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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 80 – 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: Feb 19, 2020
Geographic Mix
% of Portfolio
Japan 21.73%
France 14.08%
Switzerland 11.14%
United Kingdom 9.35%
Australia 6.61%
Netherlands 5.84%
Germany 5.75%
Spain 4.31%
Ireland 4.14%
Hong Kong 4.03%
China 2.72%
Italy 1.70%
Belgium 1.56%
Norway 1.46%
Denmark 1.34%
Sweden 1.15%
New Zealand 1.02%
Austria 0.64%
Taiwan 0.30%
Korea, Republic of 0.26%
India 0.21%
Russian Federation 0.13%
Brazil 0.11%
Thailand 0.06%
Poland 0.05%
Indonesia 0.05%
Mexico 0.04%
Greece 0.04%
Malaysia 0.04%
South Africa 0.04%
Philippines 0.03%
Vietnam 0.03%
Chile 0.03%
Peru 0.02%
Turkey 0.02%
Sector Allocation
% of Portfolio
Financials 16.10%
Industrials 14.17%
Health Care 14.02%
Consumer Staples 13.45%
Information Technology 12.44%
Communication Services 8.32%
Consumer Discretionary 7.69%
Materials 5.80%
Real Estate 3.24%
Utilities 3.12%
Cash 1.50%
Energy 0.13%

Contact Us

+44 (0) 203-535-8100
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