Seafarer®

Pursuing Lasting Progress in Emerging Markets®

Seafarer Overseas Growth and Income Fund

Portfolio Review – Second Quarter 2020

Budapest, Hungary

Andrew Foster explains that stock markets throughout the EM marched higher, with Chinese stocks dominating the surge, despite poor and uncertain corporate performance. He remains concerned that stocks in the developing world – notably China – are poised for weakness. Andrew also reports that the Growth and Income Fund’s holdings are likely, in aggregate, to produce modest earnings growth in 2020, even as profits are expected to contract for the broader EM.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – Second Quarter 2020

Macau, China

Paul Espinosa describes how the Value Fund is adding “gems” – large companies with above-average returns on capital and high caliber management – at attractive valuation levels. The additions are increasing the liquidity and scalability of the Fund.

Portfolio Review

Letter to Shareholders – Annual Report

Xi’an, China

Daniel Duncan offers a perspective on the volatile market environment and explains why he believes most developed market investors can benefit from the diversification offered by investing in the emerging markets. He cautions that while the initial COVID-19-related panic in global capital markets may be over, there could be significant negative economic and market events to come.

Letter to Shareholders

News and Commentary

Prevailing Winds

Have Foreign-listed Chinese Stocks Been a Bad Deal for Investors?

Contrary to the assertions of many critics, foreign-listed Chinese firms – particularly those listed in the U.S. – have provided attractive returns for investors over the past decade.

More
Prevailing Winds

The China Investment Dilemma – Part IV

How to Navigate a Tumultuous U.S.-China Relationship

Nicholas Borst offers a disciplined approach to navigating the challenges posed by the volatile U.S.-China relationship.

More

China’s Indebted Residential Property Development Sector

As the Chinese economy faces headwinds on multiple fronts, its residential property sector – rife with opaque financing and cross-currency debt – presents risks to Chinese authorities.

More
Prevailing Winds

Divest and Delist? The Case Against Exiting China

Efforts to limit foreign investment in Chinese companies will be a significant setback for corporate reforms in China.

More

A Tale of Two Indices – Discussion with Steph Gan

Steph Gan speaks with Andrew Foster about her commentary A Tale of Two Indices, which examines how countries and industries that represent the next leg of the developing world’s emergence are likely to be under-represented in leading emerging market indices.

More