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 + 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: May 29, 2020
Geographic Mix
% of Portfolio
Japan 20.56%
France 13.86%
Switzerland 11.34%
United Kingdom 8.72%
Australia 7.83%
Netherlands 6.45%
Germany 6.25%
Ireland 4.16%
Hong Kong 3.83%
Spain 2.40%
China 2.40%
Sweden 2.08%
Norway 1.82%
Italy 1.50%
Denmark 1.47%
Belgium 1.22%
New Zealand 1.19%
Taiwan 1.17%
Austria 0.85%
Korea, Republic of 0.26%
India 0.13%
Brazil 0.10%
Russian Federation 0.10%
Poland 0.05%
Thailand 0.05%
Philippines 0.04%
Greece 0.04%
South Africa 0.04%
Turkey 0.02%
Vietnam 0.02%
Malaysia 0.02%
Chile 0.02%
Mexico 0.02%
Peru 0.01%
Indonesia 0.01%
Sector Allocation
% of Portfolio
Industrials 16.59%
Information Technology 14.59%
Consumer Staples 13.86%
Health Care 13.46%
Financials 13.00%
Consumer Discretionary 9.45%
Communication Services 6.06%
Materials 5.96%
Real Estate 4.17%
Utilities 2.61%
Cash 0.23%
Energy 0.02%

Contact Us

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