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 (%) 1.08
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, Head of European Equities

  • Time at Neptune

    9 years

  • Research focus

    Energy and Utilities

Ewan Thompson

Assistant Manager
  • Role at Neptune

    Investment Director, Head of Emerging Market Equities

  • Time at Neptune

    13 years

  • Research focus

    Metals and Mining

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs 10 yrs Launch
Fund 3.6 11.4 19.5 83.7 44.3 97.4 52.6
Benchmark 1.4 7.4 14.6 66.6 27.8 52.8 43.9
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund -11.3 -20.9 51.5 18.6 3.8
Benchmark -6.6 -26.8 56.8 13.4 -0.4

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. Launch date used is 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.

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 -11.3 -20.9 51.5 18.6 3.8
Benchmark -6.6 -26.8 56.8 13.4 -0.4
IA sector 4.7 -3.9 28.3 10.3 -5.5
IA rank 172/200 186/215 37/222 44/225 20/233
Quartile 4 4 1 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.

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
Vale 8.65 6.20
Banco Bradesco 5.95 7.53
Petrobras 4.31 7.64
Itaúsa 4.20 2.19
Banco do Brasil 3.06 1.78
Rumo 3.02 0.84
Banco BTG Pactual 2.92 0.34
Crédito Real 2.87 0.00
Direcional 2.72 0.00
Compartamos 2.70 0.00

Sector (%)

FundIndex
Financials 33.7 34.7
Materials 18.9 14.0
Consumer discretionary 17.5 4.7
Utilities 12.1 5.6
Industrials 5.9 6.1
Energy 4.3 10.4
Information technology 2.5 0.8
Real estate 1.9 1.3
Healthcare 1.7 0.9
Consumer staples 1.5 15.3
Communication services 0.0 6.3

Country (%)

FundIndex
Brazil 61.8 62.0
Mexico 22.1 21.3
US 7.5 0.0
Canada 3.3 0.0
Argentina 2.5 2.4
Peru 2.5 3.3
Colombia 0.2 3.3
Norway 0.1 0.0
Chile 0.0 7.6

Top ten holdings (%)

FundIndex
Vale 8.65 6.20
Banco Bradesco 5.95 7.53
Petrobras 4.31 7.64
Itaúsa 4.20 2.19
Banco do Brasil 3.06 1.78
Rumo 3.02 0.84
Banco BTG Pactual 2.92 0.34
Crédito Real 2.87 0.00
Direcional 2.72 0.00
Compartamos 2.70 0.00

Sector (%)

FundIndex
Financials 33.7 34.7
Materials 18.9 14.0
Consumer discretionary 17.5 4.7
Utilities 12.1 5.6
Industrials 5.9 6.1
Energy 4.3 10.4
Information technology 2.5 0.8
Real estate 1.9 1.3
Healthcare 1.7 0.9
Consumer staples 1.5 15.3
Communication services 0.0 6.3

Country (%)

FundIndex
Brazil 61.8 62.0
Mexico 22.1 21.3
US 7.5 0.0
Canada 3.3 0.0
Argentina 2.5 2.4
Peru 2.5 3.3
Colombia 0.2 3.3
Norway 0.1 0.0
Chile 0.0 7.6

    Active share

    Active share 72.5%

    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 47

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q1 2019

    Market overview

    Latin American markets enjoyed a strong start to 2019, rising by 5.5%, buoyed by the dovish turn of major central banks and progress being made on the US/China trade talks. All markets except Argentina posted positive returns, with Colombia leading the way. The oil price rose by 27% during the quarter, supporting a 22% rally in the Colombian market and reversing the sharp losses suffered at the end of 2018. In Brazil the government presented an ambitious pension reform which could see savings of R$1tn over ten years, although some dilution is likely before the final bill is passed. While the main priority will be passing a comprehensive pension reform, President Bolsonaro and his Economic Minister Guedes are discussing wide ranging reforms to help improve productivity and stimulate economic growth.

    Portfolio attribution

    The portfolio construction element of the process remains centred on a three silo approach of: structural growth (high-quality, best-in-class companies with strong franchises), economic recovery (companies that are geared into economic tailwinds and which tend to exhibit more cyclical earnings profiles and higher operating leverage); and special situations (previously poor performing companies set for a reverse in fortunes, due to a management change or a new strategic plan).

    By having at least 20% of the portfolio invested in each of these three silos, the Fund seeks to offer investors diversified exposure to Latin America that is able to outperform over the market cycle. Typically, the three silos have a lower correlation to one another, which also helps to dampen downside risk and volatility.

    As a result of our three-silo process, stock selection was the main driver of the Fund’s returns. Key contributors to performance included financials, utilities and consumer discretionary stocks in Brazil, and Argentine IT stocks MercadoLibre and Globant. Our underweight position in Colombia detracted modestly from performance.

    Outlook

    Looking across emerging markets, investors are crying out for reformist governments. In Asia we have seen this with India, and in Latin America Argentina, Peru, Chile, Colombia and now Brazil have elected strong pro-market governments. The populist tide has finally reversed as governments focus on structural reforms to raise productivity and economic growth.

    Thomas Smith

    Fund Manager

    By having at least 20% of the portfolio invested in each of these three silos, the Fund seeks to offer investors diversified exposure to Latin America that is able to outperform over the market cycle

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 130.00 -0.84 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 GB00B909HH53 B909HH5 NPLTAMA:LN 1.08

    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