China’s Balance Sheet Challenge


– In an article for China Leadership Monitor, Nicholas Borst examines the scale of China’s debt problem and how policymakers can put the country’s balance sheet on firmer footing.
China’s Balance Sheet ChallengeCFA Society San Francisco – Interview with Nicholas Borst

– In an interview with CFA Society San Francisco, Nicholas Borst explains that amid increasing state control over China’s economy and tense U.S.-China relations, there are four underappreciated developments in Chinese companies and corporate governance. Listen
MoreMexico City: Corporate Underinvestment

– One reason for Mexico’s slow economic growth is that companies are underinvesting, largely in response to the country’s current political environment.
MorePortfolio Review –

– Andrew Foster explains that he is optimistic about the merit of long-term investment in EM due to the resiliency of corporate profits and currencies, healthy balance sheets, and valuations that are accommodative for investors seeking yield and growth. He introduces three new Growth and Income Fund positions in India and one in Mexico.
Portfolio ReviewPortfolio Review –

– Paul Espinosa suggests that the Value Fund’s performance was driven by the low valuations and improving profit prospects of the Fund’s holdings. He introduces three new holdings: Petronet, Bank of Georgia, and Odontoprev.
Portfolio ReviewValue Investor Insight – Shifting Fortunes?

– In an interview with Value Investor Insight, Paul Espinosa discusses Value Fund holdings to illustrate how the Fund identifies companies that are undervalued or poised to be more productive.
Value Investor Insight InterviewWhat is Control Party Analysis?

– Seafarer defines Control Party Analysis as an empirical means to assess the governance of a company, used in lieu of subjective attempts to determine “the quality of management.”
MorePortfolio Briefing –

– Andrew Foster reports that the Growth and Income Fund’s performance was driven by recoveries in Asian, Eastern European, and semiconductor holdings. Lydia So introduces three new growth positions in Mexico and India, and Paul Espinosa discusses the Fund’s value holdings.
Portfolio BriefingPortfolio Briefing –

– Paul Espinosa discusses how Value Fund performance was driven in part by cyclical holdings that outperformed against headwinds. He notes that the Fund intends to provide shareholders with a differentiated source of return that is diversified from the market and shareholders’ other investments.
Portfolio BriefingPrevailing Winds
Learn MoreChina 2023 Outlook

– Despite significant challenges facing Chinese companies, there are reasons to be optimistic that China will continue to provide attractive investment opportunities.
China 2023 OutlookU.S.-China Economic Conflict: Implications for Investors and the Business Community

– Nicholas Borst moderated a panel that examined what the strained relationship between the world’s two largest economies means for investors and businesses.
U.S.-China Economic Conflict: Implications for Investors and the Business CommunitySecurity Over Growth: China’s New Economic Approach

– A growing sense of internal and external vulnerability has led Xi Jinping to emphasize security and political concerns in China’s economic policy.
Security Over Growth: China’s New Economic ApproachNews and Commentary
The Transparency Problem in China’s Credit Markets

– The treatment of creditors and outcomes of corporate restructurings in China’s troubled property sector pose challenges for the country’s fixed income markets.
MoreMessage to Shareholders – Portfolio Manager Update

– Brent Clayton was named a Co-Portfolio Manager of the Seafarer Overseas Value Fund. Paul Espinosa and Andrew Foster remain Lead Portfolio Manager and Co-Portfolio Manager of the Fund, respectively.
Message to ShareholdersMoney Life – Interview with Paul Espinosa

– In an interview with Money Life’s Chuck Jaffe, Paul Espinosa explains that the Value Fund pursues total return driven by companies with distinct sources of return that are diversified from the overall market. Listen
MoreOMFIF – Brazil is Undergoing a Fintech Revolution

– In OMFIF, Seafarer’s Kate Jaquet writes that Brazil is well suited to fintech innovations due to the rigidity of its traditional banks, shifting consumer preferences, and pivotal government initiatives.
MoreChina 2023 Outlook

– Nicholas Borst discusses recent volatility affecting Chinese stocks and highlights four underappreciated aspects of investing in China. He also examines these topics in a Letter to Shareholders.
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