Seafarer®

Pursuing Lasting Progress in Emerging Markets®

Seafarer Overseas Growth and Income Fund

Portfolio Briefing – Second Quarter 2020

Andrew Foster continues to flag caution over markets as weak economic and corporate fundamentals combine with high valuations. He notes that in contrast to the broader EM, over half of the Growth and Income Fund’s constituents are expected to produce positive earnings growth this year. Lastly, Andrew expresses grave concerns for the future of economic and political freedoms in Hong Kong, given the new security law imposed by China.

Portfolio Briefing
Seafarer Overseas Value Fund

Portfolio Briefing – Second Quarter 2020

Paul Espinosa describes how large cap, cyclical companies led performance of the Value Fund, while small caps detracted from performance. He explains that the Fund is adding large caps and “gems” (companies with high returns on capital, good management and capital discipline) with once-in-a-cycle valuation levels. Paul highlights the addition of Mondi, a global packaging and paper company, to the portfolio.

Portfolio Briefing

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

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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