Ashmore Funds
PROSPECTUS
Ashmore
Emerging Markets Total Return Fund
(Class
A: EMKAX; Class C: EMKCX; Institutional Class: EMKIX)
Ashmore
Emerging Markets Local Currency Bond Fund
(Class
A: ELBAX; Class C: ELBCX; Institutional Class: ELBIX)
Ashmore
Emerging Markets Corporate Income Fund
(Class
A: ECDAX; Class C: ECDCX; Institutional Class: EMCIX)
Ashmore
Emerging Markets Short Duration Fund
(Class
A: ESFAX; Class C: ESFCX; Institutional Class: ESFIX)
Ashmore
Emerging Markets Active Equity Fund
(Class
A: EMQAX; Class C: EMQCX; Institutional Class: EMQIX)
Ashmore
Emerging Markets Small-Cap Equity Fund
(Class
A: ESSAX; Class C: ESSCX; Institutional Class: ESCIX)
Ashmore
Emerging Markets Frontier Equity Fund
(Class
A: EFEAX; Class C: EFECX; Institutional Class: EFEIX)
Ashmore
Emerging Markets Equity Fund
(Class
A: EMEAX; Class C: EMECX; Institutional Class: EMFIX)
Ashmore
Emerging Markets Equity ESG Fund
(Class
A: ESAGX; Class C: ESCGX; Institutional Class: ESIGX)
Ashmore
Emerging Markets Low Duration Fund
(formerly,
Ashmore Emerging Markets Short Duration Select Fund)
(Class
A: ESDAX; Class C: ESDCX; Institutional Class: ESDIX)
Ashmore
Emerging Markets Debt Fund
(formerly,
Ashmore Emerging Markets Investment Grade Income Fund
(Class
A: IGAEX; Class C: IGCEX; Institutional Class: IGIEX)
Ashmore
Emerging Markets Corporate Income ESG Fund
(Class
A: ECAEX; Class C: ECCEX; Institutional Class: ECIEX)
CLASS
A, CLASS C and INSTITUTIONAL CLASS SHARES
This
Prospectus includes information you should know about the Ashmore Funds (the
“Trust”, and each series thereunder a “Fund,” collectively, the “Funds”) before
you invest. Please read it carefully. Neither
the U.S. Securities and Exchange Commission (the “SEC”) nor any state securities
commission has approved or disapproved of these securities or determined if this
Prospectus is accurate or complete. Any representation to the contrary is a
criminal offense.
TABLE
OF CONTENTS
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Summary
Information About The Funds |
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1 |
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15 |
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22 |
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29 |
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36 |
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43 |
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50 |
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57 |
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65 |
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73 |
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80 |
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88 |
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118 |
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132 |
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132 |
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137 |
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138 |
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143 |
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148 |
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153 |
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154 |
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155 |
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157 |
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160 |
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196 |
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196 |
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196 |
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197 |
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198 |
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A-1 |
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SUMMARY
INFORMATION ABOUT THE FUNDS
Ashmore
Emerging Markets Total Return Fund
Investment
Objective
The
Fund seeks to maximize total return.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell Class A, Class C or Institutional Class Shares of the
Fund. You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below. You may
qualify for sales charge discounts on a purchase of Class A Shares if you
and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of
the Funds. More information about these and other discounts is
available in the “Classes of Shares” section beginning on page 138 of the
Fund’s prospectus or from your financial intermediary. Investors investing in
the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries.
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Shareholder
Fees |
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(fees paid directly from
your investment) |
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Class A Shares |
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Class C Shares |
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Institutional Class Shares |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
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4.00% |
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None |
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None |
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Maximum
Deferred Sales Charge (CDSC) (Load)(1) (as a percentage
of the lower of original purchase price or NAV) |
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1.00% |
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1.00% |
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None |
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Redemption
Fee |
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None |
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None |
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None |
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Annual Fund
Operating Expenses |
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(Expenses that you pay each
year as a percentage of the value of your
investment) |
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Class A Shares |
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Class C Shares |
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Institutional Class Shares |
Management
Fees |
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1.00% |
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1.00% |
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1.00% |
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Distribution
and/or Service (12b-1) Fees |
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0.25% |
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1.00% |
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None |
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Other
Expenses |
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0.22% |
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0.23% |
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0.23% |
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Total
Annual Fund Operating Expenses |
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1.47% |
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2.23% |
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1.23% |
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Fee
Waiver and/or Expense Reimbursement(2) |
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(0.20)% |
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(0.21)% |
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(0.21)% |
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Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
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1.27% |
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2.02% |
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1.02% |
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(1) |
For Class A Shares, the CDSC is imposed only where
shares are purchased without a front-end sales charge and subsequently
redeemed within eighteen months of purchase. For Class C Shares, the
CDSC is imposed only on shares redeemed within one year of
purchase. |
(2) |
Ashmore
Investment Advisors Limited has contractually agreed to waive its fees or
reimburse the Fund for other expenses to the extent that Total Annual Fund
Operating Expenses (other than Acquired Fund Fees and Expenses, interest
expense, taxes, extraordinary expenses, custodial credits, transfer agency
credits and expense offset arrangements) for the Fund’s Class A
Shares exceed 1.27%, for the Fund’s Class C Shares exceed 2.02% and
for the Fund’s Institutional Class Shares exceed 1.02% of the Fund’s
average daily net assets attributable to the share class (the “Expense
Limitation Agreement”). The expense limitation arrangement may be
terminated before February 28, 2025 only
by the Board of Trustees. Under the Expense Limitation Agreement, the
Investment Manager may recoup any amounts waived or reimbursed for 36
months following the end of the month when the waiver or reimbursement
occurred, provided total expenses, including such recoupment, do not
exceed the applicable annual expense limit, and further that expenses may
be recouped only if and to the extent that the expense ratio at the time
of such recoupment is less than the annual expense limit in place at the
time such expenses were waived or
reimbursed. |
1
Examples
These
Examples are intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Examples assume that you invest
$10,000 in the noted class of shares of the Fund for the time periods indicated,
your investment has a 5% return each year and the Fund’s operating expenses
remain the same. Class C Shares automatically convert to Class A
Shares after eight years. The expense example for Class C Shares for the
ten-year period reflects the conversion to Class A Shares. The Examples are
based, for the first year, on Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement and, for all other periods, on Total Annual
Fund Operating Expenses. Although your actual costs may be higher or lower, the
Examples show what your costs would be based on these
assumptions.
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Example: Assuming you redeem your shares at the end of each
period |
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Example:
Assuming you do not redeem your
shares |
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1 year |
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3 years |
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5 years |
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10 years |
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1 year |
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3 years |
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5 years |
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10 years |
Class A
Shares |
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$ |
524 |
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$ |
827 |
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$ |
1,152 |
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$ |
2,071 |
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$ |
524 |
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$ |
827 |
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$ |
1,152 |
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$ |
2,071 |
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Class C
Shares |
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$ |
305 |
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$ |
677 |
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$ |
1,176 |
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$ |
2,356 |
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$ |
205 |
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$ |
677 |
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$ |
1,176 |
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$ |
2,356 |
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1 year |
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3 years |
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5 years |
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10 years |
Institutional
Class Shares (whether or not shares are redeemed) |
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$ |
104 |
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$ |
370 |
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$ |
655 |
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$ |
1,470 |
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Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, adversely affect the
Fund’s investment performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 56% of the average value of its
portfolio.
Principal
Investment Strategies
The Fund seeks to achieve its objective by
investing principally in debt instruments of Sovereign, Quasi-Sovereign, and
Corporate issuers (as defined below), which may be denominated in any currency,
including the local currency of the issuer. Sovereigns are governments of Emerging Market
Countries (as defined below). For these purposes, Sovereigns may include EM
Supra-Nationals. Quasi-Sovereigns are governmental entities, agencies and other
issuers that are more than 50% owned, directly or indirectly, by a Sovereign, or
whose obligations are guaranteed by a Sovereign. For these purposes,
governmental entities include a province, a city and local or regional
governmental bodies. A Corporate issuer is any issuer other than a Sovereign or
Quasi-Sovereign that is located in an Emerging Market Country or an issuer
deriving at least 50% of its revenues or profits from goods produced or sold,
investments made, or services performed in one or more Emerging Market Countries
or that has at least 50% of its assets in one or more Emerging Market Countries.
Emerging Market Country means any country included by the International Monetary
Fund in its list of Emerging and Developing Economies, any country which is
considered a low-income, lower-middle-income, or upper-middle-income economy by
the World Bank, and all countries represented in any widely-recognized index of
emerging market securities (e.g., the relevant indices in the family of J.P.
Morgan Corporate Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets
Index, J.P. Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond
Index—Emerging Markets and MSCI Emerging and Frontier Markets Index).
The
Fund may invest in debt instruments of all types and denominated in any
currency, whether subordinated or unsubordinated, secured or unsecured, quoted
or unquoted, rated or unrated, or floating rate or fixed rate. These may
include, without limitation, bonds, debentures, notes, convertible securities,
commercial paper, loans and related assignments and participations, trade
claims, bank certificates of deposit, fixed time deposits, bankers’ acceptances,
and money market instruments, including money market funds denominated in U.S.
dollars or other currencies. The Fund may invest in companies of any market
capitalization, and its allocations among small-, mid- and large-capitalization
issuers may vary significantly over
time.
The
Fund will normally invest 25% to 75% of its net assets in investments
denominated in or providing investment exposure to local currencies of Emerging
Market Countries. Any portion of the Fund’s investment exposure to local
currencies of Emerging Market Countries that has been hedged into a Hard
Currency (i.e., the U.S. dollar or any
currency of a nation in the G-7) will not count as currency of an Emerging
Market Country for this purpose. The Fund may invest in obligations of
any
2
credit
quality, including obligations that are in default or that are subject to
insolvency proceedings. The Fund may invest without limitation in debt
securities that are rated below investment grade or that are unrated but judged
by the Investment Manager to be of comparable quality (i.e., “junk
bonds”).
The
Fund normally seeks to maintain a weighted average portfolio duration of between
2 and 10 years.
The
Fund may utilize various derivative instruments and related strategies,
including exclusively, to gain exposure to one or more issuers or other assets.
The Fund may utilize derivatives of all types and may invest in, without
limitation, call and put options (including options on futures contracts),
futures and forward contracts, including contracts related to currencies, and
swap agreements (including total return, interest rate, and credit default
swaps) and other related instruments with respect to individual bonds and other
securities, indices and baskets of securities, interest rates and currencies,
structured notes, and credit-linked notes as part of its principal investment
strategies. The Fund expects to primarily use derivatives for hedging or
efficient portfolio management purposes, but may also use them to increase the
Fund’s investment exposure beyond that which it could achieve by investing
directly in more conventional securities. The Fund may also invest directly in
foreign currencies for hedging or other investment
purposes.
The
Fund may invest in convertible debt instruments and equity securities related to
convertible securities or warrants the Fund holds or has held, as well as
acquire and hold equity securities, including warrants, resulting from debt
conversion or restructuring. The Fund may invest in the securities of other
investment companies, including exchange-traded funds (“ETFs”) and other pooled
vehicles, if the investment companies invest principally in the types of
investments in which the Fund may invest directly. The Fund may also lend its
portfolio securities, borrow money for investment and other purposes, and enter
into repurchase and reverse repurchase agreement
transactions.
The
Fund will not invest more than 25% of its net assets in issuers in any one
Emerging Market Country. The Fund will not invest more than 35% of its net
assets in securities of Corporate issuers having their principal place of
business in Emerging Market Countries. Also, the Fund will not invest more than
25% of its net assets in investments denominated in a single currency other than
the U.S. dollar or the Euro without seeking to hedge into U.S. dollars the
portion of the Fund’s exposure to that currency (i.e., non-U.S. dollar, non-Euro) that exceeds
25% of the Fund’s net assets.
In
managing the Fund, the Investment Manager’s fixed income and asset allocation
investment committee (the “Investment Committee”), together with the relevant
portfolio managers (together with the Investment Committee, the “Investment
Team”), employs a largely top-down, active and value-driven investment approach
in analyzing emerging markets and currencies. The Fund’s investment approach
includes an emphasis on the influence of politics (both local and
international). The Investment Team combines this top-down approach with an
analytically-driven, bottom-up approach to making purchase and sale decisions
with respect to individual corporate credits. The Investment Team seeks
opportunities in selected emerging markets that it believes may benefit from
significant positive changes, such as political and economic reforms, increases
in capital inflows and investor confidence, and seeks to invest in issuers in
government and Corporate sectors it expects will benefit from such developments
and associated economic development and growth. The Investment Team’s investment
process focuses on global and emerging markets fundamentals and considers
factors such as liquidity and risk management at the macro level. The Investment
Team utilizes the Investment Manager’s broad and current knowledge of important
investment areas in various Emerging Market Countries gained, in part, through
research, experience, long-standing relationships with reliable local firms and,
where appropriate, visits by its investment personnel to countries in their
respective regions of responsibility.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in securities and instruments issued by
Sovereign, Quasi-Sovereign, or Corporate issuers of Emerging Market Countries
and Emerging Market currency-related derivative instruments. The Fund’s
investments in derivatives and other synthetic instruments that have economic
characteristics similar to these investments will be counted toward satisfaction
of the Fund’s 80% investment policy.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the bid/asked spread on purchases and sales of
securities,
3
when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes for you if your Fund shares are held in a taxable account. These costs,
which are not reflected in Annual Fund Operating Expenses or in the Examples,
may adversely affect the Fund’s investment
performance.
Principal
Risks
It is possible
to lose money on an investment in the Fund.The Fund will
be affected by the investment decisions, techniques and risk analyses of the
Fund’s Investment Manager and there is no guarantee that the Fund will achieve
its investment objective. The principal risks of investing in the Fund, which
could adversely affect its net asset value, yield and total return are (in
alphabetical order after the first five risks):
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Emerging Markets Risk: Compared to
foreign developed markets, investing in emerging markets may involve
heightened volatility, greater political, regulatory, legal and economic
uncertainties, less liquidity, dependence on particular commodities or
international aid, high levels of inflation, greater custody risk, and
certain special risks associated with smaller
companies; |
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Foreign Investment Risk: Investments in
foreign (non-U.S.) issuers, directly or through use of depositary
receipts, may be negatively affected by adverse political, regulatory,
economic, market or other developments affecting issuers located in
foreign countries, currency exchange rates or regulations, or foreign
withholding or other taxes, and investing in foreign securities may result
in the Fund experiencing more rapid and extreme changes in value than a
fund that invests exclusively in securities of U.S.
issuers; |
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Currency Risk: Foreign (non-U.S.)
currencies may decline in value relative to the U.S. dollar and adversely
affect the value of the Fund’s investments in foreign currencies,
securities denominated in foreign currencies or derivatives that provide
exposure to foreign currencies; |
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Geographic Focus Risk: The Fund may be
particularly susceptible to economic, political or regulatory events
affecting particular countries or regions to the extent the Fund focuses
its investments in such countries or
regions; |
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Credit Risk: The Fund could lose money if
the issuer or counterparty is unable or unwilling to meet its financial
obligations, and the lack of ability, or perceived lack of ability, of the
issuer to make timely payments of interest and/or principal will
negatively affect the value of the security or
instrument; |
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Bank Loans Risk: The Fund may invest in
bank loans and participations. Risks associated with these obligations
include, but are not limited to, risks involving the enforceability of
security interests and loan transactions, inadequate collateral,
liabilities relating to collateral securing obligations, and the liquidity
of these loans. The market for bank loans may be subject to irregular
trading activity, wide bid/ask spreads and extended trade settlement
periods. The loans in which the Fund invests may be rated below investment
grade; |
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Counterparty and Third Party Risk:
Transactions involving a counterparty to a derivative contract,
repurchase agreement, reverse repurchase agreement, or other financial
instrument, or to a third party responsible for servicing the instrument,
are subject to the credit risk of the counterparty or third party, and to
the counterparty’s or third party’s ability to perform in accordance with
the terms of the transaction; |
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Currency Management Strategies Risk:
Currency management strategies, including the use of forward
currency contracts and other derivatives, may substantially change the
Fund’s exposure to currencies and currency exchange rates and could result
in losses to the Fund if currencies do not perform as the Investment
Manager anticipates; |
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Derivatives Risk: Investing in derivative
instruments may be considered risky and involves correlation,
documentation, interest rate, leverage, liquidity, market, management,
interest rate and valuation risks and the risk of losing more than the
principal amount invested; |
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High Yield Risk: Below investment grade
securities and unrated securities of similar credit quality (commonly
known as “high yield” securities or “junk bonds”) are subject to greater
levels of credit and liquidity risks than higher quality securities, and
are considered predominantly speculative with respect to the issuer’s
continuing ability to make principal and interest
payments; |
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Inflation/Deflation Risk: The value of
the Fund’s investments may decline as inflation reduces the value of
money; conversely, if deflation reduces prices throughout the economy
there may be an adverse effect on the creditworthiness of issuers in whose
securities the Fund invests and an increase in the likelihood of issuer
defaults; |
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Interest Rate Risk: Debt and other
securities and instruments may decline in value due to changes in interest
rates, the extended duration of principal payments at below-market
interest rates, and/or prepayment. The value of most fixed income
securities will generally decline in response to increases in interest
rates; |
4
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Investments in Pooled Vehicles Risk:
Investing in another investment company or pooled vehicle subjects
the Fund to that company’s risks, and, in general, to a pro rata portion
of that company’s fees and expenses in addition to fees and expenses
charged by the Fund; |
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Issuer Risk: The value of a security or
instrument may decline for reasons directly related to the issuer, such as
management performance, financial leverage and reduced demand for the
issuer’s goods or services; |
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• |
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Large Shareholder Risk: Shareholders of
the Fund, such as institutional investors, may disrupt the efficient
management of the Fund’s operations by purchasing or redeeming Fund shares
in large amounts; |
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Leverage Risk: Use of leverage, including
through borrowings, derivatives and reverse repurchase agreements, will
increase volatility of the Fund’s investment portfolio and magnify the
Fund’s investment losses or
gains; |
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Liquidity Risk: Illiquid securities and
other instruments may be highly volatile, difficult to value, and
difficult to sell or close out at favorable prices or
times; |
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Management Risk: The Fund’s investment
return depends on the ability of the Investment Manager to manage the
Fund’s portfolio successfully; there is a risk that the Investment Manager
may be incorrect in its analysis of economic trends, currencies,
countries, industries, companies, and the relative attractiveness of asset
classes or other matters; |
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Market Risk: The value of securities and
instruments owned by the Fund may rise and fall, sometimes rapidly or
unpredictably, due to factors affecting securities markets generally or
particular industries or geographic areas, including terrorism, war,
natural disasters and the spread of infectious disease including epidemics
or pandemics; |
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Over-the-Counter Risk: Securities and
derivatives traded in over-the-counter markets may trade less frequently
and in limited volumes and thus exhibit more volatility and liquidity
risk, and the prices paid by the Fund in over-the-counter transactions may
include an undisclosed dealer
markup; |
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Portfolio Turnover Risk: If the Fund
frequently trades its securities, this will increase transaction costs,
may result in taxable capital gains, and may reduce the Fund’s investment
performance; |
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• |
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Small and Mid-Sized Companies Risk:
Investments in securities issued by small and mid-sized companies
tend to be more vulnerable to adverse developments than larger companies,
and may present increased volatility and liquidity risk;
and |
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Valuation Risk: Certain securities and
instruments may be difficult to value, and to the extent the Fund sells a
security or instrument at a price lower than that used to value the
security, its net asset value will be adversely
affected. |
An investment in the Fund is not a bank deposit and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Performance
Information
The bar chart and performance table that follow
provide some indication of the risks of investing in the Fund by showing changes
in the Fund’s Institutional Class Shares’ performance from year to year and
comparing the Fund’s average annual total returns with those of broad-based
market indexes. The bar chart and the information immediately
below it show only the performance of the Fund’s Institutional
Class Shares. Although Class A and Class C Shares would have
similar annual returns (because all the Fund’s shares represent interests in the
same portfolio of securities), Class A and Class C performance would
be lower than Institutional Class performance because of the lower expenses
paid by Institutional Class Shares of the Fund. The bar
chart does not reflect any sales loads applicable to Class A or
Class C Shares. The performance shown in the bar chart
would be lower if it reflected sales charges applicable to Class A and
Class C Shares. Performance for Class A and Class C
Shares in the Average Annual Total Returns table reflects the impact of sales
charges. You may obtain the Fund’s updated performance
information by visiting the website at www.ashmoregroup.com or by calling
866-876-8294. As
with all mutual funds, the Fund’s past performance (before and after taxes) does
not predict how the Fund will perform in the
future.
5
Calendar
Year Total Return—Institutional Class
Ashmore
Emerging Markets Total Return Fund % Total Return
The
best calendar
quarter return during the period shown above was 14.94% in the second quarter of 2020; the
worst was
(21.79)% in the first quarter of
2020.
Average
Annual Total Return
(For the period ended December 31, 2023)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1-Year |
|
5-Year |
|
10-Year |
Institutional
Class |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
11.58% |
| |
|
|
-2.28% |
| |
|
|
0.11% |
|
Return
after taxes on distributions |
|
|
|
8.99% |
| |
|
|
-3.75% |
| |
|
|
-1.58% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
|
6.74% |
| |
|
|
-2.26% |
| |
|
|
-0.57% |
|
JP
Morgan EMBI GD Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
11.09% |
| |
|
|
1.67% |
| |
|
|
3.22% |
|
JP
Morgan ELMI+ Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
8.44% |
| |
|
|
0.87% |
| |
|
|
0.01% |
|
JP
Morgan GBI-EM GD Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
12.70% |
| |
|
|
1.14% |
| |
|
|
0.09% |
|
50/25/25
Composite Index(1)
(reflects no deduction for fees, expenses, or taxes) |
|
|
|
10.86% |
| |
|
|
1.40% |
| |
|
|
1.69% |
|
Class A |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
6.90% |
| |
|
|
-3.28% |
| |
|
|
-0.52% |
(2) |
JP
Morgan EMBI GD Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
11.09% |
| |
|
|
1.67% |
| |
|
|
3.22% |
|
JP
Morgan ELMI+ Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
8.44% |
| |
|
|
0.87% |
| |
|
|
0.01% |
|
JP
Morgan GBI-EM GD Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
12.70% |
| |
|
|
1.14% |
| |
|
|
0.09% |
|
50/25/25
Composite Index(1)
(reflects no deduction for fees, expenses, or taxes) |
|
|
|
10.86% |
| |
|
|
1.40% |
| |
|
|
1.69% |
|
Class C |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
9.65% |
| |
|
|
-3.22% |
| |
|
|
-0.71% |
(2) |
JP
Morgan EMBI GD Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
11.09% |
| |
|
|
1.67% |
| |
|
|
3.22% |
|
JP
Morgan ELMI+ Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
8.44% |
| |
|
|
0.87% |
| |
|
|
0.01% |
|
JP
Morgan GBI-EM GD Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
12.70% |
| |
|
|
1.14% |
| |
|
|
0.09% |
|
50/25/25
Composite Index(1)
(reflects no deduction for fees, expenses, or taxes) |
|
|
|
10.86% |
| |
|
|
1.40% |
| |
|
|
1.69% |
|
(1) |
The
composition of the 50/25/25 Composite Index is as follows: 50% JP Morgan
EMBI GD Index, 25% JP Morgan ELMI+ Index and 25% JP Morgan GBI-EM GD
Index. |
(2) |
Class C Shares performance reflects
conversion to Class A Shares after eight
years. |
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown, and after-tax returns shown are
not relevant to investors who hold their Fund shares through tax-advantaged
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Institutional
Class Shares only and will vary for Class A and Class C
Shares.
6
Management
of the Fund
Investment Manager
Ashmore
Investment Advisors Limited (“the Investment Manager”)
Investment Team
Mark
Coombs, Chief Executive Officer and Chairman of the Investment Committee;
Ricardo Xavier, Deputy Chairman of the Investment Committee; Herbert Saller,
Senior Portfolio Manager and Member of the Investment Committee; Robin Forrest,
Senior Portfolio Manager and Member of the Investment Committee; Cemil Urganci;
Senior Portfolio Manager and Member of the Investment Committee; and Fernando
Assad, Senior Portfolio Manager and Member of the Investment Committee, are
primarily responsible for the day-to-day management of the Fund.
Mr. Forrest has participated in the management of the Fund since 2012;
Mr. Assad has participated in the management of the Fund since 2016; and
Mr. Urganci has participated in the management of the Fund since May 2023.
Each of the other members of the Investment Team has participated in the
management of the Fund since its inception in 2010.
Purchase
and Sale of Fund Shares
The
minimum initial investment for Class A and Class C Shares is $1,000
and the minimum subsequent investment is $50. The minimum initial investment for
Institutional Class Shares is $1,000,000 and the minimum subsequent
investment is $5,000. These minimums may be waived or modified by the Fund or
the Distributor, including for certain financial intermediaries. Investors
investing in the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries. You may sell (redeem) shares on any
day the New York Stock Exchange is open through your broker-dealer or other
financial intermediary (if applicable), or if you hold an account directly with
the Fund by calling 866-876-8294 or by sending a letter of instruction to
Ashmore Funds c/o Northern Trust Company, PO Box 4766, Chicago, IL 60680-4766.
If your shares are held in the name of a financial intermediary, those shares
may only be sold through that financial intermediary.
Tax
Information
The
Fund normally distributes net investment income and net realized capital gains
to shareholders. These distributions are generally taxable to you as ordinary
income or capital gains, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan or an individual retirement account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund, the Distributor, the Investment Manager
or their affiliates may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
7
Ashmore
Emerging Markets Local Currency Bond Fund
Investment
Objective
The
Fund seeks to maximize total return.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell Class A, Class C or Institutional Class Shares of the
Fund. You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below. You may
qualify for sales charge discounts on a purchase of Class A Shares if you
and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of
the Funds. More information about these and other discounts is
available in the “Classes of Shares” section beginning on page 138 of the
Fund’s prospectus or from your financial intermediary. Investors investing in
the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shareholder
Fees |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(fees paid directly from
your investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
4.00% |
|
|
|
|
None |
| |
|
|
None |
|
Maximum
Deferred Sales Charge (CDSC) (Load)(1) (as a percentage
of the lower of original purchase price or NAV) |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Redemption
Fee |
|
|
|
None |
| |
|
|
None |
| |
|
|
None |
|
|
|
| |
|
Annual Fund
Operating Expenses |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(Expenses that you pay each
year as a percentage of the value of your investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Management
Fees |
|
|
|
0.75% |
| |
|
|
0.75% |
| |
|
|
0.75% |
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
0.25% |
| |
|
|
1.00% |
| |
|
|
None |
|
Other
Expenses |
|
|
|
1.84% |
| |
|
|
1.79% |
| |
|
|
1.77% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
2.84% |
| |
|
|
3.54% |
| |
|
|
2.52% |
|
Fee
Waiver and/or Expense Reimbursement(2) |
|
|
|
(1.82)% |
| |
|
|
(1.77)% |
| |
|
|
(1.75)% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
|
1.02% |
| |
|
|
1.77% |
| |
|
|
0.77% |
|
(1) |
For Class A Shares, the CDSC is imposed only where
shares are purchased without a front-end sales charge and subsequently
redeemed within eighteen months of purchase. For Class C Shares, the
CDSC is imposed only on shares redeemed within one year of
purchase. |
(2) |
Ashmore
Investment Advisors Limited has contractually agreed to waive its fees or
reimburse the Fund for other expenses to the extent that Total Annual Fund
Operating Expenses (other than Acquired Fund Fees and Expenses, interest
expense, taxes, extraordinary expenses, custodial credits, transfer agency
credits and expense offset arrangements) for the Fund’s Class A
Shares exceed 1.02%, for the Fund’s Class C Shares exceed 1.77% and
for the Fund’s Institutional Class Shares exceed 0.77% of the Fund’s
average daily net assets attributable to the share class (the “Expense
Limitation Agreement”). The expense limitation arrangement may be
terminated before February 28, 2025 only
by the Board of Trustees. Under the Expense Limitation Agreement, the
Investment Manager may recoup any amounts waived or reimbursed for 36
months following the end of the month when the waiver or reimbursement
occurred, provided total expenses, including such recoupment, do not
exceed the applicable annual expense limit, and further that expenses may
be recouped only if and to the extent that the expense ratio at the time
of such recoupment is less than the annual expense limit in place at the
time when such expenses were waived or
reimbursed. |
8
Examples
These
Examples are intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Examples assume that you invest
$10,000 in the noted class of shares of the Fund for the time periods indicated,
your investment has a 5% return each year and the Fund’s operating expenses
remain the same. Class C Shares automatically convert to Class A
Shares after eight years. The expense example for Class C Shares for the
ten-year period reflects the conversion to Class A Shares. The Examples are
based, for the first year, on Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement and, for all other periods, on Total Annual
Fund Operating Expenses. Although your actual costs may be higher or lower, the
Examples show what your costs would be based on these
assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Example: Assuming you redeem your shares at the end of each
period |
|
Example: Assuming you
do not redeem your
shares |
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Class A
Shares |
|
|
$ |
500 |
| |
|
$ |
1,079 |
| |
|
$ |
1,684 |
| |
|
$ |
3,313 |
| |
|
$ |
500 |
| |
|
$ |
1,079 |
| |
|
$ |
1,684 |
| |
|
$ |
3,313 |
|
Class C
Shares |
|
|
$ |
280 |
| |
|
$ |
921 |
| |
|
$ |
1,685 |
| |
|
$ |
3,535 |
| |
|
$ |
180 |
| |
|
$ |
921 |
| |
|
$ |
1,685 |
| |
|
$ |
3,535 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Institutional
Class Shares (whether or not shares are redeemed) |
|
|
|
$ |
79 |
| |
|
$ |
617 |
| |
|
$ |
1,183 |
| |
|
$ |
2,724 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, adversely affect the
Fund’s investment performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 79% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks to achieve its objective by investing principally in debt instruments
of Sovereign and Quasi-Sovereign issuers of Emerging Market Countries (as
defined below) that are denominated in the local currency of the issuer. Sovereigns are governments of Emerging Market
Countries (as defined below). For these purposes, Sovereigns may include EM
Supra-Nationals. Quasi-Sovereigns are governmental entities, agencies and other
issuers the obligations of which are guaranteed by an emerging market government
and issuers otherwise represented in the J.P. Morgan Government Bond
Index-Emerging Markets Global Diversified or a similar index as determined by
the Investment Manager. For these purposes, governmental entities include a
province, a city and local or regional governmental bodies. Emerging Market
Country means any country included by the International Monetary Fund in its
list of Emerging and Developing Economies, any country which is considered a
low-income, lower-middle-income, or upper-middle-income economy by the World
Bank, and all countries represented in any widely-recognized index of emerging
market securities (e.g., the relevant indices in the family of J.P. Morgan
Corporate Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets Index,
J.P. Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond
Index—Emerging Markets and MSCI Emerging and Frontier Markets
Index).
The
Fund’s investments in debt instruments will generally be limited to those issued
by Sovereigns and Quasi-Sovereigns. The Fund may invest in debt instruments of
all types and denominated in any currency, whether subordinated or
unsubordinated, secured or unsecured, quoted or unquoted, rated or unrated, or
floating rate or fixed rate. These may include, without limitation, bonds,
debentures, notes, convertible securities, commercial paper, loans and related
assignments and participations, firm commitment, when-issued and
delayed-delivery securities, mortgage-backed and other types of asset-backed
securities issued on a public or private basis, bank certificates of deposit,
fixed time deposits, bankers’ acceptances, and money market instruments,
including money market funds denominated in U.S. dollars or other
currencies.
The
Fund may invest in obligations of any credit quality, including obligations that
are in default or that are subject to insolvency proceedings. The Fund may
invest without limit in debt securities that are rated below investment grade
quality or that are unrated but judged by the Investment Manager to be of
comparable quality (i.e., “junk bonds”).
Ordinarily, at least 70% of the securities held by the Fund will be rated by at
least one internationally recognized rating agency or issued by a Sovereign or
Quasi-Sovereign issuer that itself is
rated.
The
Fund normally seeks to maintain a weighted average portfolio duration of between
2 and 7 years.
9
The
Fund is a “non-diversified” fund, which means that it may invest a relatively
large portion of its assets in a single issuer or a small number of issuers in
comparison to a fund that is
“diversified.”
Although
the Fund may gain most of its investment exposure to bonds and other debt
instruments by investing directly in them, the Fund may utilize various
derivative instruments and related strategies, including exclusively, to gain
exposure to bonds and other debt instruments. The Fund may utilize derivatives
of all types and may invest in, without limitation, call and put options
(including options on futures contracts), futures and forward contracts,
including relating to currencies, and swap agreements (including total return,
interest rate and credit default swaps) and other related instruments with
respect to individual bonds and other securities, indices and baskets of
securities, interest rates and currencies, and credit-linked notes as part of
its principal investment strategies. The Fund expects to primarily use
derivatives for hedging or efficient portfolio management purposes, but may also
use them to increase the Fund’s investment exposure beyond that which it could
achieve by investing directly in more conventional securities. The Fund may also
invest directly in foreign currencies for hedging or other investment
purposes.
The
Fund may invest in convertible debt instruments and equity securities related to
convertible securities or warrants the Fund holds or has held, as well as
acquire and hold equity securities, including warrants, resulting from debt
conversion or restructuring. The Fund may invest in the securities of other
investment companies, including exchange-traded funds (“ETFs”) and other pooled
vehicles, if the investment companies invest principally in the types of
investments in which the Fund may invest directly. The Fund may lend its
portfolio securities, borrow money for investment and other purposes, and enter
into repurchase and reverse repurchase agreement
transactions.
The
Fund will not invest more than 25% of its net assets in any one Emerging Market
Country. In addition, the Fund will not invest more than 30% of its net assets
in investments denominated in a single non-U.S. currency without seeking to
hedge into U.S. dollars the portion of the Fund’s exposure to the non-U.S.
currency that exceeds 30% of the Fund’s net
assets.
In
managing the Fund, the Investment Manager’s fixed income and asset allocation
investment committee (the “Investment Committee”), together with the relevant
portfolio managers (together with the Investment Committee, the “Investment
Team”), employs a largely top-down, active and value-driven investment approach
in analyzing emerging markets and currencies. The Fund’s investment approach
includes an emphasis on the influence of politics (both local and
international), combined with an analytically-driven, bottom-up approach to
making purchase and sale decisions. The Investment Team seeks opportunities in
selected emerging markets that it believes may benefit from significant positive
changes, such as political and economic reforms, increases in capital inflows
and investor confidence, and seeks to invest in issuers it expects will benefit
from such developments and associated economic development and growth. The
Investment Team’s investment process focuses on global and emerging markets
fundamentals and considers factors such as liquidity and risk management at the
macro level. The Investment Team utilizes the Investment Manager’s broad and
current knowledge of important investment areas in various Emerging Market
Countries gained, in part, through research, experience, long-standing
relationships with reliable local firms and, where appropriate, visits by its
investment personnel to countries in their respective regions of
responsibility.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in bonds and other debt instruments
denominated in the local currencies of Emerging Market Countries. The Fund’s
investments in derivatives and other synthetic instruments that have economic
characteristics similar to these investments will be counted toward satisfaction
of the Fund’s 80% investment policy.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the bid/asked spread on purchases and sales of
securities, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may
result in higher taxes for you if your Fund shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Examples, may adversely affect the Fund’s investment
performance.
10
Principal
Risks
It is possible
to lose money on an investment in the Fund.The Fund will
be affected by the investment decisions, techniques and risk analyses of the
Fund’s Investment Manager and there is no guarantee that the Fund will achieve
its investment objective. The principal risks of investing in the Fund, which
could adversely affect its net asset value, yield and total return are (in
alphabetical order after the first five risks):
|
• |
|
Emerging Markets Risk: Compared to
foreign developed markets, investing in emerging markets may involve
heightened volatility, greater political, regulatory, legal and economic
uncertainties, less liquidity, dependence on particular commodities or
international aid, high levels of inflation, greater custody risk, and
certain special risks associated with smaller
companies; |
|
• |
|
Foreign Investment Risk: Investments in
foreign (non-U.S.) issuers, directly or through use of depositary
receipts, may be negatively affected by adverse political, regulatory,
economic, market or other developments affecting issuers located in
foreign countries, currency exchange rates or regulations, or foreign
withholding or other taxes, and investing in foreign securities may result
in the Fund experiencing more rapid and extreme changes in value than a
fund that invests exclusively in securities of U.S.
issuers; |
|
• |
|
Currency Risk: Foreign (non-U.S.)
currencies may decline in value relative to the U.S. dollar and adversely
affect the value of the Fund’s investments in foreign currencies,
securities denominated in foreign currencies or derivatives that provide
exposure to foreign currencies; |
|
• |
|
Geographic Focus Risk: The Fund may be
particularly susceptible to economic, political or regulatory events
affecting particular countries or regions to the extent the Fund focuses
its investments in such countries or
regions; |
|
• |
|
Credit Risk: The Fund could lose money if
the issuer or counterparty is unable or unwilling to meet its financial
obligations, and the lack of ability, or perceived lack of ability, of the
issuer to make timely payments of interest and/or principal will
negatively affect the value of the security or
instrument; |
|
• |
|
Counterparty and Third Party Risk:
Transactions involving a counterparty to a derivative contract,
repurchase agreement, reverse repurchase agreement, or other financial
instrument, or to a third party responsible for servicing the instrument,
are subject to the credit risk of the counterparty or third party, and to
the counterparty’s or third party’s ability to perform in accordance with
the terms of the transaction; |
|
• |
|
Currency Management Strategies Risk:
Currency management strategies, including the use of forward
currency contracts and other derivatives, may substantially change the
Fund’s exposure to currencies and currency exchange rates and could result
in losses to the Fund if currencies do not perform as the Investment
Manager anticipates; |
|
• |
|
Derivatives Risk: Investing in derivative
instruments may be considered risky and involves correlation,
documentation, interest rate, leverage, liquidity, market, management,
interest rate and valuation risks and the risk of losing more than the
principal amount invested; |
|
• |
|
High Yield Risk: Below investment grade
securities and unrated securities of similar credit quality (commonly
known as “high yield” securities or “junk bonds”) are subject to greater
levels of credit and liquidity risks than higher quality securities, and
are considered predominantly speculative with respect to the issuer’s
continuing ability to make principal and interest
payments; |
|
• |
|
Inflation/Deflation Risk: The value of
the Fund’s investments may decline as inflation reduces the value of
money; conversely, if deflation reduces prices throughout the economy
there may be an adverse effect on the creditworthiness of issuers in whose
securities the Fund invests and an increase in the likelihood of issuer
defaults; |
|
• |
|
Interest Rate Risk: Debt and other
securities and instruments may decline in value due to changes in interest
rates, the extended duration of principal payments at below-market
interest rates, and/or prepayment. The value of most fixed income
securities will generally decline in response to increases in interest
rates; |
|
• |
|
Investments in Pooled Vehicles Risk:
Investing in another investment company or pooled vehicle subjects
the Fund to that company’s risks, and, in general, to a pro rata portion
of that company’s fees and expenses in addition to fees and expenses
charged by the Fund; |
|
• |
|
Issuer Non-Diversification Risk: The Fund
is “non-diversified” and is therefore more susceptible to the risks of
focusing investments in a small number of issuers, industries or foreign
currencies, and the risks of a single economic, political or regulatory
occurrence, than funds that are
“diversified”; |
|
• |
|
Issuer Risk: The value of a security or
instrument may decline for reasons directly related to the issuer, such as
management performance, financial leverage and reduced demand for the
issuer’s goods or services; |
11
|
• |
|
Large Shareholder Risk: Shareholders of
the Fund, such as institutional investors, may disrupt the efficient
management of the Fund’s operations by purchasing or redeeming Fund shares
in large amounts; |
|
• |
|
Leverage Risk: Use of leverage, including
through borrowings, derivatives and reverse repurchase agreements, will
increase volatility of the Fund’s investment portfolio and magnify the
Fund’s investment losses or
gains; |
|
• |
|
Liquidity Risk: Illiquid securities and
other instruments may be highly volatile, difficult to value, and
difficult to sell or close out at favorable prices or
times; |
|
• |
|
Management Risk: The Fund’s investment
return depends on the ability of the Investment Manager to manage the
Fund’s portfolio successfully; there is a risk that the Investment Manager
may be incorrect in its analysis of economic trends, currencies,
countries, industries, companies, and the relative attractiveness of asset
classes or other matters; |
|
• |
|
Market Risk: The value of securities and
instruments owned by the Fund may rise and fall, sometimes rapidly or
unpredictably, due to factors affecting securities markets generally or
particular industries or geographic areas, including terrorism, war,
natural disasters and the spread of infectious disease including epidemics
or pandemics; |
|
• |
|
Mortgage-Backed and Asset-Backed Risk:
Payments on the underlying assets, whether they be mortgages or
other obligations, may be delayed, prepaid, subordinated or defaulted on;
rising interest rates tend to extend the duration of these securities,
making them more sensitive to changes in interest
rates; |
|
• |
|
Over-the-Counter Risk: Securities and
derivatives traded in over-the-counter markets may trade less frequently
and in limited volumes and thus exhibit more volatility and liquidity
risk, and the prices paid by the Fund in over-the-counter transactions may
include an undisclosed dealer
markup; |
|
• |
|
Portfolio Turnover Risk: If the Fund
frequently trades its securities, this will increase transaction costs,
may result in taxable capital gains, and may reduce the Fund’s investment
performance; and |
|
• |
|
Valuation Risk: Certain securities and
instruments may be difficult to value, and to the extent the Fund sells a
security or instrument at a price lower than that used to value the
security, its net asset value will be adversely
affected. |
An investment in the Fund is not a bank deposit and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Performance
Information
The bar chart and performance table that follow
provide some indication of the risks of investing in the Fund by showing changes
in the Fund’s Institutional Class Shares’ performance from year to year and
comparing the Fund’s average annual total returns with those of a broad-based
market index. The bar chart and the information immediately
below it show only the performance of the Fund’s Institutional
Class Shares. Although Class A and Class C Shares would have
similar annual returns (because all the Fund’s shares represent interests in the
same portfolio of securities), Class A and Class C performance would
be lower than Institutional Class performance because of the lower expenses
paid by Institutional Class Shares of the Fund. The bar
chart does not reflect any sales loads applicable to Class A or
Class C Shares. The performance shown in the bar chart
would be lower if it reflected sales charges applicable to Class A and
Class C Shares. Performance for Class A and Class C
Shares in the Average Annual Total Returns table reflects the impact of sales
charges. You may obtain the Fund’s updated performance
information by visiting the website at www.ashmoregroup.com or by calling
866-876-8294. As
with all mutual funds, the Fund’s past performance (before and after taxes) does
not predict how the Fund will perform in the
future.
12
Calendar
Year Total Return—Institutional Class
Ashmore
Emerging Markets Local Currency Bond Fund % Total Return
The
best calendar
quarter return during the period shown above was 11.96% in the fourth quarter of 2020; the
worst was
(17.60)% in the first quarter of
2020.
Average
Annual Total Return
(For the period ended December 31, 2023)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1-Year |
|
5-Year |
|
10-Year |
Institutional
Class |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
13.84% |
| |
|
|
1.33% |
| |
|
|
0.20% |
|
Return
after taxes on distributions |
|
|
|
11.81% |
| |
|
|
0.91% |
| |
|
|
-0.23% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
|
8.11% |
| |
|
|
0.83% |
| |
|
|
-0.04% |
|
JP
Morgan GBI-EM GD Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
12.70% |
| |
|
|
1.14% |
| |
|
|
0.09% |
|
Class A |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
9.13% |
| |
|
|
0.25% |
| |
|
|
-0.46% |
(1) |
JP
Morgan GBI-EM GD Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
12.70% |
| |
|
|
1.14% |
| |
|
|
0.09% |
|
Class C |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
11.92% |
| |
|
|
0.35% |
| |
|
|
-0.65% |
(1) |
JP
Morgan GBI-EM GD Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
12.70% |
| |
|
|
1.14% |
| |
|
|
0.09% |
|
(1) |
Class C Shares performance reflects
conversion to Class A Shares after eight
years. |
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown, and after-tax returns shown are
not relevant to investors who hold their Fund shares through tax-advantaged
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Institutional
Class Shares only and will vary for Class A and Class C
Shares.
Management
of the Fund
Investment Manager
Ashmore
Investment Advisors Limited (“the Investment Manager”)
Investment Team
Mark
Coombs, Chief Executive Officer and Chairman of the Investment Committee;
Ricardo Xavier, Deputy Chairman of the Investment Committee; Herbert Saller,
Senior Portfolio Manager and Member of the Investment Committee; Robin Forrest,
Senior Portfolio Manager and Member of the Investment Committee; Cemil Urganci,
Senior Portfolio Manager and Member of the Investment Committee and Fernando
Assad, Senior Portfolio Manager and Member of the Investment Committee, are
primarily responsible for the day-to-day management of the Fund.
Mr. Forrest has participated in the management of the Fund since 2012;
Mr. Assad has participated in the management of the Fund since 2016; and
Mr. Urganci has participated in the management of the Fund since May 2023.
Each of the other members of the Investment Team has participated in the
management of the Fund since its inception in 2010.
13
Purchase
and Sale of Fund Shares
The
minimum initial investment for Class A and Class C Shares is $1,000
and the minimum subsequent investment is $50. The minimum initial investment for
Institutional Class Shares is $1,000,000 and the minimum subsequent
investment is $5,000. These minimums may be waived or modified by the Fund or
the Distributor, including for certain financial intermediaries. Investors
investing in the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries. You may sell (redeem) shares on any
day the New York Stock Exchange is open through your broker-dealer or other
financial intermediary (if applicable), or if you hold an account directly with
the Fund by calling 866-876-8294 or by sending a letter of instruction to
Ashmore Funds c/o Northern Trust Company, PO Box 4766, Chicago, IL 60680-4766.
If your shares are held in the name of a financial intermediary, those shares
may only be sold through that financial intermediary.
Tax
Information
The
Fund normally distributes net investment income and net realized capital gains
to shareholders. These distributions are generally taxable to you as ordinary
income or capital gains, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan or an individual retirement account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund, the Distributor, the Investment Manager
or their affiliates may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
14
Ashmore
Emerging Markets Corporate Income Fund
Investment
Objective
The
Fund seeks to maximize total return.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell Class A, Class C or Institutional Class Shares of the
Fund. You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below. You may
qualify for sales charge discounts on a purchase of Class A Shares if you
and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of
the Funds. More information about these and other discounts is
available in the “Classes of Shares” section beginning on page 138 of the
Fund’s prospectus or from your financial intermediary. Investors investing in
the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries.
|
|
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|
|
|
|
|
|
|
|
|
| |
Shareholder
Fees |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(fees paid directly from
your investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
4.00% |
|
|
|
|
None |
| |
|
|
None |
|
Maximum
Deferred Sales Charge (CDSC) (Load)(1) (as a percentage
of the lower of original purchase price or NAV) |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Redemption
Fee |
|
|
|
None |
| |
|
|
None |
| |
|
|
None |
|
|
|
| |
|
Annual Fund
Operating Expenses |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(Expenses that you pay each
year as a percentage of the value of your investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Management
Fees |
|
|
|
0.85% |
| |
|
|
0.85% |
| |
|
|
0.85% |
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
0.25% |
| |
|
|
1.00% |
| |
|
|
None |
|
Other
Expenses |
|
|
|
0.35% |
| |
|
|
0.35% |
| |
|
|
0.35% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
1.45% |
| |
|
|
2.20% |
| |
|
|
1.20% |
|
Fee
Waiver and/or Expense Reimbursement(2) |
|
|
|
(0.33)% |
| |
|
|
(0.33)% |
| |
|
|
(0.33)% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
|
1.12% |
| |
|
|
1.87% |
| |
|
|
0.87% |
|
(1) |
For Class A Shares, the CDSC is imposed only where
shares are purchased without a front-end sales charge and subsequently
redeemed within eighteen months of purchase. For Class C Shares, the
CDSC is imposed only on shares redeemed within one year of
purchase. |
(2) |
Ashmore
Investment Advisors Limited has contractually agreed to waive its fees or
reimburse the Fund for other expenses to the extent that Total Annual Fund
Operating Expenses (other than Acquired Fund Fees and Expenses, interest
expense, taxes, extraordinary expenses, custodial credits, transfer agency
credits and expense offset arrangements) for the Fund’s Class A
Shares exceed 1.12%, for the Fund’s Class C Shares exceed 1.87% and
for the Fund’s Institutional Class Shares exceed 0.87% of the Fund’s
average daily net assets attributable to the share class (the “Expense
Limitation Agreement”). The expense limitation arrangement may be
terminated before February 28, 2025 only
by the Board of Trustees. Under the Expense Limitation Agreement, the
Investment Manager may recoup any amounts waived or reimbursed for 36
months following the end of the month when the waiver or reimbursement
occurred, provided total expenses, including such recoupment, do not
exceed the applicable annual expense limit, and further that expenses may
be recouped only if and to the extent that expense ratio at the time of
such recoupment is less than the annual expense limit in place at the time
such expenses were waived or
reimbursed. |
15
Examples
These
Examples are intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Examples assume that you invest
$10,000 in the noted class of shares of the Fund for the time periods indicated,
your investment has a 5% return each year and the Fund’s operating expenses
remain the same. Class C Shares automatically convert to Class A
Shares after eight years. The expense example for Class C Shares for the
ten-year period reflects the conversion to Class A Shares. The Examples are
based, for the first year, on Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement and, for all other periods, on Total Annual
Fund Operating Expenses. Although your actual costs may be higher or lower, the
Examples show what your costs would be based on these
assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Example: Assuming you redeem your shares at the end of each
period |
|
Example: Assuming you do not redeem your
shares |
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Class A
Shares |
|
|
$ |
510 |
| |
|
$ |
809 |
| |
|
$ |
1,130 |
| |
|
$ |
2,039 |
| |
|
$ |
510 |
| |
|
$ |
809 |
| |
|
$ |
1,130 |
| |
|
$ |
2,039 |
|
Class C
Shares |
|
|
$ |
290 |
| |
|
$ |
656 |
| |
|
$ |
1,150 |
| |
|
$ |
2,318 |
| |
|
$ |
190 |
| |
|
$ |
656 |
| |
|
$ |
1,150 |
| |
|
$ |
2,318 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Institutional
Class Shares (whether or not shares are redeemed) |
|
|
|
$ |
89 |
| |
|
$ |
348 |
| |
|
$ |
628 |
| |
|
$ |
1,425 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, adversely affect the
Fund’s investment performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 56% of the average value of its
portfolio.
Principal
Investment Strategies
The Fund seeks to achieve its objective by
investing principally in debt instruments of Corporate issuers (as defined
below), which may be denominated in any currency, including the local currency
of the issuer. A Corporate issuer is an issuer
located in an Emerging Market Country or an issuer deriving at least 50% of its
revenues or profits from goods produced or sold, investments made, or services
performed in one or more Emerging Market Countries or that has at least 50% of
its assets in one or more Emerging Market Countries. For these purposes,
Corporate issuers do not include Sovereigns or governmental agency issuers, but
may include corporate or other business entities in which a Sovereign or
governmental agency or entity may have, indirectly or directly, an interest,
including a majority or greater ownership interest (e.g., CITIC, Qatar Telecom).
Emerging Market Country means any country included by the International Monetary
Fund in its list of Emerging and Developing Economies, any country which is
considered a low-income, lower-middle-income, or upper-middle-income economy by
the World Bank, and all countries represented in any widely-recognized index of
emerging market securities (e.g., the relevant indices in the family of J.P.
Morgan Corporate Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets
Index, J.P. Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond
Index—Emerging Markets and MSCI Emerging and Frontier Markets Index).
The
Fund may invest in debt instruments of all types issued by Corporate issuers,
whether subordinated or unsubordinated, secured or unsecured, quoted or
unquoted, rated or unrated, or floating rate or fixed rate. These may include,
without limitation, bonds, debentures, notes, convertible securities, commercial
paper, loans and related assignments and participations, trade claims, bank
certificates of deposit, fixed time deposits, bankers’ acceptances, and money
market instruments, including money market funds denominated in U.S. dollars or
other currencies. The Fund may invest in companies of any market capitalization,
and its allocations among small-, mid- and large-capitalization issuers may vary
significantly over time.
The
Fund may invest in obligations of any credit quality, including obligations that
are in default or that are subject to insolvency proceedings. The Fund may
invest without limitation in debt securities that are of below investment grade
or that are unrated but judged by the Investment Manager to be of comparable
quality (“junk bonds”).
The
Fund normally seeks to maintain a weighted average portfolio duration of between
2 and 10 years.
16
Although
the Fund may gain most of its investment exposure to Corporate issuers directly,
the Fund may utilize various derivative instruments and related strategies,
including exclusively, to gain exposure to one or more Corporate issuers or
other assets. The Fund may utilize derivatives of all types and may invest in,
without limitation, call and put options (including options on futures
contracts), futures and forward contracts (including contracts related to
currencies), and swap agreements (including total return, interest rate and
credit default swaps) and other related instruments with respect to individual
bonds and other securities, indices and baskets of securities, interest rates
and currencies, and credit-linked notes as part of its principal investment
strategies. The Fund expects to primarily use derivatives for hedging or
efficient portfolio management purposes, but may also use them to increase the
Fund’s investment exposure beyond that which it could achieve by investing
directly in more conventional securities. The Fund may also invest directly in
foreign currencies for hedging or other investment
purposes.
The
Fund may invest in convertible debt instruments and equity securities related to
convertible securities or warrants the Fund holds or has held, as well as
acquire and hold equity securities, including warrants, resulting from debt
conversion or restructuring. The Fund may invest in the securities of other
investment companies, including exchange-traded funds (“ETFs”) and other pooled
vehicles, if the investment companies invest principally in the types of
investments in which the Fund may invest directly. The Fund may also lend its
portfolio securities, borrow money for investment and other purposes, and enter
into repurchase and reverse repurchase agreement
transactions.
The
Fund will not invest more than 25% of its net assets in any one Emerging Market
Country. In addition, the Fund will not invest more than 20% of its net assets
in investments denominated in currencies other than the U.S.
dollar.
In
managing the Fund, the Investment Manager’s fixed income and asset allocation
investment committee (the “Investment Committee”), together with the relevant
portfolio managers (together with the Investment Committee, the “Investment
Team”), employs a largely top-down, active and value-driven investment approach
in analyzing emerging markets and currencies. The Fund’s investment approach
includes an emphasis on the influence of politics (both local and
international). The Investment Team combines its top-down approach with an
analytically-driven, bottom-up approach to making purchase and sale decisions
with respect to individual corporate credits. The Investment Team seeks
opportunities in selected emerging markets that it believes may benefit from
significant positive changes, such as political and economic reforms, increases
in capital inflows and investor confidence, and seeks to invest in issuers in
Corporate sectors it expects will benefit from such developments and associated
economic development and growth. The Investment Team’s investment process
focuses on global and emerging markets fundamentals and considers factors such
as liquidity and risk management at the macro level. The Investment Team
utilizes the Investment Manager’s broad and current knowledge of important
investment areas in various Emerging Market Countries gained, in part, through
research, experience, long-standing relationships with reliable local firms and,
where appropriate, visits by its investment personnel to countries in their
respective regions of responsibility.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in bonds and other debt instruments of
Corporate issuers (as defined above). The Fund’s investments in derivatives and
other synthetic instruments that have economic characteristics similar to these
investments will be counted toward satisfaction of the Fund’s 80% investment
policy.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the bid/asked spread on purchases and sales of
securities, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may
result in higher taxes for you if your Fund shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Examples, may adversely affect the Fund’s investment
performance.
17
Principal
Risks
It is possible
to lose money on an investment in the Fund.The Fund will
be affected by the investment decisions, techniques and risk analyses of the
Fund’s Investment Manager and there is no guarantee that the Fund will achieve
its investment objective. The principal risks of investing in the Fund, which
could adversely affect its net asset value, yield and total return are (in
alphabetical order after the first seven risks):
|
• |
|
Emerging Markets Risk: Compared to
foreign developed markets, investing in emerging markets may involve
heightened volatility, greater political, regulatory, legal and economic
uncertainties, less liquidity, dependence on particular commodities or
international aid, high levels of inflation, greater custody risk, and
certain special risks associated with smaller
companies; |
|
• |
|
Foreign Investment Risk: Investments in
foreign (non-U.S.) issuers, directly or through use of depositary
receipts, may be negatively affected by adverse political, regulatory,
economic, market or other developments affecting issuers located in
foreign countries, currency exchange rates or regulations, or foreign
withholding or other taxes, and investing in foreign securities may result
in the Fund experiencing more rapid and extreme changes in value than a
fund that invests exclusively in securities of U.S.
issuers; |
|
• |
|
Bank Loans Risk: The Fund may invest in
bank loans and participations. Risks associated with these obligations
include, but are not limited to, risks involving the enforceability of
security interests and loan transactions, inadequate collateral,
liabilities relating to collateral securing obligations, and the liquidity
of these loans. The market for bank loans may be subject to irregular
trading activity, wide bid/ask spreads and extended trade settlement
periods. The loans in which the Fund invests may be rated below investment
grade; |
|
• |
|
High Yield Risk: Below investment grade
securities and unrated securities of similar credit quality (commonly
known as “high yield” securities or “junk bonds”) are subject to greater
levels of credit and liquidity risks than higher quality securities, and
are considered predominantly speculative with respect to the issuer’s
continuing ability to make principal and interest
payments; |
|
• |
|
Geographic Focus Risk: The Fund may be
particularly susceptible to economic, political or regulatory events
affecting particular countries or regions to the extent the Fund focuses
its investments in such countries or
regions; |
|
• |
|
Issuer Risk: The value of a security or
instrument may decline for reasons directly related to the issuer, such as
management performance, financial leverage and reduced demand for the
issuer’s goods or services; |
|
• |
|
Credit Risk: The Fund could lose money if
the issuer or counterparty is unable or unwilling to meet its financial
obligations, and the lack of ability, or perceived lack of ability, of the
issuer to make timely payments of interest and/or principal will
negatively affect the value of the security or
instrument; |
|
• |
|
Counterparty and Third Party Risk:
Transactions involving a counterparty to a derivative contract,
repurchase agreement, reverse repurchase agreement, or other financial
instrument, or to a third party responsible for servicing the instrument,
are subject to the credit risk of the counterparty or third party, and to
the counterparty’s or third party’s ability to perform in accordance with
the terms of the transaction; |
|
• |
|
Currency Management Strategies Risk:
Currency management strategies, including the use of forward
currency contracts and other derivatives, may substantially change the
Fund’s exposure to currencies and currency exchange rates and could result
in losses to the Fund if currencies do not perform as the Investment
Manager anticipates; |
|
• |
|
Currency Risk: Foreign (non-U.S.)
currencies may decline in value relative to the U.S. dollar and adversely
affect the value of the Fund’s investments in foreign currencies,
securities denominated in foreign currencies or derivatives that provide
exposure to foreign currencies; |
|
• |
|
Derivatives Risk: Investing in derivative
instruments may be considered risky and involves correlation,
documentation, interest rate, leverage, liquidity, market, management,
interest rate and valuation risks and the risk of losing more than the
principal amount invested; |
|
• |
|
Inflation/Deflation Risk: The value of
the Fund’s investments may decline as inflation reduces the value of
money; conversely, if deflation reduces prices throughout the economy
there may be an adverse effect on the creditworthiness of issuers in whose
securities the Fund invests and an increase in the likelihood of issuer
defaults; |
|
• |
|
Interest Rate Risk: Debt and other
securities and instruments may decline in value due to changes in interest
rates, the extended duration of principal payments at below-market
interest rates, and/or prepayment. The value of most fixed income
securities will generally decline in response to increases in interest
rates; |
18
|
• |
|
Investments in Pooled Vehicles Risk:
Investing in another investment company or pooled vehicle subjects
the Fund to that company’s risks, and, in general, to a pro rata portion
of that company’s fees and expenses in addition to fees and expenses
charged by the Fund; |
|
• |
|
Large Shareholder Risk: Shareholders of
the Fund, such as institutional investors, may disrupt the efficient
management of the Fund’s operations by purchasing or redeeming Fund shares
in large amounts; |
|
• |
|
Leverage Risk: Use of leverage, including
through borrowings, derivatives and reverse repurchase agreements, will
increase volatility of the Fund’s investment portfolio and magnify the
Fund’s investment losses or
gains; |
|
• |
|
Liquidity Risk: Illiquid securities and
other instruments may be highly volatile, difficult to value, and
difficult to sell or close out at favorable prices or
times; |
|
• |
|
Management Risk: The Fund’s investment
return depends on the ability of the Investment Manager to manage the
Fund’s portfolio successfully; there is a risk that the Investment Manager
may be incorrect in its analysis of economic trends, currencies,
countries, industries, companies, and the relative attractiveness of asset
classes or other matters; |
|
• |
|
Market Risk: The value of securities and
instruments owned by the Fund may rise and fall, sometimes rapidly or
unpredictably, due to factors affecting securities markets generally or
particular industries or geographic areas, including terrorism, war,
natural disasters and the spread of infectious disease including epidemics
or pandemics; |
|
• |
|
Over-the-Counter Risk: Securities and
derivatives traded in over-the-counter markets may trade less frequently
and in limited volumes and thus exhibit more volatility and liquidity
risk, and the prices paid by the Fund in over-the-counter transactions may
include an undisclosed dealer
markup; |
|
• |
|
Portfolio Turnover Risk: If the Fund
frequently trades its securities, this will increase transaction costs,
may result in taxable capital gains, and may reduce the Fund’s investment
performance; |
|
• |
|
Small and Mid-Sized Companies Risk:
Investments in securities issued by small and mid-sized companies
tend to be more vulnerable to adverse developments than larger companies,
and may present increased volatility and liquidity risk;
and |
|
• |
|
Valuation Risk: Certain securities and
instruments may be difficult to value, and to the extent the Fund sells a
security or instrument at a price lower than that used to value the
security, its net asset value will be adversely
affected. |
An investment in the Fund is not a bank deposit and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Performance
Information
The bar chart and performance table that follow
provide some indication of the risks of investing in the Fund by showing changes
in the Fund’s Institutional Class Shares’ performance from year to year and
comparing the Fund’s average annual total returns with those of a broad-based
market index. The bar chart and the information immediately
below it show only the performance of the Fund’s Institutional
Class Shares. Although Class A and Class C Shares would have
similar annual returns (because all the Fund’s shares represent interests in the
same portfolio of securities), Class A and Class C performance would
be lower than Institutional Class performance because of the lower expenses
paid by Institutional Class Shares of the Fund. The bar
chart does not reflect any sales loads applicable to Class A or
Class C Shares. The performance shown in the bar chart
would be lower if it reflected sales charges applicable to Class A and
Class C Shares. Performance for Class A and Class C
Shares in the Average Annual Total Returns table reflects the impact of sales
charges. You may obtain the Fund’s updated performance
information by visiting the website at www.ashmoregroup.com or by calling
866-876-8294. As
with all mutual funds, the Fund’s past performance (before and after taxes) does
not predict how the Fund will perform in the
future.
19
Calendar
Year Total Return—Institutional Class
Ashmore
Emerging Markets Corporate Income Fund % Total Return
The
best calendar
quarter return during the period shown above was 16.37% in the second quarter of 2020; the
worst was
(18.76)% in the first quarter of
2020.
Average
Annual Total Return
(For the period ended December 31, 2023)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1-Year |
|
5-Year |
|
10-Year |
Institutional
Class |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
6.37 |
% |
|
|
|
-0.73 |
% |
|
|
|
1.74 |
% |
Return
after taxes on distributions |
|
|
|
3.95 |
% |
|
|
|
‑3.34 |
% |
|
|
|
‑1.22 |
% |
Return
after taxes on distributions and sale of Fund shares |
|
|
|
3.71 |
% |
|
|
|
‑1.54 |
% |
|
|
|
0.09 |
% |
JP
Morgan CEMBI BD Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
9.08 |
% |
|
|
|
3.19 |
% |
|
|
|
3.77 |
% |
Class A |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
1.72 |
% |
|
|
|
-1.80 |
% |
|
|
|
1.06 |
%(1) |
JP
Morgan CEMBI BD Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
9.08 |
% |
|
|
|
3.19 |
% |
|
|
|
3.77 |
% |
Class C |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
4.20 |
% |
|
|
|
-1.71 |
% |
|
|
|
0.88 |
%(1) |
JP
Morgan CEMBI BD Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
9.08 |
% |
|
|
|
3.19 |
% |
|
|
|
3.77 |
% |
(1) |
Class C Shares performance reflects
conversion to Class A Shares after eight
years. |
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown, and after-tax returns shown are
not relevant to investors who hold their Fund shares through tax-advantaged
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Institutional
Class Shares only and will vary for Class A and Class C
Shares.
Management
of the Fund
Investment Manager
Ashmore
Investment Advisors Limited (“the Investment Manager”)
Investment Team
Mark
Coombs, Chief Executive Officer and Chairman of the Investment Committee;
Ricardo Xavier, Deputy Chairman of the Investment Committee; Herbert Saller,
Senior Portfolio Manager and Member of the Investment Committee; Robin Forrest,
Senior Portfolio Manager and Member of the Investment Committee; Cemil Urganci,
Senior Portfolio Manager and Member of the Investment Committee; and Fernando
Assad, Senior Portfolio Manager and Member of the Investment Committee, are
primarily responsible for the day-to-day management of the Fund.
Mr. Forrest has participated in the management of the Fund since 2012;
Mr. Assad has participated in the management of the Fund since 2016: and
Mr. Urganci has participated in the management of the Fund since May 2023.
Each of the other members of the Investment Team has participated in the
management of the Fund since its inception in 2010.
20
Purchase
and Sale of Fund Shares
The
minimum initial investment for Class A and Class C Shares is $1,000
and the minimum subsequent investment is $50. The minimum initial investment for
Institutional Class Shares is $1,000,000 and the minimum subsequent
investment is $5,000. These minimums may be waived or modified by the Fund or
the Distributor, including for certain financial intermediaries. Investors
investing in the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries. You may sell (redeem) shares on any
day the New York Stock Exchange is open through your broker-dealer or other
financial intermediary (if applicable), or if you hold an account directly with
the Fund by calling 866-876-8294 or by sending a letter of instruction to
Ashmore Funds c/o Northern Trust Company, PO Box 4766, Chicago, IL 60680-4766.
If your shares are held in the name of a financial intermediary, those shares
may only be sold through that financial intermediary.
Tax
Information
The
Fund normally distributes net investment income and net realized capital gains
to shareholders. These distributions are generally taxable to you as ordinary
income or capital gains, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan or an individual retirement account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund, the Distributor, the Investment Manager
or their affiliates may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
21
Ashmore
Emerging Markets Short Duration Fund
Investment
Objective
The
Fund seeks to maximize total return.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell Class A, Class C or Institutional Class Shares of the
Fund. You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below. You may
qualify for sales charge discounts on a purchase of Class A Shares if you
and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of
the Funds. More information about these and other discounts is
available in the “Classes of Shares” section beginning on page 138 of the
Fund’s prospectus or from your financial intermediary. Investors investing in
the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries.
|
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|
|
|
|
|
|
|
|
|
| |
Shareholder
Fees |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(fees paid directly from
your investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
2.25% |
|
|
|
|
None |
| |
|
|
None |
|
Maximum
Deferred Sales Charge (CDSC) (Load)(1) (as a percentage
of the lower of original purchase price or NAV) |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Redemption
Fee |
|
|
|
None |
| |
|
|
None |
| |
|
|
None |
|
|
|
| |
|
Annual
Fund Operating Expenses |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(Expenses that you pay each
year as a percentage of the value of your investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Management
Fees |
|
|
|
0.65% |
| |
|
|
0.65% |
| |
|
|
0.65% |
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
0.25% |
| |
|
|
1.00% |
| |
|
|
None |
|
Other
Expenses |
|
|
|
0.40% |
| |
|
|
0.39% |
| |
|
|
0.40% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
1.30% |
| |
|
|
2.04% |
| |
|
|
1.05% |
|
Fee
Waiver and/or Expense Reimbursement(2) |
|
|
|
(0.38)% |
| |
|
|
(0.37)% |
| |
|
|
(0.38)% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
|
0.92% |
| |
|
|
1.67% |
| |
|
|
0.67% |
|
(1) |
For Class A Shares, the CDSC is imposed only where
shares are purchased without a front-end sales charge and subsequently
redeemed within eighteen months of purchase. For Class C Shares, the
CDSC is imposed only on shares redeemed within one year of
purchase. |
(2) |
Ashmore
Investment Advisors Limited has contractually agreed to waive its fees or
reimburse the Fund for other expenses to the extent that Total Annual Fund
Operating Expenses (other than Acquired Fund Fees and Expenses, interest
expense, taxes, extraordinary expenses, custodial credits, transfer agency
credits and expense offset arrangements) for the Fund’s Class A
Shares exceed 0.92%, for the Fund’s Class C Shares exceed 1.67% and
for the Fund’s Institutional Class Shares exceed 0.67% of the Fund’s
average daily net assets attributable to the share class (the “Expense
Limitation Agreement”). The expense limitation arrangement may be
terminated before February 28, 2025 only
by the Board of Trustees. Under the Expense Limitation Agreement, the
Investment Manager may recoup any amounts waived or reimbursed for 36
months following the end of the month when the waiver or reimbursement
occurred, provided total expenses, including such recoupment, do not
exceed the applicable annual expense limit, and further that expenses may
be recouped only if and to the extent that the expense ratio is less than
the annual expense limit in place at the time such expenses were waived or
reimbursed. |
22
Examples
These
Examples are intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Examples assume that you invest
$10,000 in the noted class of shares of the Fund for the time periods indicated,
your investment has a 5% return each year and the Fund’s operating expenses
remain the same. Class C Shares automatically convert to Class A
Shares after eight years. The expense example for Class C Shares for the
ten-year period reflects the conversion to Class A Shares. The Examples are
based, for the first year, on Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement and, for all other periods, on Total Annual
Fund Operating Expenses. Although your actual costs may be higher or lower, the
Examples show what your costs would be based on these
assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Example:
Assuming you redeem your shares at the end of each
period |
|
Example:
Assuming you do not redeem your
shares |
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Class A
Shares |
|
|
$ |
317 |
| |
|
$ |
591 |
| |
|
$ |
886 |
| |
|
$ |
1,725 |
| |
|
$ |
317 |
| |
|
$ |
591 |
| |
|
$ |
886 |
| |
|
$ |
1,725 |
|
Class C
Shares |
|
|
$ |
270 |
| |
|
$ |
604 |
| |
|
$ |
1,064 |
| |
|
$ |
2,149 |
| |
|
$ |
170 |
| |
|
$ |
604 |
| |
|
$ |
1,064 |
| |
|
$ |
2,149 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Institutional
Class Shares (whether or not shares are redeemed) |
|
|
|
$ |
68 |
| |
|
$ |
296 |
| |
|
$ |
542 |
| |
|
$ |
1,248 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, adversely affect the
Fund’s investment performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 49% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks to achieve its objective by investing principally in short-term debt
instruments of, and derivative instruments related to, Sovereign,
Quasi-Sovereign and Corporate issuers of Emerging Market Countries (as defined
below) denominated exclusively in Hard Currencies (i.e., the U.S. dollar or any
currency of a nation in the G-7). The Fund normally seeks to maintain a weighted
average portfolio duration of between 1 and 3 years. The Fund has no
restrictions on individual security
duration.
Duration is one measure of the expected life of a
fixed income instrument that is used to determine the sensitivity of a
security’s price to changes in interest rates. Securities with longer durations
tend to be more sensitive to changes in interest rates, usually making them more
volatile than securities with shorter durations. Accordingly, bond funds with
longer average portfolio durations will generally be more sensitive to changes
in interest rates than bond funds with shorter average portfolio durations. By
way of example, the price of a bond fund with a duration of five years would be
expected to fall approximately 5% if interest rates rose by one percentage
point.
Sovereigns are governments of Emerging Market
Countries. For these purposes, Sovereigns may include EM Supra-Nationals.
Quasi-Sovereigns are governmental entities, agencies and other issuers that are
more than 50% owned, directly or indirectly, by a Sovereign, or whose
obligations are guaranteed by a Sovereign. For these purposes, governmental
entities include a province, a city and local or regional governmental bodies. A
Corporate issuer is any issuer other than a Sovereign or a Quasi-Sovereign that
is located in an Emerging Market Country or, an issuer deriving at least 50% of
its revenues or profits from goods produced or sold, investments made, or
services performed in one or more Emerging Market Countries or that has at least
50% of its assets in one or more Emerging Market Countries. Emerging Market
Country means any country included by the International Monetary Fund in its
list of Emerging and Developing Economies, any country which is considered a
low-income, lower-middle-income, or upper-middle-income economy by the World
Bank, and all countries represented in any widely-recognized index of emerging
market securities (e.g., the relevant indices in the family of J.P. Morgan
Corporate Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets Index,
J.P. Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond
Index—Emerging Markets and MSCI Emerging and Frontier Markets Index).
The
Fund may invest in debt instruments of all types, whether subordinated or
unsubordinated, secured or unsecured, quoted or unquoted, rated or unrated, or
floating rate or fixed rate. These may include, without limitation, bonds,
debentures, notes, convertible securities, commercial paper, loans and related
assignments and participations, bank certificates of deposit,
fixed
23
time
deposits, bankers’ acceptances, and money market instruments, including money
market funds denominated in U.S. dollars or other currencies. The Fund may
invest in companies of any market capitalization, and its allocations among
small-, mid- and large-capitalization issuers may vary significantly over
time.
The
Fund may invest in obligations of any credit quality, including obligations that
are in default or that are subject to insolvency proceedings. The Fund may
invest without limitation in debt securities that are related below investment
or that are judged by the Investment Manager to be of comparable quality (i.e., “junk
bonds”).
The
Fund is a “non-diversified” fund, which means that it may invest a relatively
large portion of its assets in a single issuer or a small number of issuers in
comparison to a fund that is
“diversified.”
The
Fund may utilize various derivative instruments and related strategies,
including to gain exposure to one or more of the issuers referred to above or
other assets. The Fund may utilize derivatives of all types and may invest in,
without limitation, call and put options (including options on futures
contracts), futures and forward contracts and swap agreements (including total
return, interest rate, and credit default swaps), credit-linked notes,
structured notes and other related instruments with respect to individual
currencies, bonds, and securities of any kind, indices and baskets of
securities, interest rates and currencies as part of its principal investment
strategies. The Fund may use derivatives for hedging or efficient portfolio
management purposes, but may also use them to increase the Fund’s investment
exposure beyond that which it could achieve by investing directly in more
conventional securities. The Fund may invest in currency-related transactions,
such as currency forward transactions (including deliverable and non-deliverable
forwards), currency futures transactions and currency options transactions, and
may also invest directly in foreign currencies, in each case for hedging or
other investment purposes.
The
Fund may invest in convertible debt instruments and equity securities related to
convertible securities or warrants the Fund holds or has held, as well as
acquire and hold equity securities, including warrants, resulting from debt
conversion or restructuring. The Fund may invest in the securities of other
investment companies, including exchange-traded funds (“ETFs”) and other pooled
vehicles, if the investment companies invest principally in the types of
investments in which the Fund may invest directly. The Fund may also lend its
portfolio securities, borrow money for investment and other purposes, and enter
into repurchase and reverse repurchase agreement
transactions.
The
Fund will not invest more than 35% of its net assets in any one Emerging Market
Country.
In
managing the Fund, the Investment Manager’s fixed income and asset allocation
investment committee (the “Investment Committee”), together with the relevant
portfolio managers (together with the Investment Committee, the “Investment
Team”), employs a largely top-down, active and value-driven investment approach
in analyzing emerging markets and currencies. The Fund’s investment approach
includes an emphasis on the influence of politics (both local and
international). The Investment Team combines this top-down approach with an
analytically-driven, bottom-up approach to making purchase and sale decisions
with respect to individual corporate credits. The Investment Team seeks to
invest in a portfolio of short duration fixed-income securities in an effort to
limit the Fund’s exposure to interest rate risk. The Investment Team seeks
opportunities in selected emerging markets that it believes may benefit from
significant positive changes, such as political and economic reforms, increases
in capital inflows and investor confidence, and seeks to invest in issuers in
government and Corporate sectors it expects will benefit from such developments
and associated economic development and growth. The Investment Team’s investment
process focuses on global and emerging markets fundamentals and considers
factors such as liquidity and risk management at the macro level. This approach
utilizes the Investment Manager’s broad and current knowledge of important
investment areas in various Emerging Market Countries gained, in part, through
research, experience, long-standing relationships with reliable local firms and,
where appropriate, visits by its investment personnel to countries in their
respective regions of responsibility.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in bonds and other debt instruments
issued by Sovereign, Quasi-Sovereign or Corporate issuers of Emerging
Market
24
Countries.
The Fund’s investments in derivatives and other synthetic instruments that have
economic characteristics similar to the investments described above will be
counted toward satisfaction of the Fund’s 80% investment
policy.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the bid/asked spread on purchases and sales of
securities, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may
result in higher taxes for you if your Fund shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Examples, may adversely affect the Fund’s investment
performance.
