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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: Apr 19, 2021
Geographic Mix
% of Portfolio
Japan 17.03%
France 13.36%
United Kingdom 13.06%
Australia 8.35%
Hong Kong 6.05%
Germany 5.68%
Switzerland 4.82%
Netherlands 4.78%
Ireland 4.54%
Spain 4.09%
Italy 3.53%
Austria 2.13%
Taiwan 1.81%
Belgium 1.77%
Norway 1.71%
Sweden 1.50%
China 1.36%
Singapore 1.25%
Denmark 1.20%
Russian Federation 0.96%
India 0.27%
Korea, Republic of 0.26%
Brazil 0.16%
Thailand 0.11%
Indonesia 0.05%
Greece 0.05%
Malaysia 0.03%
Vietnam 0.02%
South Africa 0.02%
Philippines 0.02%
Chile 0.02%
United States 0.01%
Sector Allocation
% of Portfolio
Financials 18.33%
Industrials 15.80%
Information Technology 15.42%
Consumer Staples 11.43%
Consumer Discretionary 11.12%
Health Care 10.14%
Materials 8.43%
Real Estate 3.32%
Utilities 2.94%
Communication Services 2.36%
Cash 0.68%
Energy 0.03%

Contact Us

+44 (0) 203-535-8100
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