Investment objective

The investment objective of the Neptune US Opportunities Fund is to generate long-term (5 years or more) capital growth.

Strategy

The Fund invests in a mix of companies that may provide growth opportunities or attractive valuations.

Ongoing charge (%) 0.91
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00B7K9LQ88
Bloomberg NUSOCAG:LN
SEDOL B7K9LQ8

Fund managers

George Boyd-Bowman

Fund Manager
  • Role at Neptune

    Investment Director, Head of US Equities

  • Time at Neptune

    8 years

  • Research focus

    Financials

Storm Uru

Assistant Manager
  • Role at Neptune

    Fund Manager

  • Time at Neptune

    4 years

  • Research focus

    Industrials

Robin Geffen

Assistant Manager

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs 10 yrs 15 yrs Launch
Fund 8.7 33.1 18.8 70.8 108.1 258.5 550.1 534.9
Benchmark 5.4 25.1 15.7 57.9 135.9 403.3 448.3 524.8
IA sector 6.4 26.5 15.1 54.0 114.2 315.4 342.0 384.2
IA rank 3/151 19/151 39/149 18/135 76/119 81/88 6/58 8/49
Quartile 1 1 2 1 3 4 1 1
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund 10.2 4.6 17.5 17.4 1.1
Benchmark 20.8 7.3 33.5 11.3 1.6
IA sector 16.4 3.4 28.8 9.5 -2.3
IA rank 101/111 43/118 105/116 10/112 21/111
Quartile 4 2 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 31/12/2002, 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 31/12/2002 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 North America and the benchmark is S&P 500 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.

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 10.2 4.6 17.5 17.4 1.1
Benchmark 20.8 7.3 33.5 11.3 1.6
IA sector 16.4 3.4 28.8 9.5 -2.3
IA rank 101/111 43/118 105/116 10/112 21/111
Quartile 4 2 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 31/12/2002, 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 31/12/2002 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 North America and the benchmark is S&P 500 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.

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 31/07/2019

Top ten holdings (%)

FundIndex
Microsoft 5.23 4.22
Alphabet 4.68 2.98
Willis Towers Watson 4.24 0.10
UnitedHealth Group 4.22 0.96
Brink's 4.01 0.00
Mastercard 3.98 0.99
Amazon 3.97 3.12
Mondelez International 3.39 0.31
IQVIA 3.31 0.10
Horizon 3.14 0.00

Sector (%)

FundIndex
Information technology 21.0 21.8
Healthcare 20.7 13.8
Financials 16.8 13.2
Industrials 13.9 9.3
Communication services 13.1 10.5
Consumer staples 4.5 7.3
Consumer discretionary 4.0 10.2
Utilities 2.9 3.3
Materials 2.1 2.7
Energy 0.9 4.9
Real estate 0.0 3.1
Cash 0.1000 0.0

Top ten holdings (%)

FundIndex
Microsoft 5.23 4.22
Alphabet 4.68 2.98
Willis Towers Watson 4.24 0.10
UnitedHealth Group 4.22 0.96
Brink's 4.01 0.00
Mastercard 3.98 0.99
Amazon 3.97 3.12
Mondelez International 3.39 0.31
IQVIA 3.31 0.10
Horizon 3.14 0.00

Sector (%)

FundIndex
Information technology 21.0 21.8
Healthcare 20.7 13.8
Financials 16.8 13.2
Industrials 13.9 9.3
Communication services 13.1 10.5
Consumer staples 4.5 7.3
Consumer discretionary 4.0 10.2
Utilities 2.9 3.3
Materials 2.1 2.7
Energy 0.9 4.9
Real estate 0.0 3.1
Cash 0.1000 0.0

    Active share

    Active share 78.5%

    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 43

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q2 2019

    Portfolio attribution

    Performance was helped by some strong stockpicking, particularly in the technology and industrials sectors. 8x8, a relatively new addition to the Fund, attracted more attention partly as a result of the very successful IPO of Zoom, the video communications company, which also operates in the communications as a service (CPaaS) space. Additionally, our companies exposed to both the “payments” and “data assets” themes, including Mastercard, Equifax and S&P Global, have enjoyed strong returns this quarter. Both sub-sectors have benefited from the clear divergence between the returns of quality growth and value stocks this year. In 2019 high P/E and high sales and EPS growth stocks have significantly outperformed their low quality, low valuation and low growth peers. While the backdrop of softening economic expectations and lower bond yields (further dovish steps from the Federal Reserve helped 10 year yields to finish the quarter at 2%) would help explain much of this and we would contend that digital disruption is also driving a wide stake between the haves and have nots. The disrupters and their embracers are growing at the expense of the disrupted. This disruption dynamic is at the forefront of our minds in the Fund.

