Portfolio Briefing – Fourth Quarter 2020

– Andrew Foster attributes the performance of the Growth and Income Fund to companies that offer resilient and durable earnings and cash flow growth despite the pandemic. He describes how the Fund’s positioning and cash levels changed over the course of a volatile year for emerging markets.
Portfolio BriefingPortfolio Briefing – Fourth Quarter 2020

– Paul Espinosa discusses how Value Fund performance was led by a strong comeback of holdings that had sold off earlier in the year due to the pandemic. He describes the current risks associated with investment in the Fund and other asset classes, and notes that risk management requires diversification of the drivers of investment return.
Portfolio BriefingLetter to Shareholders – Semi-annual Report

– Kate Jaquet discusses how Seafarer’s team has adapted to remote work this year. She describes two risks in China that she is closely monitoring: indebted property developers and the troubled banking sector. Lastly, Kate explains that accelerated digitalization and evolving capital markets create investment opportunities in the developing world for the long-term investor.
Letter to ShareholdersField Notes


The investment team shares its insights from research trips, including recent visits to Penang and Beijing.
Field NotesNews and Commentary
How Exposed Are U.S. Investors to China?

– U.S. investors have invested more in China than the official statistics indicate, but remain less important as a financing source for Chinese companies than policymakers and the media may imagine.
How Exposed Are U.S. Investors to China?Tracking China’s Foreign Debt

– China leads the emerging markets in foreign debt, but a closer analysis reveals that China’s foreign borrowing is less risky than it appears, and is manageable relative to the size of the economy.
Tracking China’s Foreign DebtHave 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.
MoreThe 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.
MoreChina’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