Anyone else have this thought; is SFGIX, Seafarer Overseas Growth and Income, really a diversified EM fund? I've continued to believe in the manager, but it is getting hard to justify holding what appears to be an Asian fund when you thought you were holding a diversified EM fund. Per M* it holds almost 80% of it's equities in the Asian region.
If Foster is not going to move on from his Asian roots, I may have too.
And here's EEM, the MSCI index, corroborating the 74%:
EEM (EM index fund)
I recall the index as being in the 60s a few years back (haven't owned an EM equity fund in a while), so Asia's expanded.
There are different ways to parse what's EM and what's not, tho. Maybe the more developed east Asian nations skew the proportion if they're included in the count; I don't have Premium, so can't check the country-by-country list of the EM benchmark on M*, but the main portfolio page does show 25% developed Asian economies (per M*, apparently) in the "diversified EM" benchmark.
I presume you're asking about the composition of SFGIX. If so, go to the link below.
Bookmark this link for future use for checking other tickers. You don't need to login to view decent data. For future checks, as with GASFX, enter the symbol at the top right search box, then select what you want to view; as with this link for composition.
I find the page layout informative and easy to read.
My 2 cents as to SFGIX, is being in a few places at the wrong times; or perhaps something else managers were hoping. Brazil and South Korea have been problematic for the past year, and other exposure to the Asia area is more of a problem with the current circumstances.
Lastly, I couldn't find a specific listing for the symbol, WTF , MikeM placed in the subject line.
Have a great day, Derf
A few things going on in my head I guess. One is a post from a few weeks ago with the question, do you really need an EM fund? The other is the performance record for SFGIX over the past 3+ years. On the positive side, it is a tamer way to play the EM category if you choose to be there. That plus the managers thoughtful approach to capital protection IS why I bought it.
Oh, well, just thinking out loud. Thanks for the discussion.
I enjoyed your humor and understand. I'm sure everyone here has had the add-on symbol of WTF for various holdings over the years. Not that we have necessarily made a bad decision; but other forces beyond our control get in the way of our well thought plans.
A non advertised benefit of MFO and the discussion board is "investment therapy" sessions.
Outside of MFO, and the WTF notation; my greatest frustration over the years is attempting to motivate those I know well to invest. I'm sure our breed of investor is a very small percentage of the public.
But, I'm drifting off the subject of your post; and will stop here.
Interesting name (Growth and Income). Price’s TRIGX was called G&I until maybe 5 years ago when they dropped that description and renamed it a “value” fund. When I looked at its 1-year performance, it’s done far worse than SFGIX with more than a 13% loss. But it never was a good performer. (TRIGX is concentrated in Europe.)
International have lagged U.S. equities for a while. One reason has been the very strong Dollar. While I like to hedge against the Dollar, I do it using less volatile EM and global bond funds. As far as being an EM in disguise, it’s hard to say. Even non-EM international funds usually dabble in EM. Sometimes that exposure can be “unlimited” per Prospectus.
No opinion on whether you should buy, sell, hold this one. Generally after I sell a fund it bounces back with outperformance. The financial media is hot with stories of how the EM markets stand to lose big in the Trump trade war. Again, by the time you and I hear this type news it’s likely already been discounted by the markets.
The below chart is for the etf EEM beginning Oct. 31, 2007. I used this date, as this is near top + or - a week or two for a lot of equities worldwide; prior to the full market melt in 2008. The total return for EEM during this period (through May 13) is -7.9%.
Note: the chart set only to May 9 at -5.3%; but -7.9% is correct through May 13
EEM total return chart (Oct. 31, 2007 through May 13, 2019)
Disclosure: we have not held any emerging markets equity for diversification; but have held EM bonds 6-10 years back.
ADD: FNMIX during this same time frame had a total return of +108%
The above(s) examples are with the consideration of buy and hold, beginning Oct. 31, 2007.
Try this plot, where I've added EFA into the mix.
FNMIX, EM Bond, EEM, EFA total return (Oct 31, 2007 through May 13, 2019)
Developed and emerging foreign markets seem to track pretty closely, at least from the visual. According to M*'s chart, EEM lost a total of 4.38% ($10K became $9,562), and EFA gained a total of 8% ($10K became $10,800).
I don't have an interest in a portfolio manager who is happy to invest a lot of his AUM in China, but then (perhaps in a second of candor) seems to be agnostic as to the possibility of a crash in Chinese equities.
If one TRULY has a 20-year time horizon and is unconcerned about equity crashes, why not just invest passively? -- An investor can passively endure equity crashes without paying a useless management fee. For 20 years.
My biggest argument when considering my own portfolio right now (being 65) is do I even need an EM fund. I hold SFGIX because I believe it is the least volatile approach to EM investing. But frankly, I don't believe SFGIX will outperform FMIJX (my 1 international fund) in most any time frame over 3 years.