Overview

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, and fixed-income securities.

The performance data quoted represents past performance and does not guarantee future results. Future returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. View the Fund’s most recent month-end performance.

Sources: ALPS Fund Services, Inc., Bloomberg, Morningstar, Seafarer.

Portfolio holdings are subject to change.

1. Seafarer Capital Partners, LLC has agreed contractually to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waiver / Expense Reimbursements (inclusive of acquired fund fees and expenses, and exclusive of brokerage expenses, interest expenses, taxes and extraordinary expenses) to 1.05%, 1.15%, and 1.35% of the Fund’s average daily net assets for the Institutional, Investor, and Retail share classes, respectively. This agreement shall continue at least through August 31, 2025.
2. The 12b-1 Fee is included in the Gross Expense Ratio for SFGRX.
3. Shareholders who sign up for an Automatic Investment Plan can request a waiver of the Institutional Class investment minimum. View the waiver program criteria.
4. Calculated as a harmonic average of the underlying portfolio holdings.
5. Based on consensus earnings estimates for next year. Excludes securities for which consensus earnings estimates are not available.
6. © Morningstar, Inc. All rights reserved. The Active Share data is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Performance

• Total Returns
• Return Characteristics

Total Returns

As of (Prior Month)

43	NAV / Index Level ()					Annualized					Cumulative	Inception Date	Net Expense Ratio2	Gross Expense Ratio2
		YTD	1 Mo	3 Mo	1 Yr	3 Yr	5 Yr	7 Yr	10 Yr	Since Inception1	Since Inception1

As of (Prior Quarter)

43	NAV / Index Level ()					Annualized					Cumulative	Inception Date	Net Expense Ratio2	Gross Expense Ratio2
		YTD	1 Mo	3 Mo	1 Yr	3 Yr	5 Yr	7 Yr	10 Yr	Since Inception1	Since Inception1

The rates of return are hypothetical and do not represent the returns of any particular investment.

Fund performance is presented in U.S. dollar terms, with U.S. jurisdiction distributions reinvested on a gross (pre-tax) basis. For the Bloomberg and Morningstar indices, performance is calculated to reflect the reinvestment of dividends, capital gains, and other corporate actions net of foreign jurisdiction withholding taxes. The performance data quoted represents past performance and does not guarantee future results. Future returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost.

Source: ALPS Fund Services, Inc.

1. “Since Inception” returns for the Bloomberg and Morningstar indices are as of the inception date of the Fund’s Institutional and Investor share classes.
2. Seafarer Capital Partners, LLC has agreed contractually to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waiver / Expense Reimbursements (inclusive of acquired fund fees and expenses, and exclusive of brokerage expenses, interest expenses, taxes and extraordinary expenses) to 1.05%, 1.15%, and 1.35% of the Fund’s average daily net assets for the Institutional, Investor, and Retail share classes, respectively. This agreement shall continue at least through August 31, 2025.
3. Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
4. The Seafarer Funds are not sponsored, endorsed, sold, or promoted by Morningstar, Inc. Morningstar, Inc. makes no representation or warranty, express or implied, to the shareholders of the Funds or any member of the public regarding the advisability of investing in the Funds or the ability of the Morningstar Emerging Markets Net Return U.S. Dollar Index to track general equity market performance of emerging markets.
5. As of 3/1/12.  The Fund’s inception date is 2/15/12 but Morningstar data is only available as of the beginning of the following month.
6. © Morningstar, Inc. All rights reserved. The data in the Return Characteristics table is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Composition

30-Day SEC Yield: ()

The performance data quoted represents past performance and does not guarantee future results. Future returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. View the Fund’s most recent month-end performance.

Due to rounding, percentage values may not sum to 100%. Values less than 0.5% may be rounded to 0%.

1. The Growth and Income Fund selects a range of securities by employing distinct research capabilities across three investment styles.

   Style	Characteristics of Holdings
   Balanced	Moderately underappreciated growth	Typically moderately elevated current yield
   Growth	Higher growth potential	Typically lower current yield; sometimes no yield (dividend policy not yet established)
   Value	Lower growth potential	Typically higher current yield; sometimes no yield (dividends canceled under financial stress)

   Please note that the classification of a given security within one of three investment styles (Balanced, Growth, Value) is not driven by observable security characteristics (e.g., price/earnings or price/book ratios, or estimated growth rates) but rather by the specialist Seafarer research team that discovered, researched, and introduced the security to the portfolio. In other words, the provenance of the security's introduction to the portfolio determines its classification rather than any observable characteristics or descriptive statistics. A security's characteristics might change or fluctuate over time, but its “style” will typically remain fixed throughout.