Principal
Risks
It is possible
to lose money on an investment in the Fund.The Fund will
be affected by the investment decisions, techniques and risk analyses of the
Fund’s Investment Manager and there is no guarantee that the Fund will achieve
its investment objective. The principal risks of investing in the Fund, which
could adversely affect its net asset value, yield and total return are (in
alphabetical order after the first seven risks):
|
• |
|
Emerging Markets Risk: Compared to
foreign developed markets, investing in emerging markets may involve
heightened volatility, greater political, regulatory, legal and economic
uncertainties, less liquidity, dependence on particular commodities or
international aid, high levels of inflation, greater custody risk, and
certain special risks associated with smaller
companies; |
|
• |
|
Foreign Investment Risk: Investments in
foreign (non-U.S.) issuers, directly or through use of depositary
receipts, may be negatively affected by adverse political, regulatory,
economic, market or other developments affecting issuers located in
foreign countries, currency exchange rates or regulations, or foreign
withholding or other taxes, and investing in foreign securities may result
in the Fund experiencing more rapid and extreme changes in value than a
fund that invests exclusively in securities of U.S.
issuers; |
|
• |
|
High Yield Risk: Below investment grade
securities and unrated securities of similar credit quality (commonly
known as “high yield” securities or “junk bonds”) are subject to greater
levels of credit and liquidity risks than higher quality securities, and
are considered predominantly speculative with respect to the issuer’s
continuing ability to make principal and interest
payments; |
|
• |
|
Geographic Focus Risk: The Fund may be
particularly susceptible to economic, political or regulatory events
affecting particular countries or regions to the extent the Fund focuses
its investments in such countries or
regions; |
|
• |
|
Currency Risk: Foreign (non-U.S.)
currencies may decline in value relative to the U.S. dollar and adversely
affect the value of the Fund’s investments in foreign currencies,
securities denominated in foreign currencies or derivatives that provide
exposure to foreign currencies; |
|
• |
|
Issuer Risk: The value of a security or
instrument may decline for reasons directly related to the issuer, such as
management performance, financial leverage and reduced demand for the
issuer’s goods or services; |
|
• |
|
Credit Risk: The Fund could lose money if
the issuer or counterparty is unable or unwilling to meet its financial
obligations, and the lack of ability, or perceived lack of ability, of the
issuer to make timely payments of interest and/or principal will
negatively affect the value of the security or
instrument; |
|
• |
|
Counterparty and Third Party Risk:
Transactions involving a counterparty to a derivative contract,
repurchase agreement, reverse repurchase agreement, or other financial
instrument, or to a third party responsible for servicing the instrument,
are subject to the credit risk of the counterparty or third party, and to
the counterparty’s or third party’s ability to perform in accordance with
the terms of the transaction; |
|
• |
|
Currency Management Strategies Risk:
Currency management strategies, including the use of forward
currency contracts and other derivatives, may substantially change the
Fund’s exposure to currencies and currency exchange rates and could result
in losses to the Fund if currencies do not perform as the Investment
Manager anticipates; |
|
• |
|
Derivatives Risk: Investing in derivative
instruments may be considered risky and involves correlation,
documentation, interest rate, leverage, liquidity, market, management,
interest rate and valuation risks and the risk of losing more than the
principal amount invested; |
|
• |
|
Inflation/Deflation Risk: The value of
the Fund’s investments may decline as inflation reduces the value of
money; conversely, if deflation reduces prices throughout the economy
there may be an adverse effect on the creditworthiness of issuers in whose
securities the Fund invests and an increase in the likelihood of issuer
defaults; |
25
|
• |
|
Interest Rate Risk: Debt and other
securities and instruments may decline in value due to changes in interest
rates, the extended duration of principal payments at below-market
interest rates, and/or prepayment. The value of most fixed income
securities will generally decline in response to increases in interest
rates; |
|
• |
|
Investments in Pooled Vehicles Risk:
Investing in another investment company or pooled vehicle subjects
the Fund to that company’s risks, and, in general, to a pro rata portion
of that company’s fees and expenses in addition to fees and expenses
charged by the Fund; |
|
• |
|
Issuer Non-Diversification Risk: The Fund
is “non-diversified” and is therefore more susceptible to the risks of
focusing investments in a small number of issuers, industries or foreign
currencies, and the risks of a single economic, political or regulatory
occurrence, than funds that are
“diversified”; |
|
• |
|
Large Shareholder Risk: Shareholders of
the Fund, such as institutional investors, may disrupt the efficient
management of the Fund’s operations by purchasing or redeeming Fund shares
in large amounts; |
|
• |
|
Leverage Risk: Use of leverage, including
through borrowings, derivatives and reverse repurchase agreements, will
increase volatility of the Fund’s investment portfolio and magnify the
Fund’s investment losses or
gains; |
|
• |
|
Liquidity Risk: Illiquid securities and
other instruments may be highly volatile, difficult to value, and
difficult to sell or close out at favorable prices or
times; |
|
• |
|
Management Risk: The Fund’s investment
return depends on the ability of the Investment Manager to manage the
Fund’s portfolio successfully; there is a risk that the Investment Manager
may be incorrect in its analysis of economic trends, currencies,
countries, industries, companies, and the relative attractiveness of asset
classes or other matters; |
|
• |
|
Market Risk: The value of securities and
instruments owned by the Fund may rise and fall, sometimes rapidly or
unpredictably, due to factors affecting securities markets generally or
particular industries or geographic areas, including terrorism, war,
natural disasters and the spread of infectious disease including epidemics
or pandemics; |
|
• |
|
Over-the-Counter Risk: Securities and
derivatives traded in over-the-counter markets may trade less frequently
and in limited volumes and thus exhibit more volatility and liquidity
risk, and the prices paid by the Fund in over-the-counter transactions may
include an undisclosed dealer
markup; |
|
• |
|
Portfolio Turnover Risk: If the Fund
frequently trades its securities, this will increase transaction costs,
may result in taxable capital gains, and may reduce the Fund’s investment
performance; |
|
• |
|
Small and Mid-Sized Companies Risk:
Investments in securities issued by small and mid-sized companies
tend to be more vulnerable to adverse developments than larger companies,
and may present increased volatility and liquidity risk;
and |
|
• |
|
Valuation Risk: Certain securities and
instruments may be difficult to value, and to the extent the Fund sells a
security or instrument at a price lower than that used to value the
security, its net asset value will be adversely
affected. |
An investment in the Fund is not a bank deposit and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Performance
Information
The bar chart and performance table that follow
provide some indication of the risks of investing in the Fund by showing changes
in the Fund’s Institutional Class Shares’ performance from year to year and
comparing the Fund’s average annual total returns with those of a broad-based
market index. The bar chart and the information immediately
below it show only the performance of the Fund’s Institutional
Class Shares. Although Class A and Class C Shares would have
similar annual returns (because all the Fund’s shares represent interests in the
same portfolio of securities), Class A and Class C performance would
be lower than Institutional Class performance because of the lower expenses
paid by Institutional Class Shares of the Fund. The bar
chart does not reflect any sales loads applicable to Class A or
Class C Shares. The performance shown in the bar chart
would be lower if it reflected sales charges applicable to Class A and
Class C Shares. Performance for Class A and Class C
Shares in the Average Annual Total Returns table reflects the impact of sales
charges. You may obtain the Fund’s updated performance
information by visiting the website at www.ashmoregroup.com or by calling
866-876-8294. As
with all mutual funds, the Fund’s past performance (before and after taxes) does
not predict how the Fund will perform in the
future.
26
Calendar
Year Total Return—Institutional Class
Ashmore
Emerging Markets Short Duration Fund % Total Return
The
best calendar
quarter return during the period shown above was 19.19% in the second quarter of 2020; the
worst was
(30.86)% in the first quarter of
2020.
Average
Annual Total Return
(For the period ended
December 31, 2023)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1-Year |
|
5-Year |
|
Since Inception Date of 06/24/14 |
Institutional
Class |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
13.39 |
% |
|
|
|
-6.69 |
% |
|
|
|
-0.11 |
% |
Return
after taxes on distributions |
|
|
|
9.61 |
% |
|
|
|
‑9.57 |
% |
|
|
|
‑3.40 |
% |
Return
after taxes on distributions and sale of Fund shares |
|
|
|
7.79 |
% |
|
|
|
‑5.86 |
% |
|
|
|
‑1.19 |
% |
JP
Morgan CEMBI BD 1-3 Year (reflects no deduction for fees, expenses,
or taxes) |
|
|
|
8.00 |
% |
|
|
|
2.71 |
% |
|
|
|
2.83 |
% |
|
|
| |
|
|
1-Year |
|
5-Year |
|
Since Inception Date of 09/23/14 |
Class A |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
10.58 |
% |
|
|
|
-7.66 |
% |
|
|
|
-0.73 |
% |
JP
Morgan CEMBI BD 1-3 Year (reflects no deduction for fees, expenses,
or taxes) |
|
|
|
8.00 |
% |
|
|
|
2.71 |
% |
|
|
|
2.92 |
% |
|
|
| |
|
|
1-Year |
|
5-Year |
|
Since Inception Date of 06/13/17 |
Class C |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
10.97 |
% |
|
|
|
-7.67 |
% |
|
|
|
-5.33 |
% |
JP
Morgan CEMBI BD 1-3 Year (reflects no deduction for fees, expenses,
or taxes) |
|
|
|
8.00 |
% |
|
|
|
2.71 |
% |
|
|
|
2.59 |
% |
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown, and after-tax returns shown are
not relevant to investors who hold their Fund shares through tax-advantaged
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Institutional
Class Shares only and will vary for Class A and Class C
Shares.
Management
of the Fund
Investment Manager
Ashmore
Investment Advisors Limited (“the Investment Manager”)
27
Investment Team
Mark
Coombs, Chief Executive Officer and Chairman of the Investment Committee;
Ricardo Xavier, Deputy Chairman of the Investment Committee; Herbert Saller,
Senior Portfolio Manager and Member of the Investment Committee; Robin Forrest,
Senior Portfolio Manager and Member of the Investment Committee; Cemil Urganci,
Senior Portfolio Manager and Member of the Investment Committee; and Fernando
Assad, Senior Portfolio Manager and Member of the Investment Committee, are
primarily responsible for the day-to-day management of the Fund.
Mr. Forrest has participated in the management of the Fund since 2014;
Mr. Assad has participated in the management of the Fund since 2016; and
Mr. Urganci has participated in the management of the Fund since May 2023.
Each of the other members of the Investment Team has participated in the
management of the Fund since its inception in 2014.
Purchase
and Sale of Fund Shares
The
minimum initial investment for Class A and Class C Shares is $1,000
and the minimum subsequent investment is $50. The minimum initial investment for
Institutional Class Shares is $1,000,000 and the minimum subsequent
investment is $5,000. These minimums may be waived or modified by the Fund or
the Distributor, including for certain financial intermediaries. Investors
investing in the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries. You may sell (redeem) shares on any
day the New York Stock Exchange is open through your broker-dealer or other
financial intermediary (if applicable), or if you hold an account directly with
the Fund by calling 866-876-8294 or by sending a letter of instruction to
Ashmore Funds c/o Northern Trust Company, PO Box 4766, Chicago, IL 60680-4766.
If your shares are held in the name of a financial intermediary, those shares
may only be sold through that financial intermediary.
Tax
Information
The
Fund normally distributes net investment income and net realized capital gains
to shareholders. These distributions are generally taxable to you as ordinary
income or capital gains, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan or an individual retirement account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund, the Distributor, the Investment Manager
or their affiliates may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
28
Ashmore
Emerging Markets Active Equity Fund
Investment
Objective
The
Fund seeks long-term capital appreciation.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell Class A, Class C or Institutional Class Shares of the
Fund. You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below. You may
qualify for sales charge discounts on a purchase of Class A Shares if you
and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of
the Funds. More information about these and other discounts is
available in the “Classes of Shares” section beginning on page 138 of the
Fund’s prospectus or from your financial intermediary. Investors investing in
the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shareholder
Fees |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(fees paid directly from
your investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
5.25% |
|
|
|
|
None |
|
|
|
|
None |
|
Maximum
Deferred Sales Charge (CDSC) (Load)(1) (as a percentage
of the lower of original purchase price or NAV) |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Redemption
Fee |
|
|
|
None |
|
|
|
|
None |
|
|
|
|
None |
|
|
|
| |
|
Annual Fund Operating
Expenses |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(Expenses that you pay each
year as a percentage of the value of your investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Management
Fees |
|
|
|
1.00% |
| |
|
|
1.00% |
| |
|
|
1.00% |
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
0.25% |
| |
|
|
1.00% |
| |
|
|
None |
|
Other
Expenses |
|
|
|
0.44% |
| |
|
|
0.79% |
| |
|
|
0.61% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
1.69% |
| |
|
|
2.79% |
| |
|
|
1.61% |
|
Fee
Waiver and/or Expense Reimbursement(2) |
|
|
|
(0.42)% |
| |
|
|
(0.77)% |
| |
|
|
(0.59)% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
|
1.27% |
| |
|
|
2.02% |
| |
|
|
1.02% |
|
(1) |
For Class A Shares, the CDSC is imposed only where
shares are purchased without a front-end sales charge and subsequently
redeemed within eighteen months of purchase. For Class C Shares, the
CDSC is imposed only on shares redeemed within one year of
purchase. |
(2) |
Ashmore
Investment Advisors Limited has contractually agreed to waive its fees or
reimburse the Fund for other expenses to the extent that Total Annual Fund
Operating Expenses (other than Acquired Fund Fees and Expenses, interest
expense, taxes, extraordinary expenses, custodial credits, transfer agency
credits and expense offset arrangements) for the Fund’s Class A
Shares exceed 1.27%, for the Fund’s Class C Shares exceed 2.02% and
for the Fund’s Institutional Class Shares exceed 1.02% of the Fund’s
average daily net assets attributable to the share class (the “Expense
Limitation Agreement”). The expense limitation arrangement may be
terminated before February 28, 2025 only
by the Board of Trustees. Under the Expense Limitation Agreement, the
Investment Manager may recoup any amounts waived or reimbursed for 36
months following the end of the month when the waiver or reimbursement
occurred, provided total expenses, including such recoupment, do not
exceed the applicable annual expense limit, and further that a prior
fiscal year’s expenses may be recouped only if and to the extent that the
expense ratio at the time of such recoupment is less than the annual
expense limit in place at the time such expenses were waived or
reimbursed. |
Examples
These
Examples are intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Examples assume that you invest
$10,000 in the noted class of shares of the Fund for the time periods
indicated,
29
your
investment has a 5% return each year and the Fund’s operating expenses remain
the same. Class C Shares automatically convert to Class A Shares after
eight years. The expense example for Class C Shares for the ten-year period
reflects the conversion to Class A Shares. The Examples are based, for the
first year, on Total Annual Fund Operating Expenses After Fee Waiver and/or
Expense Reimbursement and, for all other periods, on Total Annual Fund Operating
Expenses. Although your actual costs may be higher or lower, the Examples show
what your costs would be based on these assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Example: Assuming you redeem your shares at the end of each
period |
|
Example:
Assuming you do not redeem your
shares |
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Class A
Shares |
|
|
$ |
648 |
| |
|
$ |
991 |
| |
|
$ |
1,357 |
| |
|
$ |
2,385 |
| |
|
$ |
648 |
| |
|
$ |
991 |
| |
|
$ |
1,357 |
| |
|
$ |
2,385 |
|
Class C
Shares |
|
|
$ |
305 |
| |
|
$ |
792 |
| |
|
$ |
1,406 |
| |
|
$ |
2,797 |
| |
|
$ |
205 |
| |
|
$ |
792 |
| |
|
$ |
1,406 |
| |
|
$ |
2,797 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Institutional
Class Shares (whether or not shares are redeemed) |
|
|
|
$ |
104 |
| |
|
$ |
450 |
| |
|
$ |
820 |
| |
|
$ |
1,861 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, adversely affect the
Fund’s investment performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 189% of the average value of its
portfolio.
Principal
Investment Strategies
The Fund seeks to achieve its objective by
investing principally in equity securities and equity-related investments of
Emerging Market Issuers (as defined below), which may be denominated in any
currency, including the local currency of the issuer. An Emerging Market Issuer is an issuer that is either
domiciled in an Emerging Market Country, or an issuer deriving at least 50% of
its revenues in or from one or more Emerging Market Countries. Emerging Market
Country means any country included by the International Monetary Fund in its
list of Emerging and Developing Economies, any country which is considered a
low-income, lower-middle-income, or upper-middle-income economy by the World
Bank, and all countries represented in any widely-recognized index of emerging
market securities (e.g., the relevant indices in the family of J.P. Morgan
Corporate Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets Index,
J.P. Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond
Index—Emerging Markets and MSCI Emerging and Frontier Markets Index).
The
Fund may invest in equity securities and equity-related investments of all types
and denominated in any currency, including voting and non-voting common stock,
common stock issued to special shareholder classes, preferred stock, depositary
receipts, including global and American depositary receipts, warrants,
securities convertible into equity securities, other equity-related investments
whose returns vary on the basis of the issuer’s profitability (e.g.,
participation notes), as well as securities of other investment companies,
including exchange-traded funds (“ETFs”) and other pooled vehicles. The Fund may
invest in companies of any market capitalization, and its allocations among
small-, mid- and large-capitalization issuers may vary significantly over time.
The Fund may invest through investment funds, pooled accounts or other
investment vehicles designed to permit investments in a portfolio of equity
securities listed in a particular Emerging Market Country or region,
particularly in the case of countries in which such an investment vehicle is the
exclusive or main vehicle for foreign portfolio investment. The Fund’s
investments may include securities of companies that are in the process of being
privatized by a government and securities of companies that are traded in
unregulated over-the-counter markets or other types of unlisted securities
markets. The Fund may invest in initial public
offerings.
The
Fund may utilize various derivative instruments and related strategies to gain
exposure to one or more issuers or other assets. The Fund may utilize
derivatives of all types and may invest in, without limitation, call and put
options (including options on futures contracts); futures and forward contracts,
including contracts related to currencies; and swap agreements (including total
return and interest rate swaps); other related instruments with respect to
individual stocks and other securities, indices and baskets of securities,
interest rates and currencies; participation notes; structured notes; exchange
traded notes; and credit-linked notes as part of its principal investment
strategies. The Fund may enter into foreign currency forward contracts as well
as foreign currency futures and options contracts with respect to any currency
in which it has existing investments or has contracted to make investments in an
attempt to hedge currency exchange risk. The Fund
expects
30
to
primarily use derivatives for hedging or efficient portfolio management
purposes, but may also use them to increase the Fund’s investment exposure
beyond that which it could achieve by investing directly in more conventional
securities. The Fund may also invest directly in foreign currencies for hedging
or other investment purposes.
In
managing the Fund’s portfolio, the Investment Manager seeks to identify equity
investments within Emerging Markets. The Fund is managed actively, utilizing a
top-down approach, taking into account macro- and micro-economic insights,
supplemented by bottom-up research.
Macro-economic
insights are based on the Investment Manager’s economic research on Emerging
Market Countries. Micro-economic insights are derived from an analysis of
aggregate earnings, and country- and industry-specific factors, which include
demand/supply, level of competition, regulatory environment and interest
rates.
Macro-
and micro-economic insights are together used to identify areas within the
investable universe that the Investment Manager believes exhibit attractive
fundamentals. Within these attractive areas, bottom-up research is conducted to
select particular instruments based on anticipated return potential. Bottom-up
research includes analysis of businesses, earnings expectations, underlying
business assumptions and risks, and takes into account market factors including
market positioning and capital flows.
The
Fund’s portfolio is constructed from equity securities with what the Investment
Manager believes to have attractive risk-adjusted upside potential. The Fund’s
active weighting of investments across countries, industries and sectors
reflects the Investment Manager’s top-down preferences, which may vary
significantly over time. The overall liquidity, volatility and beta of the
portfolio are also informed by the Investment Manager’s macro-economic insights.
The number of individual securities held in the Fund’s portfolio may vary over
time based on the outlook of the portfolio managers, market conditions and other
factors, and the Fund is not managed to have a particular number or range of
portfolio holdings.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in equity securities of Emerging Market
Issuers. The Fund’s investments in derivatives and other synthetic instruments
that have economic characteristics similar to these instruments will be counted
toward the Fund’s 80% investment policy. For example, futures contracts may be
used to obtain investment exposure equal to a portion of the Fund’s cash
positions.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the brokerage commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, may adversely affect the
Fund’s investment performance.
Principal
Risks
It is possible
to lose money on an investment in the Fund. The Fund
will be affected by the investment decisions, techniques and risk analyses of
the Fund’s Investment Manager and there is no guarantee that the Fund will
achieve its investment objective. The principal risks of investing in the Fund,
which could adversely affect its net asset value, yield and total return are (in
alphabetical order after the first five risks):
|
• |
|
Equity Securities Risk: Equity securities
may react more strongly to changes in an issuer’s financial condition or
prospects than other securities of the same
issuer; |
|
• |
|
Emerging Markets Risk: Compared to
foreign developed markets, investing in emerging markets may involve
heightened volatility, greater political, regulatory, legal and economic
uncertainties, less liquidity, dependence on particular commodities or
international aid, high levels of inflation, greater custody risk, and
certain special risks associated with smaller
companies; |
|
• |
|
Foreign Investment Risk: Investments in
foreign (non-U.S.) issuers, directly or through use of depositary
receipts, may be negatively affected by adverse political, regulatory,
economic, market or other developments affecting issuers located in
foreign countries, currency exchange rates or regulations, or foreign
withholding or other taxes, and investing in foreign securities may result
in the Fund experiencing more rapid and extreme changes in value than a
fund that invests exclusively in securities of U.S.
issuers; |
31
|
• |
|
Focused Investment Risk: Focusing a
fund’s investments in a limited number of issuers, sectors or industries
increases risk and the volatility of the value of a fund’s shares. The
Fund may be particularly susceptible to economic, political, regulatory or
other events affecting the issuers, sectors or industries to the extent it
focuses its investments; |
|
• |
|
Geographic Focus Risk: The Fund may be
particularly susceptible to economic, political or regulatory events
affecting particular countries or regions to the extent the Fund focuses
its investments in such countries or
regions; |
|
• |
|
Convertible Securities Risk: Securities
that are convertible into preferred or common stocks are subject to the
risks of both debt and equity securities and the risk of changing in value
at a different rate than the underlying stocks. Convertible securities are
subject to greater levels of credit and liquidity risk, may be speculative
and may decline in value due to changes in interest rates or an issuer’s
or counterparty’s deterioration or
default; |
|
• |
|
Counterparty and Third Party Risk:
Transactions involving a counterparty to a derivative contract,
repurchase agreement, reverse repurchase agreement, or other financial
instrument, or to a third party responsible for servicing the instrument,
are subject to the credit risk of the counterparty or third party, and to
the counterparty’s or third party’s ability to perform in accordance with
the terms of the transaction; |
|
• |
|
Credit Risk: The Fund could lose money if
the issuer or counterparty is unable or unwilling to meet its financial
obligations, and the lack of ability, or perceived lack of ability, of the
issuer to make timely payments of interest and/or principal will
negatively affect the value of the security or
instrument; |
|
• |
|
Currency Management Strategies Risk:
Currency management strategies, including the use of forward
currency contracts and other derivatives, may substantially change the
Fund’s exposure to currencies and currency exchange rates and could result
in losses to the Fund if currencies do not perform as the Investment
Manager anticipates; |
|
• |
|
Currency Risk: Foreign (non-U.S.)
currencies may decline in value relative to the U.S. dollar and adversely
affect the value of the Fund’s investments in foreign currencies,
securities denominated in foreign currencies or derivatives that provide
exposure to foreign currencies; |
|
• |
|
Derivatives Risk: Investing in derivative
instruments may be considered risky and involves correlation,
documentation, interest rate, leverage, liquidity, market, management,
interest rate and valuation risks and the risk of losing more than the
principal amount invested; |
|
• |
|
Frontier Markets Risk: Frontier market
countries are emerging market countries, but generally have smaller
economies or less mature capital markets than more developed emerging
markets, and, as a result, the risks of investing in emerging market
countries are magnified in frontier countries. The markets of frontier
countries typically have low trading volumes and the potential for extreme
price volatility and illiquidity. This volatility may be further
heightened by the actions of a few major investors. For example, a
substantial increase or decrease in cash flows of mutual funds investing
in these markets could significantly affect local stock prices and,
therefore, the net asset value of Fund shares. These factors make
investing in frontier countries significantly riskier than in other
countries, including other emerging market countries, and any one of them
could cause the net asset value of the Fund’s shares to
decline; |
|
• |
|
Inflation/Deflation Risk: The value of
the Fund’s investments may decline as inflation reduces the value of
money; conversely, if deflation reduces prices throughout the economy
there may be an adverse effect on the creditworthiness of issuers in whose
securities the Fund invests and an increase in the likelihood of issuer
defaults; |
|
• |
|
Interest Rate Risk: Debt and other
securities and instruments may decline in value due to changes in interest
rates, the extended duration of principal payments at below-market
interest rates, and/or prepayment. The value of most fixed income
securities will generally decline in response to increases in interest
rates; |
|
• |
|
Investments in Pooled Vehicles Risk:
Investing in another investment company or pooled vehicle subjects
the Fund to that company’s risks, and, in general, to a pro rata portion
of that company’s fees and expenses in addition to fees and expenses
charged by the Fund; |
|
• |
|
IPO Risk: Securities offered in initial
public offerings (IPOs) are subject to many of the same risks of investing
in small companies and often to a heightened degree, their values may be
highly volatile, they have no trading history and information about the
issuer may have been available for only limited
periods; |
|
• |
|
Issuer Risk: The value of a security or
instrument may decline for reasons directly related to the issuer, such as
management performance, financial leverage and reduced demand for the
issuer’s goods or services; |
32
|
• |
|
Large Shareholder Risk: Shareholders of
the Fund, such as institutional investors, may disrupt the efficient
management of the Fund’s operations by purchasing or redeeming Fund shares
in large amounts; |
|
• |
|
Leverage Risk: Use of leverage, including
through borrowings, derivatives and reverse repurchase agreements, will
increase volatility of the Fund’s investment portfolio and magnify the
Fund’s investment losses or
gains; |
|
• |
|
Liquidity Risk: Illiquid securities and
other instruments may be highly volatile, difficult to value, and
difficult to sell or close out at favorable prices or
times; |
|
• |
|
Management Risk: The Fund’s investment
return depends on the ability of the Investment Manager to manage the
Fund’s portfolio successfully; there is a risk that the Investment Manager
may be incorrect in its analysis of economic trends, currencies,
countries, industries, companies, and the relative attractiveness of asset
classes or other matters; |
|
• |
|
Market Risk: The value of securities and
instruments owned by the Fund may rise and fall, sometimes rapidly or
unpredictably, due to factors affecting securities markets generally or
particular industries or geographic areas, including terrorism, war,
natural disasters and the spread of infectious disease including epidemics
or pandemics; |
|
• |
|
Over-the-Counter Risk: Securities and
derivatives traded in over-the-counter markets may trade less frequently
and in limited volumes and thus exhibit more volatility and liquidity
risk, and the prices paid by the Fund in over-the-counter transactions may
include an undisclosed dealer
markup; |
|
• |
|
Portfolio Turnover Risk: If the Fund
frequently trades its securities, this will increase transaction costs,
may result in taxable capital gains, and may reduce the Fund’s investment
performance; |
|
• |
|
Small and Mid-Sized Companies Risk:
Investments in securities issued by small and mid-sized companies
tend to be more vulnerable to adverse developments than larger companies,
and may present increased volatility and liquidity risk;
and |
|
• |
|
Valuation Risk: Certain securities and
instruments may be difficult to value, and to the extent the Fund sells a
security or instrument at a price lower than that used to value the
security, its net asset value will be adversely
affected. |
An
investment in the Fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency.
Performance
Information
The bar chart and performance table that follow
provide some indication of the risks of investing in the Fund by showing changes
in the Fund’s Institutional Class Shares’ performance from year to year and
comparing the Fund’s average annual total returns with those of a broad-based
market index. The bar chart and the information immediately
below it show only the performance of the Fund’s Institutional
Class Shares. Although Class A and Class C Shares would have
similar annual returns (because all the Fund’s shares represent interests in the
same portfolio of securities), Class A and Class C performance would
be lower than Institutional Class performance because of the lower expenses
paid by Institutional Class Shares of the Fund. The bar
chart does not reflect any sales loads applicable to Class A or
Class C Shares. The performance shown in the bar chart
would be lower if it reflected sales charges applicable to Class A and
Class C Shares. Performance for Class A and Class C
Shares in the Average Annual Total Returns table reflects the impact of sales
charges. You may obtain the Fund’s updated performance
information by visiting the website at www.ashmoregroup.com or by calling
866-876-8294. As
with all mutual funds, the Fund’s past performance (before and after taxes) does
not predict how the Fund will perform in the
future.
33
Calendar
Year Total Return—Institutional Class
Ashmore
Emerging Markets Active Equity Fund % Total Return
The
best calendar
quarter return during the period shown above was 21.67% in the fourth quarter of 2020; the
worst was
(25.33)% in the first quarter of
2020.
Average
Annual Total Return
(For the period ended
December 31, 2023)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1-Year |
|
5-Year |
|
Since Inception Date of 11/01/16 |
Institutional
Class |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
6.02% |
| |
|
|
2.01% |
| |
|
|
3.32% |
|
Return
after taxes on distributions |
|
|
|
5.70% |
| |
|
|
-0.11% |
| |
|
|
0.82% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
|
3.98% |
| |
|
|
1.21% |
| |
|
|
1.98% |
|
MSCI
Emerging Markets Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
9.83% |
| |
|
|
3.68% |
| |
|
|
4.25% |
|
Class A |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
0.09% |
| |
|
|
0.62% |
| |
|
|
2.29% |
|
MSCI
Emerging Markets Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
9.83% |
| |
|
|
3.68% |
| |
|
|
4.25% |
|
Class C |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
3.92% |
| |
|
|
0.99% |
| |
|
|
2.31% |
|
MSCI
Emerging Markets Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
9.83% |
| |
|
|
3.68% |
| |
|
|
4.25% |
|
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown, and after-tax returns shown are
not relevant to investors who hold their Fund shares through tax-advantaged
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Institutional
Class Shares only and will vary for Class A and Class C
Shares.
Management
of the Fund
Investment Manager
Ashmore
Investment Advisors Limited (“the Investment Manager”)
Portfolio Managers
Fernando
Assad, portfolio manager, is primarily responsible for the day-to-day management
of the Fund. Mr. Assad has participated in the day-to-day management of the
Fund since 2016.
34
Purchase
and Sale of Fund Shares
The
minimum initial investment for Class A and Class C Shares is $1,000
and the minimum subsequent investment is $50. The minimum initial investment for
Institutional Class Shares is $1,000,000 and the minimum subsequent
investment is $5,000. These minimums may be waived or modified by the Fund or
the Distributor, including for certain financial intermediaries. Investors
investing in the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries. You may sell (redeem) shares on any
day the New York Stock Exchange is open through your broker-dealer or other
financial intermediary (if applicable), or if you hold an account directly with
the Fund by calling 866-876-8294 or by sending a letter of instruction to
Ashmore Funds c/o Northern Trust Company, PO Box 4766, Chicago, IL 60680-4766.
If your shares are held in the name of a financial intermediary, those shares
may only be sold through that financial intermediary.
Tax
Information
The
Fund normally distributes net investment income and net realized capital gains
to shareholders. These distributions are generally taxable to you as ordinary
income or capital gains, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan or an individual retirement account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund, the Distributor, the Investment Manager
or their affiliates may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
35
Ashmore
Emerging Markets Small-Cap Equity Fund
Investment
Objective
The
Fund seeks long-term capital appreciation.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell Class A, Class C or Institutional Class Shares of the
Fund. You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below. You may
qualify for sales charge discounts on a purchase of Class A Shares if you
and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of
the Funds. More information about these and other discounts is
available in the “Classes of Shares” section beginning on page 138 of the
Fund’s prospectus or from your financial intermediary. Investors investing in
the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shareholder
Fees |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(fees paid directly from
your investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
5.25% |
|
|
|
|
None |
| |
|
|
None |
|
Maximum
Deferred Sales Charge (CDSC) (Load)(1) (as a percentage
of the lower of original purchase price or NAV) |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Redemption
Fee |
|
|
|
None |
| |
|
|
None |
| |
|
|
None |
|
|
|
| |
|
Annual
Fund Operating Expenses |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(Expenses that you pay each
year as a percentage of the value of your investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Management
Fees |
|
|
|
1.25% |
| |
|
|
1.25% |
| |
|
|
1.25% |
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
0.25% |
| |
|
|
1.00% |
| |
|
|
None |
|
Other
Expenses |
|
|
|
1.72% |
| |
|
|
1.64% |
| |
|
|
1.71% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
3.22% |
| |
|
|
3.89% |
| |
|
|
2.96% |
|
Fee
Waiver and/or Expense Reimbursement(2) |
|
|
|
(1.70)% |
| |
|
|
(1.62)% |
| |
|
|
(1.69)% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
|
1.52% |
| |
|
|
2.27% |
| |
|
|
1.27% |
|
(1) |
For Class A Shares, the CDSC is imposed only where
shares are purchased without a front-end sales charge and subsequently
redeemed within eighteen months of purchase. For Class C Shares, the
CDSC is imposed only on shares redeemed within one year of
purchase. |
(2) |
Ashmore
Investment Advisors Limited has contractually agreed to waive its fees or
reimburse the Fund for other expenses to the extent that Total Annual Fund
Operating Expenses (other than Acquired Fund Fees and Expenses, interest
expense, taxes, extraordinary expenses, custodial credits, transfer agency
credits and expense offset arrangements) for the Fund’s Class A
Shares exceed 1.52%, for the Fund’s Class C Shares exceed 2.27% and
for the Fund’s Institutional Class Shares exceed 1.27% of the Fund’s
average daily net assets attributable to the share class (the “Expense
Limitation Agreement”). The expense limitation arrangement may be
terminated before February 28, 2025 only
by the Board of Trustees. Under the Expense Limitation Agreement, the
Investment Manager may recoup any amounts waived or reimbursed for 36
months following the end of the month when the waiver or reimbursement
occurred, provided total expenses, including such recoupment, do not
exceed the applicable annual expense limit, and further that expenses may
be recouped only if and to the extent that the expense ratio at the time
of such recoupment is less than the annual expense limit in place at the
time such expenses were waived or
reimbursed. |
Examples
These
Examples are intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Examples assume that you invest
$10,000 in the noted class of shares of the Fund for the time periods
indicated,
36
your
investment has a 5% return each year and the Fund’s operating expenses remain
the same. Class C Shares automatically convert to Class A Shares after
eight years. The expense example for Class C Shares for the ten-year period
reflects the conversion to Class A Shares. The Examples are based, for the
first year, on Total Annual Fund Operating Expenses After Fee Waiver and/or
Expense Reimbursement and, for all other periods, on Total Annual Fund Operating
Expenses. Although your actual costs may be higher or lower, the Examples show
what your costs would be based on these assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Example: Assuming you redeem your shares at the end of each
period |
|
Example:
Assuming you do not redeem your
shares |
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Class A
Shares |
|
|
$ |
672 |
| |
|
$ |
1,314 |
| |
|
$ |
1,980 |
| |
|
$ |
3,751 |
| |
|
$ |
672 |
| |
|
$ |
1,314 |
| |
|
$ |
1,980 |
| |
|
$ |
3,751 |
|
Class C
Shares |
|
|
$ |
330 |
| |
|
$ |
1,038 |
| |
|
$ |
1,864 |
| |
|
$ |
3,866 |
| |
|
$ |
230 |
| |
|
$ |
1,038 |
| |
|
$ |
1,864 |
| |
|
$ |
3,866 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Institutional
Class Shares (whether or not shares are redeemed) |
|
|
|
$ |
129 |
| |
|
$ |
756 |
| |
|
$ |
1,409 |
| |
|
$ |
3,160 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, adversely affect the
Fund’s investment performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 79% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks to achieve its objective by investing at least 80% of its net assets
in equity securities and equity-related investments of Small-Capitalization
Emerging Market Issuers (as defined below), which may be denominated in any
currency, including the local currency of the issuer. The Fund currently defines
a Small-Capitalization issuer as any issuer included in the MSCI Emerging Market
Small Cap Index at the time of purchase, as well as any issuer with a market
capitalization that is in the lowest 15% of the market capitalization range of
issuers included in the MSCI Emerging Markets Investible Market Index (IMI) at
the time of purchase (between $98.60 million and $3.53 billion as of
January 1, 2024). An Emerging Market
Issuer is an issuer that is located in an Emerging Market Country, or an issuer
deriving at least 50% of its revenues or profits from goods produced or sold,
investments made, or services performed in one or more Emerging Market Countries
or that has at least 50% of its assets in one or more Emerging Market Countries.
Emerging Market Country means any country included by the International Monetary
Fund in its list of Emerging and Developing Economies, any country which is
considered a low-income, lower-middle-income, or upper-middle-income economy by
the World Bank, and all countries represented in any widely-recognized index of
emerging market securities (e.g., the relevant indices in the family of J.P.
Morgan Corporate Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets
Index, J.P. Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond
Index—Emerging Markets and MSCI Emerging and Frontier Markets Index).
The
Fund may invest in equity securities and equity-related investments of all types
and denominated in any currency, including voting and non-voting common stock,
common stock issued to special shareholder classes, preferred stock, depositary
receipts, including global and American depositary receipts, warrants,
securities convertible into equity securities, other equity-related investments
whose returns vary on the basis of the issuer’s profitability (e.g., participation notes), as well as
securities of other investment companies, including exchange-traded funds
(“ETFs”) and other pooled vehicles. The Fund may invest through investment
funds, pooled accounts or other investment vehicles designed to permit
investments in a portfolio of equity securities listed in a particular Emerging
Market Country or region, particularly in the case of countries in which such an
investment vehicle is the exclusive or main vehicle for foreign portfolio
investment. The Fund’s investments may include securities of companies that are
in the process of being privatized by a government, securities of companies that
are traded in unregulated over-the-counter markets or other types of unlisted
securities markets, and unregistered securities issued in private placements.
The Fund may also invest in initial public offerings. Although the Fund focuses
on Small-Capitalization securities, it reserves the flexibility to invest a
portion of its assets in securities of medium-or large-capitalization issuers.
The Fund may utilize various derivative instruments and related strategies to
gain exposure to one or more issuers or other assets. The Fund may utilize
derivatives of all types and may invest in, without limitation, call and put
options (including options on futures contracts); futures and forward contracts,
including contracts related to currencies; and
37
swap
agreements (including total return and interest rate swaps); other related
instruments with respect to individual stocks and other securities, indices and
baskets of securities, interest rates and currencies; participation notes;
structured notes; exchange traded notes; and credit-linked notes as part of its
principal investment strategies. The Fund may enter into foreign currency
forward contracts as well as foreign currency futures and options contracts with
respect to any currency in which it has existing investments or has contracted
to make investments in an attempt to hedge currency exchange risk. The Fund
expects to primarily use derivatives for hedging or efficient portfolio
management purposes, but may also use them to increase the Fund’s investment
exposure beyond that which it could achieve by investing directly in more
conventional securities. The Fund may also invest directly in foreign currencies
for hedging or other investment
purposes.
In
managing the Fund’s portfolio, the Investment Manager uses principally a
bottom-up approach to identify particular securities for investment within
Emerging Market Countries. The Investment Manager’s investment approach is
driven by fundamental value and involves a rigorous, systemic and value-oriented
security selection process. The portfolio manager analyzes the universe of
available Small-Capitalization Emerging Market equity investments in an attempt
to identify issuers that are undervalued relative to their long-term growth
prospects. Potential candidates are systematically screened for fundamental
value based on a number of factors, such as price to earnings ratio, price to
future growth ratio, price to book value ratio, price to cash flow ratio, free
cash flow, return on equity, debt to equity ratio, earnings growth and earnings
momentum. Attractive candidates undergo a more rigorous review to assess the
issuer’s long-term prospects, including with respect to management strength,
market outlook, competitiveness, regulatory changes, restructuring and expansion
plans, profitability, financial viability, interest coverage and hidden assets.
As part of this process, the Investment Manager conducts visits to various
companies in the small-capitalization segment of Emerging Market Countries and
utilizes a proprietary database and earnings forecasts to compare applicable
industries and issuers. The screening process is designed, in part, to avoid
investments deemed by the portfolio manager to have unacceptable risk factors.
The portfolio manager also reviews and takes into account overall Fund exposures
to particular Emerging Market Countries and sectors in an effort to construct a
portfolio that provides adequate diversification and risk controls. Taking into
account the results of this screening process, the portfolio manager selects
particular investments designed to produce a diversified equity portfolio of
Small-Capitalization Emerging Market
Issuers.
The
Investment Manager may in its sole discretion consider selling a particular
security held in the Fund’s portfolio when the factors that led to its
investment change adversely or when a more attractive candidate is
identified.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, including
obligations of Emerging Market Issuers and countries, cash, cash equivalents,
money market funds, and other similar funds. The Fund may not achieve its
investment objective when it does so. The Fund may also invest a portion of its
assets in such investments and instruments on a short term or temporary basis to
manage its cash positions or otherwise manage the Fund
efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in equity securities and other
equity-related investments of Small-Capitalization Emerging Market Issuers. The
Fund’s investments in derivatives and other synthetic instruments that have
economic characteristics similar to these investments will be counted toward
satisfaction of the Fund’s 80% investment
policy.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the brokerage commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, may adversely affect the
Fund’s investment performance.
Principal
Risks
It is possible
to lose money on an investment in the Fund. The Fund
will be affected by the investment decisions, techniques and risk analyses of
the Fund’s Investment Manager and there is no guarantee that the Fund will
achieve its investment objective. The principal risks of investing in the Fund,
which could adversely affect its net asset value, yield and total return are (in
alphabetical order after the first six risks):
|
• |
|
Small and Mid-Sized Companies Risk:
Investments in securities issued by small and mid-sized companies
tend to be more vulnerable to adverse developments than larger companies,
and may present increased volatility and liquidity
risk; |
38
|
• |
|
Equity Securities Risk: Equity securities
may react more strongly to changes in an issuer’s financial condition or
prospects than other securities of the same
issuer; |
|
• |
|
Emerging Markets Risk: Compared to
foreign developed markets, investing in emerging markets may involve
heightened volatility, greater political, regulatory, legal and economic
uncertainties, less liquidity, dependence on particular commodities or
international aid, high levels of inflation, greater custody risk, and
certain special risks associated with smaller
companies; |
|
• |
|
Foreign Investment Risk: Investments in
foreign (non-U.S.) issuers, directly or through use of depositary
receipts, may be negatively affected by adverse political, regulatory,
economic, market or other developments affecting issuers located in
foreign countries, currency exchange rates or regulations, or foreign
withholding or other taxes, and investing in foreign securities may result
in the Fund experiencing more rapid and extreme changes in value than a
fund that invests exclusively in securities of U.S.
issuers; |
|
• |
|
Focused Investment Risk: Focusing a
fund’s investments in a limited number of issuers, sectors or industries
increases risk and the volatility of the value of a fund’s shares. The
Fund may be particularly susceptible to economic, political, regulatory or
other events affecting the issuers, sectors or industries to the extent it
focuses its investments; |
|
• |
|
Geographic Focus Risk: The Fund may be
particularly susceptible to economic, political or regulatory events
affecting particular countries or regions to the extent the Fund focuses
its investments in such countries or
regions; |
|
• |
|
Convertible Securities Risk: Securities
that are convertible into preferred or common stocks are subject to the
risks of both debt and equity securities and the risk of changing in value
at a different rate than the underlying stocks. Convertible securities are
subject to greater levels of credit and liquidity risk, may be speculative
and may decline in value due to changes in interest rates or an issuer’s
or counterparty’s deterioration or
default; |
|
• |
|
Counterparty and Third Party Risk:
Transactions involving a counterparty to a derivative contract,
repurchase agreement, reverse repurchase agreement, or other financial
instrument, or to a third party responsible for servicing the instrument,
are subject to the credit risk of the counterparty or third party, and to
the counterparty’s or third party’s ability to perform in accordance with
the terms of the transaction; |
|
• |
|
Credit Risk: The Fund could lose money if
the issuer or counterparty is unable or unwilling to meet its financial
obligations, and the lack of ability, or perceived lack of ability, of the
issuer to make timely payments of interest and/or principal will
negatively affect the value of the security or
instrument; |
|
• |
|
Currency Management Strategies Risk:
Currency management strategies, including the use of forward
currency contracts and other derivatives, may substantially change the
Fund’s exposure to currencies and currency exchange rates and could result
in losses to the Fund if currencies do not perform as the Investment
Manager anticipates; |
|
• |
|
Currency Risk: Foreign (non-U.S.)
currencies may decline in value relative to the U.S. dollar and adversely
affect the value of the Fund’s investments in foreign currencies,
securities denominated in foreign currencies or derivatives that provide
exposure to foreign currencies; |
|
• |
|
Derivatives Risk: Investing in derivative
instruments may be considered risky and involves correlation,
documentation, interest rate, leverage, liquidity, market, management,
interest rate and valuation risks and the risk of losing more than the
principal amount invested; |
|
• |
|
Inflation/Deflation Risk: The value of
the Fund’s investments may decline as inflation reduces the value of
money; conversely, if deflation reduces prices throughout the economy
there may be an adverse effect on the creditworthiness of issuers in whose
securities the Fund invests and an increase in the likelihood of issuer
defaults; |
|
• |
|
Interest Rate Risk: Debt and other
securities and instruments may decline in value due to changes in interest
rates, the extended duration of principal payments at below-market
interest rates, and/or prepayment. The value of most fixed income
securities will generally decline in response to increases in interest
rates; |
|
• |
|
Investments in Pooled Vehicles Risk:
Investing in another investment company or pooled vehicle subjects
the Fund to that company’s risks, and, in general, to a pro rata portion
of that company’s fees and expenses in addition to fees and expenses
charged by the Fund; |
|
• |
|
IPO Risk: Securities offered in initial
public offerings (IPOs) are subject to many of the same risks of investing
in small companies and often to a heightened degree, their values may be
highly volatile, they have no trading history and information about the
issuer may have been available for only limited
periods; |
|
• |
|
Issuer Risk: The value of a security or
instrument may decline for reasons directly related to the issuer, such as
management performance, financial leverage and reduced demand for the
issuer’s goods or services; |
39
|
• |
|
Large Shareholder Risk: Shareholders of
the Fund, such as institutional investors, may disrupt the efficient
management of the Fund’s operations by purchasing or redeeming Fund shares
in large amounts; |
|
• |
|
Leverage Risk: Use of leverage, including
through borrowings, derivatives and reverse repurchase agreements, will
increase volatility of the Fund’s investment portfolio and magnify the
Fund’s investment losses or
gains; |
|
• |
|
Liquidity Risk: Illiquid securities and
other instruments may be highly volatile, difficult to value, and
difficult to sell or close out at favorable prices or
times; |
|
• |
|
Management Risk: The Fund’s investment
return depends on the ability of the Investment Manager to manage the
Fund’s portfolio successfully; there is a risk that the Investment Manager
may be incorrect in its analysis of economic trends, currencies,
countries, industries, companies, and the relative attractiveness of asset
classes or other matters; |
|
• |
|
Market Risk: The value of securities and
instruments owned by the Fund may rise and fall, sometimes rapidly or
unpredictably, due to factors affecting securities markets generally or
particular industries or geographic areas, including terrorism, war,
natural disasters and the spread of infectious disease including epidemics
or pandemics; |
|
• |
|
Over-the-Counter Risk: Securities and
derivatives traded in over-the-counter markets may trade less frequently
and in limited volumes and thus exhibit more volatility and liquidity
risk, and the prices paid by the Fund in over-the-counter transactions may
include an undisclosed dealer
markup; |
|
• |
|
Portfolio Turnover Risk: If the Fund
frequently trades its securities, this will increase transaction costs,
may result in taxable capital gains, and may reduce the Fund’s investment
performance; and |
|
• |
|
Valuation Risk: Certain securities and
instruments may be difficult to value, and to the extent the Fund sells a
security or instrument at a price lower than that used to value the
security, its net asset value will be adversely
affected. |
An
investment in the Fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency.
Performance
Information
The bar chart and performance table that follow
provide some indication of the risks of investing in the Fund by showing changes
in the Fund’s Institutional Class Shares’ performance from year to year and
comparing the Fund’s average annual total returns with those of a broad-based
market index. The bar chart and the information immediately
below it show only the performance of the Fund’s Institutional
Class Shares. Although Class A and Class C Shares would have
similar annual returns (because all the Fund’s shares represent interests in the
same portfolio of securities), Class A and Class C performance would
be lower than Institutional Class performance because of the lower expenses
paid by Institutional Class Shares of the Fund. The bar
chart does not reflect any sales loads applicable to Class A or
Class C Shares. The performance shown in the bar chart
would be lower if it reflected sales charges applicable to Class A and
Class C Shares. Performance for Class A and Class C
Shares in the Average Annual Total Returns table reflects the impact of sales
charges. You may obtain the Fund’s updated performance
information by visiting the website at www.ashmoregroup.com or by calling
866-876-8294. As
with all mutual funds, the Fund’s past performance (before and after taxes) does
not predict how the Fund will perform in the
future.
Calendar
Year Total Return—Institutional Class
Ashmore
Emerging Markets Small-Cap Equity Fund % Total Return
40
The
best calendar
quarter return during the period shown above was 41.15% in the second quarter of 2020; the
worst was
(28.80)% in the first quarter of
2020.
Average
Annual Total Return
(For the period ended
December 31, 2023)
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1-Year |
|
5-Year |
|
10-Year |
Institutional
Class |
|
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| |
|
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|
| |
|
|
| |
Return
before taxes |
|
|
|
20.07% |
| |
|
|
10.96% |
| |
|
|
4.74% |
|
Return
after taxes on distributions |
|
|
|
20.00% |
| |
|
|
10.94% |
| |
|
|
4.48% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
|
12.08% |
| |
|
|
8.75% |
| |
|
|
3.69% |
|
MSCI
Emerging Markets Small Cap Index (reflects no deduction for fees,
expenses, or taxes) |
|
|
|
23.92% |
| |
|
|
9.91% |
| |
|
|
5.34% |
|
Class A |
|
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| |
|
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| |
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|
| |
Return
before taxes |
|
|
|
13.57% |
| |
|
|
9.51% |
| |
|
|
3.91% |
(1) |
MSCI
Emerging Markets Small Cap Index (reflects no deduction for fees,
expenses, or taxes) |
|
|
|
23.92% |
| |
|
|
9.91% |
| |
|
|
5.34% |
|
Class C |
|
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|
|
| |
|
|
|
| |
|
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| |
Return
before taxes |
|
|
|
17.80% |
| |
|
|
9.95% |
| |
|
|
3.86% |
(1) |
MSCI
Emerging Markets Small Cap Index (reflects no deduction for fees,
expenses, or taxes) |
|
|
|
23.92% |
| |
|
|
9.91% |
| |
|
|
5.34% |
|
(1) |
Class C Shares performance reflects
conversion to Class A Shares after eight
years. |
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown, and after-tax returns shown are
not relevant to investors who hold their Fund shares through tax-advantaged
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Institutional
Class Shares only and will vary for Class A and Class C
Shares.
Management
of the Fund
Investment Manager
Ashmore
Investment Advisors Limited (“the Investment Manager”)
Portfolio Managers
Dhiren
Shah and Patrick Cadell, co-portfolio managers, are primarily responsible for
the day-to-day management of the Fund. Mr. Shah and Mr. Cadell have
participated in the management of the Fund since 2017.
Purchase
and Sale of Fund Shares
The
minimum initial investment for Class A and Class C Shares is $1,000
and the minimum subsequent investment is $50. The minimum initial investment for
Institutional Class Shares is $1,000,000 and the minimum subsequent
investment is $5,000. These minimums may be waived or modified by the Fund or
the Distributor, including for certain financial intermediaries. Investors
investing in the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries. You may sell (redeem) shares on any
day the New York Stock Exchange is open through your broker-dealer or other
financial intermediary (if applicable), or if you hold an account directly with
the Fund by calling 866-876-8294 or by sending a letter of instruction to
Ashmore Funds c/o Northern Trust Company, PO Box 4766, Chicago, IL 60680-4766.
If your shares are held in the name of a financial intermediary, those shares
may only be sold through that financial intermediary.
Tax
Information
The
Fund normally distributes net investment income and net realized capital gains
to shareholders. These distributions are generally taxable to you as ordinary
income or capital gains, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan or an individual retirement account.
41
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund, the Distributor, the Investment Manager
or their affiliates may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
42
Ashmore
Emerging Markets Frontier Equity Fund
Investment
Objective
The
Fund seeks long-term capital appreciation.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell Class A, Class C or Institutional Class Shares of the
Fund. You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below. You may
qualify for sales charge discounts on a purchase of Class A Shares if you
and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of
the Funds. More information about these and other discounts is
available in the “Classes of Shares” section beginning on page 138 of the
Fund’s prospectus or from your financial intermediary. Investors investing in
the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries.
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Shareholder
Fees |
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| |
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| |
(fees paid directly from
your investment) |
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| |
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| |
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Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
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|
5.25% |
|
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|
None |
| |
|
|
None |
|
Maximum
Deferred Sales Charge (CDSC) (Load)(1) (as a percentage
of the lower of original purchase price or NAV) |
|
|
|
1.00% |
|
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|
1.00% |
|
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|
None |
|
Redemption
Fee |
|
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|
None |
| |
|
|
None |
| |
|
|
None |
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| |
|
Annual
Fund Operating Expenses |
|
|
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| |
|
|
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| |
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| |
(Expenses that you pay
each year as a percentage of the value of your
investment) |
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| |
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| |
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|
| |
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|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Management
Fees |
|
|
|
1.50% |
| |
|
|
1.50% |
| |
|
|
1.50% |
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
0.25% |
| |
|
|
1.00% |
| |
|
|
None |
|
Other
Expenses |
|
|
|
0.52% |
| |
|
|
0.54% |
| |
|
|
0.53% |
|
| |
|
|
|
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|
|
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|
|
Total
Annual Fund Operating Expenses |
|
|
|
2.27% |
| |
|
|
3.04% |
| |
|
|
2.03% |
|
Fee
Waiver and/or Expense Reimbursement(2) |
|
|
|
(0.50)% |
| |
|
|
(0.52)% |
| |
|
|
(0.51)% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
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|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
|
1.77% |
| |
|
|
2.52% |
| |
|
|
1.52% |
|
(1) |
For Class A Shares, the CDSC is imposed only where
shares are purchased without a front-end sales charge and subsequently
redeemed within eighteen months of purchase. For Class C Shares, the
CDSC is imposed only on shares redeemed within one year of
purchase. |
(2) |
Ashmore
Investment Advisors Limited has contractually agreed to waive its fees or
reimburse the Fund for other expenses to the extent that Total Annual Fund
Operating Expenses (other than Acquired Fund Fees and Expenses, interest
expense, taxes, extraordinary expenses, custodial credits, transfer agency
credits and expense offset arrangements) for the Fund’s Class A
Shares exceed 1.77%, for the Fund’s Class C Shares exceed 2.52% and
for the Fund’s Institutional Class Shares exceed 1.52% of the Fund’s
average daily net assets attributable to the share class (the “Expense
Limitation Agreement”). The expense limitation arrangement may be
terminated before February 28, 2025 only
by the Board of Trustees. Under the Expense Limitation Agreement, the
Investment Manager may recoup any amounts waived or reimbursed for 36
months following the end of the month when the waiver or reimbursement
occurred, provided total expenses, including such recoupment, do not
exceed the applicable annual expense limit, and further that expenses may
be recouped only if and to the extent that the expense ratio at the time
of such recoupment is less than the annual expense limit in place at the
time when such expenses were waived or
reimbursed. |
Examples
These
Examples are intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Examples assume that you invest
$10,000 in the noted class of shares of the Fund for the time periods
indicated,
43
your
investment has a 5% return each year and the Fund’s operating expenses remain
the same. Class C Shares automatically convert to Class A Shares after
eight years. The expense example for Class C Shares for the ten-year period
reflects the conversion to Class A Shares. The Examples are based, for the
first year, on Total Annual Fund Operating Expenses After Fee Waiver and/or
Expense Reimbursement and, for all other periods, on Total Annual Fund Operating
Expenses. Although your actual costs may be higher or lower, the Examples show
what your costs would be based on these assumptions.
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Example:
Assuming you redeem your shares at the end of each
period |
|
Example:
Assuming you do not redeem your
shares |
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Class A
Shares |
|
|
$ |
695 |
| |
|
$ |
1,152 |
| |
|
$ |
1,633 |
| |
|
$ |
2,957 |
| |
|
$ |
695 |
| |
|
$ |
1,152 |
| |
|
$ |
1,633 |
| |
|
$ |
2,957 |
|
Class C
Shares |
|
|
$ |
355 |
| |
|
$ |
890 |
| |
|
$ |
1,551 |
| |
|
$ |
3,139 |
| |
|
$ |
255 |
| |
|
$ |
890 |
| |
|
$ |
1,551 |
| |
|
$ |
3,139 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Institutional
Class Shares (whether or not shares are redeemed) |
|
|
|
$ |
155 |
| |
|
$ |
587 |
| |
|
$ |
1,046 |
| |
|
$ |
2,318 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, adversely affect the
Fund’s investment performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 94% of the average value of its
portfolio.
Principal
Investment Strategies
The Fund seeks to achieve its objective by investing
principally in equity securities and equity-related investments of Frontier
Market Issuers, which may be denominated in any currency, including the local
currency of the issuer. A Frontier Market Issuer is an issuer that is located in
a Frontier Market Country, or an issuer deriving at least 50% of its revenues or
profits from goods produced or sold, investments made, or services performed in
one or more Frontier Market Countries or that has at least 50% of its assets in
one or more Frontier Market Countries.
Frontier Market countries are countries that either
currently or in the future are represented in widely-recognized indices of
frontier market securities or the Investment Manager considers the market to
have frontier market characteristics in respect to economic, political, or
market structure.
The
Fund may invest in equity securities and equity-related investments of all types
and denominated in any currency, including voting and non-voting common stock,
common stock issued to special shareholder classes, preferred stock, depositary
receipts, including global and American depositary receipts, warrants,
securities convertible into equity securities, other equity-related investments
whose returns vary on the basis of the issuer’s profitability (e.g., participation notes), as well as
securities of other investment companies, including exchange-traded funds
(“ETFs”) and other pooled vehicles. The Fund may invest through investment
funds, pooled accounts or other investment vehicles designed to permit
investments in a portfolio of equity securities listed in one or more Frontier
Market Countries or regions, particularly in the case of countries that may have
restrictions on foreign investment or countries where such investments may
represent an efficient method of achieving investment exposure. The Fund’s
investments may include securities of companies that are in the process of being
privatized by a government, securities of companies that are traded in
unregulated over-the-counter markets or other types of unlisted securities
markets, and unregistered securities issued in private placements. The Fund may
invest in companies of any market capitalization and may also invest in initial
public offerings. The Fund’s benchmark index, the MSCI Frontier + Select
Emerging Markets Countries Capped Index, is currently concentrated in the
commercial banking industry. Although the Fund is not an index fund and does not
seek to replicate the performance of its benchmark index, it may concentrate its
investments in the commercial banking industry. As of the
date of this Prospectus, the Fund’s investments are concentrated in the
commercial banking
industry.
The
Fund may utilize various derivative instruments and related strategies to gain
exposure to one or more issuers or other assets. The Fund may utilize
derivatives of all types and may invest in, without limitation, call and put
options (including options on futures contracts); futures and forward contracts,
including contracts related to currencies; and swap agreements (including total
return and interest rate swaps); other related instruments with respect to
individual stocks and other securities, indices and baskets of securities,
interest rates and currencies; participation notes; structured notes;
exchange
44
traded
notes; and credit-linked notes as part of its principal investment strategies.
The Fund may enter into foreign currency forward contracts as well as foreign
currency futures and options contracts with respect to any currency in which it
has existing investments or has contracted to make investments in an attempt to
hedge currency exchange risk. The Fund expects to primarily use derivatives for
hedging or efficient portfolio management purposes, but may also use them to
increase the Fund’s investment exposure beyond that which it could achieve by
investing directly in more conventional securities. The Fund may also invest
directly in foreign currencies for hedging or other investment
purposes.
The
Fund is managed by a committee of portfolio managers, who are officers of the
Investment Manager (for purposes of this section, the “Portfolio Managers”). In
managing the Fund’s portfolio, the Portfolio Managers use principally a
bottom-up approach to identify particular securities for investment within
Frontier Market Countries. The Portfolio Managers’ investment approach is driven
by fundamental value and involves a rigorous, systemic and value-oriented
security selection process. The Portfolio Managers analyze the universe of
available Frontier Market equity investments in an attempt to identify issuers
that are undervalued relative to their long-term growth prospects. Potential
candidates are systematically screened for fundamental value based on a number
of factors, such as price to earnings ratio, price to future growth ratio, price
to book value ratio, price to cash flow ratio, free cash flow, return on equity,
debt to equity ratio, earnings growth and earnings momentum. Attractive
candidates undergo a more rigorous review to assess the issuer’s long-term
prospects, including with respect to management strength, market outlook,
competitiveness, regulatory changes, restructuring and expansion plans,
profitability, financial viability, interest coverage and hidden assets. As part
of this process, the Portfolio Managers conduct visits to various companies in
the Frontier Market Countries and utilize a proprietary database and earnings
forecasts to compare applicable industries and issuers. The screening process is
designed, in part, to avoid investments deemed by the Portfolio Managers to have
unacceptable risk factors. The Portfolio Managers also review and take into
account overall Fund exposures to particular Frontier Market Countries and
sectors in an effort to construct a portfolio that provides a measure of
diversification among Frontier Market Countries and sectors. Taking into account
the results of this screening process, the Portfolio Managers select particular
investments designed to produce a diversified equity portfolio of Frontier
Market Issuers.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in equity securities and other
equity-related investments of Frontier Market Issuers. The Fund’s investments in
derivatives and other synthetic instruments that have economic characteristics
similar to these investments will be counted toward satisfaction of the Fund’s
80% investment policy. For example, futures contracts may be used to obtain
investment exposure equal to a portion or all of the Fund’s cash
positions.
The
Portfolio Managers may in their sole discretion consider selling a particular
security held in the Fund’s portfolio when the factors that led to its
investment change adversely or when a more attractive candidate is
identified.
Principal
Risks
It is possible
to lose money on an investment in the Fund. The Fund
will be affected by the investment decisions, techniques and risk analyses of
the Fund’s Investment Manager and there is no guarantee that the Fund will
achieve its investment objective. The principal risks of investing in the Fund,
which could adversely affect its net asset value, yield and total return are (in
alphabetical order after the first seven risks):
|
• |
|
Equity Securities Risk: Equity securities
may react more strongly to changes in an issuer’s financial condition or
prospects than other securities of the same
issuer; |
|
• |
|
Financial Services Risk: Investments in
issuers in the financial services sector are subject to various risks
affecting financial services companies and the financial services sector
generally. The values of investments in the financial services sector are
particularly sensitive to changes in economic conditions, such as
recessions and fluctuations in interest rates. Financial services
companies may be exposed to leverage, which could magnify investment
losses under adverse market conditions. Investments in the financial
services sector are also subject to the risk that unexpected market,
economic, political, regulatory or other events might lead to a decline in
the value of most or all companies in the financial services sector. In
addition, the financial services sector of emerging markets can be
considered riskier than the U.S. financial services
sector; |
|
• |
|
Frontier Markets Risk: Frontier market
countries are emerging market countries, but generally have smaller
economies or less mature capital markets than more developed emerging
markets, and, as a result, the risks of investing in emerging market
countries are magnified in frontier countries. The markets of frontier
countries typically have low trading volumes and the potential for extreme
price volatility and illiquidity. This volatility
may |
45
|
be
further heightened by the actions of a few major investors. For example, a
substantial increase or decrease in cash flows of mutual funds investing
in these markets could significantly affect local stock prices and,
therefore, the net asset value of Fund shares. These factors make
investing in frontier countries significantly riskier than in other
countries, including other emerging market countries, and any one of them
could cause the net asset value of the Fund’s shares to
decline; |
|
• |
|
Foreign Investment Risk: Investments in
foreign (non-U.S.) issuers, directly or through use of depositary
receipts, may be negatively affected by adverse political, regulatory,
economic, market or other developments affecting issuers located in
foreign countries, currency exchange rates or regulations, or foreign
withholding or other taxes, and investing in foreign securities may result
in the Fund experiencing more rapid and extreme changes in value than a
fund that invests exclusively in securities of U.S.
issuers; |
|
• |
|
Focused Investment Risk: Focusing a
fund’s investments in a limited number of issuers, sectors or industries
increases risk and the volatility of the value of a fund’s shares. The
Fund may be particularly susceptible to economic, political, regulatory or
other events affecting the issuers, sectors or industries to the extent it
focuses its investments; |
|
• |
|
Banking Industry Risk: Investments in
banking industry stocks, as compared to other industries in general, may
be considered to be more volatile or riskier due to a number of factors
including more extensive government regulation that may reduce profit
potential for banks compared to other entities. Financial services
institutions are often subject to extensive governmental regulation and,
recently, government intervention and the potential for additional
regulation, which may adversely affect the scope of their activities, the
prices they can charge and the amount of capital they must maintain. The
oversight of, and regulations applicable to, companies in the banking
industry in frontier markets may be ineffective and underdeveloped
relative to more developed markets. Recent events in the financial sector
have resulted, and may continue to result, in an unusually high degree of
volatility in the financial markets, both domestic and foreign, and caused
certain financial services companies to incur large losses. The impact of
recent or future regulation in various countries on any individual bank or
on the sector as a whole cannot be predicted. In addition, the banking
industry of frontier markets can be considered riskier than the U.S.
banking industry; |
|
• |
|
Geographic Focus Risk: The Fund may be
particularly susceptible to economic, political or regulatory events
affecting particular countries or regions to the extent the Fund focuses
its investments in such countries or
regions; |
|
• |
|
Convertible Securities Risk: Securities
that are convertible into preferred or common stocks are subject to the
risks of both debt and equity securities and the risk of changing in value
at a different rate than the underlying stocks. Convertible securities are
subject to greater levels of credit and liquidity risk, may be speculative
and may decline in value due to changes in interest rates or an issuer’s
or counterparty’s deterioration or
default; |
|
• |
|
Counterparty and Third Party Risk:
Transactions involving a counterparty to a derivative contract,
repurchase agreement, reverse repurchase agreement, or other financial
instrument, or to a third party responsible for servicing the instrument,
are subject to the credit risk of the counterparty or third party, and to
the counterparty’s or third party’s ability to perform in accordance with
the terms of the transaction; |
|
• |
|
Credit Risk: The Fund could lose money if
the issuer or counterparty is unable or unwilling to meet its financial
obligations, and the lack of ability, or perceived lack of ability, of the
issuer to make timely payments of interest and/or principal will
negatively affect the value of the security or
instrument; |
|
• |
|
Currency Management Strategies Risk:
Currency management strategies, including the use of forward
currency contracts and other derivatives, may substantially change the
Fund’s exposure to currencies and currency exchange rates and could result
in losses to the Fund if currencies do not perform as the Investment
Manager anticipates; |
|
• |
|
Currency Risk: Foreign (non-U.S.)
currencies may decline in value relative to the U.S. dollar and adversely
affect the value of the Fund’s investments in foreign currencies,
securities denominated in foreign currencies or derivatives that provide
exposure to foreign currencies; |
|
• |
|
Derivatives Risk: Investing in derivative
instruments may be considered risky and involves correlation,
documentation, interest rate, leverage, liquidity, market, management,
interest rate and valuation risks and the risk of losing more than the
principal amount invested; |
|
• |
|
Inflation/Deflation Risk: The value of
the Fund’s investments may decline as inflation reduces the value of
money; conversely, if deflation reduces prices throughout the economy
there may be an adverse effect on the creditworthiness of issuers in whose
securities the Fund invests and an increase in the likelihood of issuer
defaults; |
46
|
• |
|
Interest Rate Risk: Debt and other
securities and instruments may decline in value due to changes in interest
rates, the extended duration of principal payments at below-market
interest rates, and/or prepayment. The value of most fixed income
securities will generally decline in response to increases in interest
rates; |
|
• |
|
Investments in Pooled Vehicles Risk:
Investing in another investment company or pooled vehicle subjects
the Fund to that company’s risks, and, in general, to a pro rata portion
of that company’s fees and expenses in addition to fees and expenses
charged by the Fund; |
|
• |
|
IPO Risk: Securities offered in initial
public offerings (IPOs) are subject to many of the same risks of investing
in small companies and often to a heightened degree, their values may be
highly volatile, they have no trading history and information about the
issuer may have been available for only limited
periods; |
|
• |
|
Issuer Risk: The value of a security or
instrument may decline for reasons directly related to the issuer, such as
management performance, financial leverage and reduced demand for the
issuer’s goods or services; |
|
• |
|
Large Shareholder Risk: Shareholders of
the Fund, such as institutional investors, may disrupt the efficient
management of the Fund’s operations by purchasing or redeeming Fund shares
in large amounts; |
|
• |
|
Leverage Risk: Use of leverage, including
through borrowings, derivatives and reverse repurchase agreements, will
increase volatility of the Fund’s investment portfolio and magnify the
Fund’s investment losses or
gains; |
|
• |
|
Liquidity Risk: Illiquid securities and
other instruments may be highly volatile, difficult to value, and
difficult to sell or close out at favorable prices or
times; |
|
• |
|
Management Risk: The Fund’s investment
return depends on the ability of the Investment Manager to manage the
Fund’s portfolio successfully; there is a risk that the Investment Manager
may be incorrect in its analysis of economic trends, currencies,
countries, industries, companies, and the relative attractiveness of asset
classes or other matters; |
|
• |
|
Market Risk: The value of securities and
instruments owned by the Fund may rise and fall, sometimes rapidly or
unpredictably, due to factors affecting securities markets generally or
particular industries or geographic areas, including terrorism, war,
natural disasters and the spread of infectious disease including epidemics
or pandemics; |
|
• |
|
Over-the-Counter Risk: Securities and
derivatives traded in over-the-counter markets may trade less frequently
and in limited volumes and thus exhibit more volatility and liquidity
risk, and the prices paid by the Fund in over-the-counter transactions may
include an undisclosed dealer
markup; |
|
• |
|
Portfolio Turnover Risk: If the Fund
frequently trades its securities, this will increase transaction costs,
may result in taxable capital gains, and may reduce the Fund’s investment
performance; |
|
• |
|
Small and Mid-Sized Companies Risk:
Investments in securities issued by small and mid-sized companies
tend to be more vulnerable to adverse developments than larger companies,
and may present increased volatility and liquidity risk;
and |
|
• |
|
Valuation Risk: Certain securities and
instruments may be difficult to value, and to the extent the Fund sells a
security or instrument at a price lower than that used to value the
security, its net asset value will be adversely
affected. |
An investment in the Fund is not a bank deposit and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Performance
Information
The bar chart and performance table that follow
provide some indication of the risks of investing in the Fund by showing changes
in the Fund’s Institutional Class Shares’ performance from year to year and
comparing the Fund’s average annual total returns with those of a broad-based
market index. The bar chart and the information immediately
below it show only the performance of the Fund’s Institutional
Class Shares. Although Class A and Class C Shares would have
similar annual returns (because all the Fund’s shares represent interests in the
same portfolio of securities), Class A and Class C performance would
be lower than Institutional Class performance because of the lower expenses
paid by Institutional Class Shares of the Fund. The bar
chart does not reflect any sales loads applicable to Class A or
Class C Shares. The performance shown in the bar chart
would be lower if it reflected sales charges applicable to Class A and
Class C Shares. Performance for Class A and Class C
Shares in the Average Annual Total Returns table reflects the impact of sales
charges. You may obtain the Fund’s updated performance
information by visiting the website at www.ashmoregroup.com or by calling
866-876-8294. As
with all mutual funds, the Fund’s past performance (before and after taxes) does
not predict how the Fund will perform in the
future.
47
Calendar
Year Total Return—Institutional Class
Ashmore
Emerging Markets Frontier Equity Fund % Total Return
The
best calendar
quarter return during the period shown above was 14.50% in the fourth quarter of 2020; the
worst was
(28.43)% in the first quarter of
2020.
Average
Annual Total Return
(For the period ended December 31, 2023)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1-Year |
|
5-Year |
|
10-Year |
Institutional
Class |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
10.49% |
| |
|
|
4.91% |
| |
|
|
3.65% |
|
Return
after taxes on distributions |
|
|
|
9.89% |
| |
|
|
4.54% |
| |
|
|
2.72% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
|
6.63% |
| |
|
|
3.80% |
| |
|
|
2.60% |
|
MSCI
Frontier + Select Emerging Markets Countries Capped Index (reflects no
deduction for fees, expenses, or taxes) |
|
|
|
7.10% |
| |
|
|
4.25% |
| |
|
|
2.45% |
|
MSCI
Frontier Markets Index(1) (reflects no
deduction for fees, expenses, or taxes) |
|
|
|
11.63% |
| |
|
|
3.33% |
| |
|
|
1.99% |
|
|
|
| |
|
|
1-Year |
|
5-Year |
|
Since inception |
Class A |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
4.43% |
| |
|
|
3.53% |
| |
|
|
1.55% |
(2) |
MSCI
Frontier + Select Emerging Markets Countries Capped Index (reflects no
deduction for fees, expenses, or taxes) |
|
|
|
7.10% |
| |
|
|
4.25% |
| |
|
|
1.06% |
|
MSCI
Frontier Markets Index(1) (reflects no
deduction for fees, expenses, or taxes) |
|
|
|
11.63% |
| |
|
|
3.33% |
| |
|
|
0.60% |
|
Class C |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
8.41% |
| |
|
|
3.89% |
| |
|
|
1.44% |
(2) |
MSCI
Frontier + Select Emerging Markets Countries Capped Index (reflects no
deduction for fees, expenses, or taxes) |
|
|
|
7.10% |
| |
|
|
4.25% |
| |
|
|
1.06% |
|
MSCI
Frontier Markets Index(1) (reflects no
deduction for fees, expenses, or taxes) |
|
|
|
11.63% |
| |
|
|
3.33% |
| |
|
|
0.60% |
|
(1) |
Effective
December 31, 2019, the Fund started using the MSCI Frontier + Select
Emerging Markets Countries Capped Index as the Fund’s primary benchmark
because the new index more closely aligns with the Fund’s principal
investment strategies, with performance of the index beginning on
December 31, 2019. The MSCI Frontier + Select Emerging Markets
Countries Capped Index is a customized benchmark produced by MSCI that is
designed to measure equity market performance of constituent companies in
each of the MSCI Frontiers Market Index (50%) and the Emerging
Markets Crossover Markets portion of the MSCI Emerging Markets Index
(50%). Emerging Markets Crossover Markets are countries in the MSCI
Emerging Markets Index that the Investment Manager currently considers to
have frontier market characteristics in respect to economic, political or
market structure. As of December 31, 2023, Emerging Markets Crossover
Markets are the Philippines, Peru, Colombia, United Arab Emirates, Qatar,
Egypt and Kuwait. |
(2) |
Class C Shares performance reflects
conversion to Class A Shares after eight
years. |
48
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown, and after-tax returns shown are
not relevant to investors who hold their Fund shares through tax-advantaged
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Institutional
Class Shares only and will vary for Class A and Class C
Shares.
Management
of the Fund
Investment Manager
Ashmore
Investment Advisors Limited (“the Investment Manager”)
Portfolio Managers
Andy
Brudenell, Portfolio Manager of the Investment Manager, is primarily responsible
for the day-to-day management of the Fund. Mr. Brudenell has participated
in the management of the Fund since 2015.
Purchase
and Sale of Fund Shares
The
minimum initial investment for Class A and Class C Shares is $1,000
and the minimum subsequent investment is $50. The minimum initial investment for
Institutional Class Shares is $1,000,000 and the minimum subsequent
investment is $5,000. These minimums may be waived or modified by the Fund or
the Distributor, including for certain financial intermediaries. Investors
investing in the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries. You may sell (redeem) shares on any
day the New York Stock Exchange is open through your broker-dealer or other
financial intermediary (if applicable), or if you hold an account directly with
the Fund by calling 866-876-8294 or by sending a letter of instruction to
Ashmore Funds c/o Northern Trust Company, PO Box 4766, Chicago, IL 60680-4766.
If your shares are held in the name of a financial intermediary, those shares
may only be sold through that financial intermediary.
Tax
Information
The
Fund normally distributes net investment income and net realized capital gains
to shareholders. These distributions are generally taxable to you as ordinary
income or capital gains, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan or an individual retirement account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund, the Distributor, the Investment Manager
or their affiliates may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
49
Ashmore
Emerging Markets Equity Fund
Investment
Objective
The
Fund seeks long-term capital appreciation.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell Class A, Class C or Institutional Class Shares of the
Fund. You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below. You may
qualify for sales charge discounts on a purchase of Class A Shares if you
and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of
the Funds. More information about these and other discounts is
available in the “Classes of Shares” section beginning on page 138 of the
Fund’s prospectus or from your financial intermediary. Investors investing in
the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shareholder
Fees |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(fees paid directly from
your investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
5.25% |
|
|
|
|
None |
| |
|
|
None |
|
Maximum
Deferred Sales Charge (CDSC) (Load)(1) (as a percentage
of the lower of original purchase price or NAV) |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Redemption
Fee |
|
|
|
None |
| |
|
|
None |
| |
|
|
None |
|
|
|
| |
|
Annual
Fund Operating Expenses |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(Expenses that you pay
each year as a percentage of the value of your
investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Management
Fees |
|
|
|
1.00% |
| |
|
|
1.00% |
| |
|
|
1.00% |
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
0.25% |
| |
|
|
1.00% |
| |
|
|
None |
|
Other
Expenses |
|
|
|
0.39% |
| |
|
|
0.40% |
| |
|
|
0.39% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
1.64% |
| |
|
|
2.40% |
| |
|
|
1.39% |
|
Fee
Waiver and/or Expense Reimbursement(2) |
|
|
|
(0.37)% |
| |
|
|
(0.38)% |
| |
|
|
(0.37)% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
|
1.27% |
| |
|
|
2.02% |
| |
|
|
1.02% |
|
(1) |
For Class A Shares, the CDSC is imposed only where
shares are purchased without a front-end sales charge and subsequently
redeemed within eighteen months of purchase. For Class C Shares, the
CDSC is imposed only on shares redeemed within one year of
purchase. |
(2) |
Ashmore
Investment Advisors Limited has contractually agreed to waive its fees or
reimburse the Fund for other expenses to the extent that Total Annual Fund
Operating Expenses (other than Acquired Fund Fees and Expenses, interest
expense, taxes, extraordinary expenses, custodial credits, transfer agency
credits and expense offset arrangements) for the Fund’s Class A
Shares exceed 1.27%, for the Fund’s Class C Shares exceed 2.02% and
for the Fund’s Institutional Class Shares exceed 1.02% of the Fund’s
average daily net assets attributable to the share class (the “Expense
Limitation Agreement”). The expense limitation arrangement may be
terminated before February 28, 2025 only
by the Board of Trustees. Under the Expense Limitation Agreement, the
Investment Manager may recoup any amounts waived or reimbursed for 36
months following the end of the month when the waiver or reimbursement
occurred, provided total expenses, including such recoupment, do not
exceed the applicable annual expense limit, and further that expenses may
be recouped only if and to the extent that the expense ratio at the time
of such recoupment is less than the annual expense limit in place at the
time such expenses were waived or
reimbursed. |
Examples
These
Examples are intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Examples assume that you invest
$10,000 in the noted class of shares of the Fund for the time periods
indicated,
50
your
investment has a 5% return each year and the Fund’s operating expenses remain
the same. Class C Shares automatically convert to Class A Shares after
eight years. The expense example for Class C Shares for the ten-year period
reflects the conversion to Class A Shares. The Examples are based, for the
first year, on Total Annual Fund Operating Expenses After Fee Waiver and/or
Expense Reimbursement and, for all other periods, on Total Annual Fund Operating
Expenses. Although your actual costs may be higher or lower, the Examples show
what your costs would be based on these assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Example: Assuming you redeem your shares at the end of each
period |
|
Example:
Assuming you do not redeem your
shares |
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Class A
Shares |
|
|
$ |
648 |
| |
|
$ |
981 |
| |
|
$ |
1,337 |
| |
|
$ |
2,337 |
| |
|
$ |
648 |
| |
|
$ |
981 |
| |
|
$ |
1,337 |
| |
|
$ |
2,337 |
|
Class C
Shares |
|
|
$ |
305 |
| |
|
$ |
712 |
| |
|
$ |
1,246 |
| |
|
$ |
2,518 |
| |
|
$ |
205 |
| |
|
$ |
712 |
| |
|
$ |
1,246 |
| |
|
$ |
2,518 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Institutional
Class Shares (whether or not shares are redeemed) |
|
|
|
$ |
104 |
| |
|
$ |
404 |
| |
|
$ |
725 |
| |
|
$ |
1,637 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, adversely affect the
Fund’s investment performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 79% of the average value of its
portfolio.
Principal
Investment Strategies
The Fund seeks to achieve its objective by
investing principally in equity securities and equity-related investments of
Emerging Market Issuers (as defined below), which may be denominated in any
currency, including the local currency of the issuer. An Emerging Market Issuer is an issuer that is
located in an Emerging Market Country, or an issuer deriving at least 50% of its
revenues or profits from goods produced or sold, investments made, or services
performed in one or more Emerging Market Countries or that has at least 50% of
its assets in one or more Emerging Market Countries. Emerging Market Country
means any country included by the International Monetary Fund in its list of
Emerging and Developing Economies, any country which is considered a low-income,
lower-middle-income, or upper-middle-income economy by the World Bank, and all
countries represented in any widely-recognized index of emerging market
securities (e.g., the relevant indices in the family of J.P. Morgan Corporate
Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets Index, J.P.
Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond Index—Emerging
Markets and MSCI Emerging and Frontier Markets Index).
