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Neptune Russia Class C - Accumulation (GBP)

Sell:158.50p Buy:158.50p Change: 0.40p (0.25%)
Prices as at 19 September 2019
Sell:158.50p
Buy:158.50p
Change: 0.40p (0.25%)
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
Prices as at 19 September 2019
Sell:158.50p
Buy:158.50p
Change: 0.40p (0.25%)
Prices as at 19 September 2019
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on our Wealth 50 list of what we believe are the best funds in each sector. If a fund is not within our Wealth 50 this is not necessarily a recommendation to sell. However, if you are thinking of adding to your investments we believe Wealth 50 funds are superior alternatives. View funds on the Wealth 50 »

This fund offers pure exposure to the Russian stock market, an adventurous area of the investment world which offers the potential for long-term performance but with heightened levels of volatility.

The fund is run by Robin Geffen, an experienced and well-incentivised manager. Our analysis suggests the manager has struggled to add value through stock selection for several years and the fund was therefore recently removed from the Wealth 150. That said, we believe other managers investing in Russia struggle to consistently add value ahead of the wider market and the Neptune fund has performed relatively well compared with many of its peers.

View our full research note on the Neptune Russia and Greater Russia Fund »

Our view on the sector

Many people equate Russia with oil and natural gas, two commodities the world cannot live without. These have been key drivers behind Russia's success, but there is much more besides. Russia has a wealth of natural and mineral resources, including gold, iron ore and nickel. As wages rise and living standards improve consumers are also able to spend more, which could further boost economic growth over the long term. The Russian stock market is a higher-risk area and in the shorter term it is likely to remain linked to the energy market, while political uncertainty and corruption are particularly acute factors. Russia is only likely to appeal to adventurous investors as part of a well-diversified portfolio.

Performance Analysis

The Neptune Russia & Greater Russia Fund's official benchmark is the MSCI Russia Large Cap Index. However, in our view, the MSCI Russia 10-40 Index is a more appropriate benchmark as it reflects the investment restrictions of the fund. The MSCI Russia 10-40 Index launched in May 2006 and, therefore, performance prior to this point is shown against the MSCI Russia Large Cap index in the chart to the right. Although the fund has demonstrated periods of outperformance in the past, it has struggled in recent years.

Performance of the Russian stock market has been volatile over the long term. It has tended to exhibit a high degree of correlation to the oil price and tends to be highly sensitive to investor sentiment. It also operates a concentrated portfolio which is a higher risk approach and has a bias towards a small number of large companies.

We expect the fund's performance to deviate from the index at times as it is positioned fairly differently to the wider market. The index is largely dominated by energy and materials businesses, to which the fund has some exposure. However, the fund has greater exposure to technology, industrials and consumer businesses than the market, with the aim of offering investors broader exposure to the Russian economy.

Investment Philosophy

Neptune has a common philosophy across its fund range based on a belief that the world should be viewed at the global industry or sector level. For this fund, research focuses on understanding how global industry trends and economics will influence Russian companies, and which sectors have the greatest potential given the prevailing conditions. The strongest companies within these themes are then selected.

Process and Portfolio Construction

Robin Geffen is supported by a team of economists and analysts whose responsibilities are split by global sectors. Analysts carry out regular detailed reviews of their sectors and the team subsequently take a view on which sectors or industries could be expected to outperform in the future. Individual company analysis involves assessing numerous factors, including company management and business prospects, with the aim of valuing a business.

This fund is typically limited to invest a maximum of 30% in any one sector. Individual stock positions are limited to 10%, but will normally be in the range of 3% to 5%. The fund invests primarily in American Depositary Receipts or Global Depositary Receipts, providing exposure to Russian companies via what is typically a US-listed security. This provides extra liquidity and improvements in reporting standards over locally-listed equities.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

18/09/14 to 18/09/15 18/09/15 to 18/09/16 18/09/16 to 18/09/17 18/09/17 to 18/09/18 18/09/18 to 18/09/19
Annual return -26.74% 39.94% 31.39% 6.37% 28.56%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Neptune Investment Management was formed in 2002 as an independent and privately owned company by Robin Geffen. It has a number of core and specialist funds. Neptune's funds are not constrained by benchmarks, allowing a high conviction approach to investment management. One of the attractions of the firm is its employees and directors own around 75% of the company, aligning the goals of the fund managers and staff with those of investors.

Information about the fund

Fund manager biography

manager photo
Manager Name: Robin Geffen
Manager start date: 31 December 2004
Manager located in: London

Robin founded Neptune Investment Management in May 2002 and is the architect of Neptune's global sector investment approach. He graduated from Oxford in 1979 and began his investment career at Charterhouse J Rothschild before moving onto Eagle Star, York Trust plc and then Scottish Equitable, where he set up their pooled fund business. Robin joined Orbitex Investments Limited as Chief Investment Officer in 1997 and was most recently Global CIO - Pensions, before founding Neptune.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account