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NS Partners International Equity Focused

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 concentrated 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 with 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 typically holds up to 50 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 October 31, 2004
All data as at: Dec 12, 2018
Sector Allocation
% of Portfolio
Financials 17.75%
Consumer Staples 16.40%
Industrials 14.91%
Health Care 13.60%
Information Technology 8.14%
Consumer Discretionary 7.19%
Communication Services 7.18%
Energy 5.50%
Materials 3.88%
Cash 3.01%
Real Estate 2.44%
Utilities 0.00%

Contact Us

+44 (0) 203-535-8100
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