The
Fund may invest in equity securities and equity-related investments of all types
and denominated in any currency, including voting and non-voting common stock,
common stock issued to special shareholder classes, preferred stock, depositary
receipts, including global and American depositary receipts, warrants,
securities convertible into equity securities, other equity-related investments
whose returns vary on the basis of the issuer’s profitability (e.g., participation notes), as well as
securities of other investment companies, including exchange-traded funds
(“ETFs”) and other pooled vehicles. The Fund may invest through investment
funds, pooled accounts or other investment vehicles designed to permit
investments in a portfolio of equity securities listed in a particular Emerging
Market Country or region, particularly in the case of countries in which such an
investment vehicle is the exclusive or main vehicle for foreign portfolio
investment. The Fund’s investments may include securities of companies that are
in the process of being privatized by a government and securities of companies
that are traded in unregulated over-the-counter markets or other types of
unlisted securities markets. The Fund may invest in companies of any market
capitalization.
The
Fund may utilize various derivative instruments and related strategies to gain
exposure to one or more issuers or other assets. The Fund may utilize
derivatives of all types and may invest in, without limitation, call and put
options (including options on futures contracts); futures and forward contracts,
including contracts related to currencies; and swap agreements (including total
return and interest rate swaps); other related instruments with respect to
individual stocks and other securities, indices and baskets of securities,
interest rates and currencies; participation notes; structured notes; exchange
traded notes; and credit-linked notes as part of its principal investment
strategies. The Fund may enter into foreign currency forward contracts as well
as foreign currency futures and options contracts with respect to any currency
in which it has existing investments or has contracted to make investments in an
attempt to hedge currency exchange risk. The Fund
expects
51
to
primarily use derivatives for hedging or efficient portfolio management
purposes, but may also use them to increase the Fund’s investment exposure
beyond that which it could achieve by investing directly in more conventional
securities. The Fund may also invest directly in foreign currencies for hedging
or other investment purposes.
In
managing the Fund’s portfolio, the Investment Manager utilizes primarily a
bottom-up process to identify securities with attractive growth prospects by
looking at revenues, profits or historic growth (based on revenue or profit),
whilst also overlaying a top-down process to identify further opportunities and
risks.
The
Investment Manager’s top-down analysis of Emerging Market Countries, as well as
companies that are in the process of being privatized by an Emerging Market
Country or that are less than 99% directly or indirectly owned by an Emerging
Market Country, include the following:
|
• |
|
Market Factors—including the relative
attractiveness of the particular Emerging Market Country in comparison to
its historic performance and with the performance of other emerging and
world markets on the basis of fundamental values (e.g., price/earnings
ratio, price/book value ratio, earnings growth, volatility, dividend
yield, and debt/equity ratio). |
|
• |
|
Macro-Economic Factors—including the
outlook for currencies, interest rates, commodities, economic growth,
inflation, business confidence and scope for private sector
initiative. |
|
• |
|
Political Factors—including the stability
of the current government and its perceived attitudes towards foreign
investment, private sector initiative and development of the capital
markets. |
|
• |
|
Market Development—the development of the
Emerging Market Country relative to developed markets in terms of market
capitalization, level of trading activity, sophistication of capital
market activities and shareholder
protection. |
|
• |
|
Investment Restrictions—including the
level of foreign ownership allowed in the Emerging Market Country, the
method of investment allowed (e.g., direct investment or through funds),
required holding periods, ability to repatriate earnings and applicable
tax
regulations. |
The
Investment Manager uses a systematic, bottom-up process to select particular
issuers for investment within each Emerging Market Country based on, among other
factors, market valuations, prospective growth prospects, sustainability of
competitive advantage, financial condition, asset backing and liquidity.
Potential investments are then systematically ranked in accordance with the
strength of fundamentals and attractiveness of valuation. The Investment Manager
then selects particular issuers in an effort to produce a broad portfolio of
investments in Emerging Market
Countries.
The
Investment Manager monitors each of the Emerging Market Countries in which the
Fund has invested or may invest on a continuous basis and makes tactical shifts
in the Fund’s portfolio allocation when it sees fit based on new developments
and changes in the factors cited above. The Investment Manager may in its sole
discretion consider selling a particular security held in the Fund’s portfolio
when the factors that led to its investment change adversely or when a more
attractive candidate in the particular Emerging Market Country is
identified.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, including
obligations of non-Emerging Market Issuers and countries, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in equity securities and other
equity-related investments of Emerging Market Issuers. The Fund’s investments in
derivatives and other synthetic instruments that have economic characteristics
similar to these investments will be counted toward satisfaction of the Fund’s
80% investment policy. For example, futures contracts may be used to obtain
investment exposure equal to a portion or all of the Fund’s cash
positions.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the brokerage commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Example, may adversely affect the
Fund’s investment performance.
52
Principal
Risks
It is possible
to lose money on an investment in the Fund. The Fund
will be affected by the investment decisions, techniques and risk analyses of
the Fund’s Investment Manager and there is no guarantee that the Fund will
achieve its investment objective. The principal risks of investing in the Fund,
which could adversely affect its net asset value, yield and total return are (in
alphabetical order after the first six risks):
|
• |
|
Equity Securities Risk: Equity securities
may react more strongly to changes in an issuer’s financial condition or
prospects than other securities of the same
issuer; |
|
• |
|
Emerging Markets Risk: Compared to
foreign developed markets, investing in emerging markets may involve
heightened volatility, greater political, regulatory, legal and economic
uncertainties, less liquidity, dependence on particular commodities or
international aid, high levels of inflation, greater custody risk, and
certain special risks associated with smaller
companies; |
|
• |
|
Foreign Investment Risk: Investments in
foreign (non-U.S.) issuers, directly or through use of depositary
receipts, may be negatively affected by adverse political, regulatory,
economic, market or other developments affecting issuers located in
foreign countries, currency exchange rates or regulations, or foreign
withholding or other taxes, and investing in foreign securities may result
in the Fund experiencing more rapid and extreme changes in value than a
fund that invests exclusively in securities of U.S.
issuers; |
|
• |
|
Financial Services Risk: Investments in
issuers in the financial services sector are subject to various risks
affecting financial services companies and the financial services sector
generally. The values of investments in the financial services sector are
particularly sensitive to changes in economic conditions, such as
recessions and fluctuations in interest rates. Financial services
companies may be exposed to leverage, which could magnify investment
losses under adverse market conditions. Investments in the financial
services sector are also subject to the risk that unexpected market,
economic, political, regulatory or other events might lead to a decline in
the value of most or all companies in the financial services sector. In
addition, the financial services sector of emerging markets can be
considered riskier than the U.S. financial services
sector; |
|
• |
|
Focused Investment Risk: Focusing a
fund’s investments in a limited number of issuers, sectors or industries
increases risk and the volatility of the value of a fund’s shares. The
Fund may be particularly susceptible to economic, political, regulatory or
other events affecting the issuers, sectors or industries to the extent it
focuses its investments; |
|
• |
|
Geographic Focus Risk: The Fund may be
particularly susceptible to economic, political or regulatory events
affecting particular countries or regions to the extent the Fund focuses
its investments in such countries or
regions; |
|
• |
|
Convertible Securities Risk: Securities
that are convertible into preferred or common stocks are subject to the
risks of both debt and equity securities and the risk of changing in value
at a different rate than the underlying stocks. Convertible securities are
subject to greater levels of credit and liquidity risk, may be speculative
and may decline in value due to changes in interest rates or an issuer’s
or counterparty’s deterioration or
default; |
|
• |
|
Counterparty and Third Party Risk:
Transactions involving a counterparty to a derivative contract,
repurchase agreement, reverse repurchase agreement, or other financial
instrument, or to a third party responsible for servicing the instrument,
are subject to the credit risk of the counterparty or third party, and to
the counterparty’s or third party’s ability to perform in accordance with
the terms of the transaction; |
|
• |
|
Credit Risk: The Fund could lose money if
the issuer or counterparty is unable or unwilling to meet its financial
obligations, and the lack of ability, or perceived lack of ability, of the
issuer to make timely payments of interest and/or principal will
negatively affect the value of the security or
instrument; |
|
• |
|
Currency Management Strategies Risk:
Currency management strategies, including the use of forward
currency contracts and other derivatives, may substantially change the
Fund’s exposure to currencies and currency exchange rates and could result
in losses to the Fund if currencies do not perform as the Investment
Manager anticipates; |
|
• |
|
Currency Risk: Foreign (non-U.S.)
currencies may decline in value relative to the U.S. dollar and adversely
affect the value of the Fund’s investments in foreign currencies,
securities denominated in foreign currencies or derivatives that provide
exposure to foreign currencies; |
|
• |
|
Derivatives Risk: Investing in derivative
instruments may be considered risky and involves correlation,
documentation, interest rate, leverage, liquidity, market, management,
interest rate and valuation risks and the risk of losing more than the
principal amount invested; |
53
|
• |
|
Inflation/Deflation Risk: The value of
the Fund’s investments may decline as inflation reduces the value of
money; conversely, if deflation reduces prices throughout the economy
there may be an adverse effect on the creditworthiness of issuers in whose
securities the Fund invests and an increase in the likelihood of issuer
defaults; |
|
• |
|
Interest Rate Risk: Debt and other
securities and instruments may decline in value due to changes in interest
rates, the extended duration of principal payments at below-market
interest rates, and/or prepayment. The value of most fixed income
securities will generally decline in response to increases in interest
rates; |
|
• |
|
Investments in Pooled Vehicles Risk:
Investing in another investment company or pooled vehicle subjects
the Fund to that company’s risks, and, in general, to a pro rata portion
of that company’s fees and expenses in addition to fees and expenses
charged by the Fund; |
|
• |
|
IPO Risk: Securities offered in initial
public offerings (IPOs) are subject to many of the same risks of investing
in small companies and often to a heightened degree, their values may be
highly volatile, they have no trading history and information about the
issuer may have been available for only limited
periods; |
|
• |
|
Issuer Risk: The value of a security or
instrument may decline for reasons directly related to the issuer, such as
management performance, financial leverage and reduced demand for the
issuer’s goods or services; |
|
• |
|
Large Shareholder Risk: Shareholders of
the Fund, such as institutional investors, may disrupt the efficient
management of the Fund’s operations by purchasing or redeeming Fund shares
in large amounts; |
|
• |
|
Leverage Risk: Use of leverage, including
through borrowings, derivatives and reverse repurchase agreements, will
increase volatility of the Fund’s investment portfolio and magnify the
Fund’s investment losses or
gains; |
|
• |
|
Liquidity Risk: Illiquid securities and
other instruments may be highly volatile, difficult to value, and
difficult to sell or close out at favorable prices or
times; |
|
• |
|
Management Risk: The Fund’s investment
return depends on the ability of the Investment Manager to manage the
Fund’s portfolio successfully; there is a risk that the Investment Manager
may be incorrect in its analysis of economic trends, currencies,
countries, industries, companies, and the relative attractiveness of asset
classes or other matters; |
|
• |
|
Market Risk: The value of securities and
instruments owned by the Fund may rise and fall, sometimes rapidly or
unpredictably, due to factors affecting securities markets generally or
particular industries or geographic areas, including terrorism, war,
natural disasters and the spread of infectious disease including epidemics
or pandemics; |
|
• |
|
Over-the-Counter Risk: Securities and
derivatives traded in over-the-counter markets may trade less frequently
and in limited volumes and thus exhibit more volatility and liquidity
risk, and the prices paid by the Fund in over-the-counter transactions may
include an undisclosed dealer
markup; |
|
• |
|
Portfolio Turnover Risk: If the Fund
frequently trades its securities, this will increase transaction costs,
may result in taxable capital gains, and may reduce the Fund’s investment
performance; |
|
• |
|
Small and Mid-Sized Companies Risk:
Investments in securities issued by small and mid-sized companies
tend to be more vulnerable to adverse developments than larger companies,
and may present increased volatility and liquidity risk;
and |
|
• |
|
Valuation Risk: Certain securities and
instruments may be difficult to value, and to the extent the Fund sells a
security or instrument at a price lower than that used to value the
security, its net asset value will be adversely
affected. |
An investment in the Fund is not a bank deposit and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Performance
Information
The bar chart and performance table that follow
provide some indication of the risks of investing in the Fund by showing changes
in the Fund’s Institutional Class Shares’ performance from year to year and
comparing the Fund’s average annual total returns with those of a broad-based
market index. The bar chart and the information immediately
below it show only the performance of the Fund’s Institutional
Class Shares. Although Class A and Class C Shares would have
similar annual returns (because all the Fund’s shares represent interests in the
same portfolio of securities), Class A and Class C performance would
be lower than Institutional Class performance because of the lower expenses
paid by Institutional Class Shares of the Fund. The bar
chart does not reflect any sales loads applicable to Class A or
Class C Shares. The performance shown in the bar chart
would be lower if it reflected sales charges applicable to Class A and
Class C Shares.
54
Performance for Class A and Class C
Shares in the Average Annual Total Returns table reflects the impact of sales
charges. You may obtain the Fund’s updated performance
information by visiting the website at www.ashmoregroup.com or by calling
866-876-8294. As
with all mutual funds, the Fund’s past performance (before and after taxes) does
not predict how the Fund will perform in the
future.
Calendar
Year Total Return—Institutional Class
Ashmore
Emerging Markets Equity Fund % Total Return
The
best calendar
quarter return during the period shown above was 26.98% in the second quarter 2020; the
worst was
(26.17)% in the first quarter of
2020.
Average
Annual Total Return
(For the period ended December 31,
2023)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1-Year |
|
5-Year |
|
10-Year |
Institutional
Class |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
10.88% |
| |
|
|
7.69% |
| |
|
|
4.37% |
|
Return
after taxes on distributions |
|
|
|
10.67% |
| |
|
|
6.17% |
| |
|
|
3.48% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
|
6.79% |
| |
|
|
6.00% |
| |
|
|
3.41% |
|
MSCI
Emerging Markets Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
9.83% |
| |
|
|
3.68% |
| |
|
|
2.66% |
|
Class A |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
4.79% |
| |
|
|
6.29% |
| |
|
|
3.55% |
(2) |
MSCI
Emerging Markets Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
9.83% |
| |
|
|
3.68% |
| |
|
|
2.66% |
|
Class C |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Return
before taxes(1) |
|
|
|
8.87% |
| |
|
|
6.71% |
| |
|
|
3.47% |
(2) |
MSCI
Emerging Markets Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
|
9.83% |
| |
|
|
3.68% |
| |
|
|
2.66% |
|
(1) |
The
Fund did not have any Class C shares outstanding from August 9,
2016 to March 3, 2017 (the “Gap Period”), but had Class C shares
outstanding for all other periods shown. For the Gap Period, performance
shown for Class C shares is derived from the historical performance
of the Fund’s Class A shares during such period, adjusted to reflect
the higher Distribution and/or Service (12b-1) Fees payable by
Class C shares. |
(2) |
Class C Shares performance reflects
conversion to Class A Shares after eight
years. |
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown, and after-tax returns shown are
not relevant to investors who hold their Fund shares through tax-advantaged
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Institutional
Class Shares only and will vary for Class A and Class C
Shares.
55
Management
of the Fund
Investment Manager
Ashmore
Investment Advisors Limited (“the Investment Manager”)
Portfolio Managers
Dhiren
Shah, lead portfolio manager of the Fund, is primarily responsible for the
day-to-day management of the Fund. Mr. Shah has participated in the
management of the Fund since 2017.
Purchase
and Sale of Fund Shares
The
minimum initial investment for Class A and Class C Shares is $1,000
and the minimum subsequent investment is $50. The minimum initial investment for
Institutional Class Shares is $1,000,000 and the minimum subsequent
investment is $5,000. These minimums may be waived or modified by the Fund or
the Distributor, including for certain financial intermediaries. Investors
investing in the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries. You may sell (redeem) shares on any
day the New York Stock Exchange is open through your broker-dealer or other
financial intermediary (if applicable), or if you hold an account directly with
the Fund by calling 866-876-8294 or by sending a letter of instruction to
Ashmore Funds c/o Northern Trust Company, PO Box 4766, Chicago, IL 60680-4766.
If your shares are held in the name of a financial intermediary, those shares
may only be sold through that financial intermediary.
Tax
Information
The
Fund normally distributes net investment income and net realized capital gains
to shareholders. These distributions are generally taxable to you as ordinary
income or capital gains, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan or an individual retirement account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund, the Distributor, the Investment Manager
or their affiliates may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
56
Ashmore
Emerging Markets Equity ESG Fund
Investment
Objective
The
Fund seeks long-term capital appreciation.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell Class A, Class C or Institutional Class Shares of the
Fund. You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below. You may
qualify for sales charge discounts on a purchase of Class A Shares if you
and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of
the Fund. More information about these and other discounts is
available in the “Classes of Shares” section beginning on page 138 of the Fund’s
prospectus or from your financial intermediary. Investors investing in the Fund
through an intermediary should consult “Appendix A—Intermediary-Specific Sales
Waivers”, which includes information regarding broker-defined sales charges and
related discount policies that apply to purchases through certain
intermediaries.
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Shareholder
Fees |
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| |
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(fees paid directly from
your investment) |
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Class A Shares |
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Class C Shares |
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Institutional Class Shares |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
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5.25% |
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None |
| |
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None |
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Maximum
Deferred Sales Charge (CDSC) (Load)(1) (as a percentage
of the lower of original purchase price or NAV) |
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1.00% |
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1.00% |
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None |
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Redemption
Fee |
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None |
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None |
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None |
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Annual Fund
Operating Expenses |
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(Expenses that you pay
each year as a percentage of the value of your
investment) |
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Class A Shares |
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Class C Shares |
|
Institutional Class Shares |
Management
Fees |
|
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1.00% |
| |
|
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1.00% |
| |
|
|
1.00% |
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Distribution
and/or Service (12b-1) Fees |
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0.25% |
| |
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1.00% |
| |
|
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None |
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Other
Expenses |
|
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1.19% |
| |
|
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1.17% |
| |
|
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1.14% |
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| |
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Total
Annual Fund Operating Expenses |
|
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2.44% |
| |
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3.17% |
| |
|
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2.14% |
|
Fee
Waiver and/or Expense Reimbursement(2) |
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(1.17)% |
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(1.15)% |
| |
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(1.12)% |
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| |
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Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
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1.27% |
| |
|
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2.02% |
| |
|
|
1.02% |
|
(1) |
For Class A Shares, the CDSC is imposed only where
shares are purchased without a front-end sales charge and subsequently
redeemed within eighteen months of purchase. For Class C Shares, the
CDSC is imposed only on shares redeemed within one year of
purchase. |
(2) |
Ashmore
Investment Advisors Limited has contractually agreed to waive its fees or
reimburse the Fund for other expenses to the extent that Total Annual Fund
Operating Expenses (other than Acquired Fund Fees and Expenses, interest
expense, taxes, extraordinary expenses, custodial credits, transfer agency
credits and expense offset arrangements) for the Fund’s Class A
Shares exceed 1.27%, for the Fund’s Class C Shares exceed 2.02% and
for the Fund’s Institutional Class Shares exceed 1.02% of the Fund’s
average daily net assets attributable to the share class (the “Expense
Limitation Agreement”). The expense limitation arrangement may be
terminated before February 28, 2025 only
by the Board of Trustees. Under the Expense Limitation Agreement, the
Investment Manager may recoup any amounts waived or reimbursed for 36
months following the end of the month when the waiver or reimbursement
occurred, provided total expenses, including such recoupment, do not
exceed the applicable annual expense limit, and further that a prior
fiscal year’s expenses may be recouped only if and to the extent that the
expense ratio at the time of such recoupment is less than the annual
expense limit in place at the time such expenses were waived or
reimbursed. |
57
Examples
These
Examples are intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Examples assume that you invest
$10,000 in the noted class of shares of the Fund for the time periods indicated,
your investment has a 5% return each year and the Fund’s operating expenses
remain the same. Class C Shares automatically convert to Class A
Shares after eight years. The expense example for Class C Shares for the
ten-year period reflects the conversion to Class A Shares. The Examples are
based, for the first year, on Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement and, for all other periods, on Total Annual
Fund Operating Expenses. Although your actual costs may be higher or lower, the
Examples show what your costs would be based on these
assumptions.
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Example:
Assuming you redeem your shares at the end of each
period |
|
Example:
Assuming you do not redeem your
shares |
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1 year |
|
3 years |
|
5 years |
|
10 years |
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Class A
Shares |
|
|
$ |
648 |
| |
|
$ |
1,140 |
| |
|
$ |
1,657 |
| |
|
$ |
3,071 |
| |
|
$ |
648 |
| |
|
$ |
1,140 |
| |
|
$ |
1,657 |
| |
|
$ |
3,071 |
|
Class C
Shares |
|
|
$ |
305 |
| |
|
$ |
870 |
| |
|
$ |
1,559 |
| |
|
$ |
3,227 |
| |
|
$ |
205 |
| |
|
$ |
870 |
| |
|
$ |
1,559 |
| |
|
$ |
3,227 |
|
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| |
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|
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1 year |
|
3 years |
|
5 years |
|
10 years |
Institutional
Class Shares (whether or not shares are redeemed) |
|
|
|
$ |
104 |
| |
|
$ |
562 |
| |
|
$ |
1,046 |
| |
|
$ |
2,384 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, adversely affect the
Fund’s investment performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 51% of the average value of its
portfolio.
Principal
Investment Strategies
The Fund seeks to achieve its objective by
investing principally in equity securities and equity-related investments of
Emerging Market Issuers (as defined below), which may be denominated in any
currency, including the local currency of the issuer, focusing on issuers that
the Investment Manager believes satisfy the ESG Criteria (as described below).
An Emerging Market Issuer is an issuer that is
located in an Emerging Market Country, or an issuer deriving at least 50% of its
revenues or profits from goods produced or sold, investments made, or services
performed in one or more Emerging Market Countries or that has at least 50% of
its assets in one or more Emerging Market Countries. Emerging Market Country
means any country included by the International Monetary Fund in its list of
Emerging and Developing Economies, any country which is considered a low-income,
lower-middle-income, or upper-middle-income economy by the World Bank, and all
countries represented in any widely-recognized index of emerging market
securities (e.g. the relevant indices in the family of J.P. Morgan Corporate
Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets Index, J.P.
Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond Index—Emerging
Markets and MSCI Emerging and Frontier Markets Index).
The
Investment Manager incorporates environmental, social and corporate governance
risk considerations into issuer analysis and uses its ESG Scoring Process (as
defined below) to help identify what it believes to be high quality companies
with strong performance or potential when measured against the ESG Criteria. The
Investment Manager looks at the relevant issuer’s sustainability by assessing
the strength and enduring nature of an issuer’s competitive advantages, which
are supported by long term planning and investment. Issuers that score poorly
during the ESG Scoring Process are excluded from the list of potential
investments.
The
Investment Manager defines and assesses ESG Criteria on the basis of an issuer’s
performance against the following metrics:
|
• |
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Environment: Global and local impact,
greenhouse gas emissions, water and waste management, incidents of
environmental pollution, energy management and use of green energy,
policies and innovations to limit negative
impact. |
|
• |
|
Social: Employee diversity and inclusion,
customer welfare, human rights, community relations, labour practices,
health and safety, supply chain management, materiality of philanthropy
spend, product quality and
safety. |
58
|
• |
|
Governance: Governance structure,
transparency and disclosure, representation of minority interests, public
listing and reporting, management accessibility, key performance
indicators used to design long-term incentive schemes, policies and
strategies to mitigate the impact of ESG
risks. |
ESG Scoring Process means the scoring process
of the Investment Manager whereby the Investment Manager issues a score to each
issuer, based on their historical and current performance, taking into account
the environmental, social or governance risks that an issuer may present and the
performance of each issuer against ESG Criteria. Individual ESG criteria
generally will be given equal weight. The process relies on information drawn
from a range of data sources, including data from third party service providers,
which is subject to change.
The
Fund seeks to avoid investing in issuers that the Adviser determines have
significant involvement (i.e., more than 10% of revenues) in the manufacture,
distribution or sale of fossil fuels or tobacco products and in gambling,
pornography or defense (including controversial weapons) industries, or other
issuers that engage in business practices that the Adviser determines to be
sub-standard from an ESG or sustainability perspective in relation to their
industry or sector.
The
Fund may invest in equity securities and equity-related investments of all types
and denominated in any currency, including voting and non-voting common stock,
common stock issued to special shareholder classes, preferred stock, depositary
receipts, including global and American depositary receipts, warrants,
securities convertible into equity securities, other equity-related investments
whose returns vary on the basis of the issuer’s profitability (e.g., participation notes), as well as
securities of other investment companies, including exchange traded funds
(“ETFs”) and other pooled vehicles. The Fund may invest through investment
funds, pooled accounts or other investment vehicles designed to permit
investments in a portfolio of equity securities listed in a particular Emerging
Market Country or region, particularly in the case of countries in which such an
investment vehicle is the exclusive or main vehicle for foreign portfolio
investment. The Fund’s investments may include securities of companies that are
in the process of being privatized by a government and securities of companies
that are traded in unregulated over-the-counter markets or other types of
unlisted securities markets. The Fund may invest in companies of any market
capitalization.
The
Fund may utilize various derivative instruments and related strategies to gain
exposure to one or more issuers or other assets. The Fund may utilize
derivatives of all types and may invest in, without limitation, call and put
options (including options on futures contracts); futures and forward contracts,
including contracts related to currencies; and swap agreements (including total
return and interest rate swaps); other related instruments with respect to
individual stocks and other securities, indices and baskets of securities,
interest rates and currencies; participation notes; structured notes; exchange
traded notes; and credit-linked notes as part of its principal investment
strategies. The Fund may enter into foreign currency forward contracts as well
as foreign currency futures and options contracts with respect to any currency
in which it has existing investments or has contracted to make investments in an
attempt to hedge currency exchange risk. The Fund expects to primarily use
derivatives for hedging or efficient portfolio management purposes, but may also
use them to increase the Fund’s investment exposure beyond that which it could
achieve by investing directly in more conventional securities. The Fund may also
invest directly in foreign currencies for hedging or other investment
purposes.
In
managing the Fund’s portfolio, the Investment Manager utilizes primarily a
bottom-up process to identify securities with attractive growth prospects by
looking at revenues, profits or historic growth (based on revenue or profit),
whilst also overlaying a top-down process to identify further opportunities and
risks.
The
Investment Manager’s top-down analysis of Emerging Market Countries, as well as
companies that are in the process of being privatized by an Emerging Market
Country or that are less than 99% directly or indirectly owned by an Emerging
Market Country, include the following:
|
• |
|
Market Factors—including the relative
attractiveness of the particular Emerging Market Country in comparison to
its historic performance and with the performance of other emerging and
world markets on the basis of fundamental values (e.g., price/earnings
ratio, price/book value ratio, earnings growth, volatility, dividend
yield, and debt/equity ratio). |
|
• |
|
Macro-Economic Factors—including the
outlook for currencies, interest rates, commodities, economic growth,
inflation, business confidence and scope for private sector
initiative. |
|
• |
|
Political Factors—including the stability
of the current government and its perceived attitudes towards foreign
investment, private sector initiative and development of the capital
markets. |
59
|
• |
|
Market Development—the development of the
Emerging Market Country relative to developed markets in terms of market
capitalization, level of trading activity, sophistication of capital
market activities and shareholder
protection. |
|
• |
|
Investment Restrictions—including the
level of foreign ownership allowed in the Emerging Market Country, the
method of investment allowed (e.g., direct investment or through funds),
required holding periods, ability to repatriate earnings and applicable
tax
regulations. |
The
Investment Manager uses a systematic, bottom-up process to select particular
issuers for investment within each Emerging Market Country based on, among other
factors, ESG Criteria, sustainability factors, market valuations, prospective
growth prospects, sustainability of competitive advantage, financial condition,
asset backing and liquidity. Sustainability factors include the level and
sustainability of returns on capital, the ability to generate strong predictable
cash flow, balance sheet figures and skillful management teams that can sustain
competitive advantages. Potential investments are then systematically ranked in
accordance with the strength of fundamentals and attractiveness of valuation.
The Investment Manager then selects particular issuers in an effort to produce a
broad portfolio of investments in Emerging Market Countries that satisfy the ESG
Criteria.
The
Investment Manager monitors each of the Emerging Market Countries in which the
Fund has invested or may invest on a continuous basis and makes tactical shifts
in the Fund’s portfolio allocation when it sees fit based on new developments
and changes in the factors cited above. The Investment Manager may in its sole
discretion consider selling a particular security held in the Fund’s portfolio
when the factors that led to its investment change adversely or when a more
attractive candidate in the particular Emerging Market Country is
identified.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, including
obligations of non-Emerging Market Issuers and countries, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in equity securities and other
equity-related investments of Emerging Market Issuers that the Investment
Manager believes satisfy the ESG Criteria. The Fund’s investments in derivatives
and other synthetic instruments that have economic characteristics similar to
these investments will be counted toward satisfaction of the Fund’s 80%
investment policy. For example, futures contracts may be used to obtain
investment exposure equal to a portion or all of the Fund’s cash
positions.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the brokerage commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Example, may adversely affect the
Fund’s investment performance.
The
Fund may invest in A Shares of companies based in the People’s Republic of China
(“China”) that trade on the Shanghai Stock Exchange or the Shenzhen Stock
Exchange through the Shanghai-Hong Kong Stock Connect program and the
Shenzhen-Hong Kong Stock Connect program (together, “Stock Connect”). Stock
Connect is a mutual stock market access program designed to, among other things,
enable foreign investments in China.
Principal
Risks
It is possible
to lose money on an investment in the Fund. The Fund
will be affected by the investment decisions, techniques and risk analyses of
the Fund’s Investment Manager and there is no guarantee that the Fund will
achieve its investment objective. The principal risks of investing in the Fund,
which could adversely affect its net asset value, yield and total return are (in
alphabetical order after the first eight risks):
|
• |
|
Equity Securities Risk: Equity securities
may react more strongly to changes in an issuer’s financial condition or
prospects than other securities of the same
issuer; |
60
|
• |
|
Emerging Markets Risk: Compared to
foreign developed markets, investing in emerging markets may involve
heightened volatility, greater political, regulatory, legal and economic
uncertainties, less liquidity, dependence on particular commodities or
international aid, high levels of inflation, greater custody risk, and
certain special risks associated with smaller
companies; |
|
• |
|
ESG Criteria Risk: The ESG Criteria
applied by the Fund may cause the Fund to perform differently—positively
or negatively—when compared to funds that do not take into account similar
characteristics. The application of the ESG Criteria may cause the Fund to
sell or avoid stocks that subsequently perform well. There is a risk that
the issuers identified by the ESG Criteria may not operate sustainably or
within such criteria as expected. Furthermore, different interpretations
of what it means for an issuer to be sustainable or to have positive ESG
metrics may be applied by market
participants; |
|
• |
|
Foreign Investment Risk: Investments in
foreign (non-U.S.) issuers, directly or through use of depositary
receipts, may be negatively affected by adverse political, regulatory,
economic, market or other developments affecting issuers located in
foreign countries, currency exchange rates or regulations, or foreign
withholding or other taxes, and investing in foreign securities may result
in the Fund experiencing more rapid and extreme changes in value than a
fund that invests exclusively in securities of U.S.
issuers; |
|
• |
|
Focused Investment Risk: Focusing a
fund’s investments in a limited number of issuers, sectors or industries
increases risk and the volatility of the value of a fund’s shares. The
Fund may be particularly susceptible to economic, political, regulatory or
other events affecting the issuers, sectors or industries to the extent it
focuses its investments; |
|
• |
|
Financial Services Risk: Investments in
issuers in the financial services sector are subject to various risks
affecting financial services companies and the financial services sector
generally. The values of investments in the financial services sector are
particularly sensitive to changes in economic conditions, such as
recessions and fluctuations in interest rates. Financial services
companies may be exposed to leverage, which could magnify investment
losses under adverse market conditions. Investments in the financial
services sector are also subject to the risk that unexpected market,
economic, political, regulatory or other events might lead to a decline in
the value of most or all companies in the financial services sector. In
addition, the financial services sector of emerging markets can be
considered riskier than the U.S. financial services
sector; |
|
• |
|
Geographic Focus Risk: The Fund may be
particularly susceptible to economic, political or regulatory events
affecting particular countries or regions to the extent the Fund focuses
its investments in such countries or
regions; |
|
• |
|
Limited Operating History Risk: The Fund
has a limited operating history for investors to evaluate and may not
achieve desired asset levels to maximize investment and operational
efficiencies; |
|
• |
|
China Risk: Investing in securities of
Chinese issuers involves certain risks and considerations not typically
associated with investing in securities of U.S. issuers, including, among
others, more frequent trading suspensions and government interventions
(including by nationalization of assets), currency exchange rate
fluctuations or blockages, limits on the use of brokers and on foreign
ownership, different financial reporting standards, higher dependence on
exports and international trade, potential for increased trade tariffs,
sanctions, embargoes and other trade limitations, custody risks, risks
associated with investments in variable interest entities, and potential
adverse tax consequences. U.S. sanctions or other investment restrictions
could preclude the Fund from investing in certain Chinese issuers or cause
the Fund to sell investments at a disadvantageous time. Significant
portions of the Chinese securities markets may become rapidly illiquid, as
Chinese issuers have the ability to suspend the trading of their equity
securities, and have shown a willingness to exercise that option in
response to market volatility and other
events. |
|
• |
|
Convertible Securities Risk: Securities
that are convertible into preferred or common stocks are subject to the
risks of both debt and equity securities and the risk of changing in value
at a different rate than the underlying stocks. Convertible securities are
subject to greater levels of credit and liquidity risk, may be speculative
and may decline in value due to changes in interest rates or an issuer’s
or counterparty’s deterioration or
default; |
|
• |
|
Counterparty and Third Party Risk:
Transactions involving a counterparty to a derivative contract,
repurchase agreement, reverse repurchase agreement, or other financial
instrument, or to a third party responsible for servicing the instrument,
are subject to the credit risk of the counterparty or third party, and to
the counterparty’s or third party’s ability to perform in accordance with
the terms of the transaction; |
|
• |
|
Credit Risk: The Fund could lose money if
the issuer or counterparty is unable or unwilling to meet its financial
obligations, and the lack of ability, or perceived lack of ability, of the
issuer to make timely payments of interest and/or principal will
negatively affect the value of the security or
instrument; |
61
|
• |
|
Currency Management Strategies Risk:
Currency management strategies, including the use of forward
currency contracts and other derivatives, may substantially change the
Fund’s exposure to currencies and currency exchange rates and could result
in losses to the Fund if currencies do not perform as the Investment
Manager anticipates; |
|
• |
|
Currency Risk: Foreign (non-U.S.)
currencies may decline in value relative to the U.S. dollar and adversely
affect the value of the Fund’s investments in foreign currencies,
securities denominated in foreign currencies or derivatives that provide
exposure to foreign currencies; |
|
• |
|
Derivatives Risk: Investing in derivative
instruments may be considered risky and involves correlation,
documentation, interest rate, leverage, liquidity, market, management,
interest rate and valuation risks and the risk of losing more than the
principal amount invested; |
|
• |
|
Frontier Markets Risk: Frontier market
countries are emerging market countries, but generally have smaller
economies or less mature capital markets than more developed emerging
markets, and, as a result, the risks of investing in emerging market
countries are magnified in frontier countries. The markets of frontier
countries typically have low trading volumes and the potential for extreme
price volatility and illiquidity. This volatility may be further
heightened by the actions of a few major investors. For example, a
substantial increase or decrease in cash flows of mutual funds investing
in these markets could significantly affect local stock prices and,
therefore, the net asset value of Fund shares. These factors make
investing in frontier countries significantly riskier than in other
countries, including other emerging market countries, and any one of them
could cause the net asset value of the Fund’s shares to
decline; |
|
• |
|
Inflation/Deflation Risk: The value of
the Fund’s investments may decline as inflation reduces the value of
money; conversely, if deflation reduces prices throughout the economy
there may be an adverse effect on the creditworthiness of issuers in whose
securities the Fund invests and an increase in the likelihood of issuer
defaults; |
|
• |
|
Interest Rate Risk: Debt and other
securities and instruments may decline in value due to changes in interest
rates, the extended duration of principal payments at below-market
interest rates, and/or prepayment. The value of most fixed income
securities will generally decline in response to increases in interest
rates; |
|
• |
|
Investments in Pooled Vehicles Risk:
Investing in another investment company or pooled vehicle subjects
the Fund to that company’s risks, and, in general, to a pro rata portion
of that company’s fees and expenses in addition to fees and expenses
charged by the Fund; |
|
• |
|
IPO Risk: Securities offered in initial
public offerings (IPOs) are subject to many of the same risks of investing
in small companies and often to a heightened degree, their values may be
highly volatile, they have no trading history and information about the
issuer may have been available for only limited
periods; |
|
• |
|
Issuer Risk: The value of a security or
instrument may decline for reasons directly related to the issuer, such as
management performance, financial leverage and reduced demand for the
issuer’s goods or services; |
|
• |
|
Large Shareholder Risk: Shareholders of
the Fund, such as institutional investors, may disrupt the efficient
management of the Fund’s operations by purchasing or redeeming Fund shares
in large amounts; |
|
• |
|
Leverage Risk: Use of leverage, including
through borrowings, derivatives and reverse repurchase agreements, will
increase volatility of the Fund’s investment portfolio and magnify the
Fund’s investment losses or
gains; |
|
• |
|
Liquidity Risk: Illiquid securities and
other instruments may be highly volatile, difficult to value, and
difficult to sell or close out at favorable prices or
times; |
|
• |
|
Management Risk: The Fund’s investment
return depends on the ability of the Investment Manager to manage the
Fund’s portfolio successfully; there is a risk that the Investment Manager
may be incorrect in its analysis of economic trends, currencies,
countries, industries, companies, and the relative attractiveness of asset
classes or other matters; |
|
• |
|
Market Risk: The value of securities and
instruments owned by the Fund may rise and fall, sometimes rapidly or
unpredictably, due to factors affecting securities markets generally or
particular industries or geographic areas, including terrorism, war,
natural disasters and the spread of infectious disease including epidemics
or pandemics; |
|
• |
|
Over-the-Counter Risk: Securities and
derivatives traded in over-the-counter markets may trade less frequently
and in limited volumes and thus exhibit more volatility and liquidity
risk, and the prices paid by the Fund in over-the-counter transactions may
include an undisclosed dealer
markup; |
|
• |
|
Portfolio Turnover Risk: If the Fund
frequently trades its securities, this will increase transaction costs,
may result in taxable capital gains, and may reduce the Fund’s investment
performance; |
62
|
• |
|
Small and Mid-Sized Companies Risk:
Investments in securities issued by small and mid-sized companies
tend to be more vulnerable to adverse developments than larger companies,
and may present increased volatility and liquidity risk;
and |
|
• |
|
Valuation Risk: Certain securities and
instruments may be difficult to value, and to the extent the Fund sells a
security or instrument at a price lower than that used to value the
security, its net asset value will be adversely
affected. |
An investment in the Fund is not a bank deposit and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Performance
Information
The bar chart and performance table that follow
provide some indication of the risks of investing in the Fund by showing changes
in the Fund’s Institutional Class Shares’ performance from year to year and
comparing the Fund’s performance to a broad-based market index.
The bar chart and the information immediately below it show only the performance
of the Fund’s Institutional Class Shares. Although Class A and
Class C Shares would have similar annual returns (because all the Fund’s
shares represent interests in the same portfolio of securities), Class A
and Class C performance would be lower than Institutional
Class performance because of the lower expenses paid by Institutional
Class Shares of the Fund. The bar
chart does not reflect any sales loads applicable to Class A or
Class C Shares. The performance shown in the bar chart
would be lower if it reflected sales charges applicable to Class A and
Class C Shares. Performance for Class A and Class C
shares in the Average Annual Total Returns table reflects the impact of sales
charges. You may obtain the Fund’s updated performance
information by visiting the website at www.ashmoregroup.com or by calling
866-876-8294. As
with all mutual funds, the Fund’s past performance (before and after taxes) does
not predict how the Fund will perform in the
future.
Calendar
Year Total Return—Institutional Class
Ashmore
Emerging Markets Equity ESG Fund % Total Return
The
best calendar
quarter return during the period shown above was 12.29% in the fourth quarter of 2022; the
worst was
(17.57)% in the first quarter of
2022.
Average
Annual Total Return
(For the period ended December 31, 2023)
|
|
|
|
|
|
|
|
|
| |
|
|
1-Year |
|
Since Inception Date of 02/26/20 |
Institutional
Class |
|
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
11.73% |
| |
|
|
4.10% |
|
Return
after taxes on distributions |
|
|
|
11.66% |
| |
|
|
2.74% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
|
7.22% |
| |
|
|
2.98% |
|
MSCI
EM Net |
|
|
|
9.83% |
| |
|
|
2.02% |
|
Class A |
|
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
5.50% |
| |
|
|
2.39% |
|
MSCI
EM Net |
|
|
|
9.83% |
| |
|
|
2.02% |
|
Class C |
|
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
9.49% |
| |
|
|
3.13% |
|
MSCI
EM Net |
|
|
|
9.83% |
| |
|
|
2.02% |
|
63
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown, and after-tax returns shown are
not relevant to investors who hold their Fund shares through tax-advantaged
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Institutional
Class Shares only and will vary for Class A and Class C
Shares.
Management
of the Fund
Investment Manager
Ashmore
Investment Advisors Limited (“the Investment Manager”)
Portfolio Manager
Dhiren
Shah and Patrick Cadell, co-portfolio managers, are primarily responsible for
the day-to-day management of the Fund. Mr. Shah and Mr. Cadell have
participated in the day-to-day management of the Fund since 2020 and 2021,
respectively.
Purchase
and Sale of Fund Shares
The
minimum initial investment for Class A and Class C Shares is $1,000
and the minimum subsequent investment is $50. The minimum initial investment for
Institutional Class Shares is $1,000,000 and the minimum subsequent
investment is $5,000. These minimums may be waived or modified by the Fund or
the Distributor, including for certain financial intermediaries. Investors
investing in the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries. You may sell (redeem) shares on any
day the New York Stock Exchange is open through your broker-dealer or other
financial intermediary (if applicable), or if you hold an account directly with
the Fund by calling 866-876-8294 or by sending a letter of instruction to
Ashmore Funds c/o Northern Trust Company, PO Box 4766, Chicago, IL 60680-4766.
If your shares are held in the name of a financial intermediary, those shares
may only be sold through that financial intermediary.
Tax
Information
The
Fund normally distributes net investment income and net realized capital gains
to shareholders. These distributions are generally taxable to you as ordinary
income or capital gains, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan or an individual retirement account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund, the Distributor, the Investment Manager
or their affiliates may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
64
Ashmore
Emerging Markets Low Duration Fund
(formerly,
Ashmore Emerging Markets Short Duration Select
Fund)
Investment
Objective
The
Fund seeks to maximize total return.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell Class A, Class C or Institutional Class Shares of the
Fund. You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below. You may
qualify for sales charge discounts on a purchase of Class A Shares if you
and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of
the Funds. More information about these and other discounts is
available in the “Classes of Shares” section beginning on page 138 of the
Fund’s prospectus or from your financial intermediary. Investors investing in
the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shareholder
Fees |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(fees paid directly from
your investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
2.25% |
|
|
|
|
None |
| |
|
|
None |
|
Maximum
Deferred Sales Charge (CDSC) (Load)(1) (as a percentage
of the lower of original purchase price or NAV) |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Redemption
Fee |
|
|
|
None |
| |
|
|
None |
| |
|
|
None |
|
|
|
| |
|
Annual
Fund Operating Expenses |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(Expenses that you pay
each year as a percentage of the value of your
investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Management
Fees |
|
|
|
0.65% |
| |
|
|
0.65% |
| |
|
|
0.65% |
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
0.25% |
| |
|
|
1.00% |
| |
|
|
None |
|
Other
Expenses |
|
|
|
1.24% |
| |
|
|
1.17% |
| |
|
|
0.98% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
2.14% |
| |
|
|
2.82% |
| |
|
|
1.63% |
|
Fee
Waiver and/or Expense Reimbursement(2) |
|
|
|
(1.22)% |
| |
|
|
(1.15)% |
| |
|
|
(0.96)% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
|
0.92% |
| |
|
|
1.67% |
| |
|
|
0.67% |
|
(1) |
For
Class A Shares, the CDSC is imposed only where shares are purchased
without a front-end sales charge and subsequently redeemed within eighteen
months of purchase. For Class C Shares, the CDSC is imposed only on
shares redeemed within one year of
purchase. |
(2) |
Ashmore Investment Advisors Limited has
contractually agreed to waive its fees or reimburse the Fund for other
expenses to the extent that Total Annual Fund Operating Expenses (other
than Acquired Fund Fees and Expenses, interest expense, taxes,
extraordinary expenses, custodial credits, transfer agency credits, and
expense offset arrangements) for the Fund’s Class A Shares exceed
0.92%, for the Fund’s Class C Shares exceed 1.67% and for the Fund’s
Institutional Class Shares exceed 0.67% of the Fund’s average daily
net assets attributable to the share class. The expense limitation
arrangement may be terminated before February 28, 2025 only
by the Board of Trustees. Under the Expense Limitation Agreement, the
Investment Manager may recoup any amounts waived or reimbursed for 36
months following the end of the month when the waiver or reimbursement
occurred, provided total expenses, including such recoupment, do not
exceed the applicable annual expense limit, and further that a prior
fiscal year’s expenses may be recouped only if and to the extent that the
expense ratio at the time of such recoupment is less than the annual
expense limit in place at the time such expenses were waived or
reimbursed. |
65
Examples
These
Examples are intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Examples assume that you invest
$10,000 in the noted class of shares of the Fund for the time periods indicated,
your investment has a 5% return each year and the Fund’s operating expenses
remain the same. Class C Shares automatically convert to Class A
Shares after eight years. The expense example for Class C Shares for the
ten-year period reflects the conversion to Class A Shares. The Examples are
based, for the first year, on Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement and, for all other periods, on Total Annual
Fund Operating Expenses. Although your actual costs may be higher or lower, the
Examples show what your costs would be based on these
assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Example: Assuming you redeem your shares
at the end of each period |
|
Example: Assuming you do not redeem your
shares |
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Class A
Shares |
|
|
$ |
317 |
| |
|
$ |
765 |
| |
|
$ |
1,239 |
| |
|
$ |
2,547 |
| |
|
$ |
317 |
| |
|
$ |
765 |
| |
|
$ |
1,239 |
| |
|
$ |
2,547 |
|
Class C
Shares |
|
|
$ |
270 |
| |
|
$ |
765 |
| |
|
$ |
1,387 |
| |
|
$ |
2,901 |
| |
|
$ |
170 |
| |
|
$ |
765 |
| |
|
$ |
1,387 |
| |
|
$ |
2,901 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Institutional
Class Shares (whether or not shares are redeemed) |
|
|
|
$ |
68 |
| |
|
$ |
420 |
| |
|
$ |
796 |
| |
|
$ |
1,852 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, adversely affect the
Fund’s investment performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 50% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks to achieve its objective by investing principally in short-term debt
instruments of, and derivative instruments related to, Sovereign,
Quasi-Sovereign and Corporate issuers of Emerging Market Countries (as defined
below) denominated exclusively in Hard Currencies (i.e., the U.S. dollar or any
currency of a nation in the G-7). The Fund normally seeks to maintain a weighted
average portfolio duration of between 1 and 3 years and an Investment Grade
weighted average credit rating. The Fund has no restrictions on individual
security duration.
Investment Grade means a credit rating of BBB- or
above from Standard & Poor’s or equivalent rating from Moody’s or
Fitch. If an investment is rated by two or more rating agencies, the highest
rating will apply. If an investment is not rated at the time of acquisition, the
rating of the relevant issuer or the Sovereign shall apply. If an investment is
downgraded after the date of acquisition by the Fund then the Investment Manager
has discretion as to whether to hold the investment.
Weighted average credit rating for these purposes is
determined by reference to the credit quality of eligible instruments, which
include rated securities and debt instruments held by the Fund and derivatives
where the rating of the underlying instrument can be identified (cash, unrated
and unrateable instruments are not included in the calculation). Weights are
based on the market value of each eligible instrument divided by the total
market value attributable to eligible instruments held by the Fund.
Duration is one measure of the expected life of a
fixed income instrument that is used to determine the sensitivity of a
security’s price to changes in interest rates. Securities with longer durations
tend to be more sensitive to changes in interest rates, usually making them more
volatile than securities with shorter durations. Accordingly, bond funds with
longer average portfolio durations will generally be more sensitive to changes
in interest rates than bond funds with shorter average portfolio durations. By
way of example, the price of a bond fund with a duration of five years would be
expected to fall approximately 5% if interest rates rose by one percentage
point.
Sovereigns are governments of Emerging Market
Countries. For these purposes, Sovereigns may include EM Supra-Nationals.
Quasi-Sovereigns are entities (including a local or regional governmental body)
that are 100% guaranteed by a Sovereign or 100% directly or indirectly owned or
controlled by a Sovereign. For the avoidance of doubt, a province and a
66
city are classified as Quasi-Sovereigns. A Corporate
issuer is any issuer other than a Sovereign or a Quasi-Sovereign that is located
in an Emerging Market Country or, an issuer deriving at least 50% of its
revenues or profits from goods produced or sold, investments made, or services
performed in one or more Emerging Market Countries or that has at least 50% of
its assets in one or more Emerging Market Countries. Emerging Market Country
means any country included by the International Monetary Fund in its list of
Emerging and Developing Economies, any country which is considered a low-income,
lower-middle-income, or upper-middle-income economy by the World Bank, and all
countries represented in any widely-recognized index of emerging market
securities (e.g., the relevant indices in the family of J.P. Morgan Corporate
Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets Index, J.P.
Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond Index—Emerging
Markets and MSCI Emerging and Frontier Markets Index).
The
Fund may invest in debt instruments of all types, whether subordinated or
unsubordinated, secured or unsecured, quoted or unquoted, rated or unrated, or
fixed rate. These may include, without limitation, bonds, debentures, notes,
convertible securities, commercial paper, loans and related assignments and
participations, bank certificates of deposit, fixed time deposits, bankers’
acceptances, and money market instruments, including money market funds
denominated in U.S. dollars or other currencies. The Fund may invest in
companies of any market capitalization, and its allocations among small-, mid-
and large-capitalization issuers may vary significantly over
time.
The
Fund’s benchmark index, the JP Morgan CEMBI Investment Grade Broad Diversified
(1-3 years) Index, is currently concentrated in the banking industry. Although
the Fund is not an index fund and does not seek to replicate the performance of
its benchmark index, it may concentrate its investments in the banking industry.
As of the
date of this Prospectus, the Fund’s investments are concentrated in the banking
industry.
The
Fund may invest in obligations of any credit quality, including obligations that
are in default or that are subject to insolvency proceedings. The Fund may
invest in debt securities that are rated below Investment Grade or that are
unrated but judged by the Investment Manager to be of comparable quality (i.e.,
“junk bonds”).
The
Fund may utilize various derivative instruments and related strategies,
including to gain exposure to one or more of the issuers referred to above or
other assets. The Fund may utilize derivatives of all types and may invest in,
without limitation, call and put options (including options on futures
contracts), futures and forward contracts and swap agreements (including total
return, interest rate, and credit default swaps), credit-linked notes,
structured notes and other related instruments with respect to individual
currencies, bonds, and securities of any kind, indices and baskets of
securities, interest rates and currencies as part of its principal investment
strategies. The Fund may use derivatives for hedging or efficient portfolio
management purposes, but may also use them to increase the Fund’s investment
exposure beyond that which it could achieve by investing directly in more
conventional securities. The Fund may invest in currency-related transactions,
such as currency forward transactions (including deliverable and non-deliverable
forwards), currency futures transactions and currency options transactions, and
may also invest directly in foreign currencies, in each case for hedging or
other investment purposes.
The
Fund may invest in convertible debt instruments and equity securities related to
convertible securities or warrants the Fund holds or has held, as well as
acquire and hold equity securities, including warrants, resulting from debt
conversion or restructuring. The Fund may invest in the securities of other
investment companies, including exchange-traded funds (“ETFs”) and other pooled
vehicles, if the investment companies invest principally in the types of
investments in which the Fund may invest directly. The Fund may also lend its
portfolio securities, borrow money for investment and other purposes, and enter
into repurchase and reverse repurchase agreement
transactions.
In
managing the Fund, the Investment Manager’s fixed income and asset allocation
investment committee (the “Investment Committee”), together with the relevant
portfolio managers (together with the Investment Committee, the “Investment
Team”), employs a largely top-down, active and value-driven investment approach
in analyzing emerging markets and currencies. The Fund’s investment approach
includes an emphasis on the influence of politics (both local and
international). The Investment Team combines this top-down approach with an
analytically-driven, bottom-up approach to making purchase and sale decisions
with respect to individual corporate credits. The Investment Team seeks to
invest in a portfolio of short duration fixed-income securities in an effort to
limit the Fund’s exposure to interest rate risk. The Investment Team seeks
opportunities in selected emerging markets that it believes may benefit from
significant positive changes, such as political and economic reforms, increases
in capital inflows and investor confidence, and seeks to invest in issuers in
government and Corporate sectors it expects will benefit from such developments
and associated economic development and growth. The Investment Team’s investment
process focuses on global and emerging markets fundamentals and considers
factors such as liquidity and risk management at the macro
level.
67
This
approach utilizes the Investment Manager’s broad and current knowledge of
important investment areas in various Emerging Market Countries gained, in part,
through research, experience, long-standing relationships with reliable local
firms and, where appropriate, visits by its investment personnel to countries in
their respective regions of
responsibility.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in bonds and other debt instruments
issued by Sovereign, Quasi-Sovereign or Corporate issuers of Emerging Market
Countries. The Fund’s investments in derivatives and other synthetic instruments
that have economic characteristics similar to the investments described above
will be counted toward satisfaction of the Fund’s 80% investment
policy.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the bid/asked spread on purchases and sales of
securities, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may
result in higher taxes for you if your Fund shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Examples, may adversely affect the Fund’s investment
performance.
Principal
Risks
It is possible
to lose money on an investment in the Fund. The Fund will
be affected by the investment decisions, techniques and risk analyses of the
Fund’s Investment Manager and there is no guarantee that the Fund will achieve
its investment objective. The principal risks of investing in the Fund, which
could adversely affect its net asset value, yield and total return are (in
alphabetical order after the first seven risks):
|
• |
|
Emerging Markets Risk: Compared to
foreign developed markets, investing in emerging markets may involve
heightened volatility, greater political, regulatory, legal and economic
uncertainties, less liquidity, dependence on particular commodities or
international aid, high levels of inflation, greater custody risk, and
certain special risks associated with smaller
companies; |
|
• |
|
Foreign Investment Risk: Investments in
foreign (non-U.S.) issuers, directly or through use of depositary
receipts, may be negatively affected by adverse political, regulatory,
economic, market or other developments affecting issuers located in
foreign countries, currency exchange rates or regulations, or foreign
withholding or other taxes, and investing in foreign securities may result
in the Fund experiencing more rapid and extreme changes in value than a
fund that invests exclusively in securities of U.S.
issuers; |
|
• |
|
Geographic Focus Risk: The Fund may be
particularly susceptible to economic, political or regulatory events
affecting particular countries or regions to the extent the Fund focuses
its investments in such countries or
regions; |
|
• |
|
Currency Risk: Foreign (non-U.S.)
currencies may decline in value relative to the U.S. dollar and adversely
affect the value of the Fund’s investments in foreign currencies,
securities denominated in foreign currencies or derivatives that provide
exposure to foreign currencies; |
|
• |
|
Issuer Risk: The value of a security or
instrument may decline for reasons directly related to the issuer, such as
management performance, financial leverage and reduced demand for the
issuer’s goods or services; |
|
• |
|
Credit Risk: The Fund could lose money if
the issuer or counterparty is unable or unwilling to meet its financial
obligations, and the lack of ability, or perceived lack of ability, of the
issuer to make timely payments of interest and/or principal will
negatively affect the value of the security or
instrument; |
|
• |
|
Limited Operating History Risk: The Fund
has a limited operating history for investors to evaluate and may not
achieve desired asset levels to maximize investment and operational
efficiencies; |
|
• |
|
Banking Industry Risk: Investments in
banking industry stocks, as compared to other industries in general, may
be considered to be more volatile or riskier due to a number of factors
including more extensive government regulation that may reduce profit
potential for banks compared to other entities. Financial services
institutions are |
68
|
often
subject to extensive governmental regulation and, recently, government
intervention and the potential for additional regulation, which may
adversely affect the scope of their activities, the prices they can charge
and the amount of capital they must maintain. The oversight of, and
regulations applicable to, companies in the banking industry in frontier
markets may be ineffective and underdeveloped relative to more developed
markets. Recent events in the financial sector have resulted, and may
continue to result, in an unusually high degree of volatility in the
financial markets, both domestic and foreign, and caused certain financial
services companies to incur large losses. The impact of recent or future
regulation in various countries on any individual bank or on the sector as
a whole cannot be predicted. In addition, the banking industry of frontier
markets can be considered riskier than the U.S. banking
industry; |
|
• |
|
Counterparty and Third Party Risk:
Transactions involving a counterparty to a derivative contract,
repurchase agreement, reverse repurchase agreement, or other financial
instrument, or to a third party responsible for servicing the instrument,
are subject to the credit risk of the counterparty or third party, and to
the counterparty’s or third party’s ability to perform in accordance with
the terms of the transaction; |
|
• |
|
Currency Management Strategies Risk:
Currency management strategies, including the use of forward
currency contracts and other derivatives, may substantially change the
Fund’s exposure to currencies and currency exchange rates and could result
in losses to the Fund if currencies do not perform as the Investment
Manager anticipates; |
|
• |
|
Derivatives Risk: Investing in derivative
instruments may be considered risky and involves correlation,
documentation, interest rate, leverage, liquidity, market, management,
interest rate and valuation risks and the risk of losing more than the
principal amount invested; |
|
• |
|
Equity Securities Risk: Equity securities
may react more strongly to changes in an issuer’s financial condition or
prospects than other securities of the same
issuer; |
|
• |
|
Focused Investment Risk: Focusing a
fund’s investments in a limited number of issuers, sectors or industries
increases risk and the volatility of the value of a fund’s shares. The
Fund may be particularly susceptible to economic, political, regulatory or
other events affecting the issuers, sectors or industries to the extent it
focuses its investments; |
|
• |
|
High Yield Risk: Below investment grade
securities and unrated securities of similar credit quality (commonly
known as “high yield” securities or “junk bonds”) are subject to greater
levels of credit and liquidity risks than higher quality securities, and
are considered predominantly speculative with respect to the issuer’s
continuing ability to make principal and interest
payments; |
|
• |
|
Inflation/Deflation Risk: The value of
the Fund’s investments may decline as inflation reduces the value of
money; conversely, if deflation reduces prices throughout the economy
there may be an adverse effect on the creditworthiness of issuers in whose
securities the Fund invests and an increase in the likelihood of issuer
defaults; |
|
• |
|
Interest Rate Risk: Debt and other
securities and instruments may decline in value due to changes in interest
rates, the extended duration of principal payments at below-market
interest rates, and/or prepayment. The value of most fixed income
securities will generally decline in response to increases in interest
rates; |
|
• |
|
Investments in Pooled Vehicles Risk:
Investing in another investment company or pooled vehicle subjects
the Fund to that company’s risks, and, in general, to a pro rata portion
of that company’s fees and expenses in addition to fees and expenses
charged by the Fund; |
|
• |
|
Large Shareholder Risk: Shareholders of
the Fund, such as institutional investors, may disrupt the efficient
management of the Fund’s operations by purchasing or redeeming Fund shares
in large amounts; |
|
• |
|
Leverage Risk: Use of leverage, including
through borrowings, derivatives and reverse repurchase agreements, will
increase volatility of the Fund’s investment portfolio and magnify the
Fund’s investment losses or
gains; |
|
• |
|
Liquidity Risk: Illiquid securities and
other instruments may be highly volatile, difficult to value, and
difficult to sell or close out at favorable prices or
times; |
|
• |
|
Management Risk: The Fund’s investment
return depends on the ability of the Investment Manager to manage the
Fund’s portfolio successfully; there is a risk that the Investment Manager
may be incorrect in its analysis of economic trends, currencies,
countries, industries, companies, and the relative attractiveness of asset
classes or other matters; |
|
• |
|
Market Risk: The value of securities and
instruments owned by the Fund may rise and fall, sometimes rapidly or
unpredictably, due to factors affecting securities markets generally or
particular industries or geographic areas, including terrorism, war,
natural disasters and the spread of infectious disease including epidemics
or pandemics; |
69
|
• |
|
Over-the-Counter Risk: Securities and
derivatives traded in over-the-counter markets may trade less frequently
and in limited volumes and thus exhibit more volatility and liquidity
risk, and the prices paid by the Fund in over-the-counter transactions may
include an undisclosed dealer
markup; |
|
• |
|
Portfolio Turnover Risk: If the Fund
frequently trades its securities, this will increase transaction costs,
may result in taxable capital gains, and may reduce the Fund’s investment
performance; |
|
• |
|
Small and Mid-Sized Companies Risk:
Investments in securities issued by small and mid-sized companies
tend to be more vulnerable to adverse developments than larger companies,
and may present increased volatility and liquidity risk;
and |
|
• |
|
Valuation Risk: Certain securities and
instruments may be difficult to value, and to the extent the Fund sells a
security or instrument at a price lower than that used to value the
security, its net asset value will be adversely
affected. |
An investment in the Fund is not a bank deposit and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
Performance
Information
The bar chart and performance table that follow
provide some indication of the risks of investing in the Fund by showing changes
in the Fund’s Institutional Class Shares’ performance from year to year and
comparing the Fund’s performance to a broad-based market index.
The bar chart and the information immediately below it show only the performance
of the Fund’s Institutional Class Shares. Although Class A and
Class C Shares would have similar annual returns (because all the Fund’s
shares represent interests in the same portfolio of securities), Class A
and Class C performance would be lower than Institutional
Class performance because of the lower expenses paid by Institutional
Class Shares of the Fund. The bar
chart does not reflect any sales loads applicable to Class A or
Class C Shares. The performance shown in the bar chart
would be lower if it reflected sales charges applicable to Class A and
Class C Shares. Performance for Class A and Class C
shares in the Average Annual Total Returns table reflects the impact of sales
charges. You may obtain the Fund’s updated performance
information by visiting the website at www.ashmoregroup.com or by calling
866-876-8294. As
with all mutual funds, the Fund’s past performance (before and after taxes) does
not predict how the Fund will perform in the
future.
Calendar
Year Total Return—Institutional Class
Ashmore
Emerging Markets Low Duration Fund % Total Return
The
best calendar
quarter return during the period shown above was 3.18% in the fourth quarter of 2022; the
worst was
(6.08)% in the first quarter of
2022.
70
Average
Annual Total Return
(For the period ended
December 31, 2023)
|
|
|
|
|
|
|
|
|
| |
|
|
1-Year |
|
Since Inception Date of 06/15/20 |
Institutional
Class |
|
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
6.12% |
| |
|
|
0.11% |
|
Return
after taxes on distributions |
|
|
|
4.44% |
| |
|
|
-1.51% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
|
3.59% |
| |
|
|
-0.58% |
|
JP
Morgan CEMBI BD IG1 to3 year |
|
|
|
5.89% |
| |
|
|
-0.04% |
|
Class A |
|
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
3.56% |
| |
|
|
-0.72% |
|
JP
Morgan CEMBI BD IG1 to3 year |
|
|
|
5.89% |
| |
|
|
-0.04% |
|
Class C |
|
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
4.02% |
| |
|
|
-0.88% |
|
JP
Morgan CEMBI BD IG1 to3 year |
|
|
|
5.89% |
| |
|
|
-0.04% |
|
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown, and after-tax returns shown are
not relevant to investors who hold their Fund shares through tax-advantaged
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Institutional
Class Shares only and will vary for Class A and Class C
Shares.
Management
of the Fund
Investment Manager
Ashmore
Investment Advisors Limited (“the Investment Manager”)
Investment Team
Mark
Coombs, Chief Executive Officer and Chairman of the Investment Committee;
Ricardo Xavier, Deputy Chairman of the Investment Committee; Herbert Saller,
Senior Portfolio Manager and Member of the Investment Committee; Robin Forrest,
Senior Portfolio Manager and Member of the Investment Committee; Cemil Urganci,
Senior Portfolio Manager and Member of the Investment Committee and Fernando
Assad, Senior Portfolio Manager and Member of the Investment Committee, are
primarily responsible for the day-to-day management of the Fund.
Mr. Forrest has participated in the management of the Fund since 2012;
Mr. Assad has participated in the management of the Fund since 2016;
and Mr. Urganci has participated in the management of the Fund since May
2023. Each of the other members of the Investment Team has participated in the
management of the Fund since its inception in 2010.
Purchase
and Sale of Fund Shares
The
minimum initial investment for Class A and Class C Shares is $1,000
and the minimum subsequent investment is $50. The minimum initial investment for
Institutional Class Shares is $1,000,000 and the minimum subsequent
investment is $5,000. These minimums may be waived or modified by the Fund or
the Distributor, including for certain financial intermediaries. Investors
investing in the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries. You may sell (redeem) shares on any
day the New York Stock Exchange is open through your broker-dealer or other
financial intermediary (if applicable), or if you hold an account directly with
the Fund by calling 866-876-8294 or by sending a letter of instruction to
Ashmore Funds c/o Northern Trust Company, PO Box 4766, Chicago, IL 60680-4766.
If your shares are held in the name of a financial intermediary, those shares
may only be sold through that financial intermediary.
Tax
Information
The
Fund normally distributes net investment income and net realized capital gains
to shareholders. These distributions are generally taxable to you as ordinary
income or capital gains, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan or an individual retirement account.
71
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund, the Distributor, the Investment Manager
or their affiliates may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
72
Ashmore
Emerging Markets Debt Fund
(formerly,
Ashmore Emerging Markets Investment Grade Income
Fund
Investment
Objective
The Fund seeks to maximize income, with a secondary objective of long-term capital
appreciation.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell Class A, Class C or Institutional Class Shares of the
Fund. You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below. You may
qualify for sales charge discounts on a purchase of Class A Shares if you
and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of
the Funds. More information about these and other discounts is
available in the “Classes of Shares” section beginning on page 138 of the
Fund’s prospectus or from your financial intermediary. Investors investing in
the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shareholder
Fees |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(fees paid directly from
your investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
4.00% |
|
|
|
|
None |
| |
|
|
None |
|
Maximum
Deferred Sales Charge (CDSC)(Load)(1) (as a percentage
of the lower of original purchase price or NAV) |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Redemption
Fee |
|
|
|
None |
| |
|
|
None |
| |
|
|
None |
|
|
|
| |
|
Annual
Fund Operating Expenses |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(Expenses that you pay
each year as a percentage of the value of your
investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Management
Fees(2) |
|
|
|
0.65% |
| |
|
|
0.65% |
| |
|
|
0.65% |
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
0.25% |
| |
|
|
1.00% |
| |
|
|
None |
|
Other
Expenses |
|
|
|
0.80% |
| |
|
|
0.48% |
| |
|
|
0.62% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
1.70% |
| |
|
|
2.13% |
| |
|
|
1.27% |
|
Fee
Waiver and/or Expense Reimbursement(3) |
|
|
|
(0.78)% |
| |
|
|
(0.46)% |
| |
|
|
(0.60)% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
|
0.92% |
| |
|
|
1.67% |
| |
|
|
0.67% |
|
(1) |
For Class A Shares, the CDSC is imposed only where
shares are purchased without a front-end sales charge and subsequently
redeemed within eighteen months of purchase. For Class C Shares, the
CDSC is imposed only on shares redeemed within one year of
purchase. |
(2) |
Management fees have been restated to
reflect current
fees. |
(3) |
Ashmore
Investment Advisors Limited has contractually agreed to waive its fees or
reimburse the Fund for other expenses to the extent that Total Annual Fund
Operating Expenses (other than Acquired Fund Fees and Expenses, interest
expense, taxes, extraordinary expenses, custodial credits, transfer agency
credits, and expense offset arrangements) for the Fund’s Class A
Shares exceed 0.92%, for the Fund’s Class C Shares exceed 1.67% and
for the Fund’s Institutional Class Shares exceed 0.67% of the Fund’s
average daily net assets attributable to the share class. The expense
limitation arrangement may be terminated before February 28, 2025 only
by the Board of Trustees. Under the Expense Limitation Agreement, the
Investment Manager may recoup any amounts waived or reimbursed for 36
months following the end of the month when the waiver or reimbursement
occurred, provided total expenses, including such recoupment, do not
exceed the applicable annual expense limit, and further that a prior
fiscal year’s expenses may be recouped only if and to the extent that the
expense ratio at the time of such recoupment is less than the annual
expense limit in place at the time such expenses were waived or
reimbursed. |
73
Examples
These
Examples are intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Examples assume that you invest
$10,000 in the noted class of shares of the Fund for the time periods indicated,
your investment has a 5% return each year and the Fund’s operating expenses
remain the same. Class C Shares automatically convert to Class A
Shares after eight years. The expense example for Class C Shares for the
ten-year period reflects the conversion to Class A Shares. The Examples are
based, for the first year, on Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement and, for all other periods, on Total Annual
Fund Operating Expenses. Although your actual costs may be higher or lower, the
Examples show what your costs would be based on these
assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Example: Assuming you redeem your shares
at the end of each period |
|
Example: Assuming you do not redeem your
shares |
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Class A
Shares |
|
|
$ |
490 |
| |
|
$ |
841 |
| |
|
$ |
1,216 |
| |
|
$ |
2,266 |
| |
|
$ |
490 |
| |
|
$ |
841 |
| |
|
$ |
1,216 |
| |
|
$ |
2,266 |
|
Class C
Shares |
|
|
$ |
270 |
| |
|
$ |
623 |
| |
|
$ |
1,102 |
| |
|
$ |
2,316 |
| |
|
$ |
170 |
| |
|
$ |
623 |
| |
|
$ |
1,102 |
| |
|
$ |
2,316 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Institutional
Class Shares (whether or not shares are redeemed) |
|
|
|
$ |
68 |
| |
|
$ |
343 |
| |
|
$ |
639 |
| |
|
$ |
1,481 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, adversely affect the
Fund’s investment performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 109% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks to achieve its objective by investing principally in debt instruments
of Sovereigns and Quasi- Sovereigns of Emerging Market Countries and EM
Supra-Nationals denominated principally in Hard Currencies (i.e., the U.S.
dollar or any currency of a nation in the G-7). The Fund has no restrictions on
individual security duration. The Fund observes a policy to normally invest at
least 80% of its net assets (plus borrowings made for investment purposes) in
bonds and other debt instruments of Sovereign or Quasi-Sovereign issuers of
Emerging Market Countries and EM
Supra-Nationals.
Sovereigns are governments of Emerging Market
Countries. Quasi-Sovereigns are entities (including a local or regional
governmental body) that are 100% guaranteed by a Sovereign or 100% directly or
indirectly owned or controlled by a Sovereign. For the avoidance of doubt, a
province and a city are classified as Quasi-Sovereigns. EM Supra-Nationals are
Supra-National entities issuing debt instruments in a local currency of an
Emerging Market Country or providing exposure to an Emerging Market sovereign
credit risk. Emerging Market Country means any country included by the
International Monetary Fund in its list of Emerging and Developing Economies,
any country which is considered a low-income, lower-middle-income, or upper-
middle-income economy by the World Bank, and any country that is included in an
Emerging Market Index.
The
Fund may invest in debt instruments of all types, whether subordinated or
unsubordinated, secured or unsecured, quoted or unquoted, rated or unrated, or
floating rate or fixed rate. These may include, without limitation, bonds,
debentures, notes, convertible securities, commercial paper, loans and related
assignments and participations, bank certificates of deposit, fixed time
deposits, bankers’ acceptances, and money market instruments, including money
market funds denominated in U.S. dollars or other currencies. The Fund may
invest in companies of any market capitalization, and its allocations among
small-, mid- and large-capitalization issuers may vary significantly over
time.
The
Fund may invest in obligations of any credit quality, including obligations that
are in default or that are subject to insolvency proceedings. The Fund may
invest without limitation in debt securities that are rated below investment
grade or that are unrated but judged by the Investment Manager to be of
comparable quality (i.e., “junk bonds”).
The
Fund may utilize various derivative instruments and related strategies,
including to gain exposure to one or more of the issuers referred to above or
other assets. In addition, the Fund’s investments in derivatives and other
synthetic instruments
74
that
have economic characteristics similar to such investments will be counted toward
satisfaction of the Fund’s 80% investment policy. The Fund may utilize
derivatives of all types and may invest in, without limitation, call and put
options (including options on futures contracts), futures and forward contracts
and swap agreements (including total return, interest rate, and credit default
swaps), credit-linked notes, structured notes and other related instruments with
respect to individual currencies, bonds, and securities of any kind, indices and
baskets of securities, interest rates and currencies. The Fund may use
derivatives for hedging or efficient portfolio management purposes, but may also
use them to increase the Fund’s investment exposure beyond that which it could
achieve by investing directly in more conventional securities. The Fund may
invest in currency-related transactions such as currency forward transactions
(including deliverable and non-deliverable forwards), currency futures
transactions and currency options transactions, and may also invest directly in
foreign currencies, in each case for hedging or other investment
purposes.
The
Fund may invest in convertible debt instruments and equity securities related to
convertible securities or warrants the Fund holds or has held, as well as
acquire and hold equity securities, including warrants, resulting from debt
conversion or restructuring. The Fund may invest in the securities of other
investment companies, including exchange-traded funds (“ETFs”) and other pooled
vehicles, if the investment companies invest principally in the types of
investments in which the Fund may invest directly. The Fund may also lend its
portfolio securities, borrow money for investment and other purposes, and enter
into repurchase and reverse repurchase agreement
transactions.
In
managing the Fund, the Investment Manager’s fixed income and asset allocation
investment committee (the “Investment Committee”), together with the relevant
portfolio managers (together with the Investment Committee, the “Investment
Team”), employs a largely top-down, active and value-driven investment approach
in analyzing emerging markets and currencies. The Fund’s investment approach
includes an emphasis on the influence of politics (both local and
international). The Investment Team combines this top-down approach with an
analytically-driven, bottom-up approach to making purchase and sale decisions
with respect to individual corporate credits. The Investment Team seeks to
invest in a portfolio of fixed-income securities in an effort to limit the
Fund’s exposure to interest rate risk. The Investment Team seeks opportunities
in selected emerging markets that it believes may benefit from significant
positive changes, such as political and economic reforms, increases in capital
inflows and investor confidence, and seeks to invest in issuers in government
and Corporate sectors it expects will benefit from such developments and
associated economic development and growth. The Investment Team’s investment
process focuses on global and emerging markets fundamentals and considers
factors such as liquidity and risk management at the macro level. This approach
utilizes the Investment Manager’s broad and current knowledge of important
investment areas in various Emerging Market Countries gained, in part, through
research, experience, long-standing relationships with reliable local firms and,
where appropriate, visits by its investment personnel to countries in their
respective regions of responsibility.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the bid/asked spread on purchases and sales of
securities, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may
result in higher taxes for you if your Fund shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Examples, may adversely affect the Fund’s investment
performance.
Principal
Risks
It is possible
to lose money on an investment in the Fund. The Fund will
be affected by the investment decisions, techniques and risk analyses of the
Fund’s Investment Manager and there is no guarantee that the Fund will achieve
its investment objective. The principal risks of investing in the Fund, which
could adversely affect its net asset value, yield and total return are (in
alphabetical order after the first six risks):
|
• |
|
Emerging Markets Risk: Compared to
foreign developed markets, investing in emerging markets may involve
heightened volatility, greater political, regulatory, legal and economic
uncertainties, less liquidity, dependence on particular commodities or
international aid, high levels of inflation, greater custody risk, and
certain special risks associated with smaller
companies; |
75
|
• |
|
Foreign Investment Risk: Investments in
foreign (non-U.S.) issuers, directly or through use of depositary
receipts, may be negatively affected by adverse political, regulatory,
economic, market or other developments affecting issuers located in
foreign countries, currency exchange rates or regulations, or foreign
withholding or other taxes, and investing in foreign securities may result
in the Fund experiencing more rapid and extreme changes in value than a
fund that invests exclusively in securities of U.S.
issuers; |
|
• |
|
Geographic Focus Risk: The Fund may be
particularly susceptible to economic, political or regulatory events
affecting particular countries or regions to the extent the Fund focuses
its investments in such countries or
regions; |
|
• |
|
Issuer Risk: The value of a security or
instrument may decline for reasons directly related to the issuer, such as
management performance, financial leverage and reduced demand for the
issuer’s goods or services; |
|
• |
|
Credit Risk: The Fund could lose money if
the issuer or counterparty is unable or unwilling to meet its financial
obligations, and the lack of ability, or perceived lack of ability, of the
issuer to make timely payments of interest and/or principal will
negatively affect the value of the security or
instrument; |
|
• |
|
Limited Operating History Risk: The Fund
has a limited operating history for investors to evaluate and may not
achieve desired asset levels to maximize investment and operational
efficiencies; |
|
• |
|
Counterparty and Third Party Risk:
Transactions involving a counterparty to a derivative contract,
repurchase agreement, reverse repurchase agreement, or other financial
instrument, or to a third party responsible for servicing the instrument,
are subject to the credit risk of the counterparty or third party, and to
the counterparty’s or third party’s ability to perform in accordance with
the terms of the transaction; |
|
• |
|
Currency Management Strategies Risk:
Currency management strategies, including the use of forward
currency contracts and other derivatives, may substantially change the
Fund’s exposure to currencies and currency exchange rates and could result
in losses to the Fund if currencies do not perform as the Investment
Manager anticipates; |
|
• |
|
Currency Risk: Foreign (non-U.S.)
currencies may decline in value relative to the U.S. dollar and adversely
affect the value of the Fund’s investments in foreign currencies,
securities denominated in foreign currencies or derivatives that provide
exposure to foreign currencies; |
|
• |
|
Derivatives Risk: Investing in derivative
instruments may be considered risky and involves correlation,
documentation, interest rate, leverage, liquidity, market, management,
interest rate and valuation risks and the risk of losing more than the
principal amount invested; |
|
• |
|
Equity Securities Risk: Equity securities
may react more strongly to changes in an issuer’s financial condition or
prospects than other securities of the same
issuer; |
|
• |
|
High Yield Risk: Below investment grade
securities and unrated securities of similar credit quality (commonly
known as “high yield” securities or “junk bonds”) are subject to greater
levels of credit and liquidity risks than higher quality securities, and
are considered predominantly speculative with respect to the issuer’s
continuing ability to make principal and interest
payments; |
|
• |
|
Inflation/Deflation Risk: The value of
the Fund’s investments may decline as inflation reduces the value of
money; conversely, if deflation reduces prices throughout the economy
there may be an adverse effect on the creditworthiness of issuers in whose
securities the Fund invests and an increase in the likelihood of issuer
defaults; |
|
• |
|
Interest Rate Risk: Debt and other
securities and instruments may decline in value due to changes in interest
rates, the extended duration of principal payments at below-market
interest rates, and/or prepayment. The value of most fixed income
securities will generally decline in response to increases in interest
rates; |
|
• |
|
Investments in Pooled Vehicles Risk:
Investing in another investment company or pooled vehicle subjects
the Fund to that company’s risks, and, in general, to a pro rata portion
of that company’s fees and expenses in addition to fees and expenses
charged by the Fund; |
|
• |
|
Large Shareholder Risk: Shareholders of
the Fund, such as institutional investors, may disrupt the efficient
management of the Fund’s operations by purchasing or redeeming Fund shares
in large amounts; |
|
• |
|
Leverage Risk: Use of leverage, including
through borrowings, derivatives and reverse repurchase agreements, will
increase volatility of the Fund’s investment portfolio and magnify the
Fund’s investment losses or
gains; |
|
• |
|
Liquidity Risk: Illiquid securities and
other instruments may be highly volatile, difficult to value, and
difficult to sell or close out at favorable prices or
times; |
76
|
• |
|
Management Risk: The Fund’s investment
return depends on the ability of the Investment Manager to manage the
Fund’s portfolio successfully; there is a risk that the Investment Manager
may be incorrect in its analysis of economic trends, currencies,
countries, industries, companies, and the relative attractiveness of asset
classes or other matters; |
|
• |
|
Market Risk: The value of securities and
instruments owned by the Fund may rise and fall, sometimes rapidly or
unpredictably, due to factors affecting securities markets generally or
particular industries or geographic areas, including terrorism, war,
natural disasters and the spread of infectious disease including epidemics
or pandemics; |
|
• |
|
Over-the-Counter Risk: Securities and
derivatives traded in over-the-counter markets may trade less frequently
and in limited volumes and thus exhibit more volatility and liquidity
risk, and the prices paid by the Fund in over-the-counter transactions may
include an undisclosed dealer
markup; |
|
• |
|
Portfolio Turnover Risk: If the Fund
frequently trades its securities, this will increase transaction costs,
may result in taxable capital gains, and may reduce the Fund’s investment
performance; |
|
• |
|
Small and Mid-Sized Companies Risk:
Investments in securities issued by small and mid-sized companies
tend to be more vulnerable to adverse developments than larger companies,
and may present increased volatility and liquidity risk;
and |
|
• |
|
Valuation Risk: Certain securities and
instruments may be difficult to value, and to the extent the Fund sells a
security or instrument at a price lower than that used to value the
security, its net asset value will be adversely
affected. |
An
investment in the Fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency.