2. Yield = dividend yield for common and preferred stocks and yield to maturity for bonds.
3. Based on consensus earnings estimates for next year.
4. The Fund has two distinct holdings in the stock of Samsung Electronics: a larger position in the company’s ordinary common shares and a smaller position in the company’s preferred shares. While the two securities are distinct (different prices, different dividends, etc.), if the two securities were aggregated, Samsung Electronics would comprise the second largest holding in the Fund as of 6/30/25.
5. Calculated as a harmonic average of the underlying portfolio holdings.
6. Based on consensus earnings estimates. Excludes securities for which consensus earnings estimates are not available.

Distributions

For more information on the Fund’s distribution policies, please see the “Dividends and Distributions” section of the Prospectus.

Past performance is no guarantee of future results. There is no guarantee that the Fund will pay or continue to pay distributions.

Portfolio Review

During the second quarter of 2025, the Seafarer Overseas Growth and Income Fund returned 12.36%.¹² The Fund’s benchmark indices, the Bloomberg Emerging Markets Large, Mid, and Small Cap Net Return USD Index and the Morningstar Emerging Markets Net Return USD Index, returned 10.48% and 12.45%, respectively. By way of broader comparison, the S&P 500 Index returned 10.94%.

The Fund began the quarter with a net asset value of $12.03 per share. During the quarter the Fund paid a semi-annual distribution of approximately $0.147 per share. This payment brought the cumulative distribution, as measured from the Fund’s inception, to $5.643 per share. The Fund finished the quarter with a value of $13.37 per share.³

Performance

The 90-day interval between March 31 and June 30, 2025 was the longest such period that I have experienced in my career. I have lived through – and managed, or helped to manage clients’ funds through – the Asian financial crisis in the late ‘90s; the U.S. “tech wreck” of 2000; the U.S. housing and financial market meltdown in 2008; several epidemics (SARS, Covid-19); terrible wars and devastating terrorism; and many other financial crises and corporate collapses that littered the emerging market investment landscape over the 27 years. Yet the second calendar quarter of 2025 tops them all, condensing an incredible amount of volatility, chaos, confusion – and ultimately, history – into a very short span of time.

To recapitulate recent events: two days into the quarter, the Trump administration celebrated “Liberation Day,” thereby exiting a longstanding global trade regime that the U.S. had architected largely for its own benefit – and seemingly without a clear plan as to what might come next. Poor communication and general confusion ensued; global financial markets collapsed amid the mayhem.

Next, the administration dramatically announced that all country-specific, “reciprocal” tariffs would be “paused” for 90 days, pending negotiations – save for the ultimate offender, China (it was always about China, folks!). Yet, before you could blink and without public explanation, China suddenly enjoyed an extended “truce” on tariffs, along with the potential for warm negotiations and better “reciprocal” rates than those imposed on countries historically considered the U.S.’ closest allies. The U.S.-China relationship was surprisingly open and constructive again – perhaps because Beijing had found a trump card in its command over the global supply of rare earths. Suddenly, despite the bravado, the administration seemed almost desperate to deal with the Middle Kingdom; China trade and security hawks were sidelined. Come again?

Meanwhile, devasting and tragic wars raged onwards in Europe (Russia-Ukraine) and the Middle East (Hamas-Israel), with U.S. foreign policy looming over both conflicts. Then, suddenly, war broke out on a third front, as Israel bombarded its nemesis, Iran. Within days, the U.S. joined the conflict, attempting to destroy Iran’s nuclear enrichment capabilities via heavy bombardment – and in the process, the U.S. invoked the possibility of a much larger scale war. Then, just as suddenly, the “12 Day War” was seemingly over, as the U.S. unilaterally demanded a ceasefire. For now, the conflict has abated, but whether the cessation proves lasting, only time will tell.

