Seafarer®

Pursuing Lasting Progress in Emerging Markets®

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
Seafarer Overseas Growth and Income Fund

Portfolio Review – First Quarter 2020

Busan, South Korea

Andrew Foster and Paul Espinosa explain that stocks with stable cash flow, substantial accumulated cash, and attractive dividend yields were not defensive in March’s crash. The only evident haven within EM was among high growth (but often loss-making) technology and software stocks. Andrew concludes by noting that the stocks held by the Growth and Income Fund are attractively priced at present, and the underlying companies enjoy healthy balance sheets and resilient prospects.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – First Quarter 2020

Dubai, UAE

Paul Espinosa discusses how Value Fund holdings were impacted by the concurrent demand and supply shocks caused by the COVID-19 pandemic. He explains that the Fund exited several positions in order to concentrate the portfolio in higher conviction and higher liquidity securities. Lastly, Paul expresses concern that the developed market policy response to COVID-19 impairs future productivity, and notes that Seafarer searches for EM companies that improve productivity at every downturn.

Portfolio Review

News and Commentary

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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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.

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A Tale of Two Indices

Warsaw, Poland

Steph Gan examines questions that are fundamental to the emerging market asset class: how are emerging market indices designed, and what are their objectives? In what manners do the benchmarks excel, and what are their limitations?

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