Letter to Shareholders – Annual Report

May 2014 – In his address to shareholders, Andrew Foster reflects on the numerous shocks that weighed upon the emerging markets during the past year. Despite such challenges, stock prices were remarkably resilient; Andrew asserts this was because equities in the developing world were (and are) inexpensive. During a year beset by many troubles, China was the most worrisome market of all. Andrew acknowledges his concerns, but encourages shareholders to peer over the “great wall of worry.” The Middle Kingdom is engaged in a sweeping set of economic reforms that have the potential to put the country on an improved path. The final section of the letter includes announcements of interest to shareholders.

Letter to Shareholders

Portfolio Review – First Quarter 2014

April 2014 – In his portfolio review, Andrew Foster discusses the substantial volatility that impacted the quarter. China, Russia and "the fragile five" all weighed on financial markets. Andrew also remarks upon the pronounced rally that took place in March; the rally was steep enough to reverse nearly all the benchmark index's losses for the quarter. In Andrew's opinion the rally was notable in that it may have signaled an underlying shift in the market. He concludes by addressing some recent shifts within the portfolio, including new positions in emerging sovereign bonds and higher exposure to Brazil.

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

Shareholder Conference Call

The Shareholder Conference Call addressed three topics: Fund Retrospective, Confronting China’s Great Wall of Worry, and a Cross Section of the Seafarer Fund. Listen to the audio replay. View the presentation.

Field Notes: Capetown

Cape Town is home to many of South Africa’s service sector industries. Some of the best companies may yet be able to capitalize on the African continent’s growth prospects.

Field Notes: Mexico City

Mexico is moving forward with long overdue reforms in multiple sectors; we believe the deeply ingrained bureaucracy of some Mexican institutions may begin to erode.