Overview

The Neptune UK Opportunities Fund is a high conviction, multi-cap UK equity portfolio that aims to provide capital growth. Fund Manager Mark Martin takes a style-agnostic approach, structuring the portfolio around the three silos of economic recovery, structural growth and corporate turnarounds. The concentrated portfolio consists of stocks of all sizes, and has the ability to take advantage of ‘special situations’, where companies are out of favour, misunderstood or going through a transitional phase.

Investment objective

To provide capital growth by investing principally in UK companies, including those we consider to be ‘special situations’. Such ‘special situations’ can exist where companies are out of favour, misunderstood or where management changes or takeovers are expected.

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

Ongoing charge (%) 0.93
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00B8L76S53
Bloomberg NUKSSCA:LN
SEDOL B8L76S5

Fund managers

Mark Martin

Fund Manager
  • Role at Neptune

    Investment Director, Head of UK Equities

  • Time at Neptune

    11 years

  • Research focus

    Healthcare

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs 10 yrs Launch
Fund 2.3 10.9 -7.3 18.1 19.1 157.0 112.3
Benchmark 3.7 13.0 0.6 29.5 35.8 167.1 98.7
IA sector 2.5 13.1 -2.2 31.5 34.4 167.2 111.1
IA rank 176/261 205/259 221/257 224/243 207/228 117/190 61/168
Quartile 3 4 4 4 4 3 2
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund 0.8 4.9 6.9 13.3 -17.2
Benchmark 1.2 1.0 16.8 13.1 -9.5
IA sector 1.4 5.8 11.2 14.3 -11.1
IA rank 109/226 117/230 177/240 113/247 235/260
Quartile 2 3 3 2 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 29/12/2006, 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 29/12/2006 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 All Companies 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.

Please note that on the 1 November 2013 the Fund changed its name and objective. Past performance shown before this change was therefore achieved under similar circumstances but will not wholly apply going forward.

FTSE International Limited ("FTSE") © FTSE 2019. FTSE® is a trade mark of the London Stock Exchange Group companies and is used by FTSE under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE's express written consent.

FE Alpha Manager 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 0.8 4.9 6.9 13.3 -17.2
Benchmark 1.2 1.0 16.8 13.1 -9.5
IA sector 1.4 5.8 11.2 14.3 -11.1
IA rank 109/226 117/230 177/240 113/247 235/260
Quartile 2 3 3 2 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 29/12/2006, 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 29/12/2006 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 All Companies 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.

Please note that on the 1 November 2013 the Fund changed its name and objective. Past performance shown before this change was therefore achieved under similar circumstances but will not wholly apply going forward.

FTSE International Limited ("FTSE") © FTSE 2019. FTSE® is a trade mark of the London Stock Exchange Group companies and is used by FTSE under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE's express written consent.

FE Alpha Manager 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 30/06/2019

Top ten holdings (%)

FundIndex
Puretech Health 9.26 0.02
Chemring Group 8.92 0.02
Elementis 8.83 0.04
Devro 6.67 0.01
Essentra 4.58 0.05
De La Rue 4.49 0.01
Vectura 4.39 0.02
Morgan Advanced Materials 4.39 0.03
Ricardo 4.23 0.02
Oxford Instruments 4.08 0.03

Sector (%)

FundIndex
Industrials 31.3 11.0
Materials 24.7 9.9
Healthcare 16.5 8.5
Information technology 12.0 1.9
Consumer staples 10.3 13.3
Consumer discretionary 2.7 7.7
Real estate 1.7 2.6
Financials 0.0 23.3
Energy 0.0 14.3
Communication services 0.0 4.7
Utilities 0.0 2.8
Cash 0.8000 0.0

Top ten holdings (%)

FundIndex
Puretech Health 9.26 0.02
Chemring Group 8.92 0.02
Elementis 8.83 0.04
Devro 6.67 0.01
Essentra 4.58 0.05
De La Rue 4.49 0.01
Vectura 4.39 0.02
Morgan Advanced Materials 4.39 0.03
Ricardo 4.23 0.02
Oxford Instruments 4.08 0.03

