Seafarer®

Pursuing Lasting Progress in Emerging Markets™

Seafarer Overseas Growth and Income Fund Portfolio Review – Third Quarter 2018

Mexico City, Mexico

November 2018 – Andrew Foster notes that several Growth and Income Fund holdings rebounded during the quarter, and the Fund largely sidestepped a correction in Chinese technology stocks. He describes the impact of the Fund’s restructuring on the portfolio composition. Lastly, Andrew observes that conditions in the emerging markets are materially better than they might appear, but secondary effects from U.S. tariffs on China present a critical risk.

Portfolio Review

Seafarer Overseas Value Fund Portfolio Review – Third Quarter 2018

Guangzhou, China

October 2018 – Paul Espinosa explains how the extension of price discovery related to the trade dispute between the U.S. and China – from companies directly impacted by tariffs to companies indirectly affected – has impacted the performance of various Value Fund holdings. He also discusses the Fund’s deployment of cash during a period of pressure on the prices of emerging market equities, as well as the addition of one new portfolio holding.

Portfolio Review

Letter to Shareholders – Annual Report

Shenzhen, China

May 2018 – In the Annual Report letter, Andrew Foster states that despite his concerns over China’s increasingly centralized government control, the country’s growing economic scale and global prominence mean that it cannot be ignored in an investor’s portfolio. In his view, investors must consider a substantial, structural increase in their exposure to China – through dedicated allocation to a broad array of asset classes. Andrew also notes the Growth and Income Fund’s reduction in operating expenses, consistent with Seafarer’s long-term goals.

Letter to Shareholders

News and Commentary

Seafarer Overseas Growth and Income Fund Message to Shareholders – SIGIX to Re-open

– Effective November 19, 2018, the Growth and Income Fund’s Institutional Class (SIGIX) will re-open to new investors. The Fund’s Investor Class (SFGIX) will remain closed to most new investors. View the Message to Shareholders.

China’s Indebted Residential Property Development Sector

– As the Chinese government pledges “unwavering” support for private sector enterprises, will the highly-indebted residential property development sector receive government support?

White Paper China’s Tech Rush – How the Country’s Strategic Technology Campaign is Shaping Markets

– China’s campaign to advance its technological capabilities has the potential to transform many emerging high-tech industries through an unprecedented level of government support and cooperation with the private sector.