Emerging Markets

Unique investment philosophy

 

Liquidity Conditions & Country Selection

 

Money supply leads economy, but excess money moves asset markets earlier i.e.
Money Moves Markets (Liquidity Theory of Asset Prices)

Stock Selection Focused on Economic Profitability

 

Securities are expected to generate high / improving economic
profitability relative to the market should outperform.

Peer Review Ensures Discipline

 

Revalidate, test conviction continuously; ensure tight capital discipline
(Behavioral Finance Theory)

Macroeconomic &
Liquidity Analysis

Measure countries’ sensitivity to global and domestic economic cycles and liquidity conditions

Interpret liquidity trends to establish country, sector and thematic views

Liquidity analysis informs risk appetite at a country, sector and total portfolio level

Systematic analysis of macroeconomic data, liquidity, earnings, and valuations

Qualitative analysis of politics, governance, and ‘structural’ liquidity flows

Stock Selection: Quality Growth Bias

Screen & Rank

 

Opinion list of approximately 200 stocks, covering
>65% of the benchmark

Screen and rank by region based on attractive
economic profitability:

Identify companies with improving or stable return
on invested capital

Bottom Up Fundamental Research

 

Direct stock selection to countries with a favorable market environment

Focus on companies with a strong competitive advantage, leading to high economic profitability, good balance sheets with sustainable business models

Identify catalysts, risks

Develop Forecasts

 

Select companies expected to outperform their peer group and benefit from positive liquidity trends in country of domicile

Establish long-term view for a company, industry, and country

Continually assess growth prospects, catalysts, and risks

Structural change is where the market is inefficient

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NS Partners Global
Emerging Markets Equity

A portfolio of equities in developing
markets measured against the MSCI
Emerging Markets Net Index.

 

 

NS Partners Sustainable
Global Emerging Markets

A portfolio of equities incorporating
detailed ESG research, an emphasis
on ESG factors, and a restriction on
investments in certain sectors and
securities.

Insights