Below is a replay of a fascinating and globe-trotting conversation with Paul Espinosa, co-portfolio manager of the Seafarer Overseas Growth and Income Fund (SIGIX/SFGIX).

We discussed many facets of investing in emerging markets, including:

• The opportunities – higher economic growth, growing dividends, and more rapid technological progress

• The risks – political uncertainty, fickle economic winds

• How Seafarer approaches investing around political risk in China

• Why India may be poised for higher growth in the coming decade than people realize

• How a Peruvian bank defies emerging market perceptions by U.S. investors

• How a conversation with a Russian bank CEO caused Seafarer not to invest

Despite rough performance relative to U.S. markets in recent years, emerging market stocks are an important ingredient in diversified portfolios. As Paul discusses, their underperformance may set the stage for better returns in the years ahead.

Please let us know if you have any questions or comments.