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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: Jun 22, 2018
Geographic Mix
% of Portfolio
Korea, Republic of 78.66%
China 7.81%
India 2.41%
Taiwan 2.23%
Brazil 1.41%
Russian Federation 1.37%
Thailand 1.21%
Mexico 0.91%
South Africa 0.73%
Chile 0.61%
Hong Kong 0.50%
Peru 0.42%
Malaysia 0.36%
Poland 0.34%
Greece 0.30%
Vietnam 0.28%
Philippines 0.22%
Czech Republic 0.22%
Sector Allocation
% of Portfolio
Information Technology 81.25%
Financials 7.19%
Consumer Discretionary 3.81%
Consumer Staples 2.39%
Energy 1.25%
Cash 1.00%
Materials 0.77%
Industrials 0.63%
Real Estate 0.59%
Health Care 0.57%
Utilities 0.45%
Telecommunication Services 0.09%

Contact Us

+44 (0) 203-535-8100
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