UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-22468
Ashmore Funds
(Exact name of registrant as specified in charter)
c/o Ashmore Investment Advisors Limited
61 Aldwych
London WC2B 4AE
England
(Address of principal executive offices) (Zip code)
Corporation Service Company
84 State Street
Boston, MA 20109
(Name and address of agent for service)
Registrant’s telephone number, including area code: 011-44-20-3077-6000
Date of fiscal year end: October 31
Date of reporting period: October 31, 2014
Item 1. Reports to Stockholders.
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ASHMORE FUNDS
ANNUAL FINANCIAL STATEMENTS
October 31, 2014
ASHMORE FUNDS
TABLE OF CONTENTS
ASHMORE FUNDS
TABLE OF CONTENTS
This material is authorized for use only when preceded or accompanied by the current Ashmore Funds prospectuses. Investors should consider the investment objectives, principal risks, charges and expenses of these Funds carefully before investing. This and other information is contained in the Funds’ prospectus. Please read the prospectus carefully before you invest or send money.
A Fund’s past performance is not necessarily an indication of how the Fund will perform in the future.
An investment in a Fund is not a deposit of a bank and is not guaranteed or insured by the Federal Deposit Insurance Corporation or any other government agency. It is possible to lose money on investments in the Funds.
ASHMORE FUNDS
INVESTMENT MANAGER’S REPORT
For the period November 1, 2013 to October 31, 2014
Overview
The year to October 31, 2014 saw significant volatility across the different investment themes, but for many Emerging Market (“EM”) economies, it also saw improvements to fundamental positions which were already attractive relative to developed markets (strong economic growth, significant external foreign exchange balances and low levels of corporate debt).
In the final months of 2013, EM US dollar fixed income markets outperformed local currency markets, as currency depreciation in countries with larger current account deficits imposed pressure. Local currencies underperformed with significant dispersion between countries.
In the first quarter of 2014, the situation in Crimea brought volatility to Russia, Ukraine and other countries in the region; while fractious politics in Turkey and Thailand contaminated the overall mood in EM during the first weeks of January. Despite the increased geopolitical and political risk, EM assets performed well as the central banks of Turkey, Brazil, India and South Africa raised interest rates in order to control local inflation in the wake of strong foreign currency exchange (“FX”) depreciation experienced in recent years. This change in monetary policy was decisive in reducing FX volatility, which in combination with compelling levels of real interest rates, pushed investors to cover their short EM FX positions leading to a rebound in local currencies and local currency bonds.
The second quarter of 2014 yielded strong performance across nearly all EM asset classes with both equities and fixed income outperforming their developed world peers. Solid equity performance is frequently associated with a sell-off of fixed income assets; however, the effects of a weaker than expected economic recovery in most of the world and accommodative policy makers meant that fixed income assets also performed well. Within EM fixed income markets, high yield bonds outperformed investment grade issues across all asset classes. Over the quarter, the MSCI EM index rose 5.6% with the MSCI Frontier Markets index up 10.5%.
EM performance was supported by ample global liquidity and the stabilisation of political risks: In India the Bharatiya Janata Party (“BJP”) led by Narendra Modi won parliamentary elections by a landslide, delivering a strong mandate for Modi to enact his mantra of “less government, more governance”. In Ukraine, Petro Poroshenko won the May 25 presidential election with a clear majority in the first round. In China, targeted easing measures aided exports and supported a recovery in the wider Chinese economy. Furthermore, the World Bank International Comparison Project (“ICP”) revealed that the Chinese economy would surpass the United States in 2014 on a Purchasing Power Parity (“PPP”) basis.
The final quarter of the fiscal year saw growing divergence in economic conditions between the United States and the rest of the world, particularly the Eurozone. On the one hand, investors braced themselves for a scenario whereby the Federal Open Market Committee (“FOMC”) would start to hike interest rates in Q2/Q3 2015, causing volatility across all asset classes and particularly currencies. In contrast, declining inflation expectations in the Eurozone, the slowdown in economic activity in the core economies, and lower confidence due to concerns over the contagion from a weaker Russian economy in Europe, led the European Central Bank (“ECB”) to ease more than expected at its August meeting, where it cut rates by 10 basis points (“bps”), bringing the refinancing and deposit rates down to 0.05% and -0.20% respectively.
In EM fixed income, local currencies suffered from a strong US dollar and weak commodity prices. The difference in performance over the quarter between the JP Morgan GBI-EM Global Diversified index (which declined 5.7%) and the US dollar hedged version of the index (which only declined by 0.7%) serve to illustrate the extent to which underperformance was driven by FX. In fact, EM local interest rates only rose by a modest 20 bps. Within the US dollar space, corporate debt outperformed both EM sovereign debt and its developed market peers, with the JP Morgan CEMBI Broad Diversified index down 0.1% and the JP Morgan EMBI Global Diversified index down 0.6%. In October, EM fixed income performed well despite general market volatility. Investment Grade (“IG”) outperformed High Yield (“HY”) once more, largely driven by US Treasury yields. The strong decline of the Ruble (“RUB”) dragged the JP Morgan ELMI+ index down 0.5% during the final month of the period.
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Portfolio Overviews
Ashmore Emerging Markets Corporate Debt Fund
The Ashmore Emerging Markets Corporate Debt Fund (“the Fund”) seeks to achieve its objective by investing principally in the debt instruments of EM corporate issuers, which may be denominated in any currency, including the local currency of the issuer. EM corporates operate in an environment that typically consists of higher growth and maturing capital markets. In many cases, EM corporates are characterised by new and growing businesses in industries such as mobile communications, technology and food production. We expect these industries to benefit from the developing economies in which they operate. Increased “south/south” trade (i.e., trade between EM countries as opposed to trade with developed markets) has resulted in a material structural change for EM corporates and has helped them to broaden their customer bases. We continue to focus efforts on companies that are less followed by the market, which potentially allows us to add maximum value based on our views, research and global EM network capabilities.
Over the period, the Fund’s Institutional Class underperformed its benchmark. Despite the Fund’s recent underperformance, EM corporate credit remains in positive territory with the JP Morgan CEMBI BD index showing positive returns of 6.92% for the year and IG outperforming HY. The recent outperformance of IG credits is strongly linked to a marked flattening of the US Treasury yield curve, which has supported long dated IG bonds. In October, the 2 year Treasury yields tightened 8 bps while the 5 year and 10 year yields both tightened 15 bps. A number of idiosyncratic credit developments, mostly in the HY space, also contributed to the underperformance of EM HY credits. The Fund’s top contributors for the period were positions in India, Jamaica and China. Positions in Ukraine, Russia and South Africa were the largest detractors from performance.
At October 31, 2014, total EM corporate debt issuance year to date stood at just shy of US $300bn, putting 2014 on track for another record year. October itself saw new issuance continue to grow with over US $31bn printed during the month. Whilst positive, to put this in perspective it represents a 23% decrease compared to October 2013, mainly due to Europe which has lagged historical highs due to the political situation in Ukraine. Issuance in October came predominantly from Asia (64%) and Latin America (27%), with 62% of the US $31.7bn of new issuance coming from IG credits and 38% from HY.
A key trend during the period was the underperformance of EM corporates vs. US corporates. In 2014, EM outperformed the US in the IG space, but underperformed the US in the HY space. At the fiscal year end, EM HY corporates were trading at 240 bps above US HY credit, a widening of 42 bps compared to September, while EM IG corporates were trading at 90 bps above US IG, a tightening of 2 bps compared to September. There continues to be impressive spread pick-up (of 90%) in EM and we believe the yield differential remains attractive from a historical perspective. We believe that spread pick-up and attractive credit fundamentals in EM will be an important driver of EM credit inflows for the remainder of 2014.
Ashmore Emerging Markets Local Currency Bond Fund
The Ashmore Emerging Markets Local Currency Bond Fund (“the Fund”) seeks to achieve its objective by investing principally in the debt instruments of sovereign and quasi-sovereign EM issuers, denominated in the local currency of the issuer. The Fund’s returns have historically been driven by EM currency appreciation, interest rate positioning and credit worthiness. We believe EM currencies are currently supported by stronger growth, more robust fundamentals and higher interest rates than developed markets, and we expect many developed markets to use a gradual depreciation of their currencies as part of a strategy to de-leverage and reduce their enormous debt burdens. In terms of bonds, we continue to find attractive opportunities across EM countries: EM monetary policymakers are acting in an idiosyncratic fashion to meet their particular domestic needs and local expertise is increasingly necessary to help understand the dynamics that drive local decision-making.
Over the period, the Fund’s Institutional Class underperformed its benchmark. The Fund’s top contributors for the period were gains from positions in Turkey, Malaysia and Poland. Positions in Russia, Uruguay and Czech Republic were the largest detractors from performance.
Recent performance was driven by a decline in commodity prices with the CRB index down 2.4% in October, albeit with large deviations across sectors: energy declined sharply with Brent and WTI oil prices down 9% and 10.8% at US $84.8 and US $80.5, respectively, after Saudi Arabia conceded discounts to Chinese clients in order to preserve market share.
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INVESTMENT MANAGER’S REPORT (CONTINUED)
Turkey is perhaps the country which benefitted the most from the decline in oil prices, as nearly all of its 6.6% current account deficit (down from 9.7% in 2011) is due to energy imports, which tend to be inelastic to price adjustments. The Central Bank kept interest rates unchanged at 8.25%, avoiding a cut in rates while inflation remained above the base rate. Turkey’s Consumer Price Index surprised on the downside in October, declining from 9.54% to 8.86% (core CPI from 9.68% to 9.25%) and the unemployment rate moved up from 9.1% to 9.8%.
In Russia, the currency declined in line with the collapse of oil prices. FX reserves declined to US $439bn, which represents a decline of US $78bn from the same period last year, raising concerns that a more interventionist Central Bank could lead to a faster erosion of FX reserves. Despite this, the Central Bank maintained its orthodox inflation-targeting approach, allowing the RUB to float in order to compensate for deteriorating terms of trade. The monetary authority hiked rates by 150 bps to 9.5% on the last day of October in order to rein in inflation which had climbed from 7.6% to 8.0% due to the pass-through from a weaker RUB. The current account balance reached a better than expected US $11.4bn surplus during Q3 2014.
Ashmore Emerging Markets Currency Fund
The Ashmore Emerging Markets Currency Fund (“the Fund”) seeks to achieve its objective by investing principally in derivatives and other instruments that provide investment exposure to the local currencies of EM countries. The Fund also has the flexibility to invest in debt securities issued by Sovereigns and Quasi-Sovereigns and denominated in the local currency of the issuer.
The current environment continues to reflect what we believe is a better fiscal and growth picture in EM compared to the developed markets. Putting aside periods of market dislocation when positioning tends to be based to a greater extent on technical and emotional factors rather than fundamentals, in our view the real drivers of long-term currency performance, including relative interest rates and growth, clearly favour EM. We believe that the deleveraging process across the developed world is perhaps half complete. At a sovereign level, the heavy debt burdens of developed market countries are clear – no more so than in the US, which continually bumps up against its multi-trillion dollar debt ceiling. In our view, a basket of EM currencies not only provides superior diversification, but also allows us to invest in currencies that we consider to be best positioned to benefit from positive domestic and regional trends.
Over the period, the Fund’s Institutional Class outperformed its benchmark. The best performing EM currencies were the Chinese renminbi, Czech koruna and Hong Kong dollar. The Brazilian real, Mexican nuevo peso and Indian rupee were the largest detractors from performance.
Eastern European currencies underperformed towards the end of the period, principally the RUB which was affected by lower oil prices. The same factor led Latin America and Middle East/Africa to outperform as lower energy prices are positive for a number of countries in those regions including Turkey and South Africa.
Brazil’s Consumer Price Index rose to 6.75% in September, overshooting the high end of the generous 2.5% - 6.5% inflation band. The government posted a shocking primary budget deficit of BRL 25.5bn, driving the nominal deficit close to 4% of GDP and increasing the pressure on the government to change its economic policies. In October, the Brazilian Central Bank surprised the market by hiking rates by 25 bps to 11.25% mentioning concerns over inflation due to the weaker BRL. Meanwhile the Chinese renminbi continued its gradual appreciation against the US dollar.
Ashmore Emerging Markets Debt Fund
The Ashmore Emerging Markets Debt Fund (“the Fund”) seeks to achieve its objective by investing principally in debt instruments of, and derivative instruments related to, sovereign, quasi-sovereign and corporate EM issuers, which may be denominated in any currency, including the local currency of the issuer. The Fund typically invests at least 50% of its net assets in debt instruments of sovereign or quasi-sovereign issuers denominated in hard currencies (i.e. the US dollar or any currency of a nation in the G-7).
Over the period, the Fund’s Institutional Class underperformed its benchmark. Positions in Ukraine, Ivory Coast and Indonesia were amongst the Fund’s best performing positions, whereas positions in Venezuela, Argentina and Jamaica detracted.
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INVESTMENT MANAGER’S REPORT (CONTINUED)
The main index (the JPMorgan EMBI Global Diversified Index) recovered from weakness in 2013 to post a healthy rise of 8.55% during the reporting period. Falling US Treasury yields provided a strong boost to performance and general demand for higher yielding assets supported the gains. Both the IG and HY areas advanced. The sovereign external debt market continued this strong performance in October, led by declining US Treasury yields, with the JP Morgan EMBI GD index rising 1.70% month on month. The IG index was up 2.0% and the HY index was up 1.2%. Credit spreads tightened by 3 bps, with IG 11 bps tighter and HY 2 bps tighter.
Ukraine’s performance was volatile during the period, tracking the separatist conflict in the East of the country. The end of the reporting period saw some progress with attempts to stabilise the conflict: In the second weekend of October, Russian President Vladimir Putin ordered troops to pull back from Ukraine’s border, and Ukrainian President Petro Poroshenko stated his belief that a full ceasefire could soon be achieved. Furthermore, the gas price for the payment of Ukrainian arrears to Gazprom and a new price for supply during the winter were agreed, establishing the free flow of gas to Europe. Finally, parliamentary elections were held, with pro-European parties securing 311 seats in the Rada and the pro-Russian opposition winning 112 seats. 27 seats remained vacant for the representatives of cities in the Donetsk region. However, progress lapsed towards the end of the month when Russian leaders stated that they would “respect” results from elections organised by rebel leaders in the separatist-controlled areas of Ukraine, in defiance of the Ukrainian government.
Venezuela’s underperformance during the period continued through October on the back of declining oil prices with Venezuelan 2026 bonds declining as much as US $10 during the month. Valuations recovered from the middle of October as oil prices stabilised and expectations over further macro adjustments increased. Vice President for the Economy Rodolfo Marco Torres reaffirmed that authorities would draft proposals for adjusting the fiscal accounts via FX devaluation and potentially also through fuel price increases. The prompt repayment of the October 2016 Venezuelan state oil company (PDVSA) bonds, with a total outstanding value of US $1.6bn, improved the technical position and added to confidence concerning the ability and willingness of the country to serve its obligations.
Ashmore Emerging Markets Total Return Fund
The Ashmore Emerging Markets Total Return Fund (“the Fund”) seeks to achieve its objective by investing principally in the debt instruments of sovereign, quasi-sovereign, and corporate issuers, which may be denominated in any currency, including the local currency of the issuer. The Fund tactically allocates assets between external debt, corporate debt and local currency.
Over the period, the Fund’s Institutional Class underperformed its benchmark. Local currency was the main contributor to relative performance with corporate debt and external debt as the main detractors. Geographically, the Fund’s best performing positions were exposures to China, Singapore and Poland whereas exposures to Russia, Ukraine and Argentina were the main detractors.
Chinese trade balances, which recovered swiftly following a deficit in February 2014, deteriorated to US $31bn in September on the back of a rebound in imports. However, this concealed a double digit increase in export volumes. At the end of the reporting period, other activity numbers were mixed with a decline in retail sales but improved industrial production numbers. Q3 2014 GDP declined from 7.5% to 7.3%, better than expected by the market, while China’s Consumer Price Index declined to 1.6%. The FX reserves held by the People’s Bank of China (“PBOC”) declined by US $100bn in September to $3.89 trillion, largely due to the diversification of the portfolio, which holds meaningful exposures to currencies other than the US dollar.
Towards the end of the reporting year, Russian bond spreads reversed the 140 bps of tightening observed in May-June and finished September at 320 bps. The RUB was negatively impacted as economic sanctions and counter-sanctions took their toll on the economy, pushing investors to reduce their exposure and also pushing locals to withdraw money (albeit at a reduced rate after Russian banks repatriated assets for fears of an asset freeze). Economic performance was mixed with industrial production performing surprisingly well (up 2.8% year on year) but consumption and investment showed signs of weakness (fixed asset investment was down approximately 3% year on year). Meanwhile inflation continued to rise, owing in part to import bans on specific goods and food products imposed by the government.
EM corporate debt underperformed sovereign debt for the reporting period, restricted by lower interest rates and a flatter yield curve in the US. Nevertheless, EM corporates could ultimately outperform sovereign debt for the calendar year if US interest rates move higher later in 2014. The spreads on corporate credit proved resilient in
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INVESTMENT MANAGER’S REPORT (CONTINUED)
the face of US Treasury yield volatility in 2013 and we believe that they are likely to continue to do so for some time, supported by stronger growth this year in both EM and developed markets.
Ashmore Emerging Markets Equity Fund
The Ashmore Emerging Markets Equity Fund (“the Fund”) seeks to achieve its objective by investing principally in equity securities and equity-related investments of EM issuers, which may be denominated in any currency, including the local currency of the issuer.
Global and local macro events dominated sentiment in EM for the reporting year: the spectre of rising US interest rates; a slower global recovery; elections in countries including India, Brazil and Indonesia; and the Russia/Ukraine conflict, amongst others. The MSCI EM index (Net) returned 0.6% in US dollar terms for the year ended October 31, 2014. On a regional basis, EM Eastern Europe was by far the weakest, led primarily by declines in Russia and Hungary. EM Asia, especially India and Taiwan, was the bright spot.
Geographically, the Fund’s overweights in China and India added value, as did exposures to Saudi Arabia and the United Arab Emirates (“UAE”) (which entered the MSCI EM index effective May 2014), and the Fund also benefitted from an underweight exposure to Chile. On a stock selection basis, holdings in India and China outperformed, with auto-maker Maruti Suzuki and internet services company Baidu Inc. contributing the most to their respective country portfolios.
Holdings in South Korea and Brazil detracted the most from performance. Sluggish demand and weakened consumer spending after the May ferry disaster weighed on export-driven and local South Korean stock, although we believe that domestic policies and a US recovery will help drive earnings higher. Stock specific events also weighed on certain holdings: Hyundai Motors fell sharply, detracting from portfolio performance, after announcing plans to pay heavily for new corporate headquarters in Seoul’s swanky Gangnam district. The seller of the property and beneficiary of this overpayment was Korea Electric Power Corp., a stock which is also held by the Fund. In Brazil, stocks were buffeted by significant volatility especially in the lead up to the elections, which concluded in October 2014. During this period, we held stocks where in our view a strong fundamental story was selling at a discount to intrinsic value.
We expect improving global growth and a strengthening of trade ties to benefit Mexico and certain EM countries in East Asia. Lower energy and commodity prices should help companies in the transport and manufacturing industries, but may also hurt prospects in Europe, the Middle East and Africa (“EMEA”), South Africa and Brazil. While monitoring the macro environment, the ultimate focus of our investment process is to seek companies trading at a discount to their long-term fundamental value with a focus on quality and growth consistent with our objective of seeking long-term capital appreciation.
Ashmore Emerging Markets Small-Cap Equity Fund
The Ashmore Emerging Markets Small-Cap Equity Fund (“the Fund”) seeks to achieve its objective by investing principally in equity securities and equity-related investments of small-capitalization EM issuers, which may be denominated in any currency, including the local currency of the issuer.
The MSCI EM Small Cap index (Net) returned 3.2% in US dollar terms for the year to 31 October 2014, outperforming the large cap index (MSCI EM index). Small caps in India, and in the new index entrants UAE and Qatar led returns during the period, while those in Eastern Europe and Latin America generally lagged.
The Fund’s exposures to Saudi Arabia and Turkey, together with a lack of exposure to a sharply lower Greek market added the most value during the reporting period. Allocations in Mexico and the UAE also contributed positively to performance. The Fund’s overall underperformance was driven by stock specific factors, largely attributable to certain holdings in China, Brazil and South Korea. In China, performance was impacted by the replacement of the company chairman at Hydoo, a logistics centre operator (and joint venture with Amazon); and by unfounded accusations in a purported research report by a short seller of 21Vianet (a provider of cloud infrastructure services). Regarding the latter, we re-visited our original investment thesis and conducted extensive additional independent reviews with company management, the founders and other industry sources. Our conclusion is that the report was unfounded. We subsequently added to the stock following its sharp decline. A longer than anticipated turnaround at Iochpe-Maxion in Brazil due to a slowdown in domestic auto sales also contributed to the underperformance.
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INVESTMENT MANAGER’S REPORT (CONTINUED)
We retained our largest overweight in China, with a focus on the secular growth in mobile usage and what we believe are well positioned, well capitalized and well managed property stocks selling marginally above 3x earnings. We also favour component manufacturers in Taiwan (which are benefitting from mobile phone and PC sales), Indonesian property stocks, and mortgage providers (which have fallen sharply since the presidential election), together with a host of other interesting companies that tap into the EM growth stories. Our search for value in the context of growth and quality drives our conviction in our current holdings. Our prudent approach to long term investing focuses on seeking mispriced opportunities in the marketplace today.
Ashmore Emerging Markets Frontier Equity Fund
The Ashmore Emerging Markets Frontier Equity Fund (“the Fund”), which launched on November 5, 2013, seeks to achieve its objective by investing principally in equity securities and equity-related investments in frontier market issuers, which may be denominated in any currency, including the local currency of the issuer.
The MSCI Frontier Markets Index (Net) returned 21.2% in US dollar terms over the period from the inception of the Fund through October 2014, significantly outperforming EM small caps as well as the broader EM universe. Entrants that were removed from the index during the period, Qatar and the UAE, led returns together with Bangladesh and Argentina, while Estonia, Bahrain and Nigeria lagged.
The Fund’s underweights relative to the index in Nigeria and Kuwait, together with exposure in Saudi Arabia, added the most overall value during the reporting period. Despite this, the Fund’s performance lagged that of the index, driven by exposure in Ghana, which experienced significant currency volatility, as well as stock selection in Qatar and the UAE. We believe that market moves in Qatar and the UAE were primarily technical, positioned to benefit from the upgrade of those markets to EM status. Stocks that were tipped for inclusion in the EM index, some of which we did not own for valuation reasons, saw significant moves ahead of and following the index announcement. By the end of the period, on top of weak oil prices, the Gulf Cooperation Council (“GCC”) markets had to absorb significant new issuance, all of which required pre-funding, which drew liquidity away from other stocks.
While we reduced our overall exposure to the Middle East during the reporting period, we continue to maintain an allocation to selected stocks as a result of what we believe are attractive valuations in the context of growth and quality. We have increased the Fund’s allocation to Argentina where we believe the equity market may offer attractive risk-adjusted opportunities. The country continues to show signs of normalisation after consecutive managed currency devaluations, the gradual elimination of domestic fuel and other utility subsidies, along with marginally constructive negotiations with sovereign creditors.
Global headlines were decidedly negative for a good part of the reporting period and it is times like these when we are the most excited about the potential for significant mispricing opportunities. Our process, which is centred on fundamental research, allows us to dial-in to the key drivers of earnings in our businesses. Our outlook for the frontier markets universe remains positive, as markets continue to open up and bring new opportunities.
Ashmore Emerging Markets Short Duration Fund
The Ashmore Emerging Markets Short Duration Fund (“the Fund”), which launched on June 24, 2014, seeks to achieve its objective by investing principally in short-term debt instruments of, and derivative instruments related to, sovereign, quasi-sovereign and corporate EM issuers, denominated exclusively in hard currencies (i.e. the US dollar or any currency of a nation in the G-7). The Fund seeks to maintain a weighted average portfolio duration of between 1 and 3 years but has no restrictions on individual security duration.
Since the launch of the Fund in June 2014, its Institutional Class has underperformed its benchmark. The Fund’s top contributors for the period were gains from positions in South Africa, Venezuela and China. Positions in Russia, Mongolia and the UAE were the main detractors from performance.
The reporting period saw high volatility and weak market sentiment. An up-turn in US Treasury volatility as well as a number of other EM related worries (the Brazilian elections, the China slow down, the ongoing Russia/Ukraine conflict situation) all contributed to a widening in EM spreads. IG and HY credits reacted similarly, with both sectors widening. HY credits underperformed in this move, widening 19 bps during October compared to IG credits which finished the month only 4 bps wider.
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IMPORTANT INFORMATION ABOUT THE FUNDS
Ashmore Investment Advisors Limited
This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Funds and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of Ashmore Investment Advisors Limited as of the date indicated and are subject to change at any time based upon economic, market, or other conditions and Ashmore Investment Advisors Limited undertakes no obligation to update the views expressed herein. Any discussions of specific securities or markets should not be considered a recommendation to buy or sell or invest in those securities or markets. The views expressed above may not be relied upon as investment advice or as an indication of the Funds’ trading intent. Information about the Funds’ holdings, asset allocation or country diversification is historical and is not an indication of future portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect certain charges that an investor in the Funds may pay. If these additional fees were reflected, the performance shown would have been lower.
The following disclosure provides important information regarding each Fund’s Average Annual Total Return table and Cumulative Returns chart, which appear on each Fund’s individual page in this report (the “Shareholder Report” or “Report”). Please refer to this information when reviewing the table and chart for a Fund.
On each individual Fund Summary page in this Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that all dividend and capital gain distributions were reinvested. Returns do not reflect the deduction of taxes that a shareholder would pay on (i) Fund distributions or (ii) the redemption of Fund shares. The Cumulative Returns Chart reflects only Institutional Class performance. Performance for Class A and Class C shares is typically lower than Institutional Class performance due to the lower expenses paid by Institutional Class shares. Except for the load-waived performance for the Class A and C shares of each Fund (as applicable), performance shown is net of fees and expenses. The load-waived performance for Class A and Class C shares does not reflect the sales charges shareholders of those classes may pay in connection with a purchase or redemption of Class A and Class C shares. The load-waived performance of those share classes is relevant only to shareholders who purchased Class A or Class C shares on a load-waived basis. The figures in the line graph are calculated at net asset value and assume the investment of $1,000,000 at the beginning of the first full month following the inception of the Institutional Class. Each Fund measures its performance against a broad-based securities market index (“benchmark index”). Each benchmark index does not take into account fees, expenses or taxes.
For periods prior to the inception date of the Class A and Class C shares (if applicable), performance information shown is based on the performance of the Fund’s Institutional Class shares, adjusted to reflect the distribution and/or service fees and other expenses paid by the Class A and Class C shares, respectively.
A Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future.
An investment in a Fund is not a deposit of a bank and is not guaranteed or insured by the Federal Deposit Insurance Corporation or any other government agency. It is possible to lose money on investments in the Funds.
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IMPORTANT INFORMATION ABOUT THE FUNDS (CONTINUED)
The following disclosure provides important information regarding each Fund’s Expense Example, which appears on each Fund’s individual page in this Shareholder Report. Please refer to this information when reviewing the Expense Example for a Fund.
EXPENSE EXAMPLE
Fund Expenses
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, from May 1, 2014 or the inception date (if later), through October 31, 2014.
Actual Expenses
The information in the table under the heading “Actual Performance” provides information based on actual performance and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = $8.60), then multiply the result by the number in the appropriate column for your share class, in the row titled “Expenses Paid” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical Performance” provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the information under the heading “Hypothetical Performance” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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ASHMORE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
As of October 31, 2014
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ashmore
Emerging Markets
Corporate Debt
Fund | | | | Ashmore
Emerging Markets
Local Currency
Bond Fund | | | | Ashmore
Emerging Markets
Currency Fund |
ASSETS: | | | | | | | | | | | | | | | | | | | |
Investments in securities, at value | | | $ | 344,963,211 | | | | | | $ | 65,653,571 | | | | | | $ | 2,148,452 | |
Investments in fully funded total return swaps, at value | | | | — | | | | | | | 3,983,456 | | | | | | | — | |
Deposit held at broker | | | | — | | | | | | | 69,385 | | | | | | | — | |
Cash | | | | 13,537,167 | | | | | | | 30,144,302 | | | | | | | 7,316,152 | |
Cash held at broker for collateral | | | | — | | | | | | | 1,368,835 | | | | | | | 217,218 | |
Foreign currency, at value | | | | 209,763 | | | | | | | — | | | | | | | 9,508 | |
Unrealized appreciation on forward foreign currency exchange contracts | | | | 221,188 | | | | | | | 1,187,592 | | | | | | | 376,377 | |
Unrealized appreciation on interest rate swap contracts | | | | — | | | | | | | 287,968 | | | | | | | — | |
Receivable for securities and currencies sold | | | | 6,070,222 | | | | | | | 91,523 | | | | | | | — | |
Receivable for fund shares sold | | | | 190,716 | | | | | | | 129,620 | | | | | | | — | |
Receivable from Investment Manager | | | | 36,448 | | | | | | | 37,829 | | | | | | | — | |
Interest and dividends receivable | | | | 6,676,794 | | | | | | | 1,171,708 | | | | | | | 35,643 | |
Other assets | | | | 13,719 | | | | | | | 3,902 | | | | | | | 5,075 | |
Total Assets | | | | 371,919,228 | | | | | | | 104,129,691 | | | | | | | 10,108,425 | |
LIABILITIES: | | | | | | | | | | | | | | | | | | | |
Reverse repurchase agreements at cost | | | | — | | | | | | | — | | | | | | | — | |
Unrealized depreciation on forward foreign currency exchange contracts | | | | 67,735 | | | | | | | 1,083,542 | | | | | | | 413,068 | |
Variable margin payables on centrally cleared swap contracts | | | | — | | | | | | | 4,647 | | | | | | | — | |
Unrealized depreciation on interest rate swap contracts | | | | — | | | | | | | 94,713 | | | | | | | — | |
Payable for securities and currencies purchased | | | | 2,573,482 | | | | | | | 300,903 | | | | | | | — | |
Payable for when-issued securities | | | | — | | | | | | | — | | | | | | | — | |
Payable for fund units redeemed | | | | 1,624,496 | | | | | | | — | | | | | | | — | |
Distributions payable | | | | 278,571 | | | | | | | 42,047 | | | | | | | 801 | |
Investment Manager fee payable | | | | 347,136 | | | | | | | 82,037 | | | | | | | 8,392 | |
Trustees’ fees payable | | | | — | | | | | | | 5,051 | | | | | | | 4,508 | |
Other liabilities | | | | 128,270 | | | | | | | 109,904 | | | | | | | 63,084 | |
Total Liabilities | | | | 5,019,690 | | | | | | | 1,722,844 | | | | | | | 489,853 | |
Net Assets | | | $ | 366,899,538 | | | | | | $ | 102,406,847 | | | | | | $ | 9,618,572 | |
NET ASSETS: | | | | | | | | | | | | | | | | | | | |
Paid in capital | | | $ | 380,723,967 | | | | | | $ | 110,327,416 | | | | | | $ | 9,951,503 | |
Undistributed (distributions in excess of) net investment income (loss) | | | | 1,054,040 | | | | | | | (238,153 | ) | | | | | | 52,033 | |
Accumulated net realized gain (loss) | | | | 1,663,670 | | | | | | | (2,113,945 | ) | | | | | | (232,804 | ) |
Net unrealized appreciation (depreciation) | | | | (16,542,139 | ) | | | | | | (5,568,471 | ) | | | | | | (152,160 | ) |
Net Assets | | | $ | 366,899,538 | | | | | | $ | 102,406,847 | | | | | | $ | 9,618,572 | |
| | | | | |
Net Assets: | | | | | | | | | | | | | | | | | | | |
Class A | | | $ | 1,703,562 | | | | | | $ | 897,340 | | | | | | $ | 911 | |
Class C | | | | 421,271 | | | | | | | 146,829 | | | | | | | 887 | |
Institutional Class | | | | 364,774,705 | | | | | | | 101,362,678 | | | | | | | 9,616,774 | |
| | | | | |
Shares Issued and Outstanding (no par value, unlimited shares authorized): | | | | | | | | | | | | | | | | | | | |
Class A | | | | 190,457 | | | | | | | 106,374 | | | | | | | 111 | |
Class C | | | | 47,076 | | | | | | | 17,430 | | | | | | | 111 | |
Institutional Class | | | | 39,238,824 | | | | | | | 11,609,245 | | | | | | | 1,170,877 | |
| | | | | |
Net Asset Value and Redemption Price Per Share (Net Asset Per Share Outstanding): | | | | | | | | | | | | | | | | | | | |
Class A | | | $ | 8.94 | | | | | | $ | 8.44 | | | | | | $ | 8.21 | |
Class C | | | | 8.95 | | | | | | | 8.42 | | | | | | | 8.00 | |
Institutional Class | | | | 9.30 | | | | | | | 8.73 | | | | | | | 8.21 | |
| | | | | |
Cost of Investments in securities | | | $ | 361,627,227 | | | | | | $ | 71,278,593 | | | | | | $ | 2,262,521 | |
Cost of Investments in fully funded total return swaps | | | $ | — | | | | | | $ | 4,196,591 | | | | | | $ | — | |
Cost of foreign currency held | | | $ | 213,911 | | | | | | $ | — | | | | | | $ | 9,459 | |
See accompanying notes to the financial statements.
