Geffen’s Neptune Income dropped from Wealth 150

Robin Geffen

Robin Geffen’s £809.7m Neptune Income fund from Hargreaves Lansdown’s Wealth 150 list because of its recent “pedestrian” performance.

The fund, which launched at the start of 2003, is currently ranked fourth quartile in the IMA UK Equity Income sector over one, three and five years to 21 August 2013.

Hargreaves Lansdown analyst Meera Hearnden says: “The fund performed well for a number of years. However, more recently performance has been pedestrian, delivering growth in line with the average fund in the sector.

“There have been glimmers of improvement, but these have largely been short lived and during the past year the fund’s performance has become more of a concern, having underperformed the sector by almost 10 per cent.”

Hearnden adds that Geffen’s stock selection appears to be the reason behind the fund’s “disappointing” performance, as the concentrated nature of the portfolio means each holding has a meaningful impact on performance.

She highlights the fund’s US technology holdings, such as Apple, as being “particularly poor” while noting that mining positions such as Anglo American have also held back performance.

“All fund managers go through periods of poor performance, and we believe Robin Geffen remains a capable fund manager with the necessary skills to turn the fund’s performance around,” Hearnden adds.

“For this reason we do not believe existing investors should sell the fund, provided it still meets their objectives.”

Neptune Income’s calendar year performance to 21 August 2013

  YTD 2012 2011 2010 2009
Neptune Income 10.87% 10.80% -5.96% 13.60% 23.16%
16.50% 14.01% -2.90% 14.58% 22.88%
-4.83% -2.81% -3.16% -0.86% 0.23%
  88 / 97 68 / 95 66 / 88 46 / 86 28 / 74
4 3 3 3 2

Source: FE Analytics