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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: Oct 15, 2021
Geographic Mix
% of Portfolio
China 29.17%
India 17.44%
Taiwan 13.86%
Korea, Republic of 7.48%
Thailand 5.61%
Russian Federation 4.76%
Brazil 3.22%
Hong Kong 2.50%
Philippines 2.39%
Greece 2.28%
Switzerland 1.73%
Malaysia 1.72%
Vietnam 1.70%
United Kingdom 1.54%
Indonesia 1.44%
Chile 1.41%
United States 0.72%
Hungary 0.56%
Poland 0.47%
Sector Allocation
% of Portfolio
Information Technology 26.47%
Financials 20.16%
Consumer Discretionary 17.52%
Industrials 9.11%
Consumer Staples 7.38%
Communication Services 5.37%
Energy 4.26%
Real Estate 3.39%
Health Care 3.12%
Materials 1.69%
Cash 0.82%
Utilities 0.71%

Contact Us

+44 (0) 203-535-8100
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