Following Liberation Day, markets plummeted and teetered on the edge. Then, just as suddenly, they vaulted higher. Ostensibly, they took heart that the decision to “pause” reciprocal tariffs meant that the administration was not wholly committed to the most radical elements of Liberation Day. Not only did markets rapidly recover all their losses, they surged further still. In the end, stocks had one of their best quarters in recent memory – for emerging equities, for U.S. stocks, and for stocks elsewhere across the globe. Yet all the while, the U.S. dollar collapsed. As a basket, emerging market currencies surged against the dollar to a new, multi-decade high (as did many other currencies, and also monetary surrogates, such as gold).⁴ I cannot recall a period in my career where so much happened in such a short span of time, with so many global markets gyrating wildly, yet ultimately producing substantial equity gains.

Amid this environment, the Fund paced its Bloomberg benchmark. The Fund and the index both experienced strong returns from financial services stocks during the quarter: the Fund realized about one-third of its gains from the sector, and the index just under 30%. The Fund saw all its financial stocks surge – banks, insurance companies, wealth managers, and exchanges. (For background, financial services is perennially the largest sector within the benchmark, and the same sector has constituted the largest exposure within the Fund over the past few years.) Investors seem to believe that inflation is under control in the developing world, and this will provide the potential for substantial interest rate cuts in the coming quarters, possibly begetting an expansionary financial cycle.

Yet even as both the Fund and the benchmark benefited from financial stocks, the sources of their returns also diverged in notable ways. For instance: the benchmark’s overall gain was heavily dependent on technology stocks. A small number of semiconductor stocks, propelled by spending on artificial intelligence (AI), accounted for one-third of the benchmark’s gains, whereas the Fund saw only 17% of its gains from the technology sector. By contrast, the Fund’s gains were more diversified. For example: the Fund realized about one-fifth of its gains from consumer stocks (both “discretionary” companies and “staples,” taken together), whereas the benchmark made next to nothing from its consumer stock holdings.

Still, the Fund and its benchmark converged again on one key source of performance: currencies. Currency-related gains accounted for just over one-third of the Fund’s performance, and just under one-third of the benchmark’s return for the quarter. Emerging currencies (measured as a weighted basket) rose 3.8% for the quarter, and as noted above, finished at a multi-decade peak versus the dollar.⁴ Over most of the past three decades, emerging currencies as a group have been a dependable headwind for U.S.-based investors in the developing world, steadily detracting from performance over time (with individual currencies outright self-destructing along the way). Yet something different seems to be happening now: over the past few years, that consistent headwind has in fact abated; and this year, the same basket of currencies has experienced outright gains.

Allocation

Despite such swings, the Fund undertook only one substantial change during the quarter: it added a company based in Taiwan called Delta Electronics. Delta is worth about $40 billion, and it is one of the largest vertically- and horizontally-integrated component companies in the world. Historically, it has been known for its power-related products, such as power controllers, supply systems, uninterrupted backup, and more recently, systems for electric vehicles. However, it has a wealth of other components, including fans and fine motors, industrial automation systems, communications equipment, medical devices and even LEDs. We suspect its power systems combined with its expertise in motors and fans will propel growth as AI takes hold, as Delta supplies the products that will outfit data centers and provide integrated systems capable of providing physical adaptations of AI (e.g., robotics, production automation, etc.).

Outlook

History left its mark on the second quarter, and markets gyrated wildly in response. Yet despite all that transpired, one thing stands out to me, lost amid the noise: companies in the emerging markets are producing earnings consistently again, and the earnings are growing. 2025 looks as though it will be the second consecutive year in which aggregate corporate profits are likely to experience pronounced growth. This rising profitability has occurred even as consumption has been tepid overall, and economic growth has been sluggish. Importantly, the expansion also does not appear to be the artificial and unsustainable product of fiscal stimulus by governments desperate to induce growth (as China has repeatedly demonstrated in the past). To sum it up: earnings are growing even as conditions are less than ideal, and there is no stimulus artificially “goosing” some companies’ results. This suggests – to me, at least – that the “lost decade” (during which the developing world produced essentially no profit growth) may be coming to an end.

Why are earnings growing again? From my perspective, the causes are varied, and thus it is exceedingly difficult to determine a single, clear cause. Some companies have seen margins expand, particularly as cost pressures and inflation have come under control. Many are also generating revenue growth, driven by rising volumes and bolstered by additional pricing power. Quite a few companies have expanded abroad, gaining share in export markets. The causes are many and diverse, “bottom-up” in nature, and do not easily lend themselves to “top-down thematics.”

