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. EPS Growth is not meaningful for this security.
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.
7. The pronounced EPS Growth forecast for the Consumer Discretionary sector for this year is influenced by a single constituent company. That company’s earnings have recently been negative. Consensus forecasts (produced by research arms of investment banks) suggest that the company's earnings will improve, leading to substantial percentage growth in profits for the sector; however, such consensus forecasts are subject to a very high degree of uncertainty.

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 fourth quarter of 2024, the Seafarer Overseas Value Fund returned -7.32%.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 -7.29% and -7.85%, respectively. By way of broader comparison, the S&P 500 Index returned 2.41%.

The Fund began the quarter with a net asset value of $14.55 per share. During the quarter the Fund paid a distribution of approximately $0.548 per share. This payment brought the cumulative distribution, as measured from the Fund’s inception, to $3.039 per share.³ The Fund finished the quarter with a value of $12.95 per share.⁴

During the calendar year, the Fund returned -3.34%, whereas the 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 7.12% and 7.05%, respectively.⁵

Please note: this Portfolio Review encompasses only the fourth quarter of 2024, and does not offer a thorough discussion of the entire calendar year. The Fund operates on a fiscal year that concludes April 30; as such, Seafarer offers performance review summaries for the Fund’s annual and semi-annual periods, which are published in the Fund’s Shareholder Reports in late June and December, respectively. Previous Shareholder Reports are available in the Archives.

Performance

It was a disappointing quarter for performance for both the Value Fund and the benchmark indices. Political and macroeconomic uncertainty weighed on the performance of emerging markets equities and currencies. The outcome of the U.S. presidential election raised uncertainties over U.S. trade policy and expectations for U.S. monetary policy, which led to a strengthening of the U.S. dollar compared to many emerging markets currencies. Notably, the Brazilian real and the South Korean won depreciated -11.7% and -11.1% against the U.S. dollar, respectively, over the quarter.⁶ Both countries faced additional domestic political uncertainty of their own. In Brazil, market skepticism grew that the incumbent administration would rein in spending ahead of the country’s 2026 presidential election. The country’s nominal budget deficit widened to 9.5% of gross domestic product (GDP) in November 2024 and public debt remains high.⁷⁸ In South Korea, a short-lived declaration of martial law led to the impeachment of its president, which may cloud the country’s economic trajectory going forward. The Republic of Georgia also faced political worries following its general election in October, which led to mass protests against election irregularities. Rounding out the list of global uncertainties, China largely failed to provide clarity on the scope and details of its stimulus measures, which had sent Chinese equity markets soaring in September.

The Fund’s holdings were not immune to this murky macro and political backdrop. The biggest detractors to performance came from two main areas: cyclical stocks that were more sensitive to a potential deterioration in economic demand, and the Fund’s Brazilian holdings, which, despite the currency weakness, tended to show strong operating results in the third quarter of 2024. Indeed, company-specific drivers for various Fund holdings helped offset declines elsewhere that were more “macro” in nature.

The largest detractor to the Fund’s performance in the quarter was Samsung SDI (Breakup Value and Structural Shift sources of value; the “source of value” for a Fund holding is hereafter referenced in parentheses), a South Korean battery maker. The stock appeared to suffer from weaker than expected demand for its electric vehicle (EV) batteries. Its share price decline accelerated following the U.S. election as the market assessed risks that the U.S. Inflation Reduction Act could be altered or repealed. This legislation has benefitted the EV supply chain including companies like Samsung SDI through subsidies for building U.S. manufacturing facilities and tax credits for buyers of EVs. Samsung SDI’s weak quarterly stock performance aside, it bears highlighting that the company takes a conservative approach to building capacity in line with new orders rather than building ahead of more speculative demand. Samsung SDI did not overextend itself on the upswing of the EV cycle, which may make its business more resilient than competitors in a downswing.

