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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: Aug 22, 2019
Geographic Mix
% of Portfolio
Japan 23.04%
France 13.46%
Switzerland 11.10%
United Kingdom 10.91%
Netherlands 8.04%
Australia 6.44%
Hong Kong 5.95%
Germany 5.79%
Ireland 3.35%
Spain 3.06%
Sweden 1.72%
Denmark 1.16%
Belgium 1.06%
Norway 1.05%
Austria 1.01%
China 0.74%
New Zealand 0.68%
India 0.27%
Taiwan 0.26%
Korea, Republic of 0.16%
Brazil 0.14%
Russian Federation 0.09%
South Africa 0.09%
Thailand 0.08%
Poland 0.05%
Mexico 0.04%
Indonesia 0.04%
Greece 0.04%
Malaysia 0.03%
Chile 0.03%
Vietnam 0.03%
Czech Republic 0.02%
Philippines 0.02%
Peru 0.02%
Sector Allocation
% of Portfolio
Consumer Staples 19.10%
Health Care 17.14%
Financials 15.02%
Industrials 14.76%
Information Technology 10.89%
Consumer Discretionary 8.14%
Communication Services 6.17%
Materials 3.61%
Energy 2.87%
Real Estate 1.32%
Cash 0.94%
Utilities 0.06%

Contact Us

+44 (0) 203-535-8100
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