By Mark Martin, Investment Director & Head of UK Equities
Register for a live update on 9 July at 14.30 with Mark Martin, who will be discussing Chancellor George Osborne’s ‘emergency’ summer budget, the UK equity landscape post May’s General Election and his outlook for the second half of 2015. Mark will also highlight the portfolio positioning and performance of the UK Opportunities and UK Mid Cap funds.
The Neptune UK Opportunities Fund is currently overweight the mid- and small-cap areas of the market as we believe these areas suffer from the greatest inefficiencies and therefore present the best opportunities to find value. We are focused closely on valuations, avoiding sectors where profit margins are close to all-time highs and sentiment is consensually bullish. For example, momentum style stocks — such as UK housebuilders — have had a tremendous run since 2010 and are now trading at, or near, all-time-high price-to-book values. Given these valuations, the Neptune UK Opportunities Fund is currently overweight quality and value style stocks rather, and has no exposure to housebuilders. Instead, we favour companies exposed to the housing cycle, such as Carpetright.
The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. The content of this article is formed from Neptune’s views and we do not undertake to advise you as to any change of our views. Neptune does not give investment advice and only provides information on Neptune products. This is not a solicitation or an offer to buy or sell our funds.