Seafarer®

Pursuing Lasting Progress in Emerging Markets®

Portfolio Reviews

Seafarer Overseas Growth and Income Fund

Portfolio Review

Chongqing, China

Andrew Foster explains that amid sharp volatility in EM stocks, the Growth and Income Fund’s performance was relatively stable and more diversified than that of the benchmark. He reports that the Fund’s decision to exit Taiwan Semiconductor was driven by the company’s outsized growth in capital expenditures. Additionally, Andrew urges caution for investors navigating an EM asset class that is bifurcated between nations mired in the pandemic, and those that have moved beyond it.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review

Prague, Czech Republic

Paul Espinosa describes two broad categories of stocks that explain the Value Fund’s quarterly performance: holdings that appreciated due to stock-specific developments, and holdings that rose as the market re-assessed the pandemic’s financial impact on the companies. Paul discusses examples in each category, including Moneta Money Bank in the Czech Republic.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review

Seoul, South Korea

Andrew Foster reports that a rapid rise in consensus expectations for EM corporate profits lifted stocks higher in the quarter. He suggests that the market rewarded some Growth and Income Fund holdings for producing durable earnings growth amid the pandemic. Lastly, in light of the uncertain path to “normalization” in EM, high prices on stocks generally, and a pronounced bubble in large swathes (but not all) of China, Andrew advises investors to tread cautiously in the EM asset class.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review

Ho Chi Minh City, Vietnam

Paul Espinosa explains that Value Fund performance was led by companies that had sold off earlier in 2020 due to the pandemic, while EM benchmark performance was led by technology companies headquartered in China, Taiwan, and South Korea. Paul also introduces a new Fund holding, a Southeast Asia-focused conglomerate operating in the real estate, auto, and food retail industries.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Third Quarter 2020

New Taipei City, Taiwan

Andrew Foster explains that while gains in the EM benchmark were concentrated in Chinese shares, the Growth and Income Fund’s performance was far more geographically diversified. He discusses how the search for better-priced shares led the Fund away from the intersection of East Asia and technology, and toward Brazil. Lastly, Andrew asserts that a surplus of liquidity and confidence has inflated a bubble in China’s stock markets.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – Third Quarter 2020

Belo Horizonte, Brazil

Paul Espinosa describes how two Value Fund holdings realized value embedded in their balance sheets. He reviews portfolio allocation changes, including two new holdings in Brazil. Lastly, Paul explains why he expects a return to profit and valuation – not company size and revenue growth – as drivers of sustainable investment returns.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Second Quarter 2020

Budapest, Hungary

Andrew Foster explains that stock markets throughout the EM marched higher, with Chinese stocks dominating the surge, despite poor and uncertain corporate performance. He remains concerned that stocks in the developing world – notably China – are poised for weakness. Andrew also reports that the Growth and Income Fund’s holdings are likely, in aggregate, to produce modest earnings growth in 2020, even as profits are expected to contract for the broader EM.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – Second Quarter 2020

Macau, China

Paul Espinosa describes how the Value Fund is adding “gems” – large companies with above-average returns on capital and high caliber management – at attractive valuation levels. The additions are increasing the liquidity and scalability of the Fund.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – First Quarter 2020

Busan, South Korea

Andrew Foster and Paul Espinosa explain that stocks with stable cash flow, substantial accumulated cash, and attractive dividend yields were not defensive in March’s crash. The only evident haven within EM was among high growth (but often loss-making) technology and software stocks. Andrew concludes by noting that the stocks held by the Growth and Income Fund are attractively priced at present, and the underlying companies enjoy healthy balance sheets and resilient prospects.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – First Quarter 2020

Dubai, UAE

Paul Espinosa discusses how Value Fund holdings were impacted by the concurrent demand and supply shocks caused by the COVID-19 pandemic. He explains that the Fund exited several positions in order to concentrate the portfolio in higher conviction and higher liquidity securities. Lastly, Paul expresses concern that the developed market policy response to COVID-19 impairs future productivity, and notes that Seafarer searches for EM companies that improve productivity at every downturn.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Fourth Quarter 2019

Wuhan, China

Andrew Foster and Paul Espinosa attribute performance of the Growth and Income Fund and the benchmark index to a year-end surge in large-cap growth stocks, propelled by news of the U.S.-China “Phase 1” trade deal. Andrew provides an update on the transition in the Fund’s growth component holdings. He also discusses how the outbreak of the COVID-19 virus is testing the credibility of President Xi’s administration, and how the work stoppage in China might trigger a payments crisis.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – Fourth Quarter 2019