Performance
Information
Prior
to August 1, 2023, Ashmore Emerging Markets Debt Fund was known as Ashmore
Emerging Markets Investment Grade Income Fund and the strategy of the Fund
differed from its current strategy. Accordingly, performance of the Fund for
periods prior to August 1, 2023 may not be representative of the performance the
Fund would have achieved had the Fund been following its current
strategy.
The bar chart and performance table that follow
provide some indication of the risks of investing in the Fund by showing changes
in the Fund’s Institutional Class Shares’ performance from year to year and
comparing the Fund’s performance to a broad-based market index.
The bar chart and the information immediately below it show only the performance
of the Fund’s Institutional Class Shares. Although Class A and
Class C Shares would have similar annual returns (because all the Fund’s
shares represent interests in the same portfolio of securities), Class A
and Class C performance would be lower than Institutional
Class performance because of the lower expenses paid by Institutional
Class Shares of the Fund. The bar
chart does not reflect any sales loads applicable to Class A or
Class C Shares. The performance shown in the bar chart
would be lower if it reflected sales charges applicable to Class A and
Class C Shares. Performance for Class A and Class C
shares in the Average Annual Total Returns table reflects the impact of sales
charges. You may obtain the Fund’s updated performance
information by visiting the website at www.ashmoregroup.com or by calling
866-876-8294. As
with all mutual funds, the Fund’s past performance (before and after taxes) does
not predict how the Fund will perform in the
future.
Calendar
Year Total Return—Institutional Class
Ashmore
Emerging Markets Debt Fund % Total Return
77
The
best calendar
quarter return during the period shown above was 11.28% in the fourth quarter of 2023; the
worst was
(9.68)% in the first quarter of
2022.
Average
Annual Total Return
(For the period ended
December 31, 2023)
|
|
|
|
|
|
|
|
|
| |
|
|
1-Year |
|
Since Inception Date of 09/17/20 |
Institutional
Class |
|
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
9.03% |
| |
|
|
-1.50% |
|
Return
after taxes on distributions |
|
|
|
6.88% |
| |
|
|
-3.19% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
|
5.27% |
| |
|
|
-1.84% |
|
JP
Morgan EMBI GD (reflects no deduction for fees, expenses, or taxes)(1) |
|
|
|
11.09% |
| |
|
|
-2.18% |
|
JP
Morgan CEMBI BD Investment Grade (reflects no deduction for fees,
expenses, or taxes) |
|
|
|
7.57% |
| |
|
|
-1.72% |
|
Class A |
|
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
4.46% |
| |
|
|
-2.94% |
|
JP
Morgan EMBI BD Grade (reflects no deduction for fees, expenses, or
taxes)(1) |
|
|
|
11.09% |
| |
|
|
-2.18% |
|
JP
Morgan CEMBI BD Investment Grade (reflects no deduction for fees,
expenses, or taxes) |
|
|
|
7.57% |
| |
|
|
-1.72% |
|
Class C |
|
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
7.05% |
| |
|
|
-2.42% |
|
JP
Morgan EMBI BD Grade (reflects no deduction for fees, expenses, or
taxes)(1) |
|
|
|
11.09% |
| |
|
|
-2.18% |
|
JP
Morgan CEMBI BD Investment Grade (reflects no deduction for fees,
expenses, or taxes) |
|
|
|
7.57% |
| |
|
|
-1.72% |
|
(1) |
Effective August 1, 2023, the JP Morgan
Emerging Markets Bond Index Global Diversified replaced the JP Morgan
CEMBI BD Investment Grade Index as the Fund’s primary benchmark because
the JP Morgan Emerging Markets Bond Index Global Diversified is a more
appropriate broad-based securities market index representing the universe
of securities in which the Fund may
invest. |
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown, and after-tax returns shown are
not relevant to investors who hold their Fund shares through tax-advantaged
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Institutional
Class Shares only and will vary for Class A and Class C
Shares.
Management
of the Fund
Investment Manager
Ashmore
Investment Advisors Limited (“the Investment Manager”)
Investment Team
Mark
Coombs, Chief Executive Officer and Chairman of the Investment Committee;
Ricardo Xavier, Deputy Chairman of the Investment Committee; Herbert Saller,
Senior Portfolio Manager and Member of the Investment Committee; Robin Forrest,
Senior Portfolio Manager and Member of the Investment Committee; Cemil Urganci,
Senior Portfolio Manager and Member of the Investment Committee; and Fernando
Assad, Senior Portfolio Manager and Member of the Investment Committee, are
primarily responsible for the day-to-day management of the Fund.
Mr. Forrest has participated in the management of the Fund since 2012;
Mr. Assad has participated in the management of the Fund since 2016; and
Mr. Urganci has participated in the management of the Fund since May 2023.
Each of the other members of the Investment Team has participated in the
management of the Fund since its inception in 2010.
Purchase
and Sale of Fund Shares
The
minimum initial investment for Class A and Class C Shares is $1,000
and the minimum subsequent investment is $50. The minimum initial investment for
Institutional Class Shares is $1,000,000 and the minimum subsequent
investment is
78
$5,000.
These minimums may be waived or modified by the Fund or the Distributor,
including for certain financial intermediaries. Investors investing in the Fund
through an intermediary should consult “Appendix A—Intermediary-Specific Sales
Waivers”, which includes information regarding broker-defined sales charges and
related discount policies that apply to purchases through certain
intermediaries. You may sell (redeem) shares on any day the New York Stock
Exchange is open through your broker-dealer or other financial intermediary (if
applicable), or if you hold an account directly with the Fund by calling
866-876-8294 or by sending a letter of instruction to Ashmore Funds c/o Northern
Trust Company, PO Box 4766, Chicago, IL 60680-4766. If your shares are held in
the name of a financial intermediary, those shares may only be sold through that
financial intermediary.
Tax
Information
The
Fund normally distributes net investment income and net realized capital gains
to shareholders. These distributions are generally taxable to you as ordinary
income or capital gains, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan or an individual retirement account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund, the Distributor, the Investment Manager
or their affiliates may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
79
Ashmore
Emerging Markets Corporate Income ESG Fund
Investment
Objective
The
Fund seeks to maximize total return.
Fees
and Expenses of the Fund
The
tables below describe the fees and expenses that you may pay if you buy, hold,
and sell Class A, Class C or Institutional Class Shares of the
Fund. You may pay other fees, such as brokerage commissions and other fees to
financial intermediaries, which are not reflected in the tables and examples
below. You may
qualify for sales charge discounts on a purchase of Class A Shares if you
and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of
the Funds. More information about these and other discounts is
available in the “Classes of Shares” section beginning on page 138 of the
Fund’s prospectus or from your financial intermediary. Investors investing in
the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shareholder
Fees |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(fees paid directly from
your investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
|
|
|
4.00% |
|
|
|
|
None |
| |
|
|
None |
|
Maximum
Deferred Sales Charge (CDSC) (Load)(1) (as a percentage
of the lower of original purchase price or NAV) |
|
|
|
1.00% |
|
|
|
|
1.00% |
|
|
|
|
None |
|
Redemption
Fee |
|
|
|
None |
| |
|
|
None |
| |
|
|
None |
|
|
|
| |
|
Annual
Fund Operating Expenses |
|
|
|
|
| |
|
|
|
| |
|
|
| |
(Expenses that you pay
each year as a percentage of the value of your
investment) |
|
|
|
|
| |
|
|
|
| |
|
|
| |
|
|
Class A Shares |
|
Class C Shares |
|
Institutional Class Shares |
Management
Fees |
|
|
|
0.85% |
| |
|
|
0.85% |
| |
|
|
0.85% |
|
Distribution
and/or Service (12b-1) Fees |
|
|
|
0.25% |
| |
|
|
1.00% |
| |
|
|
None |
|
Other
Expenses(2) |
|
|
|
1.03% |
| |
|
|
1.33% |
| |
|
|
1.22% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
2.13% |
| |
|
|
3.18% |
| |
|
|
2.07% |
|
Fee
Waiver and/or Expense Reimbursement(3) |
|
|
|
(1.01)% |
| |
|
|
(1.31)% |
| |
|
|
(1.20)% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
|
1.12% |
| |
|
|
1.87% |
| |
|
|
0.87% |
|
(1) |
For Class A Shares, the CDSC is imposed only where
shares are purchased without a front-end sales charge and subsequently
redeemed within eighteen months of purchase. For Class C Shares, the
CDSC is imposed only on shares redeemed within one year of
purchase. |
(2) |
Other Expenses are based on estimated
amounts for the Fund’s initial fiscal
year. |
(3) |
Ashmore
Investment Advisors Limited has contractually agreed to waive its fees or
reimburse the Fund for other expenses to the extent that Total Annual Fund
Operating Expenses (other than Acquired Fund Fees and Expenses, interest
expense, taxes, extraordinary expenses, custodial credits, transfer agency
credits, and expense offset arrangements) for the Fund’s Class A
Shares exceed 1.12%, for the Fund’s Class C Shares exceed 1.87% and
for the Fund’s Institutional Class Shares exceed 0.87% of the Fund’s
average daily net assets attributable to the share class. The expense
limitation arrangement may be terminated before February 28, 2025 only
by the Board of Trustees. Under the Expense Limitation Agreement, the
Investment Manager may recoup any amounts waived or reimbursed for 36
months following the end of the month when the waiver or reimbursement
occurred, provided total expenses, including such recoupment, do not
exceed the applicable annual expense limit, and further that a prior
fiscal year’s expenses may be recouped only if and to the extent that the
expense ratio at the time of such recoupment is less than the annual
expense limit in place at the time such expenses were waived or
reimbursed. |
80
Examples
These
Examples are intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Examples assume that you invest
$10,000 in the noted class of shares of the Fund for the time periods indicated,
your investment has a 5% return each year and the Fund’s operating expenses
remain the same. Class C Shares automatically convert to Class A
Shares after eight years. The expense example for Class C Shares for the
ten-year period reflects the conversion to Class A Shares. The Examples are
based, for the first year, on Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement and, for all other periods, on Total Annual
Fund Operating Expenses. Although your actual costs may be higher or lower, the
Examples show what your costs would be based on these
assumptions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Example: Assuming you redeem your
shares at the end of each
period |
|
Example: Assuming you do not redeem your
shares |
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Class A
Shares |
|
|
$ |
510 |
| |
|
$ |
947 |
| |
|
$ |
1,409 |
| |
|
$ |
2,687 |
| |
|
$ |
510 |
| |
|
$ |
947 |
| |
|
$ |
1,409 |
| |
|
$ |
2,687 |
|
Class C
Shares |
|
|
$ |
290 |
| |
|
$ |
858 |
| |
|
$ |
1,550 |
| |
|
$ |
3,150 |
| |
|
$ |
190 |
| |
|
$ |
858 |
| |
|
$ |
1,550 |
| |
|
$ |
3,150 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
1 year |
|
3 years |
|
5 years |
|
10 years |
Institutional
Class Shares (whether or not shares are redeemed) |
|
|
|
$ |
89 |
| |
|
$ |
533 |
| |
|
$ |
1,003 |
| |
|
$ |
2,304 |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, adversely affect the
Fund’s investment performance. During the most recent fiscal period, the Fund’s
portfolio turnover rate was 32% of the average value of its
portfolio.
Principal
Investment Strategies
The
Fund seeks to achieve its objective by investing principally in debt instruments
of Corporate issuers (as defined below), which may be denominated principally in
Hard Currencies (i.e., the U.S. dollar or any currency of a nation in the G-7),
focusing on issuers that the Investment Manager believes satisfy the ESG
Criteria (as described below). A Corporate
issuer is an issuer located in an Emerging Market Country or an issuer deriving
at least 50% of its revenues or profits from goods produced or sold, investments
made, or services performed in one or more Emerging Market Countries or that has
at least 50% of its assets in one or more Emerging Market Countries. For these
purposes, Corporate issuers do not include Sovereigns or governmental agency
issuers, but may include corporate or other business entities in which a
Sovereign or governmental agency or entity may have, indirectly or directly, an
interest, including a majority or greater ownership interest (e.g., CITIC, Qatar
Telecom). Emerging Market Country means any country included by the
International Monetary Fund in its list of Emerging and Developing Economies,
any country which is considered a low-income, lower-middle-income, or
upper-middle-income economy by the World Bank, and any country that is included
in an Emerging Market Index.
The
Investment Manager incorporates environmental, social and corporate governance
risk considerations into issuer analysis and uses its ESG Scoring Process (as
defined below) to help identify what it believes to be high quality companies
with strong performance or potential when measured against the ESG Criteria. The
Investment Manager looks at the relevant issuer’s sustainability by assessing
the strength and enduring nature of an issuer’s competitive advantages, which
are supported by long term planning and investment. Issuers that score poorly
during the ESG Scoring Process are excluded from the list of potential
investments.
The
Investment Manager defines and assesses ESG Criteria on the basis of an issuer’s
performance against the following metrics:
|
• |
|
Environment: Global and local impact,
greenhouse gas emissions, water and waste management, incidents of
environmental pollution, energy management and use of green energy,
policies and innovations to limit negative
impact. |
|
• |
|
Social: Employee diversity and inclusion,
customer welfare, human rights, community relations, labour practices,
health and safety, supply chain management, materiality of philanthropy
spend, product quality and
safety. |
81
|
• |
|
Governance: Governance structure,
transparency and disclosure, representation of minority interests, public
listing and reporting, management accessibility, key performance
indicators used to design long-term incentive schemes, policies and
strategies to mitigate the impact of ESG
risks. |
ESG
Scoring Process means the scoring process of the Investment Manager whereby the
Investment Manager issues a score to each issuer, based on their historical and
current performance, taking into account the environmental, social or governance
risks that an issuer may present and the performance of each issuer against ESG
Criteria. Individual ESG criteria will generally be given equal weight. The
process relies on information drawn from a range of data sources, including data
from third party service providers, which is subject to
change.
The
Fund seeks to avoid investing in issuers that the Adviser determines have
significant involvement (i.e., more than 10% of revenues) in the manufacture,
distribution or sale of fossil fuels or tobacco products and in gambling,
pornography or defense (including controversial weapons) industries, or other
issuers that engage in business practices that the Adviser determines to be
sub-standard from an ESG or sustainability perspective in relation to their
industry or sector.
The
Fund may invest in debt instruments of all types issued by Corporate issuers,
whether subordinated or unsubordinated, secured or unsecured, quoted or
unquoted, rated or unrated, or floating rate or fixed rate. These may include,
without limitation, bonds, debentures, notes, convertible securities, commercial
paper, loans and related assignments and participations, trade claims, bank
certificates of deposit, fixed time deposits, bankers’ acceptances, and money
market instruments, including money market funds denominated in U.S. dollars or
other currencies. The Fund may invest in companies of any market capitalization,
and its allocations among small-, mid- and large-capitalization issuers may vary
significantly over time.
The
Fund normally seeks to maintain a weighted average portfolio duration of between
2 and 10 years.
Although
the Fund may gain most of its investment exposure to Corporate issuers directly,
the Fund may utilize various derivative instruments and related strategies,
including exclusively, to gain exposure to one or more Corporate issuers or
other assets. The Fund may utilize derivatives of all types and may invest in,
without limitation, call and put options (including options on futures
contracts), futures and forward contracts (including contracts related to
currencies), and swap agreements (including total return, interest rate and
credit default swaps) and other related instruments with respect to individual
bonds and other securities, indices and baskets of securities, interest rates
and currencies, and credit-linked notes as part of its principal investment
strategies. The Fund expects to primarily use derivatives for hedging or
efficient portfolio management purposes, but may also use them to increase the
Fund’s investment exposure beyond that which it could achieve by investing
directly in more conventional securities. The Fund may also invest directly in
foreign currencies for hedging or other investment
purposes.
The
Fund may invest in convertible debt instruments and equity securities related to
convertible securities or warrants the Fund holds or has held, as well as
acquire and hold equity securities, including warrants. The Fund may invest in
the securities of other investment companies, including exchange-traded funds
(“ETFs”) and other pooled vehicles, if the investment companies invest
principally in the types of investments in which the Fund may invest directly.
The Fund may also lend its portfolio securities, borrow money for investment and
other purposes, and enter into repurchase and reverse repurchase agreement
transactions.
The
Fund will not invest more than 25% of its net assets in any one Emerging Market
Country. In addition, the Fund will not invest more than 20% of its net assets
in investments denominated in currencies other than the U.S.
dollar.
The
Fund may invest in obligations of any credit quality, including obligations that
are in default or that are subject to insolvency proceedings. The Fund may
invest without limitation in debt securities that are of below investment grade
or that are unrated but judged by the Investment Manager to be of comparable
quality (“junk bonds”).
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in bonds and other debt instruments of
Corporate issuers (as defined above) that the Investment Manager believes
satisfy the ESG Criteria (as described above). The Fund’s investments in
derivatives and other synthetic instruments that have economic characteristics
similar to these investments will be counted toward satisfaction of the Fund’s
80% investment policy.
In
managing the Fund, the Investment Manager’s fixed income and asset allocation
investment committee (the “Investment Committee”), together with the relevant
portfolio managers (together with the Investment Committee, the “Investment
Team”), employs a largely top-down, active and value-driven investment approach
in analyzing emerging markets and
82
currencies.
The Fund’s investment approach includes an emphasis on the influence of politics
(both local and international). The Investment Team combines its top-down
approach with an analytically driven, bottom-up approach to making purchase and
sale decisions with respect to individual corporate credits. The Investment Team
seeks opportunities in selected emerging markets that it believes may benefit
from significant positive changes, such as political and economic reforms,
increases in capital inflows and investor confidence, and seeks to invest in
issuers in Corporate sectors it expects will benefit from such developments and
associated economic development and growth. The Investment Team’s investment
process focuses on global and emerging markets fundamentals and considers
factors such as liquidity and risk management at the macro level. The Investment
Team utilizes the Investment Manager’s broad and current knowledge of important
investment areas in various Emerging Market Countries gained, in part, through
research, experience, long-standing relationships with reliable local firms and,
where appropriate, visits by its investment personnel to countries in their
respective regions of responsibility.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the bid/asked spread on purchases and sales of
securities, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may
result in higher taxes for you if your Fund shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Examples, may adversely affect the Fund’s investment
performance.
Principal
Risks
It is possible
to lose money on an investment in the Fund. The Fund will
be affected by the investment decisions, techniques and risk analyses of the
Fund’s Investment Manager and there is no guarantee that the Fund will achieve
its investment objective. The principal risks of investing in the Fund, which
could adversely affect its net asset value, yield and total return are (in
alphabetical order after the first nine risks):
|
• |
|
Emerging Markets Risk: Compared to
foreign developed markets, investing in emerging markets may involve
heightened volatility, greater political, regulatory, legal and economic
uncertainties, less liquidity, dependence on particular commodities or
international aid, high levels of inflation, greater custody risk, and
certain special risks associated with smaller
companies; |
|
• |
|
ESG Criteria Risk: The ESG Criteria
applied by the Fund may cause the Fund to perform differently—positively
or negatively—when compared to funds that do not take into account similar
characteristics. The application of the ESG Criteria may cause the Fund to
sell or avoid stocks that subsequently perform well. There is a risk that
the issuers identified by the ESG Criteria may not operate sustainably or
within such criteria as expected. Furthermore, different interpretations
of what it means for an issuer to be sustainable or to have positive ESG
metrics may be applied by market
participants; |
|
• |
|
Foreign Investment Risk: Investments in
foreign (non-U.S.) issuers, directly or through use of depositary
receipts, may be negatively affected by adverse political, regulatory,
economic, market or other developments affecting issuers located in
foreign countries, currency exchange rates or regulations, or foreign
withholding or other taxes, and investing in foreign securities may result
in the Fund experiencing more rapid and extreme changes in value than a
fund that invests exclusively in securities of U.S.
issuers; |
|
• |
|
Bank Loans Risk: The Fund may invest in
bank loans and participations. Risks associated with these obligations
include, but are not limited to, risks involving the enforceability of
security interests and loan transactions, inadequate collateral,
liabilities relating to collateral securing obligations, and the liquidity
of these loans. The market for bank loans may be subject to irregular
trading activity, wide bid/ask spreads and extended trade settlement
periods. The loans in which the Fund invests may be rated below investment
grade; |
|
• |
|
High Yield Risk: Below investment grade
securities and unrated securities of similar credit quality (commonly
known as “high yield” securities or “junk bonds”) are subject to greater
levels of credit and liquidity risks than higher quality securities, and
are considered predominantly speculative with respect to the issuer’s
continuing ability to make principal and interest
payments; |
83
|
• |
|
Geographic Focus Risk: The Fund may be
particularly susceptible to economic, political or regulatory events
affecting particular countries or regions to the extent the Fund focuses
its investments in such countries or
regions; |
|
• |
|
Issuer Risk: The value of a security or
instrument may decline for reasons directly related to the issuer, such as
management performance, financial leverage and reduced demand for the
issuer’s goods or services; |
|
• |
|
Credit Risk: The Fund could lose money if
the issuer or counterparty is unable or unwilling to meet its financial
obligations, and the lack of ability, or perceived lack of ability, of the
issuer to make timely payments of interest and/or principal will
negatively affect the value of the security or
instrument; |
|
• |
|
Limited Operating History Risk: The Fund
has a limited operating history for investors to evaluate and may not
achieve desired asset levels to maximize investment and operational
efficiencies; |
|
• |
|
Convertible Securities Risk: Securities
that are convertible into preferred or common stocks are subject to the
risks of both debt and equity securities and the risk of changing in value
at a different rate than the underlying stocks. Convertible securities are
subject to greater levels of credit and liquidity risk, may be speculative
and may decline in value due to changes in interest rates or an issuer’s
or counterparty’s deterioration or
default; |
|
• |
|
Counterparty and Third Party Risk:
Transactions involving a counterparty to a derivative contract,
repurchase agreement, reverse repurchase agreement, or other financial
instrument, or to a third party responsible for servicing the instrument,
are subject to the credit risk of the counterparty or third party, and to
the counterparty’s or third party’s ability to perform in accordance with
the terms of the transaction; |
|
• |
|
Currency Management Strategies Risk:
Currency management strategies, including the use of forward
currency contracts and other derivatives, may substantially change the
Fund’s exposure to currencies and currency exchange rates and could result
in losses to the Fund if currencies do not perform as the Investment
Manager anticipates; |
|
• |
|
Currency Risk: Foreign (non-U.S.)
currencies may decline in value relative to the U.S. dollar and adversely
affect the value of the Fund’s investments in foreign currencies,
securities denominated in foreign currencies or derivatives that provide
exposure to foreign currencies; |
|
• |
|
Derivatives Risk: Investing in derivative
instruments may be considered risky and involves correlation,
documentation, interest rate, leverage, liquidity, market, management,
interest rate and valuation risks and the risk of losing more than the
principal amount invested; |
|
• |
|
Focused Investment Risk: Focusing a
fund’s investments in a limited number of issuers, sectors or industries
increases risk and the volatility of the value of a fund’s shares. The
Fund may be particularly susceptible to economic, political, regulatory or
other events affecting the issuers, sectors or industries to the extent it
focuses its investments; |
|
• |
|
Inflation/Deflation Risk: The value of
the Fund’s investments may decline as inflation reduces the value of
money; conversely, if deflation reduces prices throughout the economy
there may be an adverse effect on the creditworthiness of issuers in whose
securities the Fund invests and an increase in the likelihood of issuer
defaults; |
|
• |
|
Interest Rate Risk: Debt and other
securities and instruments may decline in value due to changes in interest
rates, the extended duration of principal payments at below-market
interest rates, and/or prepayment. The value of most fixed income
securities will generally decline in response to increases in interest
rates; |
|
• |
|
Large Shareholder Risk: Shareholders of
the Fund, such as institutional investors, may disrupt the efficient
management of the Fund’s operations by purchasing or redeeming Fund shares
in large amounts; |
|
• |
|
Leverage Risk: Use of leverage, including
through borrowings, derivatives and reverse repurchase agreements, will
increase volatility of the Fund’s investment portfolio and magnify the
Fund’s investment losses or
gains; |
|
• |
|
Liquidity Risk: Illiquid securities and
other instruments may be highly volatile, difficult to value, and
difficult to sell or close out at favorable prices or
times; |
|
• |
|
Management Risk: The Fund’s investment
return depends on the ability of the Investment Manager to manage the
Fund’s portfolio successfully; there is a risk that the Investment Manager
may be incorrect in its analysis of economic trends, currencies,
countries, industries, companies, and the relative attractiveness of asset
classes or other matters; |
|
• |
|
Market Risk: The value of securities and
instruments owned by the Fund may rise and fall, sometimes rapidly or
unpredictably, due to factors affecting securities markets generally or
particular industries or geographic areas, including terrorism, war,
natural disasters and the spread of infectious disease including epidemics
or pandemics; |
84
|
• |
|
Over-the-Counter Risk: Securities and
derivatives traded in over-the-counter markets may trade less frequently
and in limited volumes and thus exhibit more volatility and liquidity
risk, and the prices paid by the Fund in over-the-counter transactions may
include an undisclosed dealer
markup; |
|
• |
|
Portfolio Turnover Risk: If the Fund
frequently trades its securities, this will increase transaction costs,
may result in taxable capital gains, and may reduce the Fund’s investment
performance; |
|
• |
|
Small and Mid-Sized Companies Risk:
Investments in securities issued by small and mid-sized companies
tend to be more vulnerable to adverse developments than larger companies,
and may present increased volatility and liquidity risk;
and |
|
• |
|
Valuation Risk: Certain securities and
instruments may be difficult to value, and to the extent the Fund sells a
security or instrument at a price lower than that used to value the
security, its net asset value will be adversely
affected. |
An
investment in the Fund is not a bank deposit and is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government
agency.
Performance
Information
The bar chart and performance table that follow
provide some indication of the risks of investing in the Fund by showing changes
in the Fund’s Institutional Class Shares’ performance from year to year and
comparing the Fund’s performance to a broad-based market index.
The bar chart and the information immediately below it show only the performance
of the Fund’s Institutional Class Shares. Although Class A and
Class C Shares would have similar annual returns (because all the Fund’s
shares represent interests in the same portfolio of securities), Class A
and Class C performance would be lower than Institutional
Class performance because of the lower expenses paid by Institutional
Class Shares of the Fund. The bar
chart does not reflect any sales loads applicable to Class A or
Class C Shares. The performance shown in the bar chart
would be lower if it reflected sales charges applicable to Class A and
Class C Shares. You may obtain the Fund’s updated performance information
by visiting the website at www.ashmoregroup.com or by calling
866-876-8294. As
with all mutual funds, the Fund’s past performance (before and after taxes) does
not predict how the Fund will perform in the
future.
Calendar
Year Total Return—Institutional Class
Ashmore
Emerging Markets Corporate Income ESG Fund % Total
Return
The
best calendar
quarter return during the period shown above was 5.57% in the fourth quarter of 2022; the
worst was
(13.62)% in the first quarter of
2022.
85
Average
Annual Total Return
(For the period ended
December 31, 2023)
|
|
|
|
|
|
|
|
|
| |
|
|
1-Year |
|
Since Inception Date of 02/26/21 |
Institutional
Class |
|
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
3.25% |
| |
|
|
-9.29% |
|
Return
after taxes on distributions |
|
|
|
1.09% |
| |
|
|
-11.32% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
|
1.87% |
| |
|
|
-7.68% |
|
JP
Morgan CEMBI BD Investment Grade (reflects no deduction for fees,
expenses, or taxes) |
|
|
|
9.08% |
| |
|
|
-1.16% |
|
Class A |
|
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
-0.88% |
| |
|
|
-10.76% |
|
JP
Morgan CEMBI BD Investment Grade (reflects no deduction for fees,
expenses, or taxes) |
|
|
|
9.08% |
| |
|
|
-1.16% |
|
Class C |
|
|
|
|
| |
|
|
| |
Return
before taxes |
|
|
|
1.30% |
| |
|
|
-10.17% |
|
JP
Morgan CEMBI BD Investment Grade (reflects no deduction for fees,
expenses, or taxes) |
|
|
|
9.08% |
| |
|
|
-1.16% |
|
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s
tax situation and may differ from those shown, and after-tax returns shown are
not relevant to investors who hold their Fund shares through tax-advantaged
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Institutional
Class Shares only and will vary for Class A and Class C
Shares.
Management
of the Fund
Investment Manager
Ashmore
Investment Advisors Limited (“the Investment Manager”)
Investment Team
Mark
Coombs, Chief Executive Officer and Chairman of the Investment Committee;
Ricardo Xavier, Deputy Chairman of the Investment Committee; Herbert Saller,
Senior Portfolio Manager and Member of the Investment Committee; Robin Forrest,
Senior Portfolio Manager and Member of the Investment Committee; Cemil Urganci,
Senior Portfolio Manager and Member of the Investment Committee; and Fernando
Assad, Senior Portfolio Manager and Member of the Investment Committee, are
primarily responsible for the day-to-day management of the Fund.
Mr. Forrest has participated in the management of the Fund since 2012;
Mr. Assad has participated in the management of the Fund since 2016; and
Mr. Urganci has participated in the management of the Fund since May 2023.
Each of the other members of the Investment Team has participated in the
management of the Fund since its inception in 2010.
Purchase
and Sale of Fund Shares
The
minimum initial investment for Class A and Class C Shares is $1,000
and the minimum subsequent investment is $50. The minimum initial investment for
Institutional Class Shares is $1,000,000 and the minimum subsequent
investment is $5,000. These minimums may be waived or modified by the Fund or
the Distributor, including for certain financial intermediaries. Investors
investing in the Fund through an intermediary should consult “Appendix
A—Intermediary-Specific Sales Waivers”, which includes information regarding
broker-defined sales charges and related discount policies that apply to
purchases through certain intermediaries. You may sell (redeem) shares on any
day the New York Stock Exchange is open through your broker-dealer or other
financial intermediary (if applicable), or if you hold an account directly with
the Fund by calling 866-876-8294 or by sending a letter of instruction to
Ashmore Funds c/o Northern Trust Company, PO Box 4766, Chicago, IL 60680-4766.
If your shares are held in the name of a financial intermediary, those shares
may only be sold through that financial intermediary.
Tax
Information
The
Fund normally distributes net investment income and net realized capital gains
to shareholders. These distributions are generally taxable to you as ordinary
income or capital gains, unless you are investing through a tax-advantaged
arrangement, such as a 401(k) plan or an individual retirement account.
86
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund, the Distributor, the Investment Manager
or their affiliates may pay the intermediary for the sale of Fund shares and
related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your salesperson to
recommend the Fund over another investment. Ask your salesperson or visit your
financial intermediary’s website for more information.
87
PRINCIPAL
INVESTMENTS AND STRATEGIES OF EACH FUND
This
section, together with the next section entitled “Summary of Principal Risks,”
provides more detailed information regarding Ashmore Emerging Markets Total
Return Fund, Ashmore Emerging Markets Local Currency Bond Fund, Ashmore Emerging
Markets Corporate Income Fund, Ashmore Emerging Markets Short Duration Fund,
Ashmore Emerging Markets Active Equity Fund, Ashmore Emerging Markets Small-Cap
Equity Fund, Ashmore Emerging Markets Frontier Equity Fund, Ashmore Emerging
Markets Equity Fund, Ashmore Emerging Markets Equity ESG Fund, Ashmore Emerging
Markets Low Duration Fund, Ashmore Emerging Markets Debt Fund and Ashmore
Emerging Markets Corporate Income ESG Fund (collectively, the “Funds”),
including each Fund’s investment objective, principal investments and strategies
and principal risks.
Descriptions
of different Funds should be read independently of one another. How or whether a
particular Fund utilizes an investment strategy, technique or instrument should
not be inferred from how or whether other Funds are described as utilizing the
same investment strategy, technique or instrument in their descriptions.
Pending
investment in securities and other investments that meet each Fund’s investment
objective and policies, the proceeds of the offering of shares of the Funds,
including from large subscriptions, may be invested in high quality, short-term
securities, including liquidity and cash management funds, or may remain
un-invested temporarily, potentially limiting the Fund’s total return and its
ability to achieve its investment objective.
ASHMORE
EMERGING MARKETS TOTAL RETURN FUND
Investment
Objective
The
Fund seeks to maximize total return. The Fund’s investment objective may be
changed without a shareholder vote. The “total return” sought by the Fund
consists of income, gains and capital appreciation, if any.
Principal
Investment Strategies
The Fund seeks to achieve its objective by
investing principally in debt instruments of Sovereign, Quasi-Sovereign and
Corporate issuers (as defined below), which may be denominated in any currency,
including the local currency of the issuer. Sovereigns are governments of Emerging Market
Countries (as defined below). For these purposes, Sovereigns may include EM
Supra-Nationals. Quasi-Sovereigns are governmental entities, agencies and other
issuers that are more than 50% owned, directly or indirectly, by a Sovereign, or
whose obligations are guaranteed by a Sovereign. For these purposes,
governmental entities include a province, a city and local or regional
governmental bodies. A Corporate issuer is any issuer other than a Sovereign or
Quasi-Sovereign that is located in an Emerging Market Country, or an issuer
deriving at least 50% of its revenues or profits from goods produced or sold,
investments made, or services performed in one or more Emerging Market Countries
or that has at least 50% of its assets in one or more Emerging Market Countries.
Emerging Market Country means any country included by the International Monetary
Fund in its list of Emerging and Developing Economies, any country which is
considered a low-income, lower-middle-income, or upper-middle-income economy by
the World Bank, and all countries represented in any widely-recognized index of
emerging market securities (e.g., the relevant indices in the family of J.P.
Morgan Corporate Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets
Index, J.P. Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond
Index—Emerging Markets and MSCI Emerging and Frontier Markets Index).
The
Fund may invest in debt instruments of all types and denominated in any
currency, whether subordinated or unsubordinated, secured or unsecured, quoted
or unquoted, rated or unrated, or floating rate or fixed rate. These may
include, without limitation, bonds, debentures, notes, convertible securities,
commercial paper, loans and related assignments and participations, trade
claims, bank certificates of deposit, fixed time deposits, bankers’ acceptances,
and money market instruments, including money market funds denominated in U.S.
dollars or other currencies. The Fund may invest in companies of any market
capitalization, and its allocations among small-, mid- and large-capitalization
issuers may vary significantly over time.
The
Fund may invest in obligations of any credit quality, including obligations that
are in default or that are subject to insolvency proceedings. The Fund may
invest without limitation in debt securities that are rated below investment
grade or that are unrated but judged by the Investment Manager to be of
comparable quality (i.e., “junk bonds”).
The
Fund normally seeks to maintain a weighted average portfolio duration of between
2 and 10 years.
88
The
Fund may utilize various derivative instruments and related strategies,
including exclusively, to gain exposure to one or more issuers or other assets.
The Fund may utilize derivatives of all types and may invest in, without
limitation, call and put options (including options on futures contracts),
futures and forward contracts, including contracts related to currencies, and
swap agreements (including total return, interest rate, and credit default
swaps) and other related instruments with respect to individual bonds and other
securities, indices and baskets of securities, interest rates and currencies,
structured notes and credit-linked notes as part of its principal investment
strategies. The Fund expects to primarily use derivatives for hedging or
efficient portfolio management purposes, but may also use them to increase the
Fund’s investment exposure beyond that which it could achieve by investing
directly in more conventional securities. The Fund may also invest directly in
foreign currencies for hedging or other investment purposes.
The
Fund may invest in convertible debt instruments and equity securities related to
convertible securities or warrants the Fund holds or has held, as well as
acquire and hold equity securities, including warrants, resulting from debt
conversion or restructuring. The Fund may invest in the securities of other
investment companies, including exchange-traded funds (“ETFs”) and other pooled
vehicles, if the investment companies invest principally in the types of
investments in which the Fund may invest directly. The Fund may also lend its
portfolio securities, borrow money for investment and other purposes, and enter
into repurchase and reverse repurchase agreement transactions.
The
Fund will not invest more than 25% of its net assets in issuers in any one
Emerging Market Country. The Fund will not invest more than 35% of its net
assets in securities of Corporate issuers having their principal place of
business in Emerging Market Countries.
The
Fund will not invest more than 25% of its net assets in investments denominated
in a single currency other than the U.S. dollar or the Euro without seeking to
hedge into U.S. dollars the portion of the Fund’s exposure to that currency
(i.e., non-U.S. dollar, non-Euro) that
exceeds 25% of the Fund’s net assets.
The
Fund will normally invest 25% to 75% of its net assets in investments
denominated in or providing investment exposure to local currencies of Emerging
Market Countries. Any portion of the Fund’s investment exposure to local
currencies of Emerging Market Countries that has been hedged into a Hard
Currency will not count as currency of an Emerging Market Country for this
purpose.
In
managing the Fund, the Investment Team employs a largely top-down, active and
value-driven investment approach in analyzing emerging markets and currencies.
The Fund’s investment approach includes an emphasis on the influence of politics
(both local and international). The Investment Team combines this top-down
approach with an analytically-driven, bottom-up approach to making purchase and
sale decisions with respect to individual corporate credits. The Investment Team
seeks opportunities in selected emerging markets that it believes may benefit
from significant positive changes, such as political and economic reforms,
increases in capital inflows and investor confidence, and seeks to invest in
issuers in government and Corporate sectors it expects will benefit from such
developments and associated economic development and growth. The Investment
Team’s investment process focuses on global and emerging markets fundamentals
and considers factors such as liquidity and risk management at the macro level.
The Investment Team utilizes the Investment Manager’s broad and current
knowledge of important investment areas in various Emerging Market Countries
gained, in part, through research, experience, long-standing relationships with
reliable local firms and, where appropriate, visits by its investment personnel
to countries in their respective regions of responsibility.
In
response adverse market, economic, political or other conditions, the Fund may
deviate from its principal strategies by making temporary investments of some or
all of its assets in various instruments, including short-term, high-quality
fixed income securities denominated in any currency, cash, cash equivalents,
money market funds, and other similar funds. The Fund may not achieve its
investment objective when it does so. The Fund may also invest a portion of its
assets in such investments and instruments on a short term or temporary basis to
manage its cash positions or otherwise manage the Fund efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in securities and instruments issued by
Sovereign, Quasi-Sovereign or Corporate issuers of Emerging Market Countries and
Emerging Market currency-related derivative instruments. The Fund’s investments
in derivatives and other synthetic instruments that have economic
characteristics similar to the investments described above will be counted
toward satisfaction of the Fund’s 80% investment policy.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the bid/asked spread on purchases and sales of
securities,
89
when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes for you if your Fund shares are held in a taxable account. These costs,
which are not reflected in Annual Fund Operating Expenses or in the Examples,
may adversely affect the Fund’s investment performance.
Principal
Risks
The
Fund’s past performance (before and after taxes) does not predict how the Fund
will perform in the future. It is possible to
lose money on an investment in the Fund. Among the principal risks of
investing in the Fund, which could adversely affect its net asset value, yield
and total return, are (in alphabetical order after the first five risks) the
following:
|
• |
|
Foreign Investment Risk
|
|
• |
|
Counterparty and Third
Party Risk |
|
• |
|
Currency Management
Strategies Risk |
|
• |
|
Inflation/Deflation Risk
|
|
• |
|
Investments in Pooled
Vehicles Risk |
|
• |
|
Portfolio Turnover Risk
|
|
• |
|
Small and Mid-Sized
Companies Risk |
Please
see “SUMMARY OF PRINCIPAL RISKS” following this section for a description of
these and other risks of investing in the Fund.
90
ASHMORE
EMERGING MARKETS LOCAL CURRENCY BOND FUND
Investment
Objective
The
Fund seeks to maximize total return. The Fund’s investment objective may be
changed without a shareholder vote. The “total return” sought by the Fund
consists of income, gains and capital appreciation, if any.
Principal
Investment Strategies
The Fund seeks to achieve its objective by
investing principally in debt instruments of Sovereign and Quasi-Sovereign
issuers of Emerging Market Countries that are denominated in the local currency
of the issuer. Sovereigns are governments of
Emerging Market Countries (as defined below). For these purposes, Sovereigns may
include EM Supra-Nationals. Quasi-Sovereigns are governmental entities, agencies
and other issuers the obligations of which are guaranteed by an emerging market
government and issuers otherwise represented in the J.P. Morgan Government Bond
Index-Emerging Markets Global Diversified or a similar index as determined by
the Investment Manager. For these purposes, governmental entities include a
province, a city and local or regional governmental bodies. Emerging Market
Country means any country included by the International Monetary Fund in its
list of Emerging and Developing Economies, any country which is considered a
low-income, lower-middle-income, or upper-middle-income economy by the World
Bank, and all countries represented in any widely-recognized index of emerging
market securities (e.g., the relevant indices in the family of J.P. Morgan
Corporate Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets Index,
J.P. Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond
Index—Emerging Markets and MSCI Emerging and Frontier Markets Index).
The
Fund’s investments in debt instruments will generally be limited to those issued
by Sovereigns and Quasi-Sovereigns. The Fund may invest in debt instruments of
all types and denominated in any currency, whether subordinated or
unsubordinated, secured or unsecured, quoted or unquoted, rated or unrated, or
floating rate or fixed rate. These may include, without limitation, bonds,
debentures, notes, convertible securities, commercial paper, loans and related
assignments and participations, firm commitment, when-issued and
delayed-delivery securities, mortgage-backed and other types of asset-backed
securities issued on a public or private basis, bank certificates of deposit,
fixed time deposits, bankers’ acceptances, and money market instruments,
including money market funds denominated in U.S. dollars or other currencies.
The
Fund may invest in obligations of any credit quality, including obligations that
are in default or that are subject to insolvency proceedings. The Fund may
invest without limit in debt securities that are rated below investment grade or
that are unrated but judged by the Investment Manager to be of comparable
quality (i.e., “junk bonds”).
Ordinarily, at least 70% of the securities held by the Fund will be rated by at
least one internationally recognized rating agency or issued by a Sovereign or
Quasi-Sovereign issuer that itself is rated.
The
Fund normally seeks to maintain a weighted average portfolio duration of between
2 and 7 years.
The
Fund is “non-diversified,” which means that it may invest a relatively large
portion of its assets in a single issuer or a small number of issuers in
comparison to a fund that is “diversified.”
Although
the Fund may gain most of its investment exposure to bonds and other debt
instruments by investing directly in them, the Fund may utilize various
derivative instruments and related strategies, including exclusively, to gain
exposure to bonds and other debt instruments. The Fund may utilize derivatives
of all types and may invest in, without limitation, call and put options
(including options on futures contracts), futures and forward contracts,
including relating to currencies, and swap agreements (including total return,
interest rate and credit default swaps) and other related instruments with
respect to individual bonds and other securities, indices and baskets of
securities, interest rates and currencies, and credit-linked notes as part of
its principal investment strategies. The Fund expects to primarily use
derivatives for hedging or efficient portfolio management purposes, but may also
use them to increase the Fund’s investment exposure beyond that which it could
achieve by investing directly in more conventional securities. The Fund may also
invest directly in foreign currencies for hedging or other investment purposes.
The
Fund may invest in convertible debt instruments and equity securities related to
convertible securities or warrants the Fund holds or has held, as well as
acquire and hold equity securities, including warrants, resulting from debt
conversion or restructuring. The Fund may invest in the securities of other
investment companies, including exchange-traded funds (“ETFs”) and other pooled
vehicles, if the investment companies invest principally in the types of
investments in which the Fund may invest directly. The Fund may lend its
portfolio securities, borrow money for investment and other purposes, and enter
into repurchase and reverse repurchase agreement transactions.
91
The
Fund will not invest more than 25% of its net assets in any one Emerging Market
Country. In addition, the Fund will not invest more than 30% of its net assets
in investments denominated in a single non-U.S. currency without seeking to
hedge into U.S. dollars the portion of the Fund’s exposure to the non-U.S.
currency that exceeds 30% of the Fund’s net assets.
In
managing the Fund, the Investment Team employs a largely top-down, active and
value-driven investment approach in analyzing emerging markets and currencies.
The Fund’s investment approach includes an emphasis on the influence of politics
(both local and international), combined with an analytically-driven, bottom-up
approach to making purchase and sale decisions. The Investment Team seeks
opportunities in selected emerging markets that it believes may benefit from
significant positive changes, such as political and economic reforms, increases
in capital inflows and investor confidence, and seeks to invest in issuers it
expects will benefit from such developments and associated economic development
and growth. The Investment Team’s investment process focuses on global and
emerging markets fundamentals and considers factors such as liquidity and risk
management at the macro level. The Investment Team utilizes the Investment
Manager’s broad and current knowledge of important investment areas in various
Emerging Market Countries gained, in part, through research, experience,
long-standing relationships with reliable local firms and, where appropriate,
visits by its investment personnel to countries in their respective regions of
responsibility.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in bonds and other debt instruments
denominated in the local currencies of Emerging Market Countries. The Fund’s
investments in derivatives and other synthetic instruments that have economic
characteristics similar to the investments described above will be counted
toward satisfaction of the Fund’s 80% investment policy.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the bid/asked spread on purchases and sales of
securities, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may
result in higher taxes for you if your Fund shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Examples, may adversely affect the Fund’s investment performance.
Principal
Risks
The
Fund’s past performance (before and after taxes) does not predict how the Fund
will perform in the future. It is possible to
lose money on an investment in the Fund. Among the principal risks of
investing in the Fund, which could adversely affect its net asset value, yield
and total return, are (in alphabetical order after the first five risks) the
following:
|
• |
|
Foreign Investment Risk
|
|
• |
|
Counterparty and Third
Party Risk |
|
• |
|
Currency Management
Strategies Risk |
|
• |
|
Inflation/Deflation Risk
|
|
• |
|
Investments in Pooled
Vehicles Risk |
|
• |
|
Issuer
Non-Diversification Risk |
|
• |
|
Mortgage-Backed and
Asset-Backed Risk |
|
• |
|
Portfolio Turnover Risk
|
Please
see “SUMMARY OF PRINCIPAL RISKS” following this section for a description of
these and other risks of investing in the Fund.
92
ASHMORE
EMERGING MARKETS CORPORATE INCOME FUND
Investment
Objective
The
Fund seeks to maximize total return. The Fund’s investment objective may be
changed without a shareholder vote. The “total return” sought by the Fund
consists of income, gains and capital appreciation, if any.
Principal
Investment Strategies
The Fund seeks to achieve its objective by
investing principally in debt instruments of Corporate issuers (as defined
below), which may be denominated in any currency, including the local currency
of the issuer. A Corporate issuer is an issuer
located in an Emerging Market Country or an issuer deriving at least 50% of its
revenues or profits from goods produced or sold, investments made, or services
performed in one or more Emerging Market Countries or that has at least 50% of
its assets in one or more Emerging Market Countries. For these purposes,
Corporate issuers do not include Sovereigns or governmental agency issuers, but
may include corporate or other business entities in which a Sovereign or
governmental agency or entity may have, indirectly or directly, an interest,
including a majority or greater ownership interest (e.g., CITIC, Qatar Telecom).
Emerging Market Country means any country included by the International Monetary
Fund in its list of Emerging and Developing Economies, any country which is
considered a low-income, lower-middle-income, or upper-middle-income economy by the World Bank, and all
countries represented in any widely-recognized index of emerging market
securities (e.g., the relevant indices in the family of J.P. Morgan Corporate
Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets Index, J.P.
Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond Index—Emerging
Markets and MSCI Emerging and Frontier Markets Index).
The
Fund may invest in debt instruments of all types issued by Corporate issuers,
whether subordinated or unsubordinated, secured or unsecured, quoted or
unquoted, rated or unrated, or floating rate or fixed rate. These may include,
without limitation, bonds, debentures, notes, convertible securities, commercial
paper, loans and related assignments and participations, trade claims, bank
certificates of deposit, fixed time deposits, bankers’ acceptances, and money
market instruments, including money market funds denominated in U.S. dollars or
other currencies. The Fund may invest in companies of any market capitalization,
and its allocations among small-, mid- and large-capitalization issuers may vary
significantly over time.
The
Fund may invest in obligations of any credit quality, including obligations that
are in default or that are subject to insolvency proceedings. The Fund may
invest without limitation in debt securities that are rated below investment
grade or that are unrated but judged by the Investment Manager to be of
comparable quality (i.e., “junk bonds”).
The
Fund normally seeks to maintain a weighted average portfolio duration of between
2 and 10 years.
Although
the Fund may gain most of its investment exposure to Corporate issuers directly,
the Fund may utilize various derivative instruments and related strategies,
including exclusively, to gain exposure to one or more Corporate issuers or
other assets. The Fund may utilize derivatives of all types and may invest in,
without limitation, call and put options (including options on futures
contracts), futures and forward contracts (including contracts relating to
currencies), and swap agreements (including total return, interest rate and
credit default swaps) and other related instruments with respect to individual
bonds and other securities, indices and baskets of securities, interest rates
and currencies, and credit-linked notes as part of its principal investment
strategies. The Fund expects to primarily use derivatives for hedging or
efficient portfolio management purposes, but may also use them to increase the
Fund’s investment exposure beyond that which it could achieve by investing
directly in more conventional securities. The Fund may also invest directly in
foreign currencies for hedging or other investment purposes.
The
Fund may invest in convertible debt instruments and equity securities related to
convertible securities or warrants the Fund holds or has held, as well as
acquire and hold equity securities, including warrants, resulting from debt
conversion or restructuring. The Fund may invest in the securities of other
investment companies, including exchange-traded funds (“ETFs”) and other pooled
vehicles, if the investment companies invest principally in the types of
investments in which the Fund may invest directly. The Fund may also lend its
portfolio securities, borrow money for investment and other purposes, and enter
into repurchase and reverse repurchase agreement transactions.
The
Fund will not invest more than 25% of its net assets in any one Emerging Market
Country. In addition, the Fund will not invest more than 20% of its net assets
in investments denominated in currencies other than the U.S. dollar.
93
In
managing the Fund, the Investment Team employs a largely top-down, active and
value-driven investment approach in analyzing emerging markets and currencies.
The Fund’s investment approach includes an emphasis on the influence of politics
(both local and international). The Investment Team combines its top-down
approach with an analytically-driven, bottom-up approach to making purchase and
sale decisions with respect to individual corporate credits. The Investment Team
seeks opportunities in selected emerging markets that it believes may benefit
from significant positive changes, such as political and economic reforms,
increases in capital inflows and investor confidence, and seeks to invest in
Corporate issuers it expects will benefit from such developments and associated
economic development and growth. The Investment Team’s investment process
focuses on global and emerging markets fundamentals and considers factors such
as liquidity and risk management at the macro level. The Investment Team
utilizes the Investment Manager’s broad and current knowledge of important
investment areas in various Emerging Market Countries gained, in part, through
research, experience, long-standing relationships with reliable local firms and,
where appropriate, visits by its investment personnel to countries in their
respective regions of responsibility.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in bonds and other debt instruments of
Corporate issuers (as defined above). The Fund’s investments in derivatives and
other synthetic instruments that have economic characteristics similar to the
investments described above will be counted toward satisfaction of the Fund’s
80% investment policy.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the bid/asked spread on purchases and sales of
securities, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may
result in higher taxes for you if your Fund shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Examples, may adversely affect the Fund’s investment performance.
Principal
Risks
The
Fund’s past performance (before and after taxes) does not predict how the Fund
will perform in the future. It is possible to
lose money on an investment in the Fund. Among the principal risks of
investing in the Fund, which could adversely affect its net asset value, yield
and total return, are (in alphabetical order after the first seven risks) the
following:
|
• |
|
Foreign Investment Risk
|
|
• |
|
Counterparty and Third
Party Risk |
|
• |
|
Currency Management
Strategies Risk |
|
• |
|
Inflation/Deflation Risk
|
|
• |
|
Investments in Pooled
Vehicles Risk |
|
• |
|
Portfolio Turnover Risk
|
|
• |
|
Small and Mid-Sized
Companies Risk |
Please
see “SUMMARY OF PRINCIPAL RISKS” following this section for a description of
these and other risks of investing in the Fund.
94
ASHMORE
EMERGING MARKETS SHORT DURATION FUND
Investment
Objective
The
Fund seeks to maximize total return. The Fund’s investment objective may be
changed without a shareholder vote. The “total return” sought by the Fund
consists of income, gains and capital appreciation, if any.
Principal
Investment Strategies
The
Fund seeks to achieve its objective by investing principally in short-term debt
instruments of, and derivative instruments related to, Sovereign,
Quasi-Sovereign and Corporate issuers of Emerging Market Countries denominated
exclusively in Hard Currencies (i.e., the U.S. dollar or any currency of a
nation in the G-7). The Fund normally seeks to maintain a weighted average
portfolio duration of between 1 and 3 years. The Fund has no restrictions on
individual security duration.
Duration is one measure of the expected life of a
fixed income instrument that is used to determine the sensitivity of a
security’s price to changes in interest rates. Securities with longer durations
tend to be more sensitive to changes in interest rates, usually making them more
volatile than securities with shorter durations. Accordingly, bond funds with
longer average portfolio durations will generally be more sensitive to changes
in interest rates than bond funds with shorter average portfolio durations. By
way of example, the price of a bond fund with a duration of five years would be
expected to fall approximately 5% if interest rates rose by one percentage
point.
Sovereigns are governments of Emerging Market
Countries. For these purposes, Sovereigns may include EM Supra-Nationals.
Quasi-Sovereigns are governmental entities, agencies and other issuers that are
more than 50% owned, directly or indirectly, by a Sovereign, or whose
obligations are guaranteed by a Sovereign. For these purposes, governmental
entities include a province, a city and local or regional governmental bodies. A
Corporate issuer is any issuer other than a Sovereign or a Quasi-Sovereign that
is located in an Emerging Market Country or, an issuer deriving at least 50% of
its revenues or profits from goods produced or sold, investments made, or
services performed in one or more Emerging Market Countries or that has at least
50% of its assets in one or more Emerging Market Countries. Emerging Market
Country means any country included by the International Monetary Fund in its
list of Emerging and Developing Economies, any country which is considered a
low-income, lower-middle-income, or upper-middle-income economy by the World
Bank, and all countries represented in any widely-recognized index of emerging
market securities (e.g., the relevant indices in the family of J.P. Morgan
Corporate Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets Index,
J.P. Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond
Index—Emerging Markets and MSCI Emerging and Frontier Markets Index).
The
Fund may invest in debt instruments of all types, whether subordinated or
unsubordinated, secured or unsecured, quoted or unquoted, rated or unrated, or
floating rate or fixed rate. These may include, without limitation, bonds,
debentures, notes, convertible securities, commercial paper, loans and related
assignments and participations, bank certificates of deposit, fixed time
deposits, bankers’ acceptances, and money market instruments, including money
market funds denominated in U.S. dollars or other currencies. The Fund may
invest in companies of any market capitalization, and its allocations among
small-, mid- and large capitalization issuers may vary significantly over time.
The
Fund may invest in obligations of any credit quality, including obligations that
are in default or that are subject to insolvency proceedings. The Fund may
invest without limitation in debt securities that are rated below investment
grade or that are unrated but judged by the Investment Manager to be of
comparable quality (i.e., “junk bonds”).
The
Fund is “non-diversified,” which means that it may invest a relatively large
portion of its assets in a single issuer or a small number of issuers in
comparison to a fund that is “diversified.”
The
Fund may utilize various derivative instruments and related strategies,
including to gain exposure to one or more of the issuers referred to above or
other assets. The Fund may utilize derivatives of all types and may invest in,
without limitation, call and put options (including options on futures
contracts), futures and forward contracts and swap agreements (including total
return, interest rate, and credit default swaps), credit-linked notes,
structured notes and other related instruments with respect to individual
currencies, bonds, and securities of any kind, indices and baskets of
securities, interest rates and currencies as part of its principal investment
strategies.
The
Fund may use derivatives for hedging or efficient portfolio management purposes,
but may also use them to increase the Fund’s investment exposure beyond that
which it could achieve by investing directly in more conventional securities.
The
95
Fund
may invest in currency-related transactions, such as currency forward
transactions (including deliverable and non-deliverable forwards), currency
futures transactions and currency options transactions, and may also invest
directly in foreign currencies, in each case for hedging or other investment
purposes.
The
Fund may invest in convertible debt instruments and equity securities related to
convertible securities or warrants the Fund holds or has held, as well as
acquire and hold equity securities, including warrants, resulting from debt
conversion or restructuring. The Fund may invest in the securities of other
investment companies, including exchange-traded funds (“ETFs”) and other pooled
vehicles, if the investment companies invest principally in the types of
investments in which the Fund may invest directly. The Fund may also lend its
portfolio securities, borrow money for investment and other purposes, and enter
into repurchase and reverse repurchase agreement transactions.
The
Fund will not invest more than 35% of its net assets in any one Emerging Market
Country.
In
managing the Fund, the Investment Team employs a largely top-down, active and
value-driven investment approach in analyzing emerging markets and currencies.
The Fund’s investment approach includes an emphasis on the influence of politics
(both local and international). The Investment Team combines this top-down
approach with an analytically-driven, bottom-up approach to making purchase and
sale decisions with respect to individual corporate credits. The Investment Team
seeks to invest in a portfolio of short duration fixed-income securities in an
effort to limit the Fund’s exposure to interest rate risk. The Investment Team
seeks opportunities in selected emerging markets that it believes may benefit
from significant positive changes, such as political and economic reforms,
increases in capital inflows and investor confidence, and seeks to invest in
issuers in government and Corporate sectors it expects will benefit from such
developments and associated economic development and growth. The Investment
Team’s investment process focuses on global and emerging markets fundamentals
and considers factors such as liquidity and risk management at the macro level.
This approach utilizes the Investment Manager’s broad and current knowledge of
important investment areas in various Emerging Market Countries gained, in part,
through research, experience, long-standing relationships with reliable local
firms and, where appropriate, visits by its investment personnel to countries in
their respective regions of responsibility.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in bonds and other debt instruments
issued by Sovereign, Quasi-Sovereign or Corporate issuers of Emerging Market
Countries. The Fund’s investments in derivatives and other synthetic instruments
that have economic characteristics similar to the investments described above
will be counted toward satisfaction of the Fund’s 80% investment policy.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the bid/asked spread on purchases and sales of
securities, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may
result in higher taxes for you if your Fund shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Examples, may adversely affect the Fund’s investment performance.
96
Principal
Risks
It is possible to lose money on an investment in the
Fund. Among the principal risks of investing in the Fund, which could
adversely affect its net asset value, yield and total return, are (in
alphabetical order after the first seven risks) the following:
|
• |
|
Foreign Investment Risk
|
|
• |
|
Counterparty and Third
Party Risk |
|
• |
|
Currency Management
Strategies Risk |
|
• |
|
Inflation/Deflation Risk
|
|
• |
|
Investments in Pooled
Vehicles Risk |
|
• |
|
Issuer
Non-Diversification Risk |
|
• |
|
Portfolio Turnover Risk
|
|
• |
|
Small and Mid-Sized
Companies Risk |
Please
see “SUMMARY OF PRINCIPAL RISKS” following this section for a description of
these and other risks of investing in the Fund.
97
ASHMORE
EMERGING MARKETS ACTIVE EQUITY FUND
Investment
Objective
The
Fund seeks long-term capital appreciation. The Fund’s investment objective may
be changed without a shareholder vote.
Principal
Investment Strategies
The Fund seeks to achieve its objective by
investing principally in equity securities and equity-related investments of
Emerging Market Issuers (as defined below), which may be denominated in any
currency, including the local currency of the issuer. An Emerging Market Issuer is an issuer that is either
domiciled in an Emerging Market Country, or an issuer deriving at least 50% of
its revenues in or from one or more Emerging Market Countries. Emerging Market
Country means any country included by the International Monetary Fund in its
list of Emerging and Developing Economies, any country which is considered a
low-income, lower-middle-income, or upper-middle-income economy by the World
Bank, and all countries represented in any widely-recognized index of emerging
market securities (e.g., the relevant indices in the family of J.P. Morgan
Corporate Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets Index,
J.P. Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond
Index—Emerging Markets and MSCI Emerging and Frontier Markets Index).
The
Fund may invest in equity securities and equity-related investments of all types
and denominated in any currency, including voting and non-voting common stock,
common stock issued to special shareholder classes, preferred stock, depositary
receipts, including global and American depositary receipts, warrants,
securities convertible into equity securities, other equity-related investments
whose returns vary on the basis of the issuer’s profitability (e.g.,
participation notes), as well as securities of other investment companies,
including exchange-traded funds (“ETFs”) and other pooled vehicles. The Fund may
invest in companies of any market capitalization, and its allocations among
small-, mid- and large-capitalization issuers may vary significantly over time.
The Fund may invest through investment funds, pooled accounts or other
investment vehicles designed to permit investments in a portfolio of equity
securities listed in a particular Emerging Market Country or region,
particularly in the case of countries in which such an investment vehicle is the
exclusive or main vehicle for foreign portfolio investment. The Fund’s
investments may include securities of companies that are in the process of being
privatized by a government and securities of companies that are traded in
unregulated over-the-counter markets or other types of unlisted securities
markets. The Fund may invest in initial public offerings.
The
Fund may utilize various derivative instruments and related strategies to gain
exposure to one or more issuers or other assets. The Fund may utilize
derivatives of all types and may invest in, without limitation, call and put
options (including options on futures contracts); futures and forward contracts,
including contracts related to currencies; and swap agreements (including total
return and interest rate swaps); other related instruments with respect to
individual stocks and other securities, indices and baskets of securities,
interest rates and currencies; participation notes; structured notes; exchange
traded notes; and credit-linked notes as part of its principal investment
strategies. The Fund may enter into foreign currency forward contracts as well
as foreign currency futures and options contracts with respect to any currency
in which it has existing investments or has contracted to make investments in an
attempt to hedge currency exchange risk. The Fund expects to primarily use
derivatives for hedging or efficient portfolio management purposes, but may also
use them to increase the Fund’s investment exposure beyond that which it could
achieve by investing directly in more conventional securities. The Fund may also
invest directly in foreign currencies for hedging or other investment purposes.
In
managing the Fund’s portfolio, the Investment Manager seeks to identify equity
investments within Emerging Markets.
The
Fund is managed actively, utilizing a top-down approach, taking into account
macro- and micro-economic insights, supplemented by bottom-up research.
Macro-economic
insights are based on the Investment Manager’s economic research on Emerging
Market Countries. Micro-economic insights are derived from an analysis of
aggregate earnings, and country- and industry-specific factors, which include
demand/supply, level of competition, regulatory environment and interest rates.
Macro-
and micro-economic insights are together used to identify areas within the
investable universe that the Investment Manager believes exhibit attractive
fundamentals. Within these attractive areas, bottom-up research is conducted to
select particular instruments based on anticipated return potential. Bottom-up
research includes analysis of businesses, earnings expectations, underlying
business assumptions and risks, and takes into account market factors including
market positioning and capital flows.
98
The
Fund’s portfolio is constructed from equity securities with what the Investment
Manager believes to have attractive risk-adjusted upside potential. The Fund’s
active weighting of investments across countries, industries and sectors
reflects the Investment Manager’s top-down preferences, which may vary
significantly over time. The overall liquidity, volatility and beta of the
portfolio are also informed by the Investment Manager’s macro-economic insights.
The number of individual securities held in the Fund’s portfolio may vary over
time based on the outlook of the portfolio managers, market conditions and other
factors, and the Fund is not managed to have a particular number or range of
portfolio holdings.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in equity securities of Emerging Market
Issuers. The Fund’s investments in derivatives and other synthetic instruments
that have economic characteristics similar to these instruments will be counted
toward the Fund’s 80% investment policy. For example, futures contracts may be
used to obtain investment exposure equal to a portion of the Fund’s cash
positions.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the brokerage commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, may adversely affect the
Fund’s investment performance.
Principal
Risks
The
Fund’s past performance (before and after taxes) does not predict how the Fund
will perform in the future. It is possible to
lose money on an investment in the Fund. Among the principal risks of
investing in the Fund, which could adversely affect its net asset value, yield
and total return, are (in alphabetical order after the first five risks) the
following:
|
• |
|
Foreign Investment Risk
|
|
• |
|
Focused Investment Risk
|
|
• |
|
Convertible Securities
Risk |
|
• |
|
Counterparty and Third
Party Risk |
|
• |
|
Currency Management
Strategies Risk |
|
• |
|
Inflation/Deflation Risk
|
|
• |
|
Investments in Pooled
Vehicles Risk |
|
• |
|
Portfolio Turnover Risk
|
|
• |
|
Small and Mid-Sized
Companies Risk |
Please
see “SUMMARY OF PRINCIPAL RISKS” following this section for a description of
these and other risks of investing in the Fund.
99
ASHMORE
EMERGING MARKETS SMALL-CAP EQUITY FUND
Investment
Objective
The
Fund seeks long-term capital appreciation. The Fund’s investment objective may
be changed without a shareholder vote.
Principal
Investment Strategies
The Fund seeks to achieve its objective by
investing at least 80% of its net assets in equity securities and equity-related
investments of Small-Capitalization Emerging Market Issuers (as defined below),
which may be denominated in any currency, including the local currency of the
issuer. The Fund currently defines a Small-Capitalization issuer as any issuer
included in the MSCI Emerging Market Small Cap Index at the time of purchase, as
well as any issuer with a market capitalization that is in the lowest 15% of the
market capitalization range of issuers included in the MSCI Emerging Markets
Investible Market Index (IMI) at the time of purchase (between
$98.60 million and $3.53 billion as of January 1, 2024). An Emerging Market Issuer is an issuer that is
located in an Emerging Market Country, or an issuer deriving at least 50% of its
revenues or profits from goods produced or sold, investments made, or services
performed in one or more Emerging Market Countries or that has at least 50% of
its assets in one or more Emerging Market Countries. Emerging Market Country
means any country included by the International Monetary Fund in its list of
Emerging and Developing Economies, any country which is considered a low-income,
lower-middle-income, or upper-middle-income economy by the World Bank, and all
countries represented in any widely-recognized index of emerging market
securities (e.g., the relevant indices in the family of J.P. Morgan Corporate
Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets Index, J.P.
Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond Index—Emerging
Markets and MSCI Emerging and Frontier Markets Index).
The
Fund may invest in equity securities and equity-related investments of all types
and denominated in any currency, including voting and non-voting common stock,
common stock issued to special shareholder classes, preferred stock, depositary
receipts, including global and American depositary receipts, warrants,
securities convertible into equity securities, other equity-related investments
whose returns vary on the basis of the issuer’s profitability (e.g., participation notes), as well as
securities of other investment companies, including exchange-traded funds
(“ETFs”) and other pooled vehicles. The Fund may invest through investment
funds, pooled accounts or other investment vehicles designed to permit
investments in a portfolio of equity securities listed in a particular Emerging
Market Country or region, particularly in the case of countries in which such an
investment vehicle is the exclusive or main vehicle for foreign portfolio
investment. The Fund’s investments may include securities of companies that are
in the process of being privatized by a government, securities of companies that
are traded in unregulated over-the-counter markets or other types of unlisted
securities markets, and unregistered securities issued in private placements.
The Fund may also invest in initial public offerings. Although the Fund focuses
on Small-Capitalization securities, it reserves the flexibility to invest a
portion of its assets in securities of medium- or large-capitalization issuers.
The
Fund may utilize various derivative instruments and related strategies to gain
exposure to one or more issuers or other assets. The Fund may utilize
derivatives of all types and may invest in, without limitation, call and put
options (including options on futures contracts); futures and forward contracts,
including contracts related to currencies; and swap agreements (including total
return and interest rate swaps); other related instruments with respect to
individual stocks and other securities, indices and baskets of securities,
interest rates and currencies; participation notes; structured notes; exchange
traded notes; and credit-linked notes as part of its principal investment
strategies. The Fund may enter into foreign currency forward contracts as well
as foreign currency futures and options contracts with respect to any currency
in which it has existing investments or has contracted to make investments in an
attempt to hedge currency exchange risk. The Fund expects to primarily use
derivatives for hedging or efficient portfolio management purposes, but may also
use them to increase the Fund’s investment exposure beyond that which it could
achieve by investing directly in more conventional securities. The Fund may also
invest directly in foreign currencies for hedging or other investment purposes.
In
managing the Fund’s portfolio, the Investment Manager uses principally a
bottom-up approach to identify particular securities for investment within
Emerging Market Countries. The Investment Manager’s investment approach is
driven by fundamental value and involves a rigorous, systemic and value-oriented
security selection process. The portfolio manager analyzes the universe of
available Small-Capitalization Emerging Market equity investments in an attempt
to identify issuers that are undervalued relative to their long-term growth
prospects. Potential candidates are systematically screened for fundamental
value based on a number of factors, such as price to earnings ratio, price to
future growth ratio, price to book value ratio, price to cash flow ratio, free
cash flow, return on equity, debt to equity ratio, earnings growth, and earnings
momentum. Attractive candidates undergo a more rigorous review to assess the
issuer’s long-term prospects, including with
100
respect
to management strength, market outlook, competitiveness, regulatory changes,
restructuring and expansion plans, profitability, financial viability, interest
coverage and hidden assets. As part of this process, the Investment Manager
conducts visits to various companies in the small-capitalization segment of
Emerging Market Countries and utilizes a proprietary database and earnings
forecasts to compare applicable industries and issuers. The screening process is
designed, in part, to avoid investments deemed by the portfolio manager to have
unacceptable risk factors. The portfolio manager also reviews and takes into
account overall Fund exposures to particular Emerging Market Countries and
sectors in an effort to construct a portfolio that provides adequate
diversification and risk controls. Taking into account the results of this
screening process, the portfolio manager selects particular investments designed
to produce a diversified equity portfolio of Small-Capitalization Emerging
Market Issuers.
The
Investment Manager may in its sole discretion consider selling a particular
security held in the Fund’s portfolio when the factors that led to its
investment change adversely or when a more attractive candidate is identified.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, including
obligations of Emerging Market Issuers and countries, cash, cash equivalents,
money market funds, and other similar funds. The Fund may not achieve its
investment objective when it does so. The Fund may also invest a portion of its
assets in such investments and instruments on a short term or temporary basis to
manage its cash positions or otherwise manage the Fund efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in equity securities and other
equity-related investments of Small-Capitalization Emerging Market Issuers. The
Fund’s investments in derivatives and other synthetic instruments that have
economic characteristics similar to these investments will be counted toward
satisfaction of the Fund’s 80% investment policy.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the brokerage commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Examples, may adversely affect the
Fund’s investment performance.
Principal
Risks
The
Fund’s past performance (before and after taxes) does not predict how the Fund
will perform in the future. It is possible to
lose money on an investment in the Fund. Among the principal risks of
investing in the Fund, which could adversely affect its net asset value, yield
and total return, are (in alphabetical order after the first six risks) the
following:
|
• |
|
Small and Mid-Sized
Companies Risk |
|
• |
|
Foreign Investment Risk
|
|
• |
|
Focused Investment Risk
|
|
• |
|
Convertible Securities
Risk |
|
• |
|
Counterparty and Third
Party Risk |
|
• |
|
Currency Management
Strategies Risk |
|
• |
|
Inflation/Deflation Risk
|
|
• |
|
Investments in Pooled
Vehicles Risk |
|
• |
|
Portfolio Turnover Risk
|
Please
see “SUMMARY OF PRINCIPAL RISKS” following this section for a description of
these and other risks of investing in the Fund.
101
ASHMORE
EMERGING MARKETS FRONTIER EQUITY FUND
Investment
Objective
The
Fund seeks long-term capital appreciation. The Fund’s investment objective may
be changed without a shareholder vote.
Principal
Investment Strategies
The
Fund seeks to achieve its objective by investing principally in equity
securities and equity-related investments of Frontier Market Issuers, which may
be denominated in any currency, including the local currency of the issuer. A
Frontier Market Issuer is an issuer that is located in a Frontier Market
Country, or an issuer deriving at least 50% of its revenues or profits from
goods produced or sold, investments made, or services performed in one or more
Frontier Market Countries or that has at least 50% of its assets in one or more
Frontier Market Countries.
Frontier Market countries are countries that either
currently or in the future are represented in widely-recognized indices of
frontier market securities or the Investment Manager considers the market to
have frontier market characteristics in respect to economic, political or market
structure.
The
Fund may invest in equity securities and equity-related investments of all types
and denominated in any currency, including voting and non-voting common stock,
common stock issued to special shareholder classes, preferred stock, depositary
receipts, including global and American depositary receipts, warrants,
securities convertible into equity securities, other equity-related investments
whose returns vary on the basis of the issuer’s profitability (e.g., participation notes), as well as
securities of other investment companies, including exchange-traded funds
(“ETFs”) and other pooled vehicles. The Fund may invest through investment
funds, pooled accounts or other investment vehicles designed to permit
investments in a portfolio of equity securities listed in one or more Frontier
Market Countries or regions, particularly in the case of countries that may have
restrictions on foreign investment or countries where such investments may
represent an efficient method of achieving investment exposure. The Fund’s
investments may include securities of companies that are in the process of being
privatized by a government, securities of companies that are traded in
unregulated over-the-counter markets or other types of unlisted securities
markets, and unregistered securities issued in private placements.
The
Fund may invest in companies of any market capitalization and may also invest in
initial public offerings. The Fund’s benchmark index, the MSCI Frontier + Select
Emerging Markets Countries Capped Index, is currently concentrated in the
commercial banking industry. Although the Fund is not an index fund and does not
seek to replicate the performance of its benchmark index, it may concentrate its
investments in the commercial banking industry. As of the date of this
Prospectus, the Fund’s investments are concentrated in the commercial banking
industry.
The
Fund may utilize various derivative instruments and related strategies to gain
exposure to one or more issuers or other assets. The Fund may utilize
derivatives of all types and may invest in, without limitation, call and put
options (including options on futures contracts); futures and forward contracts,
including contracts related to currencies; and swap agreements (including total
return and interest rate swaps); other related instruments with respect to
individual stocks and other securities, indices and baskets of securities,
interest rates and currencies; participation notes; structured notes; exchange
traded notes; and credit-linked notes as part of its principal investment
strategies. The Fund may enter into foreign currency forward contracts as well
as foreign currency futures and options contracts with respect to any currency
in which it has existing investments or has contracted to make investments in an
attempt to hedge currency exchange risk. The Fund expects to primarily use
derivatives for hedging or efficient portfolio management purposes, but may also
use them to increase the Fund’s investment exposure beyond that which it could
achieve by investing directly in more conventional securities. The Fund may also
invest directly in foreign currencies for hedging or other investment purposes.
In
managing the Fund’s portfolio, the portfolio managers of the Investment Manager
(the “Portfolio Managers”) use principally a bottom-up approach to identify
particular securities for investment within Frontier Market Countries. The
Portfolio Managers’ investment approach is driven by fundamental value and
involves a rigorous, systemic and value-oriented security selection process. The
Portfolio Managers analyze the universe of available Frontier Market equity
investments in an attempt to identify issuers that are undervalued relative to
their long-term growth prospects. Potential candidates are systematically
screened for fundamental value based on a number of factors, such as price to
earnings ratio, price to future growth ratio, price to book value ratio, price
to cash flow ratio, free cash flow, return on equity, debt to equity ratio,
earnings growth, and earnings momentum. Attractive candidates undergo a more
rigorous review to assess the issuer’s long-term prospects, including with
respect to management strength, market outlook, competitiveness, regulatory
changes, restructuring and expansion plans, profitability, financial viability,
interest coverage, and hidden assets. As part of this
102
process,
the Portfolio Managers conduct visits to various companies in the Frontier
Market Countries and utilize a proprietary database and earnings forecasts to
compare applicable industries and issuers. The screening process is designed, in
part, to avoid investments deemed by the Portfolio Managers to have unacceptable
risk factors. The Portfolio Managers also review and take into account overall
Fund exposures to particular Frontier Market Countries and sectors in an effort
to construct a portfolio that provides a measure of diversification among
Frontier Market Countries and sectors. Taking into account the results of this
screening process, the Portfolio Managers select particular investments designed
to produce a diversified equity portfolio of Frontier Market Issuers.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in equity securities and other
equity-related investments of Frontier Market Issuers. The Fund’s investments in
derivatives and other synthetic instruments that have economic characteristics
similar to these investments will be counted toward satisfaction of the Fund’s
80% investment policy. For example, futures contracts may be used to obtain
investment exposure equal to a portion or all of the Fund’s cash positions.
The
Portfolio Managers may in their sole discretion consider selling a particular
security held in the Fund’s portfolio when the factors that led to their
investment change adversely or when a more attractive candidate is identified.
Principal
Risks
The
Fund’s past performance (before and after taxes) does not predict how the Fund
will perform in the future. It is possible to
lose money on an investment in the Fund. Among the principal risks of
investing in the Fund, which could adversely affect its net asset value, yield
and total return, are (in alphabetical order after the first six risks) the
following:
|
• |
|
Financial Services Risk
|
|
• |
|
Foreign Investment Risk
|
|
• |
|
Focused Investment Risk
|
|
• |
|
Convertible Securities
Risk |
|
• |
|
Counterparty and Third
Party Risk |
|
• |
|
Currency Management
Strategies Risk |
|
• |
|
Inflation/Deflation Risk
|
|
• |
|
Investments in Pooled
Vehicles Risk |
|
• |
|
Portfolio Turnover Risk
|
|
• |
|
Small and Mid-Sized
Companies Risk |
Please
see “SUMMARY OF PRINCIPAL RISKS” following this section for a description of
these and other risks of investing in the Fund.
103
ASHMORE
EMERGING MARKETS EQUITY FUND
Investment
Objective
The
Fund seeks long-term capital appreciation. The Fund’s investment objective may
be changed without a shareholder vote.
Principal
Investment Strategies
The Fund seeks to achieve its objective by
investing principally in equity securities and equity-related investments of
Emerging Market Issuers (as defined below), which may be denominated in any
currency, including the local currency of the issuer. An Emerging Market Issuer is an issuer that is
located in an Emerging Market Country, or an issuer deriving at least 50% of its
revenues or profits from goods produced or sold, investments made, or services
performed in one or more Emerging Market Countries or that has at least 50% of
its assets in one or more Emerging Market Countries. Emerging Market Country
means any country included by the International Monetary Fund in its list of
Emerging and Developing Economies, any country which is considered a low-income,
lower-middle-income, or upper-middle-income economy by the World Bank, and all
countries represented in any widely-recognized index of emerging market
securities (e.g., the relevant indices in the family of J.P. Morgan Corporate
Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets Index, J.P.
Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond Index—Emerging
Markets and MSCI Emerging and Frontier Markets Index).
The
Fund may invest in equity securities and equity-related investments of all types
and denominated in any currency, including voting and non-voting common stock,
common stock issued to special shareholder classes, preferred stock, depositary
receipts, including global and American depositary receipts, warrants,
securities convertible into equity securities, other equity-related investments
whose returns vary on the basis of the issuer’s profitability (e.g., participation notes), as well as
securities of other investment companies, including exchange-traded funds
(“ETFs”) and other pooled vehicles. The Fund may invest through investment
funds, pooled accounts or other investment vehicles designed to permit
investments in a portfolio of equity securities listed in a particular Emerging
Market Country or region, particularly in the case of countries in which such an
investment vehicle is the exclusive or main vehicle for foreign portfolio
investment. The Fund’s investments may include securities of companies that are
in the process of being privatized by a government and securities of companies
that are traded in unregulated over-the-counter markets or other types of
unlisted securities markets. The Fund may invest in companies of any market
capitalization.
The
Fund may utilize various derivative instruments and related strategies to gain
exposure to one or more issuers or other assets. The Fund may utilize
derivatives of all types and may invest in, without limitation, call and put
options (including options on futures contracts); futures and forward contracts,
including contracts related to currencies; and swap agreements (including total
return and interest rate swaps); other related instruments with respect to
individual stocks and other securities, indices and baskets of securities,
interest rates and currencies; participation notes; structured notes; exchange
traded notes; and credit-linked notes as part of its principal investment
strategies. The Fund may enter into foreign currency forward contracts as well
as foreign currency futures and options contracts with respect to any currency
in which it has existing investments or has contracted to make investments in an
attempt to hedge currency exchange risk. The Fund expects to primarily use
derivatives for hedging or efficient portfolio management purposes, but may also
use them to increase the Fund’s investment exposure beyond that which it could
achieve by investing directly in more conventional securities. The Fund may also
invest directly in foreign currencies for hedging or other investment purposes.
In
managing the Fund’s portfolio, the Investment Manager utilizes primarily a
bottom-up process to identify securities with attractive growth prospects by
looking at revenues, profits or historic growth (based on revenue or profit),
whilst also overlaying a top-down process to identify further opportunities and
risks.
The
Investment Manager’s top-down analysis of Emerging Market Countries, as well as
companies that are in the process of being privatized by an Emerging Market
Country or that are less than 99% directly or indirectly owned by an Emerging
Market Country, include the following:
|
• |
|
Market Factors—including the relative
attractiveness of the particular Emerging Market Country in comparison to
its historic performance and with the performance of other emerging and
world markets on the basis of fundamental values (e.g., price/earnings
ratio, price/book value ratio, earnings growth, volatility, dividend
yield, and debt/equity ratio). |
|
• |
|
Macro-Economic Factors—including the
outlook for currencies, interest rates, commodities, economic growth,
inflation, business confidence and scope for private sector initiative.
|
104
|
• |
|
Political Factors—including the stability
of the current government and its perceived attitudes towards foreign
investment, private sector initiative and development of the capital
markets. |
|
• |
|
Market Development—the development of the
Emerging Market Country relative to developed markets in terms of market
capitalization, level of trading activity, sophistication of capital
market activities and shareholder protection. |
|
• |
|
Investment Restrictions—including the
level of foreign ownership allowed in the Emerging Market Country, the
method of investment allowed (e.g., direct investment or through funds),
required holding periods, ability to repatriate earnings and applicable
tax regulations. |
The
Investment Manager uses a systematic, bottom-up process to select particular
issuers for investment within each Emerging Market Country based on, among other
factors, market valuations, prospective growth prospects, sustainability of
competitive advantage, financial condition, asset backing and liquidity.
Potential investments are then systematically ranked in accordance with the
strength of fundamentals and attractiveness of valuation. The Investment Manager
then selects particular issuers in an effort to produce a broad portfolio of
investments in Emerging Market Countries.
The
Investment Manager monitors each of the Emerging Market Countries in which the
Fund has invested or may invest on a continuous basis and makes tactical shifts
in the Fund’s portfolio allocation when it sees fit based on new developments
and changes in the factors cited above. The Investment Manager may in its sole
discretion consider selling a particular security held in the Fund’s portfolio
when the factors that led to its investment change adversely or when a more
attractive candidate in the particular Emerging Market Country is identified.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, including
obligations of non-Emerging Market Issuers and countries, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in equity securities and other
equity-related investments of Emerging Market Issuers. The Fund’s investments in
derivatives and other synthetic instruments that have economic characteristics
similar to these investments will be counted toward satisfaction of the Fund’s
80% investment policy. For example, futures contracts may be used to obtain
investment exposure equal to a portion or all of the Fund’s cash positions.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the brokerage commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Example, may adversely affect the
Fund’s investment performance.
Principal
Risks
The
Fund’s past performance (before and after taxes) does not predict how the Fund
will perform in the future. It is possible to
lose money on an investment in the Fund. Among the principal risks of
investing in the Fund, which could adversely affect its net asset value, yield
and total return, are (in alphabetical order after the first six risks) the
following:
|
• |
|
Foreign Investment Risk
|
|
• |
|
Financial Services Risk
|
|
• |
|
Focused Investment Risk
|
|
• |
|
Convertible Securities
Risk |
|
• |
|
Counterparty and Third
Party Risk |
|
• |
|
Currency Management
Strategies Risk |
|
• |
|
Inflation/Deflation Risk
|
|
• |
|
Investments in Pooled
Vehicles Risk |
105
|
• |
|
Portfolio Turnover Risk
|
|
• |
|
Small and Mid-Sized
Companies Risk |
Please
see “SUMMARY OF PRINCIPAL RISKS” following this section for a description of
these and other risks of investing in the Fund.
106
ASHMORE
EMERGING MARKETS EQUITY ESG FUND
Investment
Objective
The
Fund seeks long-term capital appreciation.
Principal
Investment Strategies
The Fund seeks to achieve its objective by
investing principally in equity securities and equity-related investments of
Emerging Market Issuers (as defined below), which may be denominated in any
currency, including the local currency of the issuer, focusing on issuers that
the Investment Manager believes satisfy the ESG Criteria (as described below).
An Emerging Market Issuer is an issuer that is
located in an Emerging Market Country, or an issuer deriving at least 50% of its
revenues or profits from goods produced or sold, investments made, or services
performed in one or more Emerging Market Countries or that has at least 50% of
its assets in one or more Emerging Market Countries. Emerging Market Country
means any country included by the International Monetary Fund in its list of
Emerging and Developing Economies, any country which is considered a low-income,
lower-middle-income, or upper-middle-income economy by the World Bank, and all
countries represented in any widely-recognized index of emerging market
securities (e.g. the relevant indices in the family of J.P. Morgan Corporate
Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets Index, J.P.
Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond Index—Emerging
Markets and MSCI Emerging and Frontier Markets Index).
The
Investment Manager incorporates environmental, social and corporate governance
risk considerations into issuer analysis and uses its ESG Scoring Process (as
defined below) to help identify what it believes to be high quality companies
with strong performance or potential when measured against the ESG Criteria. The
Investment Manager looks at the relevant issuer’s sustainability by assessing
the strength and enduring nature of an issuer’s competitive advantages, which
are supported by long term planning and investment. Issuers that score poorly
during the ESG Scoring Process are excluded from the list of potential
investments.
The
Investment Manager defines and assesses ESG Criteria on the basis of an issuer’s
performance against the following metrics:
|
• |
|
Environment: Global and local impact,
greenhouse gas emissions, water and waste management, incidents of
environmental pollution, energy management and use of green energy,
policies and innovations to limit negative impact.
|
|
• |
|
Social: Employee diversity and inclusion,
customer welfare, human rights, community relations, labour practices,
health and safety, supply chain management, materiality of philanthropy
spend, product quality and safety. |
|
• |
|
Governance: Governance structure,
transparency and disclosure, representation of minority interests, public
listing and reporting, management accessibility, key performance
indicators used to design long-term incentive schemes, policies and
strategies to mitigate the impact of ESG risks. |
ESG Scoring Process means the scoring process
of the Investment Manager whereby the Investment Manager issues a score to each
issuer, based on their historical and current performance, taking into account
the environmental, social or governance risks that an issuer may present and the
performance of each issuer against ESG Criteria. Individual ESG criteria
generally will be given equal weight. The process relies on information drawn
from a range of data sources, including data from third party service providers,
which is subject to change.
The
Fund seeks to avoid investing in issuers that the Adviser determines have
significant involvement (i.e., more than 10% of revenues) in the manufacture,
distribution or sale of fossil fuels or tobacco products and in gambling,
pornography or defense (including controversial weapons) industries, or other
issuers that engage in business practices that the Adviser determines to be
sub-standard from an ESG or sustainability perspective in relation to their
industry or sector.
The
Fund may invest in equity securities and equity-related investments of all types
and denominated in any currency, including voting and non-voting common stock,
common stock issued to special shareholder classes, preferred stock, depositary
receipts, including global and American depositary receipts, warrants,
securities convertible into equity securities, other equity-related investments
whose returns vary on the basis of the issuer’s profitability (e.g., participation notes), as well as
securities of other investment companies, including exchange traded funds
(“ETFs”) and other pooled vehicles. The Fund may invest through investment
funds, pooled accounts or other investment vehicles designed to permit
investments in a
107
portfolio
of equity securities listed in a particular Emerging Market Country or region,
particularly in the case of countries in which such an investment vehicle is the
exclusive or main vehicle for foreign portfolio investment. The Fund’s
investments may include securities of companies that are in the process of being
privatized by a government and securities of companies that are traded in
unregulated over-the-counter markets or other types of unlisted securities
markets. The Fund may invest in companies of any market capitalization.
The
Fund may utilize various derivative instruments and related strategies to gain
exposure to one or more issuers or other assets. The Fund may utilize
derivatives of all types and may invest in, without limitation, call and put
options (including options on futures contracts); futures and forward contracts,
including contracts related to currencies; and swap agreements (including total
return and interest rate swaps); other related instruments with respect to
individual stocks and other securities, indices and baskets of securities,
interest rates and currencies; participation notes; structured notes; exchange
traded notes; and credit-linked notes as part of its principal investment
strategies. The Fund may enter into foreign currency forward contracts as well
as foreign currency futures and options contracts with respect to any currency
in which it has existing investments or has contracted to make investments in an
attempt to hedge currency exchange risk. The Fund expects to primarily use
derivatives for hedging or efficient portfolio management purposes, but may also
use them to increase the Fund’s investment exposure beyond that which it could
achieve by investing directly in more conventional securities. The Fund may also
invest directly in foreign currencies for hedging or other investment purposes.
In
managing the Fund’s portfolio, the Investment Manager utilizes primarily a
bottom-up process to identify securities with attractive growth prospects by
looking at revenues, profits or historic growth (based on revenue or profit),
whilst also overlaying a top-down process to identify further opportunities and
risks.
The
Investment Manager’s top-down analysis of Emerging Market Countries, as well as
companies that are in the process of being privatized by an Emerging Market
Country or that are less than 99% directly or indirectly owned by an Emerging
Market Country, include the following:
|
• |
|
Market Factors—including the relative
attractiveness of the particular Emerging Market Country in comparison to
its historic performance and with the performance of other emerging and
world markets on the basis of fundamental values (e.g., price/earnings
ratio, price/book value ratio, earnings growth, volatility, dividend
yield, and debt/equity ratio). |
|
• |
|
Macro-Economic Factors—including the
outlook for currencies, interest rates, commodities, economic growth,
inflation, business confidence and scope for private sector initiative.
|
|
• |
|
Political Factors—including the stability
of the current government and its perceived attitudes towards foreign
investment, private sector initiative and development of the capital
markets. |
|
• |
|
Market Development—the development of the
Emerging Market Country relative to developed markets in terms of market
capitalization, level of trading activity, sophistication of capital
market activities and shareholder protection. |
|
• |
|
Investment Restrictions—including the
level of foreign ownership allowed in the Emerging Market Country, the
method of investment allowed (e.g., direct investment or through funds),
required holding periods, ability to repatriate earnings and applicable
tax regulations. |
The
Investment Manager uses a systematic, bottom-up process to select particular
issuers for investment within each Emerging Market Country based on, among other
factors, ESG Criteria, sustainability factors, market valuations, prospective
growth prospects, sustainability of competitive advantage, financial condition,
asset backing and liquidity. Sustainability factors include the level and
sustainability of returns on capital, the ability to generate strong predictable
cash flow, balance sheet figures and skillful management teams that can sustain
competitive advantages. Potential investments are then systematically ranked in
accordance with the strength of fundamentals and attractiveness of valuation.
The Investment Manager then selects particular issuers in an effort to produce a
broad portfolio of investments in Emerging Market Countries that satisfy the ESG
Criteria.
The
Investment Manager monitors each of the Emerging Market Countries in which the
Fund has invested or may invest on a continuous basis and makes tactical shifts
in the Fund’s portfolio allocation when it sees fit based on new developments
and changes in the factors cited above. The Investment Manager may in its sole
discretion consider selling a particular security held in the Fund’s portfolio
when the factors that led to its investment change adversely or when a more
attractive candidate in the particular Emerging Market Country is identified.
108
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, including
obligations of non-Emerging Market Issuers and countries, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in equity securities and other
equity-related investments of Emerging Market Issuers that the Investment
Manager believes satisfy the ESG Criteria. The Fund’s investments in derivatives
and other synthetic instruments that have economic characteristics similar to
these investments will be counted toward satisfaction of the Fund’s 80%
investment policy. For example, futures contracts may be used to obtain
investment exposure equal to a portion or all of the Fund’s cash positions.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the brokerage commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes for you if your
Fund shares are held in a taxable account. These costs, which are not reflected
in Annual Fund Operating Expenses or in the Example, may adversely affect the
Fund’s investment performance.
The
Fund may invest in A Shares of companies based in China that trade on the
Shanghai Stock Exchange or the Shenzhen Stock Exchange through Stock Connect.
Stock Connect is a mutual stock market access program designed to, among other
things, enable foreign investments in China.
Principal
Risks
The
Fund’s past performance (before and after taxes) does not predict how the Fund
will perform in the future. It is possible to
lose money on an investment in the Fund. Among the principal risks of
investing in the Fund, which could adversely affect its net asset value, yield
and total return, are (in alphabetical order after the first eight risks) the
following:
|
• |
|
Foreign Investment Risk
|
|
• |
|
Focused Investment Risk
|
|
• |
|
Financial Services Risk
|
|
• |
|
Limited Operating
History Risk |
|
• |
|
Convertible Securities
Risk |
|
• |
|
Counterparty and Third
Party Risk |
|
• |
|
Currency Management
Strategies Risk |
|
• |
|
Inflation/Deflation Risk
|
|
• |
|
Investments in Pooled
Vehicles Risk |
|
• |
|
Portfolio Turnover Risk
|
|
• |
|
Small and Mid-Sized
Companies Risk |
Please
see “Summary of Principal Risks” following this section for a description of
these and other risks of investing in the Fund.
109
ASHMORE
EMERGING MARKETS LOW DURATION FUND
Investment
Objective
The
Fund seeks to maximize total return.
Principal
Investment Strategies
The
Fund seeks to achieve its objective by investing principally in short-term debt
instruments of, and derivative instruments related to, Sovereign,
Quasi-Sovereign and Corporate issuers of Emerging Market Countries denominated
exclusively in Hard Currencies (i.e., the U.S. dollar or any currency of a
nation in the G-7). The Fund normally seeks to maintain a weighted average
portfolio duration of between 1 and 3 years, and an Investment Grade weighted
average credit rating. The Fund has no restrictions on individual security
duration.
Investment Grade means a credit rating of BBB- or
above from Standard & Poor’s or equivalent rating from Moody’s or
Fitch. If an investment is rated by two or more rating agencies, the highest
rating will apply. If an investment is not rated at the time of acquisition, the
rating of the relevant issuer or the Sovereign shall apply. If an investment is
downgraded after the date of acquisition by the Fund then the Investment Manager
has discretion as to whether to hold the investment.
Weighted average credit rating for these purposes is
determined by reference to the credit quality of eligible instruments, which
include rated securities and debt instruments held by the Fund and derivatives
where the rating of the underlying instrument can be identified (cash, unrated
and unrateable instruments are not included in the calculation). Weights are
based on the market value of each eligible instrument divided by the total
market value attributable to eligible instruments held by the Fund.
Duration is one measure of the expected life of a
fixed income instrument that is used to determine the sensitivity of a
security’s price to changes in interest rates. Securities with longer durations
tend to be more sensitive to changes in interest rates, usually making them more
volatile than securities with shorter durations. Accordingly, bond funds with
longer average portfolio durations will generally be more sensitive to changes
in interest rates than bond funds with shorter average portfolio durations. By
way of example, the price of a bond fund with a duration of five years would be
expected to fall approximately 5% if interest rates rose by one percentage
point.
Sovereigns are governments of Emerging Market
Countries. For these purposes, Sovereigns may include EM Supra-Nationals.
Quasi-Sovereigns are entities (including a local or regional governmental body)
that are 100% guaranteed by a Sovereign or 100% directly or indirectly owned or
controlled by a Sovereign. For the avoidance of doubt, a province and a city are
classified as Quasi-Sovereigns. A Corporate issuer is any issuer other than a
Sovereign or a Quasi-Sovereign that is located in an Emerging Market Country or,
an issuer deriving at least 50% of its revenues or profits from goods produced
or sold, investments made, or services performed in one or more Emerging Market
Countries or that has at least 50% of its assets in one or more Emerging Market
Countries. Emerging Market Country means any country included by the
International Monetary Fund in its list of Emerging and Developing Economies,
any country which is considered a low-income, lower-middle-income, or
upper-middle-income economy by the World Bank, and all countries represented in
any widely-recognized index of emerging market securities (e.g., the relevant
indices in the family of J.P. Morgan Corporate Emerging Markets Bond Index, J.P.
Morgan Emerging Local Markets Index, J.P. Morgan Emerging Markets Bond Index,
J.P. Morgan Government Bond Index—Emerging Markets and MSCI Emerging and
Frontier Markets Index).
The
Fund may invest in debt instruments of all types, whether subordinated or
unsubordinated, secured or unsecured, quoted or unquoted, rated or unrated, or
fixed rate. These may include, without limitation, bonds, debentures, notes,
convertible securities, commercial paper, loans and related assignments and
participations, bank certificates of deposit, fixed time deposits, bankers’
acceptances, and money market instruments, including money market funds
denominated in U.S. dollars or other currencies. The Fund may invest in
companies of any market capitalization, and its allocations among small-, mid-
and large capitalization issuers may vary significantly over time.
The
Fund’s benchmark index, the JP Morgan CEMBI Investment Grade Broad Diversified
(1-3 years) Index, is currently concentrated in the banking industry. Although
the Fund is not an index fund and does not seek to replicate the performance of
its benchmark index, it may concentrate its investments in the banking industry.
As of the date of this Prospectus, the Fund’s investments are concentrated in
the banking industry.
The
Fund may invest in obligations of any credit quality, including obligations that
are in default or that are subject to insolvency proceedings. The Fund may
invest in debt securities that are rated below Investment Grade or that are
unrated but judged by the Investment Manager to be of comparable quality (i.e.,
“junk bonds”).
110
The
Fund may utilize various derivative instruments and related strategies,
including to gain exposure to one or more of the issuers referred to above or
other assets. The Fund may utilize derivatives of all types and may invest in,
without limitation, call and put options (including options on futures
contracts), futures and forward contracts and swap agreements (including total
return, interest rate, and credit default swaps), credit-linked notes,
structured notes and other related instruments with respect to individual
currencies, bonds, and securities of any kind, indices and baskets of
securities, interest rates and currencies as part of its principal investment
strategies.
The
Fund may use derivatives for hedging or efficient portfolio management purposes,
but may also use them to increase the Fund’s investment exposure beyond that
which it could achieve by investing directly in more conventional securities.
The Fund may invest in currency-related transactions, such as currency forward
transactions (including deliverable and non-deliverable forwards), currency
futures transactions and currency options transactions, and may also invest
directly in foreign currencies, in each case for hedging or other investment
purposes.
The
Fund may invest in convertible debt instruments and equity securities related to
convertible securities or warrants the Fund holds or has held, as well as
acquire and hold equity securities, including warrants, resulting from debt
conversion or restructuring. The Fund may invest in the securities of other
investment companies, including exchange-traded funds (“ETFs”) and other pooled
vehicles, if the investment companies invest principally in the types of
investments in which the Fund may invest directly. The Fund may also lend its
portfolio securities, borrow money for investment and other purposes, and enter
into repurchase and reverse repurchase agreement transactions.
In
managing the Fund, the Investment Team employs a largely top-down, active and
value-driven investment approach in analyzing emerging markets and currencies.
The Fund’s investment approach includes an emphasis on the influence of politics
(both local and international). The Investment Team combines this top-down
approach with an analytically-driven, bottom-up approach to making purchase and
sale decisions with respect to individual corporate credits. The Investment Team
seeks to invest in a portfolio of short duration fixed-income securities in an
effort to limit the Fund’s exposure to interest rate risk. The Investment Team
seeks opportunities in selected emerging markets that it believes may benefit
from significant positive changes, such as political and economic reforms,
increases in capital inflows and investor confidence, and seeks to invest in
issuers in government and Corporate sectors it expects will benefit from such
developments and associated economic development and growth. The Investment
Team’s investment process focuses on global and emerging markets fundamentals
and considers factors such as liquidity and risk management at the macro level.
This approach utilizes the Investment Manager’s broad and current knowledge of
important investment areas in various Emerging Market Countries gained, in part,
through research, experience, long-standing relationships with reliable local
firms and, where appropriate, visits by its investment personnel to countries in
their respective regions of responsibility.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in bonds and other debt instruments
issued by Sovereign, Quasi-Sovereign or Corporate issuers of Emerging Market
Countries. The Fund’s investments in derivatives and other synthetic instruments
that have economic characteristics similar to the investments described above
will be counted toward satisfaction of the Fund’s 80% investment policy.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the bid/asked spread on purchases and sales of
securities, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may
result in higher taxes for you if your Fund shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Examples, may adversely affect the Fund’s investment performance.
111
Principal
Risks
It is possible to lose money on an investment in the
Fund. Among the principal risks of investing in the Fund, which could
adversely affect its net asset value, yield and total return, are (in
alphabetical order after the first seven risks) the following:
|
• |
|
Foreign Investment Risk
|
|
• |
|
Limited Operating
History Risk |
|
• |
|
Counterparty and Third
Party Risk |
|
• |
|
Currency Management
Strategies Risk |
|
• |
|
Focused Investment Risk
|
|
• |
|
Inflation/Deflation Risk
|
|
• |
|
Investments in Pooled
Vehicles Risk |
|
• |
|
Portfolio Turnover Risk
|
|
• |
|
Small and Mid-Sized
Companies Risk |
Please
see “SUMMARY OF PRINCIPAL RISKS” following this section for a description of
these and other risks of investing in the Fund.
112
ASHMORE
EMERGING MARKETS DEBT FUND
Investment
Objective
The
Fund seeks to maximize income, with a secondary objective of long-term capital
appreciation.
Principal
Investment Strategies
The
Fund seeks to achieve its objective by investing principally in debt instruments
of Sovereigns and Quasi-Sovereigns of Emerging Market Countries and EM
Supra-Nationals denominated principally in Hard Currencies (i.e., the U.S.
dollar or any currency of a nation in the G-7). The Fund has no restrictions on
individual security duration. The Fund observes a policy to normally invest at
least 80% of its net assets (plus borrowings made for investment purposes) in
bonds and other debt instruments of Sovereign or Quasi-Sovereign issuers of
Emerging Market Countries and EM Supra-Nationals.
Sovereigns are governments of Emerging Market
Countries. Quasi-Sovereigns are entities (including a local or regional
governmental body) that are 100% guaranteed by a Sovereign or 100% directly or
indirectly owned or controlled by a Sovereign. For the avoidance of doubt, a
province and a city are classified as Quasi-Sovereigns. EM Supra-Nationals are
Supra-National entities issuing debt instruments in a local currency of an
Emerging Market Country or providing exposure to an Emerging Market sovereign
credit risk. Emerging Market Country means any country included by the
International Monetary Fund in its list of Emerging and Developing Economies,
any country which is considered a low-income, lower-middle-income, or
upper-middle-income economy by the World Bank, and any country that is included
in an Emerging Market Index.
The
Fund may invest in debt instruments of all types, whether subordinated or
unsubordinated, secured or unsecured, quoted or unquoted, rated or unrated, or
floating rate or fixed rate. These may include, without limitation, bonds,
debentures, notes, convertible securities, commercial paper, loans and related
assignments and participations, bank certificates of deposit, fixed time
deposits, bankers’ acceptances, and money market instruments, including money
market funds denominated in U.S. dollars or other currencies. The Fund may
invest in companies of any market capitalization, and its allocations among
small-, mid-and large-capitalization issuers may vary significantly over time.
The
Fund may invest in obligations of any credit quality, including obligations that
are in default or that are subject to insolvency proceedings. The Fund may
invest without limitation in debt securities that are rated below investment
grade or that are unrated but judged by the Investment Manager to be of
comparable quality (i.e., “junk bonds”).
The
Fund may utilize various derivative instruments and related strategies,
including to gain exposure to one or more of the issuers referred to above or
other assets. In addition, the Fund’s investments in derivatives and other
synthetic instruments that have economic characteristics similar to such
investments will be counted toward satisfaction of the Fund’s 80% investment
policy. The Fund may utilize derivatives of all types and may invest in, without
limitation, call and put options (including options on futures contracts),
futures and forward contracts and swap agreements (including total return,
interest rate, and credit default swaps), credit-linked notes, structured notes
and other related instruments with respect to individual currencies, bonds, and
securities of any kind, indices and baskets of securities, interest rates and
currencies. The Fund may use derivatives for hedging or efficient portfolio
management purposes, but may also use them to increase the Fund’s investment
exposure beyond that which it could achieve by investing directly in more
conventional securities. The Fund may invest in currency-related transactions,
such as currency forward transactions (including deliverable and non-deliverable
forwards), currency futures transactions and currency options transactions, and
may also invest directly in foreign currencies, in each case for hedging or
other investment purposes.
The
Fund may invest in convertible debt instruments and equity securities related to
convertible securities or warrants the Fund holds or has held, as well as
acquire and hold equity securities, including warrants, resulting from debt
conversion or restructuring. The Fund may invest in the securities of other
investment companies, including exchange-traded funds (“ETFs”) and other pooled
vehicles, if the investment companies invest principally in the types of
investments in which the Fund may invest directly. The Fund may also lend its
portfolio securities, borrow money for investment and other purposes, and enter
into repurchase and reverse repurchase agreement transactions.
In
managing the Fund, the Investment Team employs a largely top-down, active and
value-driven investment approach in analyzing emerging markets and currencies.
The Fund’s investment approach includes an emphasis on the influence of politics
(both local and international). The Investment Team combines this top-down
approach with an analytically-driven, bottom-up approach to making purchase and
sale decisions with respect to individual corporate credits. The Investment Team
113
seeks
to invest in a portfolio of fixed-income securities in an effort to limit the
Fund’s exposure to interest rate risk. The Investment Team seeks opportunities
in selected emerging markets that it believes may benefit from significant
positive changes, such as political and economic reforms, increases in capital
inflows and investor confidence, and seeks to invest in issuers in government
and Corporate sectors it expects will benefit from such developments and
associated economic development and growth. The Investment Team’s investment
process focuses on global and emerging markets fundamentals and considers
factors such as liquidity and risk management at the macro level. This approach
utilizes the Investment Manager’s broad and current knowledge of important
investment areas in various Emerging Market Countries gained, in part, through
research, experience, long-standing relationships with reliable local firms and,
where appropriate, visits by its investment personnel to countries in their
respective regions of responsibility.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the bid/asked spread on purchases and sales of
securities, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may
result in higher taxes for you if your Fund shares are held in a taxable
account. These costs, which are not reflected in Annual Fund Operating Expenses
or in the Examples, may adversely affect the Fund’s investment performance.
Principal
Risks
It is possible to lose money on an investment in the
Fund. Among the principal risks of investing in the Fund, which could
adversely affect its net asset value, yield and total return, are (in
alphabetical order after the first six risks) the following:
|
• |
|
Foreign Investment Risk
|
|
• |
|
Limited Operating
History Risk |
|
• |
|
Counterparty and Third
Party Risk |
|
• |
|
Currency Management
Strategies Risk |
|
• |
|
Inflation/Deflation Risk
|
|
• |
|
Investments in Pooled
Vehicles Risk |
|
• |
|
Portfolio Turnover Risk
|
|
• |
|
Small and Mid-Sized
Companies Risk |
Please
see “SUMMARY OF PRINCIPAL RISKS” following this section for a description of
these and other risks of investing in the Fund.
114
ASHMORE
EMERGING MARKETS CORPORATE INCOME ESG FUND
Investment
Objective
The
Fund seeks to maximize total return.
Principal
Investment Strategies
The Fund seeks to achieve its objective by
investing principally in debt instruments of Corporate issuers (as defined
below), which may be denominated principally in Hard Currencies (i.e., the U.S.
dollar or any currency of a nation in the G-7), focusing on issuers that the
Investment Manager believes satisfy the ESG Criteria (as described below). A Corporate issuer is an issuer located in an
Emerging Market Country or an issuer deriving at least 50% of its revenues or
profits from goods produced or sold, investments made, or services performed in
one or more Emerging Market Countries or that has at least 50% of its assets in
one or more Emerging Market Countries. For these purposes, Corporate issuers do
not include Sovereigns or governmental agency issuers, but may include corporate
or other business entities in which a Sovereign or governmental agency or entity
may have, indirectly or directly, an interest, including a majority or greater
ownership interest (e.g., CITIC, Qatar Telecom). Emerging Market Country means
any country included by the International Monetary Fund in its list of Emerging
and Developing Economies, any country which is considered a low-income,
lower-middle-income, or upper-middle-income economy by the World Bank, and any
country that is included in an Emerging Market Index.
The
Investment Manager incorporates environmental, social and corporate governance
risk considerations into issuer analysis and uses its ESG Scoring Process (as
defined below) to help identify what it believes to be high quality companies
with strong performance or potential when measured against the ESG Criteria. The
Investment Manager looks at the relevant issuer’s sustainability by assessing
the strength and enduring nature of an issuer’s competitive advantages, which
are supported by long term planning and investment. Issuers that score poorly
during the ESG Scoring Process are excluded from the list of potential
investments.
The
Investment Manager defines and assesses ESG Criteria on the basis of an issuer’s
performance against the following metrics:
|
• |
|
Environment: Global and local impact,
greenhouse gas emissions, water and waste management, incidents of
environmental pollution, energy management and use of green energy,
policies and innovations to limit negative impact.
|
|
• |
|
Social: Employee diversity and inclusion,
customer welfare, human rights, community relations, labour practices,
health and safety, supply chain management, materiality of philanthropy
spend, product quality and safety. |
|
• |
|
Governance: Governance structure,
transparency and disclosure, representation of minority interests, public
listing and reporting, management accessibility, key performance
indicators used to design long-term incentive schemes, policies and
strategies to mitigate the impact of ESG risks. |
ESG
Scoring Process means the scoring process of the Investment Manager whereby the
Investment Manager issues a score to each issuer, based on their historical and
current performance, taking into account the environmental, social or governance
risks that an issuer may present and the performance of each issuer against ESG
Criteria. Individual ESG criteria generally will be given equal weight. The
process relies on information drawn from a range of data sources, including data
from third party service providers, which is subject to change.
The
Fund seeks to avoid investing in issuers that the Adviser determines have
significant involvement (i.e., more than 10% of revenues) in the manufacture,
distribution or sale of fossil fuels or tobacco products and in gambling,
pornography or defense (including controversial weapons) industries, or other
issuers that engage in business practices that the Adviser determines to be
sub-standard from an ESG or sustainability perspective in relation to their
industry or sector.
The
Fund may invest in debt instruments of all types issued by Corporate issuers,
whether subordinated or unsubordinated, secured or unsecured, quoted or
unquoted, rated or unrated, or floating rate or fixed rate. These may include,
without limitation, bonds, debentures, notes, convertible securities, commercial
paper, loans and related assignments and participations, trade claims, bank
certificates of deposit, fixed time deposits, bankers’ acceptances, and money
market instruments, including money market funds denominated in U.S. dollars or
other currencies. The Fund may invest in companies of any market capitalization,
and its allocations among small-, mid- and large-capitalization issuers may vary
significantly over time.
115
The
Fund normally seeks to maintain a weighted average portfolio duration of between
2 and 10 years.
Although
the Fund may gain most of its investment exposure to Corporate issuers directly,
the Fund may utilize various derivative instruments and related strategies,
including exclusively, to gain exposure to one or more Corporate issuers or
other assets. The Fund may utilize derivatives of all types and may invest in,
without limitation, call and put options (including options on futures
contracts), futures and forward contracts (including contracts related to
currencies), and swap agreements (including total return, interest rate and
credit default swaps) and other related instruments with respect to individual
bonds and other securities, indices and baskets of securities, interest rates
and currencies, and credit-linked notes as part of its principal investment
strategies. The Fund expects to primarily use derivatives for hedging or
efficient portfolio management purposes, but may also use them to increase the
Fund’s investment exposure beyond that which it could achieve by investing
directly in more conventional securities. The Fund may also invest directly in
foreign currencies for hedging or other investment purposes.
The
Fund may invest in convertible debt instruments and equity securities related to
convertible securities or warrants the Fund holds or has held, as well as
acquire and hold equity securities, including warrants. The Fund may invest in
the securities of other investment companies, including exchange-traded funds
(“ETFs”) and other pooled vehicles, if the investment companies invest
principally in the types of investments in which the Fund may invest directly.
The Fund may also lend its portfolio securities, borrow money for investment and
other purposes, and enter into repurchase and reverse repurchase agreement
transactions.
The
Fund will not invest more than 25% of its net assets in any one Emerging Market
Country. In addition, the Fund will not invest more than 20% of its net assets
in investments denominated in currencies other than the U.S. dollar.
The
Fund may invest in obligations of any credit quality, including obligations that
are in default or that are subject to insolvency proceedings. The Fund may
invest without limitation in debt securities that are of below investment grade
or that are unrated but judged by the Investment Manager to be of comparable
quality (“junk bonds”).
The
Fund observes a policy to normally invest at least 80% of its net assets (plus
borrowings made for investment purposes) in bonds and other debt instruments of
Corporate issuers (as defined above) that the Investment Manager believes
satisfy the ESG Criteria (as described above). The Fund’s investments in
derivatives and other synthetic instruments that have economic characteristics
similar to these investments will be counted toward satisfaction of the Fund’s
80% investment policy.
In
managing the Fund, the Investment Manager’s fixed income and asset allocation
investment committee (the “Investment Committee”), together with the relevant
portfolio managers (together with the Investment Committee, the “Investment
Team”), employs a largely top-down, active and value-driven investment approach
in analyzing emerging markets and currencies. The Fund’s investment approach
includes an emphasis on the influence of politics (both local and
international). The Investment Team combines its top-down approach with an
analytically driven, bottom-up approach to making purchase and sale decisions
with respect to individual corporate credits. The Investment Team seeks
opportunities in selected emerging markets that it believes may benefit from
significant positive changes, such as political and economic reforms, increases
in capital inflows and investor confidence, and seeks to invest in issuers in
Corporate sectors it expects will benefit from such developments and associated
economic development and growth. The Investment Team’s investment process
focuses on global and emerging markets fundamentals and considers factors such
as liquidity and risk management at the macro level. The Investment Team
utilizes the Investment Manager’s broad and current knowledge of important
investment areas in various Emerging Market Countries gained, in part, through
research, experience, long-standing relationships with reliable local firms and,
where appropriate, visits by its investment personnel to countries in their
respective regions of responsibility.
In
response to adverse market, economic, political or other conditions, the Fund
may deviate from its principal strategies by making temporary investments of
some or all of its assets in various instruments, including short-term,
high-quality fixed income securities denominated in any currency, cash, cash
equivalents, money market funds, and other similar funds. The Fund may not
achieve its investment objective when it does so. The Fund may also invest a
portion of its assets in such investments and instruments on a short term or
temporary basis to manage its cash positions or otherwise manage the Fund
efficiently.
The
Investment Manager may engage in active and frequent trading of the Fund’s
portfolio securities to achieve the Fund’s investment objective. The Fund may
pay transaction costs, such as the bid/asked spread on purchases and sales of
securities, when it buys and sells securities (or “turns over” its portfolio). A
higher portfolio turnover rate may indicate higher
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transaction
costs and may result in higher taxes for you if your Fund shares are held in a
taxable account. These costs, which are not reflected in Annual Fund Operating
Expenses or in the Examples, may adversely affect the Fund’s investment
performance.
Principal
Risks
It is possible to lose money on an investment in the
Fund. Among the principal risks of investing in the Fund, which could
adversely affect its net asset value, yield and total return, are (in
alphabetical order after the first nine risks) the following:
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Foreign Investment Risk
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Limited Operating
History Risk |
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Counterparty and Third
Party Risk |
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Convertible Securities
Risk |
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Currency Management
Strategies Risk |
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Focused Investment Risk
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Inflation/Deflation Risk
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Portfolio Turnover Risk
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Small and Mid-Sized
Companies Risk |
Please
see “SUMMARY OF PRINCIPAL RISKS” following this section for a description of
these and other risks of investing in the Fund.
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SUMMARY
OF PRINCIPAL RISKS
The
value of your investment in a Fund changes with the values of that Fund’s
investments. Many factors can affect those values. The factors that are most
likely to have a material effect on a particular Fund’s portfolio as a whole are
called “principal risks.” The summary section of this Prospectus indicates which
of the following risks are considered “principal risks” of each Fund; however,
each of the risks described below are applicable to each Fund to some degree.
It is possible to lose part or all of your money
on an investment in the Funds.
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Banking Industry Risk. Investments in
banking industry stocks, as compared to other industries in general, may
be considered to be more volatile or riskier due to a number of factors
including more extensive government regulation that may reduce profit
potential for banks compared to other entities. Financial services
institutions are often subject to extensive governmental regulation and,
recently, government intervention and the potential for additional
regulation, which may adversely affect the scope of their activities, the
prices they can charge and the amount of capital they must maintain. The
oversight of, and regulations applicable to, companies in the banking
industry in frontier and emerging markets may be ineffective and
underdeveloped relative to more developed markets. The banking industry is
particularly sensitive to changes in economic conditions, such as
recessions and fluctuations in interest rates, and the values of banking
industry participants will be sensitive to various factors, such as the
credit quality of their debtors and counterparties. The credit quality of
the debtors and counterparties of banks in frontier and emerging markets
may be significantly lower than that of banks in other more developed
markets, leading to such banks incurring greater losses than banks in more
developed markets. Profitability is largely dependent on the availability
and cost of capital funds, and can fluctuate significantly when interest
rates change or due to increased competition. Banking industry
participants in frontier and emerging markets may have less access to
capital and may be significantly less capitalized than banks in more
developed markets, leading them to be more likely to fail under adverse
economic conditions. In addition, deterioration of the credit markets
generally may cause an adverse impact in a broad range of markets,
including U.S. and international credit and interbank money markets
generally, thereby affecting a wide range of financial institutions and
markets. There is a risk that banking industry participants in frontier
and emerging markets may be nationalized or forced to merge, take
additional capital, or undergo other corporate actions on terms that are
unfavorable to holders of the participant’s stock and/or debt. A number of
large financial institutions have failed, merged with stronger
institutions or have had significant government infusions of capital.
These situations have created, and may continue to create, instability in
the financial markets and have caused certain financial companies to incur
large losses. Some financial institutions experienced declines in the
valuations of their assets and securities or even ceased operations. The
impact of recent or future regulation in various countries on any
individual bank or on the sector as a whole cannot be predicted. In
addition, the banking industry of frontier and emerging markets can be
considered riskier than the U.S. banking industry.
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Bank Loans Risk. The Funds may invest in
bank loans and participations. Risks associated with these obligations
include, but are not limited to: inadequate perfection of the security
interest granted under the loan documents; inadequate collateral; the
possible invalidation or compromise of a loan transaction as a fraudulent
conveyance or preference under relevant creditors’ rights laws; the
validity and seniority of bank claims and guarantees; environmental
liability that may arise with respect to collateral securing the
obligations; adverse consequences resulting from participating in such
instruments with other institutions with lower credit quality; long and
less certain settlement periods; limitations on the ability of the Funds
to directly enforce their rights with respect to participations and
illiquidity in the market for the resale of such loans. Leading financial
institutions often act as agent for a broader group of lenders, generally
referred to as a syndicate. The syndicate’s agent arranges the loan, holds
collateral and accepts payments of principal and interest. If the agent
develops financial problems, the Funds may not recover their investment or
recovery may be delayed. By investing in a loan, the Funds may become a
member of the syndicate. |
If
a loan is acquired through an assignment, the Funds may not be able to
unilaterally enforce all rights and remedies under the loan and with regard to
any associated collateral. If a loan is acquired through a participation, the
Funds generally will have no right to enforce compliance by the borrower with
the terms of the loan agreement against the borrower, and the Funds may not
directly benefit from the collateral supporting the debt obligation in which
they have purchased the participation. As a result, the Funds will be exposed to
the credit risk of both the borrower and the institution selling the
participation.
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Convertible Securities Risk. Convertible
securities are fixed income securities, preferred stocks or other
securities that normally pay interest or dividends and are convertible
into or exercisable for common stock of the issuer (or cash or securities
of equivalent value) at either a stated price or a stated rate (the
“conversion price”). To the extent |
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the
market price of the underlying stock approaches or is greater than the
conversion price, the convertible security’s market value tends to
correlate with the market price of the underlying stock and will be
subject to the risks affecting equity securities in general to a greater
degree. See “Equity Securities Risk” below. To the extent the market price
of the underlying stock is below the conversion price, the value of the
convertible security tends to be influenced more by the yield of the
convertible security. See “Interest Rate Risk” below.
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Convertible
securities generally offer lower interest or dividend yields than
non-convertible fixed income or other securities of similar quality. In the
event of a liquidation of the issuing company, holders of convertible securities
would generally be paid before the company’s common stockholders but after
holders of any senior debt obligations of the company. Consequently, the
issuer’s convertible securities generally entail less risk than its common stock
but more risk than its debt obligations. Also, a Fund may be forced to convert a
security before it would otherwise choose, which may decrease the Fund’s return.
The Funds may also invest in synthetic convertible securities, which involve the
combination of separate securities that possess the two principal
characteristics of a traditional convertible security (i.e., an income-producing component and a
right to acquire an equity security). Synthetic convertible securities are often
achieved, in part, through investments in warrants or options to buy common
stock (or options on a stock index), and therefore are subject to the risks
associated with derivatives. See “Derivatives Risk” below.
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Counterparty and Third Party Risk.
Transactions involving a counterparty to a derivative contract,
repurchase agreement, reverse repurchase agreement, or other financial
instrument or transaction, or to a third party responsible for servicing
the instrument or transaction, are subject to the credit risk of the
counterparty or third party, and to the counterparty’s or third party’s
ability to perform in accordance with the terms of the transaction. This
is the risk that the issuer, guarantor, counterparty or third party to a
particular instrument, investment or transaction becomes unable or
unwilling to make timely principal, interest, or settlement payments or
otherwise to honor its obligations. This risk is particularly acute in
environments (like those experienced recently) in which financial services
firms are exposed to systemic risks. |
If
a counterparty defaults, a Fund may have contractual remedies, but the Fund may
be unable to enforce them. The obligations of counterparties are subject to
bankruptcy, insolvency, and other laws affecting the rights and remedies of
creditors. If a counterparty defaults, a Fund may have to participate in legal
proceedings involving the counterparty. This could increase the Fund’s operating
expenses and decrease its net asset value. If a counterparty’s obligation to a
Fund is not collateralized, then the Fund is essentially an unsecured creditor
of the counterparty. Counterparty risk is still present even if a counterparty’s
obligations are secured by collateral because, for example, the Fund’s interest
in collateral may not be perfected or additional collateral may not be promptly
posted as required.
The
Funds are also subject to counterparty risk to the extent they execute a
significant portion of their securities transactions through a single broker,
dealer, or counterparty to a derivatives transaction, such as a futures
commission merchant. If the broker, dealer or other counterparty fails to meet
its contractual obligations, goes bankrupt, or otherwise experiences a business
interruption, the Funds could miss investment opportunities or be unable to
dispose of investments they would prefer to sell at favorable times or prices,
resulting in losses for the Funds.
Derivatives
transactions, especially over-the-counter derivatives, involve significant
counterparty risk. Those derivative instruments involving high amounts of
counterparty risk, include, among others, swaps (including interest rate swaps,
total return swaps and credit default swaps), structured notes, forward currency
contracts, and over-the-counter options contracts.
Regulatory
changes also may affect counterparty risk. For example, new regulatory
requirements may limit the ability of a Fund to protect its interests in the
event of an insolvency of a derivatives counterparty. In the event of a
counterparty’s (or its affiliate’s) insolvency, a Fund’s ability to exercise
remedies, such as the termination of transactions, netting of obligations and
realization on collateral, could be stayed or eliminated under new special
resolution regimes adopted in the United States, the EU and various other
jurisdictions. Such regimes provide government authorities with broad authority
to intervene when a financial institution is experiencing financial difficulty.
In particular, with respect to counterparties who are subject to such
proceedings in the EU, the liabilities of such counterparties to a Fund could be
reduced, eliminated, or converted to equity in such counterparties (sometimes
referred to as a “bail in”).
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Credit Risk. A Fund could lose money if
the issuer or counterparty is unable or unwilling to meet its financial
obligations, and the lack of ability, or perceived lack of ability, of the
issuer to make timely payments of interest |
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and/or
principal will negatively affect the value of the security or instrument.
It is possible that the ability of an issuer to meet its obligations will
decline substantially during the period when a Fund owns securities of
that issuer, or that the issuer will default on its obligations. Credit
risk is generally greater for investments issued at less than their face
values and which are required to make interest payments only at maturity
rather than at intervals during the life of the investment. Credit risk is
particularly pronounced for below investment grade securities (also known
as “high yield” or “junk” bonds). See “High Yield Risk.”
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The
obligations of issuers are subject to bankruptcy, insolvency, and other laws
affecting the rights and remedies of creditors. If an issuer defaults, a Fund
may have to participate in legal proceedings involving the issuer. This could
increase the Fund’s operating expenses and decrease its net asset value.
Credit
rating agencies base their ratings largely on the issuer’s historical financial
condition and the rating agencies’ investment analysis at the time of rating.
The rating assigned to any particular investment does not necessarily reflect
the issuer’s current financial condition, and does not reflect an assessment of
an investment’s volatility or liquidity. Although the Investment Manager may in
its sole discretion consider credit ratings in making investment decisions, the
Investment Manager may, as it deems appropriate to attain the investment
objective of the Fund, perform its own investment analysis and may not rely only
on ratings assigned by the rating agencies. The Investment Manager’s success in
achieving a Fund’s investment objective may depend more on the Investment
Manager’s credit analysis when the Fund buys lower quality instruments than when
the Fund buys higher quality instruments.
Derivatives
transactions, especially over-the-counter derivatives, involve significant
credit risk. Those derivative instruments involving high amounts of credit risk,
include, among others, swaps (including interest rate swaps, total return swaps
and credit default swaps), structured notes, forward currency contracts, and
over-the-counter options contracts.
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Currency Management Strategies Risk.
Currency management strategies, including forward currency
contracts and cross-hedging, may substantially change a Fund’s exposure to
currency exchange rates and could result in losses to the Fund if
currencies do not perform as the Investment Manager expects. In addition,
currency management strategies, to the extent that such strategies reduce
a Fund’s exposure to currency risks, may also reduce the Fund’s ability to
benefit from favorable changes in currency exchange rates. There is no
assurance that the Investment Manager’s use of currency management
strategies will benefit the Fund or that they will be, or can be, used at
appropriate times. Furthermore, there may not be a perfect correlation
between the amount of exposure to a particular currency and the amount of
securities in the portfolio denominated in that currency. Currency markets
are generally less regulated than securities markets.
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Derivatives
transactions, especially forward currency contracts and currency-related futures
contracts and swap agreements, may involve significant amounts of currency
management strategies risk. A Fund that may utilize these types of instruments
to a significant extent will be especially subject to currency management
strategies risk.
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Currency Risk. The Funds’ shares are
priced (purchased and redeemed) in U.S. dollars and the distributions paid
by the Funds are paid in U.S. dollars. However, a substantial portion of a
Fund’s assets may be denominated in foreign (non-U.S.) currencies and
income received by the Funds from many of their investments may be paid in
foreign currencies. Foreign currencies may decline in value relative to
the U.S. dollar and adversely affect the value of a Fund’s investments in
foreign currencies, securities denominated in foreign currencies,
derivatives that provide exposure to foreign currencies, and a Fund’s
income available for distribution. The values of foreign currencies,
securities denominated in foreign currencies or derivatives that provide
exposure to foreign currencies may be adversely affected by currency
exchange rates, currency exchange control regulations, foreign withholding
or other taxes, restrictions or prohibitions on the repatriation of
foreign currencies, changes in supply and demand in the currency exchange
markets, actual or perceived changes in interest rates, intervention (or
the failure to intervene) by U.S. or foreign governments, central banks,
or supranational agencies such as the International Monetary Fund, and
currency controls or other political and economic developments in the U.S.
or abroad. The local emerging market currencies in which a Fund may be
invested from time to time may experience substantially greater volatility
against the U.S. dollar than the major convertible currencies of developed
countries. To the extent a Fund has invested in debt instruments of
companies located or doing business in foreign markets and that have
issued debt instruments denominated in U.S. dollars or another non-local
currency, fluctuations in currency exchange rates could also negatively
impact such investments. For example, increases in the value of the U.S.
dollar relative to its value at the time the debt was issued can increase
the costs of interest and repayment to the issuer and could result in
defaults on an issuer’s debt obligations. |
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Officials
in foreign countries may from time to time take actions in respect of their
currencies which could significantly affect the value of a Fund’s assets
denominated in those currencies or the liquidity of such investments. For
example, a foreign government may unilaterally devalue its currency against
other currencies, which would typically have the effect of reducing the U.S.
dollar value of investments denominated in that currency. A foreign government
may also limit the convertibility or repatriation of its currency or assets
denominated in its currency, which would adversely affect the U.S. dollar value
and liquidity of investments denominated in that currency. In addition, although
at times most of a Fund’s income may be received or realized in these
currencies, the Fund will be required to compute and distribute its income in
U.S. dollars. As a result, if the exchange rate for any such currency declines
after the Fund’s income has been earned and translated into U.S. dollars but
before payment to shareholders, the Fund could be required to liquidate
portfolio securities to make such distributions. Similarly, if a Fund incurs an
expense in U.S. dollars and the exchange rate declines before the expense is
paid, the Fund would have to convert a greater amount to U.S. dollars to pay for
the expense at that time than it would have had to convert at the time the Fund
incurred the expense.
Some
of the local currencies in which the Fund may invest are neither freely
convertible into one of the major currencies nor internationally traded. The
local currencies may be convertible into other currencies only inside the
relevant emerging market where the limited availability of such other currencies
may tend to inflate their values relative to the local currency in question.
Such internal exchange markets can therefore be said to be neither liquid nor
competitive. In addition, many of the currencies of Emerging Market Countries in
which a Fund may invest have experienced steady devaluation relative to freely
convertible currencies.
The
Investment Manager may, but is not required to, attempt to mitigate (or “hedge”)
the risks associated with currency fluctuations by entering into forward,
futures and options or other contracts to purchase or sell the currency of
denomination of any investment held by a Fund and any other currencies held by
the Fund. Such contracts may not be available on favorable terms or in all of
the currencies in which a Fund may invest from time to time. In the case of
hedging positions, currency risk includes the risk that the currency to which
the Fund has obtained exposure declines in value relative to the foreign
currency being hedged. In such event, the Fund may realize a loss on the hedging
instrument at the same time the Fund is realizing a loss on the currency being
hedged. There is no assurance that any such hedging strategies will be available
or will be used by a Fund or, if used, that they will be successful.
The
Funds may use derivatives to acquire positions in currencies whose value the
Investment Manager expects to correlate with the value of currencies the Fund
owns, currencies the Investment Manager wants the Fund to own, or currencies the
Fund is exposed to through its investments. If the exchange rates of the
currencies involved do not move as expected, a Fund could lose money on its
holdings of a particular currency and also lose money on the derivative. Many of
the Funds also take overweighted or underweighted currency positions and/or
alter the currency exposure of the securities in which they have invested. As a
result, their currency exposure may differ (in some cases significantly) from
the currency exposure of their security investments.
Derivatives
transactions, especially forward currency contracts and currency-related futures
contracts and swap agreements, may involve significant amounts of currency risk.
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Derivatives Risk. Investing in derivative
instruments may be considered risky and involves correlation,
documentation, counterparty, interest rate, leverage, liquidity, market,
management, and valuation risks and the risk of losing more than the
principal amount invested. |
Derivatives
are financial contracts whose value depends on, or is derived from, the value of
an underlying asset, reference rate or index (or relationship between two
indexes). A Fund may invest in a variety of derivative instruments for
investment or risk management purposes. A Fund may use derivatives to gain
exposure to securities markets in which it may invest. A Fund may also use
derivatives to add leverage to its portfolio. The values of the derivatives may
be highly volatile. Some derivatives have the potential for unlimited loss,
regardless of the size of the initial investment. Derivative instruments
include, but are not limited to, option contracts (including options on futures
contracts), participation notes, futures and forward contracts, swap agreements
(including total return, interest rate and credit-default swaps) and short
sales. A Fund may also have exposure to derivatives, such as interest rate or
credit-default swaps, through investment in credit-linked trust certificates and
other securities issued by special purpose or structured vehicles. A Fund’s use
of derivative instruments involves risks different from, and possibly greater
than, the risks associated with investing directly in securities and other
traditional investments. Derivatives are subject to a number of risks described
elsewhere in this Prospectus, such as currency risk, liquidity risk, interest
rate risk, issuer risk, credit risk, leverage risk, counterparty risk,
management risk and, if applicable, small and mid-sized companies risk. They
also involve the risk of mispricing or improper
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valuation,
the risk of ambiguous documentation and the risk that changes in the value of
the derivative may not correlate perfectly with the underlying asset, rate or
index. If a Fund invests in a derivative instrument, it could lose more than the
principal amount invested. Also, suitable derivative transactions may not be
available in all circumstances and there can be no assurance that a Fund will
engage in these transactions for investment exposure or to reduce exposure to
risks when that would be beneficial. A Fund may manage some of its derivative
positions by offsetting derivative positions against one another or against
other assets. To the extent offsetting positions do not behave in relation to
one another as expected, a Fund may perform as if it were leveraged. A Fund’s
use of derivatives also may affect the character and/or timing of income
received and increase the amount of or accelerate taxes payable by shareholders
of the Fund.
Many
derivative transactions are “over-the-counter” (not entered on an exchange or
contract market or held through a clearing house); as a result, the value of
such a derivative transaction will depend on the ability and willingness of the
Fund’s counterparty to perform its obligations under the transaction. See
“Over-the-Counter Risk.”
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Emerging Markets Risk. Investing in
emerging market securities and currencies entails all of the risks of
investing in foreign (non-U.S.) investments (see “Foreign Investment
Risk”), but to a heightened degree. Compared to foreign developed markets,
investing in emerging markets may involve heightened volatility, greater
political, regulatory, legal and economic uncertainties, less liquidity,
dependence on particular commodities or international aid, high levels of
inflation, greater custody risk, and certain special risks associated with
smaller companies. Additional risks of emerging market securities may
include: greater political uncertainty and instability (including the risk
of war or natural disaster); increased risk of nationalization,
expropriation, or other confiscation of assets of issuers to which a Fund
is exposed; increased risk of embargoes or economic sanctions on a
country, sector or issuer; greater risk of default (by both government and
private issuers); more substantial governmental involvement in the
economy; less governmental supervision and regulation; differences in, or
lack of, auditing and financial reporting standards, which may result in
unavailability of material information about issuers; less developed legal
systems; inability to purchase and sell investments or otherwise settle
security or derivative transactions (i.e., a market freeze);
unavailability of currency hedging techniques; slower clearance and
settlement; difficulties in obtaining and/or enforcing legal judgments;
and significantly smaller market capitalizations of issuers. Stress
testing is one of the measures considered as part of the product design
and is used to estimate the potential impact to a Fund’s mark to market
performance in a period of market stress. By its nature, these estimates
typically rely on judgement and modelling assumptions and given the range
of potential outcomes in the future, the actual impact to a Fund’s
performance can be significantly greater or smaller. Based on stress
testing results, the Fund may incur significant mark to market adverse
performance and in extreme circumstances this could result in a total loss
of your investment. Because of the risks involved, investment in the Fund
is only suitable for investors who have experience of volatile products,
understand the risks involved and are able to bear the loss of a
substantial portion or even all of the money they invest in the Fund. As a
result of these risks investors are strongly advised to seek independent
professional advice on the implications of investing in the Fund.
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Certain
Emerging Market Countries may impose restrictions on foreign investment and
repatriation of investment income and capital. In addition, foreign investors,
including the Funds, may be required to register the proceeds of sales, and
future economic or political crises could lead to price controls, forced
mergers, nationalization or the creation of government monopolies. The
currencies of Emerging Market Countries may experience significant declines
against the U.S. dollar, and devaluation may occur subsequent to investments in
these currencies by a Fund. See “Currency Risk.” Inflation and rapid
fluctuations in inflation rates have had, and may continue to have, negative
effects on the economies and securities markets of certain Emerging Market
Countries. Emerging market securities may trade in more limited volume than
comparable securities in developed foreign markets.
Emerging
market securities may have different clearance and settlement procedures, which
may be unable to keep pace with the volume of securities transactions or
otherwise make it difficult to engage in such transactions. Settlement problems
may cause a Fund to miss attractive investment opportunities, hold a portion of
its assets in cash pending investment, or be delayed in disposing of a portfolio
security, all of which would negatively affect a Fund’s performance.
Custody
services in many Emerging Market Countries remain undeveloped and, although a
Fund’s custodian and the Investment Manager will seek to establish control
mechanisms, including the selection of sub-custodians, nominees or agents
(“Sub-custodians”) to register securities on behalf of a Fund and perform
regular checks of entries on relevant securities registers to ensure that the
Fund’s interests continue to be recorded, there is a transaction and custody
risk of dealing in securities of Emerging Market Countries.
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Although
a Fund’s custodian will seek to satisfy itself that each Sub-custodian selected
to provide for the safe custody or control of a Fund’s investments is fit and
proper and that arrangements are in place to safeguard the interests of
shareholders of a Fund, under the Fund’s agreement with the custodian, the
custodian will only be liable for certain limited acts of the Sub-custodian
(e.g., fraud). The Fund may therefore have a potential exposure on the default
of any Sub-custodian and, as a result, many of the protections which would
normally be provided to an investment fund by a trustee, custodian or
Sub-custodian will not be available to a Fund.
It
must be appreciated that the Fund will be investing in Emerging Market Countries
where the current law and market practice carry fewer safeguards than in more
developed markets, including the protection of client securities against claims
from general creditors in the event of the insolvency of an agent selected to
hold securities on behalf of a Fund and that the custodian, the Investment
Manager and a Fund’s administrator have assumed no liability for losses
resulting from a Fund acting in accordance with such practice.
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Equity Securities Risk. Equity securities
represent an ownership interest, or the right to acquire an ownership
interest, in an issuer. Equity securities may take the form of shares of
common stock of a corporation, membership interests in a limited liability
company, limited partnership interests, or other forms of ownership
interests. Equity securities also include, among other things, preferred
stocks, convertible securities and warrants. The value of a company’s
equity securities may fall as a result of factors directly relating to
that company, such as decisions made by its management or lower demand for
the company’s products or services. The value of an equity security may
also fall because of factors affecting not just the company, but also
companies in the same industry or in a number of different industries,
such as increases in production costs. The value of a company’s equity
securities may also be affected by changes in financial markets that are
relatively unrelated to the company or its industry, such as changes in
interest rates or currency exchange rates or adverse circumstances
involving the credit markets. In addition, because a company’s equity
securities rank junior in priority to the interests of bond holders and
other creditors, a company’s equity securities will usually react more
strongly than its bonds and other debt to actual or perceived changes in
the company’s financial condition or prospects. To the extent a Fund
invests in equity-related instruments it will also be subject to these
risks. |
A
Fund may invest in equity securities of companies that its Investment Manager
believes will experience relatively rapid earnings growth (“growth securities”)
or that its Investment Manager believes are selling at a price lower than their
true value (“value securities”). Growth securities typically trade at higher
multiples of current earnings than other securities. Therefore, the value of
growth securities may be more sensitive to changes in current or expected
earnings than the value of other securities. Companies that issue value
securities may have experienced adverse business developments or may be subject
to special risks that have caused their securities to be out of favor. If the
Investment Manager’s assessment of a company’s prospects is wrong, or if the
market does not recognize the value of the company, the price of its securities
may decline or may not approach the value that the Investment Manager
anticipates.
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ESG Criteria Risk. The ESG Criteria
applied by a Fund may cause a Fund to perform differently—positively or
negatively—when compared to funds that do not take into account similar
characteristics. The application of the ESG Criteria may cause a Fund to
sell or avoid stocks that subsequently perform well. There is a risk that
the issuers identified by the ESG Criteria may not operate sustainably or
within such criteria as expected. Furthermore, different interpretations
of what it means for an issuer to be sustainable or to have positive ESG
metrics may be applied by market participants. There are no universally
agreed upon objective standards for assessing ESG Criteria for companies.
ESG Criteria tend to have subjective characteristics, can be difficult to
analyze, and frequently involve a balancing of a company’s business plans,
objectives, actual conduct and other criteria. ESG Criteria can vary over
different periods and can evolve over time. They also may be difficult to
apply consistently across regions, countries, industries or sectors. For
these reasons, ESG standards may be aspirational and tend to be stated
broadly and applied flexibly. |
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Financial Services Risk. Investments in
issuers in the financial services sector are subject to various risks
affecting financial services companies and the financial services sector
generally. The values of investments in the financial services sector are
particularly sensitive to changes in economic conditions, such as
recessions and fluctuations in interest rates. Financial services
companies may be exposed to leverage, which could magnify investment
losses under adverse market conditions. Instability in the financial
markets has led many governments, including the U.S. government, to take a
number of unprecedented actions designed to support certain financial
institutions and segments of the financial markets that have experienced
extreme volatility and, in some cases, a lack of liquidity. In some cases,
governmental regulation or intervention can affect the capital structure
of an issuer in the financial services sector, which can materially and
adversely affect the values of existing investments in the
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issuer.
Government regulation or intervention may also limit the types and amounts
of loans and other commitments financial services companies make, the
types of investments and trading they can engage in on their own behalf
and the interest rates and fees they charge, each of which can have a
materially adverse effect on the financial condition of an issuer in the
financial services sector. The impact of recent or future regulation in
various countries on any individual financial institution or on the sector
as a whole cannot be predicted. Investments in the financial services
sector are also subject to the risk that unexpected market, economic,
political, regulatory or other events might lead to a decline in the value
of most or all companies in the financial services sector. In addition,
the financial services sector of emerging markets can be considered
riskier than the U.S. financial services sector.
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Focused Investment Risk. Focusing a
Fund’s investments in a small number of issuers, industries or foreign
currencies increases risk. A Fund that invests a significant portion of
its assets in a relatively small number of issuers, industries or foreign
currencies may involve more risk because changes in the value of a single
security or the impact of a single economic, political or regulatory
occurrence may have a greater adverse impact on the Fund’s net asset
value. |
A
Fund may be subject to increased risk to the extent it focuses its investments
in securities denominated in a particular foreign currency. Similarly, if a Fund
focuses its investments in a certain type of issuer, it will be particularly
vulnerable to events affecting such type of issuer. Also, a Fund may have
greater risk to the extent it invests a substantial portion of its assets in a
group of related industries (or “sectors”). The industries comprising any
particular sector and investments in a particular foreign currency may share
common characteristics, are often subject to similar business risks and
regulatory burdens, and react similarly to economic, market, political or other
developments.
Furthermore,
certain issuers and industries may be adversely affected by the impacts of
climate change on the demand for and the development of goods and services and
related production costs, and the impacts of legislation, regulation and
international accords related to climate change, as well as any indirect
consequences of regulation or business trends driven by climate change.
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Foreign Investment Risk. Investments in
foreign (non-U.S.) issuers, directly or through use of depositary
receipts, may be negatively affected by adverse political, regulatory,
economic, market or other developments affecting issuers located in
foreign countries, currency exchange rates or regulations, or foreign
withholding or other taxes, and investing in foreign securities may result
in a Fund experiencing more rapid and extreme changes in value than a fund
that invests exclusively in securities of U.S. issuers.
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Investing
in foreign securities involves a possibility of nationalization or expropriation
of assets, confiscatory taxation, embargoes or economic sanctions on a country,
sector or issuer, political or financial instability, and diplomatic
developments that could affect the value of a Fund’s investments. In particular,
sanctions, or the threat of sanctions, may cause volatility in regional and
global markets and may negatively impact the performance of various sectors and
industries, as well as companies in other countries, which could have a negative
effect on the performance of such Fund. In addition, there may be less
information publicly available about a foreign issuer than about a U.S. issuer,
and foreign issuers are not generally subject to accounting, auditing, and
financial reporting standards and practices comparable to those in the United
States. The Public Company Accounting Oversight Board, which regulates auditors
of U.S. public companies, is unable to inspect audit work papers in certain
foreign countries. Investors in foreign countries often have limited rights and
few practical remedies to pursue shareholder claims, including class actions or
fraud claims, and the ability of the U.S. Securities and Exchange Commission,
the U.S. Department of Justice and other authorities to bring and enforce
actions against foreign issuers or foreign persons is limited. The securities of
some foreign issuers are less liquid and at times more volatile than securities
of comparable U.S. issuers. Foreign brokerage commissions and other fees are
also generally higher than in the United States.
Foreign
settlement procedures and trade regulations may involve certain risks (such as
delay in payment or delivery of securities or in the recovery of the Fund’s
assets held abroad) and expenses not present in the settlement of domestic
investments. The costs of investing in foreign countries are frequently higher
than the costs of investing in the United States.
In
addition, legal remedies available to investors in certain foreign countries may
be more limited than those available to investors in the United States or in
other foreign countries. The willingness and ability of foreign governmental
entities to pay principal and interest on government securities depends on
various economic factors, including the issuer’s balance of payments, overall
debt level, and cash-flow considerations related to the availability of tax or
other revenues to satisfy the issuer’s obligations. If a foreign governmental
entity defaults on
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its
obligations on the securities, the Funds may have limited recourse available to
it. The laws of some foreign countries may limit a Fund’s ability to invest in
securities of certain issuers located in those countries.
Special
tax considerations apply to a Fund’s investments in foreign securities. Gross
proceeds received by a Fund from sources within foreign countries may be reduced
by withholding and other taxes imposed by such countries. Tax conventions
between certain countries and the United States may reduce or eliminate such
taxes. Any such taxes paid by a Fund will reduce its income available for
distribution to shareholders.
In
addition, the Fund’s investments in foreign securities or foreign currencies may
increase or accelerate the Fund’s recognition of ordinary income and may affect
the timing or character of the Fund’s distributions to shareholders.
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Frontier Markets Risk. Investing in
frontier market securities and currencies entails all of the risks of
investing in foreign (non-U.S.) investments (see “Foreign Investment
Risk”), but to a heightened degree. Compared to foreign developed and
emerging markets, investing in frontier markets may involve heightened
volatility, greater political, regulatory, legal and economic
uncertainties, less liquidity, dependence on particular commodities or
international aid, high levels of inflation, and greater custody risk.
Additional risks of emerging market securities may include: greater
political instability (including the risk of war or natural disaster);
increased risk of nationalization, expropriation, or other confiscation of
assets of issuers to which the Fund is exposed; increased risk of
embargoes or economic sanctions on a country, sector or issuer; greater
risk of default (by both government and private issuers); more substantial
governmental involvement in the economy; less governmental supervision and
regulation; differences in, or lack of, auditing and financial reporting
standards, which may result in unavailability of material information
about issuers; less developed legal systems; inability to purchase and
sell investments or otherwise settle security or derivative transactions
(i.e., a market freeze); unavailability of currency hedging techniques;
slower clearance and settlement; difficulties in obtaining and/or
enforcing legal judgments; and significantly smaller market
capitalizations of issuers. In particular, sanctions, or the threat of
sanctions, may cause volatility in regional and global markets and may
negatively impact the performance of various sectors and industries, as
well as companies in other countries, which could have a negative effect
on the performance of such Fund. |
Certain
Frontier Market Countries may impose restrictions on foreign investment and
repatriation of investment income and capital. In addition, foreign investors,
including the Fund, may be required to register the proceeds of sales, and
future economic or political crises could lead to price controls, forced
mergers, nationalization or the creation of government monopolies. The
currencies of Frontier Market Countries may experience significant declines
against the U.S. dollar, and devaluation may occur subsequent to investments in
these currencies by the Fund. See “Currency Risk.” Inflation and rapid
fluctuations in inflation rates have had, and may continue to have, negative
effects on the economies and securities markets of certain Frontier Market
Countries. Frontier market securities may trade in more limited volume than
comparable securities in foreign developed and emerging markets.
Frontier
market securities may have different clearance and settlement procedures, which
may be unable to keep pace with the volume of securities transactions or
otherwise make it difficult to engage in such transactions.
Settlement
problems may cause the Fund to miss attractive investment opportunities, hold a
portion of its assets in cash pending investment, or be delayed in disposing of
a portfolio security, all of which would negatively affect the Fund’s
performance.
Custody
services in many Frontier Market Countries remain undeveloped and, although the
Fund’s custodian will seek to establish control mechanisms, including the
selection of sub-custodians, nominees or agents (“Sub-custodians”) to register
securities on behalf of the Fund and perform regular checks of entries on
relevant securities registers to ensure that the Fund’s interests continue to be
recorded, there is significant transaction and custody risk in dealing in
securities of Frontier Market Countries. Under the Fund’s agreement with the
custodian, the custodian will only be liable for certain limited acts of the
Sub-custodian (e.g., fraud). The Fund may therefore have a potential exposure on
the default of any Sub-custodian.
The
laws and market practice of Frontier Market Countries carry fewer safeguards
than more developed markets, including, for example, the protection of client
securities against claims from general creditors in the event of the insolvency
of an agent selected to hold securities on behalf of the Fund and that the
custodian, the Investment Manager and the Fund’s administrator have assumed no
liability for losses resulting from the Fund acting in accordance with such
practice.
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Geographic Focus Risk. A Fund may be
particularly susceptible to economic, political or regulatory events
affecting particular countries or geographic regions to the extent the
Fund focuses its investments in such countries |
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or
regions. To the extent that a Fund invests a substantial amount of its
assets in a particular country or geographic region it will be subject to
higher levels of risk and volatility than other mutual funds that are more
geographically diversified because the Fund will generally have heightened
exposure to regional economic, political, regulatory or other risks
associated with that country or region. |
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High Yield Risk. Below investment grade
securities and unrated securities of similar credit quality (commonly
known as “high yield” securities or “junk bonds”) are subject to greater
levels of credit and liquidity risks than higher quality securities, and
are considered predominantly speculative with respect to the issuer’s
continuing ability to make principal and interest payments.
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Below
investment grade securities are those that are rated below Baa3 by Moody’s
Investors Service, Inc. (“Moody’s”) or below BBB- by either Standard &
Poor’s (“S&P”) or Fitch Investor Services, Inc. (“Fitch”) or an equivalent
rating agency or that are unrated and judged by the Investment Manager to be of
comparable quality. The debt instruments of many foreign governments, including
their agencies, sub-divisions and instrumentalities, are below investment grade.
This reflects a greater possibility that the issuers may be unable to make
timely payments of interest and principal and thus default. If this happens, or
is perceived as likely to happen, the values of those investments will usually
be more volatile and likely to fall. Lower-quality debt instruments usually have
a more limited market than higher-quality debt instruments, which may at times
make it difficult for a Fund to buy or sell certain debt instruments or to
establish their fair value. A default or expected default could also make it
difficult for a Fund to sell below investment grade investments at prices
approximating the values the Fund had previously placed on them.
During
periods of economic uncertainty and change, the market price of a Fund’s
investments in below investment grade securities may be particularly volatile.
Although offering the potential for higher investment returns, high yield
securities often are less liquid than higher quality securities, present a
greater risk of default and are more susceptible to real or perceived adverse
economic and competitive industry conditions. High yield securities are also
often subject to greater sensitivity to interest rate and economic changes and
may present valuation difficulties. The market price of these securities can
change suddenly and unexpectedly.
Among
the high yield securities in which a Fund may invest are debt instruments of
financially distressed issuers, including those that are in default or the
issuers of which are in bankruptcy. Investments in the securities of financially
distressed issuers involve substantial risks. These securities may present a
substantial risk of default or may be in default at the time of investment. A
Fund may incur additional expenses to the extent it is required to seek recovery
upon a default in the payment of principal or interest on its portfolio
holdings. In any reorganization or liquidation proceeding relating to an
investment, the Fund may lose its entire investment or may be required to accept
cash or securities with a value less than its original investment. Among the
risks inherent in investments in a troubled issuer is that information as to the
true financial condition of the issuer may frequently be difficult to obtain.
The Investment Manager’s judgments about the credit quality of a financially
distressed issuer and the relative value of its securities may prove to be
wrong.
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Inflation/Deflation Risk. The value of a
Fund’s investments and the income from its investments may decline as
inflation reduces the value of money. Deflation risk is the risk that
prices throughout the economy may decline over time—the opposite of
inflation. Deflation may have an adverse effect on the creditworthiness of
issuers and may make issuer default more likely, which may result in a
decline in the value of the Fund’s portfolio. |
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Interest Rate Risk. Debt and other
securities and instruments may decline in value due to changes in interest
rates, the extended duration of principal payments at below-market
interest rates, and/or prepayment. Interest rate risk is the risk that the
values of debt securities and other instruments in a Fund’s portfolio will
decline because of increases in market interest rates. Given that the
Federal Reserve Board may continue, to raise interest rates, a Fund may
face a heightened level of interest rate risk. |
The
values of bonds and other debt instruments usually rise and fall in response to
changes in interest rates. Declining interest rates generally increase the
values of existing debt instruments, and rising interest rates generally reduce
the value of existing debt instruments. For example, if interest rates risk by
one percentage point, the share price of a Fund with an average duration of one
year would be expected to fall approximately 1% and the share price of a Fund
with an average duration of five years would be expected to decline by about 5%.
If rates decrease by one percentage point, the share price of a Fund with an
average duration of one year would be expected to rise approximately 1% and the
share price of a Fund with an average duration of five years would be expected
to rise by about 5%. Interest rate risk is generally greater for investments
with longer durations or maturities as well as for debt obligations that do not
pay interest, such as zero coupon and principal-only securities. Some
investments give the issuer the option to call or
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redeem
an investment before its maturity date. If an issuer calls or redeems an
investment during a time of declining interest rates, a Fund might have to
reinvest the proceeds in an investment offering a lower yield, and therefore
might not benefit from any increase in value as a result of declining interest
rates.
During
periods of rising interest rates, the average life of certain types of
securities (e.g., mortgage-backed securities) may be extended because of slower
than expected principal payments. This may lock in a below-market interest rate,
increase the security’s duration, and reduce the value of the security.
A
Fund may invest in variable- and floating-rate debt instruments, which generally
are less sensitive to interest rate changes than longer duration fixed-rate
instruments, but may decline in value in response to rising interest rates if,
for example, the rates at which they pay interest do not rise as much, or as
quickly, as market interest rates in general. Conversely, variable- and
floating-rate instruments generally will not increase in value if interest rates
decline. A Fund may also invest in inverse floating-rate debt securities, which
may decrease in value if interest rates increase, and which also may exhibit
greater price volatility than fixed-rate debt obligations with similar credit
quality. To the extent a Fund holds variable- or floating-rate instruments, a
decrease (or, in the case of inverse floating-rate securities, an increase) in
market interest rates will adversely affect the income received from such
securities and the net asset value of the Fund’s shares.
Many
derivatives transactions, especially interest rate swap agreements, involve
significant amounts of interest rate risk.
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Investments in Pooled Vehicles Risk.
Investing in another investment company or pooled vehicle,
including closed-end funds, trusts, and ETFs, subjects a Fund to that
company’s risks. As a shareholder in an investment company or pooled
vehicle, a Fund, and indirectly that Fund’s shareholders, would bear its
ratable share of the investment company’s or pooled vehicle’s expenses,
including advisory and administrative fees, and the Fund would at the same
time continue to pay its own fees and expenses. ETFs issue redeemable
securities, but because these securities may only be redeemed in kind in
significant amounts, investors generally buy and sell shares in
transactions on securities exchanges. Investments in other investment
companies may be subject to investment or redemption limitations or
special charges, such as redemption fees. A Fund that invests in other
investment companies or other pooled vehicles is exposed to the risk that
the other investment companies or pooled vehicles do not perform as
expected. Investments in certain investment companies or pooled vehicles
(e.g., certain hedge or private equity funds), may be illiquid and their
values may be extremely volatile, including as a result of the use of
investment leverage. |
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IPO Risk. Securities offered in initial
public offerings (IPOs) are subject to many of the same risks of investing
in companies with smaller market capitalizations and often to a heightened
degree. Securities issued in IPOs have no trading history, and information
about the companies may be available only for very limited periods. In
addition, the prices of securities sold in IPOs may be highly volatile. At
any particular time or from time to time, a Fund may not be able to invest
in securities issued in IPOs, or invest to the extent desired, because,
for example, only a small portion (if any) of the securities being offered
in an IPO may be made available to the Fund. In addition, under certain
market conditions, a relatively small number of companies may issue
securities in IPOs. Similarly, as the number of Funds to which IPO
securities are allocated increases, the number of securities issued to any
one Fund may decrease. The investment performance of a Fund during periods
when it is unable to invest significantly or at all in IPOs may be lower
than during periods when the Fund is able to do so. In addition, as a Fund
increases in size, the impact of IPOs on the Fund’s performance will
generally decrease. |
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Issuer Non-Diversification Risk. Some of
the Funds are “non-diversified,” which means they may invest in fewer
issuers, and, as a result, they may be subject to greater credit, market,
and other risks than “diversified” funds. The poor performance by a single
issuer may have a greater impact on the performance of a non-diversified
fund. A non-diversified fund’s shares tend to be more volatile than shares
of a diversified fund and are more susceptible to the risks of focusing
investments in a small number of issuers, industries or foreign
currencies, and the risks of a single economic, political or regulatory
occurrence. Notwithstanding a Fund’s status as “non-diversified”, each
Fund intends to qualify as a “regulated investment company” accorded
special tax treatment under the Internal Revenue Code of 1986, as amended,
which imposes its own diversification requirements that are less
restrictive than the requirements applicable to “diversified” funds.
