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: Jan 20, 2021
Geographic Mix
% of Portfolio
Japan 21.41%
France 13.71%
United Kingdom 8.12%
Switzerland 7.26%
Australia 6.76%
Hong Kong 5.85%
Netherlands 5.57%
Spain 4.48%
Ireland 4.38%
Germany 4.27%
Sweden 2.30%
Taiwan 2.06%
Belgium 2.03%
Austria 2.02%
Korea, Republic of 1.79%
China 1.66%
Norway 1.66%
Italy 1.56%
Denmark 1.23%
Russian Federation 1.10%
India 0.27%
Brazil 0.18%
Thailand 0.09%
Indonesia 0.07%
Greece 0.05%
Malaysia 0.04%
Mexico 0.03%
South Africa 0.02%
Vietnam 0.02%
United States 0.02%
Philippines 0.01%
Sector Allocation
% of Portfolio
Industrials 19.49%
Information Technology 17.10%
Financials 13.18%
Health Care 10.50%
Consumer Staples 10.41%
Consumer Discretionary 10.10%
Materials 9.94%
Utilities 3.09%
Real Estate 3.09%
Communication Services 2.59%
Cash 0.48%
Energy 0.03%

Contact Us

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