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ANDREW FOSTER IS FINDING  UNDERVALUED, HIGH QUALITY, MARKET LEADING COMPANIES IN EMERGING MARKETS

In this episode of WEALTHTRACK, we explore the topic of emerging markets and their current investment potential. Our guest, Andrew Foster, a renowned portfolio manager and founder of Seafarer Capital Partners, shares his insights on why emerging markets are no longer a growth story. Foster emphasizes that the investment case for emerging markets lies in individual companies rather than countries.

He highlights the challenges faced by companies in China, such as government interference and encroachment on operations and governance. Foster also discusses his investment approach, focusing on income and value. Despite the changing landscape, he still finds China investable and continues to research and invest in the country. Overall, this episode provides valuable perspectives on the evolving dynamics of emerging markets and the importance of company-specific analysis in investment decisions.

WEALTHTRACK Episode #2026 broadcast on December 22, 2023
Listen to the audio-only version here:

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ANDREW FOSTER

  • Founder, Seafarer Capital Partners
  • Co-Portfolio Manager: 
    •  Flagship, Seafarer Overseas Growth and Income Fund
    •  Seafarer Overseas Value Fund

ACTION POINT

CONSIDER ADDING EMERGING MARKETS TO YOUR PORTFOLIO

  • Reality Check:
    • Emerging markets have underperformed developed ones for 10 years
    • Not reason alone to invest
    • Tend to be riskier and more volatile than developed markets
  • Positives:
    • Some world class, quality companies, selling at low valuations available in emerging markets
    • Warrant your attention 
    • Can add diversity to portfolio
    • Seafarer Overseas Growth & Income Fund
    •  Just added to Morningstar’s “Thrilling 30 List,” overseen by Russ Kinnel
  • MORNINGSTAR RECOMMENDATIONS INCLUDE:
    • GQG Partners Emerging Markets Equity Fund
      • Personally owned by Kinnel
      • 4-star Gold Medalist rating
      • Run by Rajiv Jain
      • Kinnel calls “One of best investors around”
      • Morningstar Manager of the Year Award winner
    • American Fund New World Fund
      • Also in Kinnel’s personal portfolio
      • 5-star Silver Medalist rating
      •  Invests in companies with bulk of revenues in emerging markets but don’t have to be based there
      •  – “…a little added stability thanks to better accounting standards and rule of law in developed markets, but…”
      •  “…still tapping the growth potential of emerging markets.” 
        Russ Kinnel, Morningstar, 7/5/2023

ONE INVESTMENT

FOSTER: PASSIVE EMERGING MARKETS EXPOSURE

Buy: Dimensional Emerging Core Equity Market ETF (DFAE)

Track all markets on TradingView

STOCK, BOND, FUND MENTIONS

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FROM THE ARCHIVE

Andrew Foster from the WEALTHTRACK Archives:

WEB EXTRA

FOLLOWING CHINA

What’s the best way to understand what’s happening in China? Andrew Foster,  who has been researching and investing in Asia since 1996 has two recommendations.