Overview

The Neptune Japan Equity Fund offers investors exposure to Japan’s multinational companies, many of which dominate their global industries and derive the majority of their revenues from overseas. As a result, they are able to benefit from the translation benefits of a weak yen, enabling faster revenue growth. The Japan Equity Fund is a mirror portfolio of the Neptune Japan Opportunities Fund’s holdings but without the portfolio-wide yen hedge, allowing investors to manage their currency exposure according to their own investment views via different currency share classes.

Investment objective

To provide capital growth by investing predominantly, being 80% or more, in a focused portfolio of approximately 40-60 Japanese companies, selected at the manager's discretion.

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

Ongoing charge (%) 0.90
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00BXDZFF23
Bloomberg NJAPICG:LN
SEDOL BXDZFF2

Fund managers

Chris Taylor

Fund Manager
  • Role at Neptune

    Investment Director, Head of Research

  • Time at Neptune

    15 years

Storm Uru

Deputy Manager
  • Role at Neptune

    Fund Manager

  • Time at Neptune

    4 years

  • Research focus

    Industrials

George Boyd-Bowman

Assistant Manager
  • Role at Neptune

    Investment Director, Head of US Equities

  • Time at Neptune

    8 years

  • Research focus

    Financials

Performance

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs Launch
Fund 4.1 9.2 -6.4 37.0 32.7
Benchmark 2.6 7.2 -2.1 33.1 46.1
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund - - 30.8 20.5 -17.6
Benchmark - - 23.4 15.6 -8.4

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. 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 Japan and the benchmark is TOPIX 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.

FE Crown Fund Rating applies to C Accumulation share class in pound sterling. FE Crown Fund 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 - - 30.8 20.5 -17.6
Benchmark - - 23.4 15.6 -8.4
IA sector - - 22.5 18.7 -11.3
IA rank - - 7/69 22/71 73/77
Quartile - - 1 2 4

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. The performance of other share classes may differ.

The Fund's benchmark is the TOPIX 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.

Portfolio

Data as at 30/06/2019

Top ten holdings (%)

FundIndex
Nintendo 6.22 1.02
Keyence 4.90 1.46
SUMCO 4.59 0.06
Bandai Namco 4.13 0.24
Toyota Motor 2.96 3.35
Hitachi 2.77 0.80
Okuma Corporation 2.74 0.03
Sumitomo Osaka Cement 2.65 0.04
Fanuc 2.63 0.85
Toshiba Plant Systems & Services 2.59 0.02

Sector (%)

FundIndex
Industrials 29.2 22.9
Materials 18.2 6.4
Information technology 16.9 11.0
Consumer discretionary 10.9 17.6
Financials 9.6 10.5
Communication services 6.2 8.6
Real estate 4.0 2.9
Energy 2.6 1.0
Consumer staples 0.0 8.9
Healthcare 0.0 8.5
Utilities 0.0 1.7
Cash 2.4000 0.0

Top ten holdings (%)

FundIndex
Nintendo 6.22 1.02
Keyence 4.90 1.46
SUMCO 4.59 0.06
Bandai Namco 4.13 0.24
Toyota Motor 2.96 3.35
Hitachi 2.77 0.80
Okuma Corporation 2.74 0.03
Sumitomo Osaka Cement 2.65 0.04
Fanuc 2.63 0.85
Toshiba Plant Systems & Services 2.59 0.02

Sector (%)

FundIndex
Industrials 29.2 22.9
Materials 18.2 6.4
Information technology 16.9 11.0
Consumer discretionary 10.9 17.6
Financials 9.6 10.5
Communication services 6.2 8.6
Real estate 4.0 2.9
Energy 2.6 1.0
Consumer staples 0.0 8.9
Healthcare 0.0 8.5
Utilities 0.0 1.7
Cash 2.4000 0.0

    Active share

    Active share 82.9%

    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 40

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q2 2019

    Market overview

    The TOPIX, in line with the rest of the world’s markets, slipped lower during the second half of the quarter. Initially, across the wholes of April, the index traded between 1,600 and 1,620 before falling by around 100 points after the extended Golden Week holiday to celebrate the new Emperor’s accession. This reflected the escalation of tariffs upon Chinese imports by the US as well as fears of this triggering a slowdown in both Global GDP and World Trade growth rates.

    In addition, early May saw the start of company full year earnings announcements accompanied by their official projections for the current year. The latter triggered widespread reflex forecast downgrades by the analytical community which meant thereafter the index spent the next 2 months ranging between 1,500 and 1,560 as investors were in turn optimistic or pessimistic regarding the future.

    Portfolio attribution

    The Fund’s outperformance came principally from the Fund’s materials and communications sectors, the first through being overweight and outperforming with particularly strong contributions from Kansai Paint, Shinetsu Chemicals and Toray. Whilst the communication services sector’s returns were primarily driven by Nintendo’s strong gains. Otherwise the Fund’s underweighting in the defensive sectors, namely consumer staples and healthcare held back the potential gains, as did having a bigger than Index exposure to industrials. In the latter, our domestic construction related holdings fell almost 20%, namely Taisei, Haseko and Sumitomo-Mitsui Construction. That said the Fund also benefited from the broadly better returns, ie. lower losses, made by the larger capitalized stocks whilst the mid and smaller fared worse.

    Outlook

    In the short term, we expect the market to remain stable with sentiment remaining volatile unless there Is a significant deterioration in US China trade talks. Current economic news suggests that the world is passing through the low point of its recent slowdown, which should help the market recover. Our outlook for the underlying portfolios remain very positive. Recent market moves further illustrate that many investors wrongly equate falling global trade to slowing global growth, but we expect the latter to surprise on the upside over the short to medium term. More importantly, though, the portfolios continue to trade at a significant discount to the wider market yet offer considerably stronger earnings growth. In our view, over the long-term, valuation and company fundamentals drive equity returns.

    Chris Taylor

    Fund Manager

    The Fund’s outperformance came principally from the Fund’s materials and communications sectors

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc GBP 136.10 0.15 17/07/2019
    C Acc GBP Hdg 91.56 0.28 17/07/2019
    C Acc EUR Hdg 94.53 0.29 17/07/2019
    C Acc USD Hdg 98.69 0.28 17/07/2019
    D Acc GBP 105.70 0.09 17/07/2019

    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 contact our European Sales team.

    Literature

    English documents

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

    German documents

    Key Investor Information Document
    08/02/2019

    Codes & fees

    ISIN SEDOL Bloomberg Ongoing charge (%)
    C Acc GBP GB00BXDZFF23 BXDZFF2 NJAPICG:LN 0.90
    C Acc GBP Hdg GB00BXDZFG30 BXDZFG3 NJPICGH:LN 0.96
    C Acc EUR Hdg GB00BXDZFJ60 BXDZFJ6 NJAICEH:LN 0.97
    C Acc USD Hdg GB00BXDZFL82 BXDZFL8 NJPICUH:LN 0.96
    D Acc GBP GB00BDHXQZ93 BDHXQZ9 NEJPDAG:LN 0.80

    Contact us

    European Sales Team

    Tristan Grossetete

    Sales Manager - Europe

    Tel: +44 20 3249 0153

    Mob: +44 7970 230 942

    Email: tristan.grossetete

    Veronika Blazicek

    Sales Executive - UK & Europe

    Tel: +44 20 3249 0189

    Mob: +44 7850 770 480

    Email: veronika.blazicek

    Contact our local representative

    ACOLIN Fund Services AG
    Affolternstrasse 56
    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