Other Citywire websites

Neptune European Opportunities

To print fund fact sheets, please use the print option in the Factsheet Tools section in the top right corner:

http://citywire.co.uk/fund/factsheet/c18877

Factsheet Tools

reset

No results found


Glossary

  • Fund

    A way for individual investors to pool their money together, allowing them to invest in assets that would otherwise be unobtainable

  • Fund manager

    The person who decides where the fund's money should be invested. As such, finding a talented manager (such as those with a Citywire rating) is of paramount importance

  • Sector

    Funds are grouped together into sectors, allowing fund managers to be judged against their benchmarks and peer group. Each sector has rules about what assets funds are allowed to invest in

  • Assets

    A generic term meaning 'what you own'. If you can buy it, it's an asset. In the world of investments the most common assets are shares, bonds, property and cash.

  • Asset class

    A group of assets with similar properties. For example, while shares will rise or fall in price individually, economic factors can affect all shares similarly. The same economic factors might affect bonds very differently – so shares and bonds are separate asset classes.

  • Asset allocation

    The process of deciding which asset classes to invest in. Successful asset allocation is often more important than selecting individual assets (for example deciding whether to invest mainly in shares, rather than which shares to invest in). Since most fund managers are tied to their sector rules, you need to either do your own asset allocation or buy a managed fund.

  • Benchmark

    A measure of how different areas of the markets are performing, against which funds can be compared. For example, a fund in the UK All Companies sector might be compared against the FTSE All-Share index of every company traded on the London Stock Exchange. A good fund manager will be able to beat the benchmark most of the time, but very few can.

  • Securities

    A contract representing something of financial value. Shares and bonds are the most common types of securities.

  • Managed funds

    Unlike most funds, which are restricted to investing in particular markets by the rules of their sector, managed funds can invest in just about anything. While they can have subtly different objectives, they are split into 'Active Managed', where the manager is given free reign; 'Balanced Managed', where the manager can invest a maximum of 85% in shares to reduce risk; and 'Cautious Managed' with a 60% maximum in shares.

  • Shares

    A share in a company represents part ownership of its assets (e.g. its buildings, intellectual property and so on) and its future income (paid out as dividends). The value of a share depends largely on other investors' expectations of the company's future growth and income.

  • Bonds

    Companies can issue bonds as a way of raising money. When you buy a bond, the company is agreeing to pay you a fixed income (hence the alternative name 'fixed income securities') for a certain time period, after which your money is repaid. If investors suspect a company may be unable to repay, they will demand a higher income or 'yield' - hence 'high yield bonds'.

  • Risk

    In investing, 'risk' can refer to different things, but essentially means the possibility that your objectives won't be met. In this context, risk is a calculation of the 'standard deviation' of returns each month – in otherwords, a measure of how rocky the returns are. The higher the rank, the less risk the fund takes with your money.

  • Sharpe Ratio

    This is a way of calculating 'risk adjusted returns' – i.e. how much value the fund is adding above the risk it takes to generate its returns. The higher the number the better.

  • Return

    A measure of how your investments have performed, relative to your initial investment. For example if you invest £1,000 in a fund, and a year later your investment is worth £1,100, you've made a 10% return.

  • Maximum loss

    Comparing the maximum loss for different managers (or between a manager and their benchmarks, as on these factsheets) over a given period is a good way of seeing who's doing the best job of safeguarding investors' money. Otherwise known as maximum 'drawdown', this is a measure of how much you would lose if you bought an investment at its most expensive and sold at its cheapest. For example if a fund was worth £1 a unit at one point but then fell to 50p – regardless of what happened in the meantime – the fund's loss would be 50%.

  • LATEST PRICE

    updated on 16/04/2014

  • £4.50
  • CHANGE IN PRICE

    from 15/04/2014

  • 0.02%
  • TOTAL RETURN

    over 3 years to 16/04/2014

  • 23.1%
  • Benchmark

    18.7%

Citywire Selection

Neptune European Opportunities

Register or Sign in to receive email alerts for items in your favourites whenever we write about them
Ranked 52/100 in Equity - Europe Excluding UK over 3 years

TOTAL RETURN over 1 month to 16/04/2014

Key:

 Neptune European Opportunities  Benchmark

Who runs this fund?

Fund Group

Neptune

How this fund has performed over

View full chart tool

Maximum loss on £1000

How Neptune European Opportunities compares to the sector over

How has Neptune European Opportunities performed?

