Pursuing Lasting Progress in Emerging Markets

Seafarer Overseas Growth and Income Fund Portfolio Review – Second Quarter 2018

Great Wall of China

July 2018 – Andrew Foster discusses the two primary factors responsible for the decline in emerging markets during the quarter, as well as the holdings that weighed on the Growth and Income Fund’s performance. He explains that China’s rise as a global hegemon is structurally changing the risk-return profile of the emerging markets. Andrew describes how Seafarer’s approach to balancing the trade-off between growth and income in the Fund is evolving in response.

Portfolio Review

Letter to Shareholders – Annual Report

Shenzhen, China

May 2018 – In the Annual Report letter, Andrew Foster states that despite his concerns over China’s increasingly centralized government control, the country’s growing economic scale and global prominence mean that it cannot be ignored in an investor’s portfolio. In his view, investors must consider a substantial, structural increase in their exposure to China – through dedicated allocation to a broad array of asset classes. Andrew also notes the Growth and Income Fund’s reduction in operating expenses, consistent with Seafarer’s long-term goals.

Letter to Shareholders

News and Commentary

Prevailing Winds China’s Crackdown on Financial Risks

Following financial shocks in China in 2015 and 2016, Chinese authorities have taken steps to reduce risks across the financial system and slow the growth rate of credit, particularly in the shadow banking system. View the post.

The Prevailing Winds blog by Nicholas Borst tracks economic and financial developments shaping China. Learn more.

One Belt, One Road – Many Motives

China’s Belt and Road initiative is an ambitious vision for global trade, infrastructure development, and diplomacy. 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? View the white paper.