Letter to Shareholders – Semi-annual Report
November 2018 – Andrew Foster explains that despite unsatisfactory performance, he believes the emerging markets still warrant long-term investment, chiefly because of their potential to decouple from the investment cycle of the developed world. Andrew asserts that current U.S. trade policy will push China toward greater economic independence, and the pace of transformation will likely surprise observers. When the transition is complete, the emerging markets will follow a new and differentiated investment cycle, with China at their center.
Seafarer Overseas Growth and Income Fund Portfolio Review – Third Quarter 2018
November 2018 – Andrew Foster notes that several Growth and Income Fund holdings rebounded during the quarter, and the Fund largely sidestepped a correction in Chinese technology stocks. He describes the impact of the Fund’s restructuring on the portfolio composition. Lastly, Andrew observes that conditions in the emerging markets are materially better than they might appear, but secondary effects from U.S. tariffs on China present a critical risk.
Seafarer Overseas Value Fund Portfolio Review – Third Quarter 2018
October 2018 – Paul Espinosa explains how the extension of price discovery related to the trade dispute between the U.S. and China – from companies directly impacted by tariffs to companies indirectly affected – has impacted the performance of various Value Fund holdings. He also discusses the Fund’s deployment of cash during a period of pressure on the prices of emerging market equities, as well as the addition of one new portfolio holding.