20
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | Ashmore
Emerging Markets
Debt Fund | | | | | Ashmore
Emerging Markets
Total Return Fund | | | | | Ashmore
Emerging Markets
Equity Fund | | | | | Ashmore
Emerging Markets
Small-Cap Equity Fund | | | | | Ashmore
Emerging Markets
Frontier Equity Fund | | | | | Ashmore
Emerging Markets
Short Duration Fund | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $6,026,650 | | | | | | $ 883,981,947 | | | | | | $10,041,774 | | | | | | $49,140,253 | | | | | | $6,701,859 | | | | | | $19,841,075 | |
| | | — | | | | | | 20,526,445 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | 157,960 | | | | | | 79,578,735 | | | | | | 93,692 | | | | | | 208,843 | | | | | | 423,869 | | | | | | 1,502,840 | |
| | | — | | | | | | 2,871,922 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | 3,805 | | | | | | 843,868 | | | | | | 8,085 | | | | | | 271,668 | | | | | | 116,419 | | | | | | — | |
| | | 9,630 | | | | | | 6,269,887 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,490 | |
| | | — | | | | | | 167,816 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | — | | | | | | 4,158,945 | | | | | | 304,236 | | | | | | 154,200 | | | | | | 47,023 | | | | | | — | |
| | | — | | | | | | 46,554 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | 2,722 | | | | | | 276,577 | | | | | | 36,389 | | | | | | 144,654 | | | | | | 52,679 | | | | | | 36,080 | |
| | | 100,371 | | | | | | 15,350,727 | | | | | | 11,489 | | | | | | 4,213 | | | | | | 1,194 | | | | | | 334,644 | |
| | | | 5,201 | | | | | | 1,410 | | | | | | 6,427 | | | | | | 8,776 | | | | | | 6,164 | | | | | | 55,266 | |
| | | | 6,306,339 | | | | | | 1,014,074,833 | | | | | | 10,502,092 | | | | | | 49,932,607 | | | | | | 7,349,207 | | | | | | 21,777,395 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 617,403 | | | | | | 2,280,668 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | 5,767 | | | | | | 7,403,695 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | — | �� | | | | | 87,113 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | 5,908 | | | | | | 3,981,506 | | | | | | 83,996 | | | | | | 420,284 | | | | | | 565 | | | | | | 220,430 | |
| | | — | | | | | | 9,061,168 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | — | | | | | | 201,449 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | 3,050 | | | | | | 447,989 | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,247 | |
| | | 4,228 | | | | | | 834,704 | | | | | | 9,816 | | | | | | 61,790 | | | | | | 9,204 | | | | | | 11,753 | |
| | | 4,028 | | | | | | 24,209 | | | | | | 482 | | | | | | 1,118 | | | | | | 80 | | | | | | 10,035 | |
| | | | 53,616 | | | | | | 424,856 | | | | | | 72,669 | | | | | | 131,562 | | | | | | 48,907 | | | | | | 47,524 | |
| | | | 694,000 | | | | | | 24,747,357 | | | | | | 166,963 | | | | | | 614,754 | | | | | | 58,756 | | | | | | 301,989 | |
| | | | $5,612,339 | | | | | | $ 989,327,476 | | | | | | $10,335,129 | | | | | | $49,317,853 | | | | | | $7,290,451 | | | | | | $21,475,406 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $6,503,267 | | | | | | $1,050,468,933 | | | | | | $11,483,225 | | | | | | $48,533,881 | | | | | | $6,425,278 | | | | | | $21,836,822 | |
| | | (15,453 | ) | | | | | 232,021 | | | | | | 22,784 | | | | | | 45,071 | | | | | | (38,601 | ) | | | | | 18,576 | |
| | | (856,050 | ) | | | | | (16,876,349 | ) | | | | | (1,147,676 | ) | | | | | 1,619,597 | | | | | | 791,752 | | | | | | (36,187 | ) |
| | | | (19,425 | ) | | | | | (44,497,129 | ) | | | | | (23,204 | ) | | | | | (880,696 | ) | | | | | 112,022 | | | | | | (343,805 | ) |
| | | | $5,612,339 | | | | | | $ 989,327,476 | | | | | | $10,335,129 | | | | | | $49,317,853 | | | | | | $7,290,451 | | | | | | $21,475,406 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ 37,816 | | | | | | $ 8,351,323 | | | | | | $ 29,711 | | | | | | $ 332,084 | �� | | | | | $ 9,218 | | | | | | $ 200,717 | |
| | | 1,191 | | | | | | 1,027,567 | | | | | | 1,063 | | | | | | 76,967 | | | | | | 1,020 | | | | | | — | |
| | | 5,573,332 | | | | | | 979,948,586 | | | | | | 10,304,355 | | | | | | 48,908,802 | | | | | | 7,280,213 | | | | | | 21,274,689 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 4,328 | | | | | | 954,853 | | | | | | 3,214 | | | | | | 35,523 | | | | | | 905 | | | | | | 20,100 | |
| | | 137 | | | | | | 117,587 | | | | | | 102 | | | | | | 7,726 | | | | | | 101 | | | | | | — | |
| | | 642,470 | | | | | | 110,404,262 | | | | | | 1,159,828 | | | | | | 4,203,795 | | | | | | 641,537 | | | | | | 2,167,923 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ 8.74 | | | | | | $ 8.75 | | | | | | $ 9.24 | | | | | | $ 9.35 | | | | | | $ 10.19 | | | | | | $ 9.99 | |
| | | 8.70 | | | | | | 8.74 | | | | | | 10.46 | | | | | | 9.96 | | | | | | 10.15 | | | | | | — | |
| | | | 8.68 | | | | | | 8.88 | | | | | | 8.88 | | | | | | 11.63 | | | | | | 11.35 | | | | | | 9.81 | |
| | | | | | | | | | | |
| | | $6,049,041 | | | | | | $ 924,397,719 | | | | | | $10,064,998 | | | | | | $50,018,574 | | | | | | $6,589,660 | | | | | | $20,191,374 | |
| | | $ — | | | | | | $ 23,318,414 | | | | | | $ — | | | | | | $ — | | | | | | $ — | | | | | | $ — | |
| | | | $ 3,830 | | | | | | $ 839,059 | | | | | | $ 8,096 | | | | | | $ 271,867 | | | | | | $ 116,007 | | | | | | $ — | |
See accompanying notes to the financial statements.
21
ASHMORE FUNDS
STATEMENTS OF OPERATIONS
For the Year Ended October 31, 2014
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ashmore
Emerging Markets
Corporate Debt
Fund | | | | Ashmore
Emerging Markets
Local Currency
Bond Fund | | | | Ashmore
Emerging Markets
Currency Fund |
| | | | | |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | | | | |
Interest, net of foreign tax withholdings* | | | $ | 20,060,884 | | | | | | $ | 4,583,483 | | | | | | $ | 200,996 | |
Dividends, net of foreign tax withholdings* | | | | — | | | | | | | — | | | | | | | — | |
Total Income | | | | 20,060,884 | | | | | | | 4,583,483 | | | | | | | 200,996 | |
| | | | | |
EXPENSES: | | | | | | | | | | | | | | | | | | | |
Investment Manager fees | | | | 3,104,502 | | | | | | | 777,840 | | | | | | | 103,251 | |
Administration fees | | | | 63,678 | | | | | | | 19,721 | | | | | | | 3,216 | |
Custody fees | | | | 50,707 | | | | | | | 91,379 | | | | | | | 27,194 | |
Professional fees | | | | 102,344 | | | | | | | 76,447 | | | | | | | 75,322 | |
Trustees’ fees | | | | 33,759 | | | | | | | 13,292 | | | | | | | 4,960 | |
Offering expenses and registration fees | | | | 52,200 | | | | | | | 47,584 | | | | | | | 43,646 | |
Insurance fees | | | | 6,422 | | | | | | | 7,523 | | | | | | | 3,697 | |
Printing fees | | | | 20,184 | | | | | | | 20,184 | | | | | | | 21,162 | |
Distribution fees - Class A | | | | 13,754 | | | | | | | 3,365 | | | | | | | 2 | |
Distribution fees - Class C | | | | 2,378 | | | | | | | 1,519 | | | | | | | 9 | |
Other | | | | 27,316 | | | | | | | 23,446 | | | | | | | 18,072 | |
Total Expenses | | | | 3,477,244 | | | | | | | 1,082,300 | | | | | | | 300,531 | |
Less expenses reimbursed by the Investment Manager | | | | (296,575 | ) | | | | | | (282,751 | ) | | | | | | (194,785 | ) |
Net Expenses | | | | 3,180,669 | | | | | | | 799,549 | | | | | | | 105,746 | |
Net Investment Income | | | | 16,880,215 | | | | | | | 3,783,934 | | | | | | | 95,250 | |
NET REALIZED AND UNREALIZED GAINS (LOSSES): | | | | | | | | | | | | | | | | | | | |
NET REALIZED GAIN (LOSS) ON: | | | | | | | | | | | | | | | | | | | |
Investments in securities | | | | 2,091,383 | | | | | | | (5,208,900 | ) | | | | | | (436,792 | ) |
Forward foreign currency exchange contracts | | | | 1,013,345 | | | | | | | (627,142 | ) | | | | | | (22,614 | ) |
Interest rate swap contracts | | | | — | | | | | | | (46,948 | ) | | | | | | (131 | ) |
Purchased options | | | | — | | | | | | | (60,630 | ) | | | | | | (36,378 | ) |
Foreign exchange transactions | | | | (391,965 | ) | | | | | | (156,270 | ) | | | | | | (638,371 | ) |
Net Realized Gain (Loss) | | | | 2,712,763 | | | | | | | (6,099,890 | ) | | | | | | (1,134,286 | ) |
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON: | | | | | | | | | | | | | | | | | | | |
Investments in securities | | | | (13,998,633 | ) | | | | | | (2,727,312 | ) | | | | | | 19,674 | |
Forward foreign currency exchange contracts | | | | 179,220 | | | | | | | 67,657 | | | | | | | 153,910 | |
Investments in fully funded total return swaps | | | | — | | | | | | | 592,075 | | | | | | | — | |
Interest rate swap contracts | | | | — | | | | | | | 331,266 | | | | | | | — | |
Purchased option contracts | | | | — | | | | | | | 60,589 | | | | | | | 36,353 | |
Foreign exchange translations | | | | (25,279 | ) | | | | | | (49,759 | ) | | | | | | (20 | ) |
Change in Net Unrealized Appreciation (Depreciation) | | | | (13,844,692 | ) | | | | | | (1,725,484 | ) | | | | | | 209,917 | |
Net Realized and Unrealized Gains (Losses) | | | | (11,131,929 | ) | | | | | | (7,825,374 | ) | | | | | | (924,369 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | $ | 5,748,286 | | | | | | $ | (4,041,440 | ) | | | | | $ | (829,119 | ) |
* Foreign Tax Withholdings | | | $ | 34,442 | | | | | | $ | 78,955 | | | | | | $ | — | |
| 1 | The Fund commenced investment operations on November 5, 2013. |
| 2 | The Fund commenced investment operations on June 24, 2014. |
See accompanying notes to the financial statements.
22
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | Ashmore
Emerging Markets
Debt Fund | | | | | Ashmore
Emerging Markets
Total Return Fund | | | | | Ashmore
Emerging Markets
Equity Fund | | | | | Ashmore
Emerging Markets
Small-Cap Equity Fund | | | | | Ashmore
Emerging Markets
Frontier Equity
Fund1 | | | | | Ashmore
Emerging Markets
Short Duration
Fund2 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ 437,515 | | | | | | $ 48,107,357 | | | | | | $ — | | | | | | $ — | | | | | | $ — | | | | | | $ 377,525 | |
| | | | — | | | | | | — | | | | | | 206,912 | | | | | | 637,954 | | | | | | 158,755 | | | | | | — | |
| | | | 437,515 | | | | | | 48,107,357 | | | | | | 206,912 | | | | | | 637,954 | | | | | | 158,755 | | | | | | 377,525 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 59,411 | | | | | | 7,799,080 | | | | | | 113,826 | | | | | | 565,125 | | | | | | 97,792 | | | | | | 44,420 | |
| | | 1,732 | | | | | | 183,728 | | | | | | 2,411 | | | | �� | | 8,773 | | | | | | 1,199 | | | | | | 1,367 | |
| | | 5,296 | | | | | | 329,017 | | | | | | 72,232 | | | | | | 147,407 | | | | | | 29,702 | | | | | | 1,407 | |
| | | 70,197 | | | | | | 185,570 | | | | | | 65,196 | | | | | | 69,322 | | | | | | 73,000 | | | | | | 48,000 | |
| | | 3,995 | | | | | | 113,057 | | | | | | 1,602 | | | | | | 5,080 | | | | | | 855 | | | | | | 10,603 | |
| | | 46,126 | | | | | | 89,985 | | | | | | 41,719 | | | | | | 63,517 | | | | | | 139,873 | | | | | | 73,028 | |
| | | 3,499 | | | | | | 36,794 | | | | | | 1,658 | | | | | | 3,250 | | | | | | 1,475 | | | | | | 2,099 | |
| | | 21,162 | | | | | | 20,184 | | | | | | 20,184 | | | | | | 20,184 | | | | | | 42,819 | | | | | | 15,000 | |
| | | 22 | | | | | | 20,062 | | | | | | 77 | | | | | | 920 | | | | | | 11 | | | | | | 52 | |
| | | 11 | | | | | | 9,074 | | | | | | 11 | | | | | | 360 | | | | | | 78 | | | | | | — | |
| | | | 15,205 | | | | | | 76,300 | | | | | | 14,440 | | | | | | 19,046 | | | | | | 10,458 | | | | | | 5,000 | |
| | | | 226,656 | | | | | | 8,862,851 | | | | | | 333,356 | | | | | | 902,984 | | | | | | 397,262 | | | | | | 200,976 | |
| | | | (165,889 | ) | | | | | (875,987 | ) | | | | | (217,452 | ) | | | | | (328,428 | ) | | | | | (298,073 | ) | | | | | (155,228 | ) |
| | | | 60,767 | | | | | | 7,986,864 | | | | | | 115,904 | | | | | | 574,556 | | | | | | 99,189 | | | | | | 45,748 | |
| | | | 376,748 | | | | | | 40,120,493 | | | | | | 91,008 | | | | | | 63,398 | | | | | | 59,566 | | | | | | 331,777 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (816,133 | ) | | | | | (23,002,494 | ) | | | | | (93,120 | ) | | | | | 1,800,961 | | | | | | 791,752 | | | | | | (36,187 | ) |
| | | 12,134 | | | | | | (1,448,263 | ) | | | | | (1,467 | ) | | | | | 1,379 | | | | | | (5,548 | ) | | | | | 18,337 | |
| | | — | | | | | | (91,420 | ) | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | — | | | | | | (189,973 | ) | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | | (1,975 | ) | | | | | (2,204,583 | ) | | | | | (6,302 | ) | | | | | (40,313 | ) | | | | | (23,166 | ) | | | | | 1,115 | |
| | | | (805,974 | ) | | | | | (26,936,733 | ) | | | | | (100,889 | ) | | | | | 1,762,027 | | | | | | 763,038 | | | | | | (16,735 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 467,778 | | | | | | (14,579,031 | ) | | | | | (370,307 | ) | | | | | (3,544,559 | ) | | | | | 112,199 | | | | | | (350,299 | ) |
| | | 3,863 | | | | | | (831,849 | ) | | | | | — | | | | | | — | | | | | | — | | | | | | 7,490 | |
| | | — | | | | | | (493,123 | ) | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | — | | | | | | 122,961 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | — | | | | | | 189,845 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | |
| | | | (900 | ) | | | | | (248,861 | ) | | | | | 26 | | | | | | (3,610 | ) | | | | | (177 | ) | | | | | (996 | ) |
| | | | 470,741 | | | | | | (15,840,058 | ) | | | | | (370,281 | ) | | | | | (3,548,169 | ) | | | | | 112,022 | | | | | | (343,805 | ) |
| | | | (335,233 | ) | | | | | (42,776,791 | ) | | | | | (471,170 | ) | | | | | (1,786,142 | ) | | | | | 875,060 | | | | | | (360,540 | ) |
| | | | $ 41,515 | | | | | | $ (2,656,298 | ) | | | | | $(380,162 | ) | | | | | $(1,722,744 | ) | | | | | $ 934,626 | | | | | | $ (28,763 | ) |
| | | | $ — | | | | | | $ 302,841 | | | | | | $ 27,122 | | | | | | $ 64,237 | | | | | | $ 8,737 | | | | | | $ 1,586 | |
See accompanying notes to the financial statements.
23
ASHMORE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the Year Ended October 31, 2014
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ashmore Emerging Markets Corporate Debt Fund | | | Ashmore Emerging Markets Local Currency Bond Fund | | | Ashmore Emerging Markets Currency Fund | |
| | | 2014 | | | 2013 | | | 2014 | | | 2013 | | | 2014 | | | 2013 | |
OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 16,880,215 | | | $ | 4,429,761 | | | $ | 3,783,934 | | | $ | 4,179,567 | | | $ | 95,250 | | | $ | 83,284 | |
Net realized gain (loss) | | | 2,712,763 | | | | (278,667 | ) | | | (6,099,890 | ) | | | (2,260,660 | ) | | | (1,134,286 | ) | | | 657,976 | |
Net change in unrealized appreciation (depreciation) | | | (13,844,692 | ) | | | (2,789,397 | ) | | | (1,725,484 | ) | | | (5,774,539 | ) | | | 209,917 | | | | (756,475 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 5,748,286 | | | | 1,361,697 | | | | (4,041,440 | ) | | | (3,855,632 | ) | | | (829,119 | ) | | | (15,215 | ) |
| | | | | | |
DISTRIBUTIONS TO CLASS A SHAREHOLDERS: | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (321,596 | ) | | | (129,218 | ) | | | — | | | | (34,973 | ) | | | — | | | | — | |
From net realized gain | | | — | | | | (8,260 | ) | | | — | | | | — | | | | (59 | ) | | | (30 | ) |
Tax return of capital | | | — | | | | (926 | ) | | | (62,760 | ) | | | (27,984 | ) | | | (5 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions to Class A Shareholders | | | (321,596 | ) | | | (138,404 | ) | | | (62,760 | ) | | | (62,957 | ) | | | (64 | ) | | | (30 | ) |
| | | | | | |
DISTRIBUTIONS TO CLASS C SHAREHOLDERS: | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (12,291 | ) | | | (3,894 | ) | | | — | | | | (1,828 | ) | | | — | | | | — | |
From net realized gain | | | — | | | | (203 | ) | | | — | | | | — | | | | (60 | ) | | | (30 | ) |
Tax return of capital | | | — | | | | (48 | ) | | | (5,740 | ) | | | (1,463 | ) | | | (2 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions to Class C Shareholders | | | (12,291 | ) | | | (4,145 | ) | | | (5,740 | ) | | | (3,291 | ) | | | (62 | ) | | | (30 | ) |
| | | | | | |
DISTRIBUTIONS TO INSTITUTIONAL CLASS SHAREHOLDERS: | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (16,331,560 | ) | | | (4,260,824 | ) | | | — | | | | (2,046,475 | ) | | | — | | | | (118,078 | ) |
From net realized gain | | | — | | | | (216,214 | ) | | | — | | | | — | | | | (621,904 | ) | | | (1,809,756 | ) |
Tax return of capital | | | — | | | | (59,552 | ) | | | (3,812,854 | ) | | | (1,618,141 | ) | | | (97,215 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions to Institutional Class Shareholders | | | (16,331,560 | ) | | | (4,536,590 | ) | | | (3,812,854 | ) | | | (3,664,616 | ) | | | (719,119 | ) | | | (1,927,834 | ) |
FUND SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets resulting from Class A share transactions | | | (1,191,492 | ) | | | 2,556,553 | | | | (1,082,599 | ) | | | 1,842,673 | | | | 63 | | | | 32 | |
Net increase (decrease) in net assets resulting from Class C share transactions | | | 280,805 | | | | 128,015 | | | | 33,307 | | | | 116,253 | | | | 58 | | | | 30 | |
Net increase (decrease) in net assets resulting from Institutional Class share transactions | | | 192,159,009 | | | | 169,037,926 | | | | 26,615,002 | | | | 17,286,849 | | | | (24,481,009 | ) | | | (30,769,274 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Fund Share Transactions | | | 191,248,322 | | | | 171,722,494 | | | | 25,565,710 | | | | 19,245,775 | | | | (24,480,888 | ) | | | (30,769,212 | ) |
Total Increase (Decrease) in Net Assets | | | 180,331,161 | | | | 168,405,052 | | | | 17,642,916 | | | | 11,659,279 | | | | (26,029,252 | ) | | | (32,712,321 | ) |
NET ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets at the Beginning of the Year | | | 186,568,377 | | | | 18,163,325 | | | | 84,763,931 | | | | 73,104,652 | | | | 35,647,824 | | | | 68,360,145 | |
Net Assets at the End of the Year | | $ | 366,899,538 | | | $ | 186,568,377 | | | $ | 102,406,847 | | | $ | 84,763,931 | | | $ | 9,618,572 | | | $ | 35,647,824 | |
Undistributed (Distributions in Excess of) Net Investment Income (Loss) | | $ | 1,054,040 | | | $ | (191,916 | ) | | $ | (238,153 | ) | | $ | (29,724 | ) | | $ | 52,033 | | | $ | 454,881 | |
| 1 | Formerly the Ashmore Emerging Markets Sovereign Debt Fund. |
| 2 | The Fund commenced investment operations on November 5, 2013. |
| 3 | The Fund commenced investment operations on June 24, 2014. |
See accompanying notes to the financial statements.
24
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Ashmore Emerging Markets Debt Fund1 | | | Ashmore Emerging Markets Total Return Fund | | | Ashmore Emerging Markets Equity Fund | | | Ashmore Emerging Markets Small-Cap Equity Fund | | | Ashmore Emerging Markets Frontier Equity Fund2 | | | Ashmore Emerging Markets Short Duration Fund3 | |
2014 | | | 2013 | | | 2014 | | | 2013 | | | 2014 | | | 2013 | | | 2014 | | | 2013 | | | 2014 | | | 2014 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ 376,748 | | | | $ 1,607,319 | | | | $ 40,120,493 | | | | $ 28,102,512 | | | | $ 91,008 | | | | $ 73,841 | | | | $ 63,398 | | | | $ 49,879 | | | | $ 59,566 | | | | $ 331,777 | |
| | (805,974 | ) | | | 779,457 | | | | (26,936,733 | ) | | | 8,318,150 | | | | (100,889 | ) | | | 373,010 | | | | 1,762,027 | | | | 1,929,398 | | | | 763,038 | | | | (16,735 | ) |
| | 470,741 | | | | (3,717,674 | ) | | | (15,840,058 | ) | | | (43,239,875 | ) | | | (370,281 | ) | | | 308,603 | | | | (3,548,169 | ) | | | 1,914,326 | | | | 112,022 | | | | (343,805 | ) |
|
41,515 |
| | | (1,330,898 | ) | | | (2,656,298 | ) | | | (6,819,213 | ) | | | (380,162 | ) | | | 755,454 | | | | (1,722,744 | ) | | | 3,893,603 | | | | 934,626 | | | | (28,763 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (509 | ) | | | (413 | ) | | | (288,037 | ) | | | (377,693 | ) | | | (255 | ) | | | (100 | ) | | | (353 | ) | | | (844 | ) | | | (46 | ) | | | (1,102 | ) |
| | (244 | ) | | | (43 | ) | | | (108,474 | ) | | | (64,653 | ) | | | — | | | | — | | | | (21,546 | ) | | | (13,704 | ) | | | — | | | | — | |
| | (5 | ) | | | — | | | | (106,644 | ) | | | — | | | | — | | | | (20 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (758 | ) | | | (456 | ) | | | (503,155 | ) | | | (442,346 | ) | | | (255 | ) | | | (120 | ) | | | (21,899 | ) | | | (14,548 | ) | | | (46 | ) | | | (1,102 | ) |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (57 | ) | | | (40 | ) | | | (27,681 | ) | | | (32,382 | ) | | | (8 | ) | | | (6 | ) | | | (59 | ) | | | (40 | ) | | | (5 | ) | | | — | |
| | (175 | ) | | | (3 | ) | | | (12,431 | ) | | | (9,191 | ) | | | — | | | | — | | | | (873 | ) | | | (52 | ) | | | — | | | | — | |
| | (1 | ) | | | — | | | | (10,249 | ) | | | — | | | | — | | | | (1 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (233 | ) | | | (43 | ) | | | (50,361 | ) | | | (41,573 | ) | | | (8 | ) | | | (7 | ) | | | (932 | ) | | | (92 | ) | | | (5 | ) | | | — | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (375,103 | ) | | | (1,614,231 | ) | | | (29,319,267 | ) | | | (26,448,591 | ) | | | (85,433 | ) | | | (67,762 | ) | | | (40,881 | ) | | | (72,503 | ) | | | (69,402 | ) | | | (331,551 | ) |
| | (821,133 | ) | | | (126,668 | ) | | | (8,728,838 | ) | | | (8,496,687 | ) | | | — | | | | — | | | | (1,986,719 | ) | | | (1,116,480 | ) | | | — | | | | — | |
| | (3,339 | ) | | | — | | | | (10,855,322 | ) | | | — | | | | — | | | | (6,759 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1,199,575 | ) | | | (1,740,899 | ) | | | (48,903,427 | ) | | | (34,945,278 | ) | | | (85,433 | ) | | | (74,521 | ) | | | (2,027,600 | ) | | | (1,188,983 | ) | | | (69,402 | ) | | | (331,551 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| | 37,063 | | | | (11,850 | ) | | | (1,485,743 | ) | | | 7,948,290 | | | | 2,329 | | | | 25,333 | | | | 81,303 | | | | (106,768 | ) | | | 9,051 | | | | 200,994 | |
| | | | | | | | | | |
| | 232 | | | | 44 | | | | 115,811 | | | | 510,771 | | | | 8 | | | | 8 | | | | 68,695 | | | | 10,478 | | | | 4,549 | | | | — | |
| | | | | | | | | | |
| | (22,272,165 | ) | | | (2,949,787 | ) | | | 369,085,194 | | | | 189,754,435 | | | | 943,935 | | | | 404,751 | | | | 22,294,208 | | | | 14,455,333 | | | | 6,411,678 | | | | 21,635,828 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
|
(22,234,870 |
) | | | (2,961,593 | ) | | | 367,715,262 | | | | 198,213,496 | | | | 946,272 | | | | 430,092 | | | | 22,444,206 | | | | 14,359,043 | | | | 6,425,278 | | | | 21,836,822 | |
| | (23,393,921 | ) | | | (6,033,889 | ) | | | 315,602,021 | | | | 155,965,086 | | | | 480,414 | | | | 1,110,898 | | | | 18,671,031 | | | | 17,049,023 | | | | 7,290,451 | | | | 21,475,406 | |
| | | | | | | | | | |
| | 29,006,260 | | | | 35,040,149 | | | | 673,725,455 | | | | 517,760,369 | | | | 9,854,715 | | | | 8,743,817 | | | | 30,646,822 | | | | 13,597,799 | | | | — | | | | — | |
| | $ 5,612,339 | | | | $29,006,260 | | | | $989,327,476 | | | | $673,725,455 | | | | $10,335,129 | | | | $9,854,715 | | | | $49,317,853 | | | | $30,646,822 | | | | $7,290,451 | | | | $21,475,406 | |
| | | | | | | | | | |
| | $ (15,453 | ) | | | $ (22,533 | ) | | | $ 232,021 | | | | $ 2,693,049 | | | | $ 22,784 | | | | $ (507 | ) | | | $ 45,071 | | | | $ (2,074 | ) | | | $ (38,601 | ) | | | $ 18,576 | |
See accompanying notes to the financial statements.
25
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Corporate Debt Fund
| | | | | | | | | | | | | | | | |
| | | Class A | |
| | | | |
| | | Year Ended October 31,
2014 | | | Year Ended October 31,
2013 | | | Year Ended October 31,
2012 | | | Period Ended October 31,
20111 | |
| | | | |
Net asset value at beginning of period | | | $9.25 | | | | $9.69 | | | | $9.09 | | | | $10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss)2 | | | 0.55 | | | | 0.51 | | | | 0.67 | | | | 0.32 | |
Net realized and unrealized gain (loss) | | | (0.31) | | | | (0.35) | | | | 0.67 | | | | (0.86) | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.24 | | | | 0.16 | | | | 1.34 | | | | (0.54) | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | (0.55) | | | | (0.52) | | | | (0.69) | | | | (0.37) | |
From net realized gain | | | — | | | | (0.07) | | | | (0.05) | | | | — | |
Tax return of capital | | | — | | | | (0.01) | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (0.55) | | | | (0.60) | | | | (0.74) | | | | (0.37) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $8.94 | | | | $9.25 | | | | $9.69 | | | | $9.09 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return3 | | | 2.53% | | | | 1.63% | | | | 15.54% | | | | (5.44%) | |
| | | | |
Portfolio turnover rate4 | | | 82% | | | | 49% | | | | 50% | | | | 22% | |
| | | | |
Net assets, end of period (in thousands) | | | $1,704 | | | | $2,852 | | | | $485 | | | | $1 | |
| | | | |
Ratios to average net assets:5 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 1.53% | | | | 1.71% | | | | 2.89% | | | | 4.36% | |
Total expenses after reimbursements | | | 1.45% | | | | 1.45% | | | | 1.45% | | | | 1.45% | |
| | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 5.79% | | | | 5.15% | | | | 5.19% | | | | 4.35% | |
Net investment income after reimbursements | | | 5.87% | | | | 5.41% | | | | 6.63% | | | | 7.26% | |
See accompanying notes to the financial statements.
26
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Corporate Debt Fund
| | | | | | | | | | | | | | | | |
| | | Class C | |
| | | | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | Period Ended | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| | | 2014 | | | 2013 | | | 2012 | | | 20111 | |
| | | | |
Net asset value at beginning of period | | | $ 9.25 | | | | $ 9.70 | | | | $ 9.09 | | | | $ 10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss)2 | | | 0.48 | | | | 0.44 | | | | 0.60 | | | | 0.28 | |
Net realized and unrealized gain (loss) | | | (0.30) | | | | (0.36) | | | | 0.68 | | | | (0.86) | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.18 | | | | 0.08 | | | | 1.28 | | | | (0.58) | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | (0.48) | | | | (0.45) | | | | (0.62) | | | | (0.33) | |
From net realized gain | | | — | | | | (0.07) | | | | (0.05) | | | | — | |
Tax return of capital | | | — | | | | (0.01) | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (0.48) | | | | (0.53) | | | | (0.67) | | | | (0.33) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 8.95 | | | | $ 9.25 | | | | $ 9.70 | | | | $ 9.09 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return3 | | | 1.87% | | | | 0.80% | | | | 14.78% | | | | (5.78%) | |
| | | | |
Portfolio turnover rate4 | | | 82% | | | | 49% | | | | 50% | | | | 22% | |
| | | | |
Net assets, end of period (in thousands) | | | $421 | | | | $150 | | | | $27 | | | | $1 | |
| | | | |
Ratios to average net assets:5 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.28% | | | | 2.46% | | | | 3.60% | | | | 5.12% | |
Total expenses after reimbursements | | | 2.20% | | | | 2.20% | | | | 2.20% | | | | 2.20% | |
| | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 5.15% | | | | 4.42% | | | | 4.73% | | | | 3.59% | |
Net investment income after reimbursements | | | 5.23% | | | | 4.68% | | | | 6.13% | | | | 6.51% | |
See accompanying notes to the financial statements.
