Overview

The Neptune US Opportunities Fund provides exposure to the world’s largest and most diverse stockmarket, home to pioneering corporations that lead their industries globally. The Fund invests in 40-60 companies from a broad spectrum of sectors and industries that manager George Boyd-Bowman believes provide the greatest potential for capital growth.

Investment objective

To provide capital growth by investing mainly in a focused portfolio of approximately 40-60 North American companies, selected at the manager's discretion, which may include Canada as well as the USA.

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

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

Nick Williams

Assistant Manager
  • Role at Neptune

    Assistant Fund Manager

  • Time at Neptune

    3 years

  • Research focus

    Healthcare and Chemicals

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs 10 yrs 15 yrs Launch
Fund 6.9 6.9 7.4 64.5 74.1 211.8 376.0 409.9
Benchmark 4.6 4.6 5.6 59.8 110.1 343.5 350.7 422.4
IA sector 5.6 5.6 3.9 58.1 88.6 261.3 254.4 304.1
IA rank 31/154 31/154 27/149 28/135 97/117 84/88 7/57 10/48
Quartile 1 1 1 1 4 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 -1.2
IA rank 101/111 43/118 105/116 10/112 37/111
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.

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 -1.2
IA rank 101/111 43/118 105/116 10/112 37/111
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.

Portfolio

Data as at 31/01/2019

Top ten holdings (%)

FundIndex
Microsoft 5.11 3.55
UnitedHealth Group 4.79 1.14
Alphabet 4.48 3.00
LivaNova 4.06 0.00
Amazon 4.04 3.11
Brink's 4.03 0.00
Willis Towers Watson 3.81 0.09
Mastercard 3.51 0.84
Horizon Pharma 3.30 0.00
IQVIA 3.19 0.09

Sector (%)

FundIndex
Healthcare 20.2 15.1
Information technology 18.9 19.9
Financials 16.4 13.5
Industrials 14.0 9.5
Communication services 10.6 10.3
Consumer discretionary 5.9 10.1
Consumer staples 3.9 7.2
Energy 3.7 5.5
Utilities 2.8 3.2
Materials 2.7 2.7
Real estate 0.0 3.0
Cash 0.9000 0.0

Top ten holdings (%)

FundIndex
Microsoft 5.11 3.55
UnitedHealth Group 4.79 1.14
Alphabet 4.48 3.00
LivaNova 4.06 0.00
Amazon 4.04 3.11
Brink's 4.03 0.00
Willis Towers Watson 3.81 0.09
Mastercard 3.51 0.84
Horizon Pharma 3.30 0.00
IQVIA 3.19 0.09

Sector (%)

FundIndex
Healthcare 20.2 15.1
Information technology 18.9 19.9
Financials 16.4 13.5
Industrials 14.0 9.5
Communication services 10.6 10.3
Consumer discretionary 5.9 10.1
Consumer staples 3.9 7.2
Energy 3.7 5.5
Utilities 2.8 3.2
Materials 2.7 2.7
Real estate 0.0 3.0
Cash 0.9000 0.0

    Active share

    Active share 78.6%

    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 42

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q4 2018

    Fund attribution

    Performance was helped by strong stockpicking in the energy and financial sectors. In both cases, the Neptune US Opportunities Fund has exposure to the more defensive areas of what are typically cyclical industries. Within financials, our preference for the high quality exchange and data-driven businesses, including ICE and CBOE, fared much better than the assetintensive banks. This was particularly so in a quarter where the sharp sell-off was induced by concerns over the economic outlook, coupled with a potential Fed policy mistake (continuing to tighten aggressively into a deteriorating outlook) and mangled communication from the current Fed Governor, Jerome Powell. Within the energy sector, our position in Enterprise Product Partners, the pipeline company, fared much better in the face of a near 40% fall in oil during the quarter than other energy sub-sectors, including the E&Ps, majors and service companies.

    On the other side of the ledger, the largest detractors during the quarter came from the staples and healthcare sectors with two holdings, Coty and LivaNova, particularly underperforming. Coty, the cosmetics company, has been a poor investment for the Fund and this quarter saw both its CEO, Camillo Pane, and its respected Chairman Bart Becht leave their posts. LivaNova, the medical devices company, underperformed on the back of the Centres for Medicare & Medicaid Services’ (CMS) decision for LivaNova’s VNS Therapy for treatment resistant depression. The market had expected LivaNova to be allowed to proceed unhindered with its device but instead the CMS would like more data. We do not think this closes the door on what could be a very lucrative market for LivaNova and along with continued execution of the turnaround plan under the new CEO Damien McDonald, we retain conviction here.

    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. This is further enhanced by the rampant defensive rotation that happened last quarter as investors fled cyclical industries.

    We manage the Fund using a clear process which emphasises real world 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 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. 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 one in four (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

    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

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 242.10 -0.16 15/02/2019
    C Acc EUR 276.10 -0.14 15/02/2019
    C Acc USD 253.10 -0.08 15/02/2019
    A Acc GBP 513.60 -0.17 15/02/2019
    A Acc USD 238.70 -0.08 15/02/2019
    B Acc GBP 553.00 -0.16 15/02/2019
    B Acc EUR 302.80 -0.13 15/02/2019
    D Acc GBP 187.40 -0.16 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 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

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