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NS Partners Global Emerging Markets Equity

Highlights

  • Unique Investment Philosophy: Emphasis 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 emerging markets stock exchanges
  • Return Objective: MSCI Emerging Markets Net Index + 3%-5% per annum over a market cycle
  • Risk Objective: 3%-6% 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 75 – 90 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 March 31, 1996
All data as at: Dec 06, 2019
Geographic Mix
% of Portfolio
China 30.85%
Taiwan 12.71%
India 11.62%
Korea, Republic of 10.38%
Brazil 5.50%
Russian Federation 4.97%
Hong Kong 4.46%
Thailand 2.94%
South Africa 2.39%
Indonesia 2.01%
Poland 1.92%
Mexico 1.83%
Greece 1.80%
Philippines 1.61%
Vietnam 1.54%
Malaysia 1.49%
Chile 1.08%
Peru 0.90%
Sector Allocation
% of Portfolio
Financials 26.02%
Consumer Discretionary 22.40%
Information Technology 19.44%
Consumer Staples 6.68%
Energy 6.66%
Communication Services 6.34%
Industrials 3.02%
Materials 3.01%
Real Estate 2.27%
Cash 1.87%
Utilities 1.73%
Health Care 0.57%

Contact Us

+44 (0) 203-535-8100
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