Message to Shareholders
August 31, 2016 – Seafarer announces three changes to the Seafarer Funds:
- Effective immediately after market closing on September 30, 2016, the Seafarer Overseas Growth and Income Fund will close to most new investors.
- The minimum initial investment for the Seafarer Funds’ Institutional Class is reduced from $100,000 to $25,000 for all accounts, effective as of August 31, 2016.
- Seafarer Capital Partners, the Funds’ Adviser, is reducing its management fee on Seafarer Funds net assets in excess of $1.5 billion, effective as of August 31, 2016.
For more information about these changes, please see the Funds’ Prospectus.
Seafarer Overseas Growth and Income Fund Portfolio Review – Second Quarter 2016
July 2016 – In his latest review of the Fund, Andrew Foster notes that the emerging markets exhibited a degree of stability that has been lacking during the past several years, even as macro events upset other markets worldwide. Andrew also discusses new holdings in the Fund, as well as one notable exit. He concludes by urging investors to re-examine their presumptions regarding the stability of Europe and the outlook for emerging market currencies.
Introducing the Seafarer Overseas Value Fund
| Investor Class | SFVLX |
| Institutional Class | SIVLX |
| Inception Date | May 31, 2016 |
Strategy
The Fund seeks to produce a minimum long-term rate of return by investing in developing country securities priced at a discount to their intrinsic value.
Portfolio Management
Paul Espinosa, Lead Manager
Andrew Foster, Co-Manager
Letter to Shareholders – Annual Report
May 2016 – In the Annual Report letter, Andrew Foster reviews the Fund’s performance over the past year. Andrew explains how in the first half of the fiscal year, a “mini-bubble” in Chinese stocks popped, and dragged the Fund lower. However, in the second half of the year, a politically driven rally in Brazil’s currency and shares offset some of the Fund’s losses. Yet Andrew notes with frustration that, despite the second half recovery, the Fund finished the year with material losses, though its performance since inception is positive. Andrew concludes by reflecting on the future of Seafarer Capital Partners, touching upon the firm’s plans for scale, strategies, team and culture.
News and Commentary
Field Notes: Beijing
– Challenges facing corporate management teams in China and Hong Kong reveal the irrelevance of macroeconomic figures for investors in the country’s firms. View the Field Notes.
MoneyLife: Interview with Andrew Foster
– In an interview with MoneyLife’s Chuck Jaffe, Andrew Foster describes a structural change that has begun to transform the investment landscape within the developing world: the rise of “value.” Andrew suggests that the prerequisites for realizing a “value” strategy in developing markets are materializing, slowly but steadily, with improvements in accounting and legal standards, the proliferation of change-of-control investors, and the development of local currency debt markets. Listen to the interview.
Seafarer Overseas Growth and Income Fund Barron’s: The Three Best Emerging Markets Funds
– Barron’s offers its views on three emerging market mutual funds, including the Seafarer Overseas Growth and Income Fund. View the article.