Investment objective

The investment objective of the Neptune India Fund is to generate long-term (5 years or more) capital growth.

Strategy

The Fund invests in a mix of companies that may provide growth opportunities, attractive valuations, or special situations. Special situations can exist where companies are out of favour, misunderstood or where management changes or takeovers are expected.

Ongoing charge (%) 1.31
Minimum investment
Initial 375,000
Top up -
Regular -
Share class codes
ISIN GB00BWK1S243
Bloomberg NEPINCU:LN
SEDOL BWK1S24

Fund managers

Ewan Thompson

Fund Manager
  • Role at Neptune

    Investment Director, Head of Emerging Market Equities

  • Time at Neptune

    13 years

  • Research focus

    Metals and Mining

Ruth Chambers

Assistant Manager
  • Role at Neptune

    Fund Manager

  • Time at Neptune

    3 years

  • Research focus

    Energy and Utilities

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs 10 yrs Launch
Fund -5.7 -5.3 -15.8 -1.7 15.0 50.3 39.1
Benchmark -5.2 2.1 -3.9 21.1 22.0 63.8 72.0
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund 42.6 -4.4 4.5 36.7 -18.2
Benchmark 23.9 -6.1 -1.4 38.8 -7.3

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. Reported date prices used for cumulative and discrete performance tables. The performance of other share classes may differ.

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. Investments in emerging markets may be higher risk and more volatile than investments in developed markets.

Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices.  None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information.  MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information.  Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com).

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund 51.5 1.2 24.6 24.9 -13.1
Benchmark 31.6 -0.7 17.6 26.7 -1.5
IA sector 4.9 -3.7 28.0 10.3 -5.3
IA rank 8/199 88/215 94/222 23/225 207/199
Quartile 1 2 2 1 4

Performance data supplied by Morningstar; C Accumulation share class performance, in dollars with net income reinvested and no initial charges. This is not the performance of the dollar share class. Reported date prices used for cumulative and discrete performance tables. The performance of other share classes may differ.

The Fund's benchmark is the MSCI India 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. Investments in emerging markets may be higher risk and more volatile than investments in developed markets.

Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices.  None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information.  MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information.  Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com).

Portfolio

Data as at 31/07/2019

Top ten holdings (%)

FundIndex
Infosys Technologies 9.44 8.61
ICICI Bank 7.04 3.14
Reliance Industries 5.85 10.33
Housing Development Finance 4.57 10.78
Blue Star 3.99 0.00
HCL Technologies 3.26 1.74
HDFC Bank 3.25 0.00
Larsen & Toubro 3.22 2.05
Godrej Consumer Products 3.21 0.67
Ramco Cements  3.09 0.00

Sector (%)

FundIndex
Financials 30.6 25.4
Information technology 16.9 18.4
Materials 12.8 8.4
Industrials 10.1 4.3
Healthcare 8.7 4.6
Energy 7.8 14.7
Consumer discretionary 3.3 7.7
Consumer staples 3.2 10.7
Communication services 2.1 2.9
Real estate 1.4 0.0
Utilities 0.0 3.0
Cash 3.1000 0.0

Top ten holdings (%)

FundIndex
Infosys Technologies 9.44 8.61
ICICI Bank 7.04 3.14
Reliance Industries 5.85 10.33
Housing Development Finance 4.57 10.78
Blue Star 3.99 0.00
HCL Technologies 3.26 1.74
HDFC Bank 3.25 0.00
Larsen & Toubro 3.22 2.05
Godrej Consumer Products 3.21 0.67
Ramco Cements  3.09 0.00

Sector (%)

FundIndex
Financials 30.6 25.4
Information technology 16.9 18.4
Materials 12.8 8.4
Industrials 10.1 4.3
Healthcare 8.7 4.6
Energy 7.8 14.7
Consumer discretionary 3.3 7.7
Consumer staples 3.2 10.7
Communication services 2.1 2.9
Real estate 1.4 0.0
Utilities 0.0 3.0
Cash 3.1000 0.0