27
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Corporate Debt Fund
| | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | Period Ended | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| | | 2014 | | | 2013 | | | 2012 | | | 20116 | |
| | | | |
Net asset value at beginning of period | | | $ 9.61 | | | | $ 10.07 | | | | $ 9.43 | | | | $ 10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss)2 | | | 0.59 | | | | 0.55 | | | | 0.73 | | | | 0.63 | |
Net realized and unrealized gain (loss) | | | (0.31) | | | | (0.36) | | | | 0.70 | | | | (0.60) | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.28 | | | | 0.19 | | | | 1.43 | | | | 0.03 | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | (0.59) | | | | (0.57) | | | | (0.74) | | | | (0.60) | |
From net realized gain | | | — | | | | (0.07) | | | | (0.05) | | | | — | |
Tax return of capital | | | — | | | | (0.01) | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (0.59) | | | | (0.65) | | | | (0.79) | | | | (0.60) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 9.30 | | | | $ 9.61 | | | | $ 10.07 | | | | $ 9.43 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return3 | | | 2.91% | | | | 1.91% | | | | 15.97% | | | | 0.27% | |
| | | | |
Portfolio turnover rate4 | | | 82% | | | | 49% | | | | 50% | | | | 22% | |
| | | | |
Net assets, end of period (in thousands) | | | $364,775 | | | | $183,567 | | | | $17,651 | | | | $11,824 | |
| | | | |
Ratios to average net assets:5 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 1.28% | | | | 1.46% | | | | 2.66% | | | | 3.78% | |
Total expenses after reimbursements | | | 1.17% | | | | 1.17% | | | | 1.17% | | | | 1.17% | |
| | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 6.14% | | | | 5.37% | | | | 6.16% | | | | 4.60% | |
Net investment income after reimbursements | | | 6.25% | | | | 5.66% | | | | 7.65% | | | | 7.21% | |
| 1 | Class A and Class C commenced investment operations on May 12, 2011. |
| 2 | Per share amounts are based on average number of shares outstanding during the period. |
| 3 | Assumes investment at net asset value at the beginning of the period, 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 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. |
| 6 | The Institutional Class commenced investment operations on December 8, 2010. |
See accompanying notes to the financial statements.
28
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Local Currency Bond Fund
| | | | | | | | | | | | | | | | |
| | | Class A | |
| | | | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | Period Ended | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| | | 2014 | | | 2013 | | | 2012 | | | 20111 | |
| | | | |
Net asset value at beginning of period | | | $ 9.13 | | | | $ 9.83 | | | | $ 9.43 | | | | $ 10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss)2 | | | 0.37 | | | | 0.44 | | | | 0.43 | | | | 0.13 | |
Net realized and unrealized gain (loss) | | | (0.66) | | | | (0.74) | | | | 0.31 | | | | (0.48) | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.29) | | | | (0.30) | | | | 0.74 | | | | (0.35) | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | — | | | | (0.22) | | | | (0.34) | | | | (0.13) | |
From net realized gain | | | — | | | | (0.01) | | | | — | | | | — | |
Tax return of capital | | | (0.40) | | | | (0.17) | | | | —3 | | | | (0.09) | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (0.40) | | | | (0.40) | | | | (0.34) | | | | (0.22) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 8.44 | | | | $ 9.13 | | | | $ 9.83 | | | | $ 9.43 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return4 | | | (3.25%) | | | | (3.21%) | | | | 8.02% | | | | (3.60%) | |
| | | | |
Portfolio turnover rate5 | | | 112% | | | | 112% | | | | 101% | | | | 31% | |
| | | | |
Net assets, end of period (in thousands) | | | $897 | | | | $2,096 | | | | $413 | | | | $286 | |
| | | | |
Ratios to average net assets:6 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 1.55% | | | | 1.47% | | | | 1.64% | | | | 1.99% | |
Total expenses after reimbursements | | | 1.25% | | | | 1.25% | | | | 1.25% | | | | 1.25% | |
| | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 4.29% | | | | 4.38% | | | | 3.03% | | | | 2.34% | |
Net investment income after reimbursements | | | 4.59% | | | | 4.60% | | | | 3.42% | | | | 3.08% | |
See accompanying notes to the financial statements.
29
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | |
Ashmore Emerging Markets Local Currency Bond Fund | | | | |
| |
| | | Class C | |
| | | | |
| | | Year Ended October 31, 2014 | | | Year Ended October 31, 2013 | | | Year Ended October 31, 2012 | | | Period Ended October 31, 20111 | |
| | | | |
Net asset value at beginning of period | | | $ 9.13 | | | | $ 9.83 | | | | $ 9.43 | | | | $ 10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss)2 | | | 0.29 | | | | 0.38 | | | | 0.22 | | | | 0.13 | |
Net realized and unrealized gain (loss) | | | (0.67) | | | | (0.75) | | | | 0.45 | | | | (0.51) | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.38) | | | | (0.37) | | | | 0.67 | | | | (0.38) | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | — | | | | (0.18) | | | | (0.27) | | | | (0.11) | |
From net realized gain | | | — | | | | (0.01) | | | | — | | | | — | |
Tax return of capital | | | (0.33) | | | | (0.14) | | | | —3 | | | | (0.08) | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (0.33) | | | | (0.33) | | | | (0.27) | | | | (0.19) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $8.42 | | | | $9.13 | | | | $9.83 | | | | $9.43 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return4 | | | (4.18%) | | | | (3.92%) | | | | 7.33% | | | | (4.01%) | |
| | | | |
Portfolio turnover rate5 | | | 112% | | | | 112% | | | | 101% | | | | 31% | |
| | | | |
Net assets, end of period (in thousands) | | | $147 | | | | $124 | | | | $19 | | | | $1 | |
| | | | |
Ratios to average net assets:6 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.31% | | | | 2.22% | | | | 2.47% | | | | 2.87% | |
Total expenses after reimbursements | | | 2.00% | | | | 2.00% | | | | 2.00% | | | | 2.00% | |
| | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 3.41% | | | | 3.77% | | | | 1.87% | | | | 1.87% | |
Net investment income after reimbursements | | | 3.72% | | | | 3.99% | | | | 2.34% | | | | 2.74% | |
See accompanying notes to the financial statements.
30
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | |
Ashmore Emerging Markets Local Currency Bond Fund | | | | |
| |
| | | Institutional Class | |
| | | | |
| | | Year Ended October 31, 2014 | | | Year Ended October 31, 2013 | | | Year Ended October 31, 2012 | | | Period Ended October 31, 20117 | |
| | | | | | | | | | | | | | | | |
Net asset value at beginning of period | | | $ 9.45 | | | | $ 10.18 | | | | $ 9.76 | | | | $ 10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss)2 | | | 0.43 | | | | 0.49 | | | | 0.37 | | | | 0.29 | |
Net realized and unrealized gain (loss) | | | (0.71) | | | | (0.78) | | | | 0.42 | | | | 0.06 | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.28) | | | | (0.29) | | | | 0.79 | | | | 0.35 | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | — | | | | (0.24) | | | | (0.37) | | | | (0.35) | |
From net realized gain | | | — | | | | (0.01) | | | | — | | | | — | |
Tax return of capital | | | (0.44) | | | | (0.19) | | | | —3 | | | | (0.24) | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (0.44) | | | | (0.44) | | | | (0.37) | | | | (0.59) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 8.73 | | | | $ 9.45 | | | | $ 10.18 | | | | $ 9.76 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return4 | | | (3.04%) | | | | (3.02%) | | | | 8.39% | | | | 3.35% | |
| | | | |
Portfolio turnover rate5 | | | 112% | | | | 112% | | | | 101% | | | | 31% | |
| | | | |
Net assets, end of period (in thousands) | | | $101,363 | | | | $82,543 | | | | $72,673 | | | | $62,530 | |
| | | | |
Ratios to average net assets:6 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 1.32% | | | | 1.22% | | | | 1.39% | | | | 1.70% | |
Total expenses after reimbursements | | | 0.97% | | | | 0.97% | | | | 0.97% | | | | 0.97% | |
| | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 4.34% | | | | 4.64% | | | | 3.31% | | | | 2.55% | |
Net investment income after reimbursements | | | 4.69% | | | | 4.89% | | | | 3.73% | | | | 3.28% | |
| 1 | Class A and Class C commenced investment operations on May 12, 2011. |
| 2 | Per share amounts are based on average number of shares outstanding during the period. |
| 3 | Amount is less than $0.005 per share. |
| 4 | Assumes investment at net asset value at the beginning of the period, 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 period excluding the impact of sales charges. Total return is not annualized for periods less than one year. |
| 5 | The portfolio turnover rate is calculated by dividing the lesser of cost of purchases or proceeds from sales of long term portfolio securities, including fully funded total return swaps, by the monthly average of the value of the long term portfolio securities. Portfolio turnover is not annualized for periods less than one year. |
| 6 | Annualized for periods less than one year. |
| 7 | The Institutional Class commenced investment operations on December 8, 2010. |
See accompanying notes to the financial statements.
31
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | |
Ashmore Emerging Markets Currency Fund | | | | |
| |
| | | Class A | |
| | | | |
| | | Year Ended October 31, 2014 | | | Year Ended October 31, 2013 | | | Year Ended October 31, 2012 | | | Period Ended October 31, 20111 | |
| | | | |
Net asset value at beginning of period | | | $ 9.15 | | | | $ 9.51 | | | | $ 9.38 | | | | $ 10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss)2 | | | 0.04 | | | | (0.01) | | | | (0.09) | | | | (0.03) | |
Net realized and unrealized gain (loss) | | | (0.36) | | | | (0.05) | | | | 0.22 | | | | (0.57) | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.32) | | | | (0.06) | | | | 0.13 | | | | (0.60) | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | — | | | | — | | | | — | | | | — | |
From net realized gain | | | (0.57) | | | | (0.30) | | | | — | | | | (0.02) | |
Tax return of capital | | | (0.05) | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (0.62) | | | | (0.30) | | | | — | | | | (0.02) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 8.21 | | | | $ 9.15 | | | | $ 9.51 | | | | $ 9.38 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return3 | | | (3.81%) | | | | (0.65%) | | | | 1.50% | | | | (6.12%) | |
| | | | |
Portfolio turnover rate4 | | | 178% | | | | 198% | | | | 157% | | | | 37% | |
| | | | |
Net assets, end of period (in thousands) | | | $1 | | | | $1 | | | | $1 | | | | $1 | |
| | | | |
Ratios to average net assets:5 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.82% | | | | 1.51% | | | | 1.46% | | | | 2.17% | |
Total expenses after reimbursements | | | 1.15% | | | | 1.15% | | | | 1.15% | | | | 1.15% | |
| | | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | |
Net investment loss before reimbursements | | | (1.16%) | | | | (0.56%) | | | | (1.31%) | | | | (1.60%) | |
Net investment income (loss) after reimbursements | | | 0.51% | | | | (0.20%) | | | | (1.00%) | | | | (0.58%) | |
See accompanying notes to the financial statements.
32
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | |
Ashmore Emerging Markets Currency Fund | | | | |
| |
| | | Class C | |
| | | | |
| | | Year Ended October 31, 2014 | | | Year Ended October 31, 2013 | | | Year Ended October 31, 2012 | | | Period Ended October 31, 20111 | |
| | | | |
Net asset value at beginning of period | | | $ 8.98 | | | | $ 9.41 | | | | $ 9.35 | | | | $ 10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss)2 | | | (0.02) | | | | (0.08) | | | | (0.17) | | | | (0.06) | |
Net realized and unrealized gain (loss) | | | (0.38) | | | | (0.05) | | | | 0.23 | | | | (0.58) | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.40) | | | | (0.13) | | | | 0.06 | | | | (0.64) | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | — | | | | — | | | | — | | | | — | |
From net realized gain | | | (0.57) | | | | (0.30) | | | | — | | | | (0.01) | |
Tax return of capital | | | (0.01) | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (0.58) | | | | (0.30) | | | | — | | | | (0.01) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 8.00 | | | | $ 8.98 | | | | $ 9.41 | | | | $ 9.35 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return3 | | | (4.59%) | | | | (1.43%) | | | | 0.77% | | | | (6.46%) | |
| | | | |
Portfolio turnover rate4 | | | 178% | | | | 198% | | | | 157% | | | | 37% | |
| | | | |
Net assets, end of period (in thousands) | | | $1 | | | | $1 | | | | $1 | | | | $1 | |
| | | | |
Ratios to average net assets:5 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 3.62% | | | | 2.26% | | | | 2.22% | | | | 2.90% | |
Total expenses after reimbursements | | | 1.90% | | | | 1.90% | | | | 1.90% | | | | 1.90% | |
| | | | |
Net investment loss to average net assets: | | | | | | | | | | | | | | | | |
Net investment loss before reimbursements | | | (1.96%) | | | | (1.30%) | | | | (2.07%) | | | | (2.33%) | |
Net investment loss after reimbursements | | | (0.24%) | | | | (0.94%) | | | | (1.75%) | | | | (1.33%) | |
See accompanying notes to the financial statements.
33
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | |
Ashmore Emerging Markets Currency Fund | | | | |
| |
| | | Institutional Class | |
| | | | |
| | | Year Ended October 31, 2014 | | | Year Ended October 31, 2013 | | | Year Ended October 31, 2012 | | | Period Ended October 31, 20116 | |
| | | | |
Net asset value at beginning of period | | | $ 9.16 | | | | $ 9.51 | | | | $ 9.35 | | | | $ 10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss)2 | | | 0.07 | | | | 0.02 | | | | (0.10) | | | | (0.04) | |
Net realized and unrealized gain (loss) | | | (0.38) | | | | (0.05) | | | | 0.26 | | | | 0.06 | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.31) | | | | (0.03) | | | | 0.16 | | | | 0.02 | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | — | | | | (0.02) | | | | — | | | | — | |
From net realized gain | | | (0.57) | | | | (0.30) | | | | — | | | | (0.67) | |
Tax return of capital | | | (0.07) | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (0.64) | | | | (0.32) | | | | — | | | | (0.67) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 8.21 | | | | $ 9.16 | | | | $ 9.51 | | | | $ 9.35 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return3 | | | (3.54%) | | | | (0.33%) | | | | 1.71% | | | | (0.12%) | |
| | | | |
Portfolio turnover rate4 | | | 178% | | | | 198% | | | | 157% | | | | 37% | |
| | | | |
Net assets, end of period (in thousands) | | | $9,617 | | | | $35,646 | | | | $68,358 | | | | $23,643 | |
| | | | |
Ratios to average net assets:5 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.47% | | | | 1.26% | | | | 1.32% | | | | 2.03% | |
Total expenses after reimbursements | | | 0.87% | | | | 0.87% | | | | 0.87% | | | | 0.87% | |
| | | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | |
Net investment loss before reimbursements | | | (0.82%) | | | | (0.22%) | | | | (1.05%) | | | | (1.58%) | |
Net investment income (loss) after reimbursements | | | 0.78% | | | | 0.17% | | | | (0.60%) | | | | (0.42%) | |
| 1 | Class A and Class C commenced investment operations on May 12, 2011. |
| 2 | Per share amounts are based on average number of shares outstanding during the period. |
| 3 | Assumes investment at net asset value at the beginning of the period, 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 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. |
| 6 | The Institutional Class commenced investment operations on December 8, 2010. |
See accompanying notes to the financial statements.
34
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | |
Ashmore Emerging Markets Debt Fund1 | | | | |
| |
| | | Class A | |
| | | | |
| | | Year Ended October 31, 2014 | | | Year Ended October 31, 2013 | | | Year Ended October 31, 2012 | | | Period Ended October 31, 20112 | |
| | | | |
Net asset value at beginning of period | | | $ 10.15 | | | | $ 11.06 | | | | $ 10.04 | | | | $ 10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss)3 | | | 0.50 | | | | 0.46 | | | | 0.44 | | | | 0.19 | |
Net realized and unrealized gain (loss) | | | 0.20 | | | | (0.88) | | | | 1.03 | | | | 0.04 | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.70 | | | | (0.42) | | | | 1.47 | | | | 0.23 | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | (0.53) | | | | (0.46) | | | | (0.45) | | | | (0.19) | |
From net realized gain | | | (1.58) | | | | (0.03) | | | | — | | | | — | |
Tax return of capital | | | —4 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (2.11) | | | | (0.49) | | | | (0.45) | | | | (0.19) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 8.74 | | | | $ 10.15 | | | | $ 11.06 | | | | $ 10.04 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return5 | | | 8.46% | | | | (3.86%) | | | | 15.24% | | | | 2.26% | |
| | | | |
Portfolio turnover rate6 | | | 99% | | | | 81% | | | | 30% | | | | 9% | |
| | | | |
Net assets, end of period (in thousands) | | | $38 | | | | $2 | | | | $14 | | | | $1 | |
| | | | |
Ratios to average net assets:7 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 3.79% | | | | 1.66% | | | | 1.93% | | | | 4.61% | |
Total expenses after reimbursements | | | 1.20% | | | | 1.20% | | | | 1.20% | | | | 1.20% | |
| | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 3.23% | | | | 3.75% | | | | 3.62% | | | | 0.57% | |
Net investment income after reimbursements | | | 5.82% | | | | 4.21% | | | | 4.35% | | | | 3.98% | |
See accompanying notes to the financial statements.
35
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Debt Fund1
| | | | | | | | | | | | | | | | |
| | | Class C | |
| | | | |
| | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | | | Period Ended
October 31,
20112 | |
| | | | |
Net asset value at beginning of period | | | $10.12 | | | | $11.04 | | | | $10.04 | | | | $10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss)3 | | | 0.44 | | | | 0.38 | | | | 0.37 | | | | 0.15 | |
Net realized and unrealized gain (loss) | | | 0.17 | | | | (0.89) | | | | 1.01 | | | | 0.05 | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.61 | | | | (0.51) | | | | 1.38 | | | | 0.20 | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | (0.45) | | | | (0.38) | | | | (0.38) | | | | (0.16) | |
From net realized gain | | | (1.58) | | | | (0.03) | | | | — | | | | — | |
Tax return of capital | | | —4 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (2.03) | | | | (0.41) | | | | (0.38) | | | | (0.16) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 8.70 | | | | $10.12 | | | | $11.04 | | | | $10.04 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return5 | | | 7.30% | | | | (4.64%) | | | | 14.28% | | | | 1.90% | |
| | | | |
Portfolio turnover rate6 | | | 99% | | | | 81% | | | | 30% | | | | 9% | |
| | | | |
Net assets, end of period (in thousands) | | | $1 | | | | $1 | | | | $1 | | | | $1 | |
| | | | |
Ratios to average net assets:7 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 4.90% | | | | 2.41% | | | | 2.73% | | | | 5.35% | |
Total expenses after reimbursements | | | 1.95% | | | | 1.95% | | | | 1.95% | | | | 1.95% | |
| | | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | |
Net investment income (loss) before reimbursements | | | 1.99% | | | | 3.16% | | | | 2.86% | | | | (0.18%) | |
Net investment income after reimbursements | | | 4.94% | | | | 3.62% | | | | 3.64% | | | | 3.22% | |
See accompanying notes to the financial statements.
36
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Debt Fund1
| | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | | |
| | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | | | Period Ended
October 31,
20118 | |
| | | | |
Net asset value at beginning of period | | | $10.08 | | | | $10.99 | | | | $9.99 | | | | $10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss)3 | | | 0.52 | | | | 0.48 | | | | 0.48 | | | | 0.40 | |
Net realized and unrealized gain (loss) | | | 0.18 | | | | (0.87) | | | | 1.01 | | | | — | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.70 | | | | (0.39) | | | | 1.49 | | | | 0.40 | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | (0.52) | | | | (0.49) | | | | (0.49) | | | | (0.41) | |
From net realized gain | | | (1.58) | | | | (0.03) | | | | — | | | | — | |
Tax return of capital | | | —4 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (2.10) | | | | (0.52) | | | | (0.49) | | | | (0.41) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 8.68 | | | | $10.08 | | | | $10.99 | | | | $ 9.99 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return5 | | | 8.41% | | | | (3.64%) | | | | 15.32% | | | | 4.15% | |
| | | | |
Portfolio turnover rate6 | | | 99% | | | | 81% | | | | 30% | | | | 9% | |
| | | | |
Net assets, end of period (in thousands) | | | $5,573 | | | | $29,004 | | | | $35,025 | | | | $30,533 | |
| | | | |
Ratios to average net assets:7 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 3.43% | | | | 1.41% | | | | 1.63% | | | | 3.63% | |
Total expenses after reimbursements | | | 0.92% | | | | 0.92% | | | | 0.92% | | | | 0.92% | |
| | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 3.20% | | | | 4.08% | | | | 3.95% | | | | 1.74% | |
Net investment income after reimbursements | | | 5.71% | | | | 4.57% | | | | 4.66% | | | | 4.45% | |
| 1 | Formerly the Ashmore Emerging Markets Sovereign Debt Fund. |
| 2 | Class A and Class C commenced investment operations on May 12, 2011. |
| 3 | Per share amounts are based on average number of shares outstanding during the period. |
| 4 | Amount is less than $0.005 per share. |
| 5 | Assumes investment at net asset value at the beginning of the period, 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 period excluding the impact of sales charges. Total return is not annualized for periods less than one year. |
| 6 | 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. |
| 7 | Annualized for periods less than one year. |
| 8 | The Institutional Class commenced investment operations on December 8, 2010. |
See accompanying notes to the financial statements.
37
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Total Return Fund
| | | | | | | | | | | | | | | | |
| | | Class A | |
| | | | |
| | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | | | Period Ended
October 31,
20111 | |
| | | | |
Net asset value at beginning of period | | | $ 9.30 | | | | $ 10.05 | | | | $ 9.37 | | | | $ 10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.44 | | | | 0.41 | | | | 0.432 | | | | 0.222 | |
Net realized and unrealized gain (loss) | | | (0.42) | | | | (0.57) | | | | 0.68 | | | | (0.66) | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.02 | | | | (0.16) | | | | 1.11 | | | | (0.44) | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | (0.33) | | | | (0.43) | | | | (0.43) | | | | (0.09) | |
From net realized gain | | | (0.12) | | | | (0.16) | | | | — | | | | — | |
Tax return of capital | | | (0.12) | | | | — | | | | — | | | | (0.10) | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (0.57) | | | | (0.59) | | | | (0.43) | | | | (0.19) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 8.75 | | | | $ 9.30 | | | | $ 10.05 | | | | $ 9.37 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return3 | | | 0.17% | | | | (1.70%) | | | | 12.20% | | | | (4.40%) | |
| | | | |
Portfolio turnover rate4 | | | 80% | | | | 85% | | | | 83% | | | | 39% | |
| | | | |
Net assets, end of period (in thousands) | | | $8,351 | | | | $10,344 | | | | $3,263 | | | | $509 | |
| | | | |
Ratios to average net assets:5 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 1.38% | | | | 1.38% | | | | 1.48% | | | | 1.75% | |
Total expenses after reimbursements | | | 1.30% | | | | 1.30% | | | | 1.30% | | | | 1.30% | |
| | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 4.79% | | | | 4.55% | | | | 3.99% | | | | 4.21% | |
Net investment income after reimbursements | | | 4.87% | | | | 4.63% | | | | 4.17% | | | | 4.66% | |
See accompanying notes to the financial statements.
38
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Total Return Fund
| | | | | | | | | | | | | | | | |
| | | Class C | |
| | | | |
| | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | | | Period Ended
October 31,
20111 | |
| | | | |
Net asset value at beginning of period | | | $ 9.29 | | | | $ 10.05 | | | | $ 9.36 | | | | $ 10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.37 | | | | 0.33 | | | | 0.392 | | | | 0.192 | |
Net realized and unrealized gain (loss) | | | (0.42) | | | | (0.57) | | | | 0.66 | | | | (0.66) | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.05) | | | | (0.24) | | | | 1.05 | | | | (0.47) | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | (0.28) | | | | (0.36) | | | | (0.36) | | | | (0.08) | |
From net realized gain | | | (0.12) | | | | (0.16) | | | | — | | | | — | |
Tax return of capital | | | (0.10) | | | | — | | | | — | | | | (0.09) | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (0.50) | | | | (0.52) | | | | (0.36) | | | | (0.17) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 8.74 | | | | $ 9.29 | | | | $ 10.05 | | | | $ 9.36 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return3 | | | (0.45%) | | | | (2.44%) | | | | 11.42% | | | | (4.79%) | |
| | | | |
Portfolio turnover rate4 | | | 80% | | | | 85% | | | | 83% | | | | 39% | |
| | | | |
Net assets, end of period (in thousands) | | | $1,028 | | | | $969 | | | | $541 | | | | $1 | |
| | | | |
Ratios to average net assets:5 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.13% | | | | 2.13% | | | | 2.21% | | | | 2.82% | |
Total expenses after reimbursements | | | 2.05% | | | | 2.05% | | | | 2.05% | | | | 2.05% | |
| | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 4.04% | | | | 3.83% | | | | 2.62% | | | | 3.32% | |
Net investment income after reimbursements | | | 4.12% | | | | 3.91% | | | | 2.78% | | | | 4.09% | |
See accompanying notes to the financial statements.
39
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Total Return Fund
| | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | | |
| | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | | | Period Ended
October 31,
20116 | |
| | | | |
Net asset value at beginning of period | | | $ 9.43 | | | | $ 10.20 | | | | $ 9.50 | | | | $ 10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.46 | | | | 0.45 | | | | 0.442 | | | | 0.462 | |
Net realized and unrealized gain (loss) | | | (0.41) | | | | (0.60) | | | | 0.72 | | | | (0.34) | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.05 | | | | (0.15) | | | | 1.16 | | | | 0.12 | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | (0.35) | | | | (0.46) | | | | (0.46) | | | | (0.29) | |
From net realized gain | | | (0.12) | | | | (0.16) | | | | — | | | | — | |
Tax return of capital | | | (0.13) | | | | — | | | | — | | | | (0.33) | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (0.60) | | | | (0.62) | | | | (0.46) | | | | (0.62) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 8.88 | | | | $ 9.43 | | | | $ 10.20 | | | | $ 9.50 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return3 | | | 0.51% | | | | (1.48%) | | | | 12.50% | | | | 1.11% | |
| | | | |
Portfolio turnover rate4 | | | 80% | | | | 85% | | | | 83% | | | | 39% | |
| | | | |
Net assets, end of period (in thousands) | | | $979,949 | | | | $662,412 | | | | $513,956 | | | | $101,947 | |
| | | | |
Ratios to average net assets:5 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 1.13% | | | | 1.13% | | | | 1.22% | | | | 1.63% | |
Total expenses after reimbursements | | | 1.02% | | | | 1.02% | | | | 1.02% | | | | 1.02% | |
| | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 5.04% | | | | 4.81% | | | | 4.11% | | | | 4.63% | |
Net investment income after reimbursements | | | 5.15% | | | | 4.92% | | | | 4.31% | | | | 5.24% | |
| 1 | Class A and Class C commenced investment operations on May 12, 2011. |
| 2 | Per share amounts are based on average number of shares outstanding during the period. |
| 3 | Assumes investment at net asset value at the beginning of the period, 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 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, including fully funded total return swaps, 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. |
| 6 | The Institutional Class commenced investment operations on December 8, 2010. |
See accompanying notes to the financial statements.
40
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Equity Fund
| | | | | | | | | | | | |
| | | Class A | |
| | | |
| | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Period Ended
October 31,
20121 | |
| | | | |
Net asset value at beginning of period | | | $ 9.66 | | | | $ 9.01 | | | | $ 10.00 | |
| | | |
Income (loss) from investment operations: | | | | | | | | | | | | |
Net investment income (loss) | | | 0.06 | | | | 0.082 | | | | 0.082 | |
Net realized and unrealized gain (loss) | | | (0.40) | | | | 0.64 | | | | (0.98) | |
| | | | | | | | | | | | |
Total from investment operations | | | (0.34) | | | | 0.72 | | | | (0.90) | |
| | | |
Less distributions: | | | | | | | | | | | | |
| | | |
From net investment income | | | (0.08) | | | | (0.06) | | | | (0.09) | |
Tax return of capital | | | — | | | | (0.01) | | | | — | |
| | | | | | | | | | | | |
| | | |
Total distributions | | | (0.08) | | | | (0.07) | | | | (0.09) | |
| | | | | | | | | | | | |
Net asset value at end of period | | | $ 9.24 | | | | $ 9.66 | | | | $ 9.01 | |
| | | | | | | | | | | | |
| | | |
Total return3 | | | (3.58%) | | | | 8.11% | | | | (8.94%) | |
| | | |
Portfolio turnover rate4 | | | 130% | | | | 92% | | | | 95% | |
| | | |
Net assets, end of period (in thousands) | | | $30 | | | | $28 | | | | $1 | |
| | | |
Ratios to average net assets: | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | |
Total expenses before reimbursements | | | 3.62% | | | | 3.01% | | | | 4.40% | |
Total expenses after reimbursements | | | 1.45% | | | | 1.45% | | | | 1.45% | |
| | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | |
Net investment loss before reimbursements | | | (1.45%) | | | | (0.70%) | | | | (1.60%) | |
Net investment income after reimbursements | | | 0.72% | | | | 0.86% | | | | 1.35% | |
See accompanying notes to the financial statements.
41
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Equity Fund
| | | | | | | | | | | | |
| | | Class C | |
| | | |
| | | Year Ended | | | Year Ended | | | Period Ended | |
| | | October 31, | | | October 31, | | | October 31, | |
| | | 2014 | | | 2013 | | | 20125 | |
| | | | |
Net asset value at beginning of period | | | $ 11.00 | | | | $ 10.32 | | | | $ 10.00 | |
| | | |
Income (loss) from investment operations: | | | | | | | | | | | | |
Net investment income (loss) | | | (0.01) | | | | (0.03)2 | | | | (0.01)2 | |
Net realized and unrealized gain (loss) | | | (0.45) | | | | 0.78 | | | | 0.36 | |
| | | | | | | | | | | | |
Total from investment operations | | | (0.46) | | | | 0.75 | | | | 0.35 | |
| | | |
Less distributions: | | | | | | | | | | | | |
| | | |
From net investment income | | | (0.08) | | | | (0.06) | | | | (0.03) | |
Tax return of capital | | | — | | | | (0.01) | | | | — | |
| | | | | | | | | | | | |
| | | |
Total distributions | | | (0.08) | | | | (0.07) | | | | (0.03) | |
| | | | | | | | | | | | |
Net asset value at end of period | | | $ 10.46 | | | | $ 11.00 | | | | $ 10.32 | |
| | | | | | | | | | | | |
| | | |
Total return3 | | | (4.24%) | | | | 7.58% | | | | 3.26% | |
| | | |
Portfolio turnover rate4 | | | 130% | | | | 92% | | | | 95% | |
| | | |
Net assets, end of period (in thousands) | | | $1 | | | | $1 | | | | $1 | |
| | | |
Ratios to average net assets: | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | |
Total expenses before reimbursements | | | 4.34% | | | | 3.77% | | | | 5.40% | |
Total expenses after reimbursements | | | 2.20% | | | | 2.20% | | | | 2.20% | |
| | | |
Net investment loss to average net assets: | | | | | | | | | | | | |
Net investment loss before reimbursements | | | (2.25%) | | | | (1.81%) | | | | (3.82%) | |
Net investment loss after reimbursements | | | (0.11%) | | | | (0.24%) | | | | (0.62%) | |
See accompanying notes to the financial statements.