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Issuer Risk. The value of a security or
instrument may decline for reasons directly related to the issuer, such as
management performance, financial leverage and reduced demand for the
issuer’s goods or services. |
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Large Shareholder Risk. To the extent
that shares of a Fund are purchased or held by large shareholders (e.g., institutional investors or other
funds), the Fund is subject to the risk that these shareholders will
purchase or |
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redeem
Fund shares in large amounts and/or on a frequent basis. These
transactions could adversely affect the Fund if it is forced to sell
portfolio securities to raise the cash that is necessary to satisfy
shareholder redemption requests or purchase portfolio securities to invest
cash. This risk is particularly pronounced when one shareholder owns a
substantial portion of the Fund. These transactions may adversely affect
the Fund’s performance to the extent that the Fund is required to maintain
a large cash position, is delayed in investing new cash, or must sell
investments (or invest cash) at times when it would not otherwise do so.
These transactions also may accelerate the realization of taxable income
to shareholders if such sales of investments result in gains, and also may
increase transaction costs. These transactions potentially limit the use
of any capital loss carry forwards and certain other losses to offset
future realized capital gains (if any) and may limit or prevent the Fund’s
ability to use tax equalization. |
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Leverage Risk. The use of leverage (i.e., where a Fund’s exposure to
securities, assets, or currencies exceeds its net asset value) will
increase the volatility of the Fund’s investment portfolio and magnify the
Fund’s investment losses or gains. If there is a net decrease (or
increase) in the value of a Fund’s investment portfolio, any leverage will
decrease (or increase) the net asset value per share to a greater extent
than if the Fund were not leveraged. The use of leverage is considered to
be a risky investment practice and may result in losses to the Fund.
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Transactions
that involve leverage include reverse repurchase agreements, borrowings, loans
of portfolio securities, short sales, when issued, delayed delivery and forward
commitment transactions, and derivatives (e.g., swaps, futures, participation notes and
forward contracts). A Fund’s ability to enter into such transactions may be
impacted in connection with the Fund’s compliance with Rule 18f-4 under the
Investment Company Act of 1940 (the “1940 Act”).
Because
many derivatives have a leverage component (i.e., a notional value in excess of the assets
needed to establish and/or maintain the derivative position), adverse changes in
the value or level of the underlying asset, rate, or index may result in a loss
substantially greater than the amount invested in the derivative itself. In the
case of swaps, the risk of loss generally is related to a notional principal
amount, even if the parties have not made any initial investment. The use of
leverage may cause a Fund to liquidate portfolio positions when it would not be
advantageous to do so in order to satisfy its obligations to meet asset
segregation requirements. Some derivatives have the potential for unlimited
loss, regardless of the size of the initial investment. A Fund’s portfolio will
be leveraged if it borrows money to meet redemption requests or settle
investment transactions or if it avails itself of the right to delay payment on
a redemption. In addition, a Fund may manage some of their derivative positions
by offsetting derivative positions against one another or against other assets.
To the extent offsetting positions do not behave in relation to one another as
expected, a Fund may perform as if it were leveraged.
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Limited Operating History Risk. As of the
date of this prospectus, Ashmore Emerging Markets Equity ESG Fund, Ashmore
Emerging Markets Low Duration Fund, Ashmore Emerging Markets Debt Fund and
Ashmore Emerging Markets Corporate Income ESG Fund have limited operating
history for investors to evaluate and may not achieve desired asset levels
to maximize investment and operational efficiencies. Therefore, investors
have limited performance or operating history to evaluate and Fund
expenses may be higher than other mutual funds of greater size.
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Liquidity Risk. Liquidity risk exists
when particular investments are difficult to purchase, sell or close out.
The Fund’s investments in illiquid securities may reduce the returns of a
Fund because it may be unable to sell the illiquid securities at an
advantageous time or price. Liquidity risk may also refer to the risk that
a Fund could not meet requests to redeem shares issued by the Fund without
significant dilution of remaining investors’ interests in the Fund. Each
Fund may invest no more than 15% of its net assets (measured at the time
of investment) in illiquid investments. Under Rule 22e-4 under the 1940
Act, “illiquid investments” are defined as those investments that a Fund
reasonably expects cannot be sold or disposed of in current market
conditions in seven (7) calendar days or less without the sale or
disposition significantly changing the market value of the investment.
Investments in foreign securities, especially emerging market securities,
derivatives (in particular OTC derivatives), or securities with
substantial market and/or credit risk tend to have the greatest exposure
to liquidity risk. Illiquid securities are more susceptible to loss of
value and their prices may decline more than other securities when markets
decline generally. The effect of liquidity risk is particularly pronounced
when low trading volume, lack of a market maker, a large position, or
legal restrictions limit or prevent a Fund from selling particular
securities or closing derivative positions at desirable prices. Illiquid
securities may be highly volatile, difficult to value, and more likely to
be fair valued than other securities. Legislative, regulatory and other
actions taken by the United States Government and governments of other
countries to address financial stability and other market or economic
issues may significantly alter the liquidity of certain securities markets
by causing certain parties, such as banks, that have historically served
as market makers or providers of liquidity in certain markets to curtail
those activities or withdraw from |
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their
market-making or liquidity providing activities altogether. The effects of
these changes may be most pronounced during periods of market stress or
significant market volatility. These developments may increase the Funds’
transaction costs and may limit the Funds’ ability to sell portfolio
positions at or near the prices at which the Funds have valued them
recently or to sell their positions timely or at all.
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Management Risk. Because the Funds are
actively managed, each Fund’s investment return depends on the ability of
the Investment Manager to manage its portfolio successfully. The Fund’s
Investment Manager and its Investment Team or Portfolio Manager(s), as
applicable, will apply investment techniques and risk analyses in making
investment decisions for the Funds, but there can be no guarantee that
these will produce the desired results. A Fund’s ability to achieve its
investment objective depends upon the Investment Manager’s ability to
select successfully investments and asset allocations. There is a risk
that the Investment Manager may be incorrect in its analysis of economic
trends, currencies, countries, industries, companies, and the relative
attractiveness of asset classes or other matters.
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Market Risk. The value of securities and
instruments owned by a Fund may rise and fall, sometimes rapidly or
unpredictably, due to factors affecting the economy, securities markets,
or certain industries generally, including, for example, a decline in
demand, labor or raw material shortages, increased production costs,
regulation, or competitive industry conditions. In addition, it may
decline due to general market conditions that are not specifically related
to a company or industry or geographic area, such as real or perceived
adverse economic conditions, changes in the general outlook for corporate
earnings, changes in interest or currency rates, or adverse investor
sentiment generally. |
The
Funds are subject to the risk that geopolitical and other events will disrupt
securities markets and adversely affect global economies and markets and thereby
decrease the value of a Fund’s investments. Securities markets may be
susceptible to market manipulation or other fraudulent trade practices, which
could disrupt the orderly functioning of these markets or adversely affect the
value of investments traded in these markets, including investments of the
Funds. While the U.S. government has honored its credit obligations continuously
for the last 200 years, it remains possible that the U.S. could default on its
obligations. While it is impossible to predict the consequences of such an
unprecedented event, it is likely that a default by the U.S. or other
significant sovereign issuer would be highly disruptive to the U.S. and global
securities markets and could significantly impair the value of the Funds’
investments. Similarly, political events at times have resulted, and may in the
future result, in a shutdown of government services, which could negatively
affect the economy, decrease the value of many Fund investments, and increase
uncertainty in or impair the operation of the U.S. or other securities markets.
The uncertainty surrounding the sovereign debt of a significant number of
European Union countries, as well as the continued existence of the European
Union itself, have disrupted and may continue to disrupt markets in the U.S. and
around the world. If one or more countries leave the European Union or the
European Union dissolves, the world’s securities markets likely will be
significantly disrupted. For example, the United Kingdom left the European Union
on January 31, 2020 (commonly known as “Brexit”). Following the withdrawal,
there was an eleven-month transition period, ending December 31, 2020,
during which the United Kingdom and the European Union agreed to a Trade and
Cooperation Agreement which set out the agreement for certain parts of the
future relationship between the United Kingdom and the European Union. The Trade
and Cooperation Agreement does not provide the United Kingdom with the same
level of rights or access to all goods and services in the European Union as the
United Kingdom previously maintained as a member of the European Union and
during the transition period. In particular, the Trade and Cooperation Agreement
does not provide the United Kingdom with the same level of rights or access to
all goods and services in the European Union as the United Kingdom previously
maintained as a member of the European Union and during the transition period.
In particular the Trade and Cooperation Agreement does not include an agreement
on financial services which is yet to be agreed. Accordingly, uncertainty
remains in certain areas as to the future relationship between the United
Kingdom and the European Union. From January 1, 2021, European Union laws
ceased to apply in the United Kingdom. Many European Union laws were transposed
into English law and these transposed laws continue to apply until such time
that they are repealed, replaced or amended. The United Kingdom government has
enacted legislation that will repeal, replace or otherwise make substantial
amendments to the European Union laws that currently apply in the United
Kingdom. It is impossible to predict the consequences of these amendments on the
Funds and their investments. Such changes could be materially detrimental to
investors. Additionally, Brexit could lead to global economic uncertainty and
result in volatility in global stock markets, heightened counterparty risk and
currency exchange rate fluctuations. This uncertainty may impact opportunities,
pricing, availability and cost of bank financing, regulation, values or exit
opportunities of companies or assets based, doing business, or having services
or other significant relationships in, the United Kingdom or the European Union.
Brexit may also create the
129
potential
for decreased trade, the possibility of capital outflows from the United
Kingdom, devaluation of the pound sterling, the cost of higher corporate bond
spreads, and the risk that all the above could negatively impact business and
consumer spending as well as foreign direct investment. Any further exits from
the EU by other member states, or the possibility of such exits, would likely
cause additional market disruption globally and introduce new legal and
regulatory uncertainties. Substantial government interventions (e.g., currency controls) also could negatively
impact the Funds. War, terrorism, economic uncertainty, and related geopolitical
events have led, and in the future may lead, to increased short-term market
volatility and may have adverse long-term effects on U.S. and world economies
and markets generally. Likewise, natural and environmental disasters and
systemic market dislocations would be highly disruptive to economies and
markets. Such events as well as other changes in foreign and domestic economic
and political conditions also could adversely affect individual issuers or
related groups of issuers, securities markets, interest rates, credit ratings,
inflation, investor sentiment, and other factors affecting the value of a Fund’s
investments. During such market disruptions, the Funds’ exposure to the risks
described elsewhere in this “SUMMARY OF PRINCIPAL RISKS” section will likely
increase. Market disruptions, including sudden government interventions, can
also prevent a Fund from implementing its investment program for a period of
time and achieving its investment objective. For example, a market disruption
may adversely affect the orderly functioning of the securities markets and may
cause a Fund’s derivatives counterparties to discontinue offering derivatives on
some underlying commodities, securities, reference rates, or indices, or to
offer them on a more limited basis.
Securities
markets may, in response to governmental actions or intervention, economic or
market developments, or other external factors, experience periods of high
volatility and reduced liquidity. During those periods, a Fund may experience
high levels of shareholder redemptions, and may have to sell securities at times
when the Fund would otherwise not do so, and potentially at unfavorable prices.
Certain securities may be difficult to value during such periods. These risks
may be heightened for fixed income securities due to the current low interest
rate environment and relatively high level of government intervention.
Recent
instability in the financial markets has led governments around the world to
take a number of unprecedented actions designed to support certain financial
institutions and segments of the financial markets that have experienced extreme
volatility, and in some cases a lack of liquidity. The withdrawal of this
support, failure of these efforts, or investor perception that these efforts are
not succeeding could negatively affect financial markets generally as well as
the values and liquidity of a Fund’s securities. Federal, state, and other
governments, their regulatory agencies, or self-regulatory organizations have
taken and may in the future take actions that affect the regulation of the
instruments in which the Funds invest, the issuers of such instruments, or the
counterparties or agents with which the Funds trade, in ways that are
unforeseeable or not fully understood or anticipated.
Legislation
or regulation may also change the way in which a Fund itself is regulated. Such
legislation or regulation could limit or preclude a Fund’s ability to achieve
its investment objective.
Governments
or their agencies have and may in the future acquire distressed assets from
financial institutions and acquire ownership interests in those institutions.
The implications of government ownership and disposition of these assets are
unclear, and such a program may have positive or negative effects on the
liquidity, valuation and performance of a Fund’s portfolio holdings.
Furthermore, volatile financial markets can expose a Fund to greater market and
liquidity risk and potential difficulty in valuing portfolio instruments held by
the Fund.
The
Funds are subject to the risk that major natural disasters, such as hurricanes,
earthquakes, typhoons, flooding, tidal waves, tsunamis, erupting volcanoes,
wildfires or droughts, may affect certain areas of the world, which may be
economically sensitive to environmental events. The impact of epidemics and
pandemics also could affect the economies of many nations, individual companies
and financial markets in ways that cannot necessarily be foreseen. For example,
COVID-19, the novel respiratory disease also known as “coronavirus,” which was
first detected in China in December 2019, and subsequently spread
internationally, resulted in closed borders, enhanced health screenings,
healthcare service shortages, quarantines, cancellations, disruptions to supply
chains and vendor and customer activity, as well as general concern and
uncertainty. COVID-19 negatively affected the global economy, the economies of
individual countries, and the financial performance of individual issuers,
sectors, industries, asset classes, and markets in significant and unforeseen
ways and may continue to do so in the future. Health crises caused by the
coronavirus pandemic also exacerbated other pre-existing political, social and
economic risks. The effects of the pandemic in developing or emerging market
countries generally was greater due to less established health care systems. The
COVID-19 pandemic resulted in significant market volatility, exchange trading
suspensions and closures, declines in global financial markets, higher default
rates, and a substantial economic downturn. Other epidemics and pandemics that
may arise in the future could impair the Funds’ ability to maintain operational
standards (such as with respect to satisfying
130
redemption
requests), disrupt the operations of the Funds’ service providers, adversely
affect the value and liquidity of the Funds’ investments, and negatively impact
the Funds’ performance and your investment in a Fund.
At
such times, a Funds’ exposure to the risks described elsewhere in this section,
including market risk, liquidity risk, foreign investment risk, emerging markets
risk, currency risk, and credit and counterparty risk, will likely increase,
perhaps dramatically. Market disruptions can also prevent the Funds from
implementing their investment programs for a period of time and achieving their
investment objectives. For example, a disruption may cause the Funds’ derivative
counterparties to discontinue offering derivatives on some underlying
commodities, securities, reference rates, or indices or to offer such products
on a more limited basis, or the current global economic crisis may limit a
counterparty’s ability to satisfy its obligations.
|
• |
|
Mortgage-Backed and Asset-Backed Risk.
Mortgage-backed securities, including collateralized mortgage
obligations and certain stripped mortgage-backed securities, represent a
participation in, or are secured by, mortgage loans. Asset-backed
securities are structured like mortgage-backed securities, but instead of
mortgage loans or interests in mortgage loans, the underlying assets may
include such items as motor vehicle installment sales or installment loan
contracts, leases of various types of real and personal property and
receivables from credit card agreements. The ability of an issuer of
asset-backed securities to enforce its security interest in the underlying
assets may be limited. |
Traditional
debt investments typically pay a fixed rate of interest until maturity, when the
entire principal amount is due. By contrast, payments on mortgage-backed and
many asset-backed investments typically include both interest and partial
payment of principal. Principal may also be pre-paid voluntarily, or as a result
of refinancing or foreclosure. A Fund may have to invest the proceeds from
prepaid investments in other investments with less attractive terms and yields.
As a result, these securities may have less potential for capital appreciation
during periods of declining interest rates than other securities of comparable
maturities, although they may have a similar risk of decline in market value
during periods of rising interest rates. Because the prepayment rate generally
declines as interest rates rise, an increase in interest rates will likely
increase the duration, and thus the volatility, of mortgage-backed and
asset-backed securities. In addition to interest rate risk, investments in
mortgage-backed securities composed of subprime mortgages may be subject to a
higher degree of liquidity risk, valuation risk, inflation risk, and credit
risk.
Some
mortgage-backed and asset-backed investments receive only the interest portion
(“IOs”) or the principal portion (“POs”) of payments on the underlying assets.
The yields and values of these investments are extremely sensitive to changes in
interest rates and in the rate of principal payments on the underlying assets.
IOs tend to decrease in value if interest rates decline and rates of repayment
(including prepayment) on the underlying mortgages or assets increase; it is
possible that a Fund may lose the entire amount of its investment in an IO due
to a decrease in interest rates. Conversely, POs tend to decrease in value if
interest rates rise and rates of repayment decrease. Moreover, the market for
IOs and POs may be volatile and limited, which may make them difficult for a
Fund to buy or sell.
A
Fund may gain investment exposure to mortgage-backed and asset-backed
investments by entering into agreements with financial institutions to buy the
investments at a fixed price at a future date. The Fund may or may not take
delivery of the investments at the termination date of such an agreement, but
will nonetheless be exposed to changes in value of the underlying investments
during the term of the agreement.
Ongoing
developments in the residential and commercial mortgage markets may have
additional consequences for the market for mortgage-backed securities. During
periods of deteriorating economic conditions, such as recessions or periods of
rising unemployment, delinquencies and losses generally increase, sometimes
drastically, with respect to securitizations involving mortgage loans.
|
• |
|
Over-the-Counter Risk. Securities and
derivatives traded in over-the-counter markets may trade less frequently
and in limited volumes and thus exhibit more volatility and liquidity risk
than securities principally traded on securities exchanges. In addition,
the prices of such securities may include an undisclosed dealer markup,
which a Fund pays as part of the purchase price. There can be no assurance
that a Fund will be able to close out an over-the-counter position at an
advantageous time or price. |
“Over-the-counter”
(or “OTC”) derivatives (such as forward foreign currency contracts and swap
contracts) involve counterparty risk. A Fund that uses swap contracts is
subject, in particular, to the creditworthiness of the contracts’ counterparties
because some types of swap contracts have durations longer than six months (and,
in some cases, a number of decades). In addition, the creditworthiness of a
counterparty may be adversely affected by
131
larger
than average volatility in the markets, even if the counterparty’s net market
exposure is small relative to its capital. OTC derivatives generally involve
greater counterparty risk than exchange-traded derivatives. A Fund may have
significant exposure to a single counterparty as a result of its use of swaps
and other OTC derivatives.
|
• |
|
Portfolio Turnover Risk. The investment
policies of a Fund may lead to frequent changes in the Fund’s investments,
particularly in periods of volatile market movements. A change in the
securities held by a Fund is known as “portfolio turnover.” Portfolio
turnover generally involves some expense to the Fund, such as commissions,
bid-asked spreads, dealer mark-ups and other transaction costs on the sale
of securities and reinvestments in other securities, and may result in the
realization of taxable capital gains (including short-term gains, which
are generally taxed to shareholders as ordinary income). The trading costs
and tax effects associated with portfolio turnover may adversely affect a
Fund’s performance. During periods when a Fund experiences high portfolio
turnover rates, these effects are likely to be more pronounced.
|
|
• |
|
Small and Mid-Sized Companies Risk.
Micro, small and mid-sized companies may offer greater
opportunities for capital appreciation than larger companies, but may also
involve certain special risks. They are more likely than larger companies
to have limited product lines, markets or financial resources, or to
depend on a small, inexperienced management group. Securities of smaller
companies may trade less frequently and in lesser volume than more widely
held securities and their values may fluctuate more sharply than other
securities. They may also trade in the over-the-counter market or on a
regional exchange, or may otherwise have limited liquidity. These
securities may be more vulnerable to adverse developments than securities
of larger companies, and a Fund may have difficulty establishing or
closing out its securities positions in smaller companies at prevailing
market prices. Also, there may be less publicly available information
about smaller companies or less market interest in their securities as
compared to larger companies, and it may take longer for the prices of the
securities to reflect the full value of their issuers’ earnings potential
or assets. |
|
• |
|
Valuation Risk. Certain securities and
instruments may be difficult to value, and to the extent a Fund sells a
security or instrument at a price lower than that used to value the
security, the Fund’s net asset value will be adversely affected. Pursuant
to Rule 2a-5 under the 1940 Act, the Investment Manager has been
designated with responsibility for performing fair value determinations
for the Funds. A Fund’s assets may be valued using prices provided by a
pricing service or, alternatively, a broker-dealer or other market
intermediary (sometimes just one broker-dealer or other market
intermediary) when other reliable pricing sources may not be available. To
the extent the Fund relies on a pricing service to value some or all of
its portfolio securities, it is possible that the pricing information
provided by the service will not reflect the actual price the Fund would
receive upon sale of a security. If a Fund has overvalued securities it
holds, a shareholder may end up paying too much for the Fund’s shares. If
a Fund underestimates the price of its portfolio securities, a shareholder
may not receive the full market value for Fund shares upon redemption.
When the Fund invests in other mutual funds or investment pools, it will
generally value its investments in those funds or pools based on the
valuations determined by the funds or pools, which may not be precisely
the same as if the net assets of the funds or pools had been valued using
the procedures employed by the Fund to value its own assets. Valuation
risks may be particularly severe to the extent that a Fund invests in high
yield securities, illiquid securities and derivative instruments because
there may be less liquid markets for these instruments or market
quotations may not be readily available for them.
|
PORTFOLIO
HOLDINGS
A
description of the Funds’ policies and procedures with respect to the disclosure
of their portfolio holdings, together with additional information about
portfolio holdings disclosure, is available in the SAI. In addition, the
Investment Manager will periodically post information regarding each Fund’s
portfolio holdings on the Funds’ website at www.ashmoregroup.com. The Funds’
policies with respect to the disclosure of portfolio holdings information are
subject to change without notice.
MANAGEMENT
OF THE FUNDS
Board
of Trustees
The
Board of Trustees of Ashmore Funds, a Massachusetts business trust (the
“Trust”), of which each Fund is a separate series, has responsibility for the
general oversight of the management of the Funds, including the general
supervision of the Investment Manager and the Funds’ other service providers.
The Board of Trustees is not involved in the day-to-day management of the Trust.
A list of the Trustees and the Trust’s officers, and their present positions and
principal occupations, is provided in the SAI.
132
Investment
Manager
Under
the terms of an Investment Management Agreement between the Trust and the
Investment Manager with respect to each Fund (the “Investment Management
Agreement”) and subject to the supervision of the Board of Trustees, Ashmore
Investment Advisors Limited serves as each Fund’s Investment Manager and is
responsible for managing, either directly or through others selected by it, the
investments of each Fund. The Investment Manager’s principal business address is
61 Aldwych, London, United Kingdom, WC2B 4AE. As part of its planning for
regulatory change and ongoing regulatory compliance in the United Kingdom, the
advisory services provided to the Funds were novated from Ashmore Investment
Management Limited (“AIML”), the Funds’ former investment adviser, to Ashmore
Investment Advisors Limited effective July 18, 2014. AIML and Ashmore
Investment Advisors Limited are both wholly owned subsidiaries of Ashmore
Investments (UK) Limited, which is a wholly-owned subsidiary of Ashmore Group
plc (“Ashmore Group”), a company incorporated in England and Wales that is
listed on the official list of the UK Listing Authority and admitted to trading
on the London Stock Exchange. As of December 31, 2023, the Investment
Manager had under management assets of approximately $2.0 billion and the
Investment Manager and its advisory affiliates that are owned by Ashmore Group
had under management assets of approximately $54.0 billion in the
aggregate.
A
discussion regarding the Board of Trustees’ approval of the Investment
Management Agreement with respect to each of the Funds is available in the
Trust’s report to shareholders for the fiscal period ended April 30, 2023.
Management
Fees
During
the fiscal year ended October 31, 2023 (except as noted), for the services
provided to the Funds under the Investment Management Agreement, each Fund paid
the Investment Manager a monthly fee at the following annual rates, stated as a
percentage of the Fund’s average daily net assets.
|
|
|
|
|
|
|
|
|
| |
|
|
Contractual Management Fee |
|
Net Management Fee
(after waivers and recoupments) |
Ashmore
Emerging Markets Total Return Fund |
|
|
|
1.00 |
% |
|
|
|
0.79 |
% |
|
| |
Ashmore
Emerging Markets Local Currency Bond Fund |
|
|
|
0.75 |
%1 |
|
|
|
0.00 |
% |
|
| |
Ashmore
Emerging Markets Corporate Income Fund |
|
|
|
0.85 |
% |
|
|
|
0.52 |
% |
|
| |
Ashmore
Emerging Markets Short Duration Fund |
|
|
|
0.65 |
% |
|
|
|
0.27 |
% |
|
| |
Ashmore
Emerging Markets Active Equity Fund |
|
|
|
1.00 |
% |
|
|
|
0.41 |
% |
|
| |
Ashmore
Emerging Markets Small-Cap Equity Fund |
|
|
|
1.25 |
%2 |
|
|
|
0.00 |
% |
|
| |
Ashmore
Emerging Markets Frontier Equity Fund |
|
|
|
1.25 |
% |
|
|
|
0.99 |
% |
|
| |
Ashmore
Emerging Markets Equity Fund |
|
|
|
1.00 |
%3 |
|
|
|
0.68 |
% |
|
| |
Ashmore
Emerging Markets Equity ESG Fund |
|
|
|
1.00 |
%3 |
|
|
|
0.00 |
% |
|
| |
Ashmore
Emerging Markets Low Duration Fund |
|
|
|
0.65 |
% |
|
|
|
0.00 |
% |
|
| |
Ashmore
Emerging Markets Debt Fund |
|
|
|
0.65 |
%4 |
|
|
|
0.09 |
% |
|
| |
Ashmore
Emerging Markets Corporate Income ESG Fund |
|
|
|
0.85 |
% |
|
|
|
0.00 |
% |
1 |
Prior
to February 28, 2023, the contractual management fee was 0.95% of
average daily net assets. |
2 |
Prior
to February 28, 2023, the contractual management fee was 1.50% of
average daily net assets. |
3 |
Prior
to February 28, 2023, the contractual management fee was 1.15% of
average daily net assets. |
4 |
Prior
to August 1, 2023, the contractual management fee was 0.70% of
average daily net assets. |
Expense
Limitations and Waivers
The
Investment Manager has contractually agreed to waive its fees or reimburse each
Fund for certain other expenses to the extent that a Fund’s Total Annual Fund
Operating Expenses (other than Acquired Fund Fees and Expenses, interest
expense, taxes, custodial credits, transfer agency credits, expense offset
arrangements, and extraordinary expenses, which may include non-recurring
expenses such as, for example, litigation expenses and shareholder meeting
expenses) for the Fund’s Class A, Class C and Institutional
Class Shares exceed the percentage of the average daily net assets
attributable to the particular share class shown below. Under the Expense
Limitation Agreement, the Investment Manager may recoup amounts waived or
reimbursed for 36 months following the end of the month when the waiver or
reimbursement occurred, provided total expenses, including such recoupment, do
not exceed the annual expense limit, and further that expenses may be recouped
only if and to the extent that the expense ratio at the time of such recoupment
is less than the annual expense limit in place at the time such expenses were
waived or reimbursed. The contractual expense limitation arrangement is expected
to continue
133
until
at least February 28, 2025. The arrangement may be terminated by the Trust,
subject to approval by the Board of Trustees of the Trust, upon ninety
(90) days’ written notice to the Investment Manager. The expense limitation
arrangement may be terminated before February 28, 2025 only by the Board of
Trustees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class A |
|
Class C |
|
Institutional Class |
Ashmore
Emerging Markets Total Return Fund |
|
|
|
1.27 |
% |
|
|
|
2.02 |
% |
|
|
|
1.02 |
% |
|
|
| |
Ashmore
Emerging Markets Local Currency Bond Fund |
|
|
|
1.02 |
% |
|
|
|
1.77 |
% |
|
|
|
0.77 |
% |
|
|
| |
Ashmore
Emerging Markets Corporate Income Fund |
|
|
|
1.12 |
% |
|
|
|
1.87 |
% |
|
|
|
0.87 |
% |
|
|
| |
Ashmore
Emerging Markets Short Duration Fund |
|
|
|
0.92 |
% |
|
|
|
1.67 |
% |
|
|
|
0.67 |
% |
|
|
| |
Ashmore
Emerging Markets Active Equity Fund |
|
|
|
1.27 |
% |
|
|
|
2.02 |
% |
|
|
|
1.02 |
% |
|
|
| |
Ashmore
Emerging Markets Small-Cap Equity Fund |
|
|
|
1.52 |
% |
|
|
|
2.27 |
% |
|
|
|
1.27 |
% |
|
|
| |
Ashmore
Emerging Markets Frontier Equity Fund |
|
|
|
1.77 |
% |
|
|
|
2.52 |
% |
|
|
|
1.52 |
% |
|
|
| |
Ashmore
Emerging Markets Equity Fund |
|
|
|
1.27 |
% |
|
|
|
2.02 |
% |
|
|
|
1.02 |
% |
|
|
| |
Ashmore
Emerging Markets Equity ESG Fund |
|
|
|
1.27 |
% |
|
|
|
2.02 |
% |
|
|
|
1.02 |
% |
|
|
| |
Ashmore
Emerging Markets Low Duration Fund |
|
|
|
0.92 |
% |
|
|
|
1.67 |
% |
|
|
|
0.67 |
% |
|
|
| |
Ashmore
Emerging Markets Debt Fund |
|
|
|
0.92 |
% |
|
|
|
1.67 |
% |
|
|
|
0.67 |
% |
|
|
| |
Ashmore
Emerging Markets Corporate Income ESG Fund |
|
|
|
1.12 |
% |
|
|
|
1.87 |
% |
|
|
|
0.87 |
% |
Ashmore Emerging Markets Total Return Fund, Ashmore
Emerging Markets Local Currency Bond Fund, Ashmore Emerging Markets Corporate
Income Fund, Ashmore Emerging Markets Short Duration Fund, Ashmore Emerging
Markets Low Duration Fund, Ashmore Emerging Markets Debt Fund and Ashmore
Emerging Markets Corporate Income ESG Fund (for purposes of this section, the
“Funds”)
Investment
Team
The
Investment Manager’s Investment Committee, together with the relevant portfolio
managers, oversees the management of the Funds and meets formally on at least a
weekly basis to review each Fund’s portfolio and markets generally and to
determine investment strategy. Investment decisions are made on a collective
basis by the Investment Committee together with input from the relevant
portfolio managers, rather than by individuals. Investment decisions are
implemented on an individual security and investment basis by portfolio
management and trading personnel of the Investment Manager. The six individuals
named below have oversight of investment decisions for each of the Funds. Each
individual’s recent professional experience is also shown. The SAI provides
additional information about each individual’s compensation, other accounts he
manages and his ownership of securities in the Funds.
|
| |
Name |
|
Recent
Professional Experience |
Mark Coombs |
|
Mr. Coombs is the Investment
Manager’s Chief Executive Officer and the Chairman of its Investment
Committee. Mr. Coombs has been involved in Emerging Markets since
joining Grindlays Bank plc in 1983. Following its acquisition by Australia
and New Zealand Banking Group Limited (ANZ) Mr. Coombs was appointed
Head of Emerging Markets Group for ANZ Merchant Bank Limited in 1988, in
1991 became Head of the International Merchant Banking Division of ANZ
Grindlays Bank plc and, in 1997, Head of Markets for ANZ Group. He was
appointed to the Board of Emerging Markets Trade Association in 1993 and
Co-Chair in 2001. Ashmore was the subject of an MBO from ANZ in 1999 and
listed on the London Stock Exchange in 2006. He has been Chairman of the
Investment Committee since he established the business within ANZ in 1992
and is responsible for setting the overall investment strategy of funds
managed. Mr. Coombs holds an MA (Hons) in Law from Cambridge
University. He is currently a Co-Chair of the Board of EMTA (formerly the
Emerging Markets Trade Association). Mr. Coombs, together with the
relevant portfolio managers, participates in the security selection
process for each of the Funds. |
| |
Ricardo Xavier |
|
Mr. Xavier is the Deputy Chairman of
the Investment Committee. He joined Ashmore in 2003 and has over 30 years’
experience in Emerging Markets trading, including Local Currency Fixed
Income, USD Debt and Equities. Prior to joining Ashmore, he worked for
Unibanco in New York, as an Equity Trader focused on Latin America. He
also worked for Deutsche Bank and Morgan Grenfell, where he managed a USD
200m Local Currency Fund. He started his career in 1993 at Citibank, based
in Sao Paulo, Brazil. Mr. Xavier has a degree in Business
Administration, with specialisation in Finance. Mr. Xavier, together
with the relevant portfolio managers, participates in the security
selection process for Funds which invest in local currency denominated
instruments. |
134
|
| |
Name |
|
Recent
Professional Experience |
| |
Herbert Saller |
|
Mr. Saller is a Senior Portfolio
Manager, Head of External Debt strategy and a Member of the Investment
Committee. He joined Ashmore in 2002 from Foreign & Colonial
where, for the last four years, he was a portfolio manager for global
Emerging Market sovereign and corporate debt. Prior to Foreign &
Colonial he spent seven years as a proprietary trader for Hypovereinsbank,
Munich where he originally started as a banker in 1985. Mr. Saller
holds a degree in business management from Verwaltungs-und
Wirtschafts-Akademie, Munich. Mr. Saller holds a degree in business
management from Verwaltungs-und Wirtschafts-Akademie, Munich. |
| |
Robin Forrest |
|
Mr. Forrest is a Senior Portfolio
Manager, Head of Corporate Debt strategy and a Member of the Investment
Committee. He joined Ashmore in 2006 after 13 years at JP Morgan where he
was Vice President -Situational Finance, with a focus on credit intensive
corporate situations in CEEMEA geographies. Prior to this, he had broad
experience across capital markets in origination, structuring, execution,
syndication, risk management and credit within loan and high yield markets
and in Emerging Markets. Mr. Forest has a BA (Hons) in
Russian & French from Oxford University. Mr. Forrest has a
BA (Hons) in Russian & French from Oxford University |
| |
Cemil Urganci |
|
Mr. Urganci, Senior Portfolio
Manager, Head of Local Currency strategy and a Member of the Investment
Committee. He joined Ashmore in 2006 after 8 years at HSBC.
Mr. Urganci has experience in Emerging Markets trading and market
making, including local currency and external debt, interest rate and
currency derivatives. He started his career at HSBC Bank AS
Istanbul/Turkey in 1997 and worked at HSBC Bank London between 2004 and
2006. Mr. Urganci has a BSc degree in Industrial Engineering from
Bogazici University. |
| |
Fernando Assad |
|
Mr. Assad, Senior Portfolio Manager,
Head of the Multi-Asset and Active Equity strategies and a Member of the
Investment Committee. He joined Ashmore in 2007 as an equity portfolio
manager after six years at Morgan Stanley where he was a Vice President
responsible for management of Emerging Market equities and the launch of
the Global Emerging and Convergence Opportunities portfolio within Global
Wealth Management in London. Prior to this he worked for SG Asset
Management Emerging Markets and worked as an intern in Merrill Lynch
Broker Services. Mr. Assad is a CFA Charterholder and has a BA in
Economics from the American International University in
London. |
Ashmore Emerging Markets Active Equity Fund, Ashmore
Emerging Markets Small-Cap Equity Fund, Ashmore Emerging Markets Frontier Equity
Fund, Ashmore Emerging Markets Equity Fund and Ashmore Emerging Markets Equity
ESG Fund (for purposes of this section, the “Funds”)
Portfolio
Managers
The
individuals listed below share primary responsibility for the day-to-day
management of the noted Fund.
|
|
|
|
|
| |
Fund |
|
Portfolio Manager |
|
Since |
|
Recent
Professional Experience |
Ashmore Emerging Markets Active Equity
Fund |
|
Fernando Assad |
|
November 2016 |
|
See above. |
|
|
| |
Ashmore Emerging Markets Small-Cap Equity
Fund |
|
Patrick Cadell |
|
November 2017 |
|
Patrick Cadell, Portfolio Manager, joined
Ashmore in 2017. Prior to joining the Investment Manager Mr. Cadell
gained a 1st Class BSc in Economics from University College
London. |
|
|
| |
| |
Dhiren Shah |
|
November 2017 |
|
Dhiren Shah, Portfolio Manager, Head of
the Emerging Markets Equity and Emerging Markets Small Cap strategies,
joined Ashmore in 2017. In recent roles, Mr. Shah also had the
responsibility as co-head and head of research for the Global Emerging
Markets team. He is a CFA charter holder and gained a 1st in Economics
from University College London. |
135
|
|
|
|
|
| |
Fund |
|
Portfolio Manager |
|
Since |
|
Recent
Professional Experience |
|
|
| |
Ashmore Emerging Markets Frontier Equity
Fund |
|
Andy Brudenell |
|
December 2015 |
|
Andy Brudenell is the Portfolio Manager of
the Investment Manager and Head of Frontier Markets strategies. Prior to
joining Ashmore in 2015, he was head of the Global Frontier Equity
Strategy, and Lead Portfolio Manager at HSBC Global Asset Management. He
has been in the investment industry since 1997 and has 15 years of
investing experience in Frontier Markets. Prior to joining HSBC, he worked
as a US Fund Manager at Scudder Investments and as an Asia Pacific
Equities Analyst and Global Equities Portfolio Manager at Deutsche Asset
Management. He holds an MSc from the London School of Economics and is a
CFA Charterholder. |
|
|
| |
Ashmore Emerging Markets Equity Fund |
|
Dhiren Shah |
|
November 2017 |
|
See above. |
|
|
| |
Ashmore Emerging Markets Equity ESG
Fund |
|
Dhiren Shah |
|
February 2020 |
|
See above. |
|
|
| |
Ashmore Emerging Markets Equity ESG
Fund |
|
Patrick Cadell |
|
February 2021 |
|
See above. |
Administrator
The
Northern Trust Company (“Northern Trust”) serves as the administrator of the
Funds. As administrator, Northern Trust manages each Fund’s administrative
affairs and other business, including preparing various filings, reports, and
contracts on behalf of the Funds, performing certain back office services, and
providing the Funds with facilities, equipment and personnel.
Distributor
Ashmore
Investment Management (US) Corporation (“AIMUS” or the “Distributor”), located
at 475 Fifth Avenue, 15th
Floor, New York, New York 10017, is the principal underwriter of shares of the
Funds. AIMUS is not obligated to sell any specific amount of shares of the Funds
and will purchase shares for resale only against orders for shares. AIMUS is an
affiliate of the Investment Manager.
Additional
Information
The
Trustees of the Trust oversee generally the operations of the Funds and the
Trust. The Trust enters into contractual arrangements with various parties,
including among others the Funds’ Investment Manager, custodian, transfer agent,
and accountants, who provide services to the Fund. Shareholders are not parties
to any such contractual arrangements and are not intended third party (or other
form of) beneficiaries of those contractual arrangements. The Trust’s and the
Funds’ contractual arrangements are not intended to create any shareholder
rights to enforce such contracts directly against the service providers or to
seek any remedy under those contracts directly against the service providers.
This
Prospectus has been designed to meet the regulatory purpose of providing
information concerning the Trust and the Funds that you should consider
carefully in determining whether to purchase shares of the Funds. Neither this
Prospectus, the SAI, nor the Funds’ registration statement, is intended, or
should be read, to be or to give rise to an agreement or contract between the
Trust or the Funds and any shareholder, or to give rise to any rights in any
shareholder or other person other than any rights under federal or state law
that may not be waived.
136
HOW
THE FUNDS’ SHARES ARE PRICED
The
net asset value per share (“NAV”) of a Fund’s Class A, Class C and
Institutional Class Shares is determined by dividing the total value of a
Fund’s portfolio investments and other assets attributable to the particular
share class, less any liabilities, by the total number of shares outstanding of
that class. Each Fund’s shares are valued as of the close of regular trading
(normally 4:00 p.m. Eastern time) on each day that the New York Stock Exchange
(“NYSE”) is open for regular trading. Each Fund reserves the right to change the
time its NAV is calculated under certain unusual circumstances, including, for
example, in the event of an unscheduled halt or early close of trading on the
NYSE. The time as of which each Fund calculates its NAV is hereinafter the “NAV
Calculation Time.”
For
purposes of calculating NAV, portfolio securities and other assets for which
market quotations are readily available are valued at market value. A market
quotation is readily available only when that quotation is a quoted price
(unadjusted) in active markets for identical investments that the Fund can
access at the measurement date, provided that a quotation will not be readily
available if it is not reliable. Market value is generally determined on the
basis of official closing prices. With respect to any portion of a Fund’s assets
that are invested in one or more open-end management investment companies, a
Fund’s NAV will be calculated based upon the NAVs of such investments. The
prospectuses for these open-end management investment companies explain the
circumstances under which those companies will use fair value pricing and the
effects of using fair value pricing.
If
a Fund believes a non-U.S. (foreign) security’s value has materially changed
after the close of the security’s primary exchange or principal market but
before the NAV Calculation Time, the security will be valued at fair value based
on procedures approved by the Board of Trustees. The fair value of investments
may be determined based on information provided by pricing services and other
third-party vendors, which may recommend fair value prices or adjustments with
reference to other securities, indices or assets. The Funds may use fair value
pricing more frequently for foreign securities or assets because, among other
things, many foreign markets close well before the NAV of the Funds’ shares is
next calculated. In considering whether fair value pricing is required and in
determining fair values, the Valuation Designee (as defined below) may, among
other things, consider significant events (which may be considered to include
changes in the value of U.S. securities or securities indices) that occur after
the close of the relevant market and before the NAV Calculation Time. The
Valuation Designee (as defined below) may utilize modeling tools provided by
third-party vendors to determine fair values of non-U.S. securities. Foreign
exchanges may permit trading in foreign securities on days when the Trust is not
open for business, which may result in the values of a Fund’s portfolio
investments being affected when you are unable to buy, sell or exchange shares
of the Fund.
For
purposes of calculating NAV, the Funds normally use pricing data for domestic
equity securities received shortly after the NAV Calculation Time and do not
normally take into account trading, clearances or settlements that take place
after the NAV Calculation Time. Domestic fixed income and non-U.S. securities
are normally priced using data reflecting the earlier closing of the principal
markets for those securities, subject to possible fair value adjustments.
Information that becomes known to a Fund or its agents after NAV has been
calculated on a particular day will not generally be used to retroactively
adjust the price of a security or NAV determined earlier that day.
Investments
initially valued in currencies other than the U.S. dollar are converted to the
U.S. dollar using exchange rates obtained from pricing services. Foreign
exchange rates are calculated as of 4:00 p.m. Eastern time on each day that the
NYSE is open for regular trading. As a result, the NAV of a Fund’s shares may be
affected by changes in the value of currencies in relation to the U.S. dollar.
The value of securities traded in markets outside the United States or
denominated in currencies other than the U.S. dollar may be affected
significantly on a day that the NYSE is closed and an investor is not able to
purchase, redeem or exchange shares of the Funds.
Investments
for which market quotations are not readily available are valued at fair value
as determined in good faith pursuant to Rule 2a-5 under the 1940 Act. As a
general principle, the fair value of a security or other asset is the price that
would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. Pursuant to
Rule 2a-5, the Board has designated the Investment Manager as the valuation
designee (“Valuation Designee”) for the Funds to perform the fair value
determination relating to all Fund investments. The Investment Manager may carry
out its designated responsibilities as Valuation Designee through various
committees. The Valuation Designee’s policies and procedures govern the
Valuation Designee’s selection and application of methodologies for determining
and calculating the fair value of Fund investments. The Valuation Designee may
value Fund portfolio securities for which market quotations are not readily
available and other Fund assets utilizing inputs from pricing services,
quotation reporting systems, valuation agents and other third-party sources
(together, “Pricing Sources”).
137
Domestic
and foreign debt securities for which the close of trading does not coincide
with the NYSE close and non-exchange traded derivatives are normally valued on
the basis of quotes obtained from brokers and dealers or Pricing Sources using
data reflecting the earlier closing of the principal markets for those
securities. Prices obtained from Pricing Sources may be based on, among other
things, information provided by market makers or estimates of market values
obtained from yield data relating to investments or securities with similar
characteristics. Certain debt securities purchased on a delayed delivery basis
are marked-to-market daily until settlement. Exchange traded options, futures
and options on futures are generally valued at the settlement price determined
by the exchange on which the instrument is primarily traded.
The
Valuation Designee primarily employs a market-based approach which may use
related or comparable assets or liabilities, recent transactions, market
multiples, book values, and other relevant information to determine the fair
value of an investment. The Valuation Designee may also apply a discount to the
last traded price in situations where the last traded price may not represent
the fair value of the security, such as if a security’s trading has been
suspended on its primary trading market, a security has been de-listed from its
primary trading market, a security has not traded for an extended period of
time, or a security’s primary trading market is temporarily closed at a time
when under normal conditions it would be open. Any such discount is based on a
number of factors including but not limited to the circumstances surrounding any
potential suspension or de-listing, market and industry conditions, competitor
information, and the period of time since the last trading took place.
Fair
valuation may require subjective determinations about the value of a security or
asset. While the Funds’ and Valuation Designee’s policies and procedures are
intended to result in a calculation of a Fund’s NAV that fairly reflects
security and asset values as of the time of pricing, the Funds cannot ensure
that fair values would accurately reflect the price that a Fund could obtain for
a security or asset if it were to dispose of that security as of the time of
pricing (for instance, in a forced or distressed sale). The prices used by a
Fund may differ from the value that would be realized if the securities were
sold.
CLASSES
OF SHARES
Each
Fund offers investors Class A, Class C and Institutional
Class Shares. Each class of shares is subject to different types and levels
of sales charges (if applicable) and other fees than the other classes and bears
a different level of expenses.
Class A
and Class C Shares are generally available for purchase by all investors,
subject to the satisfaction of investment minimums described below under “How to
Buy Shares—Class A and Class C Shares.” Institutional
Class Shares are offered primarily for direct investment by pension and
profit sharing plans, employee benefit trusts, endowments, foundations,
corporations and high net worth individuals, subject to the satisfaction of
investments minimums described below under “How to Buy Shares—Institutional
Class.” Subject to eligibility, the class of shares that is best for you depends
upon a number of factors, including the amount and the intended length of your
investment. The following summarizes key information about each share class to
help you make your investment decision, including the various expenses
associated with each class and the payments made to financial intermediaries for
distribution and other services. Sales charges and sales charge discount
programs other than those shown in this section may apply if you purchase your
investment in the Funds through certain intermediaries. Different intermediaries
may impose different sales loads. It is the responsibility of your financial
intermediary to ensure that you obtain the proper sale charge and sales charge
discount. Investors investing in the Fund through an intermediary should consult
“Appendix A—Intermediary-Specific Sales Waivers”, which includes information
regarding broker-defined sales charges and related discount policies that apply
to purchases through certain intermediaries. More extensive information about
the Trust’s multi-class arrangements is included in the SAI, which may be
obtained free of charge by calling 866-876-8294.
Institutional
Class Shares
|
• |
|
Institutional
Class Shares are not subject to an initial sales charge, Rule 12b-1
fees or contingent deferred sales charges (“CDSC”), but are subject to a
minimum initial purchase of $1,000,000. See “How to Buy Shares—
Institutional Class” below. |
|
• |
|
Institutional
Shares may be available on certain brokerage platforms. An investor
transacting in Institutional Shares through a broker acting as an agent
for the investor may be required to pay a commission and/or other forms of
compensation to the broker. |
138
Class A
Shares
|
• |
|
You
pay an initial sales charge of up to 4.00% with respect to Ashmore
Emerging Markets Total Return Fund, Ashmore Emerging Markets Local
Currency Bond Fund, Ashmore Emerging Markets Corporate Income Fund,
Ashmore Emerging Markets Debt Fund and Ashmore Emerging Markets Corporate
Income ESG Fund, 5.25% with respect to Ashmore Emerging Markets Active
Equity Fund, Ashmore Emerging Markets Small-Cap Equity Fund, Ashmore
Emerging Markets Frontier Equity Fund, Ashmore Emerging Markets Equity
Fund, and Ashmore Emerging Markets Equity ESG Fund, and 2.25% with respect
to Ashmore Emerging Markets Short Duration Fund and Ashmore Emerging
Markets Low Duration Fund when you buy Class A Shares. The sales
charge is deducted from your investment so that not all of your purchase
payment is invested. |
|
• |
|
You
may be eligible for a reduction or a complete waiver of the initial sales
charge under a number of circumstances. For example, you normally pay no
sales charge if you purchase $1,000,000 or more of Class A Shares.
Please see the SAI for details. |
|
• |
|
Class A
Shares are subject to lower Rule 12b-1 fees than Class C Shares.
Therefore, Class A shareholders generally pay lower annual expenses
and receive higher dividends than Class C shareholders, but pay
initial sales charges that do not apply to Class C Shares.
|
|
• |
|
You
normally pay no CDSC when you redeem Class A Shares, although you may
pay a 1% CDSC if you purchase $1,000,000 or more of Class A Shares
(and therefore pay no initial sales charge) and then redeem the shares
during the first 18 months after your initial purchase. The Class A
CDSC is waived for certain categories of investors and does not apply if
you are otherwise eligible to purchase Class A Shares without a sales
charge. Please see the SAI for details. |
|
• |
|
Investors
who previously held shares of a Fund (other than Class A Shares) that
are converted to, or exchanged into, Class A Shares of the same Fund
subject to the policies and procedures of the financial intermediary
through which such shares are held and provided that such shares are no
longer subject to a CDSC may qualify for waivers or reductions of sales
charges. |
Class C
Shares
|
• |
|
You
do not pay an initial sales charge when you buy Class C Shares. The
full amount of your purchase payment is invested initially.
|
|
• |
|
You
normally pay a CDSC of 1% if you redeem Class C Shares during the
first year after your initial purchase. The Class C CDSC is waived
for certain categories of investors. |
|
• |
|
Class C
Shares are subject to higher Rule 12b-1 fees than Class A Shares.
Therefore, Class C shareholders normally pay higher annual expenses
and receive lower dividends than Class A shareholders.
|
All
Class C shares of a Fund will automatically convert to Class A shares
of the same Fund following the eight-year anniversary of purchase. Such
conversions are subject to certain limitations as described below under “How to
Sell or Exchange Shares—Automatic Conversion of Class C Shares Into
Class A Shares.”
The
following provides additional information about the sales charges, distribution
and servicing fees and other expenses associated with Class A and
Class C Shares. Some or all of the payments described below are paid or
“reallowed” to financial intermediaries. See “Payments to Financial
Intermediaries” in this Prospectus and the SAI for details.
Initial
Sales Charges—Class A Shares
This
section includes important information about sales charge reduction programs
available to investors in Class A Shares of the Funds and describes
information or records you may need to provide to the Funds’ transfer agent or
your financial intermediary in order to be eligible for sales charge reduction
programs.
Unless
you are eligible for a waiver, the public offering price you pay when you buy
Class A Shares of a Fund is the NAV of the shares plus an initial sales
charge. The initial sales charge varies depending upon the size of your
purchase, as set forth below. Investors who purchase $1,000,000 or more of a
Fund’s Class A Shares (for all Funds except the Ashmore Emerging Markets
Short Duration Fund, Ashmore Emerging Markets Low Duration Fund, Ashmore
Emerging Markets Debt Fund and Ashmore Emerging Markets Corporate Income ESG
Fund) or $500,000 or more of Class A Shares (for the Ashmore Emerging
Markets
139
Short
Duration Fund, Ashmore Emerging Markets Low Duration Fund, Ashmore Emerging
Markets Debt Fund and Ashmore Emerging Markets Corporate Income ESG Fund) (and
thus pay no initial sales charge) may be subject to a CDSC of 1% if they redeem
such shares during the first 18 months after their purchase. See “CDSCs on
Class A Shares” below.
All Funds, except Ashmore Emerging Markets Active
Equity Fund, Ashmore Emerging Markets Short Duration Fund, Ashmore Emerging
Markets Small-Cap Equity Fund, Ashmore Emerging Markets Frontier Equity Fund,
Ashmore Emerging Markets Equity Fund, Ashmore Emerging Markets Equity ESG Fund
and Ashmore Emerging Markets Low Duration Fund
|
|
|
|
|
|
|
|
|
| |
Amount
of Purchase |
|
Sales Charge as % of
Net Amount Invested |
|
Sales Charge as % of Public Offering Price |
$0–$99,999 |
|
|
|
4.17 |
% |
|
|
|
4.00 |
% |
$100,000–$249,999 |
|
|
|
3.63 |
% |
|
|
|
3.50 |
% |
$250,000–$499,999 |
|
|
|
2.56 |
% |
|
|
|
2.50 |
% |
$500,000–$999,999 |
|
|
|
2.04 |
% |
|
|
|
2.00 |
% |
$1,000,000
+ |
|
|
|
0.00 |
% |
|
|
|
0.00 |
% |
Ashmore Emerging Markets Active Equity Fund, Ashmore
Emerging Markets Small-Cap Equity Fund, Ashmore Emerging Markets Frontier Equity
Fund, Ashmore Emerging Markets Equity Fund and Ashmore Emerging Markets Equity
ESG Fund
|
|
|
|
|
|
|
|
|
| |
Amount
of Purchase |
|
Sales Charge as %
of Net Amount Invested |
|
Sales Charge as % of Public Offering
Price |
$0–$99,999 |
|
|
|
5.54 |
% |
|
|
|
5.25 |
% |
$100,000–$249,999 |
|
|
|
3.63 |
% |
|
|
|
3.50 |
% |
$250,000–$499,999 |
|
|
|
2.56 |
% |
|
|
|
2.50 |
% |
$500,000–$999,999 |
|
|
|
2.04 |
% |
|
|
|
2.00 |
% |
$1,000,000
+ |
|
|
|
0.00 |
% |
|
|
|
0.00 |
% |
Ashmore Emerging Markets Short Duration Fund and
Ashmore Emerging Markets Low Duration Fund
|
|
|
|
|
|
|
|
|
| |
Amount
of Purchase |
|
Sales Charge as %
of Net Amount Invested |
|
Sales Charge as % of Public Offering
Price |
$0–$99,999 |
|
|
|
2.30 |
% |
|
|
|
2.25 |
% |
$100,000–$249,999 |
|
|
|
1.27 |
% |
|
|
|
1.25 |
% |
$250,000–$499,999 |
|
|
|
1.01 |
% |
|
|
|
1.00 |
% |
$500,000
+ |
|
|
|
0.00 |
% |
|
|
|
0.00 |
% |
Investors
in the Funds may reduce or eliminate sales charges applicable to purchases of
Class A Shares through utilization of the Combined Purchase Privilege, the
Cumulative Quantity Discount (Right of Accumulation), a Letter of Intent or the
Reinstatement Privilege. These programs, which apply to purchases of one or more
of the Funds, are summarized below and are described in greater detail in the
SAI.
Right of Accumulation and Combined Purchase Privilege
(Breakpoints)
A
Qualifying Investor (as defined below) may qualify for a reduced sales charge on
Class A Shares (the “Combined Purchase Privilege”) by combining concurrent
purchases of the Class A Shares of one or more of the series of the Trust
into a single purchase. In addition, a Qualifying Investor may qualify for a
reduced sales charge on Class A Shares (the “Right of Accumulation” or
“Cumulative Quantity Discount”) by combining the purchase of Class A Shares
of one or more series of the Trust with the current aggregate net asset value of
all Class A, Class C and Institutional Class Shares of any series
of the Trust held by accounts for the benefit of such Qualifying Investor for
purposes of determining the applicable front-end sales charge.
140
The
term “Qualifying Investor” refers to:
|
(i) |
an
individual, such individual’s spouse, such individual’s children under the
age of 21 years, or such individual’s siblings (each a “family member”)
(including family trust* accounts established by such a family member);
|
|
(ii) |
a
trustee or other fiduciary for a single trust (except family trusts* noted
above), estate or fiduciary account although more than one beneficiary may
be involved; |
or
|
(iii) |
an
employee benefit plan of a single employer. |
For
example, the following illustrates the operation of the Right of Accumulation:
|
• |
|
Example:
If a shareholder owned Class C Shares of the Ashmore Emerging Markets
Total Return Bond Fund with a current net asset value of $20,000,
Class A Shares of the Ashmore Emerging Markets Local Currency Bond
Fund with a current net asset value of $40,000 and Class A Shares of
the Ashmore Emerging Markets Corporate Income Fund with a current net
asset value of $30,000, and the shareholder wished to purchase
Class A Shares of the Ashmore Emerging Markets Total Return Fund with
a purchase price of $40,000 (including a sales charge), the sales charge
for the $40,000 purchase would be at the 3.50% rate applicable to a single
$130,000 purchase of Class A Shares of the Ashmore Emerging Markets
Total Return Fund, rather than the 4.00% rate that would otherwise apply
to a $40,000 purchase. The discount will be applied only to the current
purchase (i.e., the $40,000 purchase), not to any previous transaction.
|
* |
For
the purpose of determining whether a purchase would qualify for a reduced
sales charge under the Combined Purchase Privilege or Right of
Accumulation, a “family trust” is one in which a family member(s)
described in section (i) above is/are a beneficiary/ies and such
person(s) and/or another family member is the trustee.
|
Please
see the SAI for details and for restrictions applicable to shares held by
certain employer-sponsored benefit programs.
Letter of Intent
An
investor may also obtain a reduced sales charge on purchases of Class A
Shares of the Funds by means of a written Letter of Intent, which expresses an
intent to invest not less than $100,000 (or more) within a period of 13 months
in Class A Shares of any series of the Trust. The maximum intended
investment allowable in a Letter of Intent is $1,000,000. Each purchase of
shares under a Letter of Intent will be made subject to the sales charge that
would apply to a single purchase of Class A Shares in the total dollar
amount indicated in the Letter of Intent. A Letter of Intent is not a binding
obligation to purchase the full amount indicated. Up to the first 4% of the
amount indicated in the letter of intent will be held in escrow (while remaining
registered in your name) to secure payment of the higher sales charges
applicable to the shares actually purchased in the event the full intended
amount is not purchased in the prescribed time period.
Reinstatement Privilege
A
Class A shareholder who has caused any or all of his shares to be redeemed
may reinvest all or any portion of the redemption proceeds in Class A
Shares of any series of the Trust at NAV without any sales charge, provided that
such investment is made within 120 calendar days after the redemption or
repurchase date. In addition, there is no sales charge on Class A Shares if
they are bought with proceeds from the sale of Institutional Class Shares
of a Fund or acquired in an exchange of Institutional Class Shares of a
Fund for Class A Shares of the same Fund, but only if the purchase is made
within 120 calendar days of the sale or distribution. The SAI contains more
information regarding this program.
Method of Valuation of Accounts
To
determine whether a shareholder qualifies for a reduction in the sales charge on
a purchase of Class A Shares of the Funds, the offering price of the shares
is used for purchases relying on the Combined Purchase Privilege or a Letter of
Intent and the amount of the total current purchase (including any sales charge)
plus the NAV (at the close of business on the day of the current purchase) of
shares previously acquired is used for the Cumulative Quantity Discount.
Sales at Net Asset Value
In
addition to the programs summarized above, each Fund may sell its Class A
Shares at NAV without an initial sales charge to certain types of accounts or
account holders, including, but not limited to: Trustees of the Funds;
affiliates of the Investment
141
Manager
or the Distributor (and employees of the same); employees of participating
brokers; certain trustees or other fiduciaries purchasing shares for retirement
plans; participants investing in certain “wrap accounts” and investors who
purchase shares through a participating broker who has waived all or a portion
of the payments it normally would receive from the Distributor at the time of
purchase. In addition, Class A Shares of the Funds issued pursuant to the
automatic reinvestment of income dividends or capital gains distributions are
issued at NAV and are not subject to any sales charges.
Required Shareholder Information and Records
In
order for investors in Class A Shares of the Funds to take advantage of
sales charge reductions, an investor or his or her financial intermediary must
notify the Funds’ transfer agent that the investor qualifies for such a
reduction. If the transfer agent is not notified that the investor is eligible
for these reductions, the transfer agent will be unable to ensure that the
reduction is applied to the investor’s account.
An
investor may have to provide certain information or records to his or her
financial intermediary or the transfer agent to verify the investor’s
eligibility for breakpoint privileges or other sales charge waivers. An investor
may be asked to provide information or records, including account statements,
regarding shares of the Funds held in:
|
• |
|
all
of the investor’s accounts held directly with the Funds or through a
financial intermediary; |
|
• |
|
any
account of the investor at another financial intermediary; and
|
|
• |
|
accounts
of related parties of the investor, such as members of the same family or
household, at any financial intermediary. |
The
Trust makes available free of charge, on the Funds’ website at
www.ashmoregroup.com, information regarding eliminations of and reductions in
sales charges associated with the Funds.
Contingent
Deferred Sales Charges (CDSCs)—Class A and Class C Shares
CDSCs on Class A Shares
Unless
a waiver applies, investors who purchase $1,000,000 or more of Class A
Shares (for all Funds except the Ashmore Emerging Markets Short Duration Fund,
Ashmore Emerging Markets Low Duration Fund, Ashmore Emerging Markets Debt Fund
and Ashmore Emerging Markets Corporate Income ESG Fund) or $500,000 or more of
Class A Shares (for the Ashmore Emerging Markets Short Duration Fund,
Ashmore Emerging Markets Low Duration Fund, Ashmore Emerging Markets Debt Fund
and Ashmore Emerging Markets Corporate Income ESG Fund) (and, thus, pay no
initial sales charge) will be subject to a 1% CDSC if the shares are redeemed
within 18 months of their purchase. The Class A CDSC does not apply if you
are otherwise eligible to purchase Class A Shares without an initial sales
charge or if you are eligible for a waiver of the CDSC.
CDSCs on Class C Shares
Unless
you are eligible for a waiver, if you sell (redeem) your Class C Shares
within the time periods specified below, you will pay a CDSC according to the
following schedule. For investors investing in Class C Shares of the Funds
through a financial intermediary, it is the responsibility of the financial
intermediary to ensure that the investor is credited with the proper holding
period for the shares redeemed.
|
|
|
|
| |
Years
Since Purchase Payment was Made |
|
Percentage Contingent Deferred Sales Charge |
First |
|
|
|
1.00 |
% |
Thereafter |
|
|
|
0.00 |
% |
How CDSCs are Calculated
For
purposes of calculating the CDSC, shares acquired through the reinvestment of
dividends or capital gains distributions will be redeemed first and will not be
subject to any CDSC. For the redemption of all other shares, any applicable CDSC
will be based on either your original purchase price or the then current NAV of
the shares being redeemed, whichever is lower. To illustrate this, consider
shares purchased at an NAV of $10. If a Fund’s NAV at the time of redemption is
$12, the CDSC
142
will
apply to the purchase price of $10. If the NAV at the time of redemption is $8,
the CDSC will apply to the $8 NAV. CDSCs will be deducted from the proceeds of
your redemption, not from amounts remaining in your account. In determining
whether a CDSC is payable, it is assumed that the shareholder will first redeem
the lot of shares that will incur the lowest CDSC.
Reductions and Waivers of CDSCs
The
CDSCs on Class A and Class C Shares may be reduced or waived under
certain purchase arrangements and for certain categories of investors. Please
see the SAI for details, which may be obtained free of charge by calling
866-876-8294.
Distribution
and Servicing (12b-1) Plans—Class A and Class C Shares
Each
Fund pays fees to the Distributor on an ongoing basis as compensation for the
services the Distributor renders and the expenses it bears in connection with
the sale and distribution of Fund shares (“distribution fees”) and/or in
connection with personal services rendered to Fund shareholders and the
maintenance of shareholder accounts (“servicing fees”). These payments are made
pursuant to Distribution and Servicing Plans (“12b-1 Plans”) adopted by the
Funds pursuant to Rule 12b‑1 under the 1940 Act.
Class A
and Class C Shares each have a separate 12b-1 Plan. Class A Shares pay
only servicing fees. Class C Shares pay both distribution and servicing
fees. The following lists the maximum annual rates at which the distribution
and/or servicing fees may be paid under each 12b-1 Plan (calculated as a
percentage of a Fund’s average daily net assets attributable to the particular
class of shares):
|
|
|
|
|
|
|
|
|
| |
|
|
Servicing Fee |
|
Distribution Fee |
Class A
Shares |
|
|
|
0.25 |
% |
|
|
|
None |
|
Class C
Shares |
|
|
|
0.25 |
% |
|
|
|
0.75 |
% |
Because
12b-1 fees are paid out of a Fund’s assets on an ongoing basis, over time these
fees will increase the cost of your investment and may cost you more than other
types of sales charges. Therefore, although Class C Shares of the Funds do
not pay initial sales charges, the distribution fees payable on Class C
may, over time, cost you more than the initial sales charge imposed on
Class A Shares of the Funds.
HOW
TO BUY SHARES
This
section and “How to Sell or Exchange Shares” below provide basic information
about how to buy, sell (redeem) and exchange shares of the Funds. More detailed
information about the Trust’s purchase, sale (redemption) and exchange
arrangements for shares of the Funds is provided in the SAI, which may be
obtained free of charge by calling 866-876-8294. The SAI provides more detailed
information about the basic arrangements described below and also describes
other special purchase, sale and exchange features offered by the Trust,
including: (i) wire transfer procedures, (ii) automatic purchase,
exchange and withdrawal programs, (iii) programs that establish a link from
your Fund account to your bank account, (iv) special arrangements for
tax-qualified retirement plans, (v) investment programs that allow you to
reduce or eliminate initial sales charges, and (vi) categories of investors
that are eligible for waivers or reductions of initial shares charges and CDSCs.
Please note that certain features may not be available for all classes of shares
of the Funds.
Class A
and Class C Shares
Investors
may purchase Class A or Class C Shares of the Funds at the relevant
NAV, plus any applicable sales charge for Class A Shares, subject to the
following minimum investment amounts:
|
|
|
|
|
|
|
| |
Minimum Initial Investment |
|
Minimum Subsequent Investments |
|
$ |
1,000 |
| |
|
$ |
50 |
|
The
Trust may lower or waive these minimum investment amounts for certain categories
of investors. The Trust currently waives the minimum initial investment amount
for (i) qualified retirement plans, (ii) clients of certain advisers
or investment programs (e.g., institutional consultants and family offices)
where the advisers or program sponsors charge a fixed-fee for
143
their
services and are not paid any compensation by the Funds, the Distributor or the
Investment Manager for services the adviser or program sponsor provides to its
clients, (iii) current and former Trustees of the Trust; and
(iv) officers, directors and employees of the Trust, the Investment Manager
and the Investment Manager’s affiliates. In order to be eligible to invest in
Institutional Class Shares below the above minimums through an advisory or
investment program, your adviser or investment program sponsor must have a
special arrangement with the Distributor that permits such investments. Please
see the SAI for additional details.
Class A
and Class C Shares of the Funds are generally available for purchase by all
investors, subject to satisfaction of the investment minimums noted above.
Class A and Class C Shares may be sold through financial
intermediaries, including brokers, dealers, insurance companies, third party
administrators and banks (“financial intermediaries”) that charge their
customers transaction or other fees with respect to their customers’ investments
in the Funds. Investors investing in the Funds through an intermediary should
consult “Appendix A—Intermediary-Specific Sales Waivers”, which includes
information regarding broker-defined sales charges and related discount policies
that apply to purchases through certain intermediaries. Class A and
Class C Shares are also available for purchase directly from the Trust.
Class A
and Class C Shares of the Funds are available for purchase by retirement
and savings plans, including Keogh plans, 401(k) plans, 403(b) custodial
accounts, and IRAs. The administrator of a plan or employee benefits office can
provide participants or employees with detailed information on how to
participate in the plan and how to elect a Fund as an investment option.
Participants in a retirement or savings plan may be permitted to elect different
investment options, alter the amounts contributed to the plan, or change how
contributions are allocated among investment options in accordance with the
plan’s specific provisions. The plan administrator or employee benefits office
should be consulted for details. For questions about participant accounts,
participants should contact their employee benefits office, the plan
administrator, or the organization that provides recordkeeping services for the
plan. Investors who purchase shares through retirement plans should be aware
that plan administrators may aggregate purchase and redemption orders for
participants in the plan. Therefore, there may be a delay between the time the
investor places an order with the plan administrator and the time the order is
forwarded to the Fund’s transfer agent for execution.
Each
Fund sells its Class A and Class C Shares at their NAV, plus any
applicable sales charge for Class A Shares, next determined after receipt
of your purchase request in good order (a purchase request is in good order if
it meets the requirements set out below and, if applicable, in the Account
Application, and otherwise meets the requirements implemented from time to time
by the Fund’s transfer agent or the Fund.) In order for you to receive a Fund’s
next determined NAV, the Fund or a financial intermediary authorized to receive
orders on behalf of the Fund effective as of the time of their receipt
(“Authorized Financial Intermediaries”) must receive your order before the NAV
Calculation Time. Because intermediaries’ processing times may vary, please ask
your financial intermediary or plan administrator, if any, when your account
will be credited. The Trust and the Distributor reserve the right to reject any
request to purchase shares of the Funds.
If
you purchase Class A or Class C Shares of the Funds through your
broker, dealer or other financial intermediary, the financial intermediary may
establish higher minimum investment requirements than the Trust. Financial
intermediaries and their designees may also charge investors a fee for effecting
transactions in shares of the Funds and additional amounts (which may vary) in
return for their services, in addition to any fees the Funds charge. Please
consult a representative of your financial intermediary for further information.
Shares of the Funds you purchase through your financial intermediary will
normally be held in your account with that firm.
Sales
charges and sales charge discount programs other than those shown in this
section may apply if you purchase your investment in the Funds through certain
intermediaries. Different intermediaries may impose different sales loads.
Please see “Appendix A—Intermediary-Specific Sales Waivers” for more information
regarding sales charges and sales charge discount programs that will apply if
you buy or sell shares of the Funds through certain intermediaries. It is the
responsibility of your financial intermediary to ensure that you obtain the
proper sale charge and sales charge discount.
144
Purchases by check
To
purchase shares by check, you should mail a check (in U.S. dollars) payable to
the Fund in which you wish to invest at the address specified below. The Fund’s
transfer agent will not accept third-party checks or starter checks. You should
direct your check and your completed Account Application as follows:
|
| |
REGULAR
MAIL |
|
OVERNIGHT OR EXPRESS MAIL |
Ashmore
Funds
c/o
The Northern Trust Company
PO
Box 4766
Chicago,
IL 60680-4766 |
|
Ashmore
Funds
c/o
The Northern Trust Company
333
South Wabash Avenue
Attn:
Funds Center, Floor 38
Chicago,
IL 60604 |
For
initial purchases, a completed Account Application must accompany your check. An
Account Application to purchase Class A or Class C Shares of the Funds
may be obtained by calling the Funds’ transfer agent, Northern Trust, at
866‑876‑8294 or going to www.ashmoregroup.com. Additional documentation may be
required in accordance with the USA PATRIOT Act.
Orders
sent to the transfer agent’s P.O. Box are not deemed “received” until they
arrive at the transfer agent’s facility. This may affect the date on which they
are processed.
Purchases by bank wire
You
may purchase shares by making your initial investment by wire. A completed
Account Application, which may be obtained by calling the Funds’ transfer agent,
Northern Trust, at 866-876-8294 or by going to www.ashmoregroup.com, must
precede your order. Upon receipt of the Account Application, the transfer agent
will assign you an account number. The transfer agent will process wire orders
received prior to the NAV Calculation Time on each day the NYSE is open for
trading. The transfer agent will process wire orders received after that time at
the next determined NAV. Please call the transfer agent at 866-876-8294 to give
notice that you will send funds by wire and obtain a wire reference number.
Instruct your bank to wire funds with the assigned reference number as follows:
The
Northern Trust Company
50
S. LaSalle St.
Chicago,
IL 60603
ABA
No.: 071000152
Account:
5201694000
Reference:
ASH1034FFFAAAAAAA where FFF is the fund # and AAAAAAA is the account #
(ex:
ASH10340131234567)
The
Funds’ transfer agent will not process your purchase until it receives the wired
funds.
Acceptance
of your order may be delayed pending receipt of additional documentation, such
as copies of corporate resolutions and instruments of authority, from
corporations, administrators, executors, personal representatives, directors, or
custodians.
Automatic purchases
After
your initial purchase of Class A or Class C Shares, you can make
regular additional investments of $50 or more per month or quarter in
Class A or Class C Shares of a Fund through automatic deductions from
your bank account. Please complete the appropriate section of the Account
Application if you would like to utilize this option. For more information,
please call 866-876-8294. If you purchase shares through a financial
intermediary, your financial intermediary may also provide automatic purchase
options. Please contact your financial intermediary for details.
Purchases in kind
Investors
may purchase Class A or Class C Shares of a Fund for cash or in
exchange for securities, subject to the determination by the Investment Manager
in its discretion that the securities are acceptable and that such a transaction
is in
145
the
best interests of the Fund. (For purposes of determining whether securities will
be acceptable, the Investment Manager will consider, among other things, whether
they are liquid securities of a type consistent with the investment objective
and policies of the Fund and have a readily ascertainable value.) If a Fund
receives securities from an investor in exchange for shares of the Fund, the
Fund will, under some circumstances, have the same tax basis in the securities
as the investor had prior to the exchange (and the Fund’s gain for tax purposes
would be calculated with regard to the investor’s tax basis), and in such cases
the Fund’s holding period in those securities would include the investor’s
holding period. Any gain on the sale of securities received in exchange for
shares of the Fund would be subject to distribution as capital gain to all of
the Fund’s shareholders. (In some circumstances, receipt of securities from an
investor in exchange for shares of the Fund may be a taxable transaction to the
investor, in which case the Fund’s tax basis in the securities would reflect the
fair market value of the securities on the date of the exchange, and its holding
period in the securities would begin on that date.) A Fund values securities
accepted by the Investment Manager in the same manner as the Fund’s other
portfolio securities, as of the time of the next determination of the Fund’s
NAV. Although each Fund seeks to determine the market value of securities
contributed to the Fund, any valuation that does not reflect market value may
dilute the interests of the purchasing shareholder or the other shareholders of
the Fund. All rights reflected in the market price of accepted securities at the
time of valuation become the property of the Fund and must be delivered to the
Fund upon receipt by the investor. Investors may realize a taxable gain or loss
upon the exchange. Investors interested in purchases through exchange should
telephone the transfer agent at 866‑876‑8294, their Ashmore client
representative, or other financial intermediary.
Other information
The
Funds do not issue share certificates. The Trust and its service providers
generally will not be liable for any losses due to unauthorized or fraudulent
purchase or redemption requests.
Institutional
Class Shares
Investors
may purchase Institutional Class Shares of the Funds at the relevant NAV
without a sales charge, subject to the following minimum investment amounts:
|
|
|
|
|
|
|
| |
Minimum Initial Investment |
|
Minimum Subsequent Investments |
|
$ |
1,000,000 |
| |
|
$ |
5,000 |
|
The
Trust may lower or waive these minimum investment amounts for certain categories
of investors. The Trust currently waives the minimum initial investment amount
for (i) qualified retirement plans and other employee benefit plans,
(ii) 529 plans, (iii) clients of certain fee-based advisers, fee-based
investment programs, including wrap fee programs, or other fee-based investment
platforms, (iv) group variable annuities, (v) current and former
Trustees of the Funds; (vi) officers, directors and employees of the Funds,
the Investment Manager and the Investment Manager’s affiliates, and
(vii) certain other investors pursuant to procedures adopted by the Board
of Trustees. In order to be eligible to invest in Institutional
Class Shares below the above minimums through a fee-based adviser,
fee-based investment program or fee-based investment platform, your adviser,
investment program or investment platform must have a special arrangement with
the Distributor that permits such investments. Please see the SAI for additional
details.
Institutional
Class Shares are offered primarily for direct investment by investors such
as pension and profit sharing plans, employee benefit trusts, endowments,
foundations, corporations and high net worth individuals. Institutional
Class Shares may also be offered through certain fund networks and
financial intermediaries (“financial intermediaries”) that charge their
customers transaction or other fees with respect to their customers’ investments
in the Funds.
Institutional
Class Shares of the Funds are available for purchase by retirement and
savings plans, including Keogh plans, 401(k) plans, 403(b) custodial accounts,
and IRAs. The administrator of a plan or employee benefits office can provide
participants or employees with detailed information on how to participate in the
plan and how to elect a Fund as an investment option. Participants in a
retirement or savings plan may be permitted to elect different investment
options, alter the amounts contributed to the plan, or change how contributions
are allocated among investment options in accordance with the plan’s specific
provisions. The plan administrator or employee benefits office should be
consulted for details. For questions about participant accounts, participants
should contact their employee benefits office, the plan administrator, or the
organization that provides recordkeeping services for the plan. Investors who
purchase shares through retirement plans should be aware that plan
administrators may aggregate purchase and redemption orders for participants in
the plan. Therefore, there may be a delay between the time the investor places
an order with the plan administrator and the time the order is forwarded to the
Fund’s transfer agent for execution.
146
Each
Fund sells its Institutional Class Shares at their NAV next determined
after receipt of your purchase request in good order (a purchase request is in
good order if it meets the requirements set out below and, if applicable, in the
Account Application, and otherwise meets the requirements implemented from time
to time by the Fund’s transfer agent or the Fund.) In order for you to receive a
Fund’s next determined NAV, the Fund or an Authorized Financial Intermediary
must receive your order before the NAV Calculation Time. Because intermediaries’
processing times may vary, please ask your financial intermediary or plan
administrator, if any, when your account will be credited. The Trust and the
Distributor reserve the right to reject any request to purchase shares of the
Funds.
Plan
administrators, brokers or other financial intermediaries and their designees
may charge investors a fee for effecting transactions in shares of the Funds, in
addition to any fees the Funds may charge, and may impose other limitations on
buying and selling shares. Please consult a representative of your financial
intermediary for further information.
Purchases by check
To
purchase shares by check, you should mail a check (in U.S. dollars) payable to
the Fund in which you wish to invest at the address specified below. The Fund’s
transfer agent will not accept third-party checks or starter checks. You should
direct your check and your completed Account Application as follows:
|
| |
REGULAR
MAIL |
|
OVERNIGHT OR EXPRESS MAIL |
Ashmore
Funds
c/o
The Northern Trust Company
PO
Box 4766
Chicago,
IL 60680-4766 |
|
Ashmore
Funds
c/o
The Northern Trust Company
333
South Wabash Avenue
Attn:
Funds Center, Floor 38
Chicago,
IL 60604 |
For
initial purchases, a completed Account Application must accompany your check. An
Account Application to purchase Institutional Class of the Funds may be
obtained by calling the Funds’ transfer agent, Northern Trust, at 866-876-8294
or going to www.ashmoregroup.com. Additional documentation may be required in
accordance with the USA PATRIOT Act.
Orders
sent to the transfer agent’s P.O. Box are not deemed “received” until they
arrive at the transfer agent’s facility. This may affect the date on which they
are processed.
Purchases by bank wire
You
may purchase shares by making your initial investment by wire. A completed
Account Application, which may be obtained by calling the Funds’ transfer agent,
Northern Trust, at 866-876-8294 or by going to www.ashmoregroup.com, must
precede your order. Upon receipt of the Account Application, the transfer agent
will assign you an account number. The transfer agent will process wire orders
received prior to the NAV Calculation Time on each day the NYSE is open for
trading. The transfer agent will process wire orders received after that time at
the next determined NAV. Please call the transfer agent at 866-876-8294 to give
notice that you will send funds by wire and obtain a wire reference number.
Instruct your bank to wire funds with the assigned reference number as follows:
The
Northern Trust Company
50
S. LaSalle St.
Chicago,
IL 60603
ABA
No.: 071000152
Account:
5201694000
Reference:
ASH1034FFFAAAAAAA where FFF is the fund # and AAAAAAA is the account #
(ex:
ASH10340131234567)
The
Funds’ transfer agent will not process your purchase until it receives the wired
funds.
Acceptance
of your order may be delayed pending receipt of additional documentation, such
as copies of corporate resolutions and instruments of authority, from
corporations, administrators, executors, personal representatives, directors, or
custodians.
147
Automatic purchases
After
your initial purchase of Institutional Class Shares, you can make regular
additional investments of $100 or more per month or quarter in Institutional
Class Shares of a Fund through automatic deductions from your bank account.
