Overview

The first UK onshore portfolio investing solely in Russian equities, the Fund combines Manager Robin Geffen’s extensive experience of investing in Russia with Neptune’s in-house research process. This enables Robin to create a diversified portfolio of stocks that he believes are most likely to outperform, including those in sectors not typically represented in the benchmark. The Fund has a bias towards large, liquid stocks.

Investment objective

To provide capital growth by investing mainly in Russian and Greater Russian companies, selected at the manager's discretion.

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

Ongoing charge (%) 1.09
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00B86WB793
Bloomberg NEPRGBC:LN
SEDOL B86WB79

Fund managers

Robin Geffen

Fund Manager
  • Role at Neptune

    Founder and CEO

  • Time at Neptune

    16 years

Thomas Smith

Assistant Manager
  • Role at Neptune

    Investment Director, Co-Head of Emerging Market Equities

  • Time at Neptune

    9 years

  • Research focus

    Energy and Utilities

Ewan Thompson

Assistant Manager
  • Role at Neptune

    Investment Director, Co-Head of Emerging Market Equities

  • Time at Neptune

    12 years

  • Research focus

    Metals and Mining

Performance

Portfolio

Data as at 30/11/2018

Top ten holdings (%)

FundIndex
Lukoil  9.66 20.39
Norilsk Nickel 9.62 6.89
Sberbank 9.52 17.89
Novatek 9.41 8.89
Alrosa 4.85 2.19
EPAM Systems 4.66 0.00
Ros Agro 4.66 0.00
Yandex 4.59 0.00
Mail.Ru Group 4.57 0.00
Tatneft  4.47 9.28

Sector (%)

FundIndex
Energy 29.5 62.1
Materials 21.4 12.5
Financials 13.0 18.9
Communication services 10.9 2.1
Industrials 8.3 0.0
Consumer staples 7.7 4.4
Information technology 4.7 0.0
Consumer discretionary 0.6 0.0
Cash 3.9000 0.0

Top ten holdings (%)

FundIndex
Lukoil  9.66 20.39
Norilsk Nickel 9.62 6.89
Sberbank 9.52 17.89
Novatek 9.41 8.89
Alrosa 4.85 2.19
EPAM Systems 4.66 0.00
Ros Agro 4.66 0.00
Yandex 4.59 0.00
Mail.Ru Group 4.57 0.00
Tatneft  4.47 9.28

Sector (%)

FundIndex
Energy 29.5 62.1
Materials 21.4 12.5
Financials 13.0 18.9
Communication services 10.9 2.1
Industrials 8.3 0.0
Consumer staples 7.7 4.4
Information technology 4.7 0.0
Consumer discretionary 0.6 0.0
Cash 3.9000 0.0

    Active share

    Active share 46.2%

    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 26

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q3 2018

    Market overview

    The third quarter of 2018 was a tricky one for emerging markets as tighter financial conditions in the US pressured EMs FX and the escalation of the global trade war raised questions over the outlook for the global economy. Against this backdrop, Russia continued to outperform other emerging markets, as the countries hit hardest were those with large current account and budget deficits such as Turkey and Argentina. Russia runs a current account and budget surplus, which isolates it to some degree from these global shocks.

    The oil price rallied by a further 4% during the third quarter, finishing very close to $83 a barrel. The ruble continued to lag the rising oil price, with ruble denominated oil prices up 9% during the quarter. The Russian economy continued to show signs of a gradual recovery, with growth of 1.3% during the first quarter accelerating to 1.9% in the second quarter. Inflation gradually ticked higher but at 3.4% in September, still remains well below the Central Bank’s target of 4%.

    Fund attribution

    Key contributors to performance in the third quarter were our large holdings in Novatek and Lukoil, although this was offset to a degree by weakness in X5 and Aeroflot. Relative performance was hampered by not owning shares in Gazprom or Rosneft which both rallied by nearly 20%. We remain concerned by capital allocation at these companies and do not believe current valuations represent an attractive investment proposition.

    The Russian benchmarks continue to be heavily weighted in the energy sector, with many sectors of the Russian economy underrepresented or not represented at all. The Neptune Russia & Greater Russia Fund continues to offer diversified exposure in sectors that are not present in the benchmark, such as the IT and industrials sectors.

    Outlook

    Despite the recent outperformance of the Russian market against broader emerging markets during the first half of 2018, Russia is still trading at a 48% discount to emerging markets, near the lowest levels seen in the past ten years and only marginally higher than at the peak of the crisis in late 2014.

    Robin Geffen

    Fund Manager

    The Neptune Russia & Greater Russia Fund continues to offer diversified exposure in sectors that are not present in the benchmark

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 127.70 -2.30 18/12/2018
    C Acc EUR 160.40 -2.20 18/12/2018
    C Acc USD 125.30 -1.88 18/12/2018
    A Acc GBP 361.70 -2.30 18/12/2018
    A Acc EUR 151.00 -2.27 18/12/2018
    A Acc USD 121.40 -1.86 18/12/2018

    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 GB00B86WB793 B86WB79 NEPRGBC:LN 1.09
    C Acc EUR GB00B60T5S14 B60T5S1 NEPRGBE:LN 1.09
    C Acc USD GB00B60T5V43 B60T5V4 NEPRGBU:LN 1.10
    A Acc GBP GB00B04H0T52 B04H0T5 CFNRUAA:LN 2.04
    A Acc EUR GB00B60T5R07 B60T5R0 NEPRGAE:LN 2.05
    A Acc USD GB00B60T5T21 B60T5T2 NEPRGAU:LN 2.04

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