Changes made to trio of Neptune funds

Neptune Investment Management has introduced financials into the £976m Neptune European Opportunities fund and has added to financials in the £1.2 billion Neptune Global Equity fund.

Meera Patel
Meera Patel

The company has been bearish on financials since 2006 but in the last month it introduced them into the European Opportunities fund and decreased the financials underweight in the £1.2 billion Neptune Global Equity fund. It had 9% financials exposure at the end of October compared with 18% in the MSCI world index.

Neptune has also taken off a 5% short on financials in the recently launched Global Long/Short fund.

Ted Alexander, global equity and Global Long/Short fund co-manager, who would not disclose the size of the new holdings, says: “We see there is a chance that financials might rise as markets get more positive on a eurozone crisis resolution.

“However, there is every chance that European leaders will not have a coherent plan later in the year and the market could get pessimistic.

“The financials sector is facing a volatile time and taking the short off the Global Long/Short fund was part of taking risk off the table as we are unsure about the direction the financials will go.”

Meera Patel, senior analyst at Hargreaves Lansdown, says: “There are some good selective opportunities in financials and it is a sensible decision to be bold and invest in them.”