Incheon, South Korea

Paul Espinosa explains how Value Fund performance was derived from a balance between return of capital to shareholders and changing growth expectations, while the benchmark index’s return was driven by a narrow set of technology companies. Paul discusses a new Fund holding, a South Korea-based provider of marketing and communication services, and why he believes the company is gradually unlocking value embedded in its balance sheet.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Third Quarter 2019

Taipei, Taiwan

Andrew Foster and Paul Espinosa explain that the earnings of the Growth and Income Fund’s holdings proved steadier than most other emerging market companies, and this led the holdings’ shares to be stable in a falling market. While Andrew and Paul believe the sharp deterioration in 2019 earnings growth expectations is exaggerated, they also note that there may be some “air pockets” in the Chinese stock market in the months and quarters ahead. Lastly, Andrew addresses updates to Seafarer’s team.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – Third Quarter 2019

Rio de Janeiro, Brazil

Paul Espinosa describes positive contributions from Value Fund holdings that realized their value potential, which helped to offset negative contributions from holdings affected by the Hong Kong protests and U.S.-China trade dispute. He contends that the Fund’s diversification across seven sources of value proved more effective than geographic diversification. Lastly, Paul illustrates how, at a time of uncertainty in the markets, the Value Fund remains focused on individual companies and their operations.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Second Quarter 2019

Hanoi, Vietnam

Andrew Foster, Paul Espinosa, and Inbok Song discuss Growth and Income Fund holdings that impacted performance in the quarter.  The managers attribute the recent volatility in emerging market equities to two primary factors: first, rapidly shifting sentiments regarding the U.S.-China trade dispute; and second, the unstable estimates of professional analysts regarding the forecast growth in corporate profits in the developing world for 2019.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – Second Quarter 2019

Tbilisi, Georgia

Paul Espinosa attributes the Value Fund’s positive performance to stock-specific factors and highlights two instances of event-driven value realization within the portfolio’s holdings. Amid slowing global growth expectations, Paul notes that the Value strategy aims to generate investment returns from a diversity of factors. While one of the strategy’s seven sources of value is sensitive to changes in growth expectations, the other six sources do not relate directly to growth.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – First Quarter 2019

Jakarta, Indonesia

Andrew Foster, Paul Espinosa, and Inbok Song discuss Growth and Income Fund holdings that made notable contributions to performance. They introduce several new Fund holdings, including a retail bank in Indonesia known for its micro-lending franchise. The managers assert that while concerns over trade and politics continue to weigh on emerging markets, the assessment from the ground up is not bad: 2018 finished with decent earnings growth, China has gradually re-initiated market-based reforms, and currencies are exhibiting independence from U.S. monetary policy.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – First Quarter 2019

Prague, Czech Republic

Paul Espinosa discusses two holdings emblematic of the Value Fund’s strategy, noting that they lie “off the beaten path” of the emerging markets benchmark and generate value for shareholders in ways that extend beyond growth expectations. He introduces a new Fund holding, a bank in the Czech Republic. Lastly, Paul cites earnings growth and China’s economic policy direction as reasons for his positive outlook on the emerging markets.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Fourth Quarter 2018

Guangzhou, China

With the Growth and Income Fund’s restructuring complete, Andrew Foster, Paul Espinosa, and Inbok Song discuss the Core, Value, and Growth components of the Fund, respectively. Andrew explains that 2018 bore witness to the decline that followed a “false dawn” in emerging markets, with China at the epicenter of the downturn. He sees signs of an improved outlook in emerging markets in 2019. Still, China’s fortunes remain crucial to the future of the asset class.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – Fourth Quarter 2018

Doha, Qatar

Paul Espinosa explains that as asset prices declined in emerging markets during the quarter, the Value Fund holdings’ low valuations and ordinary income did not provide as much capital stability as he expected. He examines several Fund holdings, including Crédito Real and China Foods, that impacted performance. Paul emphasizes continued focus on the operational and financial progress of the Fund’s holdings despite short-term macro pressures on equity valuations.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Third Quarter 2018

