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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 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: Feb 18, 2019
Geographic Mix
% of Portfolio
China 36.02%
Taiwan 9.17%
Korea, Republic of 9.07%
Brazil 7.53%
India 7.13%
Russian Federation 4.53%
South Africa 3.99%
Mexico 3.14%
Hong Kong 3.07%
Thailand 2.73%
Indonesia 2.56%
Chile 2.27%
Poland 1.91%
Malaysia 1.56%
Vietnam 1.51%
Czech Republic 1.47%
Philippines 1.32%
Greece 1.01%
Sector Allocation
% of Portfolio
Financials 28.70%
Consumer Discretionary 19.20%
Information Technology 16.55%
Consumer Staples 9.78%
Communication Services 9.40%
Energy 4.49%
Materials 3.43%
Utilities 2.50%
Cash 2.28%
Health Care 1.65%
Real Estate 1.30%
Industrials 0.73%

Contact Us

+44 (0) 203-535-8100
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