��
42
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Equity Fund
| | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | Period Ended | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| | | 2014 | | | 2013 | | | 2012 | | | 20116 | |
| | | | |
Net asset value at beginning of period | | | $ 9.27 | | | | $ 8.62 | | | | $ 8.81 | | | | $ 10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.08 | | | | 0.072 | | | | 0.092 | | | | 0.052 | |
Net realized and unrealized gain (loss) | | | (0.39) | | | | 0.65 | | | | (0.17) | | | | (1.19) | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.31) | | | | 0.72 | | | | (0.08) | | | | (1.14) | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | (0.08) | | | | (0.06) | | | | (0.10) | | | | (0.05) | |
Tax return of capital | | | — | | | | (0.01) | | | | (0.01) | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (0.08) | | | | (0.07) | | | | (0.11) | | | | (0.05) | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 8.88 | | | | $ 9.27 | | | | $ 8.62 | | | | $ 8.81 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return3 | | | (3.40%) | | | | 8.48% | | | | (0.87%) | | | | (11.37%) | |
| | | | |
Portfolio turnover rate4 | | | 130% | | | | 92% | | | | 95% | | | | 75% | |
| | | | |
Net assets, end of period (in thousands) | | | $10,304 | | | | $9,825 | | | | $8,742 | | | | $8,848 | |
| | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 3.37% | | | | 2.76% | | | | 4.09% | | | | 5.34% | |
Total expenses after reimbursements | | | 1.17% | | | | 1.17% | | | | 1.17% | | | | 1.17% | |
| | | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | |
Net investment loss before reimbursements | | | (1.28%) | | | | (0.79%) | | | | (1.84%) | | | | (2.55%) | |
Net investment income after reimbursements | | | 0.92% | | | | 0.80% | | | | 1.08% | | | | 1.62% | |
| 1 | Class A commenced investment operations on February 27, 2012. |
| 2 | Per share amounts are based on average number of shares outstanding during the period. |
| 3 | Assumes investment at net asset value at the beginning of the period, 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 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 | Class C commenced investment operations on August 24, 2012. |
| 6 | The Institutional Class commenced investment operations on June 22, 2011. |
See accompanying notes to the financial statements.
43
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Small-Cap Equity Fund
| | | | | | | | | | | | |
| | | Class A | |
| | | |
| | | Year Ended | | | Year Ended | | | Period Ended | |
| | | October 31, | | | October 31, | | | October 31, | |
| | | 2014 | | | 2013 | | | 20121 | |
| | | | |
Net asset value at beginning of period | | | $ 10.61 | | | | $ 9.77 | | | | $ 10.00 | |
| | | |
Income (loss) from investment operations: | | | | | | | | | | | | |
Net investment income (loss)2 | | | 0.01 | | | | 0.08 | | | | 0.02 | |
Net realized and unrealized gain (loss) | | | (0.42) | | | | 1.31 | | | | (0.20) | |
| | | | | | | | | | | | |
Total from investment operations | | | (0.41) | | | | 1.39 | | | | (0.18) | |
| | | |
Less distributions: | | | | | | | | | | | | |
| | | |
From net investment income | | | (0.01) | | | | (0.03) | | | | (0.05) | |
From net realized gain | | | (0.84) | | | | (0.52) | | | | — | |
| | | | | | | | | | | | |
| | | |
Total distributions | | | (0.85) | | | | (0.55) | | | | (0.05) | |
| | | | | | | | | | | | |
Net asset value at end of period | | | $ 9.35 | | | | $ 10.61 | | | | $ 9.77 | |
| | | | | | | | | | | | |
| | | |
Total return3 | | | (3.93%) | | | | 14.65% | | | | (1.73%) | |
| | | |
Portfolio turnover rate4 | | | 104% | | | | 113% | | | | 94% | |
| | | |
Net assets, end of period (in thousands) | | | $332 | | | | $265 | | | | $238 | |
| | | |
Ratios to average net assets:5 | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.53% | | | | 2.35% | | | | 3.43% | |
Total expenses after reimbursements | | | 1.80% | | | | 1.80% | | | | 1.80% | |
| | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | |
Net investment income (loss) before reimbursements | | | (0.65%) | | | | 0.25% | | | | (1.15%) | |
Net investment income after reimbursements | | | 0.08% | | | | 0.80% | | | | 0.48% | |
See accompanying notes to the financial statements.
44
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Small-Cap Equity Fund
| | | | | | | | | | | | |
| | | Class C | |
| | | |
| | | Year Ended | | | Year Ended | | | Period Ended | |
| | | October 31, | | | October 31, | | | October 31, | |
| | | 2014 | | | 2013 | | | 20126 | |
| | | | |
Net asset value at beginning of period | | | $ 11.33 | | | | $ 10.48 | | | | $ 10.00 | |
| | | |
Income (loss) from investment operations: | | | | | | | | | | | | |
Net investment income (loss)2 | | | (0.05) | | | | (0.06) | | | | (0.01) | |
Net realized and unrealized gain (loss) | | | (0.47) | | | | 1.46 | | | | 0.54 | |
| | | | | | | | | | | | |
Total from investment operations | | | (0.52) | | | | 1.40 | | | | 0.53 | |
| | | |
Less distributions: | | | | | | | | | | | | |
| | | |
From net investment income | | | (0.01) | | | | (0.03) | | | | (0.05) | |
From net realized gain | | | (0.84) | | | | (0.52) | | | | — | |
| | | | | | | | | | | | |
| | | |
Total distributions | | | (0.85) | | | | (0.55) | | | | (0.05) | |
| | | | | | | | | | | | |
Net asset value at end of period | | | $ 9.96 | | | | $ 11.33 | | | | $ 10.48 | |
| | | | | | | | | | | | |
| | | |
Total return3 | | | (4.71%) | | | | 13.93% | | | | 5.17% | |
| | | |
Portfolio turnover rate4 | | | 104% | | | | 113% | | | | 94% | |
| | | |
Net assets, end of period (in thousands) | | | $77 | | | | $12 | | | | $1 | |
| | | |
Ratios to average net assets:5 | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | |
Total expenses before reimbursements | | | 3.60% | | | | 3.10% | | | | 5.12% | |
Total expenses after reimbursements | | | 2.55% | | | | 2.55% | | | | 2.55% | |
| | | |
Net investment loss to average net assets: | | | | | | | | | | | | |
Net investment loss before reimbursements | | | (1.53%) | | | | (1.13%) | | | | (3.35%) | |
Net investment loss after reimbursements | | | (0.48%) | | | | (0.58%) | | | | (0.78%) | |
See accompanying notes to the financial statements.
45
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Small-Cap Equity Fund
| | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | | |
| | | Year Ended | | | Year Ended | | | Year Ended | | | Period Ended | |
| | | October 31, | | | October 31, | | | October 31, | | | October 31, | |
| | | 2014 | | | 2013 | | | 2012 | | | 20117 | |
| | | | |
Net asset value at beginning of period | | | $ 12.96 | | | | $ 11.79 | | | | $ 11.58 | | | | $ 10.00 | |
| | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | |
Net investment income (loss)2 | | | 0.02 | | | | 0.02 | | | | 0.05 | | | | (0.01) | |
Net realized and unrealized gain (loss) | | | (0.50) | | | | 1.70 | | | | 0.25 | | | | 1.59 | |
| | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.48) | | | | 1.72 | | | | 0.30 | | | | 1.58 | |
| | | | |
Less distributions: | | | | | | | | | | | | | | | | |
| | | | |
From net investment income | | | (0.01) | | | | (0.03) | | | | (0.05) | | | | — | |
From net realized gain | | | (0.84) | | | | (0.52) | | | | (0.04) | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
Total distributions | | | (0.85) | | | | (0.55) | | | | (0.09) | | | | — | |
| | | | | | | | | | | | | | | | |
Net asset value at end of period | | | $ 11.63 | | | | $ 12.96 | | | | $ 11.79 | | | | $ 11.58 | |
| | | | | | | | | | | | | | | | |
| | | | |
Total return3 | | | (3.74%) | | | | 15.04% | | | | 2.61% | | | | 15.80% | |
| | | | |
Portfolio turnover rate4 | | | 104% | | | | 113% | | | | 94% | | | | 20% | |
| | | | |
Net assets, end of period (in thousands) | | | $48,909 | | | | $30,370 | | | | $13,359 | | | | $11,576 | |
| | | | |
Ratios to average net assets:5 | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.39% | | | | 2.11% | | | | 3.43% | | | | 15.42% | |
Total expenses after reimbursements | | | 1.52% | | | | 1.52% | | | | 1.52% | | | | 1.52% | |
| | | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | |
Net investment loss before reimbursements | | | (0.70%) | | | | (0.42%) | | | | (1.46%) | | | | (14.76%) | |
Net investment income (loss) after reimbursements | | | 0.17% | | | | 0.17% | | | | 0.45% | | | | (0.86%) | |
| 1 | Class A commenced investment operations on February 1, 2012. |
| 2 | Per share amounts are based on average number of shares outstanding during the period. |
| 3 | Assumes investment at net asset value at the beginning of the period, 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 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. |
| 6 | Class C commenced investment operations on August 24, 2012. |
| 7 | The Institutional Class commenced investment operations on October 4, 2011. |
See accompanying notes to the financial statements.
46
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Frontier Equity Fund
| | | | |
| | | Class A | |
| |
| | | Period Ended | |
| | | October 31, | |
| | | 20141 | |
Net asset value at beginning of period | | | $ 10.00 | |
| |
Income (loss) from investment operations: | | | | |
Net investment income (loss) | | | (0.03) | |
Net realized and unrealized gain (loss) | | | 0.27 | |
| | | | |
Total from investment operations | | | 0.24 | |
| |
Less distributions: | | | | |
| |
From net investment income | | | (0.05) | |
| | | | |
| |
Total distributions | | | (0.05) | |
| | | | |
Net asset value at end of period | | | $ 10.19 | |
| | | | |
| |
Total return2 | | | 2.43% | |
| |
Portfolio turnover rate3 | | | 157% | |
| |
Net assets, end of period (in thousands) | | | $9 | |
| |
Ratios to average net assets:4 | | | | |
Total expenses to average net assets: | | | | |
Total expenses before reimbursements | | | 6.90% | |
Total expenses after reimbursements | | | 1.80% | |
| |
Net investment loss to average net assets: | | | | |
Net investment loss before reimbursements | | | (5.89%) | |
Net investment loss after reimbursements | | | (0.79%) | |
See accompanying notes to the financial statements.
47
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Frontier Equity Fund
| | | | |
| | | Class C | |
| |
| | | Period Ended | |
| | | October 31, | |
| | | 20141 | |
Net asset value at beginning of period | | | $ 10.00 | |
| |
Income (loss) from investment operations: | | | | |
Net investment income (loss) | | | (0.83) | |
Net realized and unrealized gain (loss) | | | 1.03 | |
| | | | |
Total from investment operations | | | 0.20 | |
| |
Less distributions: | | | | |
| |
From net investment income | | | (0.05) | |
| | | | |
| |
Total distributions | | | (0.05) | |
| | | | |
Net asset value at end of period | | | $ 10.15 | |
| | | | |
| |
Total return2 | | | 2.02% | |
| |
Portfolio turnover rate3 | | | 157% | |
| |
Net assets, end of period (in thousands) | | | $1 | |
| |
Ratios to average net assets:4 | | | | |
Total expenses to average net assets: | | | | |
Total expenses before reimbursements | | | 7.71% | |
Total expenses after reimbursements | | | 2.55% | |
| |
Net investment loss to average net assets: | | | | |
Net investment loss before reimbursements | | | (6.42%) | |
Net investment loss after reimbursements | | | (1.26%) | |
See accompanying notes to the financial statements.
48
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Frontier Equity Fund
| | | | |
| | | Institutional Class | |
| |
| | | Period Ended | |
| | | October 31, | |
| | | 20145 | |
Net asset value at beginning of period | | | $ 10.00 | |
| |
Income (loss) from investment operations: | | | | |
Net investment income (loss) | | | 0.14 | |
Net realized and unrealized gain (loss) | | | 1.32 | |
| | | | |
Total from investment operations | | | 1.46 | |
| |
Less distributions: | | | | |
| |
From net investment income | | | (0.11) | |
| | | | |
| |
Total distributions | | | (0.11) | |
| | | | |
Net asset value at end of period | | | $ 11.35 | |
| | | | |
| |
Total return2 | | | 14.69% | |
| |
Portfolio turnover rate3 | | | 157% | |
| |
Net assets, end of period (in thousands) | | | $7,280 | |
| |
Ratios to average net assets:4 | | | | |
Total expenses to average net assets: | | | | |
Total expenses before reimbursements | | | 6.09% | |
Total expenses after reimbursements | | | 1.52% | |
| |
Net investment income (loss) to average net assets: | | | | |
Net investment loss before reimbursements | | | (3.68%) | |
Net investment income after reimbursements | | | 0.89% | |
| 1 | Class A and Class C commenced investment operations on May 7, 2014. |
| 2 | Assumes investment at net asset value at the beginning of the period, 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 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 | The Institutional Class commenced investment operations on November 5, 2013. |
See accompanying notes to the financial statements.
49
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Short Duration Fund
| | | | |
| | | Class A | |
| |
| | | Period Ended | |
| | | October 31, | |
| | | 20141 | |
Net asset value at beginning of period | | | $ 10.00 | |
| |
Income (loss) from investment operations: | | | | |
Net investment income (loss) | | | 0.05 | |
Net realized and unrealized gain (loss) | | | (0.01) | |
| | | | |
Total from investment operations | | | 0.04 | |
| |
Less distributions: | | | | |
| |
From net investment income | | | (0.05) | |
| | | | |
| |
Total distributions | | | (0.05) | |
| | | | |
Net asset value at end of period | | | $ 9.99 | |
| | | | |
| |
Total return2 | | | 0.45% | |
| |
Portfolio turnover rate3 | | | 19% | |
| |
Net assets, end of period (in thousands) | | | $201 | |
| |
Ratios to average net assets:4 | | | | |
Total expenses to average net assets: | | | | |
Total expenses before reimbursements | | | 2.93% | |
Total expenses after reimbursements | | | 0.95% | |
| |
Net investment income to average net assets: | | | | |
Net investment income before reimbursements | | | 3.35% | |
Net investment income after reimbursements | | | 5.33% | |
See accompanying notes to the financial statements.
50
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Short Duration Fund
| | | | |
| | | Institutional Class | |
| |
| | | Period Ended | |
| | | October 31, | |
| | | 20145 | |
Net asset value at beginning of period | | | $ 10.00 | |
| |
Income (loss) from investment operations: | | | | |
Net investment income (loss) | | | 0.16 | |
Net realized and unrealized gain (loss) | | | (0.19) | |
| | | | |
Total from investment operations | | | (0.03) | |
| |
Less distributions: | | | | |
| |
From net investment income | | | (0.16) | |
| | | | |
| |
Total distributions | | | (0.16) | |
| | | | |
Net asset value at end of period | | | $ 9.81 | |
| | | | |
| |
Total return2 | | | (0.25%) | |
| |
Portfolio turnover rate3 | | | 19% | |
| |
Net assets, end of period (in thousands) | | | $21,275 | |
| |
Ratios to average net assets:4 | | | | |
Total expenses to average net assets: | | | | |
Total expenses before reimbursements | | | 2.94% | |
Total expenses after reimbursements | | | 0.67% | |
| |
Net investment income to average net assets: | | | | |
Net investment income before reimbursements | | | 2.58% | |
Net investment income after reimbursements | | | 4.85% | |
| 1 | Class A commenced investment operations on September 23, 2014. |
| 2 | Assumes investment at net asset value at the beginning of the period, 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 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 | The Institutional Class commenced investment operations on June 24, 2014. |
See accompanying notes to the financial statements.
51
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net Assets | |
Debt Securities | | | | | | | | | | | | | | |
| | | | |
Angola (Cost $2,647,335) | | | | | | | | | | | | | | |
Puma International Financing S.A. 6.750%, 02/01/2021 | | | | | 2,590,000 | | | $ | 2,661,225 | | | | 0.73 | |
| | | | | | | | | 2,661,225 | | | | 0.73 | |
Bangladesh (Cost $1,989,213) | | | | | | | | | | | | | | |
Banglalink Digital Communications Ltd.
8.625%, 05/06/2019 | | | | | 1,875,000 | | | | 1,964,063 | | | | 0.53 | |
| | | | | | | | | 1,964,063 | | | | 0.53 | |
Barbados (Cost $4,677,926) | | | | | | | | | | | | | | |
Columbus International, Inc. 7.375%, 03/30/2021 | | | | | 4,415,000 | | | | 4,679,900 | | | | 1.28 | |
| | | | | | | | | 4,679,900 | | | | 1.28 | |
Brazil (Cost $14,815,355) | | | | | | | | | | | | | | |
Banco Bradesco S.A. 4.125%, 05/16/2016 | | | | | 200,000 | | | | 207,400 | | | | 0.06 | |
Banco Bradesco S.A. 4.500%, 01/12/2017 | | | | | 200,000 | | | | 209,750 | | | | 0.06 | |
Banco do Brasil S.A. 5.875%, 01/26/2022 | | | | | 260,000 | | | | 267,397 | | | | 0.07 | |
Banco do Brasil S.A. 3.875%, 10/10/2022 | | | | | 200,000 | | | | 188,800 | | | | 0.05 | |
Banco do Brasil S.A. 5.875%, 01/19/2023 | | | | | 1,275,000 | | | | 1,327,530 | | | | 0.36 | |
Banco Santander Brasil S.A. 8.000%, 03/18/2016 | | BRL | | | 1,680,000 | | | | 649,179 | | | | 0.18 | |
Banco Votorantim S.A. 6.250%, 05/16/2016 | | BRL | | | 2,300,000 | | | | 1,053,738 | | | | 0.29 | |
BRF S.A. 5.875%, 06/06/2022 | | | | | 400,000 | | | | 440,000 | | | | 0.12 | |
BRF S.A. 4.750%, 05/22/2024 | | | | | 535,000 | | | | 535,669 | | | | 0.15 | |
Cia Energetica de Sao Paulo 9.750%, 01/15/2015 | | BRL | | | 250,000 | | | | 151,361 | | | | 0.04 | |
Cosan Luxembourg S.A. 9.500%, 03/14/2018 | | BRL | | | 2,950,000 | | | | 1,079,210 | | | | 0.29 | |
Itau Unibanco Holding S.A. 5.650%, 03/19/2022 | | | | | 380,000 | | | | 389,975 | | | | 0.11 | |
Marfrig Holding Europe B.V. 8.375%, 05/09/2018 | | | | | 2,255,000 | | | | 2,373,387 | | | | 0.65 | |
Marfrig Holding Europe B.V. 6.875%, 06/24/2019 | | | | | 1,100,000 | | | | 1,116,500 | | | | 0.30 | |
Marfrig Overseas Ltd. 9.500%, 05/04/2020 | | | | | 1,455,000 | | | | 1,536,844 | | | | 0.42 | |
Minerva Luxembourg S.A. 12.250%, 02/10/2022(2) | | | | | 200,000 | | | | 231,000 | | | | 0.06 | |
Minerva Luxembourg S.A. 7.750%, 01/31/2023 | | | | | 200,000 | | | | 209,000 | | | | 0.06 | |
Oi S.A. 9.750%, 09/15/2016 | | BRL | | | 1,770,000 | | | | 648,955 | | | | 0.18 | |
Petrobras Global Finance B.V., FRN 2.371%, 01/15/2019 | | | | | 775,000 | | | | 773,334 | | | | 0.21 | |
Petrobras Global Finance B.V. 4.375%, 05/20/2023 | | | | | 425,000 | | | | 405,151 | | | | 0.11 | |
Petrobras Global Finance B.V. 7.250%, 03/17/2044 | | | | | 120,000 | | | | 131,515 | | | | 0.03 | |
Petrobras International Finance Co. S.A. 6.750%, 01/27/2041 | | | | | 325,000 | | | | 334,666 | | | | 0.09 | |
Samarco Mineracao S.A. 4.125%, 11/01/2022 | | | | | 400,000 | | | | 380,500 | | | | 0.10 | |
| | | | | | | | | 14,640,861 | | | | 3.99 | |
Chile (Cost $7,994,912) | | | | | | | | | | | | | | |
Automotores Gildemeister S.A. 8.250%, 05/24/2021 | | | | | 1,228,000 | | | | 835,040 | | | | 0.23 | |
Automotores Gildemeister S.A. 6.750%, 01/15/2023 | | | | | 580,000 | | | | 388,600 | | | | 0.11 | |
Banco de Credito e Inversiones 4.000%, 02/11/2023 | | | | | 200,000 | | | | 197,385 | | | | 0.05 | |
Banco del Estado de Chile 4.125%, 10/07/2020 | | | | | 400,000 | | | | 398,048 | | | | 0.11 | |
Cencosud S.A. 5.500%, 01/20/2021 | | | | | 300,000 | | | | 320,256 | | | | 0.09 | |
Colbun S.A. 4.500%, 07/10/2024 | | | | | 400,000 | | | | 403,056 | | | | 0.11 | |
E.CL S.A. 5.625%, 01/15/2021 | | | | | 300,000 | | | | 324,689 | | | | 0.09 | |
E.CL S.A. 4.500%, 01/29/2025 | | | | | 200,000 | | | | 201,029 | | | | 0.05 | |
Inversiones Alsacia S.A. 8.000%, 08/18/2018(3) | | | | | 860,765 | | | | 628,359 | | | | 0.17 | |
Inversiones CMPC S.A. 4.375%, 05/15/2023 | | | | | 200,000 | | | | 196,136 | | | | 0.05 | |
VTR Finance B.V. 6.875%, 01/15/2024 | | | | | 3,780,000 | | | | 3,969,000 | | | | 1.08 | |
| | | | | | | | | 7,861,598 | | | | 2.14 | |
China (Cost $47,083,735) | | | | | | | | | | | | | | |
21Vianet Group, Inc. 6.875%, 06/26/2017 | | CNY | | | 3,500,000 | | | | 538,695 | | | | 0.15 | |
See accompanying notes to the financial statements.
52
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net Assets | |
China - (continued) | | | | | | | | | | | | | | |
Agile Property Holdings Ltd. 9.875%, 03/20/2017 | | | | | 800,000 | | | $ | 780,000 | | | | 0.21 | |
Agile Property Holdings Ltd. 8.875%, 04/28/2017 | | | | | 632,000 | | | | 603,560 | | | | 0.16 | |
Baidu, Inc. 3.500%, 11/28/2022 | | | | | 400,000 | | | | 392,272 | | | | 0.11 | |
Bestgain Real Estate Ltd. 2.625%, 03/13/2018 | | | | | 600,000 | | | | 581,754 | | | | 0.16 | |
Central China Real Estate Ltd. 6.500%, 06/04/2018 | | | | | 890,000 | | | | 864,107 | | | | 0.24 | |
Central China Real Estate Ltd. 8.000%, 01/28/2020 | | | | | 730,000 | | | | 715,788 | | | | 0.20 | |
China CITIC Bank International Ltd. 6.875%, 06/24/2020 | | | | | 755,000 | | | | 837,084 | | | | 0.23 | |
China Forestry Holdings Co. Ltd. 10.250%, 11/17/2015(3) | | | | | 60,000 | | | | 15,360 | | | | — | |
China Hongqiao Group Ltd. 7.625%, 06/26/2017 | | | | | 1,285,000 | | | | 1,327,992 | | | | 0.36 | |
China Overseas Finance Cayman III Ltd. 3.375%, 10/29/2018 | | | | | 325,000 | | | | 326,493 | | | | 0.09 | |
China Railway Resources Huitung Ltd. 3.850%, 02/05/2023 | | | | | 400,000 | | | | 396,490 | | | | 0.11 | |
China SCE Property Holdings Ltd. 10.500%, 01/14/2016 | | CNY | | | 6,700,000 | | | | 1,098,099 | | | | 0.30 | |
China SCE Property Holdings Ltd. 11.500%, 11/14/2017 | | | | | 2,445,000 | | | | 2,524,462 | | | | 0.69 | |
China Shanshui Cement Group Ltd. 10.500%, 04/27/2017 | | | | | 1,330,000 | | | | 1,431,412 | | | | 0.39 | |
CIFI Holdings Group Co. Ltd. 12.250%, 04/15/2018 | | | | | 2,265,000 | | | | 2,548,125 | | | | 0.69 | |
CIFI Holdings Group Co. Ltd. 8.875%, 01/27/2019 | | | | | 590,000 | | | | 604,750 | | | | 0.17 | |
COSL Finance BVI Ltd. 3.250%, 09/06/2022 | | | | | 200,000 | | | | 190,489 | | | | 0.05 | |
Country Garden Holdings Co. Ltd. 7.250%, 04/04/2021 | | | | | 755,000 | | | | 743,675 | | | | 0.20 | |
Country Garden Holdings Co. Ltd. 7.500%, 01/10/2023 | | | | | 2,050,000 | | | | 2,003,875 | | | | 0.55 | |
Emerald Plantation Holdings Ltd. 6.000%, 01/30/2020(2)(4) | | | | | 66,885 | | | | 53,174 | | | | 0.01 | |
ENN Energy Holdings Ltd. 6.000%, 05/13/2021 | | | | | 410,000 | | | | 458,160 | | | | 0.13 | |
Evergrande Real Estate Group Ltd. 13.000%, 01/27/2015 | | | | | 480,000 | | | | 483,600 | | | | 0.13 | |
Far East Energy Bermuda Ltd. 13.000%, 01/15/2016(4)(5)(6) | | | | | 245,338 | | | | 245,338 | | | | 0.07 | |
Favor Sea Ltd. 11.750%, 02/04/2019 | | | | | 1,200,000 | | | | 1,280,844 | | | | 0.35 | |
Franshion Brilliant Ltd. 5.750%, 03/19/2019 | | | | | 830,000 | | | | 856,975 | | | | 0.23 | |
Hyva Global B.V. 8.625%, 03/24/2016 | | | | | 1,370,000 | | | | 1,383,700 | | | | 0.38 | |
Kaisa Group Holdings Ltd. 8.875%, 03/19/2018 | | | | | 1,360,000 | | | | 1,373,600 | | | | 0.37 | |
Kaisa Group Holdings Ltd. 9.000%, 06/06/2019 | | | | | 590,000 | | | | 588,419 | | | | 0.16 | |
Kaisa Group Holdings Ltd. 10.250%, 01/08/2020 | | | | | 1,175,000 | | | | 1,221,412 | | | | 0.33 | |
KWG Property Holding Ltd. 13.250%, 03/22/2017 | | | | | 665,000 | | | | 733,162 | | | | 0.20 | |
KWG Property Holding Ltd. 8.975%, 01/14/2019 | | | | | 1,430,000 | | | | 1,426,425 | | | | 0.39 | |
MIE Holdings Corp. 6.875%, 02/06/2018 | | | | | 400,000 | | | | 394,000 | | | | 0.11 | |
MIE Holdings Corp. 7.500%, 04/25/2019 | | | | | 1,005,000 | | | | 984,900 | | | | 0.27 | |
Shimao Property Holdings Ltd. 6.625%, 01/14/2020 | | | | | 1,260,000 | | | | 1,247,400 | | | | 0.34 | |
Sino-Forest Corp. 5.000%, 08/01/2013(5)(6)(7) | | | | | 21,000 | | | | — | | | | — | |
Sino-Forest Corp. 10.250%, 07/28/2014(5)(6)(7) | | | | | 82,000 | | | | — | | | | — | |
Sino-Forest Corp. 4.250%, 12/15/2016(5)(6)(7) | | | | | 113,000 | | | | — | | | | — | |
Sino-Forest Corp. 6.250%, 10/21/2017(5)(6)(7) | | | | | 252,000 | | | | — | | | | — | |
Sunac China Holdings Ltd. 12.500%, 10/16/2017 | | | | | 1,300,000 | | | | 1,443,000 | | | | 0.39 | |
Sunac China Holdings Ltd. 9.375%, 04/05/2018 | | | | | 2,380,000 | | | | 2,481,150 | | | | 0.68 | |
Tencent Holdings Ltd. 3.375%, 05/02/2019 | | | | | 520,000 | | | | 528,727 | | | | 0.14 | |
Texhong Textile Group Ltd. 6.500%, 01/18/2019 | | | | | 910,000 | | | | 898,625 | | | | 0.25 | |
Times Property Holdings Ltd. 12.625%, 03/21/2019 | | | | | 1,285,000 | | | | 1,359,524 | | | | 0.37 | |
Trillion Chance Ltd. 8.500%, 01/10/2019 | | | | | 2,030,000 | | | | 1,998,273 | | | | 0.54 | |
Wanda Properties Overseas Ltd. 4.875%, 11/21/2018 | | | | | 1,000,000 | | | | 1,015,234 | | | | 0.28 | |
Yanlord Land Group Ltd. 10.625%, 03/29/2018 | | | | | 1,310,000 | | | | 1,398,425 | | | | 0.38 | |
Yingde Gases Investment Ltd. 8.125%, 04/22/2018 | | | | | 1,200,000 | | | | 1,248,000 | | | | 0.34 | |
Yuzhou Properties Co. Ltd. 11.750%, 10/25/2017 | | | | | 515,000 | | | | 561,994 | | | | 0.15 | |
Yuzhou Properties Co. Ltd. 8.750%, 10/04/2018 | | | | | 770,000 | | | | 771,925 | | | | 0.21 | |
Yuzhou Properties Co. Ltd. 8.625%, 01/24/2019 | | | | | 2,000,000 | | | | 1,990,000 | | | | 0.54 | |
| | | | | | | | | 46,950,468 | | | | 12.80 | |
See accompanying notes to the financial statements.
