NS Partners home
Money Moves Markets
 

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 + 3% 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: Jan 25, 2022
Geographic Mix
% of Portfolio
Japan 19.98%
Switzerland 14.32%
France 11.44%
United Kingdom 10.63%
Australia 7.71%
Netherlands 4.59%
Norway 4.48%
Ireland 4.19%
Germany 3.56%
Hong Kong 3.46%
Spain 2.45%
Belgium 2.07%
Italy 2.05%
Taiwan 2.02%
Denmark 1.80%
Singapore 1.60%
China 1.52%
Greece 1.01%
India 0.37%
Korea, Republic of 0.27%
Thailand 0.12%
Philippines 0.07%
Indonesia 0.07%
Russian Federation 0.05%
Vietnam 0.04%
Malaysia 0.04%
Chile 0.04%
Brazil 0.04%
Hungary 0.01%
Poland 0.00%
Sector Allocation
% of Portfolio
Health Care 16.50%
Financials 16.19%
Consumer Staples 15.91%
Industrials 13.86%
Information Technology 12.52%
Consumer Discretionary 9.67%
Communication Services 4.93%
Materials 4.68%
Energy 2.64%
Real Estate 1.72%
Cash 1.35%
Utilities 0.02%

Contact Us

+44 (0) 203-535-8100
Connor, Clark & Lunn Financial Group home page