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NS Partners European Equity

Highlights

  • Unique Investment Philosophy: Emphasizes inflection points in liquidity conditions and stocks with improving economic profitability
  • Differentiated Investment Process: Designed to steer fundamental stock selection to countries with a favourable market environment
  • Focused Risk Management: Employs a factor risk model designed to avoid unintended country, sector or company exposure

Objectives

  • Long-term growth through investments in equity securities listed on European stock exchanges
  • Return Objective: MSCI Europe Index + 2-4% per annum over a market cycle
  • Risk Objective: 2-4% average tracking error per year over a market cycle

Investment Philosophy

  • Country selection matters – excess money moves both asset markets and economies
  • Economic profitability drives stock selection – securities generating high or improving economic profitability relative to the market will outperform
  • Peer review discipline – revalidate, continually test convictions, ensure tight capital discipline

Investment Process

  • Macroeconomic and Liquidity Analysis
    • Changes in liquidity conditions influence security prices
  • Country Selection
    • Country weights based on conviction, relative return opportunity and risk
  • Stock Selection
    • Focus on securities expected to have improving economic profitability
  • Portfolio Construction
    • Macroeconomic liquidity analysis provides the framework for portfolio construction
    • Portfolio of 55 – 65 securities
  • Portfolio Risk and Review
    • Formal bi-weekly meetings to peer review portfolio
    • Employ a factor risk model to avoid unintended country, sector or company exposure
Quick Facts
Inception Date August 31, 1992
All data as at: Dec 12, 2018
Geographic Mix
% of Portfolio
United Kingdom 26.81%
Switzerland 19.38%
France 16.22%
Netherlands 9.31%
Germany 7.47%
Ireland 5.65%
Sweden 4.76%
Spain 3.35%
Finland 2.55%
Belgium 2.50%
Italy 0.87%
Poland 0.60%
Norway 0.52%
Sector Allocation
% of Portfolio
Industrials 19.78%
Consumer Staples 17.96%
Health Care 16.53%
Financials 12.58%
Materials 8.83%
Information Technology 7.58%
Energy 6.71%
Communication Services 3.94%
Consumer Discretionary 3.02%
Real Estate 2.55%
Cash 0.52%
Utilities 0.00%

Contact Us

+44 (0) 203-535-8100
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