53
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net Assets | |
Colombia (Cost $16,464,266) | | | | | | | | | | | | | | |
Banco Davivienda S.A. 2.950%, 01/29/2018 | | | | | 800,000 | | | $ | 800,000 | | | | 0.22 | |
Banco de Bogota S.A. 5.000%, 01/15/2017 | | | | | 435,000 | | | | 463,275 | | | | 0.13 | |
Banco de Bogota S.A. 5.375%, 02/19/2023 | | | | | 285,000 | | | | 297,112 | | | | 0.08 | |
Bancolombia S.A. 5.950%, 06/03/2021 | | | | | 625,000 | | | | 692,969 | | | | 0.19 | |
Colombia Telecomunicaciones S.A. ESP 5.375%, 09/27/2022 | | | | | 1,990,000 | | | | 2,019,850 | | | | 0.55 | |
Ecopetrol S.A. 7.625%, 07/23/2019 | | | | | 330,000 | | | | 393,525 | | | | 0.11 | |
Emgesa S.A. ESP 8.750%, 01/25/2021 | | COP | | | 1,220,000,000 | | | | 636,001 | | | | 0.17 | |
Empresa de Telecomunicaciones de Bogota 7.000%, 01/17/2023 | | COP | | | 1,000,000,000 | | | | 458,080 | | | | 0.13 | |
Empresas Publicas de Medellin ESP 8.375%, 02/01/2021 | | COP | | | 1,258,000,000 | | | | 651,164 | | | | 0.18 | |
Millicom International Cellular S.A. 4.750%, 05/22/2020 | | | | | 600,000 | | | | 592,500 | | | | 0.16 | |
Millicom International Cellular S.A. 6.625%, 10/15/2021 | | | | | 1,725,000 | | | | 1,845,750 | | | | 0.50 | |
Pacific Rubiales Energy Corp. 5.375%, 01/26/2019 | | | | | 665,000 | | | | 666,662 | | | | 0.18 | |
Pacific Rubiales Energy Corp. 7.250%, 12/12/2021 | | | | | 2,035,000 | | | | 2,172,363 | | | | 0.59 | |
Pacific Rubiales Energy Corp. 5.125%, 03/28/2023 | | | | | 1,090,000 | | | | 1,043,675 | | | | 0.28 | |
Pacific Rubiales Energy Corp. 5.625%, 01/19/2025(5)(6) | | | | | 2,740,000 | | | | 2,605,603 | | | | 0.71 | |
Transportadora de Gas Internacional S.A. ESP
5.700%, 03/20/2022 | | | | | 805,000 | | | | 860,143 | | | | 0.23 | |
| | | | | | | | | 16,198,672 | | | | 4.41 | |
Czech Republic (Cost $2,556,147) | | | | | | | | | | | | | | |
EP Energy A.S. 5.875%, 11/01/2019 | | EUR | | | 530,000 | | | | 759,767 | | | | 0.21 | |
New World Resources N.V. 8.000%, 04/07/2020(4)(5)(6) | | EUR | | | 1,301,822 | | | | 1,305,103 | | | | 0.36 | |
New World Resources N.V. 4.000%, 10/07/2020(4)(5)(6) | | EUR | | | 600,644 | | | | 346,241 | | | | 0.09 | |
| | | | | | | | | 2,411,111 | | | | 0.66 | |
Ghana (Cost $1,366,350) | | | | | | | | | | | | | | |
Tullow Oil PLC 6.000%, 11/01/2020 | | | | | 585,000 | | | | 546,975 | | | | 0.15 | |
Tullow Oil PLC 6.250%, 04/15/2022 | | | | | 785,000 | | | | 730,050 | | | | 0.20 | |
| | | | | | | | | 1,277,025 | | | | 0.35 | |
Guatemala (Cost $2,681,666) | | | | | | | | | | | | | | |
Comcel Trust 6.875%, 02/06/2024 | | | | | 2,510,000 | | | | 2,685,700 | | | | 0.73 | |
| | | | | | | | | 2,685,700 | | | | 0.73 | |
Hong Kong (Cost $1,617,599) | | | | | | | | | | | | | | |
CFG Investment S.A.C. 9.750%, 07/30/2019 | | | | | 610,000 | | | | 558,150 | | | | 0.15 | |
LS Finance 2017 Ltd. 5.250%, 01/26/2017 | | | | | 200,000 | | | | 212,334 | | | | 0.06 | |
Noble Group Ltd. 6.750%, 01/29/2020 | | | | | 200,000 | | | | 223,510 | | | | 0.06 | |
PCCW-HKT Capital No 4 Ltd. 4.250%, 02/24/2016 | | | | | 250,000 | | | | 259,025 | | | | 0.07 | |
Wharf Finance Ltd. 6.125%, 11/06/2017 | | | | | 300,000 | | | | 331,780 | | | | 0.09 | |
| | | | | | | | | 1,584,799 | | | | 0.43 | |
India (Cost $12,640,601) | | | | | | | | | | | | | | |
Bharat Petroleum Corp. Ltd. 4.625%, 10/25/2022 | | | | | 200,000 | | | | 204,570 | | | | 0.06 | |
Bharti Airtel International Netherlands B.V. 5.125%, 03/11/2023 | | | | | 950,000 | | | | 1,003,466 | | | | 0.27 | |
ICICI Bank Ltd. 4.750%, 11/25/2016 | | | | | 1,005,000 | | | | 1,055,637 | | | | 0.29 | |
Reliance Holding USA, Inc. 4.500%, 10/19/2020 | | | | | 250,000 | | | | 262,664 | | | | 0.07 | |
Reliance Holdings USA, Inc. 5.400%, 02/14/2022 | | | | | 750,000 | | | | 816,655 | | | | 0.22 | |
State Bank of India 4.125%, 08/01/2017 | | | | | 320,000 | | | | 333,484 | | | | 0.09 | |
State Bank of India 4.875%, 04/17/2024 | | | | | 200,000 | | | | 208,062 | | | | 0.06 | |
Suzlon Energy Ltd. 5.000%, 04/13/2016(2) | | | | | 1,000,000 | | | | 870,000 | | | | 0.24 | |
Suzlon Energy Ltd., FRN 3.250%, 07/16/2019 | | | | | 1,280,000 | | | | 1,030,400 | | | | 0.28 | |
Vedanta Resources PLC 9.500%, 07/18/2018 | | | | | 2,075,000 | | | | 2,360,312 | | | | 0.64 | |
Vedanta Resources PLC 6.000%, 01/31/2019 | | | | | 305,000 | | | | 311,100 | | | | 0.09 | |
Vedanta Resources PLC 8.250%, 06/07/2021 | | | | | 2,505,000 | | | | 2,730,450 | | | | 0.74 | |
See accompanying notes to the financial statements.
54
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net Assets | |
India - (continued) | | | | | | | | | | | | | | |
Vedanta Resources PLC 7.125%, 05/31/2023 | | | | | 1,830,000 | | | $ | 1,862,025 | | | | 0.51 | |
| | | | | | | | | 13,048,825 | | | | 3.56 | |
Indonesia (Cost $6,192,662) | | | | | | | | | | | | | | |
Berau Capital Resources Pte Ltd. 12.500%, 07/08/2015 | | | | | 655,000 | | | | 504,350 | | | | 0.14 | |
Berau Coal Energy Tbk PT 7.250%, 03/13/2017 | | | | | 1,845,000 | | | | 1,263,825 | | | | 0.34 | |
Bumi Capital Pte Ltd. 12.000%, 11/10/2016 | | | | | 570,000 | | | | 208,050 | | | | 0.06 | |
Bumi Investment Pte Ltd. 10.750%, 10/06/2017 | | | | | 1,700,000 | | | | 641,750 | | | | 0.18 | |
Enercoal Resources Pte Ltd. 6.000%, 04/07/2018 | | | | | 500,000 | | | | 185,000 | | | | 0.05 | |
Golden Legacy Pte Ltd. 9.000%, 04/24/2019 | | | | | 600,000 | | | | 630,066 | | | | 0.17 | |
Indo Energy Finance II B.V. 6.375%, 01/24/2023 | | | | | 2,100,000 | | | | 1,695,750 | | | | 0.46 | |
| | | | | | | | | 5,128,791 | | | | 1.40 | |
Iraq (Cost $1,382,631) | | | | | | | | | | | | | | |
Genel Energy Finance PLC 7.500%, 05/14/2019 | | | | | 1,400,000 | | | | 1,333,500 | | | | 0.36 | |
| | | | | | | | | 1,333,500 | | | | 0.36 | |
Israel (Cost $2,116,359) | | | | | | | | | | | | | | |
Delek & Avner Tamar Bond Ltd. 2.803%, 12/30/2016 | | | | | 200,000 | | | | 199,917 | | | | 0.06 | |
Delek & Avner Tamar Bond Ltd. 3.839%, 12/30/2018 | | | | | 130,000 | | | | 131,022 | | | | 0.04 | |
Israel Electric Corp. Ltd. 5.625%, 06/21/2018 | | | | | 695,000 | | | | 738,507 | | | | 0.20 | |
Israel Electric Corp. Ltd. 7.250%, 01/15/2019 | | | | | 470,000 | | | | 527,340 | | | | 0.14 | |
Israel Electric Corp. Ltd. 9.375%, 01/28/2020 | | | | | 425,000 | | | | 525,300 | | | | 0.14 | |
| | | | | | | | | 2,122,086 | | | | 0.58 | |
Jamaica (Cost $14,818,673) | | | | | | | | | | | | | | |
Digicel Group Ltd. 8.875%, 01/15/2015 | | | | | 9,200,000 | | | | 9,614,000 | | | | 2.62 | |
Digicel Group Ltd. 7.125%, 04/01/2022 | | | | | 1,970,000 | | | | 1,979,850 | | | | 0.54 | |
Digicel Ltd. 6.000%, 04/15/2021 | | | | | 3,205,000 | | | | 3,237,050 | | | | 0.88 | |
| | | | | | | | | 14,830,900 | | | | 4.04 | |
Kazakhstan (Cost $16,535,179) | | | | | | | | | | | | | | |
Development Bank of Kazakhstan JSC 4.125%, 12/10/2022 | | | | | 1,000,000 | | | | 946,250 | | | | 0.26 | |
Kaspi Bank JSC 9.875%, 10/28/2016 | | | | | 1,570,000 | | | | 1,636,725 | | | | 0.45 | |
KazAgro National Management Holding JSC 3.255%, 05/22/2019 | | EUR | | | 735,000 | | | | 920,301 | | | | 0.25 | |
KazAgro National Management Holding JSC 4.625%, 05/24/2023 | | | | | 410,000 | | | | 394,625 | | | | 0.11 | |
Kazkommertsbank JSC 8.000%, 11/03/2015 | | | | | 1,525,000 | | | | 1,525,000 | | | | 0.41 | |
Kazkommertsbank JSC 7.500%, 11/29/2016 | | | | | 2,095,000 | | | | 2,079,287 | | | | 0.57 | |
Kazkommertsbank JSC 6.875%, 02/13/2017 | | EUR | | | 2,000,000 | | | | 2,493,768 | | | | 0.68 | |
Kazkommertsbank JSC 8.500%, 05/11/2018 | | | | | 1,490,000 | | | | 1,480,986 | | | | 0.40 | |
KazMunayGas Co. JSC 6.000%, 07/11/2044 | | | | | 400,000 | | | | 400,000 | | | | 0.11 | |
Nostrum Oil & Gas Finance B.V. 6.375%, 02/14/2019 | | | | | 1,830,000 | | | | 1,834,575 | | | | 0.50 | |
Zhaikmunai LLP 7.125%, 11/13/2019 | | | | | 2,490,000 | | | | 2,589,600 | | | | 0.70 | |
| | | | | | | | | 16,301,117 | | | | 4.44 | |
Kuwait (Cost $1,546,211) | | | | | | | | | | | | | | |
Kuwait Projects Co. 9.375%, 07/15/2020 | | | | | 1,240,000 | | | | 1,554,712 | | | | 0.42 | |
| | | | | | | | | 1,554,712 | | | | 0.42 | |
Lithuania (Cost $2,052,545) | | | | | | | | | | | | | | |
Bite Finance International B.V., FRN 7.699%, 02/15/2018 | | EUR | | | 1,555,000 | | | | 1,714,810 | | | | 0.47 | |
| | | | | | | | | 1,714,810 | | | | 0.47 | |
Malaysia (Cost $398,669) | | | | | | | | | | | | | | |
Malayan Banking Bhd., FRN 3.250%, 09/20/2022 | | | | | 400,000 | | | | 404,210 | | | | 0.11 | |
| | | | | | | | | 404,210 | | | | 0.11 | |
Mexico (Cost $24,201,028) | | | | | | | | | | | | | | |
Alfa S.A.B. de C.V. 5.250%, 03/25/2024 | | | | | 200,000 | | | | 217,750 | | | | 0.06 | |
Alfa S.A.B. de C.V. 6.875%, 03/25/2044 | | | | | 400,000 | | | | 450,000 | | | | 0.12 | |
See accompanying notes to the financial statements.
55
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net Assets | |
Mexico - (continued) | | | | | | | | | | | | | | |
Alpek S.A. de C.V. 4.500%, 11/20/2022 | | | | | 200,000 | | | $ | 203,500 | | | | 0.06 | |
America Movil S.A.B. de C.V., FRN 1.235%, 09/12/2016 | | | | | 500,000 | | | | 504,874 | | | | 0.14 | |
America Movil S.A.B. de C.V. 5.000%, 03/30/2020 | | | | | 175,000 | | | | 192,911 | | | | 0.05 | |
America Movil S.A.B. de C.V. 6.450%, 12/05/2022 | | MXN | | | 14,950,000 | | | | 1,089,755 | | | | 0.30 | |
Banco Inbursa S.A. Institucion de Banca Multiple
4.125%, 06/06/2024 | | | | | 850,000 | | | | 833,000 | | | | 0.23 | |
BBVA Bancomer S.A. 4.500%, 03/10/2016 | | | | | 895,000 | | | | 933,037 | | | | 0.25 | |
CEMEX Espana S.A. 9.875%, 04/30/2019 | | | | | 1,220,000 | | | | 1,360,544 | | | | 0.37 | |
Cemex Finance LLC 9.375%, 10/12/2022 | | | | | 4,155,000 | | | | 4,788,638 | | | | 1.31 | |
Cemex S.A.B. de C.V. 6.500%, 12/10/2019 | | | | | 1,700,000 | | | | 1,821,125 | | | | 0.50 | |
Cemex S.A.B. de C.V. 7.250%, 01/15/2021 | | | | | 450,000 | | | | 485,438 | | | | 0.13 | |
Cemex S.A.B. de C.V. 5.700%, 01/11/2025 | | | | | 680,000 | | | | 666,196 | | | | 0.18 | |
Cemex SAB de CV 5.875%, 03/25/2019 | | | | | 855,000 | | | | 885,994 | | | | 0.24 | |
Comision Federal de Electricidad 4.875%, 05/26/2021 | | | | | 200,000 | | | | 213,000 | | | | 0.06 | |
Corp. GEO S.A.B. de C.V. 9.250%, 06/30/2020(3) | | | | | 100,000 | | | | 8,500 | | | | — | |
Corp. GEO S.A.B. de C.V. 8.875%, 03/27/2022(3) | | | | | 200,000 | | | | 17,000 | | | | 0.01 | |
Desarrolladora Homex S.A.B. de C.V. 9.500%, 12/11/2019(3) | | | | | 100,000 | | | | 11,550 | | | | — | |
Desarrolladora Homex S.A.B. de C.V. 9.750%, 03/25/2020(3) | | | | | 100,000 | | | | 11,550 | | | | — | |
El Puerto de Liverpool S.A.B. de C.V. 3.950%, 10/02/2024 | | | | | 600,000 | | | | 596,400 | | | | 0.16 | |
Empresas ICA S.A.B. de C.V. 8.900%, 02/04/2021 | | | | | 1,855,000 | | | | 1,961,663 | | | | 0.54 | |
Empresas ICA S.A.B. de C.V. 8.875%, 05/29/2024 | | | | | 1,900,000 | | | | 1,928,500 | | | | 0.53 | |
Fresnillo PLC 5.500%, 11/13/2023 | | | | | 700,000 | | | | 736,190 | | | | 0.20 | |
Grupo Televisa S.A.B. 6.625%, 03/18/2025 | | | | | 690,000 | | | | 840,864 | | | | 0.23 | |
Grupo Televisa S.A.B. 7.250%, 05/14/2043 | | MXN | | | 12,810,000 | | | | 811,007 | | | | 0.22 | |
Mexichem S.A.B. de C.V. 4.875%, 09/19/2022 | | | | | 475,000 | | | | 506,469 | | | | 0.14 | |
Mexichem S.A.B. de C.V. 5.875%, 09/17/2044 | | | | | 230,000 | | | | 230,000 | | | | 0.06 | |
Mexico Generadora de Energia S de rl 5.500%, 12/06/2032 | | | | | 500,000 | | | | 517,500 | | | | 0.14 | |
Red de Carreteras de Occidente S.A.P.I.B. de C.V. 9.000%, 06/10/2028 | | MXN | | | 7,140,000 | | | | 505,868 | | | | 0.14 | |
Urbi Desarrollos Urbanos S.A.B. de C.V. 8.500%, 04/19/2016(3) | | | | | 100,000 | | | | 10,050 | | | | — | |
Urbi Desarrollos Urbanos S.A.B. de C.V. 9.500%, 01/21/2020(2)(3) | | | | | 500,000 | | | | 50,250 | | | | 0.01 | |
Urbi Desarrollos Urbanos S.A.B. de C.V. 9.750%, 02/03/2022(2)(3) | | | | | 850,000 | | | | 85,425 | | | | 0.02 | |
| | | | | | | | | 23,474,548 | | | | 6.40 | |
Mongolia (Cost $5,967,254) | | | | | | | | | | | | | | |
Mongolian Mining Corp. 8.875%, 03/29/2017 | | | | | 6,260,000 | | | | 3,881,200 | | | | 1.06 | |
Trade & Development Bank of Mongolia LLC
8.500%, 09/20/2015 | | | | | 1,190,000 | | | | 1,190,039 | | | | 0.32 | |
| | | | | | | | | 5,071,239 | | | | 1.38 | |
Nigeria (Cost $9,072,279) | | | | | | | | | | | | | | |
Access Bank PLC, FRN 9.250%, 06/24/2021 | | | | | 1,895,000 | | | | 1,904,475 | | | | 0.52 | |
Afren PLC 6.625%, 12/09/2020 | | | | | 595,000 | | | | 557,932 | | | | 0.15 | |
FBN Finance Co. B.V., FRN 8.250%, 08/07/2020 | | | | | 1,600,000 | | | | 1,596,000 | | | | 0.43 | |
FBN Finance Co. B.V., FRN 8.000%, 07/23/2021 | | | | | 1,590,000 | | | | 1,550,250 | | | | 0.42 | |
Sea Trucks Group Ltd. 9.000%, 03/26/2018 | | | | | 2,210,000 | | | | 1,900,600 | | | | 0.52 | |
Seven Energy Ltd. 10.250%, 10/11/2021 | | | | | 1,100,000 | | | | 1,093,587 | | | | 0.30 | |
| | | | | | | | | 8,602,844 | | | | 2.34 | |
See accompanying notes to the financial statements.
56
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net Assets | |
Paraguay (Cost $1,640,295) | | | | | | | | | | | | | | |
Telefonica Celular del Paraguay S.A. 6.750%, 12/13/2022 | | | | | 1,530,000 | | | $ | 1,610,325 | | | | 0.44 | |
| | | | | | | | | 1,610,325 | | | | 0.44 | |
Peru (Cost $7,004,904) | | | | | | | | | | | | | | |
Abengoa Transmision Sur S.A. 6.875%, 04/30/2043 | | | | | 200,000 | | | | 221,479 | | | | 0.06 | |
Ajecorp B.V. 6.500%, 05/14/2022 | | | | | 1,980,000 | | | | 1,821,600 | | | | 0.50 | |
Banco de Credito del Peru 5.375%, 09/16/2020 | | | | | 250,000 | | | | 272,500 | | | | 0.07 | |
Banco de Credito del Peru 4.250%, 04/01/2023 | | | | | 330,000 | | | | 330,825 | | | | 0.09 | |
Banco Internacional del Peru S.A.A. 5.750%, 10/07/2020 | | | | | 400,000 | | | | 432,000 | | | | 0.12 | |
BBVA Banco Continental S.A. 3.250%, 04/08/2018 | | | | | 295,000 | | | | 300,900 | | | | 0.08 | |
BBVA Banco Continental S.A., FRN 5.250%, 09/22/2029 | | | | | 400,000 | | | | 404,600 | | | | 0.11 | |
Minsur S.A. 6.250%, 02/07/2024 | | | | | 450,000 | | | | 497,250 | | | | 0.13 | |
Southern Copper Corp. 3.500%, 11/08/2022 | | | | | 485,000 | | | | 473,283 | | | | 0.13 | |
Southern Copper Corp. 7.500%, 07/27/2035 | | | | | 175,000 | | | | 207,109 | | | | 0.06 | |
Southern Copper Corp. 5.250%, 11/08/2042 | | | | | 655,000 | | | | 614,665 | | | | 0.17 | |
Transportadora de Gas del Peru S.A. 4.250%, 04/30/2028 | | | | | 600,000 | | | | 576,000 | | | | 0.16 | |
Union Andina de Cementos S.A.A. 5.875%, 10/30/2021(5)(6) | | | | | 800,000 | | | | 812,160 | | | | 0.22 | |
| | | | | | | | | 6,964,371 | | | | 1.90 | |
Philippines (Cost $1,183,304) | | | | | | | | | | | | | | |
Petron Corp. 7.000%, 11/10/2017 | | PHP | | | 50,000,000 | | | | 1,154,295 | | | | 0.31 | |
| | | | | | | | | 1,154,295 | | | | 0.31 | |
Poland (Cost $3,189,484) | | | | | | | | | | | | | | |
PKO Finance AB 4.630%, 09/26/2022 | | | | | 1,140,000 | | | | 1,195,575 | | | | 0.33 | |
Polish Television Holding B.V. 11.000%, 01/15/2021(4) | | EUR | | | 1,345,000 | | | | 1,960,221 | | | | 0.53 | |
| | | | | | | | | 3,155,796 | | | | 0.86 | |
Qatar (Cost $3,012,660) | | | | | | | | | | | | | | |
CBQ Finance Ltd. 2.875%, 06/24/2019 | | | | | 395,000 | | | | 397,694 | | | | 0.11 | |
CBQ Finance Ltd. 7.500%, 11/18/2019 | | | | | 720,000 | | | | 864,000 | | | | 0.23 | |
Nakilat, Inc. 6.067%, 12/31/2033 | | | | | 180,000 | | | | 204,300 | | | | 0.06 | |
Ooredoo International Finance Ltd. 7.875%, 06/10/2019 | | | | | 830,000 | | | | 1,023,423 | | | | 0.28 | |
Ras Laffan Liquefied Natural Gas Co. Ltd. II 5.298%, 09/30/2020 | | | | | 222,984 | | | | 240,823 | | | | 0.06 | |
Ras Laffan Liquefied Natural Gas Co. Ltd. III 5.838%, 09/30/2027 | | | | | 250,000 | | | | 282,500 | | | | 0.08 | |
| | | | | | | | | 3,012,740 | | | | 0.82 | |
Russian Federation (Cost $46,737,203) | | | | | | | | | | | | | | |
Alfa Bank OJSC Via Alfa Bond Issuance PLC 8.625%, 04/26/2016 | | RUB | | | 73,900,000 | | | | 1,644,141 | | | | 0.45 | |
Alfa Bank OJSC Via Alfa Bond Issuance PLC 7.500%, 09/26/2019 | | | | | 3,420,000 | | | | 3,381,525 | | | | 0.92 | |
Alfa Bank OJSC Via Alfa Bond Issuance PLC 7.750%, 04/28/2021 | | | | | 1,300,000 | | | | 1,317,875 | | | | 0.36 | |
Brunswick Rail Finance Ltd. 6.500%, 11/01/2017 | | | | | 2,140,000 | | | | 1,909,950 | | | | 0.52 | |
CEDC Finance Corp. International, Inc., FRN 9.000%, 04/30/2018 | | | | | 2,720,127 | | | | 2,529,718 | | | | 0.69 | |
CEDC Finance Corp. International, Inc. 10.000%, 04/30/2018(4) | | | | | 2,183,060 | | | | 1,746,448 | | | | 0.48 | |
Credit Bank of Moscow Via CBOM Finance PLC
7.700%, 02/01/2018 | | | | | 2,730,000 | | | | 2,648,100 | | | | 0.72 | |
Far East Capital Ltd. S.A. 8.000%, 05/02/2018 | | | | | 2,570,000 | | | | 1,336,400 | | | | 0.36 | |
Far East Capital Ltd. S.A. 8.750%, 05/02/2020 | | | | | 1,650,000 | | | | 841,500 | | | | 0.23 | |
Gazprom Neft OAO Via GPN Capital S.A. 4.375%, 09/19/2022 | | | | | 1,090,000 | | | | 963,287 | | | | 0.26 | |
See accompanying notes to the financial statements.
57
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net Assets | |
Russian Federation - (continued) | | | | | | | | | | | | | | |
Gazprom OAO Via Gaz Capital S.A. 8.625%, 04/28/2034 | | | | | 100,000 | | | $ | 117,600 | | | | 0.03 | |
Metalloinvest Finance Ltd. 5.625%, 04/17/2020 | | | | | 472,000 | | | | 427,750 | | | | 0.12 | |
Mobile Telesystems OJSC via MTS International Funding Ltd.
8.625%, 06/22/2020 | | | | | 670,000 | | | | 728,893 | | | | 0.20 | |
Mobile Telesystems OJSC via MTS International Funding Ltd.
5.000%, 05/30/2023 | | | | | 200,000 | | | | 179,250 | | | | 0.05 | |
Petropavlovsk 2010 Ltd. 4.000%, 02/18/2015 | | | | | 1,200,000 | | | | 806,160 | | | | 0.22 | |
Rosneft Oil Co. via Rosneft International Finance Ltd.
3.149%, 03/06/2017 | | | | | 200,000 | | | | 191,982 | | | | 0.05 | |
Rosneft Oil Co. via Rosneft International Finance Ltd.
4.199%, 03/06/2022 | | | | | 200,000 | | | | 174,500 | | | | 0.05 | |
Russian Standard Bank Via Russian Standard Finance S.A.
9.250%, 07/11/2017 | | | | | 2,190,000 | | | | 2,099,662 | | | | 0.57 | |
Russian Standard Bank Via Russian Standard Finance S.A.
10.750%, 04/10/2018 | | | | | 1,790,000 | | | | 1,432,000 | | | | 0.39 | |
Sberbank of Russia Via SB Capital S.A. 5.499%, 07/07/2015 | | | | | 660,000 | | | | 669,775 | | | | 0.18 | |
Sistema JSFC via Sistema International Funding S.A.
6.950%, 05/17/2019 | | | | | 955,000 | | | | 735,350 | | | | 0.20 | |
Tinkoff Credit Systems Via TCS Finance Ltd. 10.750%, 09/18/2015 | | | | | 1,800,000 | | | | 1,782,594 | | | | 0.49 | |
Tinkoff Credit Systems Via TCS Finance Ltd. 14.000%, 06/06/2018 | | | | | 1,410,000 | | | | 1,388,850 | | | | 0.38 | |
TMK OAO Via TMK Capital S.A. 7.750%, 01/27/2018 | | | | | 1,855,000 | | | | 1,857,319 | | | | 0.51 | |
TMK OAO Via TMK Capital S.A. 6.750%, 04/03/2020 | | | | | 1,500,000 | | | | 1,351,875 | | | | 0.37 | |
VEB-Leasing Via VEB Leasing Investment Ltd. 5.125%, 05/27/2016 | | | | | 200,000 | | | | 199,750 | | | | 0.05 | |
Vimpel Communications Via VIP Finance Ireland Ltd. OJSC
7.748%, 02/02/2021 | | | | | 2,855,000 | | | | 2,904,962 | | | | 0.79 | |
VimpelCom Holdings B.V. 9.000%, 02/13/2018 | | RUB | | | 77,430,000 | | | | 1,659,488 | | | | 0.45 | |
VimpelCom Holdings B.V. 7.504%, 03/01/2022 | | | | | 3,180,000 | | | | 3,172,050 | | | | 0.87 | |
VimpelCom Holdings B.V. 5.950%, 02/13/2023 | | | | | 2,355,000 | | | | 2,163,845 | | | | 0.59 | |
VTB Bank OJSC Via VTB Capital S.A. 6.465%, 03/04/2015 | | | | | 270,000 | | | | 271,647 | | | | 0.07 | |
| | | | | | | | | 42,634,246 | | | | 11.62 | |
Saudi Arabia (Cost $1,958,365) | | | | | | | | | | | | | | |
SABIC Capital II B.V. 2.625%, 10/03/2018 | | | | | 500,000 | | | | 503,750 | | | | 0.14 | |
Saudi Electricity Global Sukuk Co. 2.665%, 04/03/2017 | | | | | 705,000 | | | | 725,290 | | | | 0.20 | |
Saudi Electricity Global Sukuk Co. 3 4.000%, 04/08/2024 | | | | | 710,000 | | | | 745,500 | | | | 0.20 | |
| | | | | | | | | 1,974,540 | | | | 0.54 | |
Singapore (Cost $665,117) | | | | | | | | | | | | | | |
SingTel Group Treasury Pte Ltd. 2.375%, 09/08/2017 | | | | | 255,000 | | | | 261,404 | | | | 0.07 | |
United Overseas Bank Ltd., FRN 2.875%, 10/17/2022 | | | | | 400,000 | | | | 404,120 | | | | 0.11 | |
| | | | | | | | | 665,524 | | | | 0.18 | |
South Africa (Cost $10,043,622) | | | | | | | | | | | | | | |
AngloGold Ashanti Holdings PLC 8.500%, 07/30/2020 | | | | | 1,575,000 | | | | 1,693,125 | | | | 0.46 | |
Edcon Holdings Pty. Ltd. 13.375%, 06/30/2019 | | EUR | | | 1,680,000 | | | | 1,017,025 | | | | 0.28 | |
Edcon Pty. Ltd. 9.500%, 03/01/2018 | | EUR | | | 3,755,000 | | | | 3,882,102 | | | | 1.06 | |
Myriad International Holdings B.V. 6.375%, 07/28/2017 | | | | | 360,000 | | | | 390,600 | | | | 0.10 | |
Standard Bank PLC 8.125%, 12/02/2019 | | | | | 985,000 | | | | 1,127,825 | | | | 0.31 | |
| | | | | | | | | 8,110,677 | | | | 2.21 | |
See accompanying notes to the financial statements.
58
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net Assets | |
South Korea (Cost $2,602,607) | | | | | | | | | | | | | | |
Korea Gas Corp. 2.875%, 07/29/2018 | | | | | 705,000 | | | $ | 719,636 | | | | 0.20 | |
Korea Gas Corp. 6.250%, 01/20/2042 | | | | | 305,000 | | | | 411,875 | | | | 0.11 | |
Lotte Shopping Co. Ltd. 3.375%, 05/09/2017 | | | | | 200,000 | | | | 206,475 | | | | 0.06 | |
Shinhan Bank 1.875%, 07/30/2018 | | | | | 500,000 | | | | 493,608 | | | | 0.13 | |
SK Innovation Co. Ltd. 3.625%, 08/14/2018 | | | | | 400,000 | | | | 415,132 | | | | 0.11 | |
Woori Bank Co. Ltd. 2.875%, 10/02/2018 | | | | | 350,000 | | | | 358,680 | | | | 0.10 | |
| | | | | | | | | 2,605,406 | | | | 0.71 | |
Thailand (Cost $1,975,561) | | | | | | | | | | | | | | |
Bangkok Bank PCL 3.875%, 09/27/2022 | | | | | 500,000 | | | | 512,824 | | | | 0.14 | |
PTT Global Chemical PCL 4.250%, 09/19/2022 | | | | | 710,000 | | | | 724,777 | | | | 0.20 | |
Siam Commercial Bank Ltd. 3.375%, 09/19/2017 | | | | | 705,000 | | | | 727,619 | | | | 0.20 | |
| | | | | | | | | 1,965,220 | | | | 0.54 | |
Turkey (Cost $5,664,649) | | | | | | | | | | | | | | |
Akbank TAS 7.500%, 02/05/2018 | | TRY | | | 1,680,000 | | | | 696,671 | | | | 0.19 | |
Anadolu Efes Biracilik Ve Malt Sanayii A.S. 3.375%, 11/01/2022 | | | | | 200,000 | | | | 179,816 | | | | 0.05 | |
KOC Holding A.S. 3.500%, 04/24/2020 | | | | | 1,030,000 | | | | 978,500 | | | | 0.27 | |
Tupras Turkiye Petrol Rafinerileri A.S. 4.125%, 05/02/2018 | | | | | 940,000 | | | | 932,010 | | | | 0.25 | |
Turkiye Garanti Bankasi A.S. 7.375%, 03/07/2018 | | TRY | | | 1,720,000 | | | | 713,068 | | | | 0.19 | |
Turkiye Garanti Bankasi A.S. 4.750%, 10/17/2019 | | | | | 755,000 | | | | 765,993 | | | | 0.21 | |
Turkiye Garanti Bankasi A.S. 6.250%, 04/20/2021 | | | | | 200,000 | | | | 215,511 | | | | 0.06 | |
Turkiye Is Bankasi 5.500%, 04/21/2019 | | | | | 375,000 | | | | 389,062 | | | | 0.11 | |
Turkiye Is Bankasi 5.000%, 04/30/2020 | | | | | 200,000 | | | | 201,000 | | | | 0.05 | |
Yuksel Insaat A.S. 9.500%, 11/10/2015 | | | | | 900,000 | | | | 504,180 | | | | 0.14 | |
| | | | | | | | | 5,575,811 | | | | 1.52 | |
Ukraine (Cost $34,014,112) | | | | | | | | | | | | | | |
Avangardco Investments Public Ltd. 10.000%, 10/29/2015 | | | | | 2,120,000 | | | | 1,839,524 | | | | 0.50 | |
Commercial Bank Privatbank JSC Via Standard Bank
5.799%, 02/09/2016 | | | | | 720,000 | | | | 460,944 | | | | 0.13 | |
DTEK Finance B.V. 9.500%, 04/28/2015 | | | | | 1,425,000 | | | | 1,236,188 | | | | 0.34 | |
DTEK Finance PLC 7.875%, 04/04/2018 | | | | | 6,055,000 | | | | 3,844,925 | | | | 1.05 | |
Ferrexpo Finance PLC 7.875%, 04/07/2016 | | | | | 3,610,000 | | | | 3,394,122 | | | | 0.92 | |
Metinvest B.V. 10.250%, 05/20/2015 | | | | | 3,600,000 | | | | 2,862,720 | | | | 0.78 | |
Metinvest B.V. 8.750%, 02/14/2018 | | | | | 5,440,000 | | | | 3,797,990 | | | | 1.04 | |
MHP S.A. 10.250%, 04/29/2015 | | | | | 1,715,000 | | | | 1,697,850 | | | | 0.46 | |
MHP S.A. 8.250%, 04/02/2020 | | | | | 5,555,000 | | | | 4,861,736 | | | | 1.33 | |
Mriya Agro Holding PLC 9.450%, 04/19/2018 | | | | | 2,000,000 | | | | 400,000 | | | | 0.11 | |
NTRP Via Interpipe Ltd. 10.250%, 08/02/2017 | | | | | 200,000 | | | | 120,600 | | | | 0.03 | |
Oschadbank Via SSB #1 PLC 8.250%, 03/10/2016 | | | | | 1,053,000 | | | | 851,866 | | | | 0.23 | |
Oschadbank Via SSB #1 PLC 8.875%, 03/20/2018 | | | | | 755,000 | | | | 598,489 | | | | 0.16 | |
Privatbank CJSC Via UK SPV Credit Finance PLC
9.375%, 09/23/2015 | | | | | 545,000 | | | | 419,759 | | | | 0.11 | |
UKRLANDFARMING PLC 10.875%, 03/26/2018 | | | | | 3,605,000 | | | | 2,271,150 | | | | 0.62 | |
| | | | | | | | | 28,657,863 | | | | 7.81 | |
United Arab Emirates (Cost $25,688,966) | | | | | | | | | | | | | | |
Abu Dhabi National Energy Co. 2.500%, 01/12/2018 | | | | | 415,000 | | | | 420,415 | | | | 0.11 | |
Abu Dhabi National Energy Co. 5.875%, 12/13/2021 | | | | | 470,000 | | | | 551,662 | | | | 0.15 | |
ADCB Finance Cayman Ltd. 3.000%, 03/04/2019 | | | | | 650,000 | | | | 661,505 | | | | 0.18 | |
ADCB Finance Cayman Ltd., FRN 3.125%, 05/28/2023 | | | | | 400,000 | | | | 394,500 | | | | 0.11 | |
Anka a Sukuk Ltd. 10.000%, 08/25/2016 | | AED | | | 25,400,000 | | | | 7,624,149 | | | | 2.08 | |
Dana Gas Sukuk Ltd. 9.000%, 10/31/2017 | | | | | 781,150 | | | | 710,846 | | | | 0.19 | |
DP World Ltd. 6.850%, 07/02/2037 | | | | | 690,000 | | | | 791,775 | | | | 0.22 | |
DP World Sukuk Ltd. 6.250%, 07/02/2017 | | | | | 1,760,000 | | | | 1,931,600 | | | | 0.53 | |
See accompanying notes to the financial statements.
