Seafarer®

Pursuing Lasting Progress in Emerging Markets

Video Library

Seafarer Overseas Growth and Income Fund Portfolio Briefing – Second Quarter 2017

Daniel Duncan and Andrew Foster discuss the gains in the Fund and index during the quarter, including the impact of the Chinese internet sector. Andrew addresses several false narratives about emerging market currencies and earnings growth. He notes that a broad-based recovery in earnings growth is underway, benefitting most sectors – but it appears to be a “two-speed” recovery, one which so far favors larger companies over smaller ones. Andrew concludes by noting that expectations for growth have become ebullient, and may overstate reality. View the video.

Seafarer Overseas Value Fund Portfolio Briefing – Second Quarter 2017

Daniel Duncan and Paul Espinosa discuss two Fund holdings that realized value in the second quarter: a packaging company in China and a cooling services company in the United Arab Emirates. Paul illustrates how geopolitical risk affects company analysis with a Fund holding in Qatar. Lastly, he describes a new Fund holding in China. View the video.

Seafarer Overseas Growth and Income Fund Portfolio Briefing – First Quarter 2017

Daniel Duncan and Andrew Foster discuss the factors affecting Fund and emerging market performance, including currency stability and a pick-up in earnings growth. Andrew describes two portfolio allocation decisions during the quarter: to withdraw the Fund’s capital from Turkey and establish the Fund’s first Chinese A-share position via the Shanghai-Hong Kong Stock Connect. Finally, he expresses concerns regarding rising earnings growth expectations and financial conditions in China. View the video.

Seafarer Overseas Value Fund Portfolio Briefing – First Quarter 2017

Daniel Duncan and Paul Espinosa discuss new Latin America and Middle East holdings in the Value Fund. Paul describes his expectations for Fund performance as independent of the benchmark and representing a “step function.” Lastly, he provides an overview of current research efforts focused on China, the Philippines, and Sri Lanka. View the video.

Market Commentary Changes to Chinese Currency Policy – Update

Daniel Duncan and Andrew Foster provide an update to their August 2015 video that addressed China’s steps to liberalize how its currency trades against the U.S. dollar. Andrew notes that, just over one year later, China is rolling back some of those liberalizations. He suggests that these policy changes are signs of strained liquidity conditions, and that risks in China’s financial system are consequently elevated. View the video.

Seafarer Overseas Growth and Income Fund Portfolio Briefing – Fourth Quarter 2016

Daniel Duncan and Andrew Foster discuss the losses in the emerging markets and the Growth and Income Fund during the fourth quarter. Andrew notes that the Fund’s losses were spurred by the performance of certain emerging market currencies in the aftermath of the U.S. presidential election. View the video.

Seafarer Overseas Value Fund Portfolio Briefing – Fourth Quarter 2016

Daniel Duncan and Paul Espinosa discuss the top contributors and detractors to Value Fund performance during the fourth quarter. Paul relates certain of those holdings to the seven sources of value in emerging markets that he defined in a recent white paper. View the video.

Seafarer Funds Portfolio Briefing – Third Quarter 2016

In the third quarter portfolio briefing, Andrew Foster discusses the purpose behind the recently-launched Seafarer Overseas Value Fund. Paul Espinosa describes the Value Fund’s implementation since launch, relating it to the seven sources of value in emerging markets that he defined in a recent white paper. Andrew concludes by addressing performance during the quarter, and how the Seafarer Overseas Growth and Income Fund is faring amid potential changes in the market environment. View the video and the presentation.

Seafarer Overseas Growth and Income Fund Portfolio Briefing – Second Quarter 2016

Daniel Duncan and Andrew Foster discuss developments in Brazil and China that shaped the performance of the emerging markets and the Fund during the second quarter.  Daniel probes the effect of the announcement of Britain’s exit from the European Union on the Fund; Andrew explains that Poland provides the majority of the Fund’s EU exposure, and that this event exacerbates an already challenging economic landscape in Poland. Andrew also notes the elevated financial risks in China, noting that his chief concern is growing illiquidity in the corporate sector, as evident by a dramatic increase in accounts receivable. View the video.

Market Commentary High Yield Bonds in the Emerging Markets

Kate Jaquet examines corporate bond opportunities in the emerging markets, comparing the credit quality and valuation of emerging market versus U.S. high yield bonds. View the video.

Seafarer Overseas Value Fund Value in the Emerging Markets – May 2016

Paul Espinosa examines the universe of value stocks that lie within the emerging markets. Rather than rely on basic quantitative measures to distinguish “cheap” stocks from “expensive” ones, Paul defines seven distinct sources of value that might represent viable opportunities for long-term, value-oriented investments. He applies these seven definitions to the securities universe within the emerging markets and discovers a subset worth $1.4 trillion. Paul concludes by noting that the opportunity to find value in emerging markets is large, diverse, and displays compelling valuation characteristics. View the video.

