Seafarer®

Pursuing Lasting Progress in Emerging Markets®

Seafarer Overseas Growth and Income Fund

Portfolio Review – Third Quarter 2020

New Taipei City, Taiwan

Andrew Foster explains that while gains in the EM benchmark were concentrated in Chinese shares, the Growth and Income Fund’s performance was far more geographically diversified. He discusses how the search for better-priced shares led the Fund away from the intersection of East Asia and technology, and toward Brazil. Lastly, Andrew asserts that a surplus of liquidity and confidence has inflated a bubble in China's stock markets.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – Third Quarter 2020

Belo Horizonte, Brazil

Paul Espinosa describes how two Value Fund holdings realized value embedded in their balance sheets. He reviews portfolio allocation changes, including two new holdings in Brazil. Lastly, Paul explains why he expects a return to profit and valuation – not company size and revenue growth – as drivers of sustainable investment returns.

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

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 Debt
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.

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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.

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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.

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