November 2013 –
In his address to shareholders, Andrew Foster discusses the
lackluster performance
of the emerging markets this year. He suggests that
time and perspective
are essential to put the markets in proper context:
important structural changes
are underway, but progress is difficult to perceive – change proceeds slowly, in fits and starts.
Andrew concludes with a discussion of
“WYSIATI,”
an acronym coined by Daniel Kahneman.
WYSIATI describes a fallacy that impairs decision-making,
and Andrew believes it is relevant to investors:
prevailing indices used to track emerging markets
might obscure
as much as they reveal.
Andrew suggests time and perspective are required to overcome any WYSIATI perception bias.
October 2013 -
In his portfolio review, Andrew Foster discusses the Fund’s
performance amid the wild volatility in emerging markets
during the third quarter. Andrew highlights how
currencies exacerbated that volatility,
and he offers some thoughts on what to expect from currencies going forward.
Andrew also addresses China, which performed well
during the quarter, to the apparent surprise of many
investors. As ever, China remains challenging, offering up
both promise and peril: a “boom-let”
is underway in certain service industries; however,
escalating liquidity crunches –
as evidenced by growing stockpiles of “accounts receivable”
on balance sheets – suggest that financial distress could
intensify within the country.
The Fund seeks to provide long-term capital appreciation
along with some current income; it also seeks to mitigate
adverse volatility in returns.
Strategy
The Fund invests primarily in the securities of companies located in developing countries. The Fund invests in several asset classes including dividend-paying common stocks, preferred stocks, convertible bonds, and fixed-income securities.
More...
–
The Shareholder Conference Call offered a discussion of structural changes underway in the developing world and an examination of how prevailing indices might fail to capture those shifts.
View the
presentation.
Barron’s: Introducing the New Guard
–
Barron’s profiles Andrew Foster and other portfolio managers who stepped away from established companies to found their own firms.
Field Notes: Istanbul
–
My visit to Istanbul was only three blocks and three weeks apart from the chaos that engulfed Taksim Square.
Field Notes: São Paulo & Rio de Janeiro
–
The mass protests that unfolded across Brazil just weeks after my visit were not a complete surprise to me, given the high levels of frustration expressed to me by Brazilians concerning inflation, corruption, and inadequate infrastructure.
Field Notes: Lima
–
Peru has charted a stable macroeconomic course and it possesses a decent number of well-run companies, but valuations remain steep.
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News and Commentary
Shareholder Conference Call
Barron’s: Introducing the New Guard
Field Notes: Istanbul
– My visit to Istanbul was only three blocks and three weeks apart from the chaos that engulfed Taksim Square.
Field Notes: São Paulo & Rio de Janeiro
– The mass protests that unfolded across Brazil just weeks after my visit were not a complete surprise to me, given the high levels of frustration expressed to me by Brazilians concerning inflation, corruption, and inadequate infrastructure.
Field Notes: Lima
– Peru has charted a stable macroeconomic course and it possesses a decent number of well-run companies, but valuations remain steep.