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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: May 29, 2020
Geographic Mix
% of Portfolio
China 38.85%
Taiwan 13.91%
Korea, Republic of 12.02%
India 5.97%
Brazil 4.64%
Russian Federation 4.46%
Hong Kong 3.63%
Poland 2.56%
Thailand 2.41%
Philippines 1.73%
Greece 1.68%
South Africa 1.65%
Turkey 1.16%
Vietnam 1.10%
Malaysia 1.04%
Chile 0.85%
Mexico 0.81%
Switzerland 0.75%
Peru 0.52%
Indonesia 0.27%
Sector Allocation
% of Portfolio
Consumer Discretionary 21.26%
Information Technology 20.47%
Financials 17.71%
Communication Services 13.87%
Consumer Staples 8.46%
Industrials 5.72%
Materials 3.83%
Real Estate 3.09%
Cash 1.98%
Utilities 1.41%
Health Care 1.28%
Energy 0.91%

Contact Us

+44 (0) 203-535-8100
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