Letter to Shareholders – Semi-annual Report
November 2016 – In his address to shareholders, Andrew Foster reviews recent developments with the Funds and the Adviser. He discusses the launch of the Seafarer Overseas Value Fund, noting that its strategy is focused on a traditional form of value investing – adapted for the particular challenges inherent to the emerging markets – and as such it embodies an evolution in Seafarer’s investment philosophy. Andrew also addresses the recent closure of the Growth and Income Fund to most new investors, and the intention behind the closure – to ensure that the Fund has adequate capacity to serve existing shareholders’ needs, both in the present and in the future.
Seafarer Overseas Growth and Income Fund Portfolio Review – Third Quarter 2016
October 2016 – In his portfolio review for the Seafarer Overseas Growth and Income Fund, Andrew Foster discusses the conditions that led to the recent rally in emerging market stocks. He points out that, contrary to perception, there is a fundamental basis for the rally: the "expectations gap" has nearly closed. Andrew addresses the Fund’s underweight to Chinese stocks, particularly internet companies; and he introduces a new holding to the Fund. Andrew closes with an outlook for emerging markets: he urges investors to remain open to the possibility that a fundamental recovery is underway, but he also cautions that markets might extrapolate that trend too far, too quickly.
Seafarer Overseas Value Fund Portfolio Review – Third Quarter 2016
October 2016 – In his first portfolio review, Paul Espinosa discusses the launch of the Seafarer Overseas Value Fund during a quarter of significant appreciation in emerging market equities. Paul offers a few observations on two momentous decisions around the third quarter: the United Kingdom’s June 23 decision to leave the European Union and the International Monetary Fund’s inclusion of the Chinese renminbi in the Special Drawing Rights (SDR) currency basket effective October 1, 2016. He concludes by considering the potential long-term implications for emerging markets of the renminbi’s inclusion in the SDR, and how the changes underway may yield opportunities for the Fund.
Introducing the Seafarer Overseas Value Fund
|Inception Date||May 31, 2016|
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.
Paul Espinosa, Lead Manager
Andrew Foster, Co-Manager