Seafarer®

Pursuing Lasting Progress in Emerging Markets

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.

Portfolio Review

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.

Portfolio Review

Message to Shareholders

August 31, 2016 – Seafarer announces three changes to the Seafarer Funds:

  1. Effective immediately after market closing on September 30, 2016, the Seafarer Overseas Growth and Income Fund will close to most new investors.
  2. 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.
  3. 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.

Message to Shareholders

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

Introduction to the Value Fund

Paul Espinosa defines seven sources of value in emerging markets that may represent viable opportuni