59
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
United Arab Emirates - (continued) | | | | | | | | | | | | | | |
Dubai Electricity & Water Authority 6.375%, 10/21/2016 | | | | | 200,000 | | | $ | 218,760 | | | | 0.06 | |
Dubai Electricity & Water Authority 7.375%, 10/21/2020 | | | | | 475,000 | | | | 582,469 | | | | 0.16 | |
Dubai Holding Commercial Operations MTN Ltd.
6.000%, 02/01/2017 | | GBP | | | 3,100,000 | | | | 5,067,178 | | | | 1.38 | |
Emaar Sukuk Ltd. 6.400%, 07/18/2019 | | | | | 700,000 | | | | 797,125 | | | | 0.22 | |
EMG SUKUK Ltd. 4.564%, 06/18/2024 | | | | | 850,000 | | | | 875,500 | | | | 0.24 | |
Emirates Telecommunications Corp. 2.375%, 06/18/2019 | | | | | 280,000 | | | | 280,972 | | | | 0.08 | |
Emirates Telecommunications Corp. 2.750%, 06/18/2026 | | EUR | | | 655,000 | | | | 861,854 | | | | 0.23 | |
MAF Global Securities Ltd. 5.250%, 07/05/2019 | | | | | 745,000 | | | | 808,325 | | | | 0.22 | |
MAF Global Securities Ltd. 4.750%, 05/07/2024 | | | | | 840,000 | | | | 858,900 | | | | 0.23 | |
MAF Sukuk Ltd. 5.850%, 02/07/2017 | | | | | 400,000 | | | | 434,500 | | | | 0.12 | |
Sukuk Funding No. 3 Ltd. 4.348%, 12/03/2018 | | | | | 1,920,000 | | | | 1,998,436 | | | | 0.54 | |
| | | | | | | | | 25,870,471 | | | | 7.05 | |
Vietnam (Cost $1,570,181) | | | | | | | | | | | | | | |
Vingroup JSC 11.625%, 05/07/2018 | | | | | 1,455,000 | | | | 1,600,500 | | | | 0.44 | |
| | | | | | | | | 1,600,500 | | | | 0.44 | |
Total Debt Securities (Cost $347,769,625) | | | | | | | | | 332,060,789 | | | | 90.50 | |
| | | | |
Bank Loans | | | | | | | | | | | | | | |
| | | | |
Czech Republic (Cost $569,811) | | | | | | | | | | | | | | |
New World Resources N.V. 4.081%, 10/07/2016(5)(6) | | EUR | | | 449,999 | | | | 563,916 | | | | 0.15 | |
| | | | | | | | | 563,916 | | | | 0.15 | |
United Arab Emirates (Cost $12,190,612) | | | | | | | | | | | | | | |
DP World Ltd. 1.000%, 09/30/2015(2) | | | | | 3,078,960 | | | | 2,894,223 | | | | 0.79 | |
DP World Ltd. 2.500%, 09/30/2018(2) | | | | | 10,079,753 | | | | 7,509,416 | | | | 2.05 | |
DP World Ltd. 3.000%, 09/30/2018(2) | | | | | 1,527,047 | | | | 1,137,650 | | | | 0.31 | |
| | | | | | | | | 11,541,289 | | | | 3.15 | |
Total Bank Loans (Cost $12,760,423) | | | | | | | | | 12,105,205 | | | | 3.30 | |
| | | | |
| | | | | Shares | | | Value | | | % of Net
Assets | |
Equity Securities | | | | | | | | | | | | | | |
| | | | |
China (Cost $ — ) | | | | | | | | | | | | | | |
Emerald Plantation Holdings Ltd.(2) | | | | | 78,275 | | | $ | 12,328 | | | | 0.01 | |
| | | | | | | | | 12,328 | | | | 0.01 | |
Czech Republic (Cost $1,093,253) | | | | | | | | | | | | | | |
New World Resources PLC, Class A | | GBP | | | 36,580,138 | | | | 775,354 | | | | 0.21 | |
| | | | | | | | | 775,354 | | | | 0.21 | |
Total Equity Securities (Cost $1,093,253) | | | | | | | | | 787,682 | | | | 0.22 | |
| | | | |
Rights | | | | | | | | | | | | | | |
| | | | |
Czech Republic (Cost $ — ) | | | | | | | | | | | | | | |
New World Resources N.V., FRN(5)(6)(7) | | EUR | | | 58,064 | | | | — | | | | — | |
New World Resources N.V.(5)(6)(7) | | EUR | | | 43,548 | | | | — | | | | — | |
| | | | | | | | | — | | | | — | |
Total Rights (Cost $ — ) | | | | | | | | | — | | | | — | |
See accompanying notes to the financial statements.
60
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | |
| | | Number
of
Warrants | | | Value | | | % of Net Assets | |
Warrants | | | | | | | | | | | | |
| | | |
China (Cost $3,926) | | | | | | | | | | | | |
Far East Energy Bermuda Ltd., Exp. 12/31/2017, Strike Price $11.92(5)(6) | | | 186,955 | | | $ | 9,535 | | | | — | |
| | | | | | | 9,535 | | | | — | |
Total Warrants (Cost $3,926) | | | | | | | 9,535 | | | | — | |
Total Investments (Total Cost $361,627,227) | | | | | | | 344,963,211 | | | | 94.02 | |
| | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for
further detail) | | | | | | | 21,936,327 | | | | 5.98 | |
| | | |
Net Assets | | | | | | $ | 366,899,538 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | Security determined to be illiquid by the Investment Manager. |
| (3) | Issuer has defaulted on terms of debt obligation. |
| (4) | Security is payment in-kind bond. |
| (5) | Restricted security that has been deemed illiquid. At October 31, 2014, the value of these restricted illiquid securities amounted to approximately $5,887,895 or 1.6% of net assets. Additional information on these restricted illiquid securities is as follows: |
| | | | | | |
| SECURITY | | ACQUISITION AND
ENFORCEABLE
DATE | | ACQUISITION COST | |
Far East Energy Bermunda Ltd., 13.000%, 01/15/2016 | | 10/04/2012 | | | $ 242,226 | |
Far East Energy Bermuda Ltd., Exp. 12/31/2017, Strike Price $11.92 | | 01/14/2013 | | | 3,926 | |
New World Resources N.V., 4.081%, 10/07/2016 | | 10/07/2014 | | | 569,811 | |
New World Resources N.V., 8.000%, 04/07/2020 | | 10/07/2014 | | | 1,401,167 | |
New World Resources N.V., 0.000%, 10/07/2020 | | 10/07/2014 | | | — | |
New World Resources N.V., 0.000%, 10/07/2020 | | 07/14/2010 | | | — | |
New World Resources N.V., 4.000%, 10/07/2020 | | 07/14/2010 | | | 380,283 | |
Pacific Rubiales Energy Corp., 5.625%, 01/19/2025 | | 09/15/2014-10/08/2014 | | | 2,712,830 | |
Sino-Forest Corp., 5.000%, 08/01/2013 | | 01/31/2013 | | | — | |
Sino-Forest Corp., 10.250%, 07/28/2014 | | 01/31/2013 | | | — | |
Sino-Forest Corp., 4.250%, 12/15/2016 | | 01/31/2013 | | | — | |
Sino-Forest Corp., 6.250%, 10/21/2017 | | 01/31/2013 | | | — | |
Union Andina de Cementos S.A.A., 5.875%, 10/30/2021 | | 10/28/2014 | | | 800,000 | |
| (6) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded without registration under the Securities Act of 1933. |
| (7) | Security has been deemed worthless and is a Level 3 investment. |
Percentages shown are based on net assets.
See accompanying notes to the financial statements.
61
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
At October 31, 2014, the Ashmore Emerging Markets Corporate Debt Fund had outstanding forward foreign currency exchange contracts as follows:
| | | | | | | | | | | | | | | | | | |
Settlement
Date | | Counterparty | | CurrencyBuy | | Currency Buy
Amount
(Local
Currency) | | | CurrencySell | | Currency Sell
Amount
(Local
Currency) | | | Unrealized
Gain/(Loss) | |
11/04/2014 | | Barclays Wholesale GTS | | Brazilian Real | | | 889,975 | | | United States Dollar | | | 354,713 | | | | $ 4,013 | |
11/04/2014 | | JP Morgan | | Brazilian Real | | | 889,975 | | | United States Dollar | | | 350,729 | | | | 7,996 | |
11/04/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 730,566 | | | Brazilian Real | | | 1,779,950 | | | | 13,114 | |
11/14/2014 | | Barclays Wholesale GTS | | Brazilian Real | | | 1,779,950 | | | United States Dollar | | | 728,234 | | | | (12,980) | |
11/14/2014 | | BNP Paris | | British Pound | | | 1,596,728 | | | United States Dollar | | | 2,571,741 | | | | (17,746) | |
11/14/2014 | | BNP Paris | | Euro | | | 191,936 | | | United States Dollar | | | 245,081 | | | | (4,535) | |
11/14/2014 | | BNP Paris | | Euro | | | 472,612 | | | United States Dollar | | | 597,160 | | | | (4,854) | |
11/14/2014 | | BNP Paris | | Euro | | | 215,898 | | | United States Dollar | | | 276,312 | | | | (5,736) | |
11/14/2014 | | Merrill Lynch International | | Euro | | | 1,037,085 | | | United States Dollar | | | 1,310,000 | | | | (10,261) | |
11/14/2014 | | BNP Paris | | United States Dollar | | | 515,892 | | | British Pound | | | 321,496 | | | | 1,653 | |
11/14/2014 | | HSBC Bank PLC | | United States Dollar | | | 7,374,013 | | | British Pound | | | 4,588,460 | | | | 34,689 | |
11/14/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 16,544,386 | | | Euro | | | 13,096,601 | | | | 130,914 | |
11/14/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 117,386 | | | Euro | | | 92,794 | | | | 1,090 | |
11/14/2014 | | BNP Paris | | United States Dollar | | | 209,805 | | | Euro | | | 164,653 | | | | 3,451 | |
11/14/2014 | | BNP Paris | | United States Dollar | | | 179,291 | | | Euro | | | 141,695 | | | | 1,709 | |
11/14/2014 | | Deutsche Bank London | | United States Dollar | | | 108,366 | | | Euro | | | 85,593 | | | | 1,096 | |
11/14/2014 | | Deutsche Bank London | | United States Dollar | | | 105,442 | | | Euro | | | 84,267 | | | | (167) | |
11/14/2014 | | Merrill Lynch International | | United States Dollar | | | 1,349,364 | | | Euro | | | 1,065,714 | | | | 13,744 | |
11/28/2014 | | Goldman Sachs Intl Ltd. London | | United States Dollar | | | 1,833,523 | | | Colombian Peso | | | 3,769,722,576 | | | | 7,673 | |
12/02/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 351,922 | | | Brazilian Real | | | 889,975 | | | | (3,757) | |
12/02/2014 | | JP Morgan | | United States Dollar | | | 347,980 | | | Brazilian Real | | | 889,975 | | | | (7,699) | |
01/30/2015 | | Deutsche Bank London | | Mexican Peso | | | 31,058 | | | United States Dollar | | | 2,280 | | | | 14 | |
01/30/2015 | | HSBC Bank PLC | | Mexican Peso | | | 49,392 | | | United States Dollar | | | 3,630 | | | | 18 | |
01/30/2015 | | Santander | | Chilean Peso | | | 559,500 | | | United States Dollar | | | 950 | | | | 14 | |
| | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | $ 153,453 | |
| | | | | | | | | | | | | | | | | | |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities and other financial instruments, if any. See note 4 in the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. The following is a summary of the inputs used in valuing the Ashmore Emerging Markets Corporate Debt Fund’s investments and other financial instruments, which are carried at fair value, as of October 31, 2014:
| | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | | Level 3 | | Total | |
Investments | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | |
Common Stock | | $ — | | $ | 787,682 | | | $ — | | $ | 787,682 | |
Debt Securities | | | | | | | | | | | | |
Corporate Bonds | | — | | | 310,028,494 | | | — | | | 310,028,494 | |
Corporate Convertible Bonds | | — | | | 4,984,249 | | | — | | | 4,984,249 | |
Index Linked Corporate Bonds | | — | | | 1,205,100 | | | — | | | 1,205,100 | |
Financial Certificates | | — | | | 15,842,946 | | | — | | | 15,842,946 | |
| | | | | | | | | | | | |
Total Debt Securities | | — | | | 332,060,789 | | | — | | | 332,060,789 | |
Bank Loans | | | | | | | | | | | | |
Czech Republic | | — | | | — | | | 563,916 | | | 563,916 | |
United Arab Emirates | | — | | | 11,541,289 | | | — | | | 11,541,289 | |
| | | | | | | | | | | | |
Total Bank Loans | | — | | | 11,541,289 | | | 563,916 | | | 12,105,205 | |
Rights | | — | | | — | | | — | | | — | |
Warrants | | — | | | 9,535 | | | — | | | 9,535 | |
Total Investments | | $ — | | $ | 344,399,295 | | | $563,916 | | $ | 344,963,211 | |
See accompanying notes to the financial statements.
62
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | $ — | | | $ | 221,188 | | | | $ — | | | $ | 221,188 | |
Liabilities: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | — | | | | (67,735 | ) | | | — | | | | (67,735 | ) |
Total Other Financial Instruments | | | $ — | | | $ | 153,453 | | | | $ — | | | $ | 153,453 | |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2014 there were no transfers between Level 1, Level 2 and Level 3 based on levels assigned to the securities on October 31, 2013. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
| | | | | | | | | | | | | | | | | | | | | | |
Category and Subcategory | | Beginning Balance
at 10/31/2013 | | Purchases | | Sales | | Realized
Gains | | Realized
Losses | | Change in
Unrealized
Appreciation/
(Depreciation) | | Transfer
into
Level 3 | | | Transfer
out of
Level 3 | | Ending
Balance
at 10/31/2014 | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | |
Corporate Bonds | | $ — | | $569,811 | | $ — | | $ — | | $ — | | $(5,895) | | | $ — | | | $ — | | | $563,916 | |
Total | | $ — | | $569,811 | | $ — | | $ — | | $ — | | $(5,895) | | | $ — | | | $ — | | | $563,916 | |
See accompanying notes to the financial statements.
63
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
See the table on “Quantitative information about Fair Value measurement” for information on the valuation techniques and inputs used to value Level 3 securities at October 31, 2014.
| | | | | | | | | | | | | | |
Quantitative Information about Level 3 Fair Value Measurements |
| | |
| Fair Value at
10/31/2014 |
| |
| Valuation
Technique |
| |
| Unobservable
Input |
| | Actual |
| | | | | | | At cost plus | | | | | | | |
Corporate Bonds | | | $563,916 | | | | accrued interest | | | | Loan Terms | | | N/A |
The following is a summary of the fair values of the Fund’s derivative instruments*:
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of October 31, 2014:
| | | | |
| | | Derivatives Not Accounted
for as Hedging Instruments | |
| | | Foreign Exchange | |
Assets: | | | | |
Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | $ | 221,188 | |
| | | | |
Liabilities: | | | | |
Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | | $ | (67,735 | ) |
| | | | |
The Effect of Financial Derivative Instruments on the Statements of Operations for the Year Ended October 31, 2014:
| | | | |
| | | Derivatives Not Accounted
for as Hedging Instruments | |
| | | Foreign Exchange | |
Realized Gain (Loss) on Derivatives Recognized resulting from Operations: | | | | |
Net Realized Gain on Forward Foreign Currency Exchange Contracts | | $ | 1,013,345 | |
| | | | |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized resulting from Operations: | | | | |
Net Change in Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | $ | 179,220 | |
| | | | |
* See note 10 in the Notes to the Financial Statements for additional information.
At October 31, 2014, for U.S. federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation/(depreciation) on investments in securities (including the effects of foreign currency translation) and the cost basis of investments were as follows:
| | | | |
Federal tax cost of investments | | | $361,949,692 | |
Gross tax appreciation of investments | | | 2,681,168 | |
Gross tax depreciation of investments | | | (19,667,649) | |
Net tax depreciation of investments | | | $(16,986,481) | |
The difference between book basis and tax basis net unrealized appreciation or depreciation is attributable primarily to the tax deferral of losses on wash sales.
See accompanying notes to the financial statements.
64
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Debt Securities | | | | | | | | | | | | | | |
| | | | |
Brazil (Cost $4,598,758) | | | | | | | | | | | | | | |
Brazil Notas do Tesouro Nacional Serie F 10.000%, 01/01/2021 | | BRL | | | 440,000 | | | $ | 162,390 | | | | 0.16 | |
Brazil Notas do Tesouro Nacional Serie F 10.000%, 01/01/2023 | | BRL | | | 11,220,000 | | | | 4,066,783 | | | | 3.97 | |
| | | | | | | | | 4,229,173 | | | | 4.13 | |
Chile (Cost $229,878) | | | | | | | | | | | | | | |
Bonos de la Tesoreria de la Republica en pesos 6.000%, 01/01/2020 | | CLP | | | 20,000,000 | | | | 37,904 | | | | 0.04 | |
Chile (Rep of) 5.500%, 08/05/2020 | | CLP | | | 81,000,000 | | | | 148,439 | | | | 0.14 | |
| | | | | | | | | 186,343 | | | | 0.18 | |
Colombia (Cost $6,359,220) | | | | | | | | | | | | | | |
Colombia (Rep of) 12.000%, 10/22/2015 | | COP | | | 681,000,000 | | | | 351,009 | | | | 0.34 | |
Colombia (Rep of) 7.750%, 04/14/2021 | | COP | | | 1,290,000,000 | | | | 682,336 | | | | 0.67 | |
Colombia (Rep of) 4.375%, 03/21/2023 | | COP | | | 369,000,000 | | | | 158,271 | | | | 0.15 | |
Colombian TES 8.000%, 10/28/2015 | | COP | | | 136,700,000 | | | | 68,513 | | | | 0.07 | |
Colombian TES 7.000%, 09/11/2019 | | COP | | | 856,400,000 | | | | 439,280 | | | | 0.43 | |
Colombian TES 7.000%, 05/04/2022 | | COP | | | 3,844,100,000 | | | | 1,923,190 | | | | 1.88 | |
Colombian TES 10.000%, 07/24/2024 | | COP | | | 1,040,900,000 | | | | 627,156 | | | | 0.61 | |
Colombian TES 7.500%, 08/26/2026 | | COP | | | 1,447,600,000 | | | | 736,964 | | | | 0.72 | |
Colombian TES 6.000%, 04/28/2028 | | COP | | | 1,625,000,000 | | | | 718,988 | | | | 0.70 | |
| | | | | | | | | 5,705,707 | | | | 5.57 | |
Hungary (Cost $2,124,117) | | | | | | | | | | | | | | |
Hungary (Rep of) 6.750%, 11/24/2017 | | HUF | | | 200,520,000 | | | | 914,826 | | | | 0.89 | |
Hungary (Rep of) 6.500%, 06/24/2019 | | HUF | | | 53,480,000 | | | | 249,298 | | | | 0.24 | |
Hungary (Rep of) 7.000%, 06/24/2022 | | HUF | | | 93,180,000 | | | | 459,866 | | | | 0.45 | |
Hungary (Rep of) 6.000%, 11/24/2023 | | HUF | | | 98,760,000 | | | | 465,834 | | | | 0.46 | |
| | | | | | | | | 2,089,824 | | | | 2.04 | |
Indonesia (Cost $4,433,943) | | | | | | | | | | | | | | |
Indonesia (Rep of) 6.250%, 04/15/2017 | | IDR | | | 4,104,000,000 | | | | 328,676 | | | | 0.32 | |
Indonesia (Rep of) 5.250%, 05/15/2018 | | IDR | | | 6,050,000,000 | | | | 461,132 | | | | 0.45 | |
Indonesia (Rep of) 7.875%, 04/15/2019 | | IDR | | | 9,239,000,000 | | | | 765,266 | | | | 0.75 | |
Indonesia (Rep of) 11.000%, 11/15/2020 | | IDR | | | 1,400,000,000 | | | | 131,971 | | | | 0.13 | |
Indonesia (Rep of) 8.375%, 03/15/2024 | | IDR | | | 10,282,000,000 | | | | 869,099 | | | | 0.85 | |
Indonesia (Rep of) 9.000%, 03/15/2029 | | IDR | | | 14,310,000,000 | | | | 1,243,697 | | | | 1.21 | |
Indonesia (Rep of) 8.375%, 03/15/2034 | | IDR | | | 4,711,000,000 | | | | 387,093 | | | | 0.38 | |
| | | | | | | | | 4,186,934 | | | | 4.09 | |
Malaysia (Cost $4,951,737) | | | | | | | | | | | | | | |
Malaysia (Rep of) 3.394%, 03/15/2017 | | MYR | | | 1,681,000 | | | | 509,494 | | | | 0.50 | |
Malaysia (Rep of) 4.012%, 09/15/2017 | | MYR | | | 1,500,000 | | | | 461,297 | | | | 0.45 | |
Malaysia (Rep of) 3.580%, 09/28/2018 | | MYR | | | 1,920,000 | | | | 583,075 | | | | 0.57 | |
Malaysia (Rep of) 3.654%, 10/31/2019 | | MYR | | | 2,707,000 | | | | 823,130 | | | | 0.80 | |
Malaysia (Rep of) 4.378%, 11/29/2019 | | MYR | | | 354,000 | | | | 110,989 | | | | 0.11 | |
Malaysia (Rep of) 3.492%, 03/31/2020 | | MYR | | | 2,870,000 | | | | 864,617 | | | | 0.85 | |
Malaysia (Rep of) 4.160%, 07/15/2021 | | MYR | | | 685,000 | | | | 212,975 | | | | 0.21 | |
Malaysia (Rep of) 4.048%, 09/30/2021 | | MYR | | | 841,000 | | | | 259,859 | | | | 0.25 | |
Malaysia (Rep of) 3.418%, 08/15/2022 | | MYR | | | 534,000 | | | | 157,939 | | | | 0.15 | |
Malaysia (Rep of) 4.181%, 07/15/2024 | | MYR | | | 1,228,000 | | | | 382,835 | | | | 0.37 | |
Malaysia (Rep of) 4.392%, 04/15/2026 | | MYR | | | 430,000 | | | | 134,759 | | | | 0.13 | |
Malaysia (Rep of) 4.498%, 04/15/2030 | | MYR | | | 735,000 | | | | 231,654 | | | | 0.23 | |
| | | | | | | | | 4,732,623 | | | | 4.62 | |
See accompanying notes to the financial statements.
65
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Mexico (Cost $4,293,450) | | | | | | | | | | | | | | |
Mexican Bonos 8.500%, 05/31/2029 | | MXN | | | 7,510,000 | | | $ | 663,417 | | | | 0.65 | |
Mexican Bonos 7.750%, 05/29/2031 | | MXN | | | 15,530,000 | | | | 1,285,565 | | | | 1.25 | |
Mexican Bonos 10.000%, 11/20/2036 | | MXN | | | 6,740,000 | | | | 686,391 | | | | 0.67 | |
Mexican Bonos 8.500%, 11/18/2038 | | MXN | | | 4,920,000 | | | | 439,856 | | | | 0.43 | |
Mexican Udibonos 4.000%, 11/15/2040 | | MXN | | | 2,220,000 | | | | 939,407 | | | | 0.92 | |
Petroleos Mexicanos 7.190%, 09/12/2024 | | MXN | | | 2,540,000 | | | | 191,128 | | | | 0.19 | |
| | | | | | | | | 4,205,764 | | | | 4.11 | |
Nigeria (Cost $1,823,804) | | | | | | | | | | | | | | |
Nigeria (Rep of) 16.000%, 06/29/2019 | | NGN | | | 32,800,000 | | | | 221,274 | | | | 0.22 | |
Nigeria OMO Bill 10.060%, 11/27/2014(2) | | NGN | | | 49,600,000 | | | | 297,430 | | | | 0.29 | |
Nigeria OMO Bill 10.440%, 01/29/2015(2) | | NGN | | | 58,300,000 | | | | 343,091 | | | | 0.34 | |
Nigeria Treasury Bill 9.890%, 11/06/2014(2) | | NGN | | | 37,600,000 | | | | 226,850 | | | | 0.22 | |
Nigeria Treasury Bill 10.420%, 01/08/2015(2) | | NGN | | | 118,000,000 | | | | 699,025 | | | | 0.68 | |
| | | | | | | | | 1,787,670 | | | | 1.75 | |
Peru (Cost $1,472,987) | | | | | | | | | | | | | | |
Peru (Rep of) 5.700%, 08/12/2024 | | PEN | | | 880,000 | | | | 299,925 | | | | 0.29 | |
Peru (Rep of) 8.200%, 08/12/2026 | | PEN | | | 1,599,000 | | | | 669,578 | | | | 0.65 | |
Peru (Rep of) 6.950%, 08/12/2031 | | PEN | | | 164,000 | | | | 59,813 | | | | 0.06 | |
Peru (Rep of) 6.900%, 08/12/2037 | | PEN | | | 982,000 | | | | 353,621 | | | | 0.35 | |
Peru (Rep of) 6.850%, 02/12/2042 | | PEN | | | 174,000 | | | | 61,429 | | | | 0.06 | |
| | | | | | | | | 1,444,366 | | | | 1.41 | |
Philippines (Cost $661,975) | | | | | | | | | | | | | | |
Philippines (Rep of) 4.950%, 01/15/2021 | | PHP | | | 5,000,000 | | | | 115,376 | | | | 0.11 | |
Philippines (Rep of) 3.900%, 11/26/2022 | | PHP | | | 10,000,000 | | | | 216,713 | | | | 0.21 | |
Philippines (Rep of) 6.250%, 01/14/2036 | | PHP | | | 10,000,000 | | | | 243,677 | | | | 0.24 | |
| | | | | | | | | 575,766 | | | | 0.56 | |
Poland (Cost $3,920,213) | | | | | | | | | | | | | | |
Poland (Rep of) 3.000%, 08/24/2016 | | PLN | | | 627,000 | | | | 246,403 | | | | 0.24 | |
Poland (Rep of) 4.750%, 04/25/2017 | | PLN | | | 763,000 | | | | 242,558 | | | | 0.24 | |
Poland (Rep of) 3.250%, 07/25/2019 | | PLN | | | 1,583,000 | | | | 496,188 | | | | 0.48 | |
Poland (Rep of) 5.750%, 09/23/2022 | | PLN | | | 7,513,000 | | | | 2,769,461 | | | | 2.70 | |
Poland (Rep of) 2.750%, 08/25/2023 | | PLN | | | 374,000 | | | | 144,217 | | | | 0.14 | |
Poland (Rep of) 4.000%, 10/25/2023 | | PLN | | | 140,000 | | | | 46,658 | | | | 0.05 | |
| | | | | | | | | 3,945,485 | | | | 3.85 | |
Romania (Cost $787,823) | | | | | | | | | | | | | | |
Romania (Rep of) 5.900%, 07/26/2017 | | RON | | | 1,070,000 | | | | 331,722 | | | | 0.33 | |
Romania (Rep of) 5.600%, 11/28/2018 | | RON | | | 170,000 | | | | 53,622 | | | | 0.05 | |
Romania (Rep of) 4.750%, 06/24/2019 | | RON | | | 160,000 | | | | 48,994 | | | | 0.05 | |
Romania (Rep of) 5.750%, 04/29/2020 | | RON | | | 640,000 | | | | 205,476 | | | | 0.20 | |
Romania (Rep of) 5.950%, 06/11/2021 | | RON | | | 410,000 | | | | 132,961 | | | | 0.13 | |
| | | | | | | | | 772,775 | | | | 0.76 | |
Russian Federation (Cost $7,491,503) | | | | | | | | | | | | | | |
Russian Federal Bond - OFZ 6.900%, 08/03/2016 | | RUB | | | 9,757,000 | | | | 215,850 | | | | 0.21 | |
Russian Federal Bond - OFZ 7.400%, 04/19/2017 | | RUB | | | 22,427,000 | | | | 492,494 | | | | 0.48 | |
Russian Federal Bond - OFZ 7.400%, 06/14/2017 | | RUB | | | 19,176,000 | | | | 419,988 | | | | 0.41 | |
Russian Federal Bond - OFZ 6.200%, 01/31/2018 | | RUB | | | 22,612,000 | | | | 471,584 | | | | 0.46 | |
Russian Federal Bond - OFZ 7.500%, 03/15/2018 | | RUB | | | 30,135,000 | | | | 651,602 | | | | 0.64 | |
Russian Federal Bond - OFZ 7.500%, 02/27/2019 | | RUB | | | 7,572,000 | | | | 161,439 | | | | 0.16 | |
Russian Federal Bond - OFZ 6.700%, 05/15/2019 | | RUB | | | 10,709,000 | | | | 219,975 | | | | 0.21 | |
Russian Federal Bond - OFZ 6.800%, 12/11/2019 | | RUB | | | 12,587,000 | | | | 257,533 | | | | 0.25 | |
Russian Federal Bond - OFZ 6.400%, 05/27/2020 | | RUB | | | 15,860,000 | | | | 314,359 | | | | 0.31 | |
Russian Federal Bond - OFZ 7.600%, 04/14/2021 | | RUB | | | 38,130,000 | | | | 793,890 | | | | 0.78 | |
Russian Federal Bond - OFZ 7.600%, 07/20/2022 | | RUB | | | 6,577,000 | | | | 134,873 | | | | 0.13 | |
Russian Federal Bond - OFZ 7.000%, 01/25/2023 | | RUB | | | 20,081,000 | | | | 394,054 | | | | 0.38 | |
See accompanying notes to the financial statements.
