Surge 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.
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?Portfolio 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 ReviewWhat 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.
MorePortfolio 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.
MorePortfolio 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.
MorePrevailing Winds
Learn MoreAre 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 MarketsThe 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 SlowdownNews and Commentary
OMFIF – How 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.
MoreMoney 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
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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