  • Fund Performance
  • Return
  • Discrete performance
  • Change time period
  • £ or %

    Currency or Percentage

  • Reset

How Neptune European Opportunities compares to the sector over

Top 10 holdings Updated 31-05-2005

News about: Neptune European Opportunities

  • Fund information

    • Launch Date 29 Nov 2002
    • Share Class size £240.2m
    • Base Currency GBP
    • ISIN GB0032308594
  • Purchase Info

    • Minimum initial investment £1000
    • Minimum additional investment N/A
  • Charges

    • Annual management charge1.8%
    • Initial charge5%

Neptune European Opportunities

Rob Burnett, manager of the Neptune European Opportunities fund, has set his sights on a European recovery having gone overweight banks and other cyclicals earlier this year.



He is looking to peripheral Europe to bounce back and has raised the fund’s exposure to small and medium-sized companies.



Burnett believes the economic crisis in Europe is drawing to a close and this has led him to sell down stronger countries such as Switzerland, Germany and Scandinavia in favour of southern Europe.



‘We are a lot more optimistic about Italy. A couple of months ago we were worried about the coalition but [premier Enrico Letta’s recent vote of confidence victory in the Italian parliament] is a historic moment. Silvio Berlusconi has been bedevilling the country and will be thrown out of politics,’ he says.

A more certain climate has given him confidence to buy Italian banks such as UBI and Unicredit. He has also stepped into Portugal with an investment in Banco Espirito Santo.

Bank exposure

Financials are now the largest sector position at 29% of the portfolio, with French bank BNP Paribas a key holding. Burnett is also paying close attention to bank stress-testing, which will take place in 2014 under the stewardship of the European Central Bank.

Burnett expects this to lead some banks to raise capital or cut dividends. He thinks Deutsche Bank is at risk so has sold his position, and also sees uncertainties around Credit Suisse where his exposure has been reduced.







As competitiveness is starting to grow in the region, Burnett argues there is also less political risk than in the US.

This adds to his bullish outlook, which has seen him take his highest exposure to small and medium companies since 2007. The fund has 19% allocated to small caps, 21% to mid caps and 60% in large caps.

Cyclical moves

Company valuations are also behind a move into cyclical parts of the market. With blue chip companies that offer more secure growth characteristics having rallied in recent years, Burnett feels they are no longer attractively valued.

‘The price for security is high and things are getting better. This [portfolio exposure] isn’t about a simple dash for trash. It’s more to do with lower risk strategies being vulnerable. Things that look most compelling are in low valuation sectors.’

His view means he has underweight positions in health care and consumer staples. Other overweight sectors apart from financials include consumer discretionary, IT and industrials.

European recovery

The positive stance on Europe’s recovery has been implemented since the second half of 2012, although Burnett was too early to make his change which resulted in a challenging period. However, outperformance has been restored in recent months and so far this year, returns of 20.6% are just behind the index.







Burnett’s domestic focus has led to the fund having its smallest ever exposure to emerging market facing companies at 10%. This is mainly in the materials sector, where a key holding is the German multinational Heidelberg Cement.

‘The industry is pretty good but growth in India and Indonesia is tricky. A lot of companies are experiencing wage inflation, which has dented revenues. I’m not exceptionally bearish on emerging markets but it’s just that Europe domestically looks so good against the rest of the world.’

He thinks there is a knock-on effect, too, which means Europe now has a competitive advantage on wages. Car giants Renault and Volkswagen recently announced it is now 20% cheaper to hire someone in Spain than it was in 2007.

‘As growth improves, operational leverage improves and revenues and margins pick up. This will underpin the advance in European equities and I think the rise can happen for a while.’

Over five years to 30 September, the fund has returned 43.4% versus 47.7% for the FTSE World Europe ex UK index.

Citywire Selection verdict: Rob Burnett takes a macroeconomic view when shaping the portfolio and while his astute judgement during the credit crisis helped returns, the fund underperformed in 2011 and 2012.



While his positive view on stock markets has proved largely correct, Burnett admits to being too early to switch to a more growth-orientated portfolio. Signs from the second half of 2013 are that performance is back on track and the portfolio is positioned for a European recovery.

For more details view the latest factsheet .

What is Citywire Selection?

Citywire Selection is an investment guide containing around 150 of the best ways to invest in a range of areas, as chosen by our research team using a rigorous and transparent process.

We don't sell funds, so you can trust the independence of our recommendations.

Find out more or download the new Selection iPad App for free

Sorry, this link is not
quite ready yet