Seafarer®

Pursuing Lasting Progress in Emerging Markets®

News and Media

The Wire China – The Financial Fallout from China’s Property Market

In The Wire China, Seafarer’s Nicholas Borst writes that China’s economic recovery will continue to disappoint unless urgent reforms are enacted to revive the property market and restructure local government debt. : As of December 31, 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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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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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

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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U.S.-China Commission – 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
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
Seafarer Overseas Value Fund

Mutual Fund Observer – Seafarer Overseas Value Fund

In Mutual Fund Observer’s profile of the Value Fund, Paul Espinosa describes EM corporates that are expanding internationally, led by management teams with experience in navigating challenging market conditions. : As of March 31, 2023, Samsung Biologics Co., Ltd. comprised 4.3% of the Seafarer Overseas Growth and Income Fund, Samsung Electronics Co., Ltd., Pfd. comprised 3.5% of the Fund, Samsung SDI Co., Ltd. comprised 2.6% of the Fund, Samsung C&T Corp. comprised 1.4% of the Fund, Samsung Electronics, Co., Ltd. comprised 1.4% of the Fund, WH Group, Ltd. comprised 1.3% of the Fund, Ambev SA comprised 2.1% of the Fund, Anheuser-Busch InBev SA comprised 2.2% of the Fund, and DFI Retail Group Holdings, Ltd. comprised 1.4% of the Fund. As of March 31, 2023, Samsung SDI Co., Ltd. comprised 3.1% of the Seafarer Overseas Value Fund, Samsung C&T Corp. comprised 2.0% of the Fund, Samsung C&T Corp., Pfd. comprised 0.2% of the Fund, WH Group, Ltd. comprised 2.7% of the Fund, Ambev SA comprised 2.3% of the Fund, Anheuser-Busch InBev SA comprised 2.8% of the Fund, Melco International Development, Ltd. comprised 3.5% of the Fund, Shangri-La Asia, Ltd. comprised 3.3% of the Fund, and DFI Retail Group Holdings, Ltd. comprised 2.4% of the Fund. View the Top 10 Holdings for the Growth and Income Fund and the Value Fund. As of March 31, 2023, the Seafarer Funds did not own shares in the other securities referenced in this commentary. Holdings are subject to change.

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CSIS ChinaPower Podcast – Interview with Nicholas Borst

In an interview with the CSIS ChinaPower Podcast, Nicholas Borst discusses how growing debt levels in China – concentrated among local governments, real estate developers, and state-owned enterprises – stem from an imbalanced fiscal system, and why they are a source of financial risk. Listen

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China Leadership MonitorChina’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. : As of December 31, 2022, Alibaba Group Holding, Ltd. comprised 3.9% of the Seafarer Overseas Growth and Income Fund. View the Seafarer Overseas Growth and Income Fund’s Top 10 Holdings. As of December 31, 2022, the Seafarer Funds did not own shares in the other securities referenced in this commentary. Holdings are subject to change.

China’s Balance Sheet Challenge

CFA 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

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Seafarer Overseas Value Fund

Value 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 Interview

OMFIFBrazil 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.

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Money 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

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Prevailing Winds

U.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.

Risks and Opportunities: The U.S.-China Financial Relationship

OMFIFChina’s Economic Recovery is Balance Sheet Constrained

In OMFIF, Seafarer’s Nicholas Borst writes that Beijing can no longer spare its own balance sheet if it wants to both stimulate the economy and keep local governments solvent. : As of September 30, 2022, the Seafarer Funds did not own shares in the entities 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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Seafarer Overseas Value Fund

