Overview

The Neptune Japan Opportunities Fund offers investors exposure to Japan’s multinational companies, many of which dominate their industries globally and derive most of their revenues from overseas. As a result, they are able to benefit from the translation benefits when the yen weakens, enabling faster revenue growth. The portfolio has a long-held currency hedge in place to protect potential gains should the yen weaken.

Investment objective

To provide capital growth by investing mainly in a focused portfolio of approximately 40-60 Japanese companies, selected at the manager's discretion.

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

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 -8.2 2.3 -18.6 13.0 15.6 41.5 209.3 304.1
Benchmark -0.8 4.5 -6.4 38.1 74.5 133.2 160.1 209.5
IA sector -2.0 5.9 -7.5 37.3 69.8 133.1 132.8 172.8
IA rank 74/74 64/74 74/74 70/70 62/62 49/49 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 1.1 16.8 22.6 18.5 -11.3
IA rank 5/59 63/63 67/70 9/72 76/77
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 1.1 16.8 22.6 18.5 -11.3
IA rank 5/59 63/63 67/70 9/72 76/77
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 31/05/2019

Top ten holdings (%)

FundIndex
Nintendo 5.27 1.02
SUMCO 5.13 0.06
Keyence 4.54 1.39
Bandai Namco 4.28 0.25
Toyota Motor 2.86 3.28
ORIX 2.70 0.47
Okuma Corporation 2.70 0.03
Nippon Paint 2.69 0.16
Taisei 2.68 0.20
Sumitomo Osaka Cement 2.62 0.04

Sector (%)

FundIndex
Industrials 31.1 22.8
Materials 17.7 6.2
Information technology 17.5 10.8
Consumer discretionary 11.2 17.4
Financials 10.5 10.6
Communication services 5.3 8.9
Real estate 4.1 3.0
Energy 2.6 0.9
Consumer staples 0.0 9.1
Healthcare 0.0 8.6
Utilities 0.0 1.7

Top ten holdings (%)

FundIndex
Nintendo 5.27 1.02
SUMCO 5.13 0.06
Keyence 4.54 1.39
Bandai Namco 4.28 0.25
Toyota Motor 2.86 3.28
ORIX 2.70 0.47
Okuma Corporation 2.70 0.03
Nippon Paint 2.69 0.16
Taisei 2.68 0.20
Sumitomo Osaka Cement 2.62 0.04

Sector (%)

FundIndex
Industrials 31.1 22.8
Materials 17.7 6.2
Information technology 17.5 10.8
Consumer discretionary 11.2 17.4
Financials 10.5 10.6
Communication services 5.3 8.9
Real estate 4.1 3.0
Energy 2.6 0.9
Consumer staples 0.0 9.1
Healthcare 0.0 8.6
Utilities 0.0 1.7

    Active share

    Active share 88.2%

    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

    Q1 2019

    Market overview

    The portfolio’s hedge on the yen contributed to approximately 3% points of performance over the first quarter of the year, whilst its equity holdings contributed to approximately 4%. However, the Fund’s overweight to the industrials, materials and IT sectors were slight detractors to the performance during the period.

    The TOPIX Index, in line with the rest of the world’s markets, staged a recovery from a poor final quarter of 2018. The Index began January at its low of approximately 1,450 and then traded steadily higher to reach 1,630 by the start of March. This can be partly attributed to more accommodative comments emanating from the US Federal Reserve regarding the path of US rate rises and similar news coming out of the US/China trade talks, and despite the oil price rising from $46 to $60 per barrel in the US. Thereafter, the Index spent the next 4 weeks ranging between 1,570 and 1,630 as investors were in turn optimistic or pessimistic regarding impending quarterly results.

    As to be expected, the bounce in investor confidence saw the smaller more speculative areas of the market do best, which meant the Mothers and JASDAQ indices led the performance tables. In the short term, we expect the market to remain stable ahead of the Japanese financial year end on the 31st March. Thereafter trading volumes should rebound ahead of the Q1 corporate earnings reporting season with sentiment remaining positive unless there is a sharp deterioration in US/China trade talks. Current economic news suggests that the world is passing through the low point of its recent slowdown, proving last quarters fears turned out to be wide of the mark.

    In addition, over the coming months and years we still expect the yen to gradually weaken as interest rates elsewhere are far more likely to be raised whilst those in Japan remain at current levels. Likewise, economic growth rates will show similar patterns as Japan drifts ahead of the October 2% point increase in VAT to 10% whilst the February 2019 “shunto” wage talks did not see the middle class salary workers see a sufficient improvement in their real take-home pay to offset the impending VAT hike.

    Outlook

    Given such developments are likely to trigger renewed yen weakness, the Neptune Japan Opportunities Fund’s long-held strategy of hedging the yen back into sterling will remain in place as we expect this feature will help underwrite a multi-year recovery in Japanese corporate profits. As such, the Fund will remain overweight in large, well-financed, industry-dominant Japanese multinationals that are set to benefit most from the currency’s likely weakening.

    Chris Taylor

    Fund Manager

    The Fund will remain overweight in large, well-financed, industry-dominant Japanese multinationals that are set to benefit most from the currency’s likely weakening

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 194.00 -0.31 26/06/2019
    C Acc USD 130.90 -0.83 26/06/2019
    A Acc GBP 391.50 -0.28 26/06/2019
    A Acc USD 123.60 -0.80 26/06/2019
    B Acc GBP 418.50 -0.29 26/06/2019
    D Acc GBP 114.70 -0.26 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 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

    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