Neptune Global Equity & Artemis Global Growth

shokadelika

ferox666 wrote: »

I was just looking at the above two funds because I want to invest in the "global growth" area for long-term and wondered if anyone knows how similar these 2 funds are. I.e. do they both invest in the same sort of areas and are they both a similar level of risk? I would not want to invest in both of them if they are very similar and if it was likely that if one crashes the other will too. The Artemis fund seemed lower risk but I'm really not too sure. Thanks, hope someone can help.

P.S. Another question, if investing through Hargreaves Lansdown with a monthly direct debit, is there a minimum period you have to agree to pay the D/D? For example, if I invested £200-a-month into a fund through them and then 3 or 4 months later my financial circumstances changed, could I cancel my D/D but leave my £600-£800 sitting in the fund but adding no more new money? Or would I have to pay that in for a minimum period e.g. a year?

£200 a month could buy you four funds @ $50 each.;)
You can cancel your DD at any time and leave your funds invested you will not be made to sell them even if you only have say £200 invested in a single fund.You can restart your DD anytime (or never if you wish!) and/or add further lump sums if you wish by phone from £50.

I would choose Neptune over Artemis.;)

munk

Like above, I'd go for paying into 4 funds @ £50/month. The two funds you've chosen are medium to high risk and whilst both very decently performing funds over 1/3/5 yrs (well, the neptune one anyway, haven't researched the artemis one so much), nonetheless have the potential to drop over 20% from peak to trough over any given period.

How about something like:

1 x Global equity or growth (ie like the funds you've chosen)
1 x 'hedge like' fund (ie Blackrock UK Absolute Alpha)
1 x UK Equity income or growth (ie Invesco Perpetual Income)
1 x Emerging equity (ie First State Asia Pacific Leaders) or maybe a resources fund (JPM Natural Resources or First State Global Resources for ie)

These are just examples of course the first that pop to mind. The 'hedge like' fund example is an idea for the short term now whilst markets are volatile, although it's track record to date over 2yrs suggests it can perform well enough (double digit returns) in good times as well. Has reasonably low volatility for an equity based fund as well at around perhaps 4% or so (guesstimate!), very nice in helping keeping down your food on the roller coaster ride we're on at the moment

UK equity income funds like the Invesco one mentioned above are on the downturn at present given the credit liquidity problems in the UK, although overall are accepted as being lower risk than global or emerging sectors.

With a spread like the above you're still looking at a medium middling on high risk spread, but the volatility/risk is lowered a little by the inclusion of other funds like UK equity and the Blackrock 'hedge type' fund.

wombat42_2

munk wrote: »

Like above, I'd go for paying into 4 funds @ £50/month. The two funds you've chosen are medium to high risk and whilst both very decently performing funds over 1/3/5 yrs (well, the neptune one anyway, haven't researched the artemis one so much), nonetheless have the potential to drop over 20% from peak to trough over any given period.

How about something like:

1 x Global equity or growth (ie like the funds you've chosen)
1 x 'hedge like' fund (ie Blackrock UK Absolute Alpha)
1 x UK Equity income or growth (ie Invesco Perpetual Income)
1 x Emerging equity (ie First State Asia Pacific Leaders) or maybe a resources fund (JPM Natural Resources or First State Global Resources for ie)

These are just examples of course the first that pop to mind. The 'hedge like' fund example is an idea for the short term now whilst markets are volatile, although it's track record to date over 2yrs suggests it can perform well enough (double digit returns) in good times as well. Has reasonably low volatility for an equity based fund as well at around perhaps 4% or so (guesstimate!), very nice in helping keeping down your food on the roller coaster ride we're on at the moment

UK equity income funds like the Invesco one mentioned above are on the downturn at present given the credit liquidity problems in the UK, although overall are accepted as being lower risk than global or emerging sectors.

With a spread like the above you're still looking at a medium middling on high risk spread, but the volatility/risk is lowered a little by the inclusion of other funds like UK equity and the Blackrock 'hedge type' fund.

