Investment objective

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

Strategy

The Fund invests in a concentrated portfolio of 20-40 companies selected using a combination of economic, industry and stock specific analysis.

Please note that on 7 August 2019 the Fund’s name was changed from the Russia & Greater Russia Fund to the Russia Fund.

Ongoing charge (%) 1.05
Minimum investment
Initial 250,000
Top up -
Regular -
Share class codes
ISIN GB00B60T5V43
Bloomberg NEPRGBU:LN
SEDOL B60T5V4

Fund managers

Robin Geffen

Fund Manager
  • Role at Neptune

    Fund Manager, Founder and CEO

  • Time at Neptune

    17 years

Thomas Smith

Deputy Manager
  • Role at Neptune

    Investment Director, Head of European Equities

  • Time at Neptune

    10 years

  • Research focus

    Energy and Utilities

Ewan Thompson

Assistant Manager
  • Role at Neptune

    Investment Director, Head of Emerging Market Equities

  • Time at Neptune

    13 years

  • Research focus

    Metals and Mining

Performance^

Cumulative performance (%)

1 mth 1 mth YTD 1 yr 3 yrs 5 yrs 10 yrs Launch
Fund 0.2 26.7 18.7 80.0 37.7 68.2 213.7
Benchmark -0.4 27.3 18.0 62.0 42.0 88.7 305.0
Large chart

Calendar year performance (%)

2014 2015 2016 2017 2018
Fund -49.2 5.9 44.8 15.3 0.0
Benchmark -42.6 7.9 54.8 1.7 0.1

Performance data supplied by Morningstar; C Accumulation share class performance, in sterling with net income reinvested and no initial charges. Launch date used is 31/12/2004, which is the launch of the A Accumulation share class. The C Accumulation share class was launched on 03/10/2012, so during the period from 31/12/2004 to 03/10/2012 the performance record is based on the pre-existing A Accumulation share class. Reported date prices used for cumulative and discrete performance tables. 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 Specialist and the benchmark is the MSCI Russia 10-40 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.

^Please note that on 7 August 2019 the benchmark was changed from the MSCI Russia Large Cap Index to the MSCI Russia 10-40 Index. The MSCI Russia 10-40 Index launched on 31 May 2006. The since launch performance for the benchmark therefore consists of the MSCI Russia Large Cap Index until 30 May 2006 and the MSCI Russia 10-40 Index from 31 May 2006.

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).

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 -46.0 12.0 72.7 5.3 6.2
Benchmark -39.0 14.2 84.6 -7.1 6.3
IA sector 4.9 -3.7 28.0 10.3 -5.3
IA rank 199/199 17/215 19/222 152/225 15/199
Quartile 4 1 1 3 1

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. Launch date used is 31/12/2004, which is the launch of the A Accumulation share class. The C Accumulation share class was launched on 03/10/2012, so during the period from 31/12/2004 to 03/10/2012 the performance record is based on the pre-existing A Accumulation 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 Russia 10-40 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.

^Please note that on 7 August 2019 the benchmark was changed from the MSCI Russia Large Cap Index to the MSCI Russia 10-40 Index. The MSCI Russia 10-40 Index launched on 31 May 2006. The since launch performance for the benchmark therefore consists of the MSCI Russia Large Cap Index until 30 May 2006 and the MSCI Russia 10-40 Index from 31 May 2006.

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
Sberbank 9.74 7.21
Novatek 9.66 9.21
Norilsk Nickel 9.64 4.86
Lukoil  9.54 9.09
Gazprom Neft 4.77 0.00
EPAM Systems 4.70 0.00
Yandex 4.67 0.00
Evraz 4.63 0.00
Tatneft  4.57 4.47
Mail.Ru Group 4.53 0.00

Sector (%)

FundIndex
Energy 30.1 41.8
Materials 22.0 29.3
Financials 14.3 11.6
Communication services 11.4 4.5
Consumer staples 9.4 9.2
Industrials 7.5 0.0
Information technology 4.7 0.0
Consumer discretionary 0.6 0.0
Utilities 0.0 3.7

Top ten holdings (%)

FundIndex
Sberbank 9.74 7.21
Novatek 9.66 9.21
Norilsk Nickel 9.64 4.86
Lukoil  9.54 9.09
Gazprom Neft 4.77 0.00
EPAM Systems 4.70 0.00
Yandex 4.67 0.00
Evraz 4.63 0.00
Tatneft  4.57 4.47
Mail.Ru Group 4.53 0.00

Sector (%)

FundIndex
Energy 30.1 41.8
Materials 22.0 29.3
Financials 14.3 11.6
Communication services 11.4 4.5
Consumer staples 9.4 9.2
Industrials 7.5 0.0
Information technology 4.7 0.0
Consumer discretionary 0.6 0.0
Utilities 0.0 3.7

    Active share

    Active share 40.9%

    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 30

    Total number of holdings, excluding cash positions.

    Quarterly commentary

    Q2 2019

    Market overview

    Global markets had a volatile but, ultimately, positive second quarter with emerging and developed markets returning 3.1% and 6.7%, respectively. Key drivers were the continued dovishness of global central banks and the agreement at the G20 summit by President Trump and Xi Jinping to resume trade talks. The US Federal Reserve acknowledged the need for interest rate cuts, with the first expected in July, and the European Central Bank signalled that additional monetary stimulus might be needed in the form of rate cuts and/or asset purchases. Trade discussions were the primary source of volatility, with negotiations breaking down in May before the two leaders agreed to continue talking at the G20 at the end of June.

    Portfolio attribution

    Russian markets were one of the top performers globally during the second quarter (+19.9%), supported by rising global markets and the surprise dividend recommendation at Gazprom which saw the stock rally by 66% in the quarter. The sharp move in Gazprom accounted for 8% of relative underperformance, while positive contributions came from X5, Norilsk Nickel and Gazprom Neft. While Gazprom’s dividend announcement caught the market by surprise, we continue to have concerns over earnings in the short to medium term and capital allocation in the longer term. We expect Gazprom to compete with rising US LNG exports by having to lower gas prices to Europe, which will lead to declining earnings. Therefore, while the enhanced payout ratio will boost the dividends in the short term, we see dividends falling along with earnings in the years ahead.

    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 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, Russia is still trading at a more than 50% 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 Fund continues to offer diversified exposure in sectors that are not present in the benchmark, such as the IT and industrials sectors

    Related event

    Insights & analysis

    Prices

    Choose date
    Share class Price Change (%) Date
    C Acc USD 141.90 -0.56 19/08/2019
    C Acc EUR 186.30 -0.85 19/08/2019
    C Acc GBP 151.50 -0.26 19/08/2019
    A Acc USD 136.60 -0.58 19/08/2019
    A Acc GBP 426.20 -0.28 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 GB00B60T5V43 B60T5V4 NEPRGBU:LN 1.05
    C Acc EUR GB00B60T5S14 B60T5S1 NEPRGBE:LN 1.03
    C Acc GBP GB00B86WB793 B86WB79 NEPRGBC:LN 1.05
    A Acc USD GB00B60T5T21 B60T5T2 NEPRGAU:LN 2.01
    A Acc GBP GB00B04H0T52 B04H0T5 CFNRUAA:LN 2.01

    Contact us

    European Sales Team

    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