Pursuing Lasting Progress in Emerging Markets

Seafarer Overseas Growth and Income Fund Portfolio Review – Fourth Quarter 2017

February 2018 – In his review of the Growth and Income Fund, Andrew Foster notes that the recent gains in the benchmark index are without much historical precedent, and could imply widespread speculation. Next, he discusses recent changes to the portfolio's holdings, and his attempts to make the Fund's tactical position more defensive at the margin. Andrew concludes by recounting some of the speculative behavior that he has observed among both investors and companies, and warns that investors should re-assess their tolerances for risk, and prepare for near-term volatility.

Portfolio Review

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.

Letter to Shareholders

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.