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 (%) 1.06
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00BYXZ5N79
Bloomberg NEGLBTC:LN
SEDOL BYXZ5N7

Fund managers

Robin Geffen

Fund Manager

Ewan Thompson

Assistant Manager
  • Role at Neptune

    Investment Director, Co-Head of Emerging Market Equities

  • Time at Neptune

    12 years

  • Research focus

    Metals and Mining

Chris Taylor

Assistant Manager

George Boyd-Bowman

Assistant Manager
  • Role at Neptune

    Investment Director, Head of US Equities

  • Time at Neptune

    8 years

  • Research focus

    Financials

Nick Williams

Assistant Fund Manager
  • Role at Neptune

    Assistant Fund Manager

  • Time at Neptune

    3 years

  • Research focus

    Healthcare and Chemicals

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr Launch
Fund -10.68 16.65 17.14 94.10
Benchmark -6.80 14.72 13.94 97.31
IA sector -8.94 4.66 4.37 66.66
IA rank 11/15 1/15 1/15 4/13
Quartile 3 1 1 1
Large chart

Calendar year performance (%)

2013 2014 2015 2016 2017
Fund - - - 28.19 28.40
Benchmark - - - 33.57 26.73
IA sector - - - 27.37 23.34
IA rank - - - 7/13 6/14
Quartile - - - 2 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 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.

Calendar year performance (%)

2013 2014 2015 2016 2017
Fund - - - 28.19 28.40
Benchmark - - - 33.57 26.73
IA sector - - - 27.37 23.34
IA rank - - - 7/13 6/14
Quartile - - - 2 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 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.

Portfolio

Data as at 31/10/2018

Top ten holdings (%)

FundIndex
Apple 9.78 14.82
Microsoft 9.61 10.74
Amazon 8.81 0.00
Visa 4.40 3.39
Alphabet 4.00 9.14
Motorola Solutions 3.30 0.27
Mastercard 2.90 2.52
Nvidia  2.80 1.67
Twilio 2.70 0.00
Fortinet 2.60 0.16

Country (%)

FundIndex
US 92.7 85.2
China 3.7 0.0
Japan 2.1 5.4
UK 0.9 0.3
Germany 0.0 2.2
Ireland 0.0 1.4
Netherlands 0.0 1.3
Canada 0.0 0.8
France 0.0 0.8
Switzerland 0.0 0.6
Sweden 0.0 0.5
Cash 0.6 0.0

Top ten holdings (%)

FundIndex
Apple 9.78 14.82
Microsoft 9.61 10.74
Amazon 8.81 0.00
Visa 4.40 3.39
Alphabet 4.00 9.14
Motorola Solutions 3.30 0.27
Mastercard 2.90 2.52
Nvidia  2.80 1.67
Twilio 2.70 0.00
Fortinet 2.60 0.16

Country (%)

FundIndex
US 92.7 85.2
China 3.7 0.0
Japan 2.1 5.4
UK 0.9 0.3
Germany 0.0 2.2
Ireland 0.0 1.4
Netherlands 0.0 1.3
Canada 0.0 0.8
France 0.0 0.8
Switzerland 0.0 0.6
Sweden 0.0 0.5
Cash 0.6 0.0

    Active share

    Active share 58.1%

    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 39

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q3 2018

    Market overview

    Some established tech names underwent reclassification by GICS sector on 28 September with the introduction of the new communications services sector. This has absorbed both the old telecommunications sector and an assortment of tech and consumer names. Well-known names to have been reclassified include Alphabet, Facebook and Netflix to communication services, and eBay and other online marketplaces to consumer discretionary respectively.

    Despite uncertainty going into the event, the reclassification was largely a non-event on the day with no significant signs of the volume driven effects that some had suggested from passive rebalancing. These changes came into effect two days before Q3 end on 28 September; going forward it will be interesting to see whether GICS reclassification drives any real change in positioning in these names. Market sensitivity (beta) of the information technology GICS sector is predicted to fall after the repositioning, with a corresponding increase in the new communications services sector relative to the previous telecoms sector.

    Fund attribution

    Outperformance in the third quarter of 2018 was driven by both large positions in the mega-cap winners and by a number of our smaller-cap holdings. The Fund’s multi-cap portfolio construction approach has also served us well through the first half of the year; a particularly volatile period for the sector in which the Fund outperformed by a significant margin. Twilio (+53%) was again the single largest contributor to outperformance. The San Francisco-based company offers a software platform and communication service that allows application developers to incorporate communication (via SMS, voice call or social channels) into their applications seamlessly. Management continue to execute well on strategy in an underpenetrated end market.

    Cybersecurity continues to be an important theme in the Fund and privileged access management vendor Cyberark returned 31% during the quarter. We believe that cybersecurity will remain a strong theme as companies are required to comply with ever more stringent data protection laws, including the GDPR rules introduced in Europe. Furthermore, artificial intelligence beneficiary IQVIA performed well in the healthcare space returning 32%, acting as the second biggest individual contributor to outperformance.

    Leveraging machine learning algorithms across their database of medical records and data streams has allowed IQVIA to drive industry-leading growth. We believe that the increasing demand for efficiency in the US healthcare system provides a long runway for adoption of IQVIA services.

    Outlook

    Over the past five years, the technology sector has comprised 25% of the S&P 500’s market capitalisation, but has generated 57% of the total incremental free cash flow. We remain positive on the sector on the basis that this cash flow generation can continue as the economy shifts to a more digital footing. Valuing companies in the context of such transformational change presents challenges. We maintain discounted cash flow (DCF) valuation models for all of our holdings and sell down when the fundamentals cannot support the growth, margin and cash flow assumptions implicit in the share price. We have not yet reached that point.

    Robin Geffen

    Fund Manager

    Outperformance in the third quarter of 2018 was driven by both large positions in the mega-cap winners and by a number of our smaller-cap holdings.

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 195.60 -1.16 19/11/2018

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    Literature

    Codes & fees

    ISIN SEDOL Bloomberg Ongoing charge (%)
    C Acc GBP GB00BYXZ5N79 BYXZ5N7 NEGLBTC:LN 1.06

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