Seafarer®

Pursuing Lasting Progress in Emerging Markets®

Seafarer Overseas Value Fund

Portfolio Review

Montevideo, Uruguay

Brent Clayton discusses the impact of China’s stimulus measures on Value Fund and benchmark performance. He emphasizes that the Fund’s China weighting continues to be driven by the assessment of individual stocks across Seafarer’s seven sources of value. Brent explains that the improving asset productivity of Arcos Dorados, a new Fund holding, stands at odds with its inexpensive valuation.

Portfolio Review
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What Does China’s Stimulus Mean for its Economy?

Chinese authorities recently announced a series of stimulus measures for the economy, focused on stabilizing the housing market, addressing government debt, boosting consumption, and business confidence. These announcements led to a significant move in markets, but key details are still missing.

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Seafarer Overseas Growth and Income Fund

Portfolio Briefing – Third Quarter 2024

Nicholas Borst reports that China stocks rose sharply in response to recent stimulus announcements, and he reviews the four major problems that have weighed down China’s economy. Paul Espinosa notes that earnings and dividend growth from Growth and Income Fund holdings drove performance. Lydia So highlights specific contributors and detractors to Fund returns and introduces a new position in Vietnam.

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Seafarer Overseas Value Fund

Portfolio Briefing – Third Quarter 2024

Brent Clayton discusses a new Value Fund holding, Arcos Dorados, the largest independent McDonald’s franchisee. Paul Espinosa reviews the top contributors to Fund performance and explains the significance of rising dividends in the Fund’s portfolio.

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OMFIFHow Deeply Rooted Are China’s Economic Woes?

In OMFIF, Seafarer’s Nicholas Borst writes that China’s slowdown can be traced to four major problems: a real estate correction, weak consumption, deteriorating local government finances, and a constrained private sector.

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The Corporate Big Leagues

Field Notes – Seoul

The outsized influence of South Korea’s large family-run conglomerates in daily life was driven home at the ballpark.

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Death, Taxes, and the Corporate Value-up Program

Field Notes – Seoul

A new national initiative in South Korea aims to improve the capital efficiency of listed corporates and bring about better treatment of minority shareholders.

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Seafarer Overseas Growth and Income Fund

Portfolio Review

Hong Kong, China

Andrew Foster reports that currencies weighed on Growth and Income Fund performance, and the stocks moved a bit lower, even as a few narrow parts of the market soared. He explains that a broad-based EM earnings recovery is underway, and the fundamentals of the Fund’s holdings are strong – underscored by a surge in dividends.

Portfolio Review

Prevailing Winds

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Prevailing Winds

Are China’s Economic Challenges Cyclical or Structural?

China’s economy is weighed down on four fronts – real estate, consumption, fiscal issues, and the private sector – and political obstacles are standing in the way of addressing these problems.

Are China’s Economic Challenges Cyclical or Structural?
Prevailing Winds

The Balance Sheets at Risk from China’s Property Slowdown

The fallout from the end of China’s property boom will continue for many years as its effects ripple through the balance sheets of property developers, banks, and local governments.

The Balance Sheets at Risk from China’s Property Slowdown

News and Commentary

Money Life – Interview with Andrew Foster

In an interview with Money Life’s Chuck Jaffe, Andrew Foster discusses the broad-based EM earnings recovery underway and how overseas markets can help diversify long-term portfolios with non-dollar income streams. Listen

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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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Field Notes

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Field Notes

São 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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Field Notes

Mumbai: Advancements in Infrastructure

The accelerating pace of infrastructure projects in India is fueling hopes for the country’s future.

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Field Notes

Mumbai: Cashless is King

A national digital payments platform in India is changing how individuals and merchants transact.

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