Mexico City, Mexico

Andrew Foster notes that several Growth and Income Fund holdings rebounded during the quarter, and the Fund largely sidestepped a correction in Chinese technology stocks. He describes the impact of the Fund’s restructuring on the portfolio composition. Lastly, Andrew observes that conditions in the emerging markets are materially better than they might appear, but secondary effects from U.S. tariffs on China present a critical risk.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – Third Quarter 2018

Guangzhou, China

Paul Espinosa explains how the extension of price discovery related to the trade dispute between the U.S. and China – from companies directly impacted by tariffs to companies indirectly affected – has impacted the performance of various Value Fund holdings. He also discusses the Fund’s deployment of cash during a period of pressure on the prices of emerging market equities, as well as the addition of one new portfolio holding.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Second Quarter 2018

Great Wall of China

Andrew Foster discusses the two primary factors responsible for the decline in emerging markets during the quarter, as well as the holdings that weighed on the Growth and Income Fund’s performance. He explains that China’s rise as a global hegemon is structurally changing the risk-return profile of the emerging markets. Andrew describes how Seafarer’s approach to balancing the trade-off between growth and income in the Fund is evolving in response.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – First Quarter 2018

Budapest, Hungary

Andrew Foster notes that though he steered the Growth and Income Fund toward a defensive construction in anticipation of volatility, the Fund failed to dampen the market’s gyrations. Andrew explains that stock-specific events were to blame; he discusses events at one of the Fund’s larger positions, Richter Gedeon, in depth. He concludes with brief observations on the gap between expectations and reality, and the prospect of decoupling.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – First Quarter 2018

Beijing, China

Paul Espinosa discusses the Value Fund’s performance against the backdrop of large price swings in the underlying holdings and volatile market conditions. He also examines the impact of changing U.S.-China trade relations on Fund holdings and on emerging markets investing more broadly.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Fourth Quarter 2017

Andrew Foster notes that the recent gains in the EM benchmark index are without much historical precedent, and could imply widespread speculation. Next, he discusses recent changes to the Growth and Income Fund’s holdings, and his attempts to make the Fund’s tactical position more defensive at the margin. Andrew concludes by recounting some of the speculative behavior that he has observed among both investors and companies, and warns that investors should re-assess their tolerances for risk, and prepare for near-term volatility.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Third Quarter 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

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
Seafarer Overseas Growth and Income Fund

Portfolio Review – Second Quarter 2017

Andrew Foster discusses the EM benchmark’s extensive holdings in the Chinese internet sector, and how those holdings have fueled the index’s recent gains. Next, he cites four reasons why he has chosen to omit Chinese internet stocks from the Growth and Income Fund, despite their superficial appeal. Andrew also compares the relative merits of the Fund’s largest holding (Infosys) against the benchmark’s largest holding (Tencent). From there, he reviews Richter Gedeon, a new holding in the Fund. Andrew closes by reflecting on the nature of the earnings recovery now underway in developing markets, noting that while it is broad-based by sector, it is a “two-speed” recovery that has so far favored large companies over small ones.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – Second Quarter 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 two instances of value realization within the portfolio’s holdings, and describes his thought process concerning a portfolio holding impacted by geopolitical risk. He concludes by reflecting on the unusual confluence of three key events during the quarter and the resulting implications for the future of emerging markets.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – First Quarter 2017

Andrew Foster remarks on the three factors that he believes spurred the EM benchmark index’s recent surge. He notes China’s impact on the quarter, especially the outsized contribution of the country’s internet stocks. Andrew explains the Growth and Income Fund’s decision to quit Turkey; to enter the Chinese A-share market; and to establish a new liquidity management program. He concludes by warning investors to remain on guard with respect to China, and to harbor realistic expectations about prospects for profit growth.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Fourth Quarter 2016

Andrew Foster discusses the Growth and Income Fund’s performance in the wake of the U.S. presidential election, and he notes several changes in the Fund’s underlying portfolio construction. He concludes by outlining six important characteristics of the emerging markets asset class that he thinks every investor should know, particularly those who might understandably doubt its continued relevance.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Third Quarter 2016

Andrew Foster discusses the conditions that led to the recent rally in emerging market stocks. He points out that, contrary to perception, there is a fundamental basis for the rally: the "expectations gap" has nearly closed. Andrew addresses the Growth and Income Fund’s underweight to Chinese stocks, particularly internet companies; and he introduces a new holding to the Fund. Andrew closes with an outlook for emerging markets: he urges investors to remain open to the possibility that a fundamental recovery is underway, but he also cautions that markets might extrapolate that trend too far, too quickly.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – Third Quarter 2016

