Seafarer®

Pursuing Lasting Progress in Emerging Markets®

Seafarer Overseas Growth and Income Fund

Portfolio Briefing

Paul Espinosa explains that the Growth and Income Fund avoided headline risks in China related to real estate developers and the government crackdown on industries such as education. However, holdings in South Korea suffered, likely from anticipation of a global slowdown in GDP.

Portfolio Briefing
Prevailing Winds

China’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 Sector

China’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.

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How 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.

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Money 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

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Seafarer Overseas Growth and Income Fund

Portfolio Review

Incheon, South Korea

Kate Jaquet attributes the largely steady upward performance of EM equities in the quarter to a speculative optimism that companies across many sectors will eventually restore their former profitability. She explains that Samsung Biologics, a new Growth and Income Fund holding, offers exposure to an industry with sustainable long-term growth potential.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review

Querétaro, Mexico

Paul Espinosa discusses several portfolio holdings to illustrate that the Value Fund’s performance was largely driven by corporate earnings-related considerations, not simply a rotation into value stocks. He introduces a new position, Coca-Cola Femsa, as an example of a Fund holding that actively improved its operating efficiency and market share during the pandemic.

Portfolio Review

Prevailing Winds

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Prevailing Winds

China’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 Lines

News and Commentary

Emerging 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 Briefing
White Paper

The Evolution of China’s Bond Market

The rapid development of China’s domestic bond market, now the second largest in the world, represents a significant step in the opening up of the country’s capital markets.

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The Future of China within the Emerging Market Asset Class

As China’s economic might is ever more fraught with political and moral dilemmas, Andrew Foster weighs the merits of carving out China as an independent asset class.

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Managing Currency Risk in the Emerging Markets

Andrew Foster and Kate Jaquet describe how Seafarer utilizes its proprietary macro currency model to manage currency risks within the construct of a diversified portfolio of foreign securities.

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The Wire China – The Party on the Inside: The CCP and Chinese Companies

In The Wire China, Seafarer’s Nicholas Borst writes that China’s effort to entrench the Chinese Communist Party within companies is incompatible with its desire to be treated as a modern market-based economy.

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Field Notes

Explore Our Map
Field Notes

Penang

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.

Penang
Field Notes

Beijing

Technology Reigns

Beijing’s technology companies are focused on smart city initiatives, big data, and artificial intelligence.

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Field Notes

Delhi

Smoked Out

Hazardous air pollution in Delhi exposes the politics of India’s environmental ambitions.

Delhi