Seafarer Overseas Growth and Income Fund Portfolio Briefing – First Quarter 2018
– Daniel Duncan and Andrew Foster discuss the Growth and Income Fund’s performance and the pronounced volatility of emerging markets during the quarter. Andrew notes that the volatility, following sustained outperformance in emerging markets, suggests potentially challenging conditions ahead.
Seafarer Overseas Value Fund Portfolio Briefing – First Quarter 2018
– Daniel Duncan and Paul Espinosa discuss the top contributors and detractors to Value Fund performance during the quarter. Paul explains that the performance of these holdings was asynchronous to that of the emerging markets index. He concludes by noting that the declines in the index created buying opportunities for the Fund.
Letter to Shareholders – Semi-annual Report
November 2017 – Andrew Foster offers a personal perspective on recent events in China, within the context of the country’s long-term evolution. Andrew explains that when Xi Jinping assumed the Presidency in 2012, his administration presented a bold plan to undertake economic reform and unlock new growth potential. However, the plan has fallen short over the past five years: reform has largely stalled while Xi consolidated political power. Meanwhile, the economy has remained reliant on excessive credit expansion to stimulate growth. Andrew expresses concern as to whether China will reach its potential.
Field Notes
The investment team shares its insights from research trips, including recent visits to Singapore, Jakarta and Santiago.
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News and Commentary
One Belt, One Road – Many Motives
– China’s Belt and Road initiative is an ambitious vision for global trade, infrastructure development, and diplomacy. China’s effort to elevate its international status draws on inspiration from the ancient Silk Road, but with broader territorial reach and potentially massive economic, political and social implications. The financial scale of this undertaking dwarfs the U.S. Marshall Plan in current dollar terms, but prompts key questions: how will it be funded, and who will pay for it?
Money Life – Interview with Andrew Foster
– In an interview with Money Life’s Chuck Jaffe, Andrew Foster notes that emerging markets currently exhibit speculative characteristics, led by Chinese shares. Andrew highlights the concentration of the emerging market benchmark index in a handful of Chinese internet stocks. Listen to the interview.
Emerging Markets Briefing
– Seafarer addresses key questions about emerging markets investing and how U.S. investors can integrate the asset class into long-term portfolios.