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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: Jan 25, 2022
Geographic Mix
% of Portfolio
China 28.57%
Taiwan 16.12%
India 15.97%
Korea, Republic of 11.82%
Thailand 4.99%
Philippines 3.10%
Indonesia 3.08%
Hong Kong 2.29%
Russian Federation 2.07%
Greece 2.04%
Vietnam 1.80%
Malaysia 1.77%
Chile 1.62%
Brazil 1.62%
United Kingdom 1.39%
Switzerland 1.03%
Hungary 0.52%
Poland 0.21%
Sector Allocation
% of Portfolio
Information Technology 29.29%
Financials 21.61%
Consumer Discretionary 13.88%
Communication Services 8.62%
Industrials 8.57%
Consumer Staples 6.95%
Energy 3.68%
Health Care 2.66%
Real Estate 2.17%
Cash 1.23%
Utilities 0.81%
Materials 0.54%

Contact Us

+44 (0) 203-535-8100
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