Seafarer®

Pursuing Lasting Progress in Emerging Markets®

Seafarer Overseas Growth and Income Fund

Portfolio Review

Manaus, Brazil

Andrew Foster suggests that the Growth and Income Fund’s outperformance in 2023 was due to the stability of its underlying profit growth, amid a market caught off guard by weak and falling earnings. He introduces two new Fund holdings and discusses the counterintuitive strength of EM currencies.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review

Hyderabad, India

Brent Clayton describes how the Value Fund’s performance was driven by Latin American holdings and company-specific efforts to unlock balance sheet value. He reports on the operational turnaround efforts at Tata Motors, a new Fund holding.

Portfolio Review
Prevailing Winds

The Balance Sheets at Risk from China’s Property Slowdown

The fallout from the end of China’s property boom will continue for many years as its effects ripple through the balance sheets of property developers, banks, and local governments.

The Balance Sheets at Risk from China’s Property Slowdown
Seafarer Overseas Growth and Income Fund

Portfolio Briefing – Fourth Quarter 2023

Andrew Foster reports that amid a weak EM backdrop, the Growth and Income Fund’s holdings are forecast to produce, in the aggregate, modest positive earnings growth in 2023. He describes how the Fund’s performance drivers were quite different from those of the EM benchmark in the quarter.

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Seafarer Overseas Value Fund

Portfolio Briefing – Fourth Quarter 2023

Brent Clayton discusses a new Value Fund holding, Tata Motors, an India-based multinational auto company. He explains why China continues to be a large source of compelling value opportunities. Paul Espinosa reviews key drivers of the Fund’s performance.

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Consuelo Mack WealthTrack – Interview with Andrew Foster

In an interview with Consuelo Mack, Andrew Foster states that the investment case for emerging markets lies in individual companies rather than countries. : As of September 30, 2023, securities mentioned in the video comprised the following weights in the Seafarer Overseas Growth and Income Fund: Xinhua Winshare Publishing and Media Co., Ltd. (0.9%), Alibaba Group Holding, Ltd. (2.7%), Samsung Electronics Co., Ltd. Pfd. (3.1%), Samsung Electronics Co., Ltd. (1.5%), and Samsung Biologics Co., Ltd. (3.0%). The Seafarer Funds did not own shares in the other securities referenced in this video. View the Top 10 Holdings for the Growth and Income Fund and the Value Fund. Holdings are subject to change.

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Prevailing Winds

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Prevailing Winds

Can Consumption Save the Chinese Economy?

To avoid a long-term slowdown in economic growth, Chinese policymakers need to change tactics and boost household consumption.

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Prevailing Winds

Testimony – China’s Economy: Implications for Investors

In testimony to the U.S.-China Economic and Security Review Commission, Nicholas Borst discusses the causes of China’s economic slowdown and the risks of local government debt.

Testimony – China’s Current Economy
Prevailing Winds

China’s Reopening and Corporate Expansion Overseas

After a recent trip to China, Nicholas Borst reports on China’s reopening, the operating environment for the country’s private sector, and Chinese companies’ efforts to expand internationally.

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News and Commentary

Value Investor Insight – Bottoms Up

In an interview with Value Investor Insight, Paul Espinosa discusses Anheuser-Busch InBev’s improved performance in non-U.S. markets and ongoing efforts to deleverage its balance sheet.

Value Investor Insight Interview

Money Life – Interview with Andrew Foster

In an interview with Money Life’s Chuck Jaffe, Andrew Foster discusses how some EM companies are transforming from government-owned entities to private sector enterprises, and reaping productivity gains in the process, while others are reshaping entire industries. Listen

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Mutual Fund Observer – In Conversation with Andrew Foster

In an interview with Mutual Fund Observer, Andrew Foster explains why he expects the biggest fundamental change in EM stocks to come through stock buybacks. : As of September 30, 2023, the Seafarer Funds did not own shares in the securities referenced in the article. View the Top 10 Holdings for the Growth and Income Fund and the Value Fund. Holdings are subject to change.

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Letter to Shareholders

Tianjin, China

Lydia So explains that the current environment presents opportunities to invest in durable businesses that can consolidate and gain market share, as less competitive companies either fail or retreat from markets. She describes the characteristics she seeks in growth securities.

Letter to Shareholders
Seafarer Overseas Growth and Income Fund

Value Investor Insight – Roads Less Traveled

In an interview with Value Investor Insight, Andrew Foster explains that he searches for companies that can grow with sustainable profitability, and whose stocks are cheap enough to make them relatively immune to economic and cyclical risks.

Value Investor Insight Interview

Field Notes

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Field Notes

Mumbai: Cashless is King

A national digital payments platform in India is changing how individuals and merchants transact.

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Field Notes

Dubai: A New Beacon for Capital

Dubai is ascending as a global financial center as policies attract foreign capital and companies demonstrate improved corporate governance.

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Field Notes

Mexico 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.

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