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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 80 – 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 September 30, 1981
All data as at: Dec 06, 2019
Geographic Mix
% of Portfolio
Japan 22.60%
France 14.72%
United Kingdom 10.50%
Switzerland 8.78%
Netherlands 6.94%
Germany 6.21%
Hong Kong 5.85%
Australia 4.84%
Spain 4.22%
Ireland 3.88%
China 2.17%
Austria 1.64%
Belgium 1.56%
Denmark 1.23%
New Zealand 1.18%
Sweden 1.15%
Norway 1.06%
Taiwan 0.29%
India 0.26%
Korea, Republic of 0.24%
Brazil 0.13%
Russian Federation 0.11%
Thailand 0.07%
South Africa 0.05%
Indonesia 0.05%
Poland 0.04%
Mexico 0.04%
Greece 0.04%
Philippines 0.04%
Vietnam 0.03%
Malaysia 0.03%
Chile 0.02%
Peru 0.02%
Sector Allocation
% of Portfolio
Financials 18.13%
Industrials 14.96%
Health Care 14.15%
Consumer Staples 13.91%
Information Technology 12.62%
Consumer Discretionary 8.55%
Communication Services 5.89%
Materials 5.48%
Real Estate 2.88%
Energy 2.74%
Cash 0.65%
Utilities 0.04%

Contact Us

+44 (0) 203-535-8100
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