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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: Dec 12, 2018
Geographic Mix
% of Portfolio
China 35.81%
Taiwan 9.77%
Korea, Republic of 9.69%
Brazil 7.37%
India 7.00%
Russian Federation 5.18%
South Africa 5.14%
Hong Kong 3.51%
Mexico 2.83%
Chile 2.43%
Thailand 1.87%
Malaysia 1.85%
Vietnam 1.64%
Indonesia 1.44%
Greece 1.32%
Czech Republic 1.31%
Poland 1.18%
Philippines 0.66%
Sector Allocation
% of Portfolio
Financials 29.42%
Consumer Discretionary 18.48%
Information Technology 15.92%
Consumer Staples 8.39%
Communication Services 7.88%
Cash 5.68%
Energy 4.53%
Materials 3.38%
Utilities 2.61%
Health Care 1.78%
Industrials 1.12%
Real Estate 0.82%

Contact Us

+44 (0) 203-535-8100
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