Portfolio Briefing – Second Quarter 2026
– Andrew Foster explains that performance for the Growth and Income Fund and EM benchmark was driven largely by technology stocks. He describes steering the Fund away from the market’s narrow focus on semiconductors and AI, to reflect the breadth of the strong EM earnings recovery in the portfolio. Andrew provides an update on Korea holdings and emphasizes that Seafarer derives returns from “companies, not countries.” Nicholas Borst discusses China’s “three-speed economy.”
MorePortfolio Briefing – Second Quarter 2026
– Paul Espinosa explains that both the Value Fund and the benchmark benefited from exposure to technology, though the Fund did so in a value-oriented way and to a lesser degree. He reports that the Fund drove returns from other sectors such as financials, while the benchmark’s appreciation was more concentrated. Brent Clayton discusses a new Fund holding, a conglomerate distinguished by its breakup value and disciplined capital allocation.
MoreChina Gets Serious about SOE Profits
– Beijing’s reforms to the management of state sector profits could boost efficiency and reduce economic distortions.
China Gets Serious About SOE ProfitsChina vs. U.S. Spending on Artificial Intelligence
– Financial and technological constraints have forced Chinese AI companies to focus on efficiency, cost, and practical applications. Chinese firms are betting that the returns to AI will come from near-term monetization and real-world use cases rather than the costly pursuit of frontier model breakthroughs, suggesting a different risk-reward profile than U.S. hyperscalers.
MorePortfolio Review –
– Lydia So reports that AI continued to be the main source of positive returns for the Growth and Income Fund, and contributions from the tech sector were spread across a diverse set of companies. She explains that the Fund’s three Middle East holdings were modest detractors to performance. Lydia also discusses three new Fund holdings.
Portfolio ReviewPortfolio Review –
– Brent Clayton explains that the Value Fund produced gains from companies engaged in capital recycling and Latin American financial institutions. He discusses the impacts of the war in the Middle East on Fund holdings in the region, as well as in India and Vietnam. Lastly, Brent describes a new Fund holding that offers a growing dividend backed by strong free cash flow generation.
Portfolio Review
Treasury Share Cancellations in South Korea
– South Korea's mandated treasury share cancellations remove a key tool that founding families have long used to entrench corporate control. Legislation is chipping away at the Korea Discount.
MoreDividend Growth in the Emerging Markets
– Dividends are surging in the EM asset class, providing further evidence that an earnings-led recovery is underway. The “Lost Decade” in the EM is over.
MoreThe Concentration of AI in Emerging Markets
– Artificial intelligence (AI) is already a material part of EM — most visibly through a handful of globally essential semiconductor champions. The catch is that EM’s exposure to AI is far more concentrated than most allocators realize, which makes understanding and managing that concentration an active portfolio management question.
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What's Wrong with Chinese Consumption?
– A robust and expanding service sector driven by private firms is key to reviving Chinese consumption.
What's Wrong with Chinese ConsumptionChina’s Competitive Shock to Global Markets
– China’s growing disruption of global industries is deeply intertwined with the country’s state-led industrial policies.
China’s Competitive Shock to Global MarketsWill Tariffs Crush Chinese Export Competitiveness?
– The continued growth of Chinese exports, in the face of rising tariffs and trade barriers, remains highly uncertain.
Will Tariffs Crush Chinese Export Competitiveness?News and Commentary
Message to Shareholders Regarding the Conflict in the Middle East
– The conflict in the Middle East is of material consequence for both investors generally and shareholders of the Seafarer Funds, and as such Seafarer is monitoring events closely. Seafarer provides a summary of the the first- and second-order exposures of the Seafarer Funds to the conflict.
MoreMoney Life – Interview with Andrew Foster
– In an interview with Money Life’s Chuck Jaffe, Andrew Foster discusses three important developments in the emerging markets: the U.S. dollar is not the dominant headwind it once was; earnings are growing for the second consecutive year; and dividends are surging. : As of September 30, 2025, Alibaba Group Holding, Ltd. comprised 3.0% of the Seafarer Overseas Growth and Income Fund. The Seafarer Funds did not own shares in the other securities referenced in this commentary. View the Seafarer Overseas Growth and Income Fund’s Top 10 Holdings. Holdings are subject to change. Listen
MoreFund Resources
Field Notes
Explore Our MapSeoul: The Corporate Big Leagues
– The outsized influence of South Korea’s large family-run conglomerates in daily life was driven home at the ballpark.
MoreSeoul: Taxes, and the Corporate Value-up Program
– A new national initiative in South Korea aims to improve the capital efficiency of listed corporates and bring about better treatment of minority shareholders.
MoreSão Paulo: Pharmacies on Every Corner
– Pharmacies in Brazil are becoming service hubs and occupying a more prominent role in the healthcare industry.
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