Overview

The Neptune India Fund gives investors access to one of the world’s most exciting, fastest growing markets. India is undergoing a period of rapid transformation, with a modernising economy and growing population leading to higher levels of domestic consumption. A nimble portfolio, Fund Manager Ewan Thompson seeks to identify the best investment opportunities across the market cap spectrum.

Ewan previously managed the Fund between July 2009 and November 2012. When not lead manager, Ewan has acted as an assistant on the Fund since January 2008.

Investment objective

To provide capital growth by investing mainly in Indian companies, selected at the manager's discretion.

There is no assurance that the investment objective will be achieved.

Ongoing charge (%) 1.31
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00B1L6DV51
Bloomberg NEPINDB:LN
SEDOL B1L6DV5

Fund managers

Ewan Thompson

Fund Manager
  • Role at Neptune

    Investment Director, Head of Emerging Market Equities

  • Time at Neptune

    13 years

  • Research focus

    Metals and Mining

Ruth Chambers

Assistant Manager
  • Role at Neptune

    Fund Manager

  • Time at Neptune

    3 years

  • Research focus

    Energy and Utilities

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs 10 yrs Launch
Fund 5.6 4.7 -2.3 36.6 78.6 130.1 136.3
Benchmark 3.7 9.1 13.2 58.4 80.8 136.3 182.6
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund 51.5 1.2 24.6 24.9 -13.1
Benchmark 31.6 -0.7 17.6 26.7 -1.5

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.

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 51.5 1.2 24.6 24.9 -13.1
Benchmark 31.6 -0.7 17.6 26.7 -1.5
IA sector 4.7 -3.9 28.3 10.3 -5.5
IA rank 8/200 88/215 95/222 22/225 202/233
Quartile 1 2 2 1 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.

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 31/05/2019

Top ten holdings (%)

FundIndex
Infosys Technologies 8.06 7.44
ICICI Bank 5.79 2.91
Reliance Industries 5.50 10.94
Blue Star 3.91 0.00
Housing Development Finance 3.88 10.29
Godrej Consumer Products 3.03 0.71
Larsen & Toubro 2.98 2.14
HDFC Bank 2.96 0.00
Ramco Cements  2.84 0.00
HCL Technologies 2.82 1.71

Sector (%)

FundIndex
Financials 34.8 25.5
Information technology 15.0 16.9
Materials 11.5 8.3
Industrials 10.0 4.5
Healthcare 7.9 4.5
Energy 7.5 15.8
Consumer discretionary 7.3 8.5
Consumer staples 3.0 10.1
Communication services 1.7 2.9
Real estate 1.3 0.0
Utilities 0.0 3.0

Top ten holdings (%)

FundIndex
Infosys Technologies 8.06 7.44
ICICI Bank 5.79 2.91
Reliance Industries 5.50 10.94
Blue Star 3.91 0.00
Housing Development Finance 3.88 10.29
Godrej Consumer Products 3.03 0.71
Larsen & Toubro 2.98 2.14
HDFC Bank 2.96 0.00
Ramco Cements  2.84 0.00
HCL Technologies 2.82 1.71

Sector (%)

FundIndex
Financials 34.8 25.5
Information technology 15.0 16.9
Materials 11.5 8.3
Industrials 10.0 4.5
Healthcare 7.9 4.5
Energy 7.5 15.8
Consumer discretionary 7.3 8.5
Consumer staples 3.0 10.1
Communication services 1.7 2.9
Real estate 1.3 0.0
Utilities 0.0 3.0

    Active share

    Active share 64.7%

    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 41

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q1 2019

    Market overview

    The Indian market has been somewhat volatile over the past year, and the first quarter of 2019 was no different. Whilst 2018 was largely driven by external factors such as US bond yields, the US dollar and crude oil prices (all of which cause problems for India as they rise, which they did last year), this year has more been a story of domestic factors, most importantly the General Election – during which nearly a billion people will go to the polls to choose the next government, which is currently under way. Famously, the election of 2014 – which saw the victory of Modi’s BJP party – saw a sustained subsequent rally in Indian equities on expectations of a pro-business government policy agenda. Indeed, four out of the last five elections have seen strong market performance in the run-up to the event as investors, frustrated by coalition government, have hoped for an administration with a clear mandate for reform. The upcoming election is somewhat unusual in that the current leadership is not a hamstrung coalition, yet the outcome remains of vital importance to the markets as to whether India will remain under a reform-led BJP government with a clear mandate, or see a return to coalition politics. To this end, many investors had responded negatively to polling earlier this year suggesting an unclear outcome – this in large part explains the weak performance of the Indian market at the start of this year.

    However, all of this has recently been turned on its head in the final run-up to voting – in large part a response to the recent military spat with Pakistan over Kashmir. In the wake of a bomb attack on an Indian army convoy on 14 February, events have led to a surge in support for the government and expectations for a BJP victory – with the market rallying robustly as it has moved to price in the more favourable outcome. Indeed, since mid-February, $10bn of foreign inflows have surged into the market in just one month, significantly eclipsing the $4.5bn of inflows during the entirety of 2018. This improving domestic political outlook has also come at a time where US bond yields have eased significantly and the ascent in the US dollar has moderated, both of which supporting emerging markets in the early months of this year.

    Portfolio attribution

    Overall, the Indian market returned 4.7% in the first quarter, somewhat behind wider emerging markets. The Neptune India Fund’s relative performance was driven by the financial sector, as banks performed strongly on the improved political outlook as well as optimism that the provisioning cycle at the large private sector banks had turned a corner. The sector is the largest in the benchmark and the Fund is significantly overweight, thereby generating strong outperformance in this part of the portfolio. In particular, the strong recovery of Yes Bank, which suffered a torrid 2018, was a major positive contributor to returns. The major offsetting factor was the Fund’s underweight position in the energy sector, primarily Reliance Industries, which performed very strongly during the quarter driven by the firmer oil price. There were no portfolio changes during the quarter.

    Ewan Thompson

    Fund Manager

    The Neptune India Fund’s relative performance was driven by the financial sector, as banks performed strongly

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 227.20 1.34 26/06/2019
    C Acc USD 107.00 0.75 26/06/2019
    A Acc USD 86.54 0.78 26/06/2019

    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
    31/05/2019
    Quarterly Commentary
    31/03/2019
    Key Investor Information Document
    08/02/2019

    Codes & fees

    ISIN SEDOL Bloomberg Ongoing charge (%)
    C Acc GBP GB00B1L6DV51 B1L6DV5 NEPINDB:LN 1.31
    C Acc USD GB00BWK1S243 BWK1S24 NEPINCU:LN 1.28
    A Acc USD GB00B60T6221 B60T622 NEPINDA:LN 2.29

    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