Overview

The Neptune Latin America Fund seeks the best opportunities in the region. Fund Manager Thomas Smith aims to provide investors with capital growth as Latin America goes through a period of rapid transformation, with market-friendly governments being elected and substantial reforms being undertaken.

Investment objective

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

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

Ongoing charge (%) 1.09
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00B909HH53
Bloomberg NPLTAMA:LN
SEDOL B909HH5

Fund managers

Thomas Smith

Fund Manager
  • Role at Neptune

    Investment Director, Co-Head of Emerging Market Equities

  • Time at Neptune

    9 years

  • Research focus

    Energy and Utilities

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

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs 10 yrs Launch
Fund 6.31 6.02 5.03 81.61 25.88 151.86 39.98
Benchmark 5.59 2.24 1.76 74.86 12.48 110.05 37.53
Large chart

Calendar year performance (%)

2013 2014 2015 2016 2017
Fund -13.60 -11.33 -20.86 51.48 18.63
Benchmark -14.77 -6.56 -26.81 56.82 13.41

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. Launch date used is 03/12/2007, which is the launch of the A Accumulation share class. The C Accumulation share class was launched on 07/05/2013, so during the period from 03/12/2007 to 07/05/2013 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.

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. ©2018 FE. All rights reserved.

Calendar year performance (%)

2013 2014 2015 2016 2017
Fund -13.60 -11.33 -20.86 51.48 18.63
Benchmark -14.77 -6.56 -26.81 56.82 13.41
IA sector 3.56 4.19 -4.15 28.09 10.15
IA rank 159/180 169/197 185/213 37/220 43/223
Quartile 4 4 4 1 1

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. Launch date used is 03/12/2007, which is the launch of the A Accumulation share class. The C Accumulation share class was launched on 07/05/2013, so during the period from 03/12/2007 to 07/05/2013 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.

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. ©2018 FE. All rights reserved.

Portfolio

Data as at 31/10/2018

Top ten holdings (%)

FundIndex
Vale 7.20 7.96
Petrobras 5.59 8.79
Banco Bradesco 4.78 6.45
Itaúsa 3.74 2.20
Banco do Brasil 3.45 1.63
Rumo 3.18 0.80
Cia de Saneamento do Paraná  2.59 0.42
Credicorp 2.53 2.53
Direcional 2.42 0.00
Light S.A. 2.37 0.00

Sector (%)

FundIndex
Financials 35.4 31.8
Consumer discretionary 16.6 4.8
Materials 16.2 17.7
Utilities 12.3 4.6
Industrials 5.8 5.9
Energy 5.6 11.6
Information technology 1.8 0.7
Real estate 1.5 1.4
Consumer staples 1.3 14.3
Healthcare 1.2 0.6
Communication services 0.0 6.7
Cash 2.3 0.0

Country (%)

FundIndex
Brazil 60.6 62.2
Mexico 19.8 22.2
US 6.3 0.0
Chile 3.3 8.7
Peru 2.5 3.5
Argentina 2.5 0.0
Canada 2.4 0.0
Norway 0.2 0.0
Colombia 0.1 3.4
Cash 2.3 0.0

Top ten holdings (%)

FundIndex
Vale 7.20 7.96
Petrobras 5.59 8.79
Banco Bradesco 4.78 6.45
Itaúsa 3.74 2.20
Banco do Brasil 3.45 1.63
Rumo 3.18 0.80
Cia de Saneamento do Paraná  2.59 0.42
Credicorp 2.53 2.53
Direcional 2.42 0.00
Light S.A. 2.37 0.00

Sector (%)

FundIndex
Financials 35.4 31.8
Consumer discretionary 16.6 4.8
Materials 16.2 17.7
Utilities 12.3 4.6
Industrials 5.8 5.9
Energy 5.6 11.6
Information technology 1.8 0.7
Real estate 1.5 1.4
Consumer staples 1.3 14.3
Healthcare 1.2 0.6
Communication services 0.0 6.7
Cash 2.3 0.0

Country (%)

FundIndex
Brazil 60.6 62.2
Mexico 19.8 22.2
US 6.3 0.0
Chile 3.3 8.7
Peru 2.5 3.5
Argentina 2.5 0.0
Canada 2.4 0.0
Norway 0.2 0.0
Colombia 0.1 3.4
Cash 2.3 0.0

    Active share

    Active share 66.4%

    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 52

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q3 2018

    Market overview

    Global pressures remained on emerging markets during the third quarter, although Latin American markets rebounded, led by Brazil and Mexico. Brazil benefited from robust earnings and positive developments on the political front as right wing presidential candidate, Jair Bolsonaro, consolidated his lead in the polls and ultimately took strong momentum into the second round runoff, which will be held at the end of October. Bolsonaro plans to implement a liberal macroeconomic agenda including a comprehensive pension reform, reducing the state’s involvement in the economy and widespread privatisation.

    Mexico’s strength in the quarter can be attributed to positive developments on the two main headwinds that have faced the Mexican market over the past year or two. Following Andrés Manuel López Obrador (AMLO’s) election on 1 July, he has continued to moderate his stance on many key issues and acted to reassure businesses and the market. Additionally, we saw a conclusion of the NAFTA renegotiations with all parties agreeing to the US, Mexico and Canada Trade Agreement (USMCA). The improved visibility on tariffs should help to stimulate investment in manufacturing industries in Mexico.

    Argentina came under renewed pressure in August, as the Central Bank of Argentina (BCRA) had to hike interest rates to 60% in an effort to defend the peso. The government was able to secure increased funding from the IMF in exchange for meeting tighter fiscal adjustment targets and the peso has since stabilised.

    Outlook

    Looking across emerging markets, investors are crying out for reformist governments. In Asia, we have seen this with India, and in Latin America, Mexico, Argentina, Peru and now Chile have elected strong pro-market governments. Brazil is increasingly moving in that direction with the impeachment of Dilma Rousseff in 2016, paving the way for reforms under the new government. The populist tide has finally reversed as governments focus on structural reforms to raise productivity and economic growth.

    Thomas Smith

    Fund Manager

    Global pressures remained on emerging markets during the third quarter, although Latin American markets rebounded, led by Brazil and Mexico

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 110.30 0.36 14/12/2018

    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 GB00B909HH53 B909HH5 NPLTAMA:LN 1.09

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