Other cyclical names detracting from performance in the quarter included Pacific Basin (Asset Productivity), an Asia-focused dry bulk shipping company, Siam Cement Group (Asset Productivity and Breakup Value), an industrial conglomerate operating in Southeast Asia, and Mondi (Structural Shift), a multinational paper and packaging company with a large presence in Eastern Europe. Softer demand for dry bulk commodities, petrochemicals, and paper products weighed on all three companies’ share prices. The latter two companies faced operational setbacks as well. Siam Cement delayed the commercialization of a new petrochemicals plant in Vietnam, which it plans to retrofit to provide more flexibility in the feedstock it can use. Mondi permanently shuttered a Bulgarian paper plant that had experienced a fire in September. The company determined that the investment required to repair the facility to competitiveness could be more efficiently deployed elsewhere in its business.

The Fund’s Brazilian holdings were the other major concentration of negative returns. The sharp depreciation of the Brazilian real compared to the U.S. dollar was the most acute drag on performance for these holdings. A broad-based sell-off in Brazilian stocks also may have contributed to their decline: Brazil’s Bovespa Index fell -8.75% in local currency terms in the quarter.⁶ Fear by foreign investors of further currency declines may partly explain the sell-off. Likewise, local Brazilian equity funds may be facing competition for capital from fixed income products in Brazil’s high-interest rate environment. After lowering its overnight lending rate from 11.75% in December 2023 to 10.50% in May 2024, Brazil’s central bank raised it to 12.25% by December 2024; some analysts expect an interest rate as high as 15% in 2025.⁶⁹ Against this backdrop, investors pulled a record $57 billion from Brazilian hedge funds in 2024 according to Brazil’s capital markets association, Anbima.¹⁰

Of the Fund’s Brazilian holdings, XP, Inc. (Structural Shift and Asset Productivity), an investment platform company roughly akin to Charles Schwab in its business model, fell the most in the quarter. Its pace of growth may be slower in a higher interest rate environment. However, the company’s results for the third quarter of 2024 showed greater resilience than might be suggested by the fall in its share price. The company continued to attract capital to its platform and grow its client base with low double-digit growth in its earnings per share compared to the prior year. The Fund’s other Brazilian holdings also showed resiliency in their third quarter results, which seemed to stand at odds with their share price performance. While we cannot rule out that the market is correctly pricing in darker days ahead for these stocks and the Brazilian economy, we also recognize that over short time periods fund flows and market sentiment can matter more to stock prices than corporate fundamentals.

Offsetting the losses from these holdings were a few bright spots: stocks that rose due to company-specific developments including several aimed at enhancing shareholder value. Fund holdings in the United Arab Emirates (UAE) and the Republic of Georgia stood out as some of the biggest positive contributors for the quarter. Emaar Properties (Breakup Value and Segregated Market), a UAE-based property developer and investment company, was the Fund’s strongest performer. It announced a long-term dividend policy based on the cash flows of its businesses, which will nearly double its dividend payment. Salik (Segregated Market and Management Change), a Dubai-based toll road operator, also appreciated during the quarter. It provided guidance for the revenue impact of two new toll road gates that were commissioned in the quarter, which together are expected to increase revenue in 2025 by close to 20%. The government also announced that Dubai would institute dynamic pricing for Salik’s toll gates at the end of January 2025, which may further drive revenue growth for the company.

In the Republic of Georgia, Georgia Capital (Breakup Value and Segregated Market), a conglomerate, appreciated despite the country’s noisy political backdrop. Its positive share price performance seems to relate to its capital allocation in the quarter. The company announced the divestment of its beer business and, upon receiving the first tranche of proceeds, announced an increase to its share buyback program. We see this transaction as a prudent recycling of corporate capital: the company sold a non-core asset at a premium to its balance sheet carrying value and then used part of the proceeds to buy back shares, which trade at a discount to its net asset value.

