Portfolio Briefing –
– Andrew Foster describes how two Growth and Income Fund holdings unlocked value embedded in their balance sheets. He also offers a retrospective on the evolution in the Growth and Income strategy undertaken three years ago.
Portfolio BriefingPortfolio Briefing –
– Paul Espinosa discusses new positions in the Value Fund, including a property developer in the United Arab Emirates and a consumer snack company in China. He notes a shift in the portfolio composition to larger-cap, more liquid securities.
Portfolio BriefingLetter to Shareholders – Semi-annual Report
– Paul Espinosa writes that, despite the past decade of modest EM corporate earnings growth, Seafarer finds opportunities in the form of strengthened balance sheets (retained earnings) and improved corporate governance (higher dividends).
Letter to ShareholdersPortfolio Review –
– Andrew Foster explains that while Chinese shares were particularly responsible for the EM benchmark’s retreat, the Growth and Income Fund’s performance was driven by exposure to falling South Korean holdings. Andrew asserts that, despite the sweeping policy interventions by the Xi administration, China remains “investable,” albeit only very selectively – as has always been the case.
Portfolio ReviewPortfolio Review –
– Paul Espinosa attributes the Value Fund’s performance to two types of holdings: stocks negatively impacted by the resurgent pandemic and Brazil country risks, and stocks driven higher by idiosyncratic factors. He also introduces a new Fund holding, a multi-format retailer operating in Asia.
Portfolio ReviewPrevailing Winds
Learn MoreChina’s Complicated Relationship with the Private Sector
– In response to a large and freewheeling private economy, the Chinese government under Xi Jinping is engaging in a widespread campaign to assert greater control over the private sector.
China’s Complicated Relationship with the Private SectorChina’s Credit Crackdown: Financial Risks and Political Red Lines
– Efforts by Chinese regulators to stamp out risks will fall short as long as China’s financial system exists in its current suboptimal state of partial liberalization.
China’s Credit Crackdown: Financial Risks and Political Red LinesParty Committees in Chinese Companies
– Renewed efforts to expand the Chinese Communist Party’s role in companies are antithetical to China’s desire to be treated as a modern market-based economy.
SOE Reform in China – Implications for Policymakers and InvestorsNews and Commentary
The Diplomat – The Idiosyncrasies of China’s Bond Market
– In The Diplomat, Seafarer’s Kate Jaquet writes that China’s bond market appears hampered by unpredictable default mechanisms, non-standardized bond covenants, and unreliable bond ratings.
MoreHow the Value Team Finds “Gems” in Emerging Markets
– Paul Espinosa examines four company attributes that guide the Value team’s search for “Gems”: ROE-COE spread, resilience across the company life cycle, global validation, and a valuation consistent with the minimum rate of return.
MoreMoney Life – Interview with Andrew Foster
– In an interview with Money Life’s Chuck Jaffe, Andrew Foster explains that innovative, globally competitive companies are emerging from the developing world, despite slowing economic growth. Listen
MoreChina’s Bond Markets: Defaults and Idiosyncrasies
– Several looming corporate restructurings will show just how committed China’s regulators are to the development and healthy maturation of the country’s bond markets.
MoreEmerging Markets Briefing
– Seafarer addresses key questions about emerging markets investing and how U.S. investors can integrate the asset class into long-term portfolios.
Emerging Markets BriefingFund Resources
Field Notes
Explore Our MapPenang
Manufacturers Limited by Customer Concentration
– The small Malaysian state of Penang has a skilled workforce, reliable infrastructure, and a long history in the global technology supply chain. One thing that many Penang-based contract manufacturers don’t have is customer diversification.
PenangBeijing
Technology Reigns
– Beijing’s technology companies are focused on smart city initiatives, big data, and artificial intelligence.
MoreDelhi
Smoked Out
– Hazardous air pollution in Delhi exposes the politics of India’s environmental ambitions.
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