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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: Apr 19, 2019
Geographic Mix
% of Portfolio
China 33.84%
India 11.48%
Taiwan 9.06%
Korea, Republic of 8.23%
Brazil 6.19%
Russian Federation 4.76%
South Africa 4.16%
Hong Kong 3.74%
Indonesia 3.09%
Thailand 2.74%
Mexico 2.65%
Poland 1.77%
Malaysia 1.60%
Vietnam 1.53%
Chile 1.43%
Philippines 1.41%
Czech Republic 1.33%
Greece 1.01%
Sector Allocation
% of Portfolio
Financials 28.30%
Consumer Discretionary 21.54%
Information Technology 13.88%
Consumer Staples 10.84%
Communication Services 8.85%
Energy 6.84%
Materials 2.63%
Utilities 2.02%
Real Estate 1.98%
Cash 1.84%
Industrials 0.75%
Health Care 0.53%

Contact Us

+44 (0) 203-535-8100
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