Sector (%)

FundIndex
Industrials 31.3 11.0
Materials 24.7 9.9
Healthcare 16.5 8.5
Information technology 12.0 1.9
Consumer staples 10.3 13.3
Consumer discretionary 2.7 7.7
Real estate 1.7 2.6
Financials 0.0 23.3
Energy 0.0 14.3
Communication services 0.0 4.7
Utilities 0.0 2.8
Cash 0.8000 0.0

    Active share

    Active share 96.7%

    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 29

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q2 2019

    Market overview

    After a good start to 2019, the broad UK market continued its positive performance over the quarter. However trade-weighted sterling was weak, falling over 2%, as concerns mounted over the political impasse around Brexit and the associated potential cost to the UK domestic economy. Within the market, small-caps and, to a lesser extent, mid-caps underperformed their larger-cap brethren. Despite the weakness of small- and mid-caps, the Fund strongly outperformed its benchmark. I continue to believe it is more important than ever to concentrate on economic risk (i.e. capital preservation) rather than benchmark risk at this stage in the cycle, with wage pressure building and margin pressure potentially ensuing.

    Portfolio attribution

    Notably strong performance over the quarter came from PureTech Health, the biopharmaceutical company. This was largely driven by one of its affiliate companies, Karuna, announcing a successful initial public offering in the USA. Encouragingly, there were also multiple positive updates in other parts of this diversified company. We continue to believe the pipeline is undervalued and the company very overlooked. Poor relative performance came from the Fund’s holding in RPS, the engineering consultancy. The company announced that the market environment in Australia, in particular, was worse than expected and that profits would be materially lower than expectations. We were reassured to see management buying significant amounts of stock, however, and the Fund maintained its position in the company as we believe that management are taking good strategic decisions for the long-term benefit of shareholders. The sub-sector is structurally attractive and has seen multiple M&A deals in recent years at valuations significantly higher than where RPS currently trades.

    Outlook

    Our long-held concerns over the outlook for the UK domestic economy continued to be reflected in economic data. Whilst valuations in some domestic consumer cyclical companies are optically low, we remain underweight that area of the market. The Fund’s limited exposure to UK-focused companies primarily targets companies with structural earnings drivers and predictable earnings pipelines.

    We remain confident in the prospects for selective UK companies, primarily because of attractive company-specific valuations but also due to the potential for further M&A activity. The Fund continues to make use of its ability to invest across the market cap spectrum and we see exciting opportunities to invest in undervalued companies in the smaller part of the market.

    We continue to focus on maximising risk-adjusted performance over the business cycle by way of our style agnostic approach, structuring your Fund around the three silos of economic recovery, structural growth and corporate turnarounds. While we are somewhat cautious of elevated valuations in the broad market we believe that the current environment creates unusually large opportunities for alpha generation. We are excited by the investment opportunities in the remainder of 2019 and believe there is significant potential for continued outperformance in the coming months and years.

    Mark Martin

    Fund Manager

    We remain confident in the prospects for selective UK companies, primarily because of attractive company-specific valuations but also due to the potential for further M&A activity

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 159.30 -0.56 18/07/2019
    A Acc GBP 200.70 -0.55 18/07/2019
    D Acc GBP 112.50 -0.53 18/07/2019

    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
    30/06/2019
    Quarterly Commentary
    30/06/2019
    Key Investor Information Document
    08/02/2019

    Codes & fees

    ISIN SEDOL Bloomberg Ongoing charge (%)
    C Acc GBP GB00B8L76S53 B8L76S5 NUKSSCA:LN 0.93
    A Acc GBP GB00B1L6DW68 B1L6DW6 NUKSSAA:LN 1.80
    D Acc GBP GB00BVCXMD05 BVCXMD0 NEUKOFD:LN 0.84

    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

    Veronika Blazicek

    Sales Executive - UK & Europe

    Tel: +44 20 3249 0189

    Mob: +44 7850 770 480

    Email: veronika.blazicek

    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