White Paper – On Value in the Emerging Markets

November 2015 – Paul Espinosa examines the universe of value stocks that lie within the emerging markets. Rather than rely on basic quantitative measures to distinguish “cheap” stocks from “expensive” ones, Paul defines seven distinct sources of value that might represent viable opportunities for long-term, value-oriented investments. He applies these seven definitions to the securities universe within the emerging markets and discovers a subset worth $1.4 trillion. Paul then examines each of the seven categories in detail, studying the challenges and opportunities within each. He discusses where value “traps” might lie – and how best to avoid them. Paul concludes by noting the opportunity for value in the developing world is large, diverse, and seemingly untapped by the global investment industry.

On Value in the Emerging Markets

Letter to Shareholders – Semi-annual Report

November 2015 – In his latest address to shareholders, Andrew Foster discusses the challenging environment that impacted both the Fund and the benchmark index over the summer. He cites two factors that weighed on performance: currency losses (led by the Brazilian Real) and a sharp correction in Chinese stocks. Andrew then addresses an important, albeit contentious topic: whether the emerging market asset class is “dead,” as suggested by some analysts. He reviews the main criticisms that surround the category, and then offers his own view on the future of the asset class. Andrew concludes by discussing some of the latest developments at Seafarer Capital Partners, the firm that advises the Fund.

Letter to Shareholders

Portfolio Review – Third Quarter 2015

October 2015 – In his latest portfolio review, Andrew Foster examines the sharp loss sustained by the Fund during the third quarter. While the Fund outperformed its benchmark, Andrew highlights how emerging market currencies and Chinese shares played outsized roles in dragging the Fund lower. He also notes that despite the currency-induced volatility, he has done little to alter the Fund’s construction in recent months, except for the addition of a corporate bond from Mexico. Andrew concludes with a discussion of how currency depreciation can create dislocations between price and value – especially for companies with long-lived, high-quality assets capable of producing U.S. dollar-denominated revenues.

Portfolio Review

Seafarer Overseas Growth and Income Fund

Investment Objective

The Fund seeks to provide long-term capital appreciation along with some current income; it also seeks to mitigate adverse volatility in returns.

Strategy

The Fund invests primarily in the securities of companies located in developing countries. The Fund invests in several asset classes including dividend-paying common stocks, preferred stocks, convertible bonds, and fixed-income securities. More...

News and Commentary

Quarterly Briefing – Fourth Quarter 2015

Daniel Duncan and Andrew Foster discuss the performance of the emerging markets and the Fund for the quarter. Daniel probes the influence of politics on markets; Andrew asserts that the political woes weighing on the developing world are mainly the symptom of economic weakness rather than the cause of it. Andrew concludes by touching upon the Fund’s current positioning, and noting that within the emerging markets, large capitalization stocks (above US $10 billion in size) generally offer the best relative value. View the video.

Fund Strategy The Role of Preferred Equities, Convertible Bonds, and Fixed Income

Kate Jaquet discusses how non-common stock holdings allow the Fund to optimize the tradeoff between prospective growth and current income, and can help the Fund to achieve its investment objectives. View the video.

Fund Strategy Overview of Risk Management Practices

Daniel Duncan, Andrew Foster, and Kate Jaquet discuss Seafarer’s approach to managing risk and volatility in the Fund. They address three frameworks that Seafarer employs to understand and measure risk in the portfolio. View the video.

Seafarer Fund

SFGIX(Investor) $9.89 –$0.01
SIGIX(Institutional) $9.91 –$0.01

Shareholder Updates

Fund Resources