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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: Aug 02, 2021
Geographic Mix
% of Portfolio
China 30.35%
Taiwan 14.42%
India 13.67%
Korea, Republic of 9.25%
Thailand 5.75%
Brazil 4.08%
Russian Federation 3.92%
Hong Kong 3.81%
Greece 2.61%
Switzerland 1.98%
Philippines 1.83%
Vietnam 1.65%
Malaysia 1.57%
United Kingdom 1.19%
Indonesia 1.10%
United States 0.65%
South Africa 0.62%
Chile 0.55%
Hungary 0.51%
Poland 0.48%
Sector Allocation
% of Portfolio
Information Technology 27.54%
Financials 18.54%
Consumer Discretionary 16.96%
Consumer Staples 8.17%
Industrials 7.04%
Communication Services 6.84%
Real Estate 3.46%
Energy 3.30%
Health Care 2.85%
Materials 2.55%
Cash 1.96%
Utilities 0.80%

Contact Us

+44 (0) 203-535-8100
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