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Limited ER reduction for SFGIX/SIGIX

edited January 2013 in Fund Discussions

Seafarer Capital Partners, LLC (“Seafarer”), the Fund’s investment adviser, has voluntarily agreed to waive a portion of its management fee and waive and/or reimburse certain other Fund fees or expenses. This voluntary agreement . . . continues until August 31, 2013.

[The following language was added to the prospectus]:

In addition to the Adviser’s agreement to contractually waive and/or reimburse fees or expenses as described above, the Adviser has voluntarily agreed to [reduce management fees] to 0.75% . . . . Further, after giving effect to this voluntary agreement to waive a portion of its management fee, the Adviser has also agreed to voluntarily . . . limit total annual fund operating expenses (excluding acquired fund fees and expenses, brokerage expenses, interest expenses, taxes and extraordinary expenses) to 1.40% and 1.25% of . . . for the Investor and Institutional share classes, respectively. The Adviser intends to continue these voluntary arrangements through at least August 31, 2013 . . . , at which point they may be extended further. However, the Adviser may reduce or terminate these voluntary arrangements at any time without notice.


  • Ya, that just came in the mail to me. Something looming after Aug. 31st???
  • edited January 2013
    Thanks fundalarm.

    That's great news for this young fund. In fact, I love just about everything about this shop, but I just tolerate its EP. With SFGIX starting to find its groove, perhaps it will attract more attention...the lower the EP the better. Currently, M* shows SFGIX at $32M AUM versus $4B for MASCX.

    Here's how they compare...getting close:


    Here is link to Mr. Foster's recent portfolio review:

    He is hosting a conference call open to public Thursday, January 24 – 4:15pm ET / 1:15pm PT. He will discuss outlook for 2013 and portfolio holdings. Registration on his site:
  • fundalarm: what does all that horrible verbage MEAN? From Charles' response, it is favorable?
  • Reply to @MaxBialystock: Hi, Max.

    This is a supplement to a prospectus whose rollover date is August 31. I'm guessing that the extension simply carries them through to the new prospectus.

    That said, I have a phone call with Andrew set for 11 CT today (Friday), and I'll ask.

    More soon,

  • Reply to @Charles: For what interest it holds, Andrew also celebrate the first anniversary of Seafarer's launch (2/15/12) by having a conference call with us, Tuesday, February 19th at 7 Eastern. Planning that call is the main subject of today's chat with him.

  • Reply to @MaxBialystock: yes, Max.:)
  • Talked with Andrew. He's pretty fired up about the February conference call.

    With regards to the expense reduction, he notes that they have a contractual expense reduction in place. This is a voluntary reduction on top of that. The contractual reduction rolls over (gets reviewed and renewed by the board) in the August 31st prospectus. The board preferred that they run the voluntary reduction on the same cycle, hence the date.

    Andrew says that both in terms of performance and investor attention, the fund's first year exceeded their expectations. One of his core commitments to his investors is to run the fund with their interest foremost. Since they can, at this point, afford to return a bit more money to investors than they'd originally anticipated, they've chosen to.

    For what it's worth,

  • Thanks for the news, both of you.
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