Paul Espinosa discusses the launch of the Seafarer Overseas Value Fund during a quarter of significant appreciation in emerging market equities. Paul offers a few observations on two momentous decisions around the third quarter: the United Kingdom’s June 23 decision to leave the European Union and the International Monetary Fund’s inclusion of the Chinese renminbi in the Special Drawing Rights (SDR) currency basket effective October 1, 2016. He concludes by considering the potential long-term implications for emerging markets of the renminbi’s inclusion in the SDR, and how the changes underway may yield opportunities for the Fund.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Second Quarter 2016

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 Growth and Income 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
Seafarer Overseas Growth and Income Fund

Portfolio Review – First Quarter 2016

Andrew Foster discusses the volatile “V-shaped” performance of the market. While the Growth and Income Fund and the benchmark index both produced gains for the quarter, they did so only after China’s markets first dragged both sharply lower, and after Brazil subsequently pushed both higher. Next, Andrew addresses the rationale behind the Fund’s allocation to Brazil, and how it is changing in light of current events. He concludes by discussing the twin forces that are most likely to shape emerging markets over the next 12 to 24 months: falling interest rates versus sluggish growth.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Fourth Quarter 2015

Andrew Foster discusses a shift in the Growth and Income Fund’s composition, away from the Asian region, and toward larger stocks at the expense of smaller ones. Next, he speculates as to the cause behind the collapse in China’s capital markets. While he does not offer a definitive explanation, he does suggest that circumstances may be serious enough to warrant attention from investors. He concludes by citing two reasons for optimism, despite China: first, stocks in the emerging markets are cheap enough to be attractive; and second, interest rates in the developing world are diverging from those in the U.S. in a manner that may be conducive to growth.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Third Quarter 2015

Andrew Foster examines the sharp loss sustained by the Growth and Income Fund during the third quarter. While the Fund outperformed its benchmark, Andrew highlights how emerging market currencies and Chinese shares played outsized roles in dragging the Fund lower. He also notes that despite the currency-induced volatility, he has done little to alter the Fund’s construction in recent months, except for the addition of a corporate bond from Mexico. Andrew concludes with a discussion of how currency depreciation can create dislocations between price and value – especially for companies with long-lived, high-quality assets capable of producing U.S. dollar-denominated revenues.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Second Quarter 2015

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 Growth and Income 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
Seafarer Overseas Growth and Income Fund

Portfolio Review – First Quarter 2015

Andrew Foster discusses SPARC, a position that made an outsized contribution to the Growth and Income Fund’s return during the first quarter. Next, he reflects on the Fund’s historical performance record. He notes the Fund’s relatively conservative strategy was well-suited for the difficult conditions that prevailed in the past three years, but he cautions that a change in those conditions – driven by a resumption of earnings growth – might render the Fund’s strategy less effective. After discussing some changes in the Fund’s construction, he concedes that he has been wrong to suggest that currency risk might moderate – at least so far.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Fourth Quarter 2014

Andrew Foster discusses the substantial impact that currencies had on the Growth and Income Fund and the emerging markets throughout the year. He highlights three countries that had an outsized impact on performance – Turkey, India and China. Andrew also addresses the Fund’s greater concentration and the rationale behind it. Lastly, he suggests that investors focus on four key ideas in the year ahead: differentiation, currencies, crisis, and renewed growth, now available at a reasonable price.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Third Quarter 2014

Andrew Foster discusses the recent volatility in markets and highlights specific Growth and Income Fund holdings that had an impact on performance. He also analyzes changes in the Fund’s construct stemming from the addition of six new holdings and the deletion of six older ones. Andrew concludes by discussing a critical change that is subtly but surely re-shaping the financial markets of the developing world – and along with it, Seafarer’s investment philosophy: the rise of “value.”

