Neptune Defensive Managed Fund
Fund Manager Ian Sealey takes an active approach to managing the Neptune Defensive Managed Fund. Investing in a combination of three different asset classes – equities, fixed income holdings and cash – the Fund seeks to generate a sustainable income, whilst offering investors exposure to capital growth within a diversified, low risk mandate.

Fund Manager

Ian joined Neptune in September 2012 and is a Fund Manager. He graduated from Cambridge University with a Masters in Engineering in 2007. Before Neptune, Ian worked on the sell side covering European banks at Citigroup, after qualifying as an ACA at Deloitte LLP in the Banking and Capital Markets division. His global research focus is the financials sector and he is a CFA charterholder.
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FUND LITERATURE
The value of an investment and any income from it can fall as well as rise and you may not get back the original amount invested. This Fund may invest more than 35% in government and public securities in a number of jurisdictions. All applications are made on the basis of the Key Investor Information Document, Supplementary Information Document, Prospectus, most recent annual or semi-annual report and the Application Form, which can be downloaded above. Please read these carefully prior to investing. If you are unsure about the suitability of an investment please consult an authorised financial adviser.
 
 
ManagerIan Sealey
Launch date02/07/2012
Fund size£0.6m
IMA sectorMixed Investment
0-35% Shares
 
11729
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 may not get back the original amount invested.
CUMULATIVE PERFORMANCE
 1 Year3 Year5 YearSince Launch
Fund (%)2.77N/AN/A7.70
IMA Sector Average (%)2.14N/AN/A11.99
Sector Ranking14/37N/AN/A29/32
Quartile Ranking2N/AN/A4
Data as at 31.05.2014. Source: Lipper, C Acc Share Class, GBP1
DISCRETE PERFORMANCE
 31/05/1331/05/1231/05/1131/05/1031/05/09
 31/05/1431/05/1331/05/1231/05/1131/05/10
Fund (%)2.77N/AN/AN/AN/A
IMA Sector Average (%)2.14N/AN/AN/AN/A
Sector Ranking14/37N/AN/AN/AN/A
Quartile Ranking2N/AN/AN/AN/A
Data as at 31.05.2014. Source: Lipper, C Acc Share Class, GBP1
 
1. Performance data supplied by Lipper. C Accumulation share class, in sterling with net income reinvested and no initial charges. The performance of other share classes may differ. Reported date prices used for cumulative and discrete performance tables.
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 may not get back the original amount invested.
Neptune 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.
Copyright 2014 © Lipper, a Thomson Reuters company. All rights reserved. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
 
 
 
ManagerIan Sealey
Launch date02/07/2012
Fund size£0.6m
IMA sectorMixed Investment
0-35% Shares
 
In the first quarter of 2014, the Neptune Defensive Managed Fund returned 0.86% versus the IMA Mixed Investment 0-35% Shares sector average gain of 0.94%. In the year to the end of March, the Fund has returned 1.93% versus the IMA sector average gain of 1.50% and is ranked in the second quartile of the peer group.*
Equity markets had a difficult first quarter, with weather-related slowing in the US, defaults in the Chinese bond market, Russia’s annexation of Crimea and deflation fears in Europe. Offsetting this, peripheral economies in Europe have appeared to stabilise, while UK growth has been stronger than expected. Going forward, we expect the US growth rate to recover and that the normalisation of the Chinese bond markets will be a long-term positive for the country. We do not expect the impact of the Crimean situation to be material to growth outside of the region and we do not expect Euro area deflation as economies stabilise. The FTSE All-Share Index returned -0.63% in the quarter, while the S&P; 500 Index gained 1.14%.*
The Fund’s equity holdings had a difficult quarter, with an unusually tough reporting season and poor quarterly results/guidance, particularly from Pearson, Rolls Royce and Smiths Group. However, we did benefit from better performance from our European and US companies despite the stronger sterling. On a sector level, industrials and financials had difficult quarters while healthcare and utilities outperformed. We expect this trend to partially reverse as growth rates re-accelerate after the first quarter’s slowdown. On a stock specific level, we would highlight our exposure to world class companies such as Roche and Microsoft, which both produced notable performances. During the quarter we added SunEdison, a global leader in the solar market. Whilst we appreciate the solar sector is not a natural area for defensively managed funds, we feel that the solar investment case is so strong that some exposure is justified.
Bonds had a very good quarter with yields falling, driven by geopolitical concerns, slowing growth and European deflation fears. This led to a rally in treasuries, with the 10 Year US Treasury yield falling from 3.0% to 2.7%. However, we expect yields to move higher over 2014 on the back of improving global growth. We therefore remain invested at the shorter end of the curve (4 - 7 years) due to concerns over rising interest rates. Our preference for corporate debt exposure is driven by our positive view on improving credit quality and corporate balance sheets.
Looking forward, the Fund retains a maximum weighting in equities (close to 35%), as we believe this asset class remains attractively valued. The Fund remains positioned in what we believe are high quality, global sector leaders with supporting long-term growth drivers.
 
*Performance data supplied by Lipper; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. The performance of other share classes may differ. IMA sector averages and rankings may change at any time as a result of closure, movement between sectors or price amendments by competitor funds. Where references to specific securities are made, they are for illustrative purposes only and should not be regarded as recommendations to buy or sell these securities.
This Fund may be higher risk than other funds and past performance is not a guide for 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 may not get back the original amount invested. Investing in emerging markets can involve a higher degree of risk. Less developed markets are generally less well regulated than the UK and do not have the strict standards of accounting and transparency present in developed markets. Some emerging markets may have relatively unstable governments, economies based on only a few industries and markets that trade only a limited number of securities. As a consequence, both the value of investments made and the ease of which the underlying securities can be bought and sold may be adversely affected. Exposure to a single market increases potential volatility. Retail clients, if necessary, should consult an investment adviser or authorised intermediary.
Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this update is deemed to be impartial research. Any forecasts on the page are indicative and are not guaranteed. We do not undertake to advise you as to any change of our views. This is not a solicitation or an offer to buy or sell. All information and advice is given in good faith but without any warranty.
SECTOR ALLOCATION (%) as at 30/04/2014
Fixed Income64.8
 
Financials8.6
 
Industrials4.4
 
Consumer Discretionary4.1
 
Energy3.6
 
Health Care3.2
 
Materials2.9
 
Consumer Staples2.8
 
Information Technology2.7
 
Telecommunication1.4
 
Utilities1.0
 
Cash0.5
 
Source: Neptune
REGION ALLOCATION (%) as at 30/04/2014
Fixed Income64.8
 
UK17.4
 
US10.7
 
Switzerland2.6
 
Germany1.2
 
France1.1
 
Canada0.9
 
China0.8
 
Cash0.5
 
Source: Neptune
 

The market commentaries found on this page relate to regions which this Fund may invest in. For quarterly commentary that relates directly to this Fund please click here.

 
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    2-038
    FUND LITERATURE

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