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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: Jun 22, 2018
Geographic Mix
% of Portfolio
Japan 20.88%
United Kingdom 15.51%
Switzerland 9.74%
France 9.36%
Germany 7.65%
Netherlands 7.27%
Australia 7.06%
Hong Kong 3.92%
Sweden 3.89%
Ireland 3.61%
Finland 2.56%
Korea, Republic of 1.86%
Belgium 1.62%
Spain 1.60%
Norway 1.15%
Italy 1.05%
New Zealand 0.78%
China 0.18%
India 0.06%
Taiwan 0.05%
Brazil 0.03%
Russian Federation 0.03%
Thailand 0.03%
Mexico 0.02%
South Africa 0.02%
Chile 0.01%
Peru 0.01%
Malaysia 0.01%
Poland 0.01%
Greece 0.01%
Vietnam 0.01%
Philippines 0.01%
Czech Republic 0.01%
Sector Allocation
% of Portfolio
Financials 18.56%
Industrials 15.74%
Consumer Staples 15.25%
Information Technology 12.73%
Health Care 12.56%
Consumer Discretionary 6.94%
Materials 6.74%
Energy 4.48%
Telecommunication Services 3.48%
Cash 1.95%
Real Estate 1.56%
Utilities 0.01%

Contact Us

+44 (0) 203-535-8100
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