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, 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

    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 11.1 11.1 7.1 110.9 58.3 155.0 52.1
Benchmark 11.3 11.3 3.0 98.9 47.7 111.0 49.1
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.

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 4.2 -4.2 28.3 10.0 -5.5
IA rank 170/198 184/213 37/219 41/222 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.

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 31/01/2019

Top ten holdings (%)

FundIndex
Vale 5.60 5.92
Petrobras 5.52 7.73
Banco Bradesco 5.29 7.91
Itaúsa 3.67 2.45
Banco do Brasil 3.31 1.83
Rumo 3.22 0.88
Cia de Saneamento do Paraná  2.68 0.61
Direcional 2.59 0.00
Energisa 2.55 0.00
Credito Real 2.54 0.00

Sector (%)

FundIndex
Financials 36.4 34.7
Consumer discretionary 17.3 5.2
Materials 15.4 14.6
Utilities 12.8 5.2
Industrials 5.5 6.3
Energy 5.5 10.4
Real estate 1.7 1.5
Information technology 1.6 0.6
Consumer staples 1.4 14.4
Healthcare 1.0 0.5
Communication services 0.0 6.7
Cash 1.4000 0.0

Country (%)

FundIndex
Brazil 61.3 62.8
Mexico 19.5 21.8
US 6.5 0.0
Canada 3.2 0.0
Chile 3.0 8.7
Argentina 2.5 0.0
Peru 2.4 3.3
Norway 0.1 0.0
Colombia 0.1 3.3
Cash 1.4000 0.0

Top ten holdings (%)

FundIndex
Vale 5.60 5.92
Petrobras 5.52 7.73
Banco Bradesco 5.29 7.91
Itaúsa 3.67 2.45
Banco do Brasil 3.31 1.83
Rumo 3.22 0.88
Cia de Saneamento do Paraná  2.68 0.61
Direcional 2.59 0.00
Energisa 2.55 0.00
Credito Real 2.54 0.00

Sector (%)

FundIndex
Financials 36.4 34.7
Consumer discretionary 17.3 5.2
Materials 15.4 14.6
Utilities 12.8 5.2
Industrials 5.5 6.3
Energy 5.5 10.4
Real estate 1.7 1.5
Information technology 1.6 0.6
Consumer staples 1.4 14.4
Healthcare 1.0 0.5
Communication services 0.0 6.7
Cash 1.4000 0.0

Country (%)

FundIndex
Brazil 61.3 62.8
Mexico 19.5 21.8
US 6.5 0.0
Canada 3.2 0.0
Chile 3.0 8.7
Argentina 2.5 0.0
Peru 2.4 3.3
Norway 0.1 0.0
Colombia 0.1 3.3
Cash 1.4000 0.0

    Active share

    Active share 70.7%

    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 52

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q4 2018

    Market overview

    Latin America materially outperformed global developed and emerging markets during the fourth quarter, with a positive return of 2.9% compared with negative returns of -11.2% and -5.2% in developed and emerging markets, respectively. This masked sharp divergences in the performance at the country level across Latin America, with Brazil returning 15% whilst Mexico and Colombia fell by 17%. The majority of Brazil’s gains were recorded in October as Jair Bolsonaro and his PSL party fared better than expected in the first round of voting with Bolsonaro being elected president in the second round at the end of the month. The PSL is now the second largest party in the lower house, which will materially improve the governability of the new government, which is already discussing wide ranging reforms with the initial focus being on the pension reform. The weak performance in Mexico was a result of AMLO’s decision to cancel the new Mexico City airport, which raised questions over the visibility of his policymaking which will weigh on business confidence. This was in stark contrast to the positive tone he had struck immediately following his election during the third quarter. Colombia’s weakness was a function of the sharp decline in oil prices which fell by a third during the fourth quarter resulting in the Colombian peso depreciating by 9%.

    Portfolio attribution

    Key contributors to performance were our holdings in Brazilian state owned companies where expectations of privatisation increased dramatically following the election of Bolsonaro and the naming of Paulo Guedes as Economic Minister. Highlights included Rio Grande do Sul bank, Banrisul and water utilities Copasa and Sanepar.

    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 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

    Latin America materially outperformed global developed & emerging markets during the fourth quarter, with a positive return of 2.9% compared with negative returns of -11.2% and -5.2% in developed & emerging markets, respectively

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 124.00 2.06 15/02/2019

    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

    Codes & fees

    ISIN SEDOL Bloomberg Ongoing charge (%)
    C Acc GBP GB00B909HH53 B909HH5 NPLTAMA:LN 1.09

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