Hongkong Land (Breakup Value and Management Change), an Asian property company, also rose on corporate announcements that appear designed to unlock shareholder value. The company’s new CEO, appointed in April 2024, unveiled a strategic refocusing for the company aimed at simplifying the scope of its business, recycling capital, and enhancing shareholder returns. Hongkong Land will narrow its business focus to high-end integrated commercial properties in Hong Kong, Singapore, Shanghai and other Asian “gateway” cities with no new investment in build-to-sell properties. Likewise, it aims to recycle up to $10 billion in capital by 2035 through divestments to fund its growth with a portion allocated to dividends and share buybacks. While the company still needs to execute on this strategy, the positive market reaction highlights how corporate actions can transcend the macroeconomic backdrop for a company. This served to offset some of the losses in the Fund’s other China holdings, where waning sentiment towards the country’s stimulus announcements was a larger factor in their quarterly performance.

Allocation

The Fund made no additions of new holdings nor deletions of existing holdings during the quarter.

Outlook

Reality. The recognition of reality is the necessary first step for an individual to make progress in any endeavor. The same applies to markets and funds that endeavor to prosper by investing in corporates. Delusion is the trap that stands in the way of prosperity. How often have delusional expectations formed market bubbles that the eventual reassertion of reality has popped?

The Value Fund’s annual return of -3.34% for the calendar year of 2024 versus the Bloomberg Emerging Markets Index 7.12% return calls for the recognition of reality and the necessity of introspection. The goal of this exercise is to find answers “inside,” within the Fund’s first principles, not find explanations “outside” in the market. The idea is to humbly accept feedback from the market, while concurrently reasserting the identity of the Seafarer Overseas Value Fund within the current investment reality. It is a fine line to walk.

The following facts summarize the present investment reality:

1. The preeminence of the U.S. equity market over global equity markets during the last decade, as shown in Figure 1.
2. The recent concentration of investment returns within the Bloomberg Emerging Markets Index in the technology sector, which has increased its representation within the benchmark from 12.59% on December 31, 2022 to 15.35% on December 31, 2024.
3. The recent concentration of investment returns within the Bloomberg Emerging Markets Index in India, which has increased its representation within the benchmark from 15.11% on December 31, 2022 to 19.13% on December 31, 2024.

The foregoing three descriptors of the present investment context have profound implications, more so than may appear at first glance. It is a difficult time to invest in the emerging markets, and even more difficult to pursue a value discipline. This Outlook section will provide my view on the Value Fund’s identity within this context.

Bloomberg EM Index refers to the Bloomberg Emerging Markets Large, Mid, and Small Cap Net Return USD Index.

Bloomberg Non-U.S. DM Index refers to the Bloomberg Developed Markets ex-US Large, Mid, and Small Cap Net Return Index.

Bloomberg U.S. Index refers to the Bloomberg United States Large, Mid, and Small Cap Net Return Index.

Past performance does not guarantee future results. It is not possible to invest directly in an index.

Sources: Bloomberg, Seafarer.

The opportunity cost of investing outside the U.S. has been so acute and persistent, as illustrated in Figure 1 above, that the recent investment discourse among professional investors has shifted to questioning why they should invest in international markets at all. Thus, it is effectively elevating historical outperformance by a market above the fundamental tenet of diversification in making an assessment of future investment returns.

The logic of abandoning international markets to concentrate in the U.S. due to historical relative performance is reminiscent of passive funds buying more of a stock as the price appreciates and selling it as the price declines. In this sense, the idea of only investing in the U.S. equity market is yet another manifestation of the current investment zeitgeist, where passive funds dominate fund flows. It used to be investment wisdom that past returns are not prologue, that one should aim to buy low and sell high, and that the benefit of diversification into less correlated assets was a mathematical tenet of Investing 101. The current investment reality has yielded an investment discourse in which past wisdom appears to be a delusion. Is it?