66
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Russian Federation - (continued) | | | | | | | | | | | | | | |
Russian Federal Bond - OFZ 7.000%, 08/16/2023 | | RUB | | | 12,603,000 | | | $ | 246,579 | | | | 0.24 | |
Russian Federal Bond - OFZ 8.150%, 02/03/2027 | | RUB | | | 29,003,000 | | | | 596,106 | | | | 0.58 | |
Russian Federal Bond - OFZ 7.050%, 01/19/2028 | | RUB | | | 11,551,000 | | | | 214,583 | | | | 0.21 | |
| | | | | | | | | 5,584,909 | | | | 5.45 | |
South Africa (Cost $13,356,322) | | | | | | | | | | | | | | |
South Africa (Rep of) 8.250%, 09/15/2017 | | ZAR | | | 23,000,000 | | | | 2,166,658 | | | | 2.12 | |
South Africa (Rep of) 8.000%, 12/21/2018 | | ZAR | | | 20,250,000 | | | | 1,898,384 | | | | 1.85 | |
South Africa (Rep of) 7.750%, 02/28/2023 | | ZAR | | | 20,300,000 | | | | 1,847,103 | | | | 1.80 | |
South Africa (Rep of) 10.500%, 12/21/2026 | | ZAR | | | 16,100,000 | | | | 1,752,210 | | | | 1.71 | |
South Africa (Rep of) 8.000%, 01/31/2030 | | ZAR | | | 6,700,000 | | | | 592,626 | | | | 0.58 | |
South Africa (Rep of) 7.000%, 02/28/2031 | | ZAR | | | 24,175,000 | | | | 1,928,805 | | | | 1.88 | |
South Africa (Rep of) 6.250%, 03/31/2036 | | ZAR | | | 6,100,000 | | | | 431,036 | | | | 0.42 | |
South Africa (Rep of) 8.500%, 01/31/2037 | | ZAR | | | 3,600,000 | | | | 322,375 | | | | 0.32 | |
South Africa (Rep of) 6.500%, 02/28/2041 | | ZAR | | | 5,300,000 | | | | 373,916 | | | | 0.37 | |
South Africa (Rep of) 8.750%, 02/28/2048 | | ZAR | | | 9,000,000 | | | | 823,564 | | | | 0.80 | |
Transnet SOC Ltd. 9.500%, 05/13/2021 | | ZAR | | | 2,200,000 | | | | 201,227 | | | | 0.20 | |
| | | | | | | | | 12,337,904 | | | | 12.05 | |
Thailand (Cost $4,718,445) | | | | | | | | | | | | | | |
Thailand (Rep of) 3.875%, 06/13/2019 | | THB | | | 64,070,000 | | | | 2,068,409 | | | | 2.02 | |
Thailand (Rep of) 1.200%, 07/14/2021 | | THB | | | 18,000,000 | | | | 570,049 | | | | 0.56 | |
Thailand (Rep of) 3.650%, 12/17/2021 | | THB | | | 16,067,000 | | | | 514,013 | | | | 0.50 | |
Thailand (Rep of) 3.625%, 06/16/2023 | | THB | | | 37,407,000 | | | | 1,193,424 | | | | 1.17 | |
Thailand (Rep of) 1.250%, 03/12/2028 | | THB | | | 9,000,000 | | | | 258,125 | | | | 0.25 | |
| | | | | | | | | 4,604,020 | | | | 4.50 | |
Turkey (Cost $8,433,082) | | | | | | | | | | | | | | |
Turkey (Rep of) 8.300%, 06/20/2018 | | TRY | | | 2,045,000 | | | | 920,073 | | | | 0.90 | |
Turkey (Rep of) 10.400%, 03/27/2019 | | TRY | | | 1,550,000 | | | | 752,458 | | | | 0.73 | |
Turkey (Rep of) 4.000%, 04/01/2020 | | TRY | | | 1,117,000 | | | | 781,158 | | | | 0.76 | |
Turkey (Rep of) 9.500%, 01/12/2022 | | TRY | | | 1,260,000 | | | | 596,936 | | | | 0.58 | |
Turkey (Rep of) 3.000%, 02/23/2022 | | TRY | | | 2,415,000 | | | | 1,419,990 | | | | 1.39 | |
Turkey (Rep of) 8.500%, 09/14/2022 | | TRY | | | 1,660,000 | | | | 745,736 | | | | 0.73 | |
Turkey (Rep of) 7.100%, 03/08/2023 | | TRY | | | 2,625,000 | | | | 1,080,636 | | | | 1.05 | |
Turkey (Rep of) 8.800%, 09/27/2023 | | TRY | | | 1,765,000 | | | | 806,008 | | | | 0.79 | |
Turkey (Rep of) 10.400%, 03/20/2024 | | TRY | | | 915,000 | | | | 459,836 | | | | 0.45 | |
Turkey (Rep of) 9.000%, 07/24/2024 | | TRY | | | 700,000 | | | | 326,120 | | | | 0.32 | |
| | | | | | | | | 7,888,951 | | | | 7.70 | |
Uruguay (Cost $1,621,336) | | | | | | | | | | | | | | |
Uruguay (Rep of) 5.000%, 09/14/2018(3) | | UYU | | | 5,200,000 | | | | 425,644 | | | | 0.42 | |
Uruguay (Rep of) 4.250%, 04/05/2027 | | UYU | | | 1,929,000 | | | | 155,861 | | | | 0.15 | |
Uruguay (Rep of) 4.375%, 12/15/2028 | | UYU | | | 7,500,000 | | | | 431,043 | | | | 0.42 | |
Uruguay (Rep of) 3.700%, 06/26/2037 | | UYU | | | 3,970,000 | | | | 281,102 | | | | 0.27 | |
Uruguay Notas del Tesoro 3.250%, 01/27/2019 | | UYU | | | 700,000 | | | | 81,707 | | | | 0.08 | |
| | | | | | | | | 1,375,357 | | | | 1.34 | |
Total Debt Securities (Cost $71,278,593) | | | | | | | | | 65,653,571 | | | | 64.11 | |
| | | | |
Total Investments in Securities (Cost $71,278,593) | | | | | | | | $ | 65,653,571 | | | | 64.11 | |
See accompanying notes to the financial statements.
67
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Fully Funded Total Return Swaps | | | | | | | | | | | | | | |
| | | | |
Indonesia (Cost $4,196,591) | | | | | | | | | | | | | | |
Indonesia (Rep of) 7.875%, 04/15/2019 | | IDR | | | 2,000,000,000 | | | $ | 165,660 | | | | 0.16 | |
Indonesia (Rep of) 7.000%, 05/15/2027 | | IDR | | | 10,866,000,000 | | | | 810,117 | | | | 0.79 | |
Indonesia (Rep of), Issued by ANZ Banking Corp., 5.250%, 05/15/2018 | | IDR | | | 2,000,000,000 | | | | 152,440 | | | | 0.15 | |
Indonesia (Rep of), Issued by ANZ Banking Corp., 8.375%, 03/15/2024 | | IDR | | | 8,500,000,000 | | | | 718,473 | | | | 0.70 | |
Indonesia (Rep of), Issued by ANZ Banking Corp., 9.000%, 03/15/2029 | | IDR | | | 3,500,000,000 | | | | 304,189 | | | | 0.30 | |
Indonesia (Rep of), Issued by ANZ Banking Corp., 10.500%, 08/15/2030 | | IDR | | | 600,000,000 | | | | 58,017 | | | | 0.06 | |
Indonesia (Rep of), Issued by ANZ Banking Corp., 8.375%, 03/15/2034 | | IDR | | | 3,628,000,000 | | | | 298,106 | | | | 0.29 | |
Indonesia (Rep of), Issued by Deutsche Bank, 8.375%, 03/15/2034 | | IDR | | | 6,412,000,000 | | | | 526,861 | | | | 0.51 | |
Indonesia (Rep of), Issued by HSBC, 10.500%, 08/15/2030 | | IDR | | | 2,180,000,000 | | | | 210,795 | | | | 0.21 | |
Indonesia (Rep of), Issued by HSBC, 8.250%, 06/15/2032 | | IDR | | | 30,000,000 | | | | 2,402 | | | | — | |
Indonesia (Rep of), Issued by Standard Chartered, 8.375%, 03/15/2024 | | IDR | | | 2,600,000,000 | | | | 219,768 | | | | 0.21 | |
Indonesia (Rep of), Issued by Standard Chartered, 10.500%, 08/15/2030 | | IDR | | | 1,230,000,000 | | | | 118,935 | | | | 0.12 | |
Indonesia (Rep of), Issued by Standard Chartered, 8.375%, 03/15/2034 | | IDR | | | 4,840,000,000 | | | | 397,693 | | | | 0.39 | |
| | | | | | | | | 3,983,456 | | | | 3.89 | |
Total Fully Funded Total Return Swaps (Cost $4,196,591) | | | | | | | | | 3,983,456 | | | | 3.89 | |
| | | | |
Total Investments (Total Cost $75,475,184) | | | | | | | | | 69,637,027 | | | | 68.00 | |
| | | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for
further detail) | | | | | | | | | 32,769,820 | | | | 32.00 | |
| | | | |
Net Assets | | | | | | | | $ | 102,406,847 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | Zero coupon bond reflects effective yield on the date of purchase. |
| (3) | Security determined to be illiquid by the Investment Manager. |
Percentages shown are based on net assets.
At October 31, 2014, the Ashmore Emerging Markets Local Currency Bond Fund had outstanding forward foreign currency exchange contracts as follows:
See accompanying notes to the financial statements.
68
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | | | | | |
Settlement
Date | | Counterparty | | Currency Buy | | Currency Buy Amount (Local
Currency) | | | Currency Sell | | Currency Sell Amount (Local
Currency) | | | Unrealized Gain/(Loss) | |
11/04/2014 | | Barclays Wholesale GTS | | Brazilian Real | | | 1,264,800 | | | United States Dollar | | | 510,000 | | | $ | (192) | |
11/04/2014 | | Barclays Wholesale GTS | | Brazilian Real | | | 203,478 | | | United States Dollar | | | 83,256 | | | | (1,240) | |
11/04/2014 | | Barclays Wholesale GTS | | Brazilian Real | | | 16,544,812 | | | United States Dollar | | | 6,790,680 | | | | (121,901) | |
11/04/2014 | | BNP Paris | | Brazilian Real | | | 4,463,973 | | | United States Dollar | | | 1,805,000 | | | | (5,690) | |
11/04/2014 | | Goldman Sachs Intl Ltd. London | | Brazilian Real | | | 988,930 | | | United States Dollar | | | 400,000 | | | | (1,388) | |
11/04/2014 | | Goldman Sachs Intl Ltd. London | | Brazilian Real | | | 3,099,525 | | | United States Dollar | | | 1,275,000 | | | | (25,663) | |
11/04/2014 | | Merrill Lynch International | | Brazilian Real | | | 2,110,580 | | | United States Dollar | | | 874,917 | | | | (24,198) | |
11/04/2014 | | Union Bank of Switzerland - London | | Brazilian Real | | | 1,940,648 | | | United States Dollar | | | 795,263 | | | | (13,039) | |
11/04/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 5,098,876 | | | Brazilian Real | | | 12,793,081 | | | | (57,679) | |
11/04/2014 | | CSFB Global Foreign Exchange London | | United States Dollar | | | 2,080,000 | | | Brazilian Real | | | 5,030,584 | | | | 52,304 | |
11/04/2014 | | JP Morgan | | United States Dollar | | | 5,041,608 | | | Brazilian Real | | | 12,793,081 | | | | (114,947) | |
11/10/2014 | | Deutsche Bank London | | Peruvian Neuvo Sol | | | 440,839 | | | United States Dollar | | | 150,534 | | | | 105 | |
11/10/2014 | | Morgan Stanley & Co. International | | Peruvian Neuvo Sol | | | 380,209 | | | United States Dollar | | | 129,631 | | | | 290 | |
11/28/2014 | | Merrill Lynch International | | Euro | | | 1,616,881 | | | United States Dollar | | | 2,052,000 | | | | (25,443) | |
11/28/2014 | | Barclays Wholesale GTS | | Hungarian Forint | | | 194,635,600 | | | United States Dollar | | | 800,000 | | | | (8,963) | |
11/28/2014 | | Merrill Lynch International | | Hungarian Forint | | | 31,878,600 | | | United States Dollar | | | 130,000 | | | | (439) | |
11/28/2014 | | ANZ Banking Corp. Melbourne | | Indian Rupee | | | 30,124,200 | | | United States Dollar | | | 485,561 | | | | 3,352 | |
11/28/2014 | | Deutsche Bank London | | Indian Rupee | | | 15,662,423 | | | United States Dollar | | | 254,136 | | | | 63 | |
11/28/2014 | | Deutsche Bank London | | Malaysian Ringgit | | | 6,031,273 | | | United States Dollar | | | 1,883,596 | | | | (65,048) | |
11/28/2014 | | ANZ Banking Corp. Melbourne | | Philippine Peso | | | 32,248,700 | | | United States Dollar | | | 720,239 | | | | (3,602) | |
11/28/2014 | | ANZ Banking Corp. Melbourne | | Philippine Peso | | | 20,879,000 | | | United States Dollar | | | 469,117 | | | | (5,140) | |
11/28/2014 | | HSBC Bank PLC | | Polish Zloty | | | 505,845 | | | United States Dollar | | | 150,000 | | | | (55) | |
11/28/2014 | | Union Bank of Switzerland - London | | Polish Zloty | | | 4,075,299 | | | United States Dollar | | | 1,279,930 | | | | (71,914) | |
11/28/2014 | | Morgan Stanley & Co. International | | Russian Ruble | | | 1,101,562 | | | United States Dollar | | | 29,833 | | | | (4,425) | |
11/28/2014 | | Citibank London | | South African Rand | | | 5,535,255 | | | United States Dollar | | | 490,000 | | | | 9,553 | |
11/28/2014 | | ANZ Banking Corp. Melbourne | | Thai Baht | | | 20,485,000 | | | United States Dollar | | | 632,839 | | | | (4,687) | |
11/28/2014 | | Barclays Wholesale GTS | | Thai Baht | | | 9,041,388 | | | United States Dollar | | | 282,543 | | | | (5,298) | |
11/28/2014 | | BNP Paris | | Thai Baht | | | 10,019,200 | | | United States Dollar | | | 313,198 | | | | (5,969) | |
11/28/2014 | | Goldman Sachs Intl Ltd. London | | Thai Baht | | | 15,872,800 | | | United States Dollar | | | 495,715 | | | | (8,992) | |
11/28/2014 | | HSBC Bank PLC | | Turkish Lira | | | 999,951 | | | United States Dollar | | | 449,376 | | | | (2,364) | |
11/28/2014 | | JP Morgan | | Turkish Lira | | | 2,224,628 | | | United States Dollar | | | 1,000,000 | | | | (5,517) | |
11/28/2014 | | Citibank London | | United States Dollar | | | 2,873,763 | | | Euro | | | 2,190,066 | | | | 128,791 | |
11/28/2014 | | Citibank London | | United States Dollar | | | 666,297 | | | Euro | | | 507,621 | | | | 30,058 | |
11/28/2014 | | Merrill Lynch International | | United States Dollar | | | 1,054,256 | | | Euro | | | 800,000 | | | | 51,557 | |
11/28/2014 | | Merrill Lynch International | | United States Dollar | | | 981,018 | | | Euro | | | 745,103 | | | | 47,125 | |
11/28/2014 | | Morgan Stanley & Co. International | | United States Dollar | | | 1,052,427 | | | Euro | | | 825,543 | | | | 17,713 | |
11/28/2014 | | Morgan Stanley & Co. International | | United States Dollar | | | 208,292 | | | Euro | | | 166,383 | | | | (248) | |
11/28/2014 | | Union Bank of Switzerland - London | | United States Dollar | | | 3,635,025 | | | Euro | | | 2,769,589 | | | | 163,694 | |
11/28/2014 | | BNP Paris | | United States Dollar | �� | | 347,973 | | | Indonesian Rupiah | | | 4,285,287,470 | | | | (5,529) | |
11/28/2014 | | CSFB Global Foreign Exchange London | | United States Dollar | | | 1,222,236 | | | South African Rand | | | 13,469,040 | | | | 6,664 | |
11/28/2014 | | Goldman Sachs Intl Ltd. London | | United States Dollar | | | 600,000 | | | South African Rand | | | 6,544,620 | | | | 9,352 | |
11/28/2014 | | Union Bank of Switzerland - London | | United States Dollar | | | 110,119 | | | South African Rand | | | 1,195,822 | | | | 2,196 | |
11/28/2014 | | Citibank London | | United States Dollar | | | 690,000 | | | Turkish Lira | | | 1,582,384 | | | | (17,378) | |
12/02/2014 | | Barclays Wholesale GTS | | Brazilian Real | | | 12,793,081 | | | United States Dollar | | | 5,058,753 | | | | 54,001 | |
12/02/2014 | | CSFB Global Foreign Exchange London | | Brazilian Real | | | 679,351 | | | United States Dollar | | | 276,170 | | | | (4,668) | |
12/02/2014 | | JP Morgan | | Brazilian Real | | | 12,793,081 | | | United States Dollar | | | 5,002,084 | | | | 110,669 | |
12/19/2014 | | Morgan Stanley & Co. International | | Russian Ruble | | | 3,702,097 | | | United States Dollar | | | 94,550 | | | | (9,815) | |
12/30/2014 | | Barclays Wholesale GTS | | Thai Baht | | | 6,085,844 | | | United States Dollar | | | 187,759 | | | | (1,423) | |
12/30/2014 | | Goldman Sachs Intl Ltd. London | | Thai Baht | | | 15,531,300 | | | United States Dollar | | | 475,909 | | | | (372) | |
12/30/2014 | | Goldman Sachs Intl Ltd. London | | Thai Baht | | | 23,150,700 | | | United States Dollar | | | 714,021 | | | | (5,192) | |
12/30/2014 | | JP Morgan | | Thai Baht | | | 13,490,300 | | | United States Dollar | | | 413,242 | | | | (196) | |
12/31/2014 | | BNP Paris | | Indian Rupee | | | 31,476,000 | | | United States Dollar | | | 508,662 | | | | (409) | |
12/31/2014 | | Citibank London | | Indian Rupee | | | 21,082,770 | | | United States Dollar | | | 340,567 | | | | (136) | |
12/31/2014 | | Union Bank of Switzerland - London | | Malaysian Ringgit | | | 6,400,000 | | | United States Dollar | | | 1,962,588 | | | | (38,316) | |
01/30/2015 | | Santander | | Chilean Peso | | | 1,179,500,000 | | | United States Dollar | | | 1,951,522 | | | | 81,204 | |
01/30/2015 | | Santander | | Chilean Peso | | | 13,805,081 | | | United States Dollar | | | 23,452 | | | | 339 | |
01/30/2015 | | CSFB Global Foreign Exchange London | | Colombian Peso | | | 884,318,750 | | | United States Dollar | | | 425,000 | | | | 829 | |
01/30/2015 | | JP Morgan | | Colombian Peso | | | 3,707,713,273 | | | United States Dollar | | | 1,790,950 | | | | (5,563) | |
See accompanying notes to the financial statements.
69
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | | | | | |
Settlement
Date | | Counterparty | | Currency Buy | | Currency
Buy
Amount
(Local
Currency) | | | Currency Sell | | Currency
Sell Amount
(Local
Currency) | | | Unrealized
Gain/(Loss) | |
01/30/2015 | | Goldman Sachs Intl Ltd. London | | Hungarian Forint | | | 502,014,456 | | | United States Dollar | | | 2,057,209 | | | $ | (19,769) | |
01/30/2015 | | Barclays Wholesale GTS | | Indian Rupee | | | 7,497,357 | | | United States Dollar | | | 120,828 | | | | (341) | |
01/30/2015 | | Goldman Sachs Intl Ltd. London | | Indian Rupee | | | 7,254,100 | | | United States Dollar | | | 115,908 | | | | 670 | |
01/30/2015 | | Merrill Lynch International | | Indian Rupee | | | 7,048,000 | | | United States Dollar | | | 113,458 | | | | (192) | |
01/30/2015 | | BNP Paris | | Malaysian Ringgit | | | 1,419,215 | | | United States Dollar | | | 430,000 | | | | (4,183) | |
01/30/2015 | | BNP Paris | | Malaysian Ringgit | | | 4,466,244 | | | United States Dollar | | | 1,353,961 | | | | (13,921) | |
01/30/2015 | | Deutsche Bank London | | Mexican Peso | | | 21,886,801 | | | United States Dollar | | | 1,606,783 | | | | 9,655 | |
01/30/2015 | | HSBC Bank PLC | | Mexican Peso | | | 34,807,379 | | | United States Dollar | | | 2,557,918 | | | | 12,764 | |
01/30/2015 | | Morgan Stanley & Co. International | | Mexican Peso | | | 54,421,154 | | | United States Dollar | | | 3,991,928 | | | | 27,320 | |
01/30/2015 | | BNP Paris | | Peruvian Neuvo Sol | | | 14,802 | | | United States Dollar | | | 5,041 | | | | (30) | |
01/30/2015 | | Deutsche Bank London | | Peruvian Neuvo Sol | | | 108,050 | | | United States Dollar | | | 36,590 | | | | (10) | |
01/30/2015 | | Deutsche Bank London | | Peruvian Neuvo Sol | | | 163,684 | | | United States Dollar | | | 55,430 | | | | (15) | |
01/30/2015 | | Deutsche Bank London | | Philippine Peso | | | 14,593,600 | | | United States Dollar | | | 325,278 | | | | (1,403) | |
01/30/2015 | | Union Bank of Switzerland - London | | Philippine Peso | | | 15,762,158 | | | United States Dollar | | | 351,598 | | | | (1,790) | |
01/30/2015 | | Deutsche Bank London | | Polish Zloty | | | 7,737,817 | | | United States Dollar | | | 2,316,107 | | | | (28,276) | |
01/30/2015 | | Merrill Lynch International | | Polish Zloty | | | 7,737,817 | | | United States Dollar | | | 2,316,573 | | | | (28,742) | |
01/30/2015 | | Merrill Lynch Capital Markets | | Romanian Leu | | | 1,021,960 | | | United States Dollar | | | 290,000 | | | | (619) | |
01/30/2015 | | Merrill Lynch Capital Markets | | Romanian Leu | | | 5,238,018 | | | United States Dollar | | | 1,493,802 | | | | (10,593) | |
01/30/2015 | | JP Morgan | | Russian Ruble | | | 26,230,571 | | | United States Dollar | | | 610,581 | | | | (15,246) | |
01/30/2015 | | BNP Paris | | Thai Baht | | | 11,203,306 | | | United States Dollar | | | 345,036 | | | | (2,467) | |
01/30/2015 | | Goldman Sachs Intl Ltd. London | | Thai Baht | | | 15,625,200 | | | United States Dollar | | | 482,408 | | | | (4,629) | |
01/30/2015 | | Morgan Stanley & Co. International | | Turkish Lira | | | 1,729,805 | | | United States Dollar | | | 770,000 | | | | (7,288) | |
01/30/2015 | | Union Bank of Switzerland - London | | Turkish Lira | | | 1,983,153 | | | United States Dollar | | | 873,559 | | | | 861 | |
03/04/2015 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 3,747,600 | | | United States Dollar | | | 600,000 | | | | 5,657 | |
03/04/2015 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 11,149,600 | | | United States Dollar | | | 1,810,000 | | | | (8,092) | |
03/04/2015 | | HSBC Bank PLC | | United States Dollar | | | 771,875 | | | Chinese Offshore Yuan | | | 4,797,200 | | | | (3,410) | |
03/04/2015 | | HSBC Bank PLC | | United States Dollar | | | 1,623,664 | | | Chinese Offshore Yuan | | | 10,100,000 | | | | (8,616) | |
03/19/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 7,899,790 | | | United States Dollar | | | 1,267,821 | | | | 7,551 | |
03/19/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 3,268,774 | | | United States Dollar | | | 523,548 | | | | 4,175 | |
03/19/2015 | | Standard Chartered London | | United States Dollar | | | 1,794,868 | | | Chinese Offshore Yuan | | | 11,168,564 | | | | (8,227) | |
04/13/2015 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 7,218,720 | | | United States Dollar | | | 1,080,000 | | | | 83,393 | |
04/13/2015 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 8,846,915 | | | United States Dollar | | | 1,349,129 | | | | 76,669 | |
04/13/2015 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 22,111 | | | United States Dollar | | | 3,374 | | | | 190 | |
04/13/2015 | | HSBC Bank PLC | | United States Dollar | | | 670,000 | | | Chinese Offshore Yuan | | | 4,330,210 | | | | (27,871) | |
04/13/2015 | | HSBC Bank PLC | | United States Dollar | | | 670,000 | | | Chinese Offshore Yuan | | | 4,343,945 | | | | (30,085) | |
04/13/2015 | | HSBC Bank PLC | | United States Dollar | | | 1,130,000 | | | Chinese Offshore Yuan | | | 7,413,591 | | | | (64,799) | |
05/04/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 7,307,150 | | | United States Dollar | | | 1,113,895 | | | | 62,065 | |
05/04/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 1,413,570 | | | United States Dollar | | | 213,337 | | | | 14,153 | |
05/04/2015 | | Standard Chartered London | | United States Dollar | | | 1,340,000 | | | Chinese Offshore Yuan | | | 8,720,720 | | | | (63,450) | |
07/17/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 4,780,030 | | | United States Dollar | | | 719,234 | | | | 46,409 | |
07/17/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 125,800 | | | United States Dollar | | | 19,129 | | | | 1,021 | |
07/17/2015 | | Standard Chartered London | | United States Dollar | | | 740,000 | | | Chinese Offshore Yuan | | | 4,905,830 | | | | (45,793) | |
03/06/2017 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 5,017,910 | | | United States Dollar | | | 788,298 | | | | (2,945) | |
03/06/2017 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 10,100,000 | | | United States Dollar | | | 1,584,687 | | | | (3,936) | |
03/06/2017 | | HSBC Bank PLC | | United States Dollar | | | 1,810,000 | | | Chinese Offshore Yuan | | | 11,296,210 | | | | 42,031 | |
03/06/2017 | | HSBC Bank PLC | | United States Dollar | | | 600,000 | | | Chinese Offshore Yuan | | | 3,821,700 | | | | 1,866 | |
03/20/2017 | | Standard Chartered London | | Chinese Offshore Yuan | | | 11,312,741 | | | United States Dollar | | | 1,773,852 | | | | (3,766) | |
03/20/2017 | | Standard Chartered London | | United States Dollar | | | 1,267,821 | | | Chinese Offshore Yuan | | | 7,998,680 | | | | 16,280 | |
03/20/2017 | | Standard Chartered London | | United States Dollar | | | 523,548 | | | Chinese Offshore Yuan | | | 3,314,060 | | | | 5,003 | |
| | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | $ | 104,050 | |
| | | | | | | | | | | | | | | | | | |
See accompanying notes to the financial statements.
70
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
At October 31, 2014, the Ashmore Emerging Markets Local Currency Bond Fund had the following interest rate swap contracts outstanding:
| | | | | | | | | | | | | | | | | | | | |
Pay Rate Index/ Pay Rate | | Receive Rate/
Receive Rate Index | | | | | Notional
Amount | | | Expiration
Date | | | Unrealized
Gain/(Loss) | | | Counterparty |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 12.450% | | | BRL | | | | 10,513,108 | | | | 01/02/2017 | | | $ | 57,184 | | | HSBC |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 12.285% | | | BRL | | | | 1,462,989 | | | | 01/02/2017 | | | | 4,986 | | | HSBC |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 11.770% | | | BRL | | | | 6,783,262 | | | | 01/04/2021 | | | | 16,729 | | | HSBC |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 11.705% | | | BRL | | | | 1,168,797 | | | | 01/04/2021 | | | | 974 | | | HSBC |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 11.200% | | | BRL | | | | 3,472,921 | | | | 01/02/2017 | | | | (27,254 | ) | | HSBC |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 11.415% | | | BRL | | | | 1,398,782 | | | | 01/04/2021 | | | | (8,831 | ) | | HSBC |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 11.635% | | | BRL | | | | 1,090,913 | | | | 01/04/2021 | | | | (1,364 | ) | | HSBC |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 11.520% | | | BRL | | | | 2,773,282 | | | | 01/02/2017 | | | | (14,121 | ) | | HSBC |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 12.000% | | | BRL | | | | 3,996,259 | | | | 01/04/2021 | | | | 26,695 | | | HSBC |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 11.250% | | | BRL | | | | 2,320,998 | | | | 01/04/2021 | | | | (23,880 | ) | | HSBC |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 11.490% | | | BRL | | | | 1,633,473 | | | | 01/04/2021 | | | | (8,188 | ) | | HSBC |
MXN-TIIE-BANXICO 28 | | | | | | | | | | | | | | | | | | | | |
Day Rate | | 6.285% | | | MXN | | | | 42,000,000 | | | | 05/03/2024 | | | | 46,074 | | | HSBC |
MXN-TIIE-BANXICO 28 | | | | | | | | | | | | | | | | | | | | |
Day Rate | | 6.100% | | | MXN | | | | 5,070,000 | | | | 07/30/2024 | | | | 516 | | | HSBC
Barclays |
MYR-KLIBOR-BNM 3 Month | | 3.725% | | | MYR | | | | 1,300,000 | | | | 04/09/2023 | | | | (11,075 | ) | | Capital |
WIBOR Poland 6 Month | | 3.655% | | | PLN | | | | 1,800,000 | | | | 02/26/2019 | | | | 49,980 | | | HSBC |
WIBOR Poland 6 Month | | 3.560% | | | PLN | | | | 800,000 | | | | 04/01/2019 | | | | 21,409 | | | HSBC |
WIBOR Poland 6 Month | | 3.570% | | | PLN | | | | 1,000,000 | | | | 04/03/2019 | | | | 26,966 | | | HSBC |
WIBOR Poland 6 Month | | 3.865% | | | PLN | | | | 550,000 | | | | 02/22/2023 | | | | 24,051 | | | HSBC |
Johannesburg Interbank | | | | | | | | | | | | | | | | | | | | Morgan |
Agreed Rate 3 Month | | 6.925% | | | ZAR | | | | 32,000,000 | | | | 08/15/2017 | | | | 12,404 | | | Stanley |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | $193,255 | | | |
| | | | | | | | | | | | | | | | | | | | |
At October 31, 2014, the Ashmore Emerging Markets Local Currency Bond Fund had the following centrally cleared swap contracts outstanding:
| | | | | | | | | | | | | | | | | | |
Pay Rate Index/ Pay Rate | | Receive Rate/ Receive Rate Index | | | | Notional
Amount | | | Expiration
Date | | | Variable
Margin
Payables | | | Counterparty |
3.250% | | WIBOR Poland 6 Month | | PLN | | | 250,000 | | | | 12/07/2017 | | | | $ (4,647) | | | HSBC |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ (4,647) | | | |
| | | | | | | | | | | | | | | | | | |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities and other financial instruments, if any. See note 4 in the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. The following is a summary of the inputs used in valuing the Ashmore Emerging Markets Local Currency Bond Fund’s investments and other financial instruments, which are carried at fair value, as of October 31, 2014:
See accompanying notes to the financial statements.
