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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: Feb 18, 2019
Geographic Mix
% of Portfolio
United Kingdom 25.43%
Switzerland 17.83%
France 17.00%
Netherlands 9.14%
Germany 8.28%
Sweden 5.87%
Ireland 5.61%
Spain 3.37%
Belgium 2.44%
Denmark 2.02%
Finland 1.64%
Poland 0.75%
Norway 0.61%
Sector Allocation
% of Portfolio
Industrials 19.84%
Consumer Staples 18.52%
Health Care 16.53%
Financials 12.05%
Energy 6.78%
Consumer Discretionary 6.74%
Materials 6.26%
Information Technology 6.04%
Communication Services 4.10%
Real Estate 2.70%
Cash 0.46%
Utilities 0.00%

Contact Us

+44 (0) 203-535-8100
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