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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 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 75 – 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 12, 2018
Geographic Mix
% of Portfolio
Japan 20.97%
Switzerland 13.11%
United Kingdom 12.98%
France 10.98%
Hong Kong 6.86%
Netherlands 6.59%
Germany 6.10%
Australia 5.41%
Sweden 3.78%
Ireland 3.47%
Spain 2.03%
Finland 2.00%
Belgium 1.61%
New Zealand 1.27%
Italy 0.83%
China 0.75%
Taiwan 0.20%
Korea, Republic of 0.20%
Brazil 0.15%
India 0.15%
Russian Federation 0.11%
South Africa 0.11%
Mexico 0.06%
Chile 0.05%
Thailand 0.04%
Malaysia 0.04%
Vietnam 0.03%
Indonesia 0.03%
Greece 0.03%
Czech Republic 0.03%
Poland 0.02%
Philippines 0.01%
Sector Allocation
% of Portfolio
Financials 18.12%
Consumer Staples 16.89%
Industrials 16.24%
Health Care 14.96%
Information Technology 9.06%
Consumer Discretionary 7.20%
Communication Services 6.22%
Energy 5.17%
Materials 3.92%
Real Estate 1.96%
Cash 0.20%
Utilities 0.06%

Contact Us

+44 (0) 203-535-8100
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