The second and third facts listed above suggest that the opportunity cost of investing outside of the emerging markets benchmark has been very high, as has been the case with investing outside of the U.S. equity market. Furthermore, while India has taken the mantle from China as the preeminent high growth country within the emerging markets, a specific subset of technology stocks exposed to the buildout of artificial intelligence infrastructure have emerged as exponents of an extraordinary earnings growth wave. In other words, concentrating a portfolio on a specific country and handful of high-growth stocks, both of which, coincidentally, also constitute a significant proportion of the benchmark, has proven the only way to post good relative performance. Given the reality of substantial outperformance by select, large companies, no other investment strategy, philosophy, or criteria had an opportunity to outperform. There was one way, and only one way, to keep up with or beat the index. The forces driving investors to switch to passive funds are powerful in ways more subtle than many perceive.

The reality of the Seafarer Overseas Value Fund is that it invests in the emerging markets (not the U.S.), it follows a value discipline (it is not a growth strategy), and it has a high active share of 98.11% as of September 30, 2024 (it is very different from the benchmark).

I do not wish to make the above statement an excuse for the Fund’s relative underperformance. Rather, my intention is to present to existing and potential investors in the Fund my view of where the Value Fund stands within the present investment zeitgeist, as described above. The following introspection should help investors identify whether the Seafarer Overseas Value Fund meets their needs.

The first tenet of the Value Fund derives from the mandate by Seafarer’s Chief Investment Officer, Andrew Foster, that all Seafarer Funds serve the needs of investors. In the context of the Value Fund, the practical application of this mandate means that the Fund aims to deliver an absolute appreciation of its invested capital measured in U.S. dollars and in real terms, i.e. net of inflation. This absolute appreciation objective is part of the reason why the Fund prioritizes its value-related criteria over benchmark representation in its stock selection, thus resulting in a high active share. Another equally important reason for the Fund minimizing benchmark representation in its stock selection relates to the investment deficiencies of benchmarks, as described in Seafarer’s Investment Philosophy. One implication of this high active share is that there will be times when the objective of delivering absolute capital appreciation may appear to be in conflict with the short-term market exigency of “beating” the benchmark.

The second tenet of the Value Fund is that it generates returns by adhering to a value discipline as delineated in the white paper On Value in the Emerging Markets. The application of this discipline in the emerging market context, where growth strategies dominate, is relatively new. While the white paper explains how the Value Fund pursues capital appreciation in more diverse ways than simply earnings growth, it does not follow that the strategy eschews profit growth as a stock selection criteria.

This is the area where I take responsibility for missing the extraordinary earnings growth of select stocks building out the artificial intelligence infrastructure. The Value Fund may have a small allocation to the technology sector for understandable reasons, but nothing stopped the Fund from investing in artificial intelligence-related stocks, and investing in underappreciated growth is a perfectly legitimate form of value investing. The lesson from the Fund’s underperformance during the 2024 calendar year is that I need to reexamine the Fund’s appreciation for latent growth, of course, within the framework of the strategy’s value discipline.

What investors need to know is that the Value Fund’s holdings do generate meaningful earnings growth and are sharing that growth with investors in the form of growing dividends. Exploring this topic in more depth would require its own commentary. I may write more on this subject in the future. For the purposes of this Outlook section, suffice it to say that while the Value Fund does not generally seek very high growth technology stocks, a historical attribution of the Fund’s total return reveals earnings growth as a significant contributor. Often, this growth in earnings has come from operational turnarounds and profit margin improvements rather than revenue growth.

A third tenet of Seafarer’s value strategy concerns the importance it places on cumulative dividends based on the view that they are likely to constitute a significant proportion of an investor’s total return over a long time horizon, and are generally underappreciated by growth investors as a source of return. Since inception on May 31, 2016 to December 31, 2023, the Fund’s gross yield on the investment portfolio averaged 3.5% per annum, versus the Fund’s total return of 7.4% annually. In other words, dividend income accounted for almost half (47.3%) of the Fund’s total return during that time frame. Note that the dividend yield of the Bloomberg Emerging Markets Index over the same period was 2.2%. The Value Fund’s gross investment portfolio yield as of December 31, 2024 was 5.4%.¹¹

A fourth tenet of the Fund is that valuation is the primary determinant of future investment returns. This view stands in contrast to growth-oriented investors who place more emphasis on earnings growth as a driver of investment returns. The underlying principle is that an investment return is inversely proportional to the price paid for a security. The implication for an investor in the Value Fund is that returns derived from this factor tend to manifest over a time frame measured in years. It is important to emphasize this idea after living through 2024, a year when high growth yielded high investment returns during a short time span.

