Analysis of all UK retail funds during 2006 by Financial Express shows that Neptune, the investment ...
Analysis of all UK retail funds during 2006 by Financial Express shows that Neptune, the investment management boutique founded by Robin Geffen, had the two best-performing funds.
At number one with a return over the year of 56.74% was the Neptune Russia & Greater Russia fund, with the Neptune China fund second with 52.27%.
Launched in December 2004, the Russian fund has £55m assets under management and was the first onshore Oeic to invest purely in Russia. Geffen said: "On the back of three years of 20%-plus pay rises and with inflation running at 8% per year, the Russian consumer is enjoy-ing rising spending power."
Observing this shift, Neptune switched out of the oil and gas stocks that had performed so well for the fund early in 2006, building strong positions in food retailers, food producers, mobile telecoms and banks. "These are positions I expect to build on during 2007," said Geffen, who predicts returns in the region of 20%-25% in the coming year.
The Neptune China fund was also launched in 2004. Geffen said: "China remains one of the world's fastest growing economies, supported by a large domestic market providing high levels of demand, continued economic restructuring and liberalisation and high foreign direct investment inflow."
He expects the Chinese economy to grow by more than 10% in 2007 and sees strong growth for the foreseeable future as China prepares for the Olympics (Beijing, 2008) and World Expo (Shanghai, 2010).
The best performing fund sector in 2006, reported Financial Express, was the European Smaller Companies sector, providing a return of 33.28%, followed by the UK Smaller Companies sector with 23.8%.
The worst performing sectors last year were the Japan and Japanese Smaller Companies sectors with returns of -14.03% and -32.13% respectively.top-10 retail funds 2006
1. Neptune Russia & Greater Russia (56.74%)
2. Neptune China (52.27%)
3. Gartmore China Opportunities (47.81%)
4. Aberdeen Property Share (45.43%)
5. SWIP European Real Estate (45.03%)
6. Threadneedle Pan European Smaller Companies (43.54%)
7. Standard Life Inv UK Smaller Companies (43.47%)
8. Premier Portfolio Pan European Property (40.33%)
9. Insight Investments European Small Cap (38.50%)
10. Old Mutual UK Select Smaller Companies (38.14%)
Source: Financial Express
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