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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 Net 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 40 – 60 securities
  • Portfolio Risk and Review
    • Formal monthly 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: Jan 27, 2021
Geographic Mix
% of Portfolio
France 23.80%
United Kingdom 13.53%
Switzerland 12.20%
Netherlands 8.39%
Spain 7.97%
Germany 6.87%
Ireland 6.63%
Sweden 3.57%
Belgium 3.15%
Italy 3.03%
Austria 2.66%
Norway 2.43%
Russian Federation 2.11%
Denmark 2.06%
Greece 1.60%
Sector Allocation
% of Portfolio
Industrials 22.03%
Financials 13.07%
Information Technology 11.27%
Health Care 11.21%
Consumer Staples 10.84%
Materials 10.38%
Consumer Discretionary 9.62%
Utilities 6.10%
Communication Services 3.16%
Real Estate 2.02%
Cash 0.29%
Energy 0.00%

Contact Us

+44 (0) 203-535-8100
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