Overview

Investment Objective

The Fund seeks to provide long-term capital appreciation.

Strategy

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

The Fund’s portfolio is comprised of securities identified through a bottom-up security selection process based on fundamental research. The Fund seeks to produce a minimum long-term rate of return by investing in securities priced at a discount to their intrinsic value.

Seafarer Overseas Value Fund

A Value Approach to Emerging Markets

Paul Espinosa describes the structural changes that have made it possible to realize a value strategy in emerging markets. He explains how the strategy’s research process is based on Seafarer’s framework of seven distinct sources of value in emerging markets.

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Gross expense ratio: ¹

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 SFVRX.
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

Gross expense ratio: ²

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

Gross expense ratio: ²

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 5/31/16.
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. Yield = dividend yield for common and preferred stocks and yield to maturity for bonds.
2. Based on consensus earnings estimates for next year.
3. Consensus estimates for earnings and EPS growth are not available for this security.
4. As of February 6, 2025, “Lion Finance Group PLC” is the new name of the company formerly known as “Bank of Georgia Group PLC.”
5. The high price to book value ratio is due to the company’s losses in recent years, which have reduced its common equity.
6. Calculated as a harmonic average of the underlying portfolio holdings.
7. 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 Value Fund returned 15.16%.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 $13.59 per share. It paid no distributions during the quarter and finished the period with a value of $15.65 per share.³

Performance

It was a quarter rife with drama and uncertainty. The second quarter began with the U.S. administration’s so called “Liberation Day” tariffs announced on April 2, which sent global markets into a tailspin. It ended with a ceasefire to a 12-day military conflict between Israel and Iran. In the intervening period, markets grappled with the likelihood, magnitude, and potential impacts of the proposed tariffs, with the calculus seeming to change by the week. Questions around the sustainability of U.S. fiscal deficits, the trajectory of inflation and monetary policy, and even the future independence of the U.S. Federal Reserve added further complexity to the mix.

Against this chaotic backdrop, the Value Fund and its emerging markets benchmarks rose sharply in the quarter. A 90-day pause on many of the tariffs announced on April 9 marked an intra-quarter nadir. The Fund and the Bloomberg Emerging Markets benchmark fell -7.43% and -8.55%, respectively, from March 31 to April 8. They surged thereafter, rising 24.40% and 20.80%, respectively, from April 8 to June 30. As the Fund and the benchmark ended the quarter well ahead of their pre-Liberation Day levels, there was more to the rally than simply a downward assessment of the likely magnitude of tariffs or their negative impact on the emerging markets.

The depreciation of the U.S. dollar relative to many emerging markets currencies in the second quarter explained part of the strong return for both the Fund and its benchmarks. Emerging currencies, as represented in the Bloomberg Emerging Markets Large, Mid, and Small Cap Currency Implied Yield Index, rose 3.81% in the second quarter. Of note, the Brazilian real appreciated 5%, the Mexican peso and South Korean won each increased close to 9%, and the Czech koruna rose nearly 10% compared to the U.S. dollar over the quarter. Dampening the impact of these currency tailwinds across the Fund were its sizeable weightings to pegged and managed currencies including the Hong Kong dollar, Chinese renminbi, and the Arab Emirates dirham.

While the Fund saw positive performance from a vast majority of holdings, the biggest contributions to positive return were more concentrated. Nearly two-thirds of the Fund’s positive return came from just 11 holdings. Seven of these stocks were up over 30% in U.S. dollar terms, accounting for about half of the Fund’s positive performance over the quarter. From a “source of value” standpoint, holdings targeting the Breakup Value and Asset Productivity sources of value were the two biggest concentrations of positive contribution to the quarter’s return.

Top contributing Breakup Value positions in the quarter were conglomerates and real estate-related stocks. Value-enhancing capital allocation appeared to be a key driver of returns for these holdings. Georgia Capital (Breakup Value and Segregated Market sources of value; the “source of value” for a Fund holding is hereafter referenced in parentheses), a conglomerate in the Republic of Georgia, was the Fund’s top positive contributor to performance. It continued to execute its strategy of using proceeds from asset divestments to buy back its own shares, which trade at a deep discount to its net asset value. The company announced the sale of its remaining 20% stake in a water utility in the quarter, which may provide additional cash resources for share repurchases. Similar to Georgia Capital, Hongkong Land (Breakup Value and Management Change), an owner and operator of commercial real estate in Hong Kong, mainland China, and Singapore, also took action to narrow the discount between its stock value and its net asset value. It announced the divestment of floors in one of its office buildings in Hong Kong for approximately USD 800 million and allocated a portion of the proceeds for share buybacks.

