Liontrust US Opportunities C

Large and mid cap North American equity fund feeding off Neptune's house economic and sector views.

  • 344.73p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.79%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 20 January 2021

Neptune US Opportunities aims to generate capital growth through a concentrated portfolio of around fifty North American securities. It invests mainly in large and mid-cap equities, whose selection is based on Neptune's global economic and sector views. However, the manager has full discretion over the final portfolio and has historically used cash aggressively to protect investors’ capital. In September 2012 we put this fund on a 1-star SELL rating following a prolonged period of underperformance.

Fund summary

Sector North America
Structure OEIC
Launched October, 2012
Size £247m
Yield 0.00%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.79%

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Investment process

Research is focused on sectors favoured by the house top-down view, with ideas sourced from Neptune's in-house quantitative screen, from company news, company meetings and external research. These ideas are then researched in more depth by Neptune's global sector analysts before the stocks are discussed in a group forum. The fund manager has full discretion over the portfolio, but it is expected to reflect Neptune's sector and macro-economic views. A target price is set for each stock using the valuation model - stocks must have at least a 20% upside before being included. Stocks will typically be sold on reaching the target price, or on hitting a 20% stop-loss, or if the original investment rationale was incorrect.

Manager Felix Wintle has outperformed over his career, but this performance has been accompanied by a high level of divergence from the benchmark. Wintle has made some aggressive sector calls, based on Neptune’s house views. These led to extremely strong performance during 2008 and 2009, which roughly coincided with the precipitous fall in the US stock market following Lehman’s collapse. However the fund has struggled at other times. Over the last 3 years it has on average underperformed the S&P 500 index by 0.5% per month leading to Wintle’s poor 3-year MRI figure of 21.5%. Over 5 years his MRI is 81.6%. In September 2012 we put this fund on a 1-star SELL rating following a prolonged period of underperformance.

Manager research

Average monthly relative returns

  • 16/17 0.21%
  • 17/18 -0.37%
  • 18/19 -0.22%
  • 19/20 0.70%
  • 20/21 0.32%

Bestinvest MRI

  • 3 years 0.27%
  • 5 years 0.13%
  • Career -0.01%
  • 3 years 90.30%
  • 5 years 69.90%
  • Career 62.90%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

George Boyd-Bowman

Boyd-Bowman joined Neptune in August 2010 as an Investment Analyst, having periodically interned at the Company since 2006. He graduated from Oxford University in 2010 with a first class degree in Economics and Management. He is now Fund Manager of the Neptune Global Income Fund and the Neptune UK Higher Income Fund. He is also Assistant Manager on the Neptune Global Equity Fund, the Neptune Income Fund and the Neptune Monthly Income Fund. His global research focus is the financials sector, and he has successfully completed the CFA Level 1, 2 and 3.

Track record

George Boyd-Bowman has 8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.01%. During the worst period of relative performance (from May 2016 - July 2018) there was a decline of 16% relative to the index. The worst absolute loss has been 13%.

Periods of worst performance

Absolute -13.00% (January 2020 - March 2020)
Relative -16.00% (May 2016 - July 2018)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

5.9991% Microsoft Corp
5.7598% Amazon.com Inc
5.0777% Apple Inc
5.0767% Alphabet Inc
3.9688% Unitedhealth Group Inc
3.7257% Mastercard Inc
3.4539% Willis Towers Watson Plc
3.4363% Horizon Therapeutics Plc
2.9388% Iqvia Hldgs Inc
2.83% Mondelez Intl Inc
Source: Trustnet

Sector breakdown

Information Technology 28.00%
Health Care 18.00%
Communications 13.00%
Financials 12.00%
Industrials 12.00%
Consumer Discretionary 9.00%
Consumer Staples 4.00%
Utilities 3.00%
Materials 1.00%
Energy 1.00%

Portfolio

Around 50 stocks. Typical position sizes are 2-4%; minimum 1%, maximum 5%. Cash and ETFs are used to increase/decrease market exposure on a tactical basis.

Constraints

Maximum 20% cash. Minimum market cap is usually US$1bn. The fund must have holdings in at least 7 of the 10 MSCI global sectors; typically no more than 30% in any one sector.

Key Investor Information

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