Financial Advisor – Finding Hidden Value in Emerging Markets

In an interview with Financial Advisor, Paul Espinosa discusses the Value Fund’s bottom-up security selection process and how Seafarer’s team finds companies with distinct sources of investment return. : As of June 30, 2022, Qatar Gas Transport Co., Ltd. comprised 2.1% of the Seafarer Overseas Growth and Income Fund, National Central Cooling Co. PJSC (Tabreed) comprised 2.0% of the Fund, DFI Retail Group Holdings, Ltd. comprised 1.6% of the Fund, WH Group, Ltd. comprised 1.3% of the Fund, Moneta Money Bank AS comprised 1.6% of the Fund, Anheuser-Busch InBev SA comprised 2.1% of the Fund, and Ambev SA comprised 2.6% of the Fund. As of June 30, 2022, Qatar Gas Transport Co., Ltd. comprised 4.4% of the Seafarer Overseas Value Fund, National Central Cooling Co. PJSC (Tabreed) comprised 4.3% of the Fund, DFI Retail Group Holdings, Ltd. comprised 3.3% of the Fund, WH Group, Ltd. comprised 3.2% of the Fund, Moneta Money Bank AS comprised 3.2% of the Fund, Anheuser-Busch InBev SA comprised 3.0% of the Fund, and Ambev SA comprised 2.5% of the Fund. View the Top 10 Holdings for the Growth and Income Fund and the Value Fund. Holdings are subject to change.

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News Release

Lydia So Added as a Lead Manager of Growth and Income Fund

Lydia So was named a Lead Portfolio Manager of the Seafarer Overseas Growth and Income Fund. She joins Andrew Foster and Paul Espinosa, who remain Lead Portfolio Managers of the Fund.

News Release

The DiplomatChina’s Interventionist Approach to Managing Financial Risks

In The Diplomat, Seafarer’s Nicholas Borst writes that China’s new approach to cleaning up the financial sector is likely to result in a more state-centric economy. : As of June 30, 2022, the Seafarer Funds did not own shares in the entities 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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Today On Wall St.Is Evergrande China’s Lehman Moment?

In an interview with Today On Wall St., Seafarer’s Nicholas Borst explains why discussion of a “Lehman Moment” in China overlooks the fact that the country’s property sector is grappling with problems distinct from those the U.S. faced in 2008. : As of March 31, 2022, the Seafarer Funds did not own shares in the entities referenced in the 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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The Wire China – Understanding China’s Household Balance Sheet

In The Wire China, Seafarer’s Nicholas Borst writes that China’s household balance sheet is stronger than commonly thought, but its strength depends on residential housing prices remaining high.

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Money Life – Interview with Andrew Foster

In an interview with Money Life’s Chuck Jaffe, Andrew Foster notes that emerging markets can offer a source of diversified growth within an investor’s portfolio – but given the volatility of the asset class, a long-term time horizon is essential. Listen

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Money Life – Interview with Paul Espinosa

In an interview with Money Life’s Chuck Jaffe, Paul Espinosa explains that the past ten years may have been a lost decade for emerging market investors, but not for EM corporates, which accumulated retained earnings and grew dividends. : As of December 31, 2021, Ambev SA comprised 2.7% of the Seafarer Overseas Growth and Income Fund and 3.4% of the Seafarer Overseas Value Fund. View the Top 10 Holdings for the Growth and Income Fund and the Value Fund. Holdings are subject to change. Listen

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Prevailing Winds

Asia Society Conference – Risks and Opportunities: The U.S.-China Financial Relationship

In an Asia Society Conference panel, Nicholas Borst explains why the U.S. and China share responsibility for the current state of the deteriorating bilateral investment relationship.

Risks and Opportunities: The U.S.-China Financial Relationship

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.

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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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Advisorpedia – Understanding the Trade-offs in Emerging Markets Indices

In Advisorpedia, Seafarer’s Steph Gan writes that as leading emerging market indices pursue scalability and replicability, they favor large-capitalization companies and are overweight several scale-dependent sectors. : As of March 31, 2021, Samsung Electronics Co., Ltd. comprised 4.5% of the Seafarer Overseas Growth and Income Fund and Ping An Insurance Group Co. of China, Ltd. comprised 3.6% of the Fund.  The Seafarer Funds did not own shares in the other entities referenced in this commentary.  View the Top 10 Holdings for the Growth and Income Fund and the Value Fund. Holdings are subject to change.