Speculation over prospective improvements in capital allocation seemed to propel the shares of Samsung C&T (Breakup Value) in the quarter. A South Korean construction and engineering company and the de facto holding company for the Samsung Group, most of the company’s value resides on its balance sheet with ownership stakes in listed companies including Samsung Electronics and Samsung Biologics. While it represented a lower portfolio weighting at the start of the quarter than each of the aforementioned Breakup Value holdings, Samsung C&T notched the highest total return of any holding in the quarter, up 50.38% in U.S. dollar terms. This increase appeared to reflect expectations that Korea’s new president, Lee Jae Myung, elected on June 3, 2025, will enact legislative reforms to improve corporate governance and shareholder returns of listed Korean companies. Indeed, the country passed new legislation in early July 2025 to expand the fiduciary duty of board members of listed companies to protect the interests of minority shareholders.

For the Asset Productivity source of value, financial sector stocks led the gains for the quarter. The largest positive contributions came from Lion Finance (Asset Productivity and Segregated Market), one of the two largest banks in the Republic of Georgia; XP, Inc. (Structural Shift and Asset Productivity), a Brazilian investment platform company roughly akin to Charles Schwab in its business model; Credicorp (Asset Productivity), Peru’s largest bank; Itaú Unibanco (Asset Productivity), Brazil’s largest bank; and Moneta Money Bank (Asset Productivity), a bank in the Czech Republic. While their geographies and economic backdrops vary, each of these financial institutions share a commonality from a bottom-up perspective. All are generating high returns on equity and sharing the profits earned with shareholders through dividends and, for several, share buybacks. With trailing shareholder yields – the sum of dividend yields and share buyback yields – in the high single digits for these stocks to start the quarter, the market seemed to take notice of the value on offer.

The negative side of the ledger was much shorter. The Fund saw single-digit negative quarterly returns in four stocks: Wilmar International, Shangri-La, Arcos Dorados, and WH Group. Wilmar International (Asset Productivity and Breakup Value), an edible oils and agricultural commodities company, and Shangri-La (Breakup Value and Asset Productivity), a hotel owner and operator in Asia, both have faced a tepid revenue growth environment, which may have weighed on the shares. Arcos Dorados (Asset Productivity), a McDonald’s master franchise owner and operator in Latin America, reported a weaker-than-expected set of first quarter results driven by a deterioration in its profit margins, in part, from rising beef prices. WH Group (Management Change and Breakup Value), a Chinese pork processor and owner of Smithfield Foods in the U.S., gave up some of its gains from the prior quarter in the broader market sell-off in early April before the Fund exited the position.

Allocation

During the second quarter of 2025, the Fund exited two positions.

The Fund completed its exit of Salik (Segregated Market and Management Change), a Dubai-based toll road operator, in early April. As only a small residual balance in the position remained at the end of the first quarter of 2025 (representing 0.03% of the Fund’s net assets), this exit was discussed in the Fund’s first quarter 2025 portfolio review. In short, the stock performed well since it was added to the Fund in 2023 and its valuation fully captured realistic expectations for the business.

As noted above, the Fund also exited WH Group. One of the Fund’s first purchases after launching in 2016, WH Group was held for nearly nine years. The first seven years disappointed with the stock generating a single-digit negative total return in USD terms from first purchase.⁴ The company faced a range of shorter-term challenges over this period: African Swine Flu in China, the global Covid pandemic, flare-ups in the U.S.-China trade relationship, and contentious succession planning within the controlling family. However, the value we saw in WH Group was clear. At several points in the Fund’s holding period WH Group traded below the valuation of its 70% stake in its listed mainland China subsidiary, suggesting shareholders of WH Group were essentially getting its U.S. subsidiary, Smithfield Foods, for free. Our patience paid off over the next 22 months with the stock rising over 80% in USD terms. WH Group’s decision to list Smithfield Foods on the Nasdaq Global Select Market, which began trading on January 28, 2025, proved key to unlocking the value overlooked on WH Group’s balance sheet.

Outlook

It is a confusing macro backdrop for investors. As I write this portfolio review in late July, the August 1, 2025 deadline for higher U.S. tariffs on its trading partners looms. Each week seems to add to the cacophony of macro headlines and uncertainty. Signs of progress towards a trade deal with one country come just as another takes a step backwards. Investors, companies, and policymakers alike must wrestle with differentiating the tariff figures used as “negotiating tactics” from what may be a more rational long-term tariff level, if rationality can even be assumed. Meanwhile, legal challenges to the constitutionality of the sweeping tariffs remain to be decided by the U.S. court system. Will the U.S. drive a hard bargain on tariffs? Will anything even come of them? The world seems on edge waiting to see how it will play out.

Equity markets, however, appear less on edge. With the S&P 500 Index and the Fund’s emerging market benchmarks at or near all-time highs, markets seem to be pricing in a bull case scenario. Perhaps the markets have correctly assessed a muted impact to listed equities from the trade war. Or perhaps markets are blissfully passing through the eye of the storm with turbulence lurking ahead.