71
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Debt Securities | | | | | | | | | | | | | | | | |
Government Bonds | | | $ — | | | $ | 59,526,510 | | | | $ — | | | $ | 59,526,510 | |
Index Linked Government Bonds | | | — | | | | 5,734,706 | | | | — | | | | 5,734,706 | |
Corporate Bonds | | | — | | | | 392,355 | | | | — | | | | 392,355 | |
| | | | | | | | | | | | | | | | |
Total Debt Securities | | | — | | | | 65,653,571 | | | | — | | | | 65,653,571 | |
Fully Funded Total Return Swaps | | | — | | | | 3,983,456 | | | | — | | | | 3,983,456 | |
| |
Total Investments | | | $ — | | | $ | 69,637,027 | | | | $ — | | | $ | 69,637,027 | |
| |
| | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | $ — | | | $ | 1,187,592 | | | | $ — | | | $ | 1,187,592 | |
Interest Rate Swap Contracts | | | — | | | | 287,968 | | | | — | | | | 287,968 | |
Liabilities: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | — | | | | (1,083,542 | ) | | | — | | | | (1,083,542 | ) |
Interest Rate Swap Contracts | | | — | | | | (94,713 | ) | | | — | | | | (94,713 | ) |
Centrally Cleared Swap Contracts | | | — | | | | (4,647 | ) | | | — | | | | (4,647 | ) |
| |
Total Other Financial Instruments | | | $ — | | | $ | 292,658 | | | | $ — | | | $ | 292,658 | |
| |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2014, there were no transfers between Level 1, Level 2 and Level 3 based on levels assigned to the securities on October 31, 2013. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.
The following is a summary of the fair values of the Fund’s derivative instruments*:
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of October 31, 2014:
| | | | | | | | |
| | | Derivatives Not Accounted
for as Hedging Instruments | |
| | | Foreign Exchange | | | Interest Rate | |
| |
Assets: | | | | | | | | |
Unrealized Appreciation on Interest Rate Swap Contracts | | $ | — | | | $ | 287,968 | |
Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | | 1,187,592 | | | | — | |
| | | | |
| | $ | 1,187,592 | | | $ | 287,968 | |
| | | | |
Liabilities: | | | | | | | | |
Unrealized Depreciation on Interest Rate Swap Contracts | | $ | — | | | $ | (94,713 | ) |
Variable Margin Payables on Centrally Cleared Swap Contracts | | | — | | | | (4,647 | ) |
Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | | | (1,083,542 | ) | | | — | |
| | | | |
| | $ | (1,083,542 | ) | | $ | (99,360 | ) |
| | | | |
See accompanying notes to the financial statements.
72
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
The Effect of Financial Derivative Instruments on the Statements of Operations for the Year Ended October 31, 2014:
| | | | | | | | |
| | | Derivatives Not Accounted for as
Hedging Instruments | |
| | | Foreign Exchange | | | Interest Rate | |
| |
Realized Gain (Loss) on Derivatives Recognized resulting from Operations: | | | | | | | | |
Net Realized Loss on Forward Foreign Currency Exchange Contracts | | | $ (627,142 | ) | | $ | — | |
Net Realized Loss on Options Contracts | | | — | | | | (60,630 | ) |
Net Realized Loss on Interest Rate Swap Contracts | | | — | | | | (46,948 | ) |
| | | | |
| | | $ (627,142 | ) | | $ | (107,578 | ) |
| | | | |
| | |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives
Recognized resulting from Operations: | | | | | | | | |
Net Change in Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | | $ 67,657 | | | $ | — | |
Net Change in Unrealized Appreciation on Options Contracts | | | — | | | | 60,589 | |
Net Change in Unrealized Appreciation on Interest Rate Swap Contracts | | | — | | | | 331,266 | |
| | | | |
| | | $ 67,657 | | | $ | 391,855 | |
| | | | |
* See note 10 in the Notes to the Financial Statements for additional information.
At October 31, 2014, for U.S. federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation/(depreciation) on investments in securities (including the effects of foreign currency translation) and the cost basis of investments were as follows:
| | | | |
Federal tax cost of investments | | $ | 75,829,630 | |
| |
Gross tax appreciation of investments | | | 175,523 | |
Gross tax depreciation of investments | | | (6,368,126 | ) |
| |
Net tax depreciation of investments | | $ | (6,192,603 | ) |
| |
The difference between book basis and tax basis net unrealized appreciation or depreciation is attributable primarily to the tax deferral of losses on wash sales.
See accompanying notes to the financial statements.
73
ASHMORE EMERGING MARKETS CURRENCY FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Debt Securities | | | | | | | | | | | | | | |
| | | | |
Brazil (Cost $1,003,147) | | | | | | | | | | | | | | |
Brazil Letras do Tesouro Nacional 10.327%, 01/01/2016(2) | | BRL | | | 770,000 | | | $ | 271,635 | | | | 2.82 | |
Brazil Letras do Tesouro Nacional 9.755%, 01/01/2017(2) | | BRL | | | 710,000 | | | | 222,862 | | | | 2.32 | |
Brazil Notas do Tesouro Nacional | | BRL | | | 313,000 | | | | 115,522 | | | | 1.20 | |
Serie F 10.000%, 01/01/2021 | | | | | | | | | | | | | | |
Brazil Notas do Tesouro Nacional | | BRL | | | 520,000 | | | | 188,480 | | | | 1.96 | |
Serie F 10.000%, 01/01/2023 | | | | | | | | | | | | | | |
Brazil Notas do Tesouro Nacional | | BRL | | | 373,000 | | | | 133,310 | | | | 1.39 | |
Serie F 10.000%, 01/01/2025 | | | | | | | | | | | | | | |
| | | | | | | | | 931,809 | | | | 9.69 | |
Colombia (Cost $112,153) | | | | | | | | | | | | | | |
Colombian TES 8.000%, 10/28/2015 | | COP | | | 155,700,000 | | | | 78,036 | | | | 0.81 | |
Colombian TES 6.000%, 04/28/2028 | | COP | | | 60,000,000 | | | | 26,547 | | | | 0.28 | |
| | | | | | | | | 104,583 | | | | 1.09 | |
Mexico (Cost $688,991) | | | | | | | | | | | | | | |
Mexican Bonos 6.000%, 06/18/2015 | | MXN | | | 3,980,000 | | | | 300,664 | | | | 3.13 | |
Mexican Bonos 7.750%, 05/29/2031 | | MXN | | | 340,000 | | | | 28,145 | | | | 0.29 | |
Mexican Udibonos 5.000%, 06/16/2016 | | MXN | | | 720,000 | | | | 300,427 | | | | 3.12 | |
Mexican Udibonos 4.000%, 11/15/2040 | | MXN | | | 110,000 | | | | 46,548 | | | | 0.49 | |
| | | | | | | | | 675,784 | | | | 7.03 | |
Romania (Cost $147,284) | | | | | | | | | | | | | | |
Romania Government Bond 6.000%, 04/30/2015 | | RON | | | 290,000 | | | | 83,877 | | | | 0.87 | |
Romania Government Bond 5.800%, 10/26/2015 | | RON | | | 80,000 | | | | 23,546 | | | | 0.24 | |
Romania Government Bond 5.900%, 07/26/2017 | | RON | | | 70,000 | | | | 21,701 | | | | 0.23 | |
Romania Government Bond 5.600%, 11/28/2018 | | RON | | | 30,000 | | | | 9,463 | | | | 0.10 | |
| | | | | | | | | 138,587 | | | | 1.44 | |
South Africa (Cost $165,931) | | | | | | | | | | | | | | |
South Africa (Rep of) 8.250%, 09/15/2017 | | ZAR | | | 1,710,000 | | | | 161,086 | | | | 1.67 | |
| | | | | | | | | 161,086 | | | | 1.67 | |
Uruguay (Cost $145,015) | | | | | | | | | | | | | | |
Uruguay (Rep of) 5.000%, 09/14/2018(3) | | UYU | | | 50,000 | | | | 4,093 | | | | 0.04 | |
Uruguay (Rep of) 4.250%, 04/05/2027 | | UYU | | | 1,640,000 | | | | 132,510 | | | | 1.38 | |
| | | | | | | | | 136,603 | | | | 1.42 | |
Total Debt Securities (Cost $2,262,521) | | | | | | | | | 2,148,452 | | | | 22.34 | |
| | | | |
Total Investments (Total Cost $2,262,521) | | | | | | | | | 2,148,452 | | | | 22.34 | |
| | | | |
Other Assets Less Liabilities (See statements of Assets and Liabilities for further detail) | | | | | | | | | 7,470,120 | | | | 77.66 | |
| | | | |
Net Assets | | | | | | | | $ | 9,618,572 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | Zero coupon bond reflects effective yield on the date of purchase. |
| (3) | Security determined to be illiquid by the Investment Manager. |
Percentages shown are based on net assets.
See accompanying notes to the financial statements.
74
ASHMORE EMERGING MARKETS CURRENCY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
At October 31, 2014, the Ashmore Emerging Markets Currency Fund had outstanding forward foreign currency exchange contracts as follows:
| | | | | | | | | | | | | | | | | | |
Settlement
Date | | Counterparty | | Currency Buy | | Currency Buy
Amount
(Local
Currency) | | | Currency Sell | | Currency Sell
Amount
(Local
Currency) | | | Unrealized Gain/(Loss) | |
11/04/2014 | | Barclays Wholesale GTS | | Brazilian Real | | | 31,080 | | | United States Dollar | | | 12,387 | | | $ | 140 | |
11/04/2014 | | Barclays Wholesale GTS | | Brazilian Real | | | 20,820 | | | United States Dollar | | | 8,519 | | | | (127) | |
11/04/2014 | | BNP Paris | | Brazilian Real | | | 370,967 | | | United States Dollar | | | 150,000 | | | | (473) | |
11/04/2014 | | Goldman Sachs Intl Ltd. London | | Brazilian Real | | | 316,030 | | | United States Dollar | | | 130,000 | | | | (2,617) | |
11/04/2014 | | JP Morgan | | Brazilian Real | | | 31,080 | | | United States Dollar | | | 12,248 | | | | 279 | |
11/04/2014 | | Merrill Lynch International | | Brazilian Real | | | 229,149 | | | United States Dollar | | | 94,991 | | | | (2,627) | |
11/04/2014 | | Morgan Stanley & Co. International | | Brazilian Real | | | 43,001 | | | United States Dollar | | | 17,130 | | | | 203 | |
11/04/2014 | | Union Bank of Switzerland - London | | Brazilian Real | | | 198,576 | | | United States Dollar | | | 81,375 | | | | (1,334) | |
11/04/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 226,851 | | | Brazilian Real | | | 552,700 | | | | 4,072 | |
11/04/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 92,129 | | | Brazilian Real | | | 228,480 | | | | 35 | |
11/04/2014 | | CSFB Global Foreign Exchange London | | United States Dollar | | | 190,000 | | | Brazilian Real | | | 459,525 | | | | 4,778 | |
11/10/2014 | | Merrill Lynch International | | Peruvian Neuvo Sol | | | 235,811 | | | United States Dollar | | | 80,647 | | | | (68) | |
11/28/2014 | | Merrill Lynch International | | Euro | | | 156,015 | | | United States Dollar | | | 198,000 | | | | (2,455) | |
11/28/2014 | | Morgan Stanley & Co. International | | Euro | | | 177,623 | | | United States Dollar | | | 226,439 | | | | (3,811) | |
11/28/2014 | | Barclays Wholesale GTS | | Hungarian Forint | | | 17,030,615 | | | United States Dollar | | | 70,000 | | | | (784) | |
11/28/2014 | | ANZ Banking Corp. Melbourne | | Indian Rupee | | | 4,552,940 | | | United States Dollar | | | 73,387 | | | | 507 | |
11/28/2014 | | Deutsche Bank London | | Indian Rupee | | | 2,367,215 | | | United States Dollar | | | 38,410 | | | | 10 | |
11/28/2014 | | BNP Paris | | Indonesian Rupiah | | | 4,665,501,157 | | | United States Dollar | | | 378,847 | | | | 6,019 | |
11/28/2014 | | Barclays Wholesale GTS | | Korean Won | | | 763,488,033 | | | United States Dollar | | | 736,247 | | | | (26,182) | |
11/28/2014 | | Merrill Lynch International | | Korean Won | | | 242,383,000 | | | United States Dollar | | | 227,735 | | | | (2,312) | |
11/28/2014 | | Union Bank of Switzerland - London | | Korean Won | | | 25,365,760 | | | United States Dollar | | | 23,840 | | | | (249) | |
11/28/2014 | | Deutsche Bank London | | Malaysian Ringgit | | | 202,265 | | | United States Dollar | | | 63,168 | | | | (2,181) | |
11/28/2014 | | JP Morgan | | Malaysian Ringgit | | | 12,046 | | | United States Dollar | | | 3,690 | | | | (58) | |
11/28/2014 | | ANZ Banking Corp. Melbourne | | Philippine Peso | | | 5,676,500 | | | United States Dollar | | | 126,778 | | | | (634) | |
11/28/2014 | | ANZ Banking Corp. Melbourne | | Philippine Peso | | | 3,459,000 | | | United States Dollar | | | 77,718 | | | | (851) | |
11/28/2014 | | HSBC Bank PLC | | Polish Zloty | | | 106,494 | | | United States Dollar | | | 33,447 | | | | (1,879) | |
11/28/2014 | | Merrill Lynch Capital Markets | | Polish Zloty | | | 32,784 | | | United States Dollar | | | 10,000 | | | | (282) | |
11/28/2014 | | Morgan Stanley & Co. International | | Russian Ruble | | | 6,788,365 | | | United States Dollar | | | 183,847 | | | | (27,271) | |
11/28/2014 | | Deutsche Bank London | | Singapore Dollar | | | 5,600 | | | United States Dollar | | | 4,400 | | | | (42) | |
11/28/2014 | | Deutsche Bank London | | Singapore Dollar | | | 1,030,558 | | | United States Dollar | | | 815,606 | | | | (13,550) | |
11/28/2014 | | Citibank London | | South African Rand | | | 564,822 | | | United States Dollar | | | 50,000 | | | | 975 | |
11/28/2014 | | CSFB Global Foreign Exchange London | | South African Rand | | | 1,030,540 | | | United States Dollar | | | 93,515 | | | | (510) | |
11/28/2014 | | Union Bank of Switzerland - London | | South African Rand | | | 129,907 | | | United States Dollar | | | 11,963 | | | | (239) | |
11/28/2014 | | JP Morgan | | Taiwan Dollar | | | 123,047 | | | United States Dollar | | | 4,050 | | | | (12) | |
11/28/2014 | | HSBC Bank PLC | | Taiwan Dollar | | | 7,480,102 | | | United States Dollar | | | 247,645 | | | | (2,144) | |
11/28/2014 | | ANZ Banking Corp. Melbourne | | Thai Baht | | | 3,680,000 | | | United States Dollar | | | 113,686 | | | | (842) | |
11/28/2014 | | Barclays Wholesale GTS | | Thai Baht | | | 868,705 | | | United States Dollar | | | 27,147 | | | | (509) | |
11/28/2014 | | BNP Paris | | Thai Baht | | | 962,600 | | | United States Dollar | | | 30,091 | | | | (573) | |
11/28/2014 | | Goldman Sachs Intl Ltd. London | | Thai Baht | | | 1,525,000 | | | United States Dollar | | | 47,626 | | | | (864) | |
11/28/2014 | | Union Bank of Switzerland - London | | Thai Baht | | | 272,444 | | | United States Dollar | | | 8,370 | | | | (16) | |
11/28/2014 | | HSBC Bank PLC | | Turkish Lira | | | 301,838 | | | United States Dollar | | | 135,645 | | | | (714) | |
11/28/2014 | | JP Morgan | | Turkish Lira | | | 222,463 | | | United States Dollar | | | 100,000 | | | | (552) | |
11/28/2014 | | Goldman Sachs Intl Ltd. London | | United States Dollar | | | 5,518 | | | Colombian Peso | | | 11,344,939 | | | | 23 | |
11/28/2014 | | Citibank London | | United States Dollar | | | 264,863 | | | Euro | | | 201,850 | | | | 11,870 | |
11/28/2014 | | Citibank London | | United States Dollar | | | 61,409 | | | Euro | | | 46,785 | | | | 2,770 | |
11/28/2014 | | Merrill Lynch International | | United States Dollar | | | 131,782 | | | Euro | | | 100,000 | | | | 6,445 | |
11/28/2014 | | Merrill Lynch International | | United States Dollar | | | 117,641 | | | Euro | | | 89,351 | | | | 5,651 | |
11/28/2014 | | Union Bank of Switzerland - London | | United States Dollar | | | 335,026 | | | Euro | | | 255,262 | | | | 15,087 | |
11/28/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 9,979 | | | Singapore Dollar | | | 12,742 | | | | 62 | |
11/28/2014 | | Citibank London | | United States Dollar | | | 90,000 | | | Turkish Lira | | | 206,398 | | | | (2,267) | |
12/02/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 12,290 | | | Brazilian Real | | | 31,080 | | | | (131) | |
12/02/2014 | | JP Morgan | | United States Dollar | | | 12,152 | | | Brazilian Real | | | 31,080 | | | | (269) | |
12/19/2014 | | Morgan Stanley & Co. International | | Russian Ruble | | | 13,742,200 | | | United States Dollar | | | 350,969 | | | | (36,433) | |
12/30/2014 | | Barclays Wholesale GTS | | Thai Baht | | | 1,093,552 | | | United States Dollar | | | 33,738 | | | | (256) | |
12/30/2014 | | Goldman Sachs Intl Ltd. London | | Thai Baht | | | 2,713,400 | | | United States Dollar | | | 83,144 | | | | (65) | |
12/30/2014 | | Goldman Sachs Intl Ltd. London | | Thai Baht | | | 4,160,000 | | | United States Dollar | | | 128,304 | | | | (933) | |
See accompanying notes to the financial statements.
75
ASHMORE EMERGING MARKETS CURRENCY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | | | | | |
Settlement
Date | | Counterparty | | Currency Buy | | Currency Buy
Amount
(Local
Currency) | | | Currency Sell | | Currency Sell
Amount
(Local
Currency) | | | Unrealized Gain/(Loss) | |
12/30/2014 | | JP Morgan | | Thai Baht | | | 2,356,700 | | | United States Dollar | | | 72,192 | | | $ | (34) | |
12/31/2014 | | Goldman Sachs Intl Ltd. London | | Chinese Yuan Renminbi | | | 3,424,500 | | | United States Dollar | | | 557,010 | | | | (101) | |
12/31/2014 | | BNP Paris | | Indian Rupee | | | 3,523,000 | | | United States Dollar | | | 56,933 | | | | (46) | |
12/31/2014 | | Citibank London | | Indian Rupee | | | 2,359,323 | | | United States Dollar | | | 38,112 | | | | (15) | |
12/31/2014 | | Union Bank of Switzerland - London | | Malaysian Ringgit | | | 513,825 | | | United States Dollar | | | 157,567 | | | | (3,076) | |
12/31/2014 | | BNP Paris | | Taiwan Dollar | | | 10,919,020 | | | United States Dollar | | | 360,423 | | | | (1,909) | |
01/30/2015 | | Santander | | Chilean Peso | | | 129,745,000 | | | United States Dollar | | | 214,667 | | | | 8,933 | |
01/30/2015 | | Santander | | Chilean Peso | | | 78,133,027 | | | United States Dollar | | | 132,733 | | | | 1,920 | |
01/30/2015 | | HSBC Bank PLC | | Chinese Yuan Renminbi | | | 2,858,955 | | | United States Dollar | | | 463,890 | | | | (322) | |
01/30/2015 | | Goldman Sachs Intl Ltd. London | | Hungarian Forint | | | 32,561,454 | | | United States Dollar | | | 133,434 | | | | (1,282) | |
01/30/2015 | | Barclays Wholesale GTS | | Indian Rupee | | | 16,248,929 | | | United States Dollar | | | 261,868 | | | | (738) | |
01/30/2015 | | Goldman Sachs Intl Ltd. London | | Indian Rupee | | | 15,721,500 | | | United States Dollar | | | 251,202 | | | | 1,452 | |
01/30/2015 | | Merrill Lynch International | | Indian Rupee | | | 15,275,000 | | | United States Dollar | | | 245,895 | | | | (416) | |
01/30/2015 | | Goldman Sachs Intl Ltd. London | | Israeli Shekel | | | 500,215 | | | United States Dollar | | | 133,032 | | | | (1,297) | |
01/30/2015 | | BNP Paris | | Malaysian Ringgit | | | 728,000 | | | United States Dollar | | | 220,696 | | | | (2,269) | |
01/30/2015 | | Deutsche Bank London | | Mexican Peso | | | 833,465 | | | United States Dollar | | | 61,187 | | | | 368 | |
01/30/2015 | | HSBC Bank PLC | | Mexican Peso | | | 1,325,490 | | | United States Dollar | | | 97,407 | | | | 486 | |
01/30/2015 | | Morgan Stanley & Co. International | | Mexican Peso | | | 2,072,397 | | | United States Dollar | | | 152,015 | | | | 1,040 | |
01/30/2015 | | Deutsche Bank London | | Philippine Peso | | | 2,568,900 | | | United States Dollar | | | 57,258 | | | | (247) | |
01/30/2015 | | Union Bank of Switzerland - London | | Philippine Peso | | | 2,774,459 | | | United States Dollar | | | 61,888 | | | | (315) | |
01/30/2015 | | Deutsche Bank London | | Polish Zloty | | | 564,233 | | | United States Dollar | | | 168,888 | | | | (2,062) | |
01/30/2015 | | Merrill Lynch International | | Polish Zloty | | | 564,233 | | | United States Dollar | | | 168,922 | | | | (2,096) | |
01/30/2015 | | JP Morgan | | Russian Ruble | | | 11,050,295 | | | United States Dollar | | | 257,223 | | | | (6,423) | |
01/30/2015 | | BNP Paris | | Thai Baht | | | 1,957,240 | | | United States Dollar | | | 60,278 | | | | (431) | |
01/30/2015 | | Goldman Sachs Intl Ltd. London | | Thai Baht | | | 2,729,700 | | | United States Dollar | | | 84,276 | | | | (809) | |
01/30/2015 | | Morgan Stanley & Co. International | | Turkish Lira | | | 224,650 | | | United States Dollar | | | 100,000 | | | | (946) | |
01/30/2015 | | Union Bank of Switzerland - London | | Turkish Lira | | | 313,724 | | | United States Dollar | | | 138,192 | | | | 136 | |
01/30/2015 | | BNP Paris | | United States Dollar | | | 9,923 | | | Peruvian Neuvo Sol | | | 29,140 | | | | 58 | |
01/30/2015 | | Merrill Lynch Capital Markets | | United States Dollar | | | 19,709 | | | Romanian Leu | | | 69,109 | | | | 140 | |
03/04/2015 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 1,490,720 | | | United States Dollar | | | 242,000 | | | | (1,082) | |
03/04/2015 | | HSBC Bank PLC | | United States Dollar | | | 9,770 | | | Chinese Offshore Yuan | | | 60,720 | | | | (43) | |
03/04/2015 | | HSBC Bank PLC | | United States Dollar | | | 229,885 | | | Chinese Offshore Yuan | | | 1,430,000 | | | | (1,220) | |
03/19/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 1,065,552 | | | United States Dollar | | | 171,008 | | | | 1,018 | |
03/19/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 440,904 | | | United States Dollar | | | 70,618 | | | | 563 | |
03/19/2015 | | Standard Chartered London | | United States Dollar | | | 242,098 | | | Chinese Offshore Yuan | | | 1,506,456 | | | | (1,110) | |
04/13/2015 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 7,419,240 | | | United States Dollar | | | 1,110,000 | | | | 85,710 | |
04/13/2015 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 7,116,635 | | | United States Dollar | | | 1,085,266 | | | | 61,674 | |
04/13/2015 | | HSBC Bank PLC | | United States Dollar | | | 1,328 | | | Chinese Offshore Yuan | | | 8,705 | | | | (75) | |
04/13/2015 | | HSBC Bank PLC | | United States Dollar | | | 590,000 | | | Chinese Offshore Yuan | | | 3,813,170 | | | | (24,543) | |
04/13/2015 | | HSBC Bank PLC | | United States Dollar | | | 590,000 | | | Chinese Offshore Yuan | | | 3,825,265 | | | | (26,493) | |
04/13/2015 | | HSBC Bank PLC | | United States Dollar | | | 1,050,000 | | | Chinese Offshore Yuan | | | 6,888,735 | | | | (60,212) | |
05/04/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 7,614,360 | | | United States Dollar | | | 1,160,726 | | | | 64,674 | |
05/04/2015 | | Standard Chartered London | | United States Dollar | | | 1,170,000 | | | Chinese Offshore Yuan | | | 7,614,360 | | | | (55,400) | |
07/17/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 7,141,600 | | | United States Dollar | | | 1,074,571 | | | | 69,337 | |
07/17/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 1,410,455 | | | United States Dollar | | | 214,469 | | | | 11,451 | |
07/17/2015 | | Standard Chartered London | | United States Dollar | | | 1,290,000 | | | Chinese Offshore Yuan | | | 8,552,055 | | | | (79,828) | |
03/06/2017 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 80,322 | | | United States Dollar | | | 12,618 | | | | (47) | |
03/06/2017 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 1,430,000 | | | United States Dollar | | | 224,367 | | | | (557) | |
03/06/2017 | | HSBC Bank PLC | | United States Dollar | | | 242,000 | | | Chinese Offshore Yuan | | | 1,510,322 | | | | 5,620 | |
03/20/2017 | | Standard Chartered London | | Chinese Offshore Yuan | | | 1,525,903 | | | United States Dollar | | | 239,264 | | | | (508) | |
03/20/2017 | | Standard Chartered London | | United States Dollar | | | 171,008 | | | Chinese Offshore Yuan | | | 1,078,891 | | | | 2,196 | |
03/20/2017 | | Standard Chartered London | | United States Dollar | | | 70,618 | | | Chinese Offshore Yuan | | | 447,012 | | | | 675 | |
| | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | $(36,691) | |
| | | | | | | | | | | | | | | | | | |
See accompanying notes to the financial statements.
76
ASHMORE EMERGING MARKETS CURRENCY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities and other financial instruments, if any. See note 4 in the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. The following is a summary of the inputs used in valuing the Ashmore Emerging Markets Currency Fund’s investments and other financial instruments, which are carried at fair value, as of October 31, 2014:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Government Bonds | | | $ — | | | $ | 1,664,875 | | | | $ — | | | $ | 1,664,875 | |
Index Linked Government Bonds | | | — | | | | 483,577 | | | | — | | | | 483,577 | |
Total Investments | | | $ — | | | $ | 2,148,452 | | | | $ — | | | $ | 2,148,452 | |
| | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | $ — | | | $ | 376,377 | | | | $ — | | | $ | 376,377 | |
Liabilities: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | — | | | | (413,068 | ) | | | — | | | | (413,068 | ) |
Total Other Financial Instruments | | | $ — | | | $ | (36,691 | ) | | | $ — | | | $ | (36,691 | ) |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2014 there were no transfers between Level 1, Level 2 and Level 3 based on levels assigned to the securities on October 31, 2013. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.
The following is a summary of the fair values of the Fund’s derivative instruments*:
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of October 31, 2014:
| | |
| | | Derivatives Not Accounted
for as Hedging Instruments |
| | | Foreign Exchange |
Assets: | | |
Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | $376,377 |
| | |
Liabilities: | | |
Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | | $(413,068) |
| | |
See accompanying notes to the financial statements.
77
ASHMORE EMERGING MARKETS CURRENCY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
The Effect of Financial Derivative Instruments on the Statements of Operations for the Year Ended October 31, 2014:
| | | | | | | | | | |
| | | Derivatives Not Accounted
for as Hedging Instruments |
| | | Foreign
Exchange | | Interest
Rate |
Realized Gain (Loss) on Derivatives Recognized resulting from Operations: | | | | | | | | | | |
Net Realized Loss on Forward Foreign Currency Exchange Contracts | | | $ | (22,614 | ) | | | $ | — | |
Net Realized Loss on Options Contracts | | | | — | | | | | (36,378 | ) |
Net Realized Loss on Interest Rate Swap Contracts | | | | — | | | | | (131 | ) |
| | | $ | (22,614 | ) | | | $ | (36,509 | ) |
| | |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized resulting from Operations: | | | | | | | | | | |
Net Change in Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | | $ | 153,910 | | | | $ | — | |
Net Change in Unrealized Appreciation on Options Contracts | | | | — | | | | | 36,353 | |
| | | $ | 153,910 | | | | $ | 36,353 | |
| * | See note 10 in the Notes to the Financial Statements for additional information. |
At October 31, 2014, for U.S. federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation/(depreciation) on investments in securities (including the effects of foreign currency translation) and the cost basis of investments were as follows:
| | | | |
Federal tax cost of investments | | $ | 2,262,930 | |
Gross tax appreciation of investments | | | 52 | |
Gross tax depreciation of investments | | | (114,530 | ) |
Net tax depreciation of investments | | | $(114,478 | ) |
The difference between book basis and tax basis net unrealized appreciation or depreciation is attributable primarily to the tax deferral of losses on wash sales.
See accompanying notes to the financial statements.
78
ASHMORE EMERGING MARKETS DEBT FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Debt Securities | | | | | | | | | | | | | | |
| | | | |
Argentina (Cost $72,599) | | | | | | | | | | | | | | |
Argentina (Rep of) 8.750%, 06/02/2017 | | | | | 1,009 | | | $ | 852 | | | | 0.02 | |
Argentina (Rep of) 8.280%, 12/31/2033(2) | | | | | 5,408 | | | | 4,599 | | | | 0.08 | |
Argentina (Rep of), FRN 2.500%, 12/31/2038(2) | | | | | 55,232 | | | | 29,825 | | | | 0.53 | |
Argentina Boden Bonds 7.000%, 10/03/2015 | | | | | 40,885 | | | | 38,204 | | | | 0.68 | |
| | | | | | | | | 73,480 | | | | 1.31 | |
Azerbaijan (Cost $52,206) | | | | | | | | | | | | | | |
State Oil Co. of the Azerbaijan Republic 5.450%, 02/09/2017 | | | | | 50,000 | | | | 52,250 | | | | 0.93 | |
| | | | | | | | | 52,250 | | | | 0.93 | |
Belarus (Cost $100,354) | | | | | | | | | | | | | | |
Belarus (Rep of) 8.750%, 08/03/2015 | | | | | 70,000 | | | | 71,414 | | | | 1.27 | |
Belarus (Rep of) 8.950%, 01/26/2018 | | | | | 30,000 | | | | 32,293 | | | | 0.58 | |
| | | | | | | | | 103,707 | | | | 1.85 | |
Bolivia (Cost $59,518) | | | | | | | | | | | | | | |
Bolivian (Rep of) 4.875%, 10/29/2022 | | | | | 60,000 | | | | 61,575 | | | | 1.10 | |
| | | | | | | | | 61,575 | | | | 1.10 | |
Brazil (Cost $684,622) | | | | | | | | | | | | | | |
Brazil (Fed Rep of) 4.875%, 01/22/2021 | | | | | 50,000 | | | | 53,875 | | | | 0.96 | |
Brazil (Fed Rep of) 4.250%, 01/07/2025 | | | | | 56,000 | | | | 56,896 | | | | 1.01 | |
Brazil (Fed Rep of) 7.125%, 01/20/2037 | | | | | 10,000 | | | | 12,625 | | | | 0.23 | |
Brazil Notas do Tesouro Nacional Serie F 10.000%, 01/01/2021 | | BRL | | | 286,000 | | | | 105,557 | | | | 1.88 | |
Brazil Notas do Tesouro Nacional Serie F 10.000%, 01/01/2023 | | BRL | | | 207,000 | | | | 75,029 | | | | 1.34 | |
Brazil Notas do Tesouro Nacional Serie F 10.000%, 01/01/2025 | | BRL | | | 198,000 | | | | 70,772 | | | | 1.26 | |
Itau Unibanco Holding S.A. 10.500%, 11/23/2015 | | BRL | | | 150,000 | | | | 59,930 | | | | 1.07 | |
Marfrig Holding Europe B.V. 8.375%, 05/09/2018 | | | | | 200