Seafarer®

Pursuing Lasting Progress in Emerging Markets®

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
Seafarer Overseas Growth and Income Fund

Portfolio Briefing – Third Quarter 2020

– Andrew Foster explains that Chinese consumer stocks led performance of the EM index in the quarter. He reports that Growth and Income Fund constituents are projected to produce positive earnings growth in aggregate this year, even as profits are expected to contract for the broader EM universe. Andrew attributes this outlook for the Fund to increasing industry leadership on the part of several Fund holdings.

Portfolio Briefing

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.

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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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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.

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