Portfolio Review – Second Quarter 2015

July 2015 – In his latest review, Andrew Foster highlights the three factors that he believes induced volatility during the second quarter: currencies, Greece and China. He goes on to discuss a regional shift in the Fund’s allocation, favoring Latin America at the expense of Asia; he also mentions some of the holdings that entered and exited the Fund. Lastly, he provides some comments on recent events in China, and encourages shareholders to eschew the financial media for a longer-term perspective, rooted in history.

Portfolio Review

Letter to Shareholders – Annual Report

May 2015 – In his address to shareholders, Andrew Foster discusses the performance of the Fund during the fiscal year, which is perhaps best described as “a tale of two halves.” He reflects on recent events within China, and urges investors to carefully observe the country’s economic transition, regardless of their views about the country’s investment merit. Next, Andrew provides data on the three-year performance record of the Fund, and places that record in some context versus the Fund’s stated investment objectives. He concludes by introducing Seafarer’s efforts to embrace new modes of communication with existing and prospective shareholders.

Letter to Shareholders

Seafarer Overseas Growth and Income Fund

Investment Objective

The Fund seeks to provide long-term capital appreciation along with some current income; it also seeks to mitigate adverse volatility in returns.

Strategy

The Fund invests primarily in the securities of companies located in developing countries. The Fund invests in several asset classes including dividend-paying common stocks, preferred stocks, convertible bonds, and fixed-income securities. More...

News and Commentary

Market Commentary – Changes to Chinese Currency Policy

Daniel Duncan and Andrew Foster discuss recent changes to the exchange rate mechanism for the Chinese Renminbi, along with some of the potential consequences for financial markets. View the video.

Value Investor Insight: Well Traveled

In an interview with Value Investor Insight, Andrew Foster discusses the Fund’s strategy and holdings, and his approach to value investing in the developing world.

Morningstar: What's Going on in China?

In an interview with Morningstar, Andrew Foster discusses the causes of recent volatility in the Chinese stock market, and what it means for China’s economy.

China’s Emergence, In Context

Andrew Foster admits that valuations on individual Chinese stocks are unsustainable and are likely to collapse. However, in his opinion, the overall growth of Chinese stock market capitalization does not constitute an ordinary bubble – the situation is far more complex. Andrew offers some data from history to place the evolution of China’s markets in context. He examines how the re-allocation of Chinese household wealth – away from property, and towards equities – might induce some of the Chinese market’s recent gyrations.

Seafarer Fund

SFGIX(Investor) $10.47 +$0.08
SIGIX(Institutional) $10.49 +$0.08

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