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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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The Interpreter – Has China Given Up On SOE Reform?

In the Lowy Institute’s The Interpreter, Seafarer’s Nicholas Borst discusses why the lack of transparency around Chinese state-owned enterprises has contributed to growing levels of distrust, both within and outside of China, about the government’s intentions.

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Money Life – Interview with Andrew Foster

In an interview with Money Life’s Chuck Jaffe, Andrew Foster compares three countries that dominate EM – China, Taiwan, and South Korea – with other EM countries in terms of valuations and the path to pandemic-related “normalization.” He also discusses China’s evolving role within the EM asset class. Listen

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Prevailing Winds

Asia Society Conference – Rebalancing the U.S.-China Economic Relationship

In an Asia Society Conference panel, Nicholas Borst explains how the increase in holdings of Chinese securities by U.S. investors has emerged as a major source of conflict in the U.S.-China economic relationship.

Rebalancing the U.S.-China Economic Relationship

Money Life – Interview with Andrew Foster

In an interview with Money Life’s Chuck Jaffe, Andrew Foster discusses three factors shaping the outlook for EM countries amid the Covid-19 pandemic: preparedness of healthcare and emergency response systems; deployment of monetary stimulus from central banks; and the presence of companies with resilient balance sheets, strong industrial capacities, and customer demand. Listen.

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Seafarer Overseas Value Fund

Value Investor Insight – Sources of Value

In an interview with Value Investor Insight, Paul Espinosa uses Seafarer’s framework of seven sources of value to explain his investment approach and discuss several Fund holdings.  Andrew Foster asserts that structural conditions in the emerging markets have changed such that a value strategy can be realized.

Value Investor Insight Interview

ValueWalk – State Control Goes Beyond State-owned Enterprises in China

In ValueWalk, Seafarer’s Nicholas Borst writes that state control of companies in China is not as simple as ownership: private companies in China may fiercely pursue their own interests in some areas while acquiescing to government priorities in others.

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Seafarer Overseas Value Fund

Mutual Fund Observer – Emerging Market Value Investing Revisited

Mutual Fund Observer’s David Snowball provides an update on the long-term case for emerging market value investing. He highlights the Seafarer Overseas Value Fund in an analytical comparison of emerging market value funds.

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Seafarer Overseas Value Fund

ValueWalk – What You Need To Know About Value Investing In Emerging Markets With Seafarer

In an interview with ValueWalk, Paul Espinosa uses Seafarer’s framework of seven distinct sources of value to illustrate his investment approach and valuation process.

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Bloomberg – Emerging Market Stock Picker Says Key Is Ignoring Macro “Noise”

In an interview with Bloomberg, Paul Espinosa explains that he approaches stock selection by tuning out the macro “noise” and focusing on stock-specific research. Paul notes that he examines value stocks in terms of the drivers that produce cash flows, instead of merely weighing the valuation multiples.

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Money Life – Interview with Andrew Foster

In an interview with Money Life’s Chuck Jaffe, Andrew Foster asserts that while growth in emerging market countries is slowing, the markets are still producing great companies. Increasingly, world-class companies are emerging from these markets. Listen.

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Ben Graham Conference – Value in Emerging Markets Panel

At the Ben Graham VI Annual Conference hosted by CFA Society New York, Paul Espinosa applies Seafarer’s seven distinct sources of value to the securities universe within the emerging markets and concludes that the opportunity for value-oriented investments is significant.

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The Diplomat – Understanding China’s Bond Ratings

In The Diplomat, Seafarer’s Kate Jaquet writes that the arrival of international credit rating agencies in China could draw greater foreign participation to the Chinese bond market.

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U.S.-China Commission – What Keeps Xi Up at Night

In testimony to the U.S.-China Economic and Security Review Commission, Nicholas Borst describes the array of challenges facing the Chinese economy and the structural reforms that would help China achieve sustainable economic growth.

