Investment objective

The investment objective of the Neptune Japan Opportunities 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 (%) 0.87
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00B3Z0Y815
Bloomberg NEJPOCG:LN
SEDOL B3Z0Y81

Fund managers

Chris Taylor

Fund Manager

Storm Uru

Deputy Manager
  • Role at Neptune

    Fund Manager

  • Time at Neptune

    4 years

  • Research focus

    Industrials

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 5 yrs 10 yrs 15 yrs Launch
Fund 1.3 7.7 -13.1 22.6 10.7 38.9 235.1 325.1
Benchmark 4.1 11.6 1.0 29.4 76.2 141.4 177.7 230.3
IA sector 4.2 13.6 0.1 29.5 73.2 139.6 149.7 192.7
IA rank 69/73 66/73 73/73 60/70 61/61 50/50 4/34 6/30
Quartile 4 4 4 4 4 4 1 1
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund 5.3 -2.2 2.6 26.9 -24.1
Benchmark 2.7 18.2 23.4 15.6 -8.4
IA sector 1.0 16.7 22.5 18.7 -11.5
IA rank 4/58 62/62 66/69 9/71 72/73
Quartile 1 4 4 1 4

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. Launch date used is 30/09/2002, which is the launch of the A Accumulation share class. The C Accumulation share class was launched on 03/10/2012, so during the period from 30/09/2002 to 03/10/2012 the performance record is based on the pre-existing A Accumulation share class. 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 Japan and the benchmark is TOPIX 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.

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund 5.3 -2.2 2.6 26.9 -24.1
Benchmark 2.7 18.2 23.4 15.6 -8.4
IA sector 1.0 16.7 22.5 18.7 -11.5
IA rank 4/58 62/62 66/69 9/71 72/73
Quartile 1 4 4 1 4

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. Launch date used is 30/09/2002, which is the launch of the A Accumulation share class. The C Accumulation share class was launched on 03/10/2012, so during the period from 30/09/2002 to 03/10/2012 the performance record is based on the pre-existing A Accumulation share class. 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 Japan and the benchmark is TOPIX 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.

Portfolio

Data as at 31/07/2019

Top ten holdings (%)

FundIndex
SUMCO 5.91 0.08
Nintendo 5.23 1.02
Bandai Namco 4.52 0.27
Keyence 4.49 1.38
Toyota Motor 3.01 3.49
Nippon Paint 2.86 0.17
ORIX 2.77 0.46
Okuma Corporation 2.76 0.03
Shin-Etsu 2.71 0.86
Hitachi 2.67 0.78

Sector (%)

FundIndex
Industrials 30.2 22.7
Information technology 18.5 11.2
Materials 17.8 6.4
Consumer discretionary 11.7 17.7
Financials 10.4 10.4
Communication services 5.2 8.7
Real estate 3.8 2.9
Energy 2.4 0.9
Consumer staples 0.0 8.7
Healthcare 0.0 8.6
Utilities 0.0 1.7

Top ten holdings (%)

FundIndex
SUMCO 5.91 0.08
Nintendo 5.23 1.02
Bandai Namco 4.52 0.27
Keyence 4.49 1.38
Toyota Motor 3.01 3.49
Nippon Paint 2.86 0.17
ORIX 2.77 0.46
Okuma Corporation 2.76 0.03
Shin-Etsu 2.71 0.86
Hitachi 2.67 0.78

Sector (%)

FundIndex
Industrials 30.2 22.7
Information technology 18.5 11.2
Materials 17.8 6.4
Consumer discretionary 11.7 17.7
Financials 10.4 10.4
Communication services 5.2 8.7
Real estate 3.8 2.9
Energy 2.4 0.9
Consumer staples 0.0 8.7
Healthcare 0.0 8.6
Utilities 0.0 1.7

    Active share

    Active share 84.6%

    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 42

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q2 2019

    Market overview

    TOPIX, in line with the rest of the world’s markets, slipped lower during the second half of the quarter. Initially, across the wholes of April, the index traded between 1,600 and 1,620 before falling by around 100 points after the extended Golden Week holiday to celebrate the new Emperor’s accession. This reflected the escalation of tariffs upon Chinese imports by the US as well as fears of this triggering a slowdown in both Global GDP and World Trade growth rates.

    In addition early May saw the start of company full year earnings announcements accompanied by their official projections for the current year. The latter triggered widespread reflex forecast downgrades by the analytical community which meant thereafter the index spent the next 2 months ranging between 1,500 and 1,560 as investors were in turn optimistic or pessimistic regarding the future.

    Portfolio attribution

    The Fund’s underperformance in the quarter can almost entirely be attributed to the portfolio’s yen hedge, with sterling falling c.5% versus the yen as a result of continued political and economic uncertainty in the UK. The underlying equity portfolio outperformed the wider market and this came principally from the Fund’s materials and communications sectors, the first through being overweight and outperforming with particularly strong contributions from Kansai Paint, Shin-etsu Chemicals and Toray whilst the second sector’s returns were primarily driven by Nintendo’s strong gains. Otherwise the Fund’s underweighting in the defensive sectors, namely consumer staples and healthcare in theory held back the potential gains, as did having a bigger than Index exposure to industrials. In the latter, our domestic construction related holdings fell almost 20%, namely Taisei, Haseko and Sumitomo-Mitsui Construction. That said the Fund also benefited from the broadly better returns, ie. lower losses, made by the larger capitalized stocks whilst the mid and smaller fared worse.

    Outlook

    In the short term, we expect the market to remain stable with sentiment remaining volatile unless there is a significant deterioration in US/China trade talks. Current economic news suggests that the world is passing through the low point of its recent slowdown, which should help the market recover. Our outlook for the underlying portfolios remain very positive. Recent market moves further illustrate that many investors wrongly equate falling global trade to slowing global growth, but we expect the latter to surprise on the upside over the short to medium term. More importantly, though, the portfolios continue to trade at a significant discount to the wider market yet offer considerably stronger earnings growth. In our view, over the long-term, valuation and company fundamentals drive equity returns.

    Chris Taylor

    Fund Manager

    The Fund’s underperformance in the quarter can almost entirely be attributed to the portfolio’s yen hedge, with sterling falling c.5% versus the yen

    Related event

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 190.30 1.01 20/08/2019
    C Acc USD 122.20 0.58 20/08/2019
    A Acc GBP 383.40 0.97 20/08/2019
    A Acc USD 115.20 0.61 20/08/2019
    B Acc GBP 410.20 0.98 20/08/2019
    D Acc GBP 112.50 0.99 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 GB00B3Z0Y815 B3Z0Y81 NEJPOCG:LN 0.87
    C Acc USD GB00B60T5J23 B60T5J2 NJPOBAU:LN 0.86
    A Acc GBP GB0032076043 3207604 CFNJOAA:LN 1.73
    A Acc USD GB00B60T5H09 B60T5H0 NJPOAAU:LN 1.72
    B Acc GBP GB0032076159 3207615 CFNJOBA:LN 1.23
    D Acc GBP GB00BFZC7603 BFZC760 NEJPDJY:LN 0.77

    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