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NS Partners International Equity

Highlights

  • Unique Investment Philosophy: Emphasizes 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 foreign stock exchanges
  • Return Objective: MSCI EAFE Net Index + 2%-4% per annum over a market cycle
  • Risk Objective: 2%-4% 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 70 – 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 September 30, 1981
All data as at: Oct 15, 2021
Geographic Mix
% of Portfolio
Japan 22.26%
Switzerland 11.98%
United Kingdom 11.56%
France 9.90%
Australia 7.73%
Netherlands 5.50%
Norway 4.58%
Ireland 4.23%
Germany 3.96%
Hong Kong 3.78%
Spain 2.80%
Belgium 1.96%
Italy 1.94%
Denmark 1.79%
Taiwan 1.71%
Singapore 1.25%
Greece 1.01%
China 0.96%
India 0.39%
Korea, Republic of 0.17%
Thailand 0.13%
Russian Federation 0.11%
Brazil 0.07%
Philippines 0.05%
Malaysia 0.04%
Vietnam 0.04%
Indonesia 0.03%
Chile 0.03%
United States 0.02%
Hungary 0.01%
Poland 0.01%
Sector Allocation
% of Portfolio
Health Care 17.62%
Information Technology 16.37%
Consumer Staples 15.77%
Financials 14.47%
Industrials 14.15%
Consumer Discretionary 9.60%
Materials 4.28%
Communication Services 2.80%
Energy 2.42%
Real Estate 2.29%
Cash 0.19%
Utilities 0.02%

Contact Us

+44 (0) 203-535-8100
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