Looking Back on China’s 2018

Money Life – Interview with Andrew Foster

In an interview with Money Life’s Chuck Jaffe, Andrew Foster explains three reasons for an improved outlook in emerging markets in 2019: reasonable valuations and stable growth, increasing independence from developed markets, and signs of pragmatic leadership in China. Listen.

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News Release

Re-opening of the Seafarer Overseas Growth and Income Fund

The Growth and Income Fund’s Institutional Class (SIGIX) will re-open to new investors on November 19, 2018.

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Money Life – Interview with Andrew Foster

In an interview with Money Life’s Chuck Jaffe, Andrew Foster notes that emerging markets currently exhibit speculative characteristics, led by Chinese shares. Andrew highlights the concentration of the emerging market benchmark index in a handful of Chinese internet stocks. Listen.

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Consuelo Mack WealthTrack – Interview with Andrew Foster

In an interview with Consuelo Mack, Andrew Foster asserts that emerging markets’ new financial independence might allow the asset class to exhibit a meaningful degree of “decoupling” from the developed world.

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Money Life – Interview with Andrew Foster

In an interview with Money Life’s Chuck Jaffe, Andrew Foster notes that profits in developing markets are growing at a moderate pace, but analysts’ expectations for future growth may be unrealistic. He discusses key risks in these markets, including strained liquidity conditions in China and political instability in Turkey. Listen.

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Seafarer Overseas Value Fund

Mutual Fund Observer – Elevator Talk: Paul Espinosa, Seafarer Overseas Value

In Mutual Fund Observer’s “Elevator Talk” segment, Paul Espinosa discusses his approach to value investing in the developing world.

Seafarer Overseas Value Fund Profile

Citywire USA – Interview with Andrew Foster

In an interview with Citywire USA, Andrew Foster provides an outlook for emerging markets and describes his investment approach.

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Barron’s – Emerging Markets Roundtable: Where to Invest Now

At the Barron’s emerging markets roundtable, Andrew Foster joins three other portfolio managers to discuss the outlook and risks in emerging markets.

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Money Life – Interview with Andrew Foster

In an interview with Money Life’s Chuck Jaffe, Andrew Foster describes a structural change that has begun to transform the investment landscape within the developing world: the rise of “value.” Andrew suggests that the prerequisites for realizing a “value” strategy in developing markets are materializing, slowly but steadily, with improvements in accounting and legal standards, the proliferation of change-of-control investors, and the development of local currency debt markets. Listen.

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Morningstar – Emerging Markets: Not Quite at the Bottom Yet

Andrew Foster and Jason Stipp of Morningstar discuss valuations and prospects for growth in the emerging markets, along with the "decoupling" that is taking place in monetary and currency policies.

Morningstar Interview
News Release

Launch of the Seafarer Overseas Value Fund

Seafarer launched the Seafarer Overseas Value Fund on May 31, 2016. The Fund applies a value discipline to emerging markets, where Seafarer estimates discounts to intrinsic worth are prevalent and compelling. Though distinct from Seafarer's Growth and Income strategy, the new Value strategy uses the same bottom-up, fundamental research process that is a hallmark of Seafarer’s philosophy. Seafarer believes the Value strategy has the potential to capitalize on long-term, structural changes in the emerging markets.

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Money Life – Interview with Andrew Foster

In an interview with Money Life’s Chuck Jaffe, Andrew Foster discusses the qualities that distinguish an emerging market. Andrew asserts that emerging markets are, by definition, beset by financial shocks, economic fragility, and governance shortcomings. While such dysfunctions beget unwelcome volatility, they also provide an opportunity to make basic improvements and progress, which can lead to sustainable growth. Listen.

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Morningstar – What's Going on in China?

In an interview with Morningstar, Andrew Foster discusses the causes of recent volatility in the Chinese stock market, and what it means for China’s economy.

