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

Ewan Thompson

Assistant Manager
  • Role at Neptune

    Investment Director, Head of Emerging Market Equities

  • Time at Neptune

    13 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

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs Launch
Fund 6.4 8.1 14.5 113.1 105.1
Benchmark 5.3 9.9 8.2 96.4 96.2
IA sector 3.8 10.7 8.1 81.5 78.2
IA rank 2/15 13/15 2/15 2/13 3/13
Quartile 1 4 1 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.

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.

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 28/02/2019

Top ten holdings (%)

FundIndex
Microsoft 7.80 13.45
Amazon 7.20 0.00
Apple 5.60 13.53
Alphabet 4.40 0.00
Visa 3.72 4.29
Twilio 3.55 0.00
Motorola Solutions 2.98 0.39
RingCentral 2.83 0.00
Mastercard 2.67 3.40
Mellanox Technologies 2.55 0.00

Country (%)

FundIndex
US 87.9 85.0
China 8.2 0.0
Japan 1.7 5.6
UK 1.5 0.3
Germany 0.0 2.4
Netherlands 0.0 1.9
Canada 0.0 1.1
France 0.0 1.0
Sweden 0.0 0.7
Finland 0.0 0.6
Spain 0.0 0.6
Cash 0.7000 0.0

Top ten holdings (%)

FundIndex
Microsoft 7.80 13.45
Amazon 7.20 0.00
Apple 5.60 13.53
Alphabet 4.40 0.00
Visa 3.72 4.29
Twilio 3.55 0.00
Motorola Solutions 2.98 0.39
RingCentral 2.83 0.00
Mastercard 2.67 3.40
Mellanox Technologies 2.55 0.00

Country (%)

FundIndex
US 87.9 85.0
China 8.2 0.0
Japan 1.7 5.6
UK 1.5 0.3
Germany 0.0 2.4
Netherlands 0.0 1.9
Canada 0.0 1.1
France 0.0 1.0
Sweden 0.0 0.7
Finland 0.0 0.6
Spain 0.0 0.6
Cash 0.7000 0.0

    Active share

    Active share 70.4%

    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

    Q4 2018

    Market overview

    The house macroeconomic outlook at the end of September indicated strong headwinds for the fourth quarter. This was due to a number of factors, such as sustained political uncertainty, with issues such as Brexit and the US-China trade war, combined with an increasingly hawkish Fed. After two quarters of strong US performance, in which the technology sector had led the charge, the decision was made to ensure that these gains were protected against the strong possibility of a downturn. In order to shield the Fund from overall market volatility, whilst maintaining good exposure to the technology sector and allowing superior stockpicking to continue to make gains, the Fund established a position in exchange traded index put options.

    Fund attribution

    The continued strong performance of the Fund through the tough market conditions of Q4 was mainly down to two factors: the effectiveness of the index put options in shielding the Fund through a turbulent end to 2018, and the continued strong performance of individual tech stocks.

    The put options were purchased toward the end of the preceding quarter, establishing a good price due to low volatility, good liquidity due to the (rising) popularity of the underlying index position, and positive market sentiment due to a long run of continued good performance. As result, when the market turned both in October and again in late December (December 2018 being the worst December for the Dow and S&P since 1931) and volatility rose, the Fund was well protected. Technology companies had seen a large portion of the gain in the market through the preceding quarters of 2018 and the Fund had captured the strong run of many of these winners, which had driven its prior outperformance. Thus these companies also bore a large portion of the blow on the downside as overall sentiment worsened. However, within the Fund, this blow was blunted as the volatility and poor index performances saw the options rise in value to counter some of the damage, protecting much of the gains made earlier in the year.

    Another source of outperformance in the fourth quarter of 2018 was driven again through positions in small and large cap growth stories. Twilio (+9.15%) again proved to be a big winner despite tough market conditions. The company, which offers a software platform that allows its customers to easily integrate various communication capabilities into their products, continued to impress with an excellent Q3 earnings report, seeing the stock shoot up and maintain a high price as many of its tech peers struggled.

    This reinforces our persisting view that this is a company that is able to execute competently in an underpenetrated end market. Another company which drove relative outperformance over the benchmark was Mellanox (+28.75%), a developer and supplier of high performance solutions with high-end semi-conductor based infrastructure products such as network and multicore processors.

    Outlook

    Looking ahead, the overall economic outlook remains cautious with high general uncertainty combined with the threat of a continued downturn and possible recession in the US. However, despite this short-term uncertainty, we remain extremely positive in the long-term outlook for the technology sector, not only in value terms with the technology sector generating 57% of the total incremental free cash flow in the past 5 years despite comprising of only 25% of the S&P 500’s market capitalisation, but also as a leading force in overall economic growth.

    The Fund remains well positioned to deal with the short-term market woes while still able to effectively capture exposure to the long term growth in the sector through effective stockpicking, in order to continue to generate sustained alpha.

    Robin Geffen

    Fund Manager

    We remain extremely positive in the long-term outlook for the technology sector

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 209.30 0.43 18/03/2019

    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 GB00BYXZ5N79 BYXZ5N7 NEGLBTC:LN 0.93

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