Seafarer Overseas Growth and Income Fund Portfolio Review – Fourth Quarter 2018
January 2019 – With the Growth and Income Fund’s restructuring complete, Andrew Foster, Paul Espinosa, and Inbok Song discuss the Core, Value, and Growth components of the Fund, respectively. Andrew explains that 2018 bore witness to the decline that followed a “false dawn” in emerging markets, with China at the epicenter of the downturn. He sees signs of an improved outlook in emerging markets in 2019. Still, China’s fortunes remain crucial to the future of the asset class.
Seafarer Overseas Value Fund Portfolio Review – Fourth Quarter 2018
January 2019 – Paul Espinosa explains that as asset prices declined in emerging markets during the quarter, the Value Fund holdings’ low valuations and ordinary income did not provide as much capital stability as he expected. He examines several Fund holdings, including Crédito Real and China Foods, that impacted performance. Paul emphasizes continued focus on the operational and financial progress of the Fund’s holdings despite short-term macro pressures on equity valuations.
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.