Please complete the appropriate section of the Account Application if you would
like to utilize this option. For more information, please call 866-876-8294. If
you purchase shares through a financial intermediary, your financial
intermediary may also provide automatic purchase options. Please contact your
financial intermediary for details.
Purchases in kind
Investors
may purchase Institutional Class Shares of a Fund for cash or in exchange
for securities, subject to the determination by the Investment Manager in its
discretion that the securities are acceptable and that such a transaction is in
the best interests of the Fund. (For purposes of determining whether securities
will be acceptable, the Investment Manager will consider, among other things,
whether they are liquid securities of a type consistent with the investment
objective and policies of the Fund and have a readily ascertainable value.) If a
Fund receives securities from an investor in exchange for shares of the Fund,
the Fund will, under some circumstances, have the same tax basis in the
securities as the investor had prior to the exchange (and the Fund’s gain for
tax purposes would be calculated with regard to the investor’s tax basis), and
in such cases the Fund’s holding period in those securities would include the
investor’s holding period. Any gain on the sale of securities received in
exchange for shares of the Fund would be subject to distribution as capital gain
to all of the Fund’s shareholders. (In some circumstances, receipt of securities
from an investor in exchange for shares of the Fund may be a taxable transaction
to the investor, in which case the Fund’s tax basis in the securities would
reflect the fair market value of the securities on the date of the exchange, and
its holding period in the securities would begin on that date.) A Fund values
securities accepted by the Investment Manager in the same manner as the Fund’s
other portfolio securities, as of the time of the next determination of the
Fund’s NAV. Although each Fund seeks to determine the market value of securities
contributed to the Fund, any valuation that does not reflect market value may
dilute the interests of the purchasing shareholder or the other shareholders of
the Fund. All rights reflected in the market price of accepted securities at the
time of valuation become the property of the Fund and must be delivered to the
Fund upon receipt by the investor. Investors may realize a taxable gain or loss
upon the exchange. Investors interested in purchases through exchange should
telephone the transfer agent at 866‑876‑8294, their Ashmore client
representative, or other financial intermediary.
Other information
The
Funds do not issue share certificates. The Trust and its service providers
generally will not be liable for any losses due to unauthorized or fraudulent
purchase or redemption requests.
HOW
TO SELL OR EXCHANGE SHARES
When you may redeem or exchange Class A or
Class C Shares
You
may sell your Class A or Class C Shares back to a Fund or exchange
your Class A or Class C Shares of one Fund for shares of the same
class of another series of the Trust on any day the NYSE is open through your
financial intermediary, by sending a letter of instruction to the Funds, or by
calling the Funds’ transfer agent at 866-876-8294. You may also be eligible to
exchange your Class A, Class C or Institutional Class Shares of
one Fund for Class A or Institutional Class Shares (as applicable) of
the same Fund if you (i) have invested in Class A or Class C
Shares through a comprehensive or “wrap” fee program or other fee-based program
sponsored by a broker-dealer, bank, financial intermediary or registered
investment adviser, (ii) you have invested in Class A or Class C
Shares and are in the process of transferring shares to such program or
(iii) a financial intermediary automatically exchanges Class C for
Class A Shares of the same Fund without the imposition of any front-end or
contingent deferred sales charges, provided that any such exchange may be made
only with respect to shares following the third-year anniversary of their
purchase and only where the shares to be exchanged are not then subject to a
CDSC (each, an “intra-Fund exchange”). In addition, if you have purchased
Class A or Class C Shares as part of an employee benefit plan or
employer-sponsored retirement plan, you may be potentially eligible to invest in
Institutional Class Shares by reason of your investment in such employee
benefit plan or employee sponsored retirement plan. In such event, subject to
the discretion of the Distributor and the limitations noted in this Prospectus,
you may exchange your Class A or Class C Shares for Institutional
Class Shares of equal aggregate value of the same Fund. No sales charges or
other charges will apply to any such exchange. Excluding intra-Fund exchanges
initiated by a financial intermediary on behalf of a shareholder, an intra-Fund
exchange will generally be processed only in instances where the accounts are
not currently subject to a CDSC and only as part of a pre-arranged,
multiple-client transaction through the particular financial services
148
firm
offering the comprehensive or wrap program or other fee-based program or
involving an employee benefit plan or employer-sponsored retirement plan where
the Class A or Class C Shares are available. The Distributor may agree
with financial intermediaries to allow this exchange privilege for accounts
currently subject to a CDSC and outside of pre-arranged, multiple-client
transactions. In such situations, the financial intermediary may or may not
reimburse the Distributor for a portion of any CDSC that the Distributor would
have otherwise collected on the transaction or a portion of the distribution
fees previously advanced by the Distributor to the financial intermediary in
connection with the initial sale of the Class A or Class C Shares. You
should contact a representative of your financial intermediary to learn more
about the details of this intra-Fund exchange feature.
When
you sell your Class A or C Shares back to a Fund, you will receive an
amount equal to the NAV of the shares, minus any applicable CDSC or other fee.
When you exchange your Class A or Class C Shares for shares of another
series of the Trust or for Institutional Class Shares of the same Fund in
accordance with the Trust’s exchange privilege, you will not pay any initial
sales charges or CDSCs, and, if applicable, the original purchase date(s) for
the shares exchanged will carry over to your investment in Class A or
Class C Shares of the new series of the Trust for purposes of calculating
any CDSC that you may pay upon redemption of such exchanged shares from the new
series of the Trust.
Currently,
the Funds do not impose any exchange or redemption fees (other than any
applicable CDSC). However, the redemption and exchange policies and fees charged
by financial intermediaries may be different than those of the Funds. For
instance, banks, brokers, dealers and other financial intermediaries may charge
transaction fees and may set different investment minimums or limitations on
exchanging or redeeming Class A or Class C Shares. Please consult a
representative of your financial intermediary for further information.
For
information on how to sell or exchange Class A or Class C Shares that
were purchased through your employee benefit plan or employer-sponsored
retirement plan, including any restrictions and charges that the plan may
impose, please consult your employer or plan administrator.
Brokers,
dealers and other financial intermediaries or other agents may charge investors
a fee for effecting transactions in shares of a Fund, in addition to any fees
the Fund charges.
For
taxable shareholders, an exchange is generally a taxable event that will
generate capital gains or losses, and special rules may apply in computing tax
basis when determining a gain or loss, although an intra-Fund exchange generally
will not generate a gain or loss for a shareholder for U.S. federal income tax
purposes. See “Taxes” in this Prospectus and “Taxes” in the SAI.
A
bank, broker, dealer, or certain other financial institutions must guarantee the
signature(s) of all account holders for any redemption request in excess of
$100,000 and any redemption request if the proceeds are to be sent to an address
or account other than the address or account on file with the transfer agent.
The Stamp 2000 Medallion Guarantee is the only acceptable form of guarantee. A
shareholder can obtain this signature guarantee from a commercial bank, savings
bank, credit union, or broker-dealer that participates in one of the Medallion
signature guarantee programs. The Funds may waive or require a Medallion
signature guarantee under certain circumstances at the Funds’ sole discretion.
You may redeem your shares by telephone only if you elected the telephone
redemption privilege option on your Account Application or otherwise in writing.
Telephone redemption proceeds will be sent only to you at an address on record
with the Fund for at least 30 days. Unless otherwise agreed, you may only
exercise the telephone redemption privilege to redeem shares worth not more than
$100,000 per Ashmore Fund per day.
Each
Fund intends to pay redemption proceeds within three business days and in any
event within seven days after the request for redemption is received in good
order. Each Fund may suspend redemptions or postpone payment for more than seven
days under certain circumstances, including when the NYSE is closed or trading
thereon is restricted or during emergency or other circumstances, including as
determined by the SEC. If you paid for your Class A or Class C Shares
by check, the Funds will not send you your redemption proceeds until the check
you used to pay for the shares has cleared, which may take up to 10 calendar
days from the purchase date.
The
Trust and its service providers generally will not be liable for any losses due
to unauthorized or fraudulent purchase or redemption requests.
149
Automatic Conversion of Class C Shares Into
Class A Shares
All
Class C shares of a Fund held in accounts directly with the Trust’s
transfer agent will automatically convert to Class A shares of the same
Fund on or about the first business day of the month following the eight-year
anniversary of purchase. The timing of the conversion for Class C
shareholders who purchase and hold their Fund shares through different financial
intermediaries may vary following the eight-year anniversary of purchase. Such
conversions will be effected on the basis of the relative net asset values of
the Class C and Class A shares involved in the conversion. See
“Distribution of Trust Shares and Multiple Share Classes—Additional Information
About Automatic Conversion of Class C Shares Into Class A Shares” in
the Statement of Additional Information for additional detail and certain
limitations.
When you may redeem or exchange Institutional
Class Shares
You
may sell your Institutional Class Shares back to a Fund or exchange your
Institutional Class Shares of one Fund for Institutional Class Shares
of another series of the Trust on any day the NYSE is open by sending a letter
of instruction to the Funds, or by calling the Funds’ transfer agent at
866-876-8294. Institutional Class Shares of a Fund may not be exchanged for
Class C Shares of the same Fund.
Currently,
the Funds do not impose any exchange or redemption fees on Institutional
Class Shares. However, the redemption and exchange policies and fees
charged by financial intermediaries may be different than those of the Funds.
For instance, banks, brokers, retirement plans and financial advisers may charge
transaction fees and may set different investment minimums or limitations on
exchanging or redeeming Institutional Class Shares. Please consult a
representative of your financial intermediary for further information.
For
information on how to sell or exchange Institutional Class Shares that were
purchased through your employee benefit plan or employer-sponsored retirement
plan, including any restrictions and charges that the plan may impose, please
consult your employer or plan administrator.
Brokers,
plan administrators or other agents or intermediaries may charge investors a fee
for effecting transactions in shares of a Fund, in addition to any fees the Fund
charges.
For
taxable shareholders, an exchange is generally a taxable event that will
generate capital gains or losses, and special rules may apply in computing tax
basis when determining a gain or loss. See “Taxes” in this Prospectus and
“Taxes” in the SAI.
A
bank, broker, dealer, or certain other financial institutions must guarantee the
signature(s) of all account holders for any redemption request if the proceeds
are to be sent to an address or account other than the address or account on
file with the transfer agent. The Stamp 2000 Medallion Guarantee is the only
acceptable form of guarantee. A shareholder can obtain this signature guarantee
from a commercial bank, savings bank, credit union, or broker-dealer that
participates in one of the Medallion signature guarantee programs. The Funds may
waive or require a Medallion signature guarantee under certain circumstances at
the Funds’ sole discretion. You may redeem your shares by telephone only if you
elected the telephone redemption privilege option on your Account Application or
otherwise in writing. Telephone redemption proceeds will be sent only to you at
an address on record with the Fund for at least 30 days. Unless otherwise
agreed, you may only exercise the telephone redemption privilege to redeem
shares worth not more than $100,000 per Ashmore Fund per day.
Each
Fund intends to pay redemption proceeds within three business days and in any
event within seven days after the request for redemption is received in good
order. Each Fund may suspend redemptions or postpone payment for more than seven
days under certain circumstances, including when the NYSE is closed or trading
thereon is restricted or during emergency or other circumstances, including as
determined by the SEC. If you paid for your Institutional Class Shares by
check, the Funds will not send you your redemption proceeds until the check you
used to pay for the shares has cleared, which may take up to 10 calendar days
from the purchase date.
The
Trust and its service providers generally will not be liable for any losses due
to unauthorized or fraudulent purchase or redemption requests.
Involuntary redemptions
If,
because of your redemptions, an account balance for a Fund falls below a minimum
amount set by the Fund (presently $500 for Class A and Class C Shares
and $500,000 for Institutional Class Shares), the Trust may choose to
redeem the shares in the account and pay you for them, subject to applicable
law. A shareholder will receive at least 30 days’ written notice
150
before
the Trust redeems such shares, and the shareholder may purchase additional
shares to exceed the applicable minimum at any time prior to the end of the
notice period to avoid a redemption. Each Fund may also redeem shares in an
account if the account holds shares of the Fund above a maximum amount set by
the Trustees. There is currently no maximum, but the Trustees may establish one
at any time, which could apply to both present and future shareholders.
Suspension
Each
Fund may suspend the right of redemption of the Fund or postpone payment by the
Fund during any period when: (1) trading on the NYSE is restricted, as
determined by the SEC, or the NYSE is closed; (2) the SEC has by order
permitted such suspension; or (3) an emergency (as defined by rules of the
SEC) exists, making disposal of portfolio investments or determination of a
Fund’s NAV not reasonably practicable.
Redemptions in kind
Each
Fund may redeem in kind in accordance with its board-approved procedures
applicable to such redemptions in kind, but the Funds do not expect to do so
under normal circumstances. In unusual circumstances, as determined by the
Investment Manager in its sole discretion (such as stressed market conditions),
a Fund may make payment of redemption requests wholly or partly using securities
held by the Fund with a current market value equal to the portion of the
redemption price being paid in kind. The distributed securities are valued in
the same manner as they are valued for purposes of computing the Fund’s net
asset value.
In
determining whether to effect a redemption in kind, the Fund may consider
operational limitations that may prevent the effective transfer of securities in
kind, including the set-up of any relevant accounts (international or local),
the capability of a shareholder’s relevant custodian, retail accounts that
cannot accept securities in kind or omnibus accounts that would limit the
account’s ability to distribute the securities to beneficial owners fairly.
During times of deteriorating market conditions or market stress, in cases where
the Investment Manager believes a Fund’s redemption fee (if any) will not fairly
compensate a Fund for transaction costs, or in cases where a significant portion
of a Fund’s portfolio is comprised of less-liquid securities, a Fund is more
likely to limit cash redemptions and use portfolio securities to pay the
redemption price to protect the interest of all Fund shareholders. If a Fund
redeems your shares in kind, you should expect to incur brokerage expenses and
other transaction costs upon the disposition of the securities you receive from
the Fund. In addition, the prices of those securities may change between the
time when you receive the securities and the time when you are able to dispose
of them. The Trust may pay redemption proceeds in any amount with respect to a
Fund in whole or in part by a distribution in kind of securities held by the
Fund in lieu of cash. Notwithstanding the above, the Funds will pay in cash all
requests for redemption by any shareholder of record, limited in amount with
respect to each shareholder during any 90-day period to the lesser of
(i) $250,000, or (ii) 1% of the NAV of the Fund.
In general
The
Funds typically expect that a Fund will hold cash or cash equivalents to meet
redemption requests. The Funds may also use the proceeds of orders to purchase
Fund shares or the proceeds from the sale of portfolio securities to meet
redemption requests, if consistent with the management of a Fund. The Funds may
have to sell Fund holdings, including in down markets, to meet heavier than
usual redemption requests. For example, under stressed or abnormal market
conditions or circumstances, including circumstances adversely affecting the
liquidity of a Fund’s investments, a Fund may be more likely to be forced to
sell Fund holdings to meet redemptions than under normal market conditions. In
these situations, the Funds may have to sell Fund holdings that it would
otherwise prefer not to sell because, among other reasons, the current price to
be received is less than the Fund’s perceived value of the holdings. The Funds
also may pay redemption proceeds using cash obtained through borrowing
arrangements that may be available from time to time.
Cost basis reporting
When
you redeem or exchange Fund shares, the Fund or, if you purchase your shares
through a financial intermediary, your financial intermediary generally is
required to report to you and the IRS on an IRS Form 1099-B cost-basis
information with respect to those shares, as well as information about whether
any gain or loss on your redemption or exchange is short-or long-term and
whether any loss is disallowed under the “wash sale” rules. This reporting
requirement is effective for Fund shares acquired by you (including through
dividend reinvestment) on or after January 1, 2012, when you subsequently
redeem or exchange those shares. Such reporting generally is not required for
shares held in a retirement or other tax-advantaged account. Cost basis is
typically the price you pay for your shares (including reinvested dividends),
with
151
adjustments
for certain commissions, wash-sales, organizational actions, and other items,
including any returns of capital paid to you by the Fund in respect of your
shares. Cost basis is used to determine your net gains and losses on any shares
you redeem or exchange in a taxable account.
The
Fund or your financial intermediary, as applicable, will permit you to select
from a list of alternative cost basis reporting methods to determine your cost
basis in Fund shares acquired on or after January 1, 2012. If you do not
select a particular cost basis reporting method, the Fund or financial
intermediary will apply its default cost basis reporting method to your shares.
If you hold your shares directly in a Fund account, the Fund’s default method
(or the method you have selected by notifying the Fund) will apply; if you hold
your shares in an account with a financial intermediary, the intermediary’s
default method (or the method you have selected by notifying the intermediary)
will apply. Please contact the Funds at
[email protected] or your
financial intermediary, as applicable, for more information on the available
methods for cost basis reporting and how to select or change a particular
method. You should consult your tax advisor concerning the application of these
rules to your investment in the Fund, and to determine which available cost
basis method is best for you. Please note that you are responsible for
calculating and reporting your cost basis in Fund shares acquired prior to
January 1, 2012 as this information will not be reported to you by the Fund
and may not be reported to you by your financial intermediary.
152
DIVIDENDS
AND DISTRIBUTIONS
The
Funds declare and pay distributions of their net investment income and net
realized capital gain with the frequency shown below.
|
|
|
| |
Fund |
|
Net Investment Income |
|
Net
Realized Capital Gain |
Ashmore Emerging Markets Total Return
Fund |
|
Declared Daily and Paid
Monthly |
|
Declared and Paid At Least
Annually |
|
| |
Ashmore Emerging Markets Local Currency
Bond Fund |
|
Declared and Paid At Least
Quarterly |
|
Declared and Paid At Least
Annually |
|
| |
Ashmore Emerging Markets Corporate Income
Fund |
|
Declared Daily and Paid Monthly |
|
Declared and Paid At Least
Annually |
|
| |
Ashmore Emerging Markets Short Duration
Fund |
|
Declared Daily and Paid Monthly |
|
Declared and Paid At Least
Annually |
|
| |
Ashmore Emerging Markets Active Equity
Fund |
|
Declared and Paid At Least Quarterly |
|
Declared and Paid At Least
Annually |
|
| |
Ashmore Emerging Markets Small-Cap Equity
Fund |
|
Declared and Paid At Least Quarterly |
|
Declared and Paid At Least Annually |
|
| |
Ashmore Emerging Markets Frontier Equity
Fund |
|
Declared and Paid At Least Quarterly |
|
Declared and Paid At Least Annually |
|
| |
Ashmore Emerging Markets Equity Fund |
|
Declared and Paid At Least Quarterly |
|
Declared and Paid At Least Annually |
|
| |
Ashmore Emerging Markets Equity ESG
Fund |
|
Declared and Paid At Least Quarterly |
|
Declared and Paid At Least Annually |
|
| |
Ashmore Emerging Markets Low Duration
Fund |
|
Declared Daily and Paid Monthly |
|
Declared and Paid At Least Annually |
|
| |
Ashmore Emerging Markets Debt Fund |
|
Declared Daily and Paid Monthly |
|
Declared and Paid At Least Annually |
|
| |
Ashmore Emerging Markets Corporate Income
ESG Fund |
|
Declared Daily and Paid Monthly |
|
Declared and Paid At Least
Annually |
You
can choose from the following distribution options:
|
• |
|
Reinvest
all distributions in additional shares of the same class of the Fund;
|
|
• |
|
Receive
distributions from net investment income in cash while reinvesting capital
gains distributions in additional shares of the same class of the Fund;
|
|
• |
|
Reinvest
distributions from net investment income in additional shares of the same
class of the Fund while receiving capital gain distributions in cash; or
|
|
• |
|
Receive
all distributions from net investment income and capital gain in cash.
|
You
can change your distribution option by notifying your financial intermediary or
The Northern Trust Company, in writing.
If
you do not select an option when you open your account, all distributions will
be reinvested in additional shares of the same class of the Fund making the
distribution.
When
you buy Fund shares, your method of payment will determine when distributions
begin to accrue. For example, Fund shares purchased through a financial
intermediary using the National Securities Clearing Corporation generally begin
to earn distributions on the business day the Trust (or the transfer agent)
receives payment for those shares. If you purchase Fund shares directly from the
Trust by check or wire, those shares generally begin to earn distributions on
the first business day
153
following
the day you placed your purchase order. Shares sold through a financial
intermediary using the National Securities Clearing Corporation generally earn
distributions until, but not including, the business day redemption proceeds are
processed. Shares sold other than through a financial intermediary generally
earn distributions until, but not including, the first business day following
the day of redemption.
FREQUENT
PURCHASES AND REDEMPTIONS OF FUND SHARES
The
Trust encourages shareholders to invest in the Funds as part of a long-term
investment strategy and discourages excessive, short-term trading and other
abusive trading practices, sometimes referred to as “market timing.” However,
because the Trust will not always be able to detect market timing or other
abusive trading activity, shareholders should not assume that the Trust will be
able to detect or prevent all market timing or other trading practices that may
disadvantage the Funds or adversely affect their performance.
The
Funds’ investment strategies may make the Funds more susceptible to market
timing activities. Because the Funds will invest in non-U.S. securities, they
may be subject to the risk that an investor may seek to take advantage of a
delay between the change in value of a Fund’s non-U.S. portfolio securities and
the determination of the Fund’s NAV as a result of different closing times of
U.S. and non-U.S. markets by buying or selling Fund shares at a price that does
not reflect their true value. A similar risk exists for the Funds’ potential
investment in high-yield or other securities that are thinly traded and more
difficult to value. Such activities may have a detrimental effect on the Funds
and their shareholders. For example, depending upon various factors such as the
size of a Fund and the amount of its assets maintained in cash, short-term or
excessive trading by Fund shareholders may interfere with the efficient
management of the Fund’s portfolio, increase transaction costs and taxes, and
may harm the performance of the Fund and its shareholders.
To
the extent that there is a delay between a change in the value of a mutual
fund’s portfolio holdings, and the time when that change is reflected in the NAV
of the fund’s shares, that fund is exposed to the risk that investors may seek
to exploit this delay by purchasing or redeeming shares at NAVs that do not
reflect appropriate fair value prices. The Trust seeks to deter and prevent this
activity, sometimes referred to as “stale price arbitrage,” by the appropriate
use of “fair value” pricing of the Funds’ portfolio securities. See “How the
Funds’ Shares Are Priced” above for more information.
The
Trust and the Distributor each reserve the right to restrict or refuse any
purchase or exchange transaction if, in the judgment of the Trust or of the
Distributor, the transaction may adversely affect the interests of a Fund or its
shareholders.
The
Trust seeks to deter and prevent abusive trading practices, and to reduce the
associated risks, through a combination of methods. The Trust’s Board of
Trustees has adopted policies and procedures that impose limits on the number of
round trip investments (e.g., purchases into and sales out of a Fund) that a
Fund shareholder may make in any twelve-month period. The Trust also monitors
for trading, even within these limits, that may be harmful to long-term
shareholders of a Fund. If the Trust determines in its discretion that a
shareholder has engaged in excessive short-term trading, the Trust may bar such
shareholder from making further purchases of the Funds’ shares. Notice of any
restrictions or rejections of transactions may vary according to the particular
circumstances. For the avoidance of doubt, intra-Fund exchanges arranged by
financial intermediaries on behalf of their clients, as described above under
“How to Sell or Exchange Shares” and in the SAI will not be deemed short-term
trading for purposes of any restrictions set forth herein or in the Trust’s
compliance manual, including as described in the policies and procedures
regarding short-term trading.
Although
the Trust and its service providers seek to use methods to detect and prevent
abusive trading activities, there can be no assurances that such activities can
be detected, mitigated or eliminated. By their nature, omnibus accounts, in
which purchases and sales of Fund shares by multiple investors are aggregated
for submission to the Fund on a net basis, conceal the identity and trading
activity of the individual shareholders from the Fund because the broker,
retirement plan administrator, fee-based program sponsor or other financial
intermediary maintains the record of each Fund’s underlying beneficial owners.
This makes it more difficult for the Trust and its service providers to identify
short-term transactions in the Funds. Although the Trust and its service
providers may seek to review trading activity at the omnibus account level in
order to identify abusive trading practices with respect to the Funds or allow
any brokers, retirement plan administrators, program sponsors or other
intermediaries to apply their own policies designed to detect abusive trading
practices, there can be no assurance of success in this regard.
154
PAYMENTS
TO FINANCIAL INTERMEDIARIES
Some
or all of the sales charges, distribution fees and servicing fees on
Class A and Class C Shares described under “Classes of Shares” above
are paid or “reallowed” to the financial intermediary through which you purchase
your shares. With respect to Class C Shares, the financial intermediaries
are also paid, at the time of your purchase, a commission equal to 1.00% of your
investment in Class C Shares. Please see the SAI for details. A financial
intermediary is one that, in exchange for compensation, sells, among other
products, mutual fund shares (including the shares offered in this Prospectus)
or provides services for mutual fund shareholders. Financial intermediaries
include brokers, dealers, insurance companies, third party administrators and
banks.
In
addition, for all classes of shares, the Distributor, the Investment Manager and
their affiliates from time to time may make payments such as cash bonuses or
provide other incentives to selected financial intermediaries as compensation
for services such as, without limitation, providing the Funds with “shelf space”
or a higher profile for the financial intermediaries’ financial consultants and
their customers, placing the Funds on the financial intermediaries’ preferred or
recommended fund list, granting the Distributor, the Investment Manager or their
affiliates access to the financial intermediaries’ financial consultants,
providing assistance in training and educating the financial intermediaries’
personnel, and furnishing marketing support and other specified services. The
actual services provided, and the payments made for such services, vary from
intermediary to intermediary. These payments may be significant to the financial
intermediaries and may also take the form of sponsorship of seminars or
informational meetings or payment for attendance by persons associated with the
financial intermediaries at seminars or informational meetings. Financial
intermediaries include brokers, dealers, insurance companies, third party
administrators and banks.
A
number of factors will be considered in determining the amount of these
additional payments to financial intermediaries. On some occasions, such
payments are conditioned upon levels of sales, including the sale of a specified
minimum dollar amount of the shares of a Fund, all other series of the Trust,
other funds sponsored by the Investment Manager and/or a particular class of
shares, possibly during a specified period of time. The Distributor, the
Investment Manager and their affiliates may also make payments to certain
participating financial intermediaries based upon factors such as the amount of
assets a financial intermediary’s clients have invested in the Funds and the
quality of the financial intermediary’s relationship with the Distributor or the
Investment Manager. The additional payments described above are made at the
expense of the Distributor, the Investment Manager and their affiliates. These
payments are made to financial intermediaries selected by the Distributor or the
Investment Manager, generally to the intermediaries that have sold significant
amounts of shares of the Funds or other Ashmore-sponsored funds. In certain
cases, these payments are subject to certain minimum payment levels. In some
cases, in lieu of payments pursuant to a formula, the Distributor, the
Investment Manager and their affiliates may make payments of an agreed-upon
amount that normally will not exceed the amount that would have been payable
pursuant to the formula. There may be a few relationships on different bases.
The
Distributor, the Investment Manager and their affiliates, at their own expense
and out of their own assets, may also provide compensation to financial
intermediaries in connection with conferences, sales, or training programs for
their employees, seminars for the public, advertising or sales campaigns, or
other financial intermediary-sponsored special events. In some instances, the
compensation may be made available only to certain financial intermediaries
whose representatives have sold or are expected to sell significant amounts of
shares of the Funds. Intermediaries that are registered broker-dealers may not
use sales of Fund shares to qualify for this compensation to the extent
prohibited by the laws or rules of any state or any self-regulatory agency, such
as the Financial Industry Regulatory Authority (“FINRA”).
If
investment advisers, distributors or affiliates of mutual funds pay bonuses and
incentives in differing amounts, financial intermediaries and their financial
consultants may have financial incentives for recommending a particular mutual
fund over other mutual funds. In addition, depending on the arrangements in
place at any particular time, a financial intermediary and its financial
consultants may also have a financial incentive for recommending a particular
share class over other share classes.
Representatives
of the Distributor, the Investment Manager or their affiliates visit brokerage
firms on a regular basis to educate financial advisors about the Funds and to
encourage the sale of Fund shares to their clients. The costs and expenses
associated with these efforts may include travel, lodging, sponsorship at
educational seminars and conferences, entertainment and meals to the extent
permitted by law.
155
Although
the Funds use financial intermediaries that sell Fund shares to effect
transactions for the Funds’ portfolios, the Funds and the Investment Manager
will not consider the sale of Fund shares as a factor when choosing financial
intermediaries to effect those transactions.
Payments
for other services
The
Funds may make payments to financial intermediaries for sub-administration,
sub-transfer agency, or other shareholder services. The Distributor, the
Investment Manager or any of their affiliates may also, from time to time, make
such payments to financial intermediaries out of their own resources and without
additional cost to a Fund or its shareholders. These financial intermediaries
are firms that, for compensation, provide certain administrative and account
maintenance services to mutual fund shareholders. These financial intermediaries
may include, among others, brokers, financial planners or advisers, banks
(including bank trust departments), retirement plan and qualified tuition
program administrators, third-party administrators, and insurance companies.
In
some cases, a financial intermediary may hold its clients’ shares of a Fund in
nominee or street name. Financial intermediaries may provide shareholder
services, which may include, among other things: processing and mailing trade
confirmations, periodic statements, prospectuses, annual and semiannual reports,
shareholder notices, and other SEC-required communications; processing tax data;
issuing and mailing dividend checks to shareholders who have selected cash
distributions; preparing record date shareholder lists for proxy solicitations;
collecting and posting distributions to shareholder accounts; and establishing
and maintaining systematic withdrawals and automated investment plans and
shareholder account registrations.
The
compensation paid by the Funds or by the Distributor, the Investment Manager or
their affiliates to an intermediary is typically paid continually over time,
during the period when the intermediary’s clients hold investments in the Fund.
The amount of continuing compensation paid to different financial intermediaries
varies. In addition, the Funds or the Distributor, the Investment Manager and
their affiliates may also make payments to financial intermediaries to offset
the cost associated with processing transactions in Fund shares or to pay
financial intermediaries one-time charges for setting up access for the Funds on
particular platforms, as well as transaction fees, or per position fees.
156
TAXES
Except
where noted, the discussion below addresses only the U.S. federal income tax
consequences of an investment in a Fund; it does not address any foreign, state,
or local tax consequences, and it may not apply to certain types of shareholders
such as insurance companies, financial institutions, broker-dealers, retirement
plans or foreign shareholders. Each shareholder should consult a tax adviser for
more information on the consequences of an investment in a Fund in light of the
shareholder’s own tax situation, including possible foreign, U.S. federal, state
or local taxes.
Each
Fund intends to meet the requirements under Subchapter M of the Internal Revenue
Code of 1986, as amended (the “Code”) with respect to sources of income and
diversification of assets necessary to qualify for treatment as a regulated
investment company (a “RIC”) and thus does not expect to pay any U.S. federal
income tax on income and capital gains distributed to shareholders. Each Fund
also intends to meet certain distribution requirements such that it is not
subject to U.S. federal income or excise tax in general. A Fund’s intention to
qualify for treatment as a RIC may limit its ability to acquire or continue to
hold positions that it would otherwise hold or acquire or may require it to
engage in transactions it would not otherwise engage in (resulting in
transaction costs), and may therefore negatively affect its return to
shareholders.
If
a Fund were to fail to meet the income, diversification or distribution tests
described above, the Fund could in some cases cure such failure, including by
paying a Fund-level tax, paying interest, making additional distributions or
disposing of certain assets. If the Fund were ineligible to or otherwise did not
cure such failure for any year, or if the Fund were otherwise to fail to qualify
as a RIC accorded special tax treatment for such year, all of its taxable income
would be subject to a Fund-level tax at regular corporate income tax rates
without any deduction for distributions to shareholders. This treatment would
reduce the Fund’s net income available for investment or distribution to its
shareholders. In addition, all distributions from earnings and profits,
including any net capital gains, would be taxable to shareholders as ordinary
income. Some portions of such distributions may be eligible for the
dividends-received deduction in the case of corporate shareholders or may be
treated as “qualified dividend income” in the case of individual shareholders. A
Fund also could be required to recognize unrealized gains, pay substantial taxes
and interest and make substantial distributions, before requalifying as a RIC
that is accorded special tax treatment.
Taxation
of Fund Distributions
For
U.S. federal income tax purposes, distributions of investment income are
generally taxable to shareholders as ordinary income. Taxes on distributions of
capital gains are determined by how long a Fund owned (or is deemed to have
owned) the investments that generated them, rather than how long a shareholder
has owned his or her shares. Tax rules can alter the Fund’s holding period in
securities and thereby affect the tax treatment of gain or loss on such
securities. In general, a Fund will recognize long-term capital gain or loss on
investments it has owned (or is deemed to have owned) for more than one year,
and short-term capital gain or loss on investments it has owned for one year or
less. Distributions of the excess of net long-term capital gains over net
short-term capital losses, in each case determined by taking into account any
loss carryforwards, that are properly reported by a Fund as capital gain
dividends (“Capital Gain Dividends”) will be treated as long-term capital gains
includible in net capital gain and taxed to individuals at reduced rates.
Distributions of net short-term capital gain (as reduced by any net long-term
capital loss for the taxable year) will be taxable to shareholders as ordinary
income.
Distributions
reported by a Fund as “qualified dividend income” are taxable to individuals at
the rate that applies to net capital gain, provided that both the shareholder
and the Fund meet certain holding period and other requirements.
A
3.8% Medicare contribution tax is imposed on the net investment income of
certain individuals, trusts and estates to the extent their income exceeds
certain threshold amounts. Net investment income generally includes for this
purpose dividends paid by a Fund, including any capital gain dividends, and net
gains recognized on the sale, redemption or exchange of shares of a Fund.
Shareholders are advised to consult their tax advisers regarding the possible
implications of this additional tax on their investment in a Fund.
Distributions
are taxable whether shareholders receive them in cash or reinvest them in
additional shares. If a dividend or distribution is made shortly after a
shareholder purchases shares of a Fund, the dividend or distribution is taxable
although it is in effect a return of capital to the shareholder. A shareholder
can avoid this, if he or she chooses, by investing after the Fund has paid a
dividend. Persons investing through tax-advantaged accounts do not need to be
concerned about this because distributions made to such accounts generally are
not taxable. Persons investing through such an account should consult a tax
advisor to determine the suitability of a Fund as an investment through the
account and the tax treatment of distributions (including distributions of
amounts attributable to an investment in a Fund) from such an account.
157
Sale
or Exchange of Fund Shares
Any
gain resulting from the sale, exchange or redemption of a shareholder’s shares
will generally be taxable to the shareholder. Gains resulting from sales of
shares held for more than one year generally are includible in a shareholder’s
net capital gain and taxed to individuals at reduced rates, while gains
resulting from sales of shares held for one year or less generally are taxed at
ordinary income rates.
Taxation
of Certain Investments
Each
Fund’s investments in foreign securities will be subject to foreign withholding
or other taxes. In that case, the Fund’s yield on those securities will
generally be decreased. If more than 50% of the value of a Fund’s total assets
at the close of a taxable year consists of securities of foreign corporations,
the Fund will be eligible to elect to “pass through” to shareholders foreign
income taxes that it has paid, such that taxable shareholders generally will be
entitled to claim a credit or deduction with respect to those foreign taxes. In
addition, it is possible that certain of a Fund’s transactions in foreign
securities, foreign currencies, or foreign currency derivatives will give rise
to ordinary income or loss to the extent such income or loss results from
fluctuations in the value of the foreign currency concerned. Such ordinary
income treatment may increase or accelerate the Fund’s recognition of ordinary
income and may affect the timing or amount of the Fund’s distributions.
Certain
of a Fund’s investment practices, including derivative transactions and hedging
activities, as well as a Fund’s investments in certain types of securities,
including certain debt obligations issued or purchased at a discount, may be
subject to special and complex U.S. federal income tax provisions that may,
among other things: (i) disallow, suspend or otherwise limit the allowance
of certain losses or deductions; (ii) convert lower-taxed long-term capital
gain into higher-taxed short-term capital gain or ordinary income;
(iii) accelerate the recognition of income; (iv) convert short-term
losses into long-term losses; (v) cause a Fund to recognize income or gain
without a corresponding receipt of cash; (vi) adversely affect the time as
to when a purchase or sale of stock or securities is deemed to occur;
(vii) cause adjustments in the holding periods of a Fund’s securities; or
(viii) otherwise adversely alter the characterization of certain complex
financial transactions. These U.S. federal income tax provisions could therefore
affect the amount, timing and/or character of distributions to Fund
shareholders. Further, because the tax treatment of derivative transactions is
in some cases uncertain under current law, an adverse determination or future
guidance by the U.S. Internal Revenue Service (“IRS”) with respect to these
rules (which determination or guidance could be retroactive) may affect whether
a Fund has made sufficient distributions, and otherwise satisfied the relevant
requirements, to maintain its qualification as a RIC and avoid a Fund-level U.S.
federal income or excise tax. In addition, a Fund may be required to, among
other things, dispose of securities (including at a time when it is not
advantageous to do so) to mitigate the effect of certain of these provisions,
prevent disqualification of the Fund as a RIC, or avoid incurring Fund-level
tax.
Tax
rules are not entirely clear about certain issues relating to investments by a
Fund in debt obligations that are in the lowest rating categories, and each Fund
will need to address these issues as they arise in order to seek to ensure that
it continues to qualify as a RIC. For more information, see the section entitled
“Taxes” in the SAI.
Information
Early
in each calendar year, a Fund will send its shareholders information setting
forth the amount and tax status of any dividends or other distributions paid by
the Fund during the previous year. Dividends and other distributions may also be
subject to state, local and other taxes.
Backup
Withholding
A
Fund may be required to withhold, for U.S. federal backup withholding tax
purposes, a portion of the dividends, distributions and redemption proceeds
payable to a shareholder if: (i) the shareholder fails to provide the Fund
(or its agent) with a correct taxpayer identification number (in the case of an
individual, generally, such individual’s social security number) or to make the
required certification; or (ii) the Fund has been notified by the IRS that
the shareholder is subject to backup withholding. Backup withholding is not an
additional tax and any amount withheld may be refunded or credited against the
shareholder’s U.S. federal income tax liability, if any, provided that the
shareholder furnishes the required information to the IRS.
Foreign
Shareholders
In
general and subject to certain limitations described in the SAI, Capital Gain
Dividends, short-term capital gain dividends (i.e. distributions of net
short-term capital gains in excess of net long-term capital losses) and
interest-related dividends (i.e.
158
distributions
from U.S. source interest income of types similar to those not subject to U.S.
federal income tax if earned directly by an individual foreign shareholder) paid
to a shareholder that is not a “U.S. person” within the meaning of the Code are
generally not subject to withholding. Distributions other than Capital Gain
Dividends, short-term capital gain dividends and interest-related dividends paid
to such a shareholder are generally subject to withholding of U.S. federal
income tax at a rate of 30% (or lower applicable treaty rate). For more
information, see the section entitled “Taxes” in the SAI.
THE
FOREGOING IS A GENERAL AND ABBREVIATED SUMMARY OF THE PROVISIONS OF THE CODE AND
THE TREASURY REGULATIONS IN EFFECT AS THEY DIRECTLY GOVERN THE TAXATION OF THE
FUNDS AND THEIR SHAREHOLDERS. THESE PROVISIONS ARE SUBJECT TO CHANGE BY
LEGISLATIVE OR ADMINISTRATIVE ACTION, AND ANY SUCH CHANGE MAY BE RETROACTIVE. A
MORE COMPLETE DISCUSSION OF THE TAX RULES APPLICABLE TO THE FUNDS CAN BE FOUND
IN THE STATEMENT OF ADDITIONAL INFORMATION, WHICH IS INCORPORATED BY REFERENCE
INTO THIS PROSPECTUS. SHAREHOLDERS ARE URGED TO CONSULT THEIR TAX ADVISERS
REGARDING SPECIFIC QUESTIONS AS TO U.S. FEDERAL, STATE, LOCAL AND FOREIGN INCOME
OR OTHER TAXES.
159
FINANCIAL
HIGHLIGHTS
The
financial highlights table is intended to help you understand the Funds’
financial performance for the past five years or since inception, if less than
five years. The total returns in the table represent the rate that an investor
would have earned or lost on an investment in the Fund (assuming reinvestment of
all dividends and distributions). This information has been derived from the
Funds’ financial statements, which have been audited by KPMG, an independent
registered accounting firm, whose report, along with the Funds’ financial
statements, are included in the Funds’ annual report, which is available upon
request.
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Total Return Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class A |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
4.32 |
| |
|
$ |
6.60 |
| |
|
$ |
6.80 |
| |
|
$ |
7.54 |
| |
|
$ |
7.31 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.27 |
1 |
|
|
|
0.32 |
1 |
|
|
|
0.33 |
1 |
|
|
|
0.34 |
| |
|
|
0.40 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.23 |
| |
|
|
(2.30 |
) |
|
|
|
(0.20 |
) |
|
|
|
(0.74 |
) |
|
|
|
0.24 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.50 |
| |
|
|
(1.98 |
) |
|
|
|
0.13 |
| |
|
|
(0.40 |
) |
|
|
|
0.64 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.26 |
) |
|
|
|
(0.05 |
) |
|
|
|
(0.31 |
) |
|
|
|
(0.12 |
) |
|
|
|
(0.33 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
(0.01 |
) |
|
|
|
(0.25 |
) |
|
|
|
(0.02 |
) |
|
|
|
(0.22 |
) |
|
|
|
(0.08 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.27 |
) |
|
|
|
(0.30 |
) |
|
|
|
(0.33 |
) |
|
|
|
(0.34 |
) |
|
|
|
(0.41 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
4.55 |
| |
|
$ |
4.32 |
| |
|
$ |
6.60 |
| |
|
$ |
6.80 |
| |
|
$ |
7.54 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
11.65 |
% |
|
|
|
(30.79 |
)% |
|
|
|
1.68 |
% |
|
|
|
(5.31 |
)% |
|
|
|
8.68 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
56 |
% |
|
|
|
32 |
% |
|
|
|
54 |
% |
|
|
|
67 |
% |
|
|
|
49 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
1,446 |
| |
|
$ |
1,920 |
| |
|
$ |
5,917 |
| |
|
$ |
10,377 |
| |
|
$ |
11,108 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
1.48 |
%4 |
|
|
|
1.42 |
% |
|
|
|
1.37 |
%4 |
|
|
|
1.42 |
%4 |
|
|
|
1.36 |
% |
Expenses
after reimbursements |
|
|
|
1.28 |
%4 |
|
|
|
1.27 |
% |
|
|
|
1.28 |
%4 |
|
|
|
1.32 |
%4 |
|
|
|
1.27 |
% |
|
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
5.61 |
%4 |
|
|
|
5.50 |
% |
|
|
|
4.53 |
%4 |
|
|
|
4.72 |
%4 |
|
|
|
5.16 |
% |
Net
investment income after reimbursements |
|
|
|
5.81 |
%4 |
|
|
|
5.65 |
% |
|
|
|
4.62 |
%4 |
|
|
|
4.82 |
%4 |
|
|
|
5.25 |
% |
See accompanying notes to the financial statements.
160
ASHMORE FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Total Return Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class C |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
4.30 |
| |
|
$ |
6.58 |
| |
|
$ |
6.78 |
| |
|
$ |
7.53 |
| |
|
$ |
7.29 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.24 |
1 |
|
|
|
0.27 |
1 |
|
|
|
0.27 |
1 |
|
|
|
0.30 |
| |
|
|
0.34 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.24 |
| |
|
|
(2.29 |
) |
|
|
|
(0.19 |
) |
|
|
|
(0.76 |
) |
|
|
|
0.25 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.48 |
| |
|
|
(2.02 |
) |
|
|
|
0.08 |
| |
|
|
(0.46 |
) |
|
|
|
0.59 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.23 |
) |
|
|
|
(0.04 |
) |
|
|
|
(0.26 |
) |
|
|
|
(0.11 |
) |
|
|
|
(0.28 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
(0.01 |
) |
|
|
|
(0.22 |
) |
|
|
|
(0.02 |
) |
|
|
|
(0.18 |
) |
|
|
|
(0.07 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.24 |
) |
|
|
|
(0.26 |
) |
|
|
|
(0.28 |
) |
|
|
|
(0.29 |
) |
|
|
|
(0.35 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
4.54 |
| |
|
$ |
4.30 |
| |
|
$ |
6.58 |
| |
|
$ |
6.78 |
| |
|
$ |
7.53 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
11.14 |
% |
|
|
|
(31.39 |
)% |
|
|
|
0.93 |
% |
|
|
|
(6.09 |
)% |
|
|
|
8.02 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
56 |
% |
|
|
|
32 |
% |
|
|
|
54 |
% |
|
|
|
67 |
% |
|
|
|
49 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
815 |
| |
|
$ |
1,080 |
| |
|
$ |
2,386 |
| |
|
$ |
3,905 |
| |
|
$ |
5,506 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.24 |
%5 |
|
|
|
2.17 |
% |
|
|
|
2.12 |
%5 |
|
|
|
2.17 |
%5 |
|
|
|
2.11 |
% |
Expenses
after reimbursements |
|
|
|
2.03 |
%5 |
|
|
|
2.02 |
% |
|
|
|
2.03 |
%5 |
|
|
|
2.06 |
%5 |
|
|
|
2.02 |
% |
|
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
4.85 |
%5 |
|
|
|
4.74 |
% |
|
|
|
3.76 |
%5 |
|
|
|
4.01 |
%5 |
|
|
|
4.41 |
% |
Net
investment income after reimbursements |
|
|
|
5.06 |
%5 |
|
|
|
4.89 |
% |
|
|
|
3.85 |
%5 |
|
|
|
4.12 |
%5 |
|
|
|
4.50 |
% |
See accompanying notes to the financial
statements.
161
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Total Return Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
4.38 |
| |
|
$ |
6.70 |
| |
|
$ |
6.90 |
| |
|
$ |
7.65 |
| |
|
$ |
7.41 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.29 |
1 |
|
|
|
0.33 |
1 |
|
|
|
0.35 |
1 |
|
|
|
0.36 |
| |
|
|
0.44 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.24 |
| |
|
|
(2.34 |
) |
|
|
|
(0.20 |
) |
|
|
|
(0.75 |
) |
|
|
|
0.24 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.53 |
| |
|
|
(2.01 |
) |
|
|
|
0.15 |
| |
|
|
(0.39 |
) |
|
|
|
0.68 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.28 |
) |
|
|
|
(0.05 |
) |
|
|
|
(0.33 |
) |
|
|
|
(0.13 |
) |
|
|
|
(0.35 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
(0.01 |
) |
|
|
|
(0.26 |
) |
|
|
|
(0.02 |
) |
|
|
|
(0.23 |
) |
|
|
|
(0.09 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.29 |
) |
|
|
|
(0.31 |
) |
|
|
|
(0.35 |
) |
|
|
|
(0.36 |
) |
|
|
|
(0.44 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
4.62 |
| |
|
$ |
4.38 |
| |
|
$ |
6.70 |
| |
|
$ |
6.90 |
| |
|
$ |
7.65 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
12.06 |
% |
|
|
|
(30.74 |
)% |
|
|
|
1.94 |
% |
|
|
|
(5.09 |
)% |
|
|
|
9.04 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
56 |
% |
|
|
|
32 |
% |
|
|
|
54 |
% |
|
|
|
67 |
% |
|
|
|
49 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
450,339 |
| |
|
$ |
488,864 |
| |
|
$ |
1,216,666 |
| |
|
$ |
1,229,181 |
| |
|
$ |
1,528,196 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
1.24 |
%6 |
|
|
|
1.17 |
% |
|
|
|
1.12 |
%6 |
|
|
|
1.17 |
%6 |
|
|
|
1.11 |
% |
Expenses
after reimbursements |
|
|
|
1.03 |
%6 |
|
|
|
1.02 |
% |
|
|
|
1.03 |
%6 |
|
|
|
1.07 |
%6 |
|
|
|
1.02 |
% |
|
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
5.84 |
%6 |
|
|
|
5.79 |
% |
|
|
|
4.78 |
%6 |
|
|
|
4.99 |
%6 |
|
|
|
5.40 |
% |
Net
investment income after reimbursements |
|
|
|
6.05 |
%6 |
|
|
|
5.94 |
% |
|
|
|
4.87 |
%6 |
|
|
|
5.09 |
%6 |
|
|
|
5.49 |
% |
1 |
Per
share amounts are based on average number of shares outstanding during the
period. |
2 |
Assumes
investment at net asset value at the beginning of the year, reinvestment
of all distributions at net asset value on distribution date, and a
complete redemption of the investment at net asset value at the end of the
year, excluding the impact of sales charges. |
3 |
The
portfolio turnover rate is calculated by dividing the lesser of cost of
purchases or proceeds from sales of long term portfolio securities by the
monthly average of the value of the long term portfolio securities.
|
4 |
Ratios
include legal expenses of $229, $3,181 and $5,146 that are outside of the
expense cap under the expense limitation agreement for the years ended
October 31, 2023, 2021 and 2020, respectively. Expense ratios would
have been lower by 0.01%, 0.01% and 0.05% and Net investment income ratios
would have been higher by 0.01%, 0.01% and 0.05% excluding these expenses.
|
5 |
Ratios
include legal expenses of $111, $1,113 and $1,990 that are outside of the
expense cap under the expense limitation agreement for the years ended
October 31, 2023, 2021 and 2020, respectively. Expense ratios would
have been lower by 0.01%, 0.01% and 0.04% and Net investment income ratios
would have been higher by 0.01%, 0.01% and 0.04% excluding these expenses.
|
6 |
Ratios
include legal expenses of $59,051, $433,533 and $640,665 that are outside
of the expense cap under the expense limitation agreement for the years
ended October 31, 2023, 2021 and 2020, respectively. Expense ratios
would have been lower by 0.01%, 0.01% and 0.05% and Net investment income
ratios would have been higher by 0.01%, 0.01% and 0.05% excluding these
expenses. |
See accompanying notes to the financial
statements.
162
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore
Emerging Markets Local Currency Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class A |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
5.62 |
| |
|
$ |
6.92 |
| |
|
$ |
6.86 |
| |
|
$ |
7.35 |
| |
|
$ |
6.53 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.38 |
1 |
|
|
|
0.32 |
1 |
|
|
|
0.28 |
1 |
|
|
|
0.35 |
1 |
|
|
|
0.59 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.30 |
| |
|
|
(1.53 |
) |
|
|
|
(0.22 |
) |
|
|
|
(0.75 |
) |
|
|
|
0.27 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.68 |
| |
|
|
(1.21 |
) |
|
|
|
0.06 |
| |
|
|
(0.40 |
) |
|
|
|
0.86 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.18 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
(0.09 |
) |
|
|
|
— |
| |
|
|
(0.09 |
) |
|
|
|
(0.04 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.18 |
) |
|
|
|
(0.09 |
) |
|
|
|
— |
| |
|
|
(0.09 |
) |
|
|
|
(0.04 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
6.12 |
| |
|
$ |
5.62 |
| |
|
$ |
6.92 |
| |
|
$ |
6.86 |
| |
|
$ |
7.35 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
12.11 |
% |
|
|
|
(17.75 |
)% |
|
|
|
0.87 |
% |
|
|
|
(5.51 |
)% |
|
|
|
13.24 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
79 |
% |
|
|
|
53 |
% |
|
|
|
34 |
% |
|
|
|
47 |
% |
|
|
|
56 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
1,197 |
| |
|
$ |
1,248 |
| |
|
$ |
1,592 |
| |
|
$ |
1,755 |
| |
|
$ |
1,933 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.89 |
% |
|
|
|
3.10 |
% |
|
|
|
2.97 |
% |
|
|
|
1.75 |
% |
|
|
|
1.55 |
% |
Expenses
after reimbursements |
|
|
|
1.07 |
% |
|
|
|
1.22 |
% |
|
|
|
1.22 |
% |
|
|
|
1.22 |
% |
|
|
|
1.22 |
% |
|
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
4.23 |
% |
|
|
|
3.16 |
% |
|
|
|
2.11 |
% |
|
|
|
4.45 |
% |
|
|
|
5.08 |
% |
Net
investment income after reimbursements |
|
|
|
6.05 |
% |
|
|
|
5.04 |
% |
|
|
|
3.86 |
% |
|
|
|
4.98 |
% |
|
|
|
5.41 |
% |
See accompanying notes to the financial
statements.
163
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Local Currency Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class C |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
5.44 |
| |
|
$ |
6.75 |
| |
|
$ |
6.74 |
| |
|
$ |
7.27 |
| |
|
$ |
6.47 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.32 |
1 |
|
|
|
0.30 |
1 |
|
|
|
0.22 |
1 |
|
|
|
0.29 |
1 |
|
|
|
0.34 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.30 |
| |
|
|
(1.53 |
) |
|
|
|
(0.21 |
) |
|
|
|
(0.74 |
) |
|
|
|
0.47 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.62 |
| |
|
|
(1.23 |
) |
|
|
|
0.01 |
| |
|
|
(0.45 |
) |
|
|
|
0.81 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.11 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
(0.08 |
) |
|
|
|
— |
| |
|
|
(0.08 |
) |
|
|
|
(0.01 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.11 |
) |
|
|
|
(0.08 |
) |
|
|
|
— |
| |
|
|
(0.08 |
) |
|
|
|
(0.01 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
5.95 |
| |
|
$ |
5.44 |
| |
|
$ |
6.75 |
| |
|
$ |
6.74 |
| |
|
$ |
7.27 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
11.41 |
% |
|
|
|
(18.30 |
)% |
|
|
|
0.15 |
% |
|
|
|
(6.25 |
)% |
|
|
|
12.54 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
79 |
% |
|
|
|
53 |
% |
|
|
|
34 |
% |
|
|
|
47 |
% |
|
|
|
56 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
1 |
| |
|
$ |
2 |
| |
|
$ |
25 |
| |
|
$ |
30 |
| |
|
$ |
55 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
3.59 |
% |
|
|
|
3.74 |
% |
|
|
|
3.75 |
% |
|
|
|
2.50 |
% |
|
|
|
2.29 |
% |
Expenses
after reimbursements |
|
|
|
1.82 |
% |
|
|
|
1.97 |
% |
|
|
|
1.97 |
% |
|
|
|
1.97 |
% |
|
|
|
1.97 |
% |
|
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
3.52 |
% |
|
|
|
2.85 |
% |
|
|
|
1.35 |
% |
|
|
|
3.77 |
% |
|
|
|
4.33 |
% |
Net
investment income after reimbursements |
|
|
|
5.29 |
% |
|
|
|
4.62 |
% |
|
|
|
3.13 |
% |
|
|
|
4.30 |
% |
|
|
|
4.65 |
% |
See accompanying notes to the financial
statements.
164
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Local Currency Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
5.90 |
| |
|
$ |
7.24 |
| |
|
$ |
7.16 |
| |
|
$ |
7.66 |
| |
|
$ |
6.79 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.43 |
1 |
|
|
|
0.35 |
1 |
|
|
|
0.31 |
1 |
|
|
|
0.38 |
1 |
|
|
|
0.65 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.30 |
| |
|
|
(1.60 |
) |
|
|
|
(0.23 |
) |
|
|
|
(0.78 |
) |
|
|
|
0.27 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.73 |
| |
|
|
(1.25 |
) |
|
|
|
0.08 |
| |
|
|
(0.40 |
) |
|
|
|
0.92 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.19 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
(0.09 |
) |
|
|
|
— |
| |
|
|
(0.10 |
) |
|
|
|
(0.05 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.19 |
) |
|
|
|
(0.09 |
) |
|
|
|
— |
| |
|
|
(0.10 |
) |
|
|
|
(0.05 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
6.44 |
| |
|
$ |
5.90 |
| |
|
$ |
7.24 |
| |
|
$ |
7.16 |
| |
|
$ |
7.66 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
12.33 |
% |
|
|
|
(17.49 |
)% |
|
|
|
1.12 |
% |
|
|
|
(5.38 |
)% |
|
|
|
13.59 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
79 |
% |
|
|
|
53 |
% |
|
|
|
34 |
% |
|
|
|
47 |
% |
|
|
|
56 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
9,108 |
| |
|
$ |
4,131 |
| |
|
$ |
6,310 |
| |
|
$ |
28,257 |
| |
|
$ |
42,545 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.57 |
% |
|
|
|
2.83 |
% |
|
|
|
2.61 |
% |
|
|
|
1.50 |
% |
|
|
|
1.28 |
% |
Expenses
after reimbursements |
|
|
|
0.82 |
% |
|
|
|
0.97 |
% |
|
|
|
0.97 |
% |
|
|
|
0.97 |
% |
|
|
|
0.97 |
% |
|
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
4.60 |
% |
|
|
|
3.43 |
% |
|
|
|
2.46 |
% |
|
|
|
4.75 |
% |
|
|
|
5.31 |
% |
Net
investment income after reimbursements |
|
|
|
6.35 |
% |
|
|
|
5.29 |
% |
|
|
|
4.10 |
% |
|
|
|
5.28 |
% |
|
|
|
5.62 |
% |
1 |
Per
share amounts are based on average number of shares outstanding during the
period. |
2 |
Assumes
investment at net asset value at the beginning of the year, reinvestment
of all distributions at net asset value on distribution date, and a
complete redemption of the investment at net asset value at the end of the
year, excluding the impact of sales charges. |
3 |
The
portfolio turnover rate is calculated by dividing the lesser of cost of
purchases or proceeds from sales of long term portfolio securities by the
monthly average of the value of the long term portfolio securities.
|
See accompanying notes to the financial statements.
165
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Corporate Income Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class A |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
4.96 |
| |
|
$ |
7.53 |
| |
|
$ |
7.53 |
| |
|
$ |
7.92 |
| |
|
$ |
7.87 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.27 |
| |
|
|
0.40 |
| |
|
|
0.37 |
| |
|
|
0.44 |
| |
|
|
0.52 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.31 |
| |
|
|
(2.54 |
) |
|
|
|
— |
| |
|
|
(0.39 |
) |
|
|
|
0.03 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.58 |
| |
|
|
(2.14 |
) |
|
|
|
0.37 |
| |
|
|
0.05 |
| |
|
|
0.55 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.40 |
) |
|
|
|
(0.42 |
) |
|
|
|
(0.37 |
) |
|
|
|
(0.44 |
) |
|
|
|
(0.50 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(0.01 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
(— |
)1 |
Tax
return of capital |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
(— |
)1 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.40 |
) |
|
|
|
(0.43 |
) |
|
|
|
(0.37 |
) |
|
|
|
(0.44 |
) |
|
|
|
(0.50 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
5.14 |
| |
|
$ |
4.96 |
| |
|
$ |
7.53 |
| |
|
$ |
7.53 |
| |
|
$ |
7.92 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
11.75 |
% |
|
|
|
(29.30 |
)% |
|
|
|
4.85 |
% |
|
|
|
0.85 |
% |
|
|
|
7.37 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
56 |
% |
|
|
|
55 |
% |
|
|
|
73 |
% |
|
|
|
117 |
% |
|
|
|
96 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
3,779 |
| |
|
$ |
4,742 |
| |
|
$ |
11,153 |
| |
|
$ |
11,198 |
| |
|
$ |
13,383 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
1.47 |
%4 |
|
|
|
1.44 |
%4 |
|
|
|
1.55 |
%4 |
|
|
|
1.58 |
%4 |
|
|
|
1.51 |
% |
Expenses
after reimbursements |
|
|
|
1.14 |
%4 |
|
|
|
1.24 |
%4 |
|
|
|
1.43 |
%4 |
|
|
|
1.47 |
%4 |
|
|
|
1.42 |
% |
|
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
5.40 |
%4 |
|
|
|
6.62 |
%4 |
|
|
|
4.61 |
%4 |
|
|
|
5.76 |
%4 |
|
|
|
6.39 |
% |
Net
investment income after reimbursements |
|
|
|
5.73 |
%4 |
|
|
|
6.82 |
%4 |
|
|
|
4.73 |
%4 |
|
|
|
5.87 |
%4 |
|
|
|
6.48 |
% |
See accompanying notes to the financial
statements.
166
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Corporate Income Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class C |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
4.95 |
| |
|
$ |
7.52 |
| |
|
$ |
7.51 |
| |
|
$ |
7.91 |
| |
|
$ |
7.86 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.24 |
| |
|
|
0.35 |
| |
|
|
0.31 |
| |
|
|
0.39 |
| |
|
|
0.45 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.29 |
| |
|
|
(2.53 |
) |
|
|
|
0.02 |
| |
|
|
(0.40 |
) |
|
|
|
0.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.53 |
| |
|
|
(2.18 |
) |
|
|
|
0.33 |
| |
|
|
(0.01 |
) |
|
|
|
0.49 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.36 |
) |
|
|
|
(0.38 |
) |
|
|
|
(0.32 |
) |
|
|
|
(0.39 |
) |
|
|
|
(0.44 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(0.01 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
(— |
)1 |
Tax
return of capital |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
(— |
)1 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.36 |
) |
|
|
|
(0.39 |
) |
|
|
|
(0.32 |
) |
|
|
|
(0.39 |
) |
|
|
|
(0.44 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
5.12 |
| |
|
$ |
4.95 |
| |
|
$ |
7.52 |
| |
|
$ |
7.51 |
| |
|
$ |
7.91 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
10.75 |
% |
|
|
|
(29.86 |
)% |
|
|
|
4.25 |
% |
|
|
|
(0.01 |
)% |
|
|
|
6.58 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
56 |
% |
|
|
|
55 |
% |
|
|
|
73 |
% |
|
|
|
117 |
% |
|
|
|
96 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
1,492 |
| |
|
$ |
1,782 |
| |
|
$ |
5,762 |
| |
|
$ |
7,466 |
| |
|
$ |
10,745 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.22 |
%5 |
|
|
|
2.20 |
%5 |
|
|
|
2.30 |
%5 |
|
|
|
2.33 |
%5 |
|
|
|
2.26 |
% |
Expenses
after reimbursements |
|
|
|
1.89 |
%5 |
|
|
|
2.01 |
%5 |
|
|
|
2.18 |
%5 |
|
|
|
2.22 |
%5 |
|
|
|
2.17 |
% |
|
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
4.65 |
%5 |
|
|
|
5.89 |
%5 |
|
|
|
3.88 |
%5 |
|
|
|
5.01 |
%5 |
|
|
|
5.65 |
% |
Net
investment income after reimbursements |
|
|
|
4.98 |
%5 |
|
|
|
6.08 |
%5 |
|
|
|
4.00 |
%5 |
|
|
|
5.12 |
%5 |
|
|
|
5.74 |
% |
See accompanying notes to the financial statements.
167
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Corporate Income Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
5.17 |
| |
|
$ |
7.85 |
| |
|
$ |
7.84 |
| |
|
$ |
8.25 |
| |
|
$ |
8.20 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.31 |
| |
|
|
0.45 |
| |
|
|
0.41 |
| |
|
|
0.48 |
| |
|
|
0.55 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.31 |
| |
|
|
(2.66 |
) |
|
|
|
0.01 |
| |
|
|
(0.41 |
) |
|
|
|
0.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.62 |
| |
|
|
(2.21 |
) |
|
|
|
0.42 |
| |
|
|
0.07 |
| |
|
|
0.59 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.43 |
) |
|
|
|
(0.46 |
) |
|
|
|
(0.41 |
) |
|
|
|
(0.48 |
) |
|
|
|
(0.54 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(0.01 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
(— |
)1 |
Tax
return of capital |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
(— |
)1 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.43 |
) |
|
|
|
(0.47 |
) |
|
|
|
(0.41 |
) |
|
|
|
(0.48 |
) |
|
|
|
(0.54 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
5.36 |
| |
|
$ |
5.17 |
| |
|
$ |
7.85 |
| |
|
$ |
7.84 |
| |
|
$ |
8.25 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
12.06 |
% |
|
|
|
(29.15 |
)% |
|
|
|
5.24 |
% |
|
|
|
1.04 |
% |
|
|
|
7.61 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
56 |
% |
|
|
|
55 |
% |
|
|
|
73 |
% |
|
|
|
117 |
% |
|
|
|
96 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
67,689 |
| |
|
$ |
86,347 |
| |
|
$ |
277,188 |
| |
|
$ |
261,307 |
| |
|
$ |
443,880 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
1.22 |
%6 |
|
|
|
1.20 |
%6 |
|
|
|
1.30 |
%6 |
|
|
|
1.32 |
%6 |
|
|
|
1.26 |
% |
Expenses
after reimbursements |
|
|
|
0.89 |
%6 |
|
|
|
1.01 |
%6 |
|
|
|
1.18 |
%6 |
|
|
|
1.21 |
%6 |
|
|
|
1.17 |
% |
|
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
5.65 |
%6 |
|
|
|
6.90 |
%6 |
|
|
|
4.86 |
%6 |
|
|
|
6.00 |
%6 |
|
|
|
6.66 |
% |
Net
investment income after reimbursements |
|
|
|
5.98 |
%6 |
|
|
|
7.09 |
%6 |
|
|
|
4.98 |
%6 |
|
|
|
6.11 |
%6 |
|
|
|
6.75 |
% |
1 |
Amount
is less than $0.005 per share. |
2 |
Assumes
investment at net asset value at the beginning of the year, reinvestment
of all distributions at net asset value on distribution date, and a
complete redemption of the investment at net asset value at the end of the
year, excluding the impact of sales charges. |
3 |
The
portfolio turnover rate is calculated by dividing the lesser of cost of
purchases or proceeds from sales of long term portfolio securities by the
monthly average of the value of the long term portfolio securities.
|
4 |
Ratios
include legal expenses of $770, $63, $1,438 and $6,538 that are outside of
the expense cap under the expense limitation agreement for the years ended
October 31, 2023, 2022, 2021 and 2020, respectively. Expense ratios
would have been lower by 0.02%, 0.12%, 0.01% and 0.05% and Net investment
income ratios would have been higher by 0.02%, 0.07%, 0.01% and 0.05%
excluding these expenses. |
5 |
Ratios
include legal expenses of $298, $79, $756 and $4,394 that are outside of
the expense cap under the expense limitation agreement for the years ended
October 31, 2023, 2022, 2021 and 2020, respectively. Expense ratios
would have been lower by 0.02%, 0.14%, 0.01% and 0.05% and Net investment
income ratios would have been higher by 0.02%, 0.07%, 0.01% and 0.05%
excluding these expenses. |
6 |
Ratios
include legal expenses of $13,964, $3,742, $34,379 and $153,663 that are
outside of the expense cap under the expense limitation agreement for the
years ended October 31, 2023, 2022, 2021 and 2020, respectively.
Expense ratios would have been lower by 0.02%, 0.14%, 0.01% and 0.04% and
Net investment income ratios would have been higher by 0.02%, 0.07%, 0.01%
and 0.04% excluding these expenses. |
See accompanying notes to the financial
statements.
168
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Short Duration Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class A |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
4.28 |
| |
|
$ |
6.80 |
| |
|
$ |
7.52 |
| |
|
$ |
9.00 |
| |
|
$ |
9.78 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.34 |
1 |
|
|
|
0.32 |
| |
|
|
0.44 |
| |
|
|
0.46 |
| |
|
|
0.68 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.57 |
| |
|
|
(2.39 |
) |
|
|
|
(0.69 |
) |
|
|
|
(1.46 |
) |
|
|
|
(0.75 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.91 |
| |
|
|
(2.07 |
) |
|
|
|
(0.25 |
) |
|
|
|
(1.00 |
) |
|
|
|
(0.07 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.41 |
) |
|
|
|
(0.34 |
) |
|
|
|
(0.47 |
) |
|
|
|
(0.48 |
) |
|
|
|
(0.68 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(0.11 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
(0.03 |
) |
Tax
return of capital |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.41 |
) |
|
|
|
(0.45 |
) |
|
|
|
(0.47 |
) |
|
|
|
(0.48 |
) |
|
|
|
(0.71 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
4.78 |
| |
|
$ |
4.28 |
| |
|
$ |
6.80 |
| |
|
$ |
7.52 |
| |
|
$ |
9.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
22.36 |
% |
|
|
|
(31.54 |
)% |
|
|
|
(4.07 |
)% |
|
|
|
(11.25 |
)% |
|
|
|
(1.22 |
)% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
49 |
% |
|
|
|
41 |
% |
|
|
|
32 |
% |
|
|
|
80 |
% |
|
|
|
53 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
8,499 |
| |
|
$ |
2,975 |
| |
|
$ |
6,834 |
| |
|
$ |
19,865 |
| |
|
$ |
110,771 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
1.37 |
%4 |
|
|
|
1.14 |
%4 |
|
|
|
1.10 |
%4 |
|
|
|
1.13 |
%4 |
|
|
|
1.00 |
% |
Expenses
after reimbursements |
|
|
|
0.99 |
%4 |
|
|
|
0.89 |
%4 |
|
|
|
1.00 |
%4 |
|
|
|
0.99 |
%4 |
|
|
|
0.92 |
% |
|
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
7.19 |
%4 |
|
|
|
6.06 |
%4 |
|
|
|
6.17 |
%4 |
|
|
|
7.07 |
%4 |
|
|
|
6.74 |
% |
Net
investment income after reimbursements |
|
|
|
7.57 |
%4 |
|
|
|
6.31 |
%4 |
|
|
|
6.27 |
%4 |
|
|
|
7.21 |
%4 |
|
|
|
6.82 |
% |
See accompanying notes to the financial
statements.
169
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Short Duration Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class C |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
4.09 |
| |
|
$ |
6.53 |
| |
|
$ |
7.22 |
| |
|
$ |
8.66 |
| |
|
$ |
9.41 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.30 |
1 |
|
|
|
0.29 |
| |
|
|
0.40 |
| |
|
|
0.42 |
| |
|
|
0.58 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.54 |
| |
|
|
(2.33 |
) |
|
|
|
(0.69 |
) |
|
|
|
(1.45 |
) |
|
|
|
(0.72 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.84 |
| |
|
|
(2.04 |
) |
|
|
|
(0.29 |
) |
|
|
|
(1.03 |
) |
|
|
|
(0.14 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.37 |
) |
|
|
|
(0.29 |
) |
|
|
|
(0.40 |
) |
|
|
|
(0.41 |
) |
|
|
|
(0.58 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(0.11 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
(0.03 |
) |
Tax
return of capital |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.37 |
) |
|
|
|
(0.40 |
) |
|
|
|
(0.40 |
) |
|
|
|
(0.41 |
) |
|
|
|
(0.61 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
4.56 |
| |
|
$ |
4.09 |
| |
|
$ |
6.53 |
| |
|
$ |
7.22 |
| |
|
$ |
8.66 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
21.32 |
% |
|
|
|
(32.29 |
)% |
|
|
|
(4.56 |
)% |
|
|
|
(12.05 |
)% |
|
|
|
(1.94 |
)% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
49 |
% |
|
|
|
41 |
% |
|
|
|
32 |
% |
|
|
|
80 |
% |
|
|
|
53 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
171 |
| |
|
$ |
291 |
| |
|
$ |
1,219 |
| |
|
$ |
1,572 |
| |
|
$ |
2,342 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.11 |
%5 |
|
|
|
1.91 |
%5 |
|
|
|
1.84 |
%5 |
|
|
|
1.96 |
%5 |
|
|
|
1.75 |
% |
Expenses
after reimbursements |
|
|
|
1.74 |
%5 |
|
|
|
1.66 |
%5 |
|
|
|
1.76 |
%5 |
|
|
|
1.83 |
%5 |
|
|
|
1.67 |
% |
|
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
6.57 |
%5 |
|
|
|
5.09 |
%5 |
|
|
|
5.36 |
%5 |
|
|
|
5.20 |
%5 |
|
|
|
5.96 |
% |
Net
investment income after reimbursements |
|
|
|
6.94 |
%5 |
|
|
|
5.34 |
%5 |
|
|
|
5.44 |
%5 |
|
|
|
5.33 |
%5 |
|
|
|
6.04 |
% |
See accompanying notes to the financial
statements.
170
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Short Duration Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
4.20 |
| |
|
$ |
6.69 |
| |
|
$ |
7.40 |
| |
|
$ |
8.83 |
| |
|
$ |
9.60 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.34 |
1 |
|
|
|
0.37 |
| |
|
|
0.50 |
| |
|
|
0.49 |
| |
|
|
0.69 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.57 |
| |
|
|
(2.40 |
) |
|
|
|
(0.73 |
) |
|
|
|
(1.44 |
) |
|
|
|
(0.74 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.91 |
| |
|
|
(2.03 |
) |
|
|
|
(0.23 |
) |
|
|
|
(0.95 |
) |
|
|
|
(0.05 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.42 |
) |
|
|
|
(0.35 |
) |
|
|
|
(0.48 |
) |
|
|
|
(0.48 |
) |
|
|
|
(0.69 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(0.11 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
(0.03 |
) |
Tax
return of capital |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.42 |
) |
|
|
|
(0.46 |
) |
|
|
|
(0.48 |
) |
|
|
|
(0.48 |
) |
|
|
|
(0.72 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
4.69 |
| |
|
$ |
4.20 |
| |
|
$ |
6.69 |
| |
|
$ |
7.40 |
| |
|
$ |
8.83 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
22.63 |
% |
|
|
|
(31.54 |
)% |
|
|
|
(3.75 |
)% |
|
|
|
(10.94 |
)% |
|
|
|
(1.01 |
)% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
49 |
% |
|
|
|
41 |
% |
|
|
|
32 |
% |
|
|
|
80 |
% |
|
|
|
53 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
51,723 |
| |
|
$ |
52,073 |
| |
|
$ |
124,954 |
| |
|
$ |
441,467 |
| |
|
$ |
1,195,492 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
1.12 |
%6 |
|
|
|
0.90 |
%6 |
|
|
|
0.84 |
%6 |
|
|
|
0.91 |
%6 |
|
|
|
0.75 |
% |
Expenses
after reimbursements |
|
|
|
0.74 |
%6 |
|
|
|
0.65 |
%6 |
|
|
|
0.75 |
%6 |
|
|
|
0.79 |
%6 |
|
|
|
0.67 |
% |
|
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
7.47 |
%6 |
|
|
|
6.22 |
%6 |
|
|
|
6.38 |
%6 |
|
|
|
6.98 |
%6 |
|
|
|
7.04 |
% |
Net
investment income after reimbursements |
|
|
|
7.85 |
%6 |
|
|
|
6.47 |
%6 |
|
|
|
6.47 |
%6 |
|
|
|
7.10 |
%6 |
|
|
|
7.12 |
% |
1 |
Per
share amounts are based on average number of shares outstanding during the
period. |
2 |
Assumes
investment at net asset value at the beginning of the year, reinvestment
of all distributions at net asset value on distribution date, and a
complete redemption of the investment at net asset value at the end of the
year, excluding the impact of sales charges. |
3 |
The
portfolio turnover rate is calculated by dividing the lesser of cost of
purchases or proceeds from sales of long term portfolio securities by the
monthly average of the value of the long term portfolio securities.
|
4 |
Ratios
include legal expenses of $5,360, $(1,101), $10,827 and $37,676 that are
outside of the expense cap under the expense limitation agreement for the
years ended October 31, 2023, 2022, 2021 and 2020, respectively.
Expense ratios would have been lower by 0.07%, higher by 0.03% and lower
by 0.08% and 0.07% and Net investment income ratios would have been higher
by 0.07%, lower by 0.03% and higher by 0.08% and 0.07% excluding these
expenses. |
5 |
Ratios
include legal expenses of $141, $(46), $1,388 and $2,841 that are outside
of the expense cap under the expense limitation agreement for the years
ended October 31, 2023, 2022, 2021 and 2020, respectively. Expense
ratios would have been lower by 0.07%, higher by 0.01% and lower by 0.09%
and 0.16% and Net investment income ratios would have been higher by
0.07%, lower by 0.01% and higher by 0.09% and 0.16% excluding these
expenses. |
6 |
Ratios
include legal expenses of $34,017, $(12,847), $182,441 and $835,457 that
are outside of the expense cap under the expense limitation agreement for
the years ended October 31, 2023, 2022, 2021 and 2020, respectively.
Expense ratios would have been lower by 0.07%, higher by 0.02% and lower
by 0.08% and 0.12% and Net investment income ratios would have been higher
by 0.07%, lower by 0.02% and higher by 0.08% and 0.12% excluding these
expenses. |
See accompanying notes to the financial
statements.
171
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Active Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class A |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
6.11 |
| |
|
$ |
12.55 |
| |
|
$ |
11.08 |
| |
|
$ |
10.46 |
| |
|
$ |
10.53 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.01 |
1 |
|
|
|
0.08 |
1 |
|
|
|
0.15 |
| |
|
|
0.11 |
1 |
|
|
|
0.13 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.47 |
| |
|
|
(3.26 |
) |
|
|
|
1.44 |
| |
|
|
0.56 |
| |
|
|
0.85 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.48 |
| |
|
|
(3.18 |
) |
|
|
|
1.59 |
| |
|
|
0.67 |
| |
|
|
0.98 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.11 |
) |
|
|
|
(0.18 |
) |
|
|
|
(0.12 |
) |
|
|
|
(0.05 |
) |
|
|
|
(0.09 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(3.07 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
(0.94 |
) |
Tax
return of capital |
|
|
|
— |
| |
|
|
(0.01 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
(0.02 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.11 |
) |
|
|
|
(3.26 |
) |
|
|
|
(0.12 |
) |
|
|
|
(0.05 |
) |
|
|
|
(1.05 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
6.48 |
| |
|
$ |
6.11 |
| |
|
$ |
12.55 |
| |
|
$ |
11.08 |
| |
|
$ |
10.46 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
7.68 |
% |
|
|
|
(33.53 |
)% |
|
|
|
14.23 |
% |
|
|
|
6.49 |
% |
|
|
|
10.73 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
189 |
% |
|
|
|
264 |
% |
|
|
|
206 |
% |
|
|
|
228 |
% |
|
|
|
153 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
40 |
| |
|
$ |
804 |
| |
|
$ |
1,611 |
| |
|
$ |
1,616 |
| |
|
$ |
209 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
1.69 |
% |
|
|
|
1.52 |
% |
|
|
|
1.49 |
% |
|
|
|
1.55 |
% |
|
|
|
1.96 |
% |
Expenses
after reimbursements |
|
|
|
1.27 |
% |
|
|
|
1.27 |
% |
|
|
|
1.27 |
% |
|
|
|
1.27 |
% |
|
|
|
1.27 |
% |
|
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) before reimbursements |
|
|
|
(0.25 |
)% |
|
|
|
0.68 |
% |
|
|
|
0.91 |
% |
|
|
|
0.73 |
% |
|
|
|
0.55 |
% |
Net
investment income after reimbursements |
|
|
|
0.17 |
% |
|
|
|
0.93 |
% |
|
|
|
1.13 |
% |
|
|
|
1.01 |
% |
|
|
|
1.24 |
% |
See accompanying notes to the financial
statements.
