The Neptune Russia & Greater Russia Fund combines experienced fund manager Robin Geffen's knowledge of investing in the Russian stock market with Neptune's team-based research process.
Mr Geffen founded Neptune Investment Management in May 2002 and is the architect behind the asset manager's global sector investment approach. This investment process is used to analyse the economic forces and global industry trends influencing Russian companies.
The fund, which sits within the IMA's Specialist sector, features a diversified portfolio that focuses on large stocks. A third of the fund is invested in the energy sector with significant allocations to the materials and consumer staples sector. Mr Geffen has recently increased the fund's exposure to the energy sector through the addition of Bashneft and Gazprom Neft, as he believes there is a strong case for a re-rating of the Russian oil companies.
The fund's performance has lagged the benchmark - the MSCI Russia Large-Cap Index - over the last year, posting fourth-quartile performance. However, over longer time frames - such as three and five years - it has been significantly ahead of the benchmark Since its launch in December 2004, the fund has posted top-quartile performance, ranking among the best performers in its IMA sector. It has also managed to outperform the benchmark significantly, returning 218 per cent versus the MSCI Russia Large-Cap Index gain of 141.89 per cent, with income reinvested.
Mr Geffen believes the Russian market is trading at far too low a discount to the emerging markets average and that there is the promise of significant upside, thanks to this discount along with improving corporate governance and the regulation of state industry on the Russian government's agenda. He believes his fund's portfolio is well positioned to take advantage of these developments.
NEPTUNE RUSSIA & GREATER RUSSIA FUND A ACC | |||
PRICE: | 284.80p | 3-YR SHARPE RATIO | 0.47 |
IMA SECTOR: | Specialist | 1-YEAR PERFORMANCE: | -27.07% |
FUND TYPE: | Oeic | 3-YEAR PERFORMANCE: | 12.02% |
FUND SIZE: | £370.3m | 5-YEAR PERFORMANCE: | -0.84% |
No OF HOLDINGS: | 32 | ONGOING CHARGES | 1.85% |
SET UP DATE: | 31-Dec-04 | YIELD: | n/a |
MANAGER START DATE: | 31-Dec-04 | MINIMUM INVESTMENT: | £1,000 initial, £50 thereafter |
BETA: | 0.94 | MORE DETAILS: | neptunefunds.com |
Source: Investors Chronicle funds data & *Morningstar
Performance figures as at 18 July 2012
Top holdings (as at April 2012)
Company | Percentage |
Sberbank of Russia OJSC ADR | 9.85 |
Gazprom OAO ADR | 9.58 |
Rosneft Oil Company OJSC GDR | 9.00 |
X5 Retail Group N.V GDR | 8.25 |
Novatek OAO GDR | 4.61 |
Bank for Foreign Trade Vneshtorgbank ... | 4.41 |
LUKOIL Oil Company JSC ADR | 4.17 |
JSC Uralkali ADR | 4.15 |
Evraz PLC | 4.06 |
Sector breakdown (as at April 2012)
Sector | Percentage |
Energy | 33.7 |
Materials | 18.6 |
Consumer staples | 16.0 |
Financials | 14.3 |
Telecommunication | 7.6 |
Industrials | 4.9 |
IT | 3.4 |
Utilities | 1.2 |
Cash | 0.3 |