Pursuing Lasting Progress in Emerging Markets

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

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.

Portfolio Review

Introducing the Seafarer Overseas Value Fund

Investor Class SFVLX
Institutional Class SIVLX
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.

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 opportunities for long-term investments.

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.

Letter to Shareholders

News and Commentary

Seafarer Funds Portfolio Briefing – Third Quarter 2016

In the third quarter portfolio briefing, Andrew Foster discusses the purpose behind the recently-launched Seafarer Overseas Value Fund. Paul Espinosa describes the Value Fund’s implementation since launch, relating it to the seven sources of value in emerging markets that he defined in a recent white paper. Andrew concludes by addressing performance during the quarter, and how the Seafarer Overseas Growth and Income Fund is faring amid potential changes in the market environment. View the video and the presentation.

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.