February 2016 –
In his latest portfolio review, Andrew Foster discusses a shift in the Fund’s composition,
away from the Asian region,
at the expense of smaller ones. Next, he speculates as to the
cause behind the collapse
in China’s capital markets. While he does not offer a definitive explanation, he does suggest that
circumstances may be serious
enough to warrant attention from investors.
He concludes by citing two reasons for optimism, despite China: first, stocks in the emerging markets are
cheap enough to be attractive;
and second, interest rates in the developing world
from those in the U.S. in a manner that may be conducive to growth.
Fourth Quarter 2015 – Despite a serious financial crisis, a number of Russian companies are planning and investing with a long-term horizon in mind.
View the Field Notes.
White Paper – On Value in the Emerging Markets
November 2015 –
Paul Espinosa examines the
universe of value stocks
that lie within the emerging markets.
Rather than rely on basic quantitative measures to distinguish “cheap” stocks from “expensive” ones, Paul defines
seven distinct sources of value
that might represent viable opportunities for long-term, value-oriented investments.
He applies these seven definitions to the securities universe within the emerging markets and discovers a
subset worth $1.4 trillion.
Paul then examines each of the seven categories in detail, studying the challenges and opportunities within each.
He discusses where
value “traps” might lie
– and how best to avoid them.
Paul concludes by noting the opportunity for value in the developing world is
large, diverse, and seemingly untapped
by the global investment industry.
The Fund seeks to provide long-term capital appreciation
along with some current income; it also seeks to mitigate
adverse volatility in returns.
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.