At a more nuanced level, this factor explains why I found it difficult to invest in artificial intelligence-related stocks once the earnings acceleration became clear and widely discussed. The valuation of these stocks was rising very rapidly, and the value strategy is very sensitive to the risks associated with high valuations. Indeed, the strategy considers valuation a fundamental risk more important than benchmark representation, which I do not consider to be a fundamental risk, even if it is a professional risk for an investor working in an index-focused market.

The Seafarer Overseas Value Fund operates on more principles than the ones discussed above. Investors wishing to understand the strategy more deeply should refer to the commentary How the Value Team Finds “Gems” in the Emerging Markets. The commentary Can Value Investing Work in Emerging Markets provides an overview of the evolution of the emerging market universe from country-based, to sector-based, to company-centric allocations, and the differentiated ways in which value manifests there relative to developed markets. Furthermore, Brent Clayton has just published the white paper Revisiting the Seven Sources of Value in the Emerging Markets, which recounts both the investment outcomes and the lessons learned during our pursuit of value in the emerging markets based on the foregoing tenets.

I hope the foregoing discussion helps investors understand where the Seafarer Overseas Value Fund fits in the current investment zeitgeist, and whether the Fund meets their needs. After a year when owning specific growth-oriented countries and stocks proved the only way to keep up with or outperform the benchmark, I will share that in my experience, successful investing is more about positioning than making specific predictions about the future. Positioning into non-U.S. dollar markets, such as the emerging markets, after the relative performance shown in Figure 1, grounded on sound investment principles, appears to me to be an eminently sensible proposition.

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 December 31, 2024, securities mentioned in the portfolio review comprised the following weights in the Seafarer Overseas Value Fund: Samsung SDI Co., Ltd. (2.2%), Pacific Basin Shipping, Ltd. (2.2%), Siam Cement PCL (1.5%), Mondi PLC (2.5%), XP, Inc. (2.3%), Emaar Properties PJSC (3.9%), Salik Co. PJSC (2.2%), Georgia Capital PLC (3.5%), and Hongkong Land Holdings, Ltd. (3.8%). The Fund did not own shares in Charles Schwab. View the Fund’s Top 10 Holdings. Holdings are subject to change.

Source: ALPS Fund Services, Inc.

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 -7.28% during the quarter. The Retail share class (ticker: SFVRX) returned -7.35% 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 inception date is May 31, 2016.
4. The Fund’s Investor Share class began the quarter with a net asset value of $14.49 per share; it paid a distribution of approximately $0.539 per share during the quarter, and it finished the quarter with a value of $12.91 per share. The Fund’s Retail share class began the quarter with a net asset value of $14.49 per share; it paid a distribution of approximately $0.538 per share during the quarter, and it finished the quarter with a value of $12.90 per share.
5. The Fund’s Investor class returned -3.41% during the calendar year. The Fund’s Retail class returned -3.97% between its inception on August 30, 2024 and the end of the calendar year.
6. Source: Bloomberg.
7. Campos, Rodrigo and Karin Strohecker. “Brazil’s Real Hits Record Low As Markets Eye Govt Spending.” Reuters, December 18, 2024.
8. “Why Brazil’s Currency Is Plunging.” The Economist, December 19, 2024.
9. Capurro, Maria Eloisa. “Brazil Analysts See Key Rate At 15% In June, More Inflation.” Bloomberg, December 23, 2024.
10. Saturnino, Felipe and Raphel Almeida Dos Santos. “Record $57 Billion Outflow Hits Battered Brazil Hedge Funds.” Bloomberg, January 16, 2025.
11. Sources: ALPS Fund Services, Inc.; Bloomberg; Seafarer.