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Second Quarter 2014

Andrew Foster discusses the Growth and Income Fund’s recent performance and highlights a shift in the portfolio’s construct – a minor “tilt” that favors growth potential over defensiveness. He concludes with a brief outlook focused on the recently improved performance of Chinese equities. Have Chinese equities shaken off their slump because they are cheap, and economic conditions in China are not as bad as previously believed? Or has their recovery been orchestrated so as to facilitate the issuance of substantial quantities of stock? Andrew believes both explanations hold merit – and he intends for the Fund to remain invested in China, even if forthcoming issuance might unsettle markets.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – First Quarter 2014

Andrew Foster discusses the substantial volatility that impacted the quarter. China, Russia and "the fragile five" all weighed on financial markets. Andrew also remarks upon the pronounced rally that took place in March; the rally was steep enough to reverse nearly all the benchmark index’s losses for the quarter. In Andrew’s opinion the rally was notable in that it may have signaled an underlying shift in the market. He concludes by addressing some recent shifts within the Growth and Income Fund, including new positions in emerging sovereign bonds and higher exposure to Brazil.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Fourth Quarter 2013

Andrew Foster discusses the various challenges facing emerging markets: political unrest; currency volatility; and economic uncertainty in China. He states that the moniker “fragile five” (a label appended to five countries deemed susceptible to currency depreciation) is superficial, but he also notes that panic has been on the rise. Andrew asserts that the primary risk facing emerging markets stems from China, and the possibility that a default there will have cascading consequences. Nevertheless, he believes the Growth and Income Fund’s strategy is reasonably well prepared for financial distress, and that valuations are favorable.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Third Quarter 2013

Andrew Foster discusses the Growth and Income Fund’s performance amid the wild volatility in emerging markets during the third quarter. Andrew highlights how currencies exacerbated that volatility, and he offers some thoughts on what to expect from currencies going forward. Andrew also addresses China, which performed well during the quarter, to the apparent surprise of many investors. As ever, China remains challenging, offering up both promise and peril: a “boom-let” is underway in certain service industries; however, escalating liquidity crunches – as evidenced by growing stockpiles of “accounts receivable” on balance sheets – suggest that financial distress could intensify within the country.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Second Quarter 2013

Andrew Foster examines the recent, sharp drop in emerging markets, including a discussion of the role of currencies in the decline. He addresses the Growth and Income Fund’s performance, including its weakest spot, Latin America, where losses were concentrated in two commodity sector holdings. Andrew notes that the Fund’s Asia holdings outperformed substantially, in part due to new holdings in Vietnam. He concludes by taking a look at the BRICs phenomenon with a particular emphasis on Brazil, which he thinks deserves investors’ attention after the recent downturn.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – First Quarter 2013

Andrew Foster offers an explanation for the weak performance of emerging markets. He acknowledges that, despite the Growth and Income Fund’s gains, it was a bruising quarter for several holdings in the portfolio. He reflects upon a number of dramatic shifts underway in global markets, including the structural slump in commodities. Andrew admits to a divided view of Japan: he recognizes that the prescription (aggressive monetary policy) is the correct treatment for what ails the country (deflation), but he is worried that there is a dangerous, “go-for-broke” quality to the curative. Lastly, he notes the pendulum of sentiment has swung away from China, providing new opportunities for the Fund to invest there.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Fourth Quarter 2012

Andrew Foster addresses the recent gains in emerging market equities, noting that they occurred largely without evidence of material improvement in economic or financial conditions. He offers some context for the holdings that contributed the most to the Growth and Income Fund’s gains during the quarter, and he briefly touches upon a few small shifts in the portfolio’s construction. He concludes by noting that the Fund’s exposure to Vietnam is likely to grow slowly but steadily in the future, and he sounds a note of concern (but not alarm) about equity valuations within the developing world.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Third Quarter 2012

Andrew Foster describes shifts in the Growth and Income Fund’s composition, as well as holdings that had a significant impact on Fund performance. The shift toward Eastern Europe was driven in large part by attractive valuations in Poland; the portfolio’s holdings there appear to exhibit growth and valuation characteristics that are essential to the Fund’s strategy.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Second Quarter 2012

Andrew Foster discusses the sharp decline in the EM index, which he attributes to concerns over economic growth in the Eurozone and China.  Amid the volatile environment, the Growth and Income Fund declined, but less so than the benchmark index.  The Fund’s exposure to Asia and the technology sector caused the bulk of the Fund’s decline.  Lastly, Andrew describes why the Fund added new holdings in Eastern Europe and Latin America.

Portfolio Review
Seafarer Overseas Growth and Income Fund

Portfolio Review – Feb. 15 to Apr. 30, 2012

Andrew Foster discusses his outlook for the Growth and Income Fund, his views on China’s slowing growth and Europe’s woes, valuations on emerging market stocks, the importance of perspective and persistence amid today’s frenetic markets, and his goals for Seafarer and the Fund.

Portfolio Review