172
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Active Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class C |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
5.96 |
| |
|
$ |
12.33 |
| |
|
$ |
10.90 |
| |
|
$ |
10.32 |
| |
|
$ |
10.43 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.01 |
1 |
|
|
|
0.01 |
1 |
|
|
|
0.05 |
| |
|
|
— |
1,4 |
|
|
|
0.07 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.41 |
| |
|
|
(3.18 |
) |
|
|
|
1.42 |
| |
|
|
0.58 |
| |
|
|
0.83 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.42 |
| |
|
|
(3.17 |
) |
|
|
|
1.47 |
| |
|
|
0.58 |
| |
|
|
0.90 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.08 |
) |
|
|
|
(0.13 |
) |
|
|
|
(0.04 |
) |
|
|
|
(— |
)4 |
|
|
|
(0.05 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(3.07 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
(0.94 |
) |
Tax
return of capital |
|
|
|
— |
| |
|
|
(— |
)4 |
|
|
|
— |
| |
|
|
— |
| |
|
|
(0.02 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.08 |
) |
|
|
|
(3.20 |
) |
|
|
|
(0.04 |
) |
|
|
|
— |
| |
|
|
(1.01 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
6.30 |
| |
|
$ |
5.96 |
| |
|
$ |
12.33 |
| |
|
$ |
10.90 |
| |
|
$ |
10.32 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
6.89 |
% |
|
|
|
(34.05 |
)% |
|
|
|
13.41 |
% |
|
|
|
5.76 |
% |
|
|
|
9.88 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
189 |
% |
|
|
|
264 |
% |
|
|
|
206 |
% |
|
|
|
228 |
% |
|
|
|
153 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
1 |
| |
|
$ |
1 |
| |
|
$ |
2 |
| |
|
$ |
2 |
| |
|
$ |
12 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.79 |
% |
|
|
|
2.30 |
% |
|
|
|
2.25 |
% |
|
|
|
2.31 |
% |
|
|
|
2.71 |
% |
Expenses
after reimbursements |
|
|
|
2.02 |
% |
|
|
|
2.02 |
% |
|
|
|
2.02 |
% |
|
|
|
2.02 |
% |
|
|
|
2.02 |
% |
|
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) before reimbursements |
|
|
|
(0.65 |
)% |
|
|
|
(0.10 |
)% |
|
|
|
0.14 |
% |
|
|
|
(0.30 |
)% |
|
|
|
(0.17 |
)% |
Net
investment income (loss) after reimbursements |
|
|
|
0.12 |
% |
|
|
|
0.18 |
% |
|
|
|
0.37 |
% |
|
|
|
(0.01 |
)% |
|
|
|
0.52 |
% |
See accompanying notes to the financial
statements.
173
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Active Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
6.16 |
| |
|
$ |
12.63 |
| |
|
$ |
11.15 |
| |
|
$ |
10.51 |
| |
|
$ |
10.56 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.07 |
1 |
|
|
|
0.09 |
1 |
|
|
|
0.18 |
| |
|
|
0.10 |
1 |
|
|
|
0.16 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.43 |
| |
|
|
(3.28 |
) |
|
|
|
1.45 |
| |
|
|
0.60 |
| |
|
|
0.86 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.50 |
| |
|
|
(3.19 |
) |
|
|
|
1.63 |
| |
|
|
0.70 |
| |
|
|
1.02 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.12 |
) |
|
|
|
(0.20 |
) |
|
|
|
(0.15 |
) |
|
|
|
(0.06 |
) |
|
|
|
(0.10 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(3.07 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
(0.94 |
) |
Tax
return of capital |
|
|
|
— |
| |
|
|
(0.01 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
(0.03 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.12 |
) |
|
|
|
(3.28 |
) |
|
|
|
(0.15 |
) |
|
|
|
(0.06 |
) |
|
|
|
(1.07 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
6.54 |
| |
|
$ |
6.16 |
| |
|
$ |
12.63 |
| |
|
$ |
11.15 |
| |
|
$ |
10.51 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
7.95 |
% |
|
|
|
(33.40 |
)% |
|
|
|
14.50 |
% |
|
|
|
6.79 |
% |
|
|
|
11.05 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
189 |
% |
|
|
|
264 |
% |
|
|
|
206 |
% |
|
|
|
228 |
% |
|
|
|
153 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
22,849 |
| |
|
$ |
75,264 |
| |
|
$ |
96,417 |
| |
|
$ |
80,474 |
| |
|
$ |
20,502 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
1.61 |
% |
|
|
|
1.27 |
% |
|
|
|
1.24 |
% |
|
|
|
1.29 |
% |
|
|
|
1.72 |
% |
Expenses
after reimbursements |
|
|
|
1.02 |
% |
|
|
|
1.02 |
% |
|
|
|
1.02 |
% |
|
|
|
1.02 |
% |
|
|
|
1.02 |
% |
|
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
0.41 |
% |
|
|
|
0.87 |
% |
|
|
|
1.15 |
% |
|
|
|
0.67 |
% |
|
|
|
0.83 |
% |
Net
investment income after reimbursements |
|
|
|
1.00 |
% |
|
|
|
1.12 |
% |
|
|
|
1.37 |
% |
|
|
|
0.94 |
% |
|
|
|
1.53 |
% |
1 |
Per
share amounts are based on average number of shares outstanding during the
period. |
2 |
Assumes
investment at net asset value at the beginning of the year, reinvestment
of all distributions at net asset value on distribution date, and a
complete redemption of the investment at net asset value at the end of the
year, excluding the impact of sales charges. |
3 |
The
portfolio turnover rate is calculated by dividing the lesser of cost of
purchases or proceeds from sales of long term portfolio securities by the
monthly average of the value of the long term portfolio securities.
Portfolio turnover is not annualized for periods less than one year.
|
4 |
Amount
is less than $0.005 per share. |
See accompanying notes to the financial
statements.
174
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Small-Cap Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class A |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
10.07 |
| |
|
$ |
15.32 |
| |
|
$ |
10.99 |
| |
|
$ |
8.84 |
| |
|
$ |
8.02 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) |
|
|
|
0.03 |
1 |
|
|
|
0.06 |
1 |
|
|
|
(0.18 |
) |
|
|
|
(0.20 |
) |
|
|
|
(0.01 |
) |
Net
realized and unrealized gain (loss) |
|
|
|
0.93 |
| |
|
|
(5.15 |
) |
|
|
|
4.51 |
| |
|
|
2.35 |
| |
|
|
0.83 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.96 |
| |
|
|
(5.09 |
) |
|
|
|
4.33 |
| |
|
|
2.15 |
| |
|
|
0.82 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
(— |
)2 |
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
(0.16 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
(— |
)2 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
— |
| |
|
|
(0.16 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
11.03 |
| |
|
$ |
10.07 |
| |
|
$ |
15.32 |
| |
|
$ |
10.99 |
| |
|
$ |
8.84 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return3 |
|
|
|
9.53 |
% |
|
|
|
(33.37 |
)% |
|
|
|
39.40 |
% |
|
|
|
24.32 |
% |
|
|
|
10.27 |
% |
|
|
|
|
| |
Portfolio
turnover rate4 |
|
|
|
79 |
% |
|
|
|
50 |
% |
|
|
|
77 |
% |
|
|
|
62 |
% |
|
|
|
60 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
441 |
| |
|
$ |
393 |
| |
|
$ |
321 |
| |
|
$ |
388 |
| |
|
$ |
1,356 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
3.29 |
% |
|
|
|
3.08 |
% |
|
|
|
2.75 |
% |
|
|
|
2.78 |
% |
|
|
|
2.30 |
% |
Expenses
after reimbursements |
|
|
|
1.59 |
% |
|
|
|
1.77 |
% |
|
|
|
1.77 |
% |
|
|
|
1.77 |
% |
|
|
|
1.77 |
% |
|
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment loss before reimbursements |
|
|
|
(1.41 |
)% |
|
|
|
(0.78 |
)% |
|
|
|
(1.48 |
)% |
|
|
|
(1.74 |
)% |
|
|
|
(0.62 |
)% |
Net
investment income (loss) after reimbursements |
|
|
|
0.29 |
% |
|
|
|
0.53 |
% |
|
|
|
(0.50 |
)% |
|
|
|
(0.73 |
)% |
|
|
|
(0.09 |
)% |
See accompanying notes to the financial
statements.
175
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Small-Cap Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class C |
|
|
Year Ended October 31, 2023 |
|
Year Ended October
31, 2022 |
|
Year Ended October
31, 2021 |
|
Year Ended October
31, 2020 |
|
Year Ended October
31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
10.36 |
| |
|
$ |
15.79 |
| |
|
$ |
11.40 |
| |
|
$ |
9.22 |
| |
|
$ |
8.42 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment loss |
|
|
|
(0.09 |
)1 |
|
|
|
(0.06 |
)1 |
|
|
|
(0.32 |
) |
|
|
|
(0.34 |
) |
|
|
|
(0.38 |
) |
Net
realized and unrealized gain (loss) |
|
|
|
0.99 |
| |
|
|
(5.28 |
) |
|
|
|
4.71 |
| |
|
|
2.52 |
| |
|
|
1.18 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.90 |
| |
|
|
(5.34 |
) |
|
|
|
4.39 |
| |
|
|
2.18 |
| |
|
|
0.80 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
(0.09 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
— |
| |
|
|
(0.09 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
11.26 |
| |
|
$ |
10.36 |
| |
|
$ |
15.79 |
| |
|
$ |
11.40 |
| |
|
$ |
9.22 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return3 |
|
|
|
8.69 |
% |
|
|
|
(33.91 |
)% |
|
|
|
38.51 |
% |
|
|
|
23.64 |
% |
|
|
|
9.50 |
% |
|
|
|
|
| |
Portfolio
turnover rate4 |
|
|
|
79 |
% |
|
|
|
50 |
% |
|
|
|
77 |
% |
|
|
|
62 |
% |
|
|
|
60 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
14 |
| |
|
$ |
41 |
| |
|
$ |
162 |
| |
|
$ |
135 |
| |
|
$ |
144 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
3.96 |
% |
|
|
|
3.72 |
% |
|
|
|
3.47 |
% |
|
|
|
3.91 |
% |
|
|
|
3.05 |
% |
Expenses
after reimbursements |
|
|
|
2.34 |
% |
|
|
|
2.52 |
% |
|
|
|
2.52 |
% |
|
|
|
2.52 |
% |
|
|
|
2.52 |
% |
|
|
|
|
| |
Net
investment loss to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment loss before reimbursements |
|
|
|
(2.35 |
)% |
|
|
|
(1.67 |
)% |
|
|
|
(2.09 |
)% |
|
|
|
(2.70 |
)% |
|
|
|
(1.48 |
)% |
Net
investment loss after reimbursements |
|
|
|
(0.73 |
)% |
|
|
|
(0.47 |
)% |
|
|
|
(1.14 |
)% |
|
|
|
(1.31 |
)% |
|
|
|
(0.95 |
)% |
See accompanying notes to the financial
statements.
176
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Small-Cap Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
13.09 |
| |
|
$ |
19.82 |
| |
|
$ |
14.19 |
| |
|
$ |
11.39 |
| |
|
$ |
10.32 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) |
|
|
|
0.08 |
1 |
|
|
|
0.09 |
1 |
|
|
|
(0.02 |
) |
|
|
|
(0.10 |
) |
|
|
|
0.02 |
|
Net
realized and unrealized gain (loss) |
|
|
|
1.21 |
| |
|
|
(6.65 |
) |
|
|
|
5.65 |
| |
|
|
2.90 |
| |
|
|
1.06 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
1.29 |
| |
|
|
(6.56 |
) |
|
|
|
5.63 |
| |
|
|
2.80 |
| |
|
|
1.08 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
(0.01 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
(0.17 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
(— |
)2 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
— |
| |
|
|
(0.17 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
(0.01 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
14.38 |
| |
|
$ |
13.09 |
| |
|
$ |
19.82 |
| |
|
$ |
14.19 |
| |
|
$ |
11.39 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return3 |
|
|
|
9.85 |
% |
|
|
|
(33.21 |
)% |
|
|
|
39.68 |
% |
|
|
|
24.58 |
% |
|
|
|
10.52 |
% |
|
|
|
|
| |
Portfolio
turnover rate4 |
|
|
|
79 |
% |
|
|
|
50 |
% |
|
|
|
77 |
% |
|
|
|
62 |
% |
|
|
|
60 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
8,043 |
| |
|
$ |
6,237 |
| |
|
$ |
10,994 |
| |
|
$ |
7,419 |
| |
|
$ |
26,296 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
3.03 |
% |
|
|
|
2.77 |
% |
|
|
|
2.45 |
% |
|
|
|
2.56 |
% |
|
|
|
2.05 |
% |
Expenses
after reimbursements |
|
|
|
1.34 |
% |
|
|
|
1.52 |
% |
|
|
|
1.52 |
% |
|
|
|
1.52 |
% |
|
|
|
1.52 |
% |
|
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment loss before reimbursements |
|
|
|
(1.18 |
)% |
|
|
|
(0.66 |
)% |
|
|
|
(1.02 |
)% |
|
|
|
(1.51 |
)% |
|
|
|
(0.38 |
)% |
Net
investment income (loss) after reimbursements |
|
|
|
0.51 |
% |
|
|
|
0.59 |
% |
|
|
|
(0.09 |
)% |
|
|
|
(0.47 |
)% |
|
|
|
0.15 |
% |
1 |
Per
share amounts are based on average number of shares outstanding during the
period. |
2 |
Amount
is less than $0.005 per share. |
3 |
Assumes
investment at net asset value at the beginning of the year, reinvestment
of all distributions at net asset value on distribution date, and a
complete redemption of the investment at net asset value at the end of the
year, excluding the impact of sales charges. |
4 |
The
portfolio turnover rate is calculated by dividing the lesser of cost of
purchases or proceeds from sales of long term portfolio securities by the
monthly average of the value of the long term portfolio securities.
|
See accompanying notes to the financial
statements.
177
ASHMORE FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Frontier Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class A |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October
31, 2020 |
|
Year Ended October
31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
8.36 |
| |
|
$ |
10.13 |
| |
|
$ |
7.07 |
| |
|
$ |
8.02 |
| |
|
$ |
7.66 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) |
|
|
|
0.09 |
| |
|
|
0.08 |
1 |
|
|
|
0.02 |
1 |
|
|
|
(0.01 |
)1 |
|
|
|
0.14 |
|
Net
realized and unrealized gain (loss) |
|
|
|
(0.14 |
) |
|
|
|
(1.67 |
) |
|
|
|
3.10 |
| |
|
|
(0.91 |
) |
|
|
|
0.37 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
(0.05 |
) |
|
|
|
(1.59 |
) |
|
|
|
3.12 |
| |
|
|
(0.92 |
) |
|
|
|
0.51 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.18 |
) |
|
|
|
(0.18 |
) |
|
|
|
(0.06 |
) |
|
|
|
(0.03 |
) |
|
|
|
(0.15 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.18 |
) |
|
|
|
(0.18 |
) |
|
|
|
(0.06 |
) |
|
|
|
(0.03 |
) |
|
|
|
(0.15 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
8.13 |
| |
|
$ |
8.36 |
| |
|
$ |
10.13 |
| |
|
$ |
7.07 |
| |
|
$ |
8.02 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
(0.72 |
)% |
|
|
|
(15.92 |
)% |
|
|
|
44.20 |
% |
|
|
|
(11.47 |
)% |
|
|
|
6.58 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
94 |
% |
|
|
|
95 |
% |
|
|
|
87 |
% |
|
|
|
108 |
% |
|
|
|
93 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
1,597 |
| |
|
$ |
3,018 |
| |
|
$ |
2,561 |
| |
|
$ |
656 |
| |
|
$ |
6,985 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.27 |
% |
|
|
|
2.24 |
% |
|
|
|
2.11 |
% |
|
|
|
2.18 |
% |
|
|
|
2.12 |
% |
Expenses
after reimbursements |
|
|
|
1.77 |
% |
|
|
|
1.77 |
% |
|
|
|
1.77 |
% |
|
|
|
1.77 |
% |
|
|
|
1.77 |
% |
|
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) before reimbursements |
|
|
|
1.57 |
% |
|
|
|
0.49 |
% |
|
|
|
(0.09 |
)% |
|
|
|
(0.59 |
)% |
|
|
|
1.61 |
% |
Net
investment income (loss) after reimbursements |
|
|
|
2.07 |
% |
|
|
|
0.96 |
% |
|
|
|
0.25 |
% |
|
|
|
(0.18 |
)% |
|
|
|
1.96 |
% |
See accompanying notes to the financial
statements.
178
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Frontier Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class C |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
8.03 |
| |
|
$ |
9.75 |
| |
|
$ |
6.82 |
| |
|
$ |
7.80 |
| |
|
$ |
7.47 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) |
|
|
|
(0.02 |
) |
|
|
|
0.02 |
1 |
|
|
|
(0.03 |
)1 |
|
|
|
0.01 |
1 |
|
|
|
0.02 |
|
Net
realized and unrealized gain (loss) |
|
|
|
(0.10 |
) |
|
|
|
(1.62 |
) |
|
|
|
2.97 |
| |
|
|
(0.96 |
) |
|
|
|
0.42 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
(0.12 |
) |
|
|
|
(1.60 |
) |
|
|
|
2.94 |
| |
|
|
(0.95 |
) |
|
|
|
0.44 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.13 |
) |
|
|
|
(0.12 |
) |
|
|
|
(0.01 |
) |
|
|
|
(0.03 |
) |
|
|
|
(0.11 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.13 |
) |
|
|
|
(0.12 |
) |
|
|
|
(0.01 |
) |
|
|
|
(0.03 |
) |
|
|
|
(0.11 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
7.78 |
| |
|
$ |
8.03 |
| |
|
$ |
9.75 |
| |
|
$ |
6.82 |
| |
|
$ |
7.80 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
(1.51 |
)% |
|
|
|
(16.58 |
)% |
|
|
|
43.13 |
% |
|
|
|
(12.13 |
)% |
|
|
|
5.87 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
94 |
% |
|
|
|
95 |
% |
|
|
|
87 |
% |
|
|
|
108 |
% |
|
|
|
93 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
204 |
| |
|
$ |
293 |
| |
|
$ |
209 |
| |
|
$ |
286 |
| |
|
$ |
305 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
3.04 |
% |
|
|
|
3.00 |
% |
|
|
|
2.89 |
% |
|
|
|
3.01 |
% |
|
|
|
2.88 |
% |
Expenses
after reimbursements |
|
|
|
2.52 |
% |
|
|
|
2.52 |
% |
|
|
|
2.52 |
% |
|
|
|
2.52 |
% |
|
|
|
2.52 |
% |
|
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) before reimbursements |
|
|
|
0.77 |
% |
|
|
|
(0.21 |
)% |
|
|
|
(0.77 |
)% |
|
|
|
(0.41 |
)% |
|
|
|
0.48 |
% |
Net
investment income (loss) after reimbursements |
|
|
|
1.29 |
% |
|
|
|
0.27 |
% |
|
|
|
(0.40 |
)% |
|
|
|
0.08 |
% |
|
|
|
0.84 |
% |
See accompanying notes to the financial
statements.
179
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Frontier Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
9.73 |
| |
|
$ |
11.77 |
| |
|
$ |
8.20 |
| |
|
$ |
9.32 |
| |
|
$ |
8.86 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.24 |
| |
|
|
0.11 |
1 |
|
|
|
0.06 |
1 |
|
|
|
0.09 |
1 |
|
|
|
0.16 |
|
Net
realized and unrealized gain (loss) |
|
|
|
(0.27 |
) |
|
|
|
(1.95 |
) |
|
|
|
3.58 |
| |
|
|
(1.13 |
) |
|
|
|
0.46 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
(0.03 |
) |
|
|
|
(1.84 |
) |
|
|
|
3.64 |
| |
|
|
(1.04 |
) |
|
|
|
0.62 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.20 |
) |
|
|
|
(0.20 |
) |
|
|
|
(0.07 |
) |
|
|
|
(0.08 |
) |
|
|
|
(0.16 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.20 |
) |
|
|
|
(0.20 |
) |
|
|
|
(0.07 |
) |
|
|
|
(0.08 |
) |
|
|
|
(0.16 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
9.50 |
| |
|
$ |
9.73 |
| |
|
$ |
11.77 |
| |
|
$ |
8.20 |
| |
|
$ |
9.32 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
(0.42 |
)% |
|
|
|
(15.78 |
)% |
|
|
|
44.50 |
% |
|
|
|
(11.17 |
)% |
|
|
|
6.97 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
94 |
% |
|
|
|
95 |
% |
|
|
|
87 |
% |
|
|
|
108 |
% |
|
|
|
93 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
61,026 |
| |
|
$ |
69,320 |
| |
|
$ |
77,540 |
| |
|
$ |
53,053 |
| |
|
$ |
81,047 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.03 |
% |
|
|
|
1.98 |
% |
|
|
|
1.88 |
% |
|
|
|
2.00 |
% |
|
|
|
1.88 |
% |
Expenses
after reimbursements |
|
|
|
1.52 |
% |
|
|
|
1.52 |
% |
|
|
|
1.52 |
% |
|
|
|
1.52 |
% |
|
|
|
1.52 |
% |
|
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
1.73 |
% |
|
|
|
0.64 |
% |
|
|
|
0.23 |
% |
|
|
|
0.58 |
% |
|
|
|
1.39 |
% |
Net
investment income after reimbursements |
|
|
|
2.24 |
% |
|
|
|
1.10 |
% |
|
|
|
0.59 |
% |
|
|
|
1.06 |
% |
|
|
|
1.75 |
% |
1 |
Per
share amounts are based on average number of shares outstanding during the
period. |
2 |
Assumes
investment at net asset value at the beginning of the year, reinvestment
of all distributions at net asset value on distribution date, and a
complete redemption of the investment at net asset value at the end of the
year, excluding the impact of sales charges. |
3 |
The
portfolio turnover rate is calculated by dividing the lesser of cost of
purchases or proceeds from sales of long term portfolio securities by the
monthly average of the value of the long term portfolio securities.
|
See accompanying notes to the financial
statements.
180
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class A |
|
|
Year Ended October 31, 2023 |
|
Year Ended October
31, 2022 |
|
Year Ended October
31, 2021 |
|
Year Ended October
31, 2020 |
|
Year Ended October
31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
8.29 |
| |
|
$ |
16.77 |
| |
|
$ |
13.08 |
| |
|
$ |
11.18 |
| |
|
$ |
9.38 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) |
|
|
|
0.10 |
1 |
|
|
|
0.13 |
| |
|
|
(0.06 |
)1 |
|
|
|
0.08 |
| |
|
|
0.05 |
|
Net
realized and unrealized gain (loss) |
|
|
|
1.01 |
| |
|
|
(5.67 |
) |
|
|
|
4.07 |
| |
|
|
1.84 |
| |
|
|
1.97 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
1.11 |
| |
|
|
(5.54 |
) |
|
|
|
4.01 |
| |
|
|
1.92 |
| |
|
|
2.02 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.12 |
) |
|
|
|
(0.09 |
) |
|
|
|
(0.10 |
) |
|
|
|
(0.02 |
) |
|
|
|
(0.22 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(2.83 |
) |
|
|
|
(0.22 |
) |
|
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
(0.02 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.12 |
) |
|
|
|
(2.94 |
) |
|
|
|
(0.32 |
) |
|
|
|
(0.02 |
) |
|
|
|
(0.22 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
9.28 |
| |
|
$ |
8.29 |
| |
|
$ |
16.77 |
| |
|
$ |
13.08 |
| |
|
$ |
11.18 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
13.26 |
% |
|
|
|
(39.01 |
)% |
|
|
|
30.92 |
% |
|
|
|
17.21 |
% |
|
|
|
21.66 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
79 |
% |
|
|
|
85 |
% |
|
|
|
77 |
% |
|
|
|
76 |
% |
|
|
|
76 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
4,469 |
| |
|
$ |
3,081 |
| |
|
$ |
3,872 |
| |
|
$ |
1,394 |
| |
|
$ |
641 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
1.69 |
% |
|
|
|
1.65 |
% |
|
|
|
1.56 |
% |
|
|
|
1.81 |
% |
|
|
|
1.91 |
% |
Expenses
after reimbursements |
|
|
|
1.32 |
% |
|
|
|
1.42 |
% |
|
|
|
1.42 |
% |
|
|
|
1.42 |
% |
|
|
|
1.42 |
% |
|
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) before reimbursements |
|
|
|
0.59 |
% |
|
|
|
0.75 |
% |
|
|
|
(0.48 |
)% |
|
|
|
(0.42 |
)% |
|
|
|
(0.01 |
)% |
Net
investment income (loss) after reimbursements |
|
|
|
0.96 |
% |
|
|
|
0.98 |
% |
|
|
|
(0.34 |
)% |
|
|
|
(0.03 |
)% |
|
|
|
0.48 |
% |
See accompanying notes to the financial
statements.
181
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class C |
|
|
Year Ended October
31, 2023 |
|
Year Ended October
31, 2022 |
|
Year Ended October
31, 2021 |
|
Year Ended October
31, 2020 |
|
Year Ended October
31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
7.70 |
| |
|
$ |
15.80 |
| |
|
$ |
12.39 |
| |
|
$ |
10.64 |
| |
|
$ |
8.96 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) |
|
|
|
0.03 |
1 |
|
|
|
0.02 |
| |
|
|
(0.16 |
)1 |
|
|
|
(0.10 |
) |
|
|
|
(0.04 |
) |
Net
realized and unrealized gain (loss) |
|
|
|
0.93 |
| |
|
|
(5.25 |
) |
|
|
|
3.86 |
| |
|
|
1.85 |
| |
|
|
1.91 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.96 |
| |
|
|
(5.23 |
) |
|
|
|
3.70 |
| |
|
|
1.75 |
| |
|
|
1.87 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.05 |
) |
|
|
|
(0.03 |
) |
|
|
|
(0.07 |
) |
|
|
|
— |
| |
|
|
(0.19 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(2.83 |
) |
|
|
|
(0.22 |
) |
|
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
(0.01 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.05 |
) |
|
|
|
(2.87 |
) |
|
|
|
(0.29 |
) |
|
|
|
— |
| |
|
|
(0.19 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
8.61 |
| |
|
$ |
7.70 |
| |
|
$ |
15.80 |
| |
|
$ |
12.39 |
| |
|
$ |
10.64 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
12.45 |
% |
|
|
|
(39.46 |
)% |
|
|
|
30.13 |
% |
|
|
|
16.45 |
% |
|
|
|
20.89 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
79 |
% |
|
|
|
85 |
% |
|
|
|
77 |
% |
|
|
|
76 |
% |
|
|
|
76 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
70 |
| |
|
$ |
105 |
| |
|
$ |
107 |
| |
|
$ |
2 |
| |
|
$ |
1 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.45 |
% |
|
|
|
2.42 |
% |
|
|
|
2.29 |
% |
|
|
|
2.49 |
% |
|
|
|
2.66 |
% |
Expenses
after reimbursements |
|
|
|
2.07 |
% |
|
|
|
2.17 |
% |
|
|
|
2.17 |
% |
|
|
|
2.17 |
% |
|
|
|
2.17 |
% |
|
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) before reimbursements |
|
|
|
(0.09 |
)% |
|
|
|
0.12 |
% |
|
|
|
(1.11 |
)% |
|
|
|
(1.22 |
)% |
|
|
|
(0.95 |
)% |
Net
investment income (loss) after reimbursements |
|
|
|
0.29 |
% |
|
|
|
0.37 |
% |
|
|
|
(0.99 |
)% |
|
|
|
(0.90 |
)% |
|
|
|
(0.46 |
)% |
See accompanying notes to the financial
statements.
182
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Year Ended October 31, 2020 |
|
Year Ended October 31, 2019 |
Net
asset value at beginning of year |
|
|
$ |
7.97 |
| |
|
$ |
16.23 |
| |
|
$ |
12.65 |
| |
|
$ |
10.81 |
| |
|
$ |
9.06 |
|
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) |
|
|
|
0.12 |
1 |
|
|
|
0.17 |
| |
|
|
(0.02 |
)1 |
|
|
|
0.11 |
| |
|
|
0.06 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.98 |
| |
|
|
(5.47 |
) |
|
|
|
3.92 |
| |
|
|
1.77 |
| |
|
|
1.93 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
1.10 |
| |
|
|
(5.30 |
) |
|
|
|
3.90 |
| |
|
|
1.88 |
| |
|
|
1.99 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.14 |
) |
|
|
|
(0.11 |
) |
|
|
|
(0.10 |
) |
|
|
|
(0.04 |
) |
|
|
|
(0.24 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(2.83 |
) |
|
|
|
(0.22 |
) |
|
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
(0.02 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.14 |
) |
|
|
|
(2.96 |
) |
|
|
|
(0.32 |
) |
|
|
|
(0.04 |
) |
|
|
|
(0.24 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of year |
|
|
$ |
8.93 |
| |
|
$ |
7.97 |
| |
|
$ |
16.23 |
| |
|
$ |
12.65 |
| |
|
$ |
10.81 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
13.65 |
% |
|
|
|
(38.85 |
)% |
|
|
|
31.24 |
% |
|
|
|
17.41 |
% |
|
|
|
22.05 |
% |
|
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
79 |
% |
|
|
|
85 |
% |
|
|
|
77 |
% |
|
|
|
76 |
% |
|
|
|
76 |
% |
|
|
|
|
| |
Net
assets, end of year (in thousands) |
|
|
$ |
88,044 |
| |
|
$ |
90,921 |
| |
|
$ |
116,727 |
| |
|
$ |
82,385 |
| |
|
$ |
35,011 |
|
|
|
|
|
| |
Ratios
to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
1.44 |
% |
|
|
|
1.41 |
% |
|
|
|
1.32 |
% |
|
|
|
1.56 |
% |
|
|
|
1.66 |
% |
Expenses
after reimbursements |
|
|
|
1.07 |
% |
|
|
|
1.17 |
% |
|
|
|
1.17 |
% |
|
|
|
1.17 |
% |
|
|
|
1.17 |
% |
|
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) before reimbursements |
|
|
|
0.84 |
% |
|
|
|
1.10 |
% |
|
|
|
(0.26 |
)% |
|
|
|
(0.22 |
)% |
|
|
|
0.09 |
% |
Net
investment income (loss) after reimbursements |
|
|
|
1.21 |
% |
|
|
|
1.34 |
% |
|
|
|
(0.11 |
)% |
|
|
|
0.17 |
% |
|
|
|
0.58 |
% |
1 |
Per
share amounts are based on average number of shares outstanding during the
period. |
2 |
Assumes
investment at net asset value at the beginning of the year, reinvestment
of all distributions at net asset value on distribution date, and a
complete redemption of the investment at net asset value at the end of the
year, excluding the impact of sales charges. |
3 |
The
portfolio turnover rate is calculated by dividing the lesser of cost of
purchases or proceeds from sales of long term portfolio securities by the
monthly average of the value of the long term portfolio securities.
|
See accompanying notes to the financial
statements.
183
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Equity ESG Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class A |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Period Ended October 31, 20201 |
Net
asset value at beginning of period |
|
|
$ |
7.61 |
| |
|
$ |
14.91 |
| |
|
$ |
12.05 |
| |
|
$ |
10.00 |
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) |
|
|
|
0.03 |
| |
|
|
0.01 |
| |
|
|
(0.09 |
) |
|
|
|
(0.01 |
) |
Net
realized and unrealized gain (loss) |
|
|
|
1.06 |
| |
|
|
(5.27 |
) |
|
|
|
3.04 |
| |
|
|
2.06 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
1.09 |
| |
|
|
(5.26 |
) |
|
|
|
2.95 |
| |
|
|
2.05 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.06 |
) |
|
|
|
— |
| |
|
|
(0.09 |
) |
|
|
|
— |
|
From
net realized gain |
|
|
|
— |
| |
|
|
(2.03 |
) |
|
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
(0.01 |
) |
|
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.06 |
) |
|
|
|
(2.04 |
) |
|
|
|
(0.09 |
) |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of period |
|
|
$ |
8.64 |
| |
|
$ |
7.61 |
| |
|
$ |
14.91 |
| |
|
$ |
12.05 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
14.21 |
% |
|
|
|
(40.26 |
)% |
|
|
|
24.50 |
% |
|
|
|
20.50 |
% |
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
51 |
% |
|
|
|
49 |
% |
|
|
|
55 |
% |
|
|
|
45 |
% |
|
|
|
| |
Net
assets, end of period (in thousands) |
|
|
$ |
1 |
| |
|
$ |
1 |
| |
|
$ |
2 |
| |
|
$ |
1 |
|
|
|
|
| |
Ratios
to average net assets:4 |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.49 |
% |
|
|
|
2.49 |
% |
|
|
|
2.39 |
% |
|
|
|
4.16 |
% |
Expenses
after reimbursements |
|
|
|
1.32 |
% |
|
|
|
1.42 |
% |
|
|
|
1.42 |
% |
|
|
|
1.42 |
% |
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment loss before reimbursements |
|
|
|
(0.95 |
)% |
|
|
|
(1.12 |
)% |
|
|
|
(1.56 |
)% |
|
|
|
(2.89 |
)% |
Net
investment income (loss) after reimbursements |
|
|
|
0.22 |
% |
|
|
|
(0.05 |
)% |
|
|
|
(0.59 |
)% |
|
|
|
(0.15 |
)% |
See accompanying notes to the financial
statements.
184
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Equity ESG Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class C |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Period Ended October 31, 20201 |
Net
asset value at beginning of period |
|
|
$ |
7.47 |
| |
|
$ |
14.77 |
| |
|
$ |
12.00 |
| |
|
$ |
10.00 |
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment loss |
|
|
|
(0.05 |
) |
|
|
|
(0.04 |
) |
|
|
|
(0.20 |
) |
|
|
|
(0.06 |
) |
Net
realized and unrealized gain (loss) |
|
|
|
1.05 |
| |
|
|
(5.23 |
) |
|
|
|
3.05 |
| |
|
|
2.06 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
1.00 |
| |
|
|
(5.27 |
) |
|
|
|
2.85 |
| |
|
|
2.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.02 |
) |
|
|
|
— |
| |
|
|
(0.08 |
) |
|
|
|
— |
|
From
net realized gain |
|
|
|
— |
| |
|
|
(2.03 |
) |
|
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.02 |
) |
|
|
|
(2.03 |
) |
|
|
|
(0.08 |
) |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of period |
|
|
$ |
8.45 |
| |
|
$ |
7.47 |
| |
|
$ |
14.77 |
| |
|
$ |
12.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
13.32 |
% |
|
|
|
(40.76 |
)% |
|
|
|
23.81 |
% |
|
|
|
20.00 |
% |
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
51 |
% |
|
|
|
49 |
% |
|
|
|
55 |
% |
|
|
|
45 |
% |
|
|
|
| |
Net
assets, end of period (in thousands) |
|
|
$ |
1 |
| |
|
$ |
1 |
| |
|
$ |
1 |
| |
|
$ |
1 |
|
|
|
|
| |
Ratios
to average net assets:4 |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
3.22 |
% |
|
|
|
3.22 |
% |
|
|
|
3.14 |
% |
|
|
|
4.77 |
% |
Expenses
after reimbursements |
|
|
|
2.07 |
% |
|
|
|
2.17 |
% |
|
|
|
2.17 |
% |
|
|
|
2.17 |
% |
|
|
|
| |
Net
investment loss to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment loss before reimbursements |
|
|
|
(1.70 |
)% |
|
|
|
(1.85 |
)% |
|
|
|
(2.32 |
)% |
|
|
|
(3.50 |
)% |
Net
investment loss after reimbursements |
|
|
|
(0.55 |
)% |
|
|
|
(0.80 |
)% |
|
|
|
(1.35 |
)% |
|
|
|
(0.90 |
)% |
See accompanying notes to the financial
statements.
185
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Equity ESG Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year Ended October 31, 2023 |
|
Year Ended October
31, 2022 |
|
Year Ended October
31, 2021 |
|
Period Ended October
31, 20201 |
Net
asset value at beginning of period |
|
|
$ |
7.65 |
| |
|
$ |
14.96 |
| |
|
$ |
12.06 |
| |
|
$ |
10.00 |
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) |
|
|
|
0.05 |
| |
|
|
0.03 |
| |
|
|
(0.05 |
) |
|
|
|
0.01 |
|
Net
realized and unrealized gain (loss) |
|
|
|
1.06 |
| |
|
|
(5.29 |
) |
|
|
|
3.04 |
| |
|
|
2.05 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
1.11 |
| |
|
|
(5.26 |
) |
|
|
|
2.99 |
| |
|
|
2.06 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.07 |
) |
|
|
|
— |
| |
|
|
(0.09 |
) |
|
|
|
(— |
)5 |
From
net realized gain |
|
|
|
— |
| |
|
|
(2.03 |
) |
|
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
(0.02 |
) |
|
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.07 |
) |
|
|
|
(2.05 |
) |
|
|
|
(0.09 |
) |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of period |
|
|
$ |
8.69 |
| |
|
$ |
7.65 |
| |
|
$ |
14.96 |
| |
|
$ |
12.06 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
14.45 |
% |
|
|
|
(40.10 |
)% |
|
|
|
24.82 |
% |
|
|
|
20.60 |
% |
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
51 |
% |
|
|
|
49 |
% |
|
|
|
55 |
% |
|
|
|
45 |
% |
|
|
|
| |
Net
assets, end of period (in thousands) |
|
|
$ |
10,149 |
| |
|
$ |
8,884 |
| |
|
$ |
15,041 |
| |
|
$ |
12,062 |
|
|
|
|
| |
Ratios
to average net assets:4 |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.19 |
% |
|
|
|
2.12 |
% |
|
|
|
2.16 |
% |
|
|
|
3.68 |
% |
Expenses
after reimbursements |
|
|
|
1.07 |
% |
|
|
|
1.17 |
% |
|
|
|
1.17 |
% |
|
|
|
1.17 |
% |
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment loss before reimbursements |
|
|
|
(0.63 |
)% |
|
|
|
(0.74 |
)% |
|
|
|
(1.34 |
)% |
|
|
|
(2.41 |
)% |
Net
investment income (loss) after reimbursements |
|
|
|
0.49 |
% |
|
|
|
0.21 |
% |
|
|
|
(0.35 |
)% |
|
|
|
0.10 |
% |
1 |
Class A,
Class C and the Institutional Class commenced investment operations on
February 26, 2020. |
2 |
Assumes
investment at net asset value at the beginning of the period, reinvestment
of distributions at net asset value on distribution date, and a complete
redemption of the investment at net asset value at the end of the period,
excluding the impact of sales charges. Total return is not annualized for
periods less than one year. |
3 |
The
portfolio turnover rate is calculated by dividing the lesser of cost of
purchases or proceeds from sales of long term portfolio securities by the
monthly average of the value of the long term portfolio securities.
Portfolio turnover is not annualized for periods less than one year.
|
4 |
Annualized
for periods less than one year. |
5 |
Amount
is less than $0.005 per share. |
See accompanying notes to the financial
statements.
186
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Low Duration Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class A |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Period Ended October 31, 20201 |
Net
asset value at beginning of period |
|
|
$ |
8.32 |
| |
|
$ |
9.80 |
| |
|
$ |
10.18 |
| |
|
$ |
10.00 |
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.33 |
| |
|
|
0.29 |
| |
|
|
0.38 |
| |
|
|
0.14 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.21 |
| |
|
|
(1.48 |
) |
|
|
|
(0.35 |
) |
|
|
|
0.19 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.54 |
| |
|
|
(1.19 |
) |
|
|
|
0.03 |
| |
|
|
0.33 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.35 |
) |
|
|
|
(0.29 |
) |
|
|
|
(0.38 |
) |
|
|
|
(0.15 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(— |
)2 |
|
|
|
(0.03 |
) |
|
|
|
— |
|
Tax
return of capital |
|
|
|
(0.01 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.36 |
) |
|
|
|
(0.29 |
) |
|
|
|
(0.41 |
) |
|
|
|
(0.15 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of period |
|
|
$ |
8.50 |
| |
|
$ |
8.32 |
| |
|
$ |
9.80 |
| |
|
$ |
10.18 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return3 |
|
|
|
6.60 |
% |
|
|
|
(12.27 |
)% |
|
|
|
0.20 |
% |
|
|
|
3.30 |
% |
|
|
|
| |
Portfolio
turnover rate4 |
|
|
|
50 |
% |
|
|
|
52 |
% |
|
|
|
43 |
% |
|
|
|
12 |
% |
|
|
|
| |
Net
assets, end of period (in thousands) |
|
|
$ |
1 |
| |
|
$ |
1 |
| |
|
$ |
1 |
| |
|
$ |
1 |
|
|
|
|
| |
Ratios
to average net assets:5 |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.14 |
% |
|
|
|
2.05 |
% |
|
|
|
1.71 |
% |
|
|
|
4.87 |
% |
Expenses
after reimbursements |
|
|
|
0.92 |
% |
|
|
|
0.92 |
% |
|
|
|
0.92 |
% |
|
|
|
0.92 |
% |
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
2.68 |
% |
|
|
|
2.06 |
% |
|
|
|
2.88 |
% |
|
|
|
0.05 |
% |
Net
investment income after reimbursements |
|
|
|
3.90 |
% |
|
|
|
3.19 |
% |
|
|
|
3.67 |
% |
|
|
|
4.00 |
% |
See accompanying notes to the financial
statements.
187
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore
Emerging Markets Low Duration Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class C |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Period Ended October 31, 20201 |
Net
asset value at beginning of period |
|
|
$ |
8.32 |
| |
|
$ |
9.80 |
| |
|
$ |
10.18 |
| |
|
$ |
10.00 |
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.27 |
| |
|
|
0.22 |
| |
|
|
0.30 |
| |
|
|
0.12 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.20 |
| |
|
|
(1.48 |
) |
|
|
|
(0.35 |
) |
|
|
|
0.18 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.47 |
| |
|
|
(1.26 |
) |
|
|
|
(0.05 |
) |
|
|
|
0.30 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.29 |
) |
|
|
|
(0.22 |
) |
|
|
|
(0.30 |
) |
|
|
|
(0.12 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(— |
)2 |
|
|
|
(0.03 |
) |
|
|
|
— |
|
Tax
return of capital |
|
|
|
(0.01 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.30 |
) |
|
|
|
(0.22 |
) |
|
|
|
(0.33 |
) |
|
|
|
(0.12 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of period |
|
|
$ |
8.49 |
| |
|
$ |
8.32 |
| |
|
$ |
9.80 |
| |
|
$ |
10.18 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return3 |
|
|
|
5.68 |
% |
|
|
|
(12.94 |
)% |
|
|
|
(0.57 |
)% |
|
|
|
3.03 |
% |
|
|
|
| |
Portfolio
turnover rate4 |
|
|
|
50 |
% |
|
|
|
52 |
% |
|
|
|
43 |
% |
|
|
|
12 |
% |
|
|
|
| |
Net
assets, end of period (in thousands) |
|
|
$ |
1 |
| |
|
$ |
1 |
| |
|
$ |
1 |
| |
|
$ |
1 |
|
|
|
|
| |
Ratios
to average net assets:5 |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.82 |
% |
|
|
|
2.72 |
% |
|
|
|
2.42 |
% |
|
|
|
5.60 |
% |
Expenses
after reimbursements |
|
|
|
1.67 |
% |
|
|
|
1.67 |
% |
|
|
|
1.67 |
% |
|
|
|
1.67 |
% |
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) before reimbursements |
|
|
|
2.01 |
% |
|
|
|
1.39 |
% |
|
|
|
2.16 |
% |
|
|
|
(0.68 |
)% |
Net
investment income after reimbursements |
|
|
|
3.16 |
% |
|
|
|
2.44 |
% |
|
|
|
2.91 |
% |
|
|
|
3.25 |
% |
See accompanying notes to the financial
statements.
188
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore
Emerging Markets Low Duration Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year Ended October
31, 2023 |
|
Year Ended October
31, 2022 |
|
Year Ended October
31, 2021 |
|
Period Ended October
31, 20201 |
Net
asset value at beginning of period |
|
|
$ |
8.32 |
| |
|
$ |
9.80 |
| |
|
$ |
10.18 |
| |
|
$ |
10.00 |
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.34 |
| |
|
|
0.30 |
| |
|
|
0.40 |
| |
|
|
0.16 |
|
Net
realized and unrealized gain (loss) |
|
|
|
0.22 |
| |
|
|
(1.48 |
) |
|
|
|
(0.35 |
) |
|
|
|
0.18 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.56 |
| |
|
|
(1.18 |
) |
|
|
|
0.05 |
| |
|
|
0.34 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.36 |
) |
|
|
|
(0.30 |
) |
|
|
|
(0.40 |
) |
|
|
|
(0.16 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(— |
)2 |
|
|
|
(0.03 |
) |
|
|
|
— |
|
Tax
return of capital |
|
|
|
(0.01 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.37 |
) |
|
|
|
(0.30 |
) |
|
|
|
(0.43 |
) |
|
|
|
(0.16 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of period |
|
|
$ |
8.51 |
| |
|
$ |
8.32 |
| |
|
$ |
9.80 |
| |
|
$ |
10.18 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return3 |
|
|
|
6.88 |
% |
|
|
|
(12.16 |
)% |
|
|
|
0.40 |
% |
|
|
|
3.43 |
% |
|
|
|
| |
Portfolio
turnover rate4 |
|
|
|
50 |
% |
|
|
|
52 |
% |
|
|
|
43 |
% |
|
|
|
12 |
% |
|
|
|
| |
Net
assets, end of period (in thousands) |
|
|
$ |
9,490 |
| |
|
$ |
8,996 |
| |
|
$ |
10,286 |
| |
|
$ |
10,317 |
|
|
|
|
| |
Ratios
to average net assets:5 |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
1.63 |
% |
|
|
|
1.48 |
% |
|
|
|
1.38 |
% |
|
|
|
4.58 |
% |
Expenses
after reimbursements |
|
|
|
0.67 |
% |
|
|
|
0.67 |
% |
|
|
|
0.67 |
% |
|
|
|
0.67 |
% |
|
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
3.10 |
% |
|
|
|
2.54 |
% |
|
|
|
3.21 |
% |
|
|
|
0.29 |
% |
Net
investment income after reimbursements |
|
|
|
4.06 |
% |
|
|
|
3.35 |
% |
|
|
|
3.92 |
% |
|
|
|
4.20 |
% |
1 |
Class A,
Class C and the Institutional Class commenced investment operations on
June 15, 2020. |
2 |
Amount
is less than $0.005 per share. |
3 |
Assumes
investment at net asset value at the beginning of the period, reinvestment
of distributions at net asset value on distribution date, and a complete
redemption of the investment at net asset value at the end of the period,
excluding the impact of sales charges. Total return is not annualized for
periods less than one year. |
4 |
The
portfolio turnover rate is calculated by dividing the lesser of cost of
purchases or proceeds from sales of long term portfolio securities by the
monthly average of the value of the long term portfolio securities.
Portfolio turnover is not annualized for periods less than one year.
|
5 |
Annualized
for periods less than one year. |
See accompanying notes to the financial
statements.
189
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Debt Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class A |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Period Ended October 31, 20201 |
Net
asset value at beginning of period |
|
|
$ |
7.52 |
| |
|
$ |
9.90 |
| |
|
$ |
9.85 |
| |
|
$ |
10.00 |
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.37 |
| |
|
|
0.30 |
| |
|
|
0.32 |
| |
|
|
0.03 |
|
Net
realized and unrealized gain (loss) |
|
|
|
(0.11 |
) |
|
|
|
(2.37 |
) |
|
|
|
0.06 |
| |
|
|
(0.15 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.26 |
| |
|
|
(2.07 |
) |
|
|
|
0.38 |
| |
|
|
(0.12 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.41 |
) |
|
|
|
(0.31 |
) |
|
|
|
(0.33 |
) |
|
|
|
(0.03 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
(0.03 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.44 |
) |
|
|
|
(0.31 |
) |
|
|
|
(0.33 |
) |
|
|
|
(0.03 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of period |
|
|
$ |
7.34 |
| |
|
$ |
7.52 |
| |
|
$ |
9.90 |
| |
|
$ |
9.85 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
3.31 |
% |
|
|
|
(21.27 |
)% |
|
|
|
3.85 |
% |
|
|
|
(1.19 |
)% |
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
109 |
% |
|
|
|
53 |
% |
|
|
|
44 |
% |
|
|
|
3 |
% |
|
|
|
| |
Net
assets, end of period (in thousands) |
|
|
$ |
1 |
| |
|
$ |
1 |
| |
|
$ |
1 |
| |
|
$ |
1 |
|
|
|
|
| |
Ratios
to average net assets:4 |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
1.74 |
% |
|
|
|
1.56 |
% |
|
|
|
1.77 |
% |
|
|
|
4.88 |
% |
Expenses
after reimbursements |
|
|
|
0.96 |
% |
|
|
|
0.97 |
% |
|
|
|
0.97 |
% |
|
|
|
0.97 |
% |
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) before reimbursements |
|
|
|
4.02 |
% |
|
|
|
2.87 |
% |
|
|
|
2.42 |
% |
|
|
|
(1.27 |
)% |
Net
investment income after reimbursements |
|
|
|
4.80 |
% |
|
|
|
3.46 |
% |
|
|
|
3.22 |
% |
|
|
|
2.64 |
% |
See accompanying notes to the financial
statements.
190
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Debt Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class C |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Year Ended October 31, 2021 |
|
Period Ended October 31, 20201 |
Net
asset value at beginning of period |
|
|
$ |
7.52 |
| |
|
$ |
9.90 |
| |
|
$ |
9.85 |
| |
|
$ |
10.00 |
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.32 |
| |
|
|
0.24 |
| |
|
|
0.25 |
| |
|
|
0.02 |
|
Net
realized and unrealized gain (loss) |
|
|
|
(0.11 |
) |
|
|
|
(2.38 |
) |
|
|
|
0.05 |
| |
|
|
(0.15 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.21 |
| |
|
|
(2.14 |
) |
|
|
|
0.30 |
| |
|
|
(0.13 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.36 |
) |
|
|
|
(0.24 |
) |
|
|
|
(0.25 |
) |
|
|
|
(0.02 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
(0.03 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.39 |
) |
|
|
|
(0.24 |
) |
|
|
|
(0.25 |
) |
|
|
|
(0.02 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of period |
|
|
$ |
7.34 |
| |
|
$ |
7.52 |
| |
|
$ |
9.90 |
| |
|
$ |
9.85 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
2.59 |
% |
|
|
|
(21.84 |
)% |
|
|
|
3.08 |
% |
|
|
|
(1.26 |
)% |
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
109 |
% |
|
|
|
53 |
% |
|
|
|
44 |
% |
|
|
|
3 |
% |
|
|
|
| |
Net
assets, end of period (in thousands) |
|
|
$ |
1 |
| |
|
$ |
1 |
| |
|
$ |
1 |
| |
|
$ |
1 |
|
|
|
|
| |
Ratios
to average net assets:4 |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.17 |
% |
|
|
|
2.12 |
% |
|
|
|
2.49 |
% |
|
|
|
5.62 |
% |
Expenses
after reimbursements |
|
|
|
1.71 |
% |
|
|
|
1.72 |
% |
|
|
|
1.72 |
% |
|
|
|
1.72 |
% |
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) before reimbursements |
|
|
|
3.67 |
% |
|
|
|
2.34 |
% |
|
|
|
1.70 |
% |
|
|
|
(2.02 |
)% |
Net
investment income after reimbursements |
|
|
|
4.13 |
% |
|
|
|
2.74 |
% |
|
|
|
2.47 |
% |
|
|
|
1.88 |
% |
See accompanying notes to the financial statements.
191
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Debt Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year Ended October
31, 2023 |
|
Year Ended October
31, 2022 |
|
Year Ended October
31, 2021 |
|
Period Ended October
31, 20201 |
Net
asset value at beginning of period |
|
|
$ |
7.53 |
| |
|
$ |
9.90 |
| |
|
$ |
9.85 |
| |
|
$ |
10.00 |
|
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.38 |
| |
|
|
0.32 |
| |
|
|
0.35 |
| |
|
|
0.03 |
|
Net
realized and unrealized gain (loss) |
|
|
|
(0.11 |
) |
|
|
|
(2.37 |
) |
|
|
|
0.05 |
| |
|
|
(0.15 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.27 |
| |
|
|
(2.05 |
) |
|
|
|
0.40 |
| |
|
|
(0.12 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.42 |
) |
|
|
|
(0.32 |
) |
|
|
|
(0.35 |
) |
|
|
|
(0.03 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
Tax
return of capital |
|
|
|
(0.03 |
) |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.45 |
) |
|
|
|
(0.32 |
) |
|
|
|
(0.35 |
) |
|
|
|
(0.03 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of period |
|
|
$ |
7.35 |
| |
|
$ |
7.53 |
| |
|
$ |
9.90 |
| |
|
$ |
9.85 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
3.41 |
% |
|
|
|
(21.02 |
)% |
|
|
|
4.03 |
% |
|
|
|
(1.16 |
)% |
|
|
|
| |
Portfolio
turnover rate3 |
|
|
|
109 |
% |
|
|
|
53 |
% |
|
|
|
44 |
% |
|
|
|
3 |
% |
|
|
|
| |
Net
assets, end of period (in thousands) |
|
|
$ |
16,347 |
| |
|
$ |
16,042 |
| |
|
$ |
20,442 |
| |
|
$ |
19,757 |
|
|
|
|
| |
Ratios
to average net assets:4 |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
1.31 |
% |
|
|
|
1.19 |
% |
|
|
|
1.48 |
% |
|
|
|
4.43 |
% |
Expenses
after reimbursements |
|
|
|
0.71 |
% |
|
|
|
0.72 |
% |
|
|
|
0.72 |
% |
|
|
|
0.72 |
% |
|
|
|
| |
Net
investment income (loss) to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income (loss) before reimbursements |
|
|
|
4.34 |
% |
|
|
|
3.21 |
% |
|
|
|
2.66 |
% |
|
|
|
(0.92 |
)% |
Net
investment income after reimbursements |
|
|
|
4.94 |
% |
|
|
|
3.68 |
% |
|
|
|
3.42 |
% |
|
|
|
2.79 |
% |
1 |
Class A,
Class C and the Institutional Class commenced investment operations on
September 17, 2020. |
2 |
Assumes
investment at net asset value at the beginning of the period, reinvestment
of distributions at net asset value on distribution date, and a complete
redemption of the investment at net asset value at the end of the period,
excluding the impact of sales charges. Total return is not annualized for
periods less than one year. |
3 |
The
portfolio turnover rate is calculated by dividing the lesser of cost of
purchases or proceeds from sales of long term portfolio securities by the
monthly average of the value of the long term portfolio securities.
Portfolio turnover is not annualized for periods less than one year.
|
4 |
Annualized
for periods less than one year. |
See accompanying notes to the financial
statements.
192
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Corporate Income ESG Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class A |
|
|
Year Ended October
31, 2023 |
|
Year Ended October
31, 2022 |
|
Period Ended October
31, 20211 |
Net
asset value at beginning of period |
|
|
$ |
6.26 |
| |
|
$ |
9.11 |
| |
|
$ |
10.00 |
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.32 |
| |
|
|
0.36 |
| |
|
|
0.29 |
|
Net
realized and unrealized loss |
|
|
|
(0.11 |
) |
|
|
|
(2.83 |
) |
|
|
|
(0.89 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.21 |
| |
|
|
(2.47 |
) |
|
|
|
(0.60 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.40 |
) |
|
|
|
(0.36 |
) |
|
|
|
(0.29 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(0.02 |
) |
|
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.40 |
) |
|
|
|
(0.38 |
) |
|
|
|
(0.29 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of period |
|
|
$ |
6.07 |
| |
|
$ |
6.26 |
| |
|
$ |
9.11 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
2.98 |
% |
|
|
|
(27.67 |
)% |
|
|
|
(6.11 |
)% |
|
|
| |
Portfolio
turnover rate3 |
|
|
|
32 |
% |
|
|
|
34 |
% |
|
|
|
15 |
% |
|
|
| |
Net
assets, end of period (in thousands) |
|
|
$ |
1 |
| |
|
$ |
1 |
| |
|
$ |
1 |
|
|
|
| |
Ratios
to average net assets:4 |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.13 |
% |
|
|
|
2.59 |
% |
|
|
|
3.35 |
% |
Expenses
after reimbursements |
|
|
|
1.12 |
% |
|
|
|
1.12 |
% |
|
|
|
1.12 |
% |
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
3.93 |
% |
|
|
|
3.26 |
% |
|
|
|
2.26 |
% |
Net
investment income after reimbursements |
|
|
|
4.94 |
% |
|
|
|
4.73 |
% |
|
|
|
4.49 |
% |
See accompanying notes to the financial
statements.
193
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Corporate Income ESG Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class C |
|
|
Year Ended October
31, 2023 |
|
Year Ended October
31, 2022 |
|
Period Ended October
31, 20211 |
Net
asset value at beginning of period |
|
|
$ |
6.26 |
| |
|
$ |
9.11 |
| |
|
$ |
10.00 |
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.27 |
| |
|
|
0.30 |
| |
|
|
0.24 |
|
Net
realized and unrealized loss |
|
|
|
(0.11 |
) |
|
|
|
(2.82 |
) |
|
|
|
(0.88 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.16 |
| |
|
|
(2.52 |
) |
|
|
|
(0.64 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.36 |
) |
|
|
|
(0.31 |
) |
|
|
|
(0.25 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(0.02 |
) |
|
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.36 |
) |
|
|
|
(0.33 |
) |
|
|
|
(0.25 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of period |
|
|
$ |
6.06 |
| |
|
$ |
6.26 |
| |
|
$ |
9.11 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
2.33 |
% |
|
|
|
(28.23 |
)% |
|
|
|
(6.55 |
)% |
|
|
| |
Portfolio
turnover rate3 |
|
|
|
32 |
% |
|
|
|
34 |
% |
|
|
|
15 |
% |
|
|
| |
Net
assets, end of period (in thousands) |
|
|
$ |
1 |
| |
|
$ |
1 |
| |
|
$ |
1 |
|
|
|
| |
Ratios
to average net assets:4 |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
3.18 |
% |
|
|
|
3.32 |
% |
|
|
|
4.10 |
% |
Expenses
after reimbursements |
|
|
|
1.87 |
% |
|
|
|
1.87 |
% |
|
|
|
1.87 |
% |
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
2.93 |
% |
|
|
|
2.53 |
% |
|
|
|
1.52 |
% |
Net
investment income after reimbursements |
|
|
|
4.24 |
% |
|
|
|
3.98 |
% |
|
|
|
3.75 |
% |
See accompanying notes to the financial
statements.
194
ASHMORE
FUNDS
FINANCIAL
HIGHLIGHTS
Ashmore
Emerging Markets Corporate Income ESG Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional Class |
|
|
Year Ended October 31, 2023 |
|
Year Ended October 31, 2022 |
|
Period Ended October 31, 20211 |
Net
asset value at beginning of period |
|
|
$ |
6.26 |
| |
|
$ |
9.11 |
| |
|
$ |
10.00 |
|
|
|
| |
Income
(loss) from investment operations: |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income |
|
|
|
0.33 |
| |
|
|
0.37 |
| |
|
|
0.31 |
|
Net
realized and unrealized loss |
|
|
|
(0.11 |
) |
|
|
|
(2.83 |
) |
|
|
|
(0.89 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
0.22 |
| |
|
|
(2.46 |
) |
|
|
|
(0.58 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Less
distributions: |
|
|
|
|
| |
|
|
|
| |
|
|
| |
From
net investment income |
|
|
|
(0.41 |
) |
|
|
|
(0.37 |
) |
|
|
|
(0.31 |
) |
From
net realized gain |
|
|
|
— |
| |
|
|
(0.02 |
) |
|
|
|
— |
|
Tax
return of capital |
|
|
|
— |
| |
|
|
— |
| |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
distributions |
|
|
|
(0.41 |
) |
|
|
|
(0.39 |
) |
|
|
|
(0.31 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of period |
|
|
$ |
6.07 |
| |
|
$ |
6.26 |
| |
|
$ |
9.11 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total
return2 |
|
|
|
3.36 |
% |
|
|
|
(27.56 |
)% |
|
|
|
(5.96 |
)% |
|
|
| |
Portfolio
turnover rate3 |
|
|
|
32 |
% |
|
|
|
34 |
% |
|
|
|
15 |
% |
|
|
| |
Net
assets, end of period (in thousands) |
|
|
$ |
6,833 |
| |
|
$ |
6,720 |
| |
|
$ |
9,356 |
|
|
|
| |
Ratios
to average net assets:4 |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Total
expenses to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Expenses
before reimbursements |
|
|
|
2.07 |
% |
|
|
|
2.12 |
% |
|
|
|
3.08 |
% |
Expenses
after reimbursements |
|
|
|
0.87 |
% |
|
|
|
0.87 |
% |
|
|
|
0.87 |
% |
|
|
| |
Net
investment income to average net assets: |
|
|
|
|
| |
|
|
|
| |
|
|
| |
Net
investment income before reimbursements |
|
|
|
3.98 |
% |
|
|
|
3.66 |
% |
|
|
|
2.52 |
% |
Net
investment income after reimbursements |
|
|
|
5.18 |
% |
|
|
|
4.91 |
% |
|
|
|
4.73 |
% |
1 |
Class A,
Class C and the Institutional Class commenced investment operations on
February 26, 2021. |
2 |
Assumes
investment at net asset value at the beginning of the period, reinvestment
of distributions at net asset value on distribution date, and a complete
redemption of the investment at net asset value at the end of the period,
excluding the impact of sales charges. Total return is not annualized for
periods less than one year. |
3 |
The
portfolio turnover rate is calculated by dividing the lesser of cost of
purchases or proceeds from sales of long term portfolio securities by the
monthly average of the value of the long term portfolio securities.
|
4 |
Annualized
for periods less than one year. |
See accompanying notes to the financial
statements.
195
SHAREHOLDER
CORRESPONDENCE AND OTHER INFORMATION
Important
Notice Regarding Delivery of Shareholder Documents
To
avoid sending duplicate copies of materials to households, only one copy of a
Fund’s annual and semiannual report and prospectus will be mailed to
shareholders having the same residential address on the Fund’s records. However,
any shareholder may contact The Northern Trust Company at 866-876-8294 to
request that copies of these reports and prospectuses be sent personally to that
shareholder. The Funds will begin sending individual copies to a shareholder
within 30 days after the Funds receive the request.
If
correspondence containing the proceeds of any distribution or redemption sent to
a shareholder’s address of record is returned, then, unless the Funds’ transfer
agent determines the shareholder’s new address, the transfer agent will reinvest
those proceeds in the Fund from which the distribution or redemption was made at
the then-current NAV.
Notice
Regarding Unclaimed Property
If
no activity occurs in your account within the time period specified by
applicable state law, your property may be transferred to the appropriate state.
Certain states, including the state of Texas, have laws that allow shareholders
to designate a representative to receive abandoned or unclaimed property
(“escheatment”) notification by completing and submitting a designation form
that generally can be found on the official state website. If a shareholder
resides in an applicable state, and elects to designate a representative to
receive escheatment notifications, escheatment notices generally will be
delivered as required by such state laws, including, as applicable, to both the
shareholder and the designated representative. A completed designation form may
be mailed to the Fund (if shares are held directly with the Fund) or to the
shareholder’s financial intermediary (if shares are not held directly with the
Fund). Shareholders should refer to relevant state law for the shareholder’s
specific rights and responsibilities under his or her state’s escheatment
law(s), which can generally be found on the state’s official website.
USA
PATRIOT ACT
To
help the government fight the funding of terrorism and money laundering
activities, federal law requires all financial institutions to obtain, verify,
and record information that identifies each person who opens an account. What
this means to you: When you open an account directly with a Fund, you will be
asked your name, address, date of birth, and other information that will allow
you to be identified. You may also be asked for other identifying documentation.
If the Trust is unable to verify the information shortly after your account is
opened, your account may be closed and your shares redeemed at their NAV at the
time of the redemption.
OTHER
SERVICE PROVIDERS
Custodian
The
Northern Trust Company, located at 50 S. LaSalle St., Chicago, IL 60603, is the
Funds’ custodian. Northern Trust is responsible for safeguarding and controlling
the Funds’ cash and securities, handling the receipt and delivery of securities,
collecting interest and dividends on the Funds’ investments, serving as the
Funds’ foreign custody manager and performing other administrative duties.
Transfer
Agent
Northern
Trust also serves as the Funds’ transfer agent. As transfer agent, Northern
Trust processes purchase and redemption orders, maintains records of Fund
shareholders, and disburses dividends and other distributions.
196
ADDITIONAL
PERFORMANCE INFORMATION
The
Average Annual Total Returns Table in each Fund’s Fund Summary compares the
Fund’s returns with those of at least one broad-based market index. This section
describes the market indices that are used (or will be used) in each Fund
Summary.
The
JP Morgan Emerging Markets Bond Index Global
Diversified (“EMBI GD”) tracks total returns of US dollar-denominated
debt instruments issued by emerging market sovereign and quasi-sovereign
entities.
The
JP Morgan Emerging Local Markets Index Plus
(“ELMI+”) tracks total returns for local-currency denominated money
market instruments in 23 emerging markets and mainly consists of non-deliverable
forwards.
The
JP Morgan Government Bond Index – Emerging
Markets Global Diversified (“GBI-EM GD”) consists of regularly traded,
liquid fixed-rate, local currency government bonds in emerging markets and
excludes countries which have capital controls (such as India and China).
The
JP Morgan Corporate Emerging Markets Bond Index
Broad Diversified (“CEMBI BD”) is a comprehensive benchmark that tracks
total returns of US dollar-denominated debt instruments issued by corporate
entities in emerging markets countries.
The
MSCI Emerging Markets Index (net of
withholding taxes) is a free float-adjusted market capitalization index that is
designed to measure equity market performance of constituent large and mid
capitalization companies located in emerging market countries.
The
MSCI Emerging Markets Investible Markets Index
(net of withholding taxes) is a free float-adjusted market capitalization
index that is designed to measure equity market performance of constituent
large, mid and small-capitalization companies located in emerging market
countries.
The
MSCI Frontier Markets Index (net of
withholding taxes) is a free float-adjusted market capitalization index that is
designed to measure equity market performance of constituent companies located
in frontier markets countries.
The
MSCI Frontier + Select Emerging Markets
Countries Capped Index (net of withholding taxes) is a customized
benchmark produced by MSCI that is designed to measure equity market performance
of constituent companies in each of the MSCI Frontier Markets Index
(50%) and the Emerging Markets Crossover Markets portion of the MSCI
Emerging Markets Index (50%).
The
MSCI Emerging Markets Small Cap Index
(net of withholding taxes) is a free float-adjusted market capitalization
index that is designed to measure equity market performance of constituent
small-capitalization companies located in emerging markets countries.
197
GLOSSARY
Unless
otherwise disclosed elsewhere in this Prospectus, the following terms have the
following meanings:
Corporate issuer (Emerging Markets Corporate Income
Fund and Emerging Markets Corporate Income ESG Fund only): an issuer
located in an Emerging Market Country or an issuer deriving at least 50% of its
revenues or profits from goods produced or sold, investments made, or services
performed in one or more Emerging Market Countries or that has at least 50% of
its assets in one or more Emerging Market Countries. Corporate issuers do not
include Sovereigns or governmental agency issuers, but may include corporate or
other business entities in which a Sovereign or governmental agency or entity
may have, indirectly or directly, an interest, including a majority or greater
ownership interest (e.g., CITIC, Qatar Telecom).
Corporate issuer (Emerging Markets Total Return Fund,
Emerging Markets Short Duration Fund, Emerging Markets Low Duration Fund and
Emerging Markets Debt Fund only): any issuer other than a Sovereign or a
Quasi-Sovereign that is located in an Emerging Market Country, or an issuer
deriving at least 50% of its revenues or profits from goods produced or sold,
investments made, or services performed in one or more Emerging Market Countries
or that has at least 50% of its assets in one or more Emerging Market Countries.
Duration: one measure of the expected life of a
fixed income instrument that is used to determine the sensitivity of a
security’s price to changes in interest rates. Securities with longer durations
tend to be more sensitive to changes in interest rates, usually making them more
volatile than securities with shorter durations. Accordingly, bond funds with
longer average portfolio durations will generally be more sensitive to changes
in interest rates than bond funds with shorter average portfolio durations. By
way of example, the price of a bond fund with a duration of five years would be
expected to fall approximately 5% if interest rates rose by one percentage
point.
EM Supra-National: any Supra-National issuer
that issues debt instruments denominated in a local currency of an Emerging
Market Country or providing exposure to an Emerging Market sovereign credit
risk.
Emerging Market Country (all Funds other than Emerging
Markets Debt Fund and Emerging Markets Corporate Income ESG Fund): any
country included by the International Monetary Fund in its list of Emerging and
Developing Economies, any country which is considered a low-income,
lower-middle-income, or upper-middle-income economy by the World Bank, and all
countries represented in any widely-recognized index of emerging market
securities (e.g., the relevant indices in the family of J.P. Morgan Corporate
Emerging Markets Bond Index, J.P. Morgan Emerging Local Markets Index, J.P.
Morgan Emerging Markets Bond Index, J.P. Morgan Government Bond Index—Emerging
Markets and MSCI Emerging and Frontier Markets Index).
Emerging Market Country (Emerging Markets Debt Fund
and Emerging Markets Corporate Income ESG Fund only): any country
included by the International Monetary Fund in its list of Emerging and
Developing Economies, any country which is considered a low-income,
lower-middle-income, or upper-middle-income economy by the World Bank, and any
country that is included in an Emerging Market Index.
Emerging Market Index: any widely-recognized
index of emerging market securities, including the relevant indices in the
family of J.P. Morgan Corporate Emerging Markets Bond Index, J.P. Morgan
Emerging Local Markets Index, J.P. Morgan Emerging Markets Bond Index, J.P.
Morgan Government Bond Index – Emerging Market and MSCI Emerging and Frontier
Markets Index.
Emerging Market Issuer (Emerging Markets Small-Cap
Equity Fund, Emerging Markets Equity Fund and Emerging Markets Equity ESG Fund
only): an issuer that is located in an Emerging Market Country, or an
issuer deriving at least 50% of its revenues or profits from goods produced or
sold, investments made, or services performed in one or more Emerging Market
Countries or that has at least 50% of its assets in one or more Emerging Market
Countries.
Emerging Market Issuer (Emerging Markets Active Equity
Fund only): an issuer that is either domiciled in an Emerging Market
Country, or an issuer deriving at least 50% of its revenues in or from one or
more Emerging Market Countries.
G-7: a group of seven industrialized nations
including Canada, France, Germany, Italy, Japan, the United Kingdom, and the
United States of America.
198
Hard Currencies: include the U.S. dollar and
the currencies of other nations in the G-7.
Quasi-Sovereign issuers (Emerging Markets Low Duration
Fund and Emerging Markets Debt Fund only): entities (including a local or
regional governmental body) that are 100% guaranteed by a Sovereign or 100%
directly or indirectly owned or controlled by a Sovereign. For the avoidance of
doubt, a province and a city are classified as Quasi-Sovereigns.
Quasi-Sovereign issuers (Emerging Markets Local
Currency Bond Fund only): include governmental entities, agencies and
other issuers the obligations of which are guaranteed by a Sovereign and issuers
otherwise represented in the J.P. Morgan Government Bond Index-Emerging Markets
Global Diversified or a similar index as determined by the Investment Manager.
Governmental entities include a province, a city and local or regional
governmental bodies.
Quasi-Sovereign issuers (Emerging Markets Total Return
Fund and Emerging Markets Short Duration Fund only): include governmental
entities, agencies and other issuers that are more than 50% owned, directly or
indirectly, by a Sovereign, or whose obligations are guaranteed by a Sovereign.
Governmental entities include a province, a city and local or regional
governmental bodies.
Sovereigns: governments of Emerging Market
Countries. Sovereigns may include EM Supra-Nationals.
Supra-National: any multi-national union,
association or other entity or public international body to which one or more
countries belong (e.g., the European Union or World Trade Organization).
199
Ashmore
Funds
Ashmore
Emerging Markets Total Return Fund
Ashmore
Emerging Markets Local Currency Bond Fund
Ashmore
Emerging Markets Corporate Income Fund
Ashmore
Emerging Markets Short Duration Fund
Ashmore
Emerging Markets Active Equity Fund
Ashmore
Emerging Markets Small-Cap Equity Fund
Ashmore
Emerging Markets Frontier Equity Fund
Ashmore
Emerging Markets Equity Fund
Ashmore
Emerging Markets Equity ESG Fund
Ashmore
Emerging Markets Low Duration Fund
Ashmore
Emerging Markets Debt Fund
Ashmore
Emerging Markets Corporate Income ESG Fund
The
Funds have a Statement of Additional Information (“SAI”), and each Fund makes
available annual and semi-annual reports to shareholders (when available), which
contain additional information about the Funds. In the Funds’ annual and
semi-annual reports, you will find a discussion of the market conditions and
investment strategies that significantly affected the Funds’ performance during
their last fiscal year. Investors investing in the Fund through an intermediary
should consult “Appendix A—Intermediary-Specific Sales Waivers”, which includes
information regarding broker-defined sales charges and related discount policies
that apply to purchases through certain intermediaries. Appendix A and the SAI
are incorporated by reference into this prospectus, which means they are part of
this Prospectus for legal purposes. You may get free copies of these materials,
request other information about the Funds, or make shareholder inquiries by
calling 866‑876‑8294. The Funds’ SAI, annual and semiannual report (when
available) and Appendix A to this Prospectus are available at:
www.ashmoregroup.com.
You
may access reports and other information about the Funds on the SEC Internet
site at www.sec.gov. You may get copies of this information, with payment of a
duplication fee, by electronic request to the following e-mail address:
[email protected]. You may need to refer to the Trust’s file number under the
Investment Company Act, which is: 811‑22468
ASHMORE
FUNDS
c/o
Ashmore Investment Advisors Limited
61
Aldwych
London
WC2B 4AE England
File
No. 811-22468
APPENDIX
A—INTERMEDIARY-SPECIFIC SALES WAIVERS
The
information disclosed in this Appendix A is part of, and incorporated in, the
Prospectus for the Funds.
Specific
intermediaries may have different policies and procedures regarding the
availability of front-end sales load waivers or contingent deferred sales charge
(“CDSC”) waivers, which are discussed below. In all instances, it is the
purchaser’s responsibility to notify the Fund or the purchaser’s financial
intermediary at the time of purchase of any relationship or other facts
qualifying the purchaser for sales charge waivers or discounts. For waivers and
discounts not available through a particular intermediary, shareholders will
have to purchase Fund shares directly from the Fund or through another
intermediary to receive such waivers or discounts. Please see the section of the
Prospectus entitled “Classes of Shares” for more information on sales charges
and waivers available for different classes.
Merrill Lynch
Purchases
or sales of front-end (i.e. Class A) or level-load (i.e., Class C) mutual fund
shares through a Merrill platform or account will be eligible only for the
following sales load waivers (front-end, contingent deferred, or back-end
waivers) and discounts, which differ from those disclosed elsewhere in this
Fund’s prospectus. Purchasers will have to buy mutual fund shares directly from
the mutual fund company or through another intermediary to be eligible for
waivers or discounts not listed below.
It
is the client’s responsibility to notify Merrill at the time of purchase or sale
of any relationship or other facts that qualify the transaction for a waiver or
discount. A Merrill representative may ask for reasonable documentation of such
facts and Merrill may condition the granting of a waiver or discount on the
timely receipt of such documentation.
Additional
information on waivers and discounts is available in the Merrill Sales Load
Waiver and Discounts Supplement (the “Merrill SLWD Supplement”) and in the
Mutual Fund Investing at Merrill pamphlet at ml.com/funds. Clients are
encouraged to review these documents and speak with their financial advisor to
determine whether a transaction is eligible for a waiver or discount.
Front-end Load Waivers Available at Merrill Lynch
|
• |
|
Shares
of mutual funds available for purchase by employer-sponsored retirement,
deferred compensation, and employee benefit plans (including health
savings accounts) and trusts used to fund those plans provided the shares
are not held in a commission-based brokerage account and shares are held
for the benefit of the plan. For purposes of this provision,
employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs,
SAR-SEPs or Keogh plans |
|
• |
|
Shares
purchased through a Merrill investment advisory program
|
|
• |
|
Brokerage
class shares exchanged from advisory class shares due to the holdings
moving from a Merrill investment advisory program to a Merrill brokerage
account |
|
• |
|
Shares
purchased through the Merrill Edge Self-Directed platform
|
|
• |
|
Shares
purchased through the systematic reinvestment of capital gains
distributions and dividend reinvestment when purchasing shares of the same
mutual fund in the same account |
|
• |
|
Shares
exchanged from level-load shares to front-end load shares of the same
mutual fund in accordance with the description in the Merrill SLWD
Supplement |
|
• |
|
Shares
purchased by eligible employees of Merrill or its affiliates and their
family members who purchase shares in accounts within the employee’s
Merrill Household (as defined in the Merrill SLWD Supplement)
|
|
• |
|
Shares
purchased by eligible persons associated with the fund as defined in this
prospectus (e.g. the fund’s officers or trustees)
|
|
• |
|
Shares
purchased from the proceeds of a mutual fund redemption in front-end load
shares provided (1) the repurchase is in a mutual fund within the
same fund family; (2) the repurchase occurs within 90 calendar days
from the redemption trade date, and (3) the redemption and purchase
occur in the same account (known as Rights of Reinstatement). Automated
transactions (i.e. systematic purchases and withdrawals) and purchases
made after shares are automatically sold to pay Merrill’s account
maintenance fees are not eligible for Rights of Reinstatement
|
A-1
Contingent Deferred Sales Charge (“CDSC”) Waivers on
Front-end, Back-end, and Level Load Shares Available at Merrill Lynch
|
• |
|
Shares
sold due to the client’s death or disability (as defined by Internal
Revenue Code Section 22(e)(3)) |
|
• |
|
Shares
sold pursuant to a systematic withdrawal program subject to Merrill’s
maximum systematic withdrawal limits as described in the Merrill SLWD
Supplement |
|
• |
|
Shares
sold due to return of excess contributions from an IRA account
|
|
• |
|
Shares
sold as part of a required minimum distribution for IRA and retirement
accounts due to the investor reaching the qualified age based on
applicable IRS regulation |
|
• |
|
Front-end
or level-load shares held in commission-based, non-taxable retirement
brokerage accounts (e.g. traditional, Roth, rollover, SEP IRAs, Simple
IRAs, SAR-SEPs or Keogh plans) that are transferred to fee-based accounts
or platforms and exchanged for a lower cost share class of the same mutual
fund |
Front-end Load Discounts Available at Merrill:
Breakpoints, Rights of Accumulation & Letters of Intent
|
• |
|
Breakpoint
discounts, as described in this prospectus, where the sales load is at or
below the maximum sales load that Merrill permits to be assessed to a
front-end load purchase, as described in the Merrill SLWD Supplement
|
|
• |
|
Rights
of Accumulation (ROA), as described in the Merrill SLWD Supplement, which
entitle clients to breakpoint discounts based on the aggregated holdings
of mutual fund family assets held in accounts in their Merrill Household
|
|
• |
|
Letters
of Intent (LOI), which allow for breakpoint discounts on eligible new
purchases based on anticipated future eligible purchases within a fund
family at Merrill, in accounts within your Merrill Household, as further
described in the Merrill SLWD Supplement |
Morgan Stanley Wealth Management
Broker-Defined Sales Charge Waiver Policies at Morgan
Stanley Wealth Management
Effective
July 1, 2018, shareholders purchasing Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account will be eligible only for the
following front-end sales charge waivers with respect to Class A shares,
which may differ from and may be more limited than those disclosed elsewhere in
this prospectus or SAI.
Front-end Sales Charge Waivers on Class A Shares
available at Morgan Stanley Wealth Management
|
• |
|
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement
plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans
|
|
• |
|
Morgan
Stanley employee and employee-related accounts according to Morgan
Stanley’s account linking rules |
|
• |
|
Shares
purchased through reinvestment of dividends and capital gains
distributions when purchasing shares of the same fund
|
|
• |
|
Shares
purchased through a Morgan Stanley self-directed brokerage account
|
|
• |
|
Class C
(i.e., level-load) shares that are no longer subject to a contingent
deferred sales charge and are converted to Class A shares of the same
fund pursuant to Morgan Stanley Wealth Management’s share class conversion
program |
|
• |
|
Shares
purchased from the proceeds of redemptions within the same fund family,
provided (i) the repurchase occurs within 90 days following the
redemption, (ii) the redemption and purchase occur in the same
account, and (iii) redeemed shares were subject to a front-end or
deferred sales charge. |
A-2