From mega caps to niche players, Fund Manager Robin Geffen selects those companies that he believes offer the best opportunities for continued capital growth.

Investment objective

To generate capital growth by investing predominantly in a concentrated portfolio of between 40 – 60 securities considered to be in the technology sector, without regional restriction.

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 GB00BYXZ5N79
Bloomberg NEGLBTC:LN
SEDOL BYXZ5N7

Fund managers

Robin Geffen

Fund Manager

Will Geffen

Assistant Manager
  • Role at Neptune

    Assistant Fund Manager

  • Time at Neptune

    <1 year

  • Research focus

    Technology

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs Launch
Fund 3.6 20.0 15.2 115.7 127.6
Benchmark 7.6 27.0 17.4 105.1 126.7
IA sector 5.0 20.8 10.8 81.8 94.4
IA rank 15/16 11/15 5/15 3/13 3/13
Quartile 4 3 2 1 1
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund - - 28.2 28.4 14.0
Benchmark - - 33.6 26.7 3.8
IA sector - - 27.4 23.3 1.1
IA rank - - 7/13 6/14 1/15
Quartile - - 2 2 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 Technology and Telecomms and the benchmark is MSCI World Information Technology 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.

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 - - 28.2 28.4 14.0
Benchmark - - 33.6 26.7 3.8
IA sector - - 27.4 23.3 1.1
IA rank - - 7/13 6/14 1/15
Quartile - - 2 2 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 Technology and Telecomms and the benchmark is MSCI World Information Technology 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.

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 30/06/2019

Top ten holdings (%)

FundIndex
Microsoft 9.50 14.50
Apple 6.21 13.86
Visa 5.00 4.51
Amazon 4.73 0.00
Alphabet 4.68 0.00
Facebook 4.00 0.00
CISCO Systems 3.81 3.58
Mastercard 3.73 3.59
Twilio 3.07 0.23
Rapid7 2.98 0.00

Country (%)

FundIndex
US 87.8 84.9
China 6.2 0.0
Japan 4.1 5.5
UK 1.7 0.4
Germany 0.0 2.6
Netherlands 0.0 1.9
Canada 0.0 1.2
France 0.0 1.1
Sweden 0.0 0.6
Spain 0.0 0.5
Israel 0.0 0.5
Cash 0.2000 0.0

Top ten holdings (%)

FundIndex
Microsoft 9.50 14.50
Apple 6.21 13.86
Visa 5.00 4.51
Amazon 4.73 0.00
Alphabet 4.68 0.00
Facebook 4.00 0.00
CISCO Systems 3.81 3.58
Mastercard 3.73 3.59
Twilio 3.07 0.23
Rapid7 2.98 0.00

Country (%)

FundIndex
US 87.8 84.9
China 6.2 0.0
Japan 4.1 5.5
UK 1.7 0.4
Germany 0.0 2.6
Netherlands 0.0 1.9
Canada 0.0 1.2
France 0.0 1.1
Sweden 0.0 0.6
Spain 0.0 0.5
Israel 0.0 0.5
Cash 0.2000 0.0

    Active share

    Active share 65.0%

    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 43

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q1 2019

    Market overview

    The first quarter has seen a large rally for equity markets as a whole due to an increasingly dovish Fed, indicating an end to rate hikes for the time being (and possibly future cuts), along with increased optimism around US/China trade talks. There are, however, also macroeconomic indicators that have given equity investors caution, including continued uncertainty over Brexit, a slowdown in Europe (particularly Germany) and more recently, an inversion of the 3 month/10 year US treasury yield curve, popularly viewed (at least in the US) as an indicator of a future recession. Against this backdrop, technology stocks have performed very well, with the Index rising 17.0% in the first quarter alone, driven by a return to the more general optimism that saw tech do so well in the mid part of 2018.

    Fund attribution

    The relative underperformance in the first quarter can largely be attributed to the Fund’s temporary exposure to exchange traded put options, used as a risk management tool, and deployed when we believe market conditions and extended valuations warrant additional protection. These options, deployed in the latter half of last year, helped to protect gains and contribute to the Fund’s outperformance in 2018. Despite selling to take profits early this year, the options contributed negatively to the Fund’s performance in Q1.

    On a total return basis, stock selection contributed significantly to the Fund’s performance. Cybersecurity is one such theme, and between Fortinet (+16.5%), Palo-Alto Networks (+26.0%), Mimecast (+37.6%), Cyberark (+56.9%), and Rapid7 (+58.7%), our exposure to this sub-sector amounted to 3.2% of the Fund’s outperformance. We believe this outperformance should continue as cybersecurity becomes an increasingly important part of growing IT expenditure due to new regulatory tailwinds such as GDPR measures, as well as a growing focus on cybersecurity in general risk management.

    Another key theme in the Fund is communication technology, particularly communication software. One example of this is Twilio (+41.4%), a developer-centred platform for building and implementing communication software. The company continues to impress, with management successfully executing a bold strategy to rapidly expand into this new market space and cut a path as an industry leader. Another company of note in this space is Zendesk (+42.3%), a user of the Twilio development platform, which provides businesses with efficient customer-facing helpdesk solutions. Pegasystems (+32.9%), which develops software to manage customer relationships, also performed well over this period. Between these companies as well as other communication software providers, Ringcentral (+27.8%), and 8X8 (+9.44%), the sub-sector added +3.6% to active return over the benchmark.

    As can be reasonably expected, relative underperformance can be attributed to not owning a number of stocks that performed well in the quarter. Such stocks include Xerox (+59.4%) and First Data (+51.8%).

    Outlook

    We remain optimistic on the potential of technology (and technologically-adept) companies to continue to outperform the market in the long term. We also believe in our ability to pick distinct winners in this space. However, as ever, we remain vigilant both in regards to valuations becoming stretched, where over-exuberance may not be backed by fundamentals, as well as the ever-present potential for swift disruption. With this cautious vigilance, combined with the capacity to act with conviction on what we see as strong evidence of value-creation driven by technology, we hold that our careful selection and attentive active management will allow us to continue to outperform over the long run.

    Robin Geffen

    Fund Manager

    We believe this outperformance should continue as cybersecurity becomes an increasingly important part of growing IT expenditure

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 241.10 -0.74 18/07/2019

    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
    30/06/2019
    Quarterly Commentary
    31/03/2019
    Key Investor Information Document
    08/02/2019

    Codes & fees

    ISIN SEDOL Bloomberg Ongoing charge (%)
    C Acc GBP GB00BYXZ5N79 BYXZ5N7 NEGLBTC:LN 0.93

    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

    Veronika Blazicek

    Sales Executive - UK & Europe

    Tel: +44 20 3249 0189

    Mob: +44 7850 770 480

    Email: veronika.blazicek

    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