Seafarer®

Pursuing Lasting Progress in Emerging Markets

Seafarer Overseas Growth and Income Fund

Portfolio Review – First Quarter 2019

Jakarta, Indonesia

Andrew Foster, Paul Espinosa, and Inbok Song discuss Growth and Income Fund holdings that made notable contributions to performance. They introduce several new Fund holdings, including a retail bank in Indonesia known for its micro-lending franchise. The managers assert that while concerns over trade and politics continue to weigh on emerging markets, the assessment from the ground up is not bad: 2018 finished with decent earnings growth, China has gradually re-initiated market-based reforms, and currencies are exhibiting independence from U.S. monetary policy.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – First Quarter 2019

Prague, Czech Republic

Paul Espinosa discusses two holdings emblematic of the Value Fund’s strategy, noting that they lie “off the beaten path” of the emerging markets benchmark and generate value for shareholders in ways that extend beyond growth expectations. He introduces a new Fund holding, a bank in the Czech Republic. Lastly, Paul cites earnings growth and China’s economic policy direction as reasons for his positive outlook on the emerging markets.

Portfolio Review

Letter to Shareholders – Semi-annual Report

Lanzhou, China

Andrew Foster explains that despite unsatisfactory performance, he believes the emerging markets still warrant long-term investment, chiefly because of their potential to decouple from the investment cycle of the developed world. Andrew asserts that current U.S. trade policy will push China toward greater economic independence, and the pace of transformation will likely surprise observers. When the transition is complete, the emerging markets will follow a new and differentiated investment cycle, with China at their center.

Letter to Shareholders

News and Commentary

Market Commentary

China’s Stock Connect – Insights from the Trading Team

Nicholas Borst speaks with two members of Seafarer’s trading team, Chris Clayton and Alex Lusherovich, about how China’s Stock Connect program is changing the way foreign investors access the A-share market.

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Prevailing Winds

China’s Hidden Government Debt

Local government off-balance sheet borrowing – both a channel of economic stimulus and a source of acute financial risks – complicates measurements of overall government debt in China.

China’s Hidden Government Debt
White Paper

The Evolution of China’s Bond Market

The rapid development of China’s domestic bond market, now the third largest in the world, represents a significant step in the opening up of the country’s capital markets.

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Field Notes

Seoul

Companies Find Growth Overseas

Facing a competitive domestic market, nimble Korean companies find growth overseas.

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Tbilisi

Georgia Embraces Transparency

After a dark past, Georgia is embracing transparency. It is noticeable in corporate governance structures, as well as Tbilisi’s skyline.

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