Key Morningstar Metrics for NBI Global Equity Fund
- : GoldMorningstar Medalist Rating
- : Above AverageProcess Pillar
- : HighPeople Pillar
- : AverageParent Pillar
The PineStone Global Equity strategy, which includes Canada-domiciled NBI Global Equity and US-domiciled NYLI PineStone Global Equity, earns an upgraded People rating of High; the Process rating remains Above Average.
Increased conviction in the investment team at subadvisor PineStone Asset Management drove the upgrade. The firm spun out of Fiera Capital in 2021 and has matured in recent years with the addition of key personnel, particularly a COO in 2024 and a chief of staff in 2026. Bolstering operational support has freed up time for firm founder and lead manager Nadim Rizk to focus on investment decisions, where his judgment has been a driver of the strategy’s long-term success. Beyond that, the strategy benefits from the team’s experience and continuity; most team members are industry veterans who worked together at Fiera. Most team members also have an equity stake in the new firm, which aligns their interests with those of investors.
The team applies a rigorous research process. It focuses on finding high-quality companies with durable competitive advantages. It uses quality metrics such as low leverage, high returns on capital, and high margins, alongside growth and valuation criteria, to narrow a global universe before subjecting the most promising ideas to detailed analysis and debate. The result is a high-conviction, low-turnover portfolio of 25-35 stocks. The portfolio has a persistent quality tilt and little exposure to cyclical industries such as banks, aerospace, and defense, where higher debt levels and lower return on assets don’t typically clear the process’ quality-driven hurdles.
Since Rizk’s May 2014 start through April 2026, the NBI Global Equity F class outperformed the global equity Morningstar Category average by 3.9 percentage points annualized in Canadian dollars. That said, the strategy’s quality-growth style can underperform when cyclical businesses lead, like during the past three years when the strategy’s 13.0% annualized gain trailed the average peer’s 15.4%. The strategy had little exposure to outperforming banks, aerospace, and defense, which was consistent with its quality-driven approach.
Despite recent weakness, the team’s experience and disciplined process remain key advantages for patient investors.
NBI Global Equity Fund: Performance Highlights
Nadim Rizk has delivered over the long term, but recent results have lagged.
Since Rizk’s May 2014 start through April 2026, the NBI Global Equity F class gained 13.2% annualized in Canadian dollars, which beat the Canadian global equity category average by 3.9 percentage points and slightly lagged the MSCI World Index by 0.1 percentage points. Risk-adjusted returns followed the same pattern.
The strategy has struggled over the past three years through April 2026. Its 13.0% annualized gain lagged the MSCI World Index by 7.3 percentage points and the average peer by 2.4 percentage points, ranking in the category’s third quartile. The manager’s quality-focused style tends to lag when more cyclical or less predictable businesses lead the market, as they have recently.
For instance, the portfolio had little exposure to outperforming bank, aerospace, and defense stocks, which don’t typically meet the process’ leverage and return on asset criteria. Industrials declined amid demand headwinds and higher interest rates, while stakes in Moody’s, CME Group, and Mastercard came under pressure as investors weighed the risk that artificial intelligence could disrupt their business models. Diageo continued to weigh on results, but the team believes it is positioned for a recovery thanks to its scale and pricing power.
The strategy didn’t own AI beneficiaries like Nvidia or Broadcom, but large positions in winners Taiwan Semiconductor Manufacturing and Alphabet more than offset their absence over the three-year period.
