Fund Objective

The investment objective of Neptune European Opportunities Fund is to generate capital growth by investing predominantly in a concentrated portfolio of securities selected from European markets, excluding the UK, with a view to attaining top quartile performance within the appropriate peer group.

View on Past Performance

European markets are under considerable pressure due to the deflationary forces in the world. Deleveraging is combining with a lack of transmission of central bank money supply to the wider economy. Central bankers can continue to pump money into the banking system, but unless that is transmitted to the wider economy, deflationary pressures will persist.This lack of velocity in the money supply is largely due to a lack of confidence. The lack of confidence is coming from the weak capital position of institutions. In these moments, previously absurd or unthinkable possibilities need to be considered. Central banks / governments may need to take complete control of the supply of money to the economy.The Neptune European Opportunities Fund is in a defensive stance in non-cyclical businesses with strong balance sheets, and we are also holding cash. In the current environment, those companies exposed to conventional economic expansion are vulnerable.This includes many sectors within the European index. The Fund is most underweight and cautious of conventional industrials and materials. The Fund's largest overweights are in pharmaceuticals and consumer staples.

Future Expectations

We will continue to be positioned as such until we can see the transmission mechanism between central banks and the economy working again.

Fund Details