I understand that it is a big proviso that you have to trust the global fund manger's judgement (for example Robin Geffen in Neptune fund who has gone out on a limb in investing 20% in Russia) but on the other hand a good global fund tries to do the diversification thing for you and dynamically. For example the neptune fund currently has about 20% in the UK and about 13% in cash. It is also currently emerging markets and resources laden.

munk

I have to admit given the track record of that particular fund personally I'd feel reasonably safe investing just in that one fund (given my personal risk profile of a downside risk tolerance of 30%, ie I could deal with seeing my investment losing 30% from peak to trough), especially if I had just £50/month to invest. However if you're investing more than £50/month then it makes sense to hedge your bets so to speak and diversify your portfolio given that most fund managers/brokers allow you to invest just £50/month per fund (even as low as £20 I think in the case of iii?).

Another thing to consider in terms of diversification is the difference between the Neptune Global Equity and the Neptune Global Alpha funds in terms of their investment remit - the Equity fund is classified as 'Global Growth' whereas the Alpha fund is classed as 'Active Managed'.

In terms of practical differences the Alpha fund invests in a more concentrated number of funds, described by Neptune as: '(A) Concentrated version of the Global Equity Fund, run on a total return basis. ... the Fund has the facility to take tactical positions in cash or near cash should the manager feel it appropriate.'

It was this latter factor above - being able to take tactical positions in cash and in fact even move entirely into cash should the need arise - that swayed me personally in favour of the alpha over the equity fund given the current volatility in the markets. Being able to take a good cash position in times of volatility is a bonus.

In summary if you're looking for diversification in just a single global fund with a risk profile of medium-high risk then the alpha fund may be for your (Can I have my commission please Neptune :rotfl: )

cloud_dog

I would echo the comments from Shokadelika and Munk - spread your investment, even if you want to go for a global theme.

wombat42_2

munk wrote: »

I have to admit given the track record of that particular fund personally I'd feel reasonably safe investing just in that one fund (given my personal risk profile of a downside risk tolerance of 30%, ie I could deal with seeing my investment losing 30% from peak to trough), especially if I had just £50/month to invest. However if you're investing more than £50/month then it makes sense to hedge your bets so to speak and diversify your portfolio given that most fund managers/brokers allow you to invest just £50/month per fund (even as low as £20 I think in the case of iii?).

Another thing to consider in terms of diversification is the difference between the Neptune Global Equity and the Neptune Global Alpha funds in terms of their investment remit - the Equity fund is classified as 'Global Growth' whereas the Alpha fund is classed as 'Active Managed'.

In terms of practical differences the Alpha fund invests in a more concentrated number of funds, described by Neptune as: '(A) Concentrated version of the Global Equity Fund, run on a total return basis. ... the Fund has the facility to take tactical positions in cash or near cash should the manager feel it appropriate.'

It was this latter factor above - being able to take tactical positions in cash and in fact even move entirely into cash should the need arise - that swayed me personally in favour of the alpha over the equity fund given the current volatility in the markets. Being able to take a good cash position in times of volatility is a bonus.

In summary if you're looking for diversification in just a single global fund with a risk profile of medium-high risk then the alpha fund may be for your (Can I have my commission please Neptune :rotfl: )

Not convinced of Neptune alpha fund in prefereence to Neptune equiy fund.

Alpha fund AMC is 2% v 1.6%
Alpha fund cash is currently 15.8% v 12.5% and i would find it difficult to believe tha the alpha fund would ever go anything near 100% cash.
Alpha fund has more Hong Kong and less UK so higher risk

Also alpha fund has performed less well over the last 5 years than the equity fund.

ferox666

Thanks everyone!

Munk, thanks for all of that advice. I think you've convinced me that Neptune Global Alpha is a better choice - but I noticed that Global Equity also had a fairly large amount in cash so the cash option must be available to it as well??

Funnily enough I had considered a resources fund as well, the two you mentioned (F'State & JPM) I had previously looked at. Is this another fund where it's ideal just to leave your money long-term (5 or 10 yrs) and let it grow...I do NOT want funds that I have to keep watching and switching every couple of years. I can handle volatility and bad years if it's likely that the good years for the long-term will make up for losses. Do you think resources and these 2 funds would fit this description? I think I may just put £80-a-month into global growth and £50-a-month into resources funds and any surplus into cash ISA for my first year.

