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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 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: Aug 13, 2020
Geographic Mix
% of Portfolio
Japan 17.76%
France 15.24%
Australia 8.57%
Switzerland 8.38%
United Kingdom 7.32%
Germany 6.52%
Netherlands 6.44%
Hong Kong 5.24%
Ireland 4.66%
Denmark 2.39%
Spain 2.16%
Sweden 2.02%
Norway 1.81%
China 1.81%
Italy 1.70%
Taiwan 1.49%
Austria 1.42%
Korea, Republic of 1.33%
New Zealand 1.21%
Belgium 1.17%
Russian Federation 0.79%
India 0.18%
Brazil 0.11%
Thailand 0.05%
Greece 0.03%
South Africa 0.03%
Malaysia 0.03%
Indonesia 0.03%
Mexico 0.02%
Colombia 0.02%
Philippines 0.01%
Chile 0.01%
Vietnam 0.01%
Sector Allocation
% of Portfolio
Industrials 17.33%
Information Technology 15.67%
Financials 13.59%
Health Care 13.11%
Consumer Discretionary 10.79%
Consumer Staples 10.52%
Materials 8.63%
Real Estate 4.46%
Communication Services 3.37%
Utilities 1.68%
Cash 0.81%
Energy 0.05%

Contact Us

+44 (0) 203-535-8100
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