Morningstar Interview
Seafarer Overseas Growth and Income Fund

Value Investor Insight – Well Traveled

In an interview with Value Investor Insight, Andrew Foster discusses the Seafarer Overseas Growth and Income Fund’s strategy and holdings, and his approach to value investing in the developing world.

Value Investor Insight Interview

Morningstar – Seeking Sustainable Growth in Emerging Markets

In an interview with Morningstar, Andrew Foster discusses the Seafarer Overseas Growth and Income Fund’s performance over the past three years and his outlook for emerging markets in light of substantial changes taking place in China and India.

Morningstar Interview
Seafarer Overseas Growth and Income Fund

Mutual Fund Observer – Seafarer Overseas Growth and Income Fund Profile

The Mutual Fund Observer offers its analysis and views of the Seafarer Overseas Growth and Income Fund.

Seafarer Overseas Growth and Income Fund Profile
Seafarer Overseas Growth and Income Fund

Morningstar – Frequent Fliers

Morningstar profiles Andrew Foster and other portfolio managers who are tackling the challenges of investing internationally.

Morningstar Article

Morningstar – Emerging Markets: Great Potential for the Patient

In an interview with Morningstar, Andrew Foster addresses the important structural changes underway as the emerging markets transition from an export-led to a service-led economic model.

Morningstar Interview
Seafarer Overseas Growth and Income Fund

Morningstar – Three Promising Diversified Emerging Markets Funds

Morningstar profiles the Seafarer Overseas Growth and Income Fund and other young emerging market mutual funds launched by industry veterans.

Morningstar Article

Morningstar – Has China Hit its Growth Limit?

In an interview with Morningstar, Andrew Foster discusses slowing growth in China and the shift in the country’s growth model.

Morningstar Interview

Consuelo Mack WealthTrack – Interview with Andrew Foster

In an interview with Consuelo Mack, Andrew Foster describes what he looks for in an investment: sustainable growth and current income. He discusses how China’s growth model is changing, and how service sectors are likely to lead the way. He offers thoughts on Turkey’s potential, and he expresses confidence that growth persists despite severe global challenges.

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Seafarer Overseas Growth and Income Fund

Bloomberg – A Fund For The Risk-Averse In Emerging Markets

In an interview with Bloomberg, Andrew Foster discusses Seafarer’s investment strategy and the opportunities he sees in emerging markets.

Interview

Investing Daily – Emerging Market Stocks: The BRIC Is Just the Beginning

In an interview with Investing Daily, Andrew Foster addresses the economic transition taking place in some emerging markets and the investment opportunities arising from this shift.

Interview
Seafarer Overseas Growth and Income Fund

Mutual Fund Observer – Interview with Andrew Foster

In an interview with David Snowball, Andrew Foster discusses why he founded Seafarer and the characteristics that distinguish Seafarer Overseas Growth and Income Fund.

Interview
News Release

Seafarer Overseas Growth and Income Fund Launched

The primary investment objective of this new, no-load fund is to provide investors with long-term capital appreciation along with some current income. As a secondary objective, the Fund seeks to mitigate adverse volatility in returns.

News Release

Morningstar – Three Risks to Emerging Markets Investing

In an interview with Morningstar, Andrew Foster discusses current risks in developing markets, including entrenched inflation, potentially volatile emerging market currencies, and moderating growth in China.

Morningstar Interview
The views and information discussed in this commentary are as of the date of publication, are subject to change, and may not reflect Seafarer's current views. The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the portfolios or any securities or any sectors mentioned herein. The subject matter contained herein has been derived from several sources believed to be reliable and accurate at the time of compilation. Seafarer does not accept any liability for losses either direct or consequential caused by the use of this information.
For an explanation of terms, please refer to our glossary.
View the Seafarer Overseas Growth and Income Fund’s Top 10 Holdings. View the Seafarer Overseas Value Fund’s Top 10 Holdings. Holdings are subject to change.
View the Funds’ most recent month-end performance. Past performance does not guarantee future results. It is not possible to invest directly in an index.