    On the other side of the ledger, the main drag on the Fund came from Livanova, the medical devices company. The shares have significantly underperformed after reporting disappointing revenue growth, particularly within its core epilepsy franchise. The company blamed heightened competitive pressures in the US from new anti-epileptic drug Epidiolex to which they have also reportedly lost members of their sales team. The company now has a job of rebuilding credibility with investors after also perhaps overpromising on its treatment resistant depression product at the beginning of the year. We nevertheless believe that patient investors will be rewarded here as the pipeline remains strong.

    Outlook

    We are concerned over what investors may be relying on as ‘safe assets’ ‒ especially in the consumer staples space – that are anything but. Low growth, high leverage and changing consumer preferences do not suggest ‘defensive assets’ in our view. Many of the companies that fall into this bracket have outperformed their fundamentals year to date, in our view, benefiting from Fed’s so-called dovish pivot, marking an about turn in monetary policy, which has led to the sharp fall in the 10 year bond yield.

    We instead manage the Fund using a clear process which emphasises research at the company level. We do not take large sector or factor bets, but we do take meaningful positions (up to ~5% of the Fund) in companies and management teams in which we believe for the long run. The portfolio is fairly concentrated (40-60 positions) and turnover remains low. Investors have repeatedly underestimated the power of network effects and the sustainability of historically ‘supernormal’ returns (seen mainly in the technology industry). The economy is becoming more concentrated as three-quarters of US industries have seen an increase in the concentration of wealth over the past two decades (source: Brookings Institute). We think this potentially offers higher sustainability of returns on capital and can underpin reasonable real returns for investors.

    Our deepest-held conviction is that the US will – at some point – see a sustained and meaningful increase in productivity owing to innovation and the application of new technologies to less productive industries. Three out of four US workers have seen almost no increase in the productivity of their labour since 2000 – whereas 1 in 4 (concentrated in more digitised industries) has seen more than 50% improvement. This ultimately underpins our optimistic outlook on the US economy long term.

    George Boyd-Bowman

    Fund Manager

    Performance was helped by some strong stockpicking, particularly in the technology and industrials sectors

    Related event

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 278.60 1.42 20/08/2019
    C Acc EUR 304.30 1.26 20/08/2019
    C Acc USD 274.30 0.99 20/08/2019
    A Acc GBP 588.40 1.40 20/08/2019
    A Acc USD 257.60 0.98 20/08/2019
    B Acc GBP 635.10 1.41 20/08/2019
    B Acc EUR 333.30 1.25 20/08/2019
    D Acc GBP 215.80 1.41 20/08/2019

    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
    31/07/2019
    Quarterly Commentary
    30/06/2019
    Key Investor Information Document
    07/08/2019

    Codes & fees

    ISIN SEDOL Bloomberg Ongoing charge (%)
    C Acc GBP GB00B7K9LQ88 B7K9LQ8 NUSOCAG:LN 0.91
    C Acc EUR GB00B60T5C53 B60T5C5 NUSOAAE:LN 0.90
    C Acc USD GB00B60T5G91 B60T5G9 NUSOBAU:LN 0.91
    A Acc GBP GB0032310129 3231012 CFNUSAA:LN 1.76
    A Acc USD GB00B60T5F84 B60T5F8 NUSOAAU:LN 1.76
    B Acc GBP GB0032310236 3231023 CFNUSBA:LN 1.26
    B Acc EUR GB00B60T5D60 B60T5D6 NUSOBAE:LN 1.26
    D Acc GBP GB00BFZC7264 BFZC726 NEPUSDR:LN 0.81

    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

    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