What remains to be seen is the impact of Liberation Day, and the U.S.’ new tariff scheme. As I write, only a handful of the Fund’s portfolio companies have reported results for the second quarter; most of those only serve domestic markets, and thus they are essentially immune to tariffs. However, two companies substantially exposed to tariffs – Samsung Biologics and Hyundai Mobis – have also reported results. Interestingly, based on this exceedingly small sample, the impact appears muted so far. The former raised its revenue guidance for 2025 from a range of between 20% and 25%, to between 25% and 30%; Biologics hardly seems to be struggling with tariffs. The latter saw sales and operating earnings grow robustly, and both surpassed expectations. Meanwhile, Mobis paid about $40 million in tariff-related charges; no small number, but quite manageable in the context of its nearly $600 million in operating profits.⁵ By contrast, some of Mobis’ largest customers – Volkswagen and General Motors – incurred over $1 billion in tariff-related charges during the quarter.⁶ The ultimate result of Liberation Day is as yet unknown: the tariff regime is entirely new, and markets will continue to adjust in response. Yet the earliest data from your Fund suggests that some emerging companies enjoy sufficient clout – producing unique products and services, resulting in inelastic demand – such that they can transfer the brunt of “liberation” onto their U.S. customers – for now.

Thank you for entrusting us with your capital. We appreciate that you have selected Seafarer as your long-term investment adviser in the developing world, and we will continue to work to earn your trust in the years ahead.

The performance data quoted represents past performance and does not guarantee future results. Future returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. View the Fund’s most recent month-end performance.

The views and information discussed in this commentary are as of the date of publication, are subject to change, and may not reflect Seafarer’s current views. The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the portfolios or any securities or any sectors mentioned herein. The subject matter contained herein has been derived from several sources believed to be reliable and accurate at the time of compilation. Seafarer does not accept any liability for losses either direct or consequential caused by the use of this information.

As of June 30, 2025, securities mentioned in the portfolio review comprised the following weights in the Seafarer Overseas Growth and Income Fund: Delta Electronics, Inc (0.6%), Samsung Biologics Co., Ltd. (2.8%), and Hyundai Mobis Co., Ltd. (6.4%). The Fund did not own shares in Volkswagen or General Motors. View the Fund’s Top 10 Holdings. Holdings are subject to change.

Sources: ALPS Fund Services, Inc. and Bloomberg.

Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Neither Bloomberg nor Bloomberg’s licensors approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

The Seafarer Funds are not sponsored, endorsed, sold, or promoted by Morningstar, Inc. Morningstar, Inc. makes no representation or warranty, express or implied, to the shareholders of the Funds or any member of the public regarding the advisability of investing in the Funds or the ability of the Morningstar Emerging Markets Net Return U.S. Dollar Index to track general equity market performance of emerging markets.

1. References to the “Fund” pertain to the Fund’s Institutional share class (ticker: SIGIX). The Investor share class (ticker: SFGIX) returned 12.34% during the quarter. The Retail share class (ticker: SFGRX) returned 12.23% during the quarter. All returns are measured inclusive of Fund distributions paid (in relation to Fund performance) or dividends paid (in relation to index performance), reinvested in full (exclusive of any U.S. taxation) on the pertinent ex-date.
2. The performance data quoted represents past performance and does not guarantee future results. Future returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. View the Fund’s most recent month-end performance.
3. The Fund’s Investor share class began the quarter with a net asset value of $11.95 per share; it paid a semi-annual distribution of approximately $0.144 per share during the quarter; and it finished the quarter with a value of $13.28 per share. The Fund’s Retail share class began the quarter with a net asset value of $11.94 per share; it paid a semi-annual distribution of approximately $0.140 per share during the quarter; and it finished the quarter with a value of $13.26 per share.
4. Sourced from Bloomberg, using the Bloomberg Emerging Markets Large, Mid, and Small Cap Currency Implied Yield Index.
5. Source: Daiwa Capital Markets, “Hyundai Mobis: 2Q25 Review,” July 25, 2025.
6. Camila Domonoske, “Automakers Are Eating the Cost of Tariffs – For Now,” NPR, July 30, 2025.