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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 13, 2020
Geographic Mix
% of Portfolio
China 41.80%
Taiwan 12.04%
Korea, Republic of 11.46%
India 7.97%
Hong Kong 5.14%
Brazil 4.69%
Russian Federation 4.16%
Thailand 2.13%
Switzerland 1.70%
Greece 1.48%
South Africa 1.45%
Malaysia 1.38%
Indonesia 1.37%
Mexico 0.78%
Colombia 0.65%
Philippines 0.63%
Chile 0.61%
Vietnam 0.55%
Sector Allocation
% of Portfolio
Consumer Discretionary 25.00%
Information Technology 22.85%
Financials 16.94%
Communication Services 9.39%
Industrials 9.38%
Materials 6.16%
Consumer Staples 3.93%
Real Estate 3.57%
Energy 2.11%
Cash 0.67%
Health Care 0.00%
Utilities 0.00%

Contact Us

+44 (0) 203-535-8100
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