Portfolio Briefing – Fourth Quarter 2024
– Andrew Foster discusses the large impact of currency weakness on Growth and Income Fund performance. Kate Jaquet notes that consumer staples and tech holdings were a drag on performance. Andrew reports on a new position, and highlights the resilient fundamentals and rising dividends of the Fund’s holdings.
MorePortfolio Briefing – Fourth Quarter 2024
– Paul Espinosa discusses portfolio holdings that impacted Value Fund performance. Brent Clayton addresses Brazil’s volatile environment in the context of the Value strategy. He also describes how Seafarer considers a company’s capital allocation in the research process.
MoreChina 2025 Outlook
– After a recent trip to China, Nicholas Borst reports that while the Chinese economy is showing some signs of stabilization, there are still long-term structural problems holding back economic growth.
MoreSurge in Dollar Convertible Bonds From Chinese Companies
– An unprecedented surge in dollar-denominated convertible bonds issued by Chinese companies warrants the attention of global investors.
MorePortfolio Review –
– Andrew Foster reports on the movements of the EM and the Growth and Income Fund before and after China’s stimulus announcements. He explains that strong earnings performance drove Fund returns in the quarter, and the Fund’s holdings are projected to deliver robust earnings and dividend yield growth this year. He discusses Vietnam Dairy Products, a new Fund holding.
Portfolio ReviewPortfolio Review –
– 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 ReviewPrevailing Winds
Learn MoreWhy Does China Need to Recapitalize its Banks?
– A pledge to recapitalize banks in China is a tacit admission the banks are struggling to meet the demands placed on their balance sheets.
Why Does China Need to Recapitalize its Banks?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?After the Boom: What China’s Slowing Economy Means for Global Markets
– Nicholas Borst moderated a panel that examined how China’s new economic trajectory will impact global markets and the potential implications for investors.
After the Boom: What China’s Slowing Economy Means for Global MarketsNews and Commentary
The Wire China – Under Pressure: Why China is Pledging More Capital for its Banks
– In The Wire China, Seafarer’s Nicholas Borst writes that Beijing’s pledge to recapitalize large banks is intended to prevent growing pressures within the financial system from escalating to a crisis. : As of September 30, 2024, 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.
MoreWhat 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, and boosting consumption and business confidence. These announcements led to a significant move in markets, but key details are still missing.
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 is intended 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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