Overview

The Neptune India Fund gives investors access to one of the world’s most exciting, fastest growing markets. India is undergoing a period of rapid transformation, with a modernising economy and growing population leading to higher levels of domestic consumption. A nimble portfolio, Fund Manager Ewan Thompson seeks to identify the best investment opportunities across the market cap spectrum.

Investment objective

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

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

Ongoing charge (%) 1.24
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00B1L6DV51
Bloomberg NEPINDB:LN
SEDOL B1L6DV5

Fund managers

Ewan Thompson

Fund Manager
  • Role at Neptune

    Investment Director, Co-Head of Emerging Market Equities

  • Time at Neptune

    12 years

  • Research focus

    Metals and Mining

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

Performance

Portfolio

Data as at 30/11/2018

Top ten holdings (%)

FundIndex
Infosys Technologies 7.13 7.40
Reliance Industries 5.07 10.56
ICICI Bank 4.75 2.68
Yes Bank 3.63 0.92
Housing Development Finance 3.45 10.07
Blue Star 3.37 0.00
Mahindra + Mahindra 3.25 1.87
Godrej Consumer Products 3.23 0.85
Maruti Suzuki India 3.07 2.57
Torrent Pharma 2.96 0.00

Sector (%)

FundIndex
Financials 30.8 23.2
Information technology 14.5 17.0
Materials 10.8 8.6
Consumer discretionary 10.7 10.2
Healthcare 9.6 5.3
Industrials 9.2 4.8
Energy 7.1 14.0
Consumer staples 3.2 11.3
Communication services 2.3 2.6
Real estate 1.1 0.0
Utilities 0.0 2.9
Cash 0.7000 0.0

Top ten holdings (%)

FundIndex
Infosys Technologies 7.13 7.40
Reliance Industries 5.07 10.56
ICICI Bank 4.75 2.68
Yes Bank 3.63 0.92
Housing Development Finance 3.45 10.07
Blue Star 3.37 0.00
Mahindra + Mahindra 3.25 1.87
Godrej Consumer Products 3.23 0.85
Maruti Suzuki India 3.07 2.57
Torrent Pharma 2.96 0.00

Sector (%)

FundIndex
Financials 30.8 23.2
Information technology 14.5 17.0
Materials 10.8 8.6
Consumer discretionary 10.7 10.2
Healthcare 9.6 5.3
Industrials 9.2 4.8
Energy 7.1 14.0
Consumer staples 3.2 11.3
Communication services 2.3 2.6
Real estate 1.1 0.0
Utilities 0.0 2.9
Cash 0.7000 0.0

    Active share

    Active share 64.2%

    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 41

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q3 2018

    Market overview

    Emerging markets remained under pressure during the third quarter 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, India posted robust returns during July and August before giving them all back in September as concerns over rising inflation and a widening trade deficit mounted given the continued strength in the oil price. Market sentiment was also severely dented by concerns over credit and liquidity issues in the non-banking financial company (NBFC) segment following the default of IL&FS. The oil price has been boosted by robust global demand and supply concerns with Venezuelan production collapsing and the upcoming renewal of sanctions on Iran. As US shale productivity continues to reduce breakevens, the short-term pressure from oil should abate, easing inflationary pressures. The IL&FS default does not pose any systemic issues to the banking system and contagion has been limited with only moderate increases in funding costs for NBFCs.

    Fund attribution

    While the weakness in September led the MSCI India Index to fall over 1.0% during the quarter, the earlier gains were very highly concentrated with Index heavyweights Reliance Industries, TCS and HDFC contributing a material portion of the gains. The weaker rupee and rising inflation caused material weakness amongst Indian mid-caps with a number of holdings falling by 30%. Leading private bank Yes Bank fell by 50% as the RBI refused to grant an extension to CEO Rana Kapoor’s term and the bank is currently seeking a replacement.

    With ownership levels across emerging market funds now at the lowest levels since 2012, an opportunity for the long-term investor has emerged. India in 2012 was a different proposition – an economy blighted by serious external vulnerabilities, stagflation and a weak government without policy direction. However, the story today is of an economy that has taken the trouble to lay the foundations for stronger and more sustainable growth. India has accounted for almost 10% of incremental global growth over the past five years. Over the coming decade, this will rise to 20% – overtaking China’s contribution as it slows.

    Outlook

    India’s well deserved premium to Asia has contracted from 50% in 2015 to 30%. With many distracted by all things to do with President Trump and trade wars, a compelling entry point has quietly emerged in this powerful domestically driven investment story.

    Ewan Thompson

    Fund Manager

    With ownership levels across emerging market funds now at the lowest levels since 2012, an opportunity for the long-term investor has emerged

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 223.90 0.67 18/12/2018
    C Acc USD 105.50 1.15 18/12/2018
    A Acc USD 84.71 1.12 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 GB00B1L6DV51 B1L6DV5 NEPINDB:LN 1.24
    C Acc USD GB00BWK1S243 BWK1S24 NEPINCU:LN 1.25
    A Acc USD GB00B60T6221 B60T622 NEPINDA:LN 2.28

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