Seafarer®

Pursuing Lasting Progress in Emerging Markets

Seafarer Overseas Growth and Income Fund Portfolio Review – Third Quarter 2017

October 2017 – In light of a good quarter for the Growth and Income Fund, but a much better quarter for the index, Andrew Foster analyzes the performance of the Fund relative to its benchmark. He offers a brief discussion of three positions recently deleted from the portfolio, and four positions recently added. Next, Andrew offers his views on China; and he concludes by asserting that “decoupling” may be in store for the emerging market asset class.

Portfolio Review

Seafarer Overseas Value Fund Portfolio Review – Third Quarter 2017

October 2017 – Paul Espinosa discusses how the holdings that led performance for the Value Fund in the quarter were distinct from those that drove the MSCI Emerging Markets Index. He highlights a Fund holding that experienced a partial realization of value during the quarter, following two similar cases in the prior quarter. He concludes by reflecting on the various signs of incipient growth within Fund holdings and emerging markets overall.

Portfolio Review

Letter to Shareholders – Annual Report

May 2017 – In the Annual Report letter, Andrew Foster notes the Growth and Income Fund’s reduction in operating expenses, consistent with Seafarer’s long-term goals. Next, he discusses Seafarer’s policy on corporate governance. The policy emphasizes the use of objective data to measure each company’s impact on society and nature, and it requires that Seafarer assess the consequences for valuation and growth. Andrew explains how the policy favors engagement over divestment: Seafarer believes that acting as a responsible steward of capital means encouraging companies to enhance their standards and practices. Lastly, he declares that the policy is not a marketing gimmick, but rather an intrinsic element of the firm’s philosophy and process.

Letter to Shareholders

News and Commentary

Seafarer Overseas Growth and Income Fund Portfolio Briefing – Third Quarter 2017

Daniel Duncan and Andrew Foster discuss how the Growth and Income Fund continues to invest in Chinese companies that offer sustainable growth and current income – despite concerns about speculative conditions within certain segments of the Chinese market. Andrew provides an update on three false narratives prevalent in emerging markets, asserting that they represent the preconditions for decoupling of the asset class. View the video.

Seafarer Overseas Value Fund Portfolio Briefing – Third Quarter 2017

Daniel Duncan and Paul Espinosa discuss a Value Fund holding in the Czech Republic that experienced a partial realization of value during the quarter. Paul describes current research efforts, including on-site visits to assess operational turnarounds at portfolio holdings in Asia. View the video.