    Active share

    Active share 65.4%

    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 36

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q2 2019

    Market overview

    The Indian market has, in general, continued the solid upward trend established in early 2016, albeit with a certain degree of volatility and indeed, although positive year-to-date, the market return for the second quarter itself was choppy but essentially flat in US dollar terms – very much in-line with broader emerging markets – though the weakness in sterling resulted in a return of 2.9% for UK investors. India was in general supported by wider sentiment towards emerging markets in the quarter – namely ongoing uncertainty over the global growth outlook due to the US/China trade dispute and fears over an appreciating US dollar. On this score, whilst there remains little clarity over the direction of the trade war, the easing in the US dollar has been supportive for emerging markets, whilst the other perennial macro concern – that of higher US Treasury yields – continued to work favourably as the benchmark US 10yr Treasury yield dropped towards 2% (from a high of 3.2% in November). That said, this was a quarter heavily influenced by domestic factors, with the results of the 2019 General Election being announced in late May, revealing an emphatic endorsement of Narendra Modi’s BJP-led government. For a nation used to frequent changes of leadership and messy coalition government, back-to-back election wins and outright majority for the BJP was remarkable. The months ahead of the elections had contributed to the market volatility due to uncertainty over the election outcome, but once the results were released markets responded positively. The election volatility also had a significant impact on sector performance, with domestic cyclicals such as industrials and financials rallying strongly, with more safe-haven sectors such as healthcare performing poorly. This was a major market rotation away from such defensive, export-led sectors that had outperformed ahead of the elections.

    Portfolio attribution

    The main reasons for the underperformance were in the healthcare, financials and IT sectors. A number of stock-specific issues in the financial sector, notably relating to Yes Bank and IndiaBulls Housing Finance were a significant drag on the portfolio in what was otherwise a very strongly performing sector for the benchmark. In Healthcare, two holdings in the mid-cap sector also proved costly (Healthcare Global and Torrent Pharma). These two sectors more than offset much more positive results for holdings in the energy, materials and industrials sectors.

    Outlook

    We remain positive in outlook for the Indian market and believe that the electoral results bolster the investment case for Indian equities. We anticipate a continuation of the reform agenda established in Modi’s first term, with a focus on investment and financial inclusion and as such remain overweight these areas of the market. We also maintain a bias towards mid-cap holdings that we see being the long-term beneficiaries of the broadening of the domestic investor base in India, as well as providing a greater degree of earnings leverage to the domestic economy. No changes were made to the portfolio over the quarter.

    Ewan Thompson

    Fund Manager

    The main reasons for the underperformance were in the healthcare, financials and IT sectors.

    Related event

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc USD 96.28 0.14 19/08/2019
    C Acc GBP 213.90 0.42 19/08/2019
    A Acc USD 78.04 0.14 19/08/2019

    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 contact our European Sales team.

    Literature

    English documents

    Factsheet
    31/07/2019
    Quarterly Commentary
    30/06/2019
    Key Investor Information Document
    07/08/2019

    German documents

    Key Investor Information Document
    07/08/2019

    Codes & fees

    ISIN SEDOL Bloomberg Ongoing charge (%)
    C Acc USD GB00BWK1S243 BWK1S24 NEPINCU:LN 1.28
    C Acc GBP GB00B1L6DV51 B1L6DV5 NEPINDB:LN 1.31
    A Acc USD GB00B60T6221 B60T622 NEPINDA:LN 2.29

    Contact us

    European Sales Team

    Contact our local representative

    ACOLIN Fund Services AG
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    CH-8050
    Zürich
    Switzerland
    Telephone: +41 44 396 96 96

    Contact our Swiss paying agent

    Banque Cantonale de Genève
    17, Quai de l’Ile
    1204 Geneva
    Switzerland