Roller Coaster Funds: Neptune Russia and Greater Russia

Balakhani Oil Wells Russia

I won’t personally be investing in this fund in the near future, it’s far too risky for my strategy.  However if you want a bit of excitement in your portfolio and some exposure to Russia as an emerging market, then check out Neptune Investments Russia and Greater Russia fund run by Robert Geffen.

Neptune Russia and Greater Russia Fund: What’s in the Package?

OK, so the clues in the title, the bulk of the investment in this fund is in Russian equities (96.5%), as such this is a great way for investors to get an exposure either specifically to Russia or to what may be considered as one of the key emerging markets.  As for what specific sectors are covered in the fund, the bulk of investment is in companies which are linked to Russia’s natural resources with 31.6% of the fund invested in energy (oil & gas), and 19.8% in materials.  Other large investments go into consumer staples and financials.

So as well as being an emerging markets fund, large exposure to the energy and materials sector also make the fund an effective way of gaining a large exposure to natural resources within the country.

Fund Performance: How Has Neptune Russia and Greater Russia Performed?

The performance of the fund over the past five years has been anything but boring, this is not a fund to invest in if looking for long term steady returns.  Since the funds launch in 2004 investors have received and incredible 186.7% return with 107.9% return being seen over the past five years.  However, discrete data shows a rollercoaster ride for investors, while the fund nose dived by -60.69% in 2007/08 an incredible bounce back was seen in 2008/09 yielding a whopping 116.03%. 

If its sector performance that interests you, then the fund has consistently outperformed both the IMA sector average and the relevant benchmark index over the past five years by a considerable margin.  Of course, such levels of performance do not come for free, the fund has an initial charge of 5% and annual management fees of 1.75% making the fund much more expensive in comparison to an index fund.

So if looking for a fund that casts caution to the wind and will add a bit of excitement to your portfolio of investments, Neptune Russia and Greater Russia may just be the place to put a few quid.  If low risks and stable returns are more your think, give this one a miss.