Seafarer Overseas Growth and Income Fund Portfolio Briefing – First Quarter 2016

Daniel Duncan and Andrew Foster discuss the volatile nature of emerging markets in the first quarter, largely driven by economic and political challenges impacting China and Brazil. In this context, Andrew stresses the importance of finding companies that are survivors – those that can produce attractive rates of profitability and sustained growth even in difficult macroeconomic circumstances. Andrew concludes by describing the factors he considers when managing the weighting of portfolio holdings, especially during periods of market volatility. View the video.

Seafarer Overseas Growth and Income Fund Portfolio Briefing – Fourth Quarter 2015

Daniel Duncan and Andrew Foster discuss the performance of the emerging markets and the Fund during the fourth quarter. Next, Daniel probes the influence of politics on markets; Andrew asserts that the political woes weighing on the developing world are mainly the symptom of economic weakness rather than the cause of it. Andrew concludes by touching upon the Fund’s current positioning, and noting that within the emerging markets, large capitalization stocks (above US $10 billion in size) generally offer the best relative value. View the video.

Seafarer Overseas Growth and Income Fund The Role of Preferred Equities, Convertible Bonds, and Fixed Income

Kate Jaquet discusses how non-common stock holdings allow the Seafarer Overseas Growth and Income Fund to optimize the tradeoff between prospective growth and current income, and can help the Fund to achieve its investment objectives. View the video.

Seafarer Overseas Growth and Income Fund Portfolio Briefing – Third Quarter 2015

Daniel Duncan and Andrew Foster discuss the pronounced weakness among emerging market currencies, along with the consequences for stock markets and the Fund. Andrew suggests a slow-moving currency crisis is underway, and he discusses notable differences versus previous currency crises. Lastly, he provides an update on China, including his thoughts on the country’s new currency policy and the government’s attempts to manage the economy and financial markets. View the video.

Seafarer Overseas Growth and Income Fund Overview of Risk Management Practices

Daniel Duncan, Andrew Foster, and Kate Jaquet discuss Seafarer’s approach to managing risk and volatility in the Seafarer Overseas Growth and Income Fund. They address three frameworks that Seafarer employs to understand and measure risk in the portfolio: individual security (issuer) risk analysis, a micro currency risk model, and a macro currency risk model. View the video.

Market Commentary Recent Market Volatility

Daniel Duncan and Andrew Foster discuss the factors contributing to pronounced market volatility, including currency weakness in emerging markets and recent shifts in China’s currency policy. View the video.

Market Commentary Changes to Chinese Currency Policy

Daniel Duncan and Andrew Foster discuss recent changes to the exchange rate mechanism for the Chinese Renminbi, along with some of the potential consequences for financial markets. View the video.

Market Commentary China’s Emergence, In Context

Andrew Foster admits that valuations on individual Chinese stocks are unsustainable and are likely to collapse. However, in his opinion, the overall growth of Chinese stock market capitalization does not constitute an ordinary bubble – the situation is far more complex. Andrew offers some data from history to place the evolution of China’s markets in context. He examines how the re-allocation of Chinese household wealth – away from property, and towards equities – might induce some of the Chinese market’s recent gyrations. View the video.

Seafarer Overseas Growth and Income Fund Portfolio Briefing – Second Quarter 2015

Daniel Duncan and Andrew Foster discuss the volatile nature of markets during the second quarter, and the factors that ostensibly induced that volatility – namely currencies, Greece, and China. Andrew suggests that current valuations for many Chinese shares are unsustainable, and will – with the benefit of hindsight – likely be termed as “bubbles.” They conclude with a brief discussion of the Fund’s allocation to Chinese equities. View the video.

Seafarer Overseas Growth and Income Fund Portfolio Briefing – First Quarter 2015

Daniel Duncan and Andrew Foster discuss the Seafarer Fund’s performance since inception, and how the Fund’s strategy seeks “sustainable growth.” They also address the impact of currency risk, and how the recent deceleration in growth in the developing markets might soon subside. View the video.

Market Commentary Currency Risk, In Context

Andrew Foster discusses how currency risk impacts the portfolios of long-term investors in the developing world. View the video.

Seafarer Overseas Growth and Income Fund Portfolio Briefing – Fourth Quarter 2014

Daniel Duncan and Andrew Foster discuss the Seafarer Fund’s performance, allocation, and outlook. View the video.