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Neptune European Opportunities - removal from Wealth 150

Kate Marshall | Tue 20 January 2015

Investments can go down as well as up so there is always a danger that you could get back less than you invest. Nothing here is personalised advice, if unsure you should seek advice.

The Neptune European Opportunities Fund has been removed from the Wealth 150 list of our favourite funds for new investment.

Rob Burnett, the fund's manager, positions the portfolio based on his views on the wider economy. At times he has shifted the portfolio aggressively between countries and industries, depending on his outlook. As the fund is positioned quite differently to many of its peers, performance has tended to deviate markedly from the average fund in the sector.

Over the past few years the fund has struggled to outperform the broader European market and, at times, it has heavily underperformed. As such the fund has not added any value above its benchmark for a considerable period; our analysis suggests the manager has struggled to add value through his stock selection for some time.

Furthermore, in recent years, the fund has been positioned to benefit from a euro zone recovery and this positioning has not been rewarded by the market. Rob Burnett has favoured areas he believes to be significantly undervalued, and the fund has held a considerable bias towards more economically-sensitive areas of the market. A large portion of the fund has been invested in financials, particularly in the banking sector, as well as Southern European countries. This has cost performance, particularly over the past year, as investors have tended to favour higher-quality, defensive businesses. The fund is concentrated which allows each holding to have a significant impact on performance although this is a higher risk approach.

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At present, Rob Burnett retains his conviction in a euro zone recovery, especially across the periphery. If his views play out, the fund could perform well. On the other hand, if he is wrong, and the recovery weakens and deflation persists, the fund is likely to struggle.

Over the longer term, Rob Burnett has built a reasonable track record. However, the IMA Europe ex UK sector is highly competitive and it features a large number of high-quality managers with strong track records. The Wealth 150 is reserved for those in which we have the highest conviction and at present, we feel there are superior alternatives for new investment in this sector. Our preferred funds in this sector feature on the Wealth 150.

Annual percentage growth
Jan 10 -
Jan 11
Jan 11 -
Jan 12
Jan 12 -
Jan 13
Jan 13 -
Jan 14
Jan 14 -
Jan 15
Neptune European Opportunities 7.6% -10.1% 11.5% 18.9% -7.8%
IMA Europe ex UK 8.6% -14.5% 18.0% 23.3% 0.1%
MSCI Europe ex UK 4.0% -12.4% 16.6% 22.2% 1.8%

Past performance is not a guide to future returns. Source: Lipper IM* to 02/01/2015

Find out more about this fund including how to invest

Please read the key features/key investor information document in addition to the information above.

The value of investments can go down as well as up, this means you could get back less than you invested. Therefore all investments should be regarded with a long term view. No news or research item is a personal recommendation to deal. If you are unsure about the suitability of an investment please contact us for advice.
Important information - Please remember the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This article is provided to help you make your own investment decisions, it is not advice. If you are unsure of the suitability of an investment for your circumstances please seek advice. No news or research item is a personal recommendation to deal.


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