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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: Apr 19, 2019
Geographic Mix
% of Portfolio
Japan 21.13%
United Kingdom 13.76%
France 12.41%
Switzerland 10.44%
Hong Kong 8.97%
Netherlands 5.92%
Australia 5.47%
Germany 5.45%
Ireland 3.64%
Spain 3.08%
Sweden 2.76%
Belgium 1.68%
New Zealand 1.46%
Denmark 1.07%
China 0.82%
Norway 0.44%
India 0.28%
Taiwan 0.22%
Korea, Republic of 0.20%
Brazil 0.15%
Russian Federation 0.12%
South Africa 0.10%
Indonesia 0.08%
Thailand 0.07%
Mexico 0.06%
Poland 0.04%
Malaysia 0.04%
Vietnam 0.04%
Chile 0.03%
Philippines 0.03%
Czech Republic 0.03%
Greece 0.02%
Sector Allocation
% of Portfolio
Industrials 17.55%
Consumer Staples 16.52%
Health Care 15.02%
Financials 13.72%
Consumer Discretionary 11.28%
Information Technology 8.25%
Communication Services 7.36%
Materials 3.64%
Energy 3.51%
Real Estate 1.75%
Cash 1.35%
Utilities 0.05%

Contact Us

+44 (0) 203-535-8100
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