Overview

The Neptune Quarterly Income Fund is designed for investors seeking a regular income and long-term growth. Leveraging Neptune’s in-house sector research, its income share classes pay distributions four times a year from a portfolio of UK stocks identified as being able to grow their dividends significantly. The Fund is also designed to capture special dividend payments and has the ability to invest up to 20% of the portfolio in non-UK stocks, giving exposure to high-yielding opportunities overseas.

Investment objective

To provide a rising level of income, with the potential for some capital growth, by investing mainly in UK companies’ shares and bonds (issued by companies and/or the government), selected at the manager's discretion.

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

Ongoing charge (%) 1.38
Net yield (%) -
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00B8BFZ158
Bloomberg NEPQIBA:LN
SEDOL B8BFZ15

Fund managers

Robin Geffen

Fund manager

Storm Uru

Assistant 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

James O'Connor

Assistant Manager
  • Role at Neptune

    Assistant Fund Manager

  • Time at Neptune

    3 years

  • Research focus

    Industrials and Materials

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs 10 yrs Launch
Fund 1.1 1.1 -3.1 13.6 20.6 123.4 125.9
Benchmark 4.2 4.2 -3.8 28.5 31.2 163.7 139.3
IA sector 5.0 5.0 -5.1 19.0 27.8 157.5 123.2
IA rank 90/90 90/90 24/88 60/82 65/77 45/54 29/45
Quartile 4 4 2 3 4 4 3
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund 2.4 8.0 0.5 9.3 -5.0
Benchmark 1.2 1.0 16.8 13.1 -9.5
IA sector 3.5 6.5 9.1 11.6 -10.5
IA rank 51/77 25/77 78/82 63/84 5/88
Quartile 3 2 4 3 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 07/07/2005, 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 07/07/2005 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 UK Equity Income and the benchmark is FTSE All-Share 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 - - - - -
Benchmark - - - - -
IA sector - - - - -
IA rank - - - - -
Quartile - - - - -

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. Launch date used is 07/07/2005, 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 07/07/2005 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 UK Equity Income and the benchmark is FTSE All-Share 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 31/01/2019

Top ten holdings (%)

FundIndex
3i Group 2.86 0.00
Halma 2.79 0.24
Antofagasta 2.78 0.14
Johnson Matthey 2.75 0.26
Anglo American 2.74 0.88
Rio Tinto 2.73 2.17
Sage Group 2.70 0.31
Croda 2.68 0.28
Visa 2.66 0.00
CME Group 2.65 0.00

Sector (%)

FundIndex
Financials 28.8 23.5
Materials 21.0 9.7
Information technology 18.0 1.6
Industrials 9.2 11.0
Consumer staples 7.4 13.4
Energy 5.0 14.2
Alternatives 4.0 0.0
Healthcare 3.8 8.0
Consumer discretionary 2.5 8.0
Communication services 0.0 4.9
Utilities 0.0 3.1
Cash 0.3000 0.0

Top ten holdings (%)

FundIndex
3i Group 2.86 0.00
Halma 2.79 0.24
Antofagasta 2.78 0.14
Johnson Matthey 2.75 0.26
Anglo American 2.74 0.88
Rio Tinto 2.73 2.17
Sage Group 2.70 0.31
Croda 2.68 0.28
Visa 2.66 0.00
CME Group 2.65 0.00

Sector (%)

FundIndex
Financials 28.8 23.5
Materials 21.0 9.7
Information technology 18.0 1.6
Industrials 9.2 11.0
Consumer staples 7.4 13.4
Energy 5.0 14.2
Alternatives 4.0 0.0
Healthcare 3.8 8.0
Consumer discretionary 2.5 8.0
Communication services 0.0 4.9
Utilities 0.0 3.1
Cash 0.3000 0.0

    Active share

    Active share 67.8%

    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 39

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q4 2018

    Market overview

    It was a painful quarter for equities, with a variety of macroeconomic headwinds hurting investor sentiment and contributing to the UK market’s worst annual performance since 2008. These included higher interest rates in the US, slowing global economic growth, a fall in the oil price, continued tensions between the US and China over trade, the government shut down in the US and, of course, Brexit-related uncertainty. Over the period, the FTSE All Share Index posted a loss of -10.3% in total return terms – its second worst quarterly performance in over a decade. There were very few places for UK investors to hide during the sell-off, making the relative performance of the Neptune Income Fund all the more pleasing.

    Portfolio positioning

    There were numerous drivers behind the Fund’s strong relative returns. First and foremost, the Fund’s large-cap bias was additive, given UK small and mid-caps bore the brunt of the sell-off. The largest contributors to the Fund’s returns, however, were its exchange traded options. We added this exposure to the portfolio in 2017 in order to achieve our objective of delivering attractive income but also protecting capital during periods of volatility.

    Other positive contributors included CME Group, the futures exchange and one of our overseas holdings, which benefited from the more volatile conditions. Our stock selection within consumer staples, particularly our 0% tobacco weighting as well as exposure to Diageo and Unilever, also aided the Fund’s relative returns. The main detractors to the Fund’s performance were Apple, which fell on the back of weaker Chinese data, as well as certain financials and materials holdings, such as SunTrust Bank, HSBC, Victrex and DS Smith.

    Outlook

    While we are positive on the underlying income and capital growth for the Fund, and are generally positive on global growth, we remain cautious on the UK economy and many of the largest stocks within the market. In this environment, we believe it is important to remain diversified and to not follow the crowd – as shown by the fact that many of the popular ‘defensive’ areas of the market have performed poorly this year.

    Robin Geffen

    Fund manager

    There were very few places for UK investors to hide during the selloff, making the relative performance of the Neptune Quarterly Income Fund all the more pleasing

    Insights & analysis

    Prices

    Choose date
    Share class Bid price Offer price Change (%) Date
    C Acc GBP 148.80 149.70 -0.13 15/02/2019
    C Inc GBP 113.10 113.70 -0.18 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 GB00B8BFZ158 B8BFZ15 NEPQIBA:LN 1.38
    C Inc GBP GB00B8J70J62 B8J70J6 NEPQIBI:LN 1.38

    Contact us

    Please note that this Fund will be merged with the Neptune Income Fund on 1 April 2019