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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: Feb 18, 2019
Geographic Mix
% of Portfolio
Japan 20.09%
United Kingdom 13.82%
France 10.95%
Switzerland 10.67%
Hong Kong 8.46%
Australia 6.81%
Germany 5.65%
Netherlands 5.11%
Sweden 4.67%
Ireland 3.39%
New Zealand 1.97%
Spain 1.78%
Finland 1.63%
Belgium 1.61%
Denmark 1.14%
China 0.84%
Taiwan 0.21%
Korea, Republic of 0.21%
Brazil 0.18%
India 0.17%
Russian Federation 0.11%
South Africa 0.09%
Mexico 0.07%
Thailand 0.06%
Indonesia 0.06%
Chile 0.05%
Poland 0.04%
Malaysia 0.04%
Vietnam 0.04%
Czech Republic 0.03%
Philippines 0.03%
Greece 0.02%
Sector Allocation
% of Portfolio
Health Care 16.70%
Financials 16.54%
Consumer Staples 16.25%
Industrials 15.89%
Consumer Discretionary 10.40%
Information Technology 7.63%
Communication Services 5.90%
Energy 4.92%
Materials 3.51%
Real Estate 1.95%
Cash 0.25%
Utilities 0.06%

Contact Us

+44 (0) 203-535-8100
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