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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: Aug 13, 2020
Geographic Mix
% of Portfolio
France 23.74%
Switzerland 16.07%
United Kingdom 13.46%
Germany 9.81%
Netherlands 8.90%
Ireland 6.88%
Spain 4.14%
Denmark 3.65%
Sweden 3.18%
Italy 2.65%
Austria 2.19%
Norway 2.08%
Belgium 1.73%
Russian Federation 0.92%
Greece 0.60%
Sector Allocation
% of Portfolio
Industrials 22.41%
Health Care 14.71%
Financials 12.53%
Information Technology 11.80%
Consumer Staples 10.34%
Materials 10.01%
Consumer Discretionary 8.58%
Communication Services 4.11%
Utilities 2.63%
Real Estate 2.25%
Cash 0.63%
Energy 0.00%

Contact Us

+44 (0) 203-535-8100
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