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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 monthly 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: Apr 19, 2021
Geographic Mix
% of Portfolio
China 32.59%
Taiwan 15.02%
India 11.13%
Korea, Republic of 10.85%
Brazil 6.48%
Thailand 4.47%
Hong Kong 4.13%
Russian Federation 3.37%
Indonesia 2.10%
Greece 2.08%
Switzerland 1.78%
Malaysia 1.43%
United Kingdom 0.95%
Vietnam 0.95%
South Africa 0.79%
Philippines 0.69%
Chile 0.69%
United States 0.49%
Sector Allocation
% of Portfolio
Information Technology 25.49%
Consumer Discretionary 20.80%
Financials 20.12%
Industrials 8.81%
Communication Services 7.66%
Consumer Staples 5.55%
Materials 4.99%
Real Estate 2.98%
Energy 1.08%
Health Care 1.00%
Utilities 0.86%
Cash 0.66%

Contact Us

+44 (0) 203-535-8100
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