Rather than speculate on the likely outcomes of the trade war (I am as perplexed as most), it may be more productive to examine the portfolio’s direct exposure to U.S. tariffs and explore how it is positioned relative to some of the key second-order variables at play.

The first-order impacts of the proposed U.S. tariffs on the Fund appear muted. The Fund has limited exposure to companies exporting products to the U.S. that stand to see a direct fundamental impact on their business as a result of the tariff negotiations. Two companies with partial direct exposure to U.S. tariffs in this respect are Tata Motors (Asset Productivity and Breakup Value) and Samsung SDI (Breakup Value and Structural Shift). These holdings collectively represented less than 3% of the portfolio as of June 30, 2025. Tata Motors, an India-based automobile manufacturer, derived 21% of its sales from the U.S. in its fiscal year ended March 31, 2025 via its Jaguar Land Rover subsidiary. Its U.S. exports are manufactured in the United Kingdom and Slovakia, which at the time of this writing appear to face 10% and 27.5% tariff rates, respectively. Samsung SDI, a South Korean battery maker, derived 34% of its sales from North America in 2024. While some of these sales are direct exports, the company’s overall U.S. tariff exposure is less than this given its U.S.-based EV battery production facilities. Samsung SDI is building additional U.S. EV manufacturing plants with General Motors and Stellantis, which could benefit from tariffs on competitors manufacturing outside of the U.S.

The second-order impacts are more complex, unpredictable, and wide-ranging. Big changes to global trading relationships could have knock-on effects to geopolitics or global capital flows, both of which could have material positive or negative impacts on the Fund and the broader emerging markets asset class. They are also the most difficult to predict. Two variables that seem more likely to be in flux based on the outcome of tariff negotiations are currency exchange rates and economic growth. I address how the Fund is exposed to each below.

The foregoing may help shed color on the lack of major changes to the Fund in the quarter. While we remain on edge, closely following the ever-changing headlines surrounding the tariffs and contemplating how they may impact the Fund, we are not changing our approach or letting speculation drive our process. The value and resiliency we see in the fundamentals of the companies in the Fund gives us some comfort should the recent smooth sailing yield way to choppier waters ahead.

Thank you for entrusting us with your capital. We are honored to serve as your investment adviser in the emerging markets.

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 Value Fund: Georgia Capital PLC (4.7%), Lion Finance Group PLC (3.9%), Hongkong Land Holdings, Ltd. (3.8%), Moneta Money Bank AS (3.3%), XP, Inc. (3.1%), Shangri-La Asia, Ltd. (2.9%), Itaú Unibanco Holding SA (2.8%), Credicorp, Ltd. (2.8%), Samsung C&T Corp. (2.5%), Samsung C&T Corp. Pfd. (0.1%), Wilmar International, Ltd. (2.4%), Ambev SA (2.3%), Samsung SDI Co., Ltd. (2.0%), Petronet LNG, Ltd. (1.9%), Coca-Cola Femsa SAB de CV (1.9%), Arcos Dorados Holdings, Inc (1.8%), and Tata Motors, Ltd. (0.7%). The Fund did not own shares in Smithfield Foods, Salik, Samsung Electronics, Samsung Biologics, McDonald’s, General Motors, or Stellantis. 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: SIVLX). The Investor share class (ticker: SFVLX) returned 15.07% during the quarter. The Retail share class (ticker: SFVRX) returned 15.00% 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 $13.54 per share; and it finished the quarter with a value of $15.58 per share. The Fund’s Retail share class began the quarter with a net asset value of $13.53 per share; and it finished the quarter with a value of $15.56 per share.
4. Source: Bloomberg. Based on the total return of the stock from its close on June 3, 2016 to June 2, 2023 assuming dividends were received but not reinvested.
5. Source: Bloomberg. Based on the Bloomberg definition of “country of risk” for each stock, which Bloomberg determines using a standardized methodology.
6. Source: Bloomberg. Based on the Bloomberg definition of “country of risk” for each stock, which Bloomberg determines through a standardized methodology. By comparison, using the same “country of risk” definitions as a proxy for primary economic exposure to a currency, the Fund’s Bloomberg Emerging Markets benchmark had a weighting of 7% to U.S. dollar pegged currencies including the Hong Kong dollar, the UAE dirham, the Qatari riyal, the Saudi riyal and the Kuwaiti dinar and a 35% weighting to the Chinese yuan as of June 30, 2025.
7. Jeon, Sharon, Ricardo Reyes-Heroles, Abhi Uppal, Eva Van Leemput, and David Yu. "Trade-offs of Higher U.S. Tariffs: GDP, Revenues, and the Trade Deficit,” FEDS Notes, Board of Governors of the Federal Reserve System, July 7, 2025.