Thanks for your advice everyone

munk wrote: »

Like above, I'd go for paying into 4 funds @ £50/month. The two funds you've chosen are medium to high risk and whilst both very decently performing funds over 1/3/5 yrs (well, the neptune one anyway, haven't researched the artemis one so much), nonetheless have the potential to drop over 20% from peak to trough over any given period.

How about something like:

1 x Global equity or growth (ie like the funds you've chosen)
1 x 'hedge like' fund (ie Blackrock UK Absolute Alpha)
1 x UK Equity income or growth (ie Invesco Perpetual Income)
1 x Emerging equity (ie First State Asia Pacific Leaders) or maybe a resources fund (JPM Natural Resources or First State Global Resources for ie)

These are just examples of course the first that pop to mind. The 'hedge like' fund example is an idea for the short term now whilst markets are volatile, although it's track record to date over 2yrs suggests it can perform well enough (double digit returns) in good times as well. Has reasonably low volatility for an equity based fund as well at around perhaps 4% or so (guesstimate!), very nice in helping keeping down your food on the roller coaster ride we're on at the moment

UK equity income funds like the Invesco one mentioned above are on the downturn at present given the credit liquidity problems in the UK, although overall are accepted as being lower risk than global or emerging sectors.

With a spread like the above you're still looking at a medium middling on high risk spread, but the volatility/risk is lowered a little by the inclusion of other funds like UK equity and the Blackrock 'hedge type' fund.

wombat42_2

ferox666 wrote: »

Thanks everyone!

Munk, thanks for all of that advice. I think you've convinced me that Neptune Global Alpha is a better choice - but I noticed that Global Equity also had a fairly large amount in cash so the cash option must be available to it as well??

How do you counter my last post on this then including the simple fact that the alpha fund has not perfomed as well as the equity fund. The equity fund can hold cash but not as much as the alpha fund.

The resource funds you mention may do well long term but are likely to have scary volatility.

ferox666

wombat42 wrote: »

How do you counter my last post on this then including the simple fact that the alpha fund has not perfomed as well as the equity fund. The equity fund can hold cash but not as much as the alpha fund.

The resource funds you mention may do well long term but are likely to have scary volatility.

Sorry wombat, your post hadn't been there when I started writing my reply.

Perhaps the Equity has performed better because it is simply higher risk than Alpha - Alpha has brought lower returns (but still decent) but perhaps was less likely to "crash"? I really don't know, and I've just looked and noticed how much smaller the Alpha fund is (i.e. millions invested) than Global. I'm still undecided...I will need to maybe look at Neptune's site to find out all the differences of both funds. I will not be investing until after 5 April anyway (I want to get as much as possible into the cash ISA this tax yr because I've not used full allowance). I think Global Equity is becoming my preference again...

Just out of interest wombat, are you prepared to say how much (to the nearest £1000 or £5000 or whatever) you have in the fund? If it's a lot then I think that will inspire me with my smallish (but not to me!) regular investment into the fund of somewhere between £80 - £150 p/month long-term. If you don't want to post that info tho it's ok!!!

I will maybe put a small % of my portfolio in resources.

Thanks

wombat42_2

ferox666 wrote: »

Sorry wombat, your post hadn't been there when I started writing my reply.

Perhaps the Equity has performed better because it is simply higher risk than Alpha - Alpha has brought lower returns (but still decent) but perhaps was less likely to "crash"? I really don't know, and I've just looked and noticed how much smaller the Alpha fund is (i.e. millions invested) than Global. I'm still undecided...I will need to maybe look at Neptune's site to find out all the differences of both funds. I will not be investing until after 5 April anyway (I want to get as much as possible into the cash ISA this tax yr because I've not used full allowance). I think Global Equity is becoming my preference again...

Just out of interest wombat, are you prepared to say how much (to the nearest £1000 or £5000 or whatever) you have in the fund? If it's a lot then I think that will inspire me with my smallish (but not to me!) regular investment into the fund of somewhere between £80 - £150 p/month long-term. If you don't want to post that info tho it's ok!!!

I will maybe put a small % of my portfolio in resources.

Thanks

I cant see one good reason for selecting the alpha fund and as it has more Hong Kong and less UK than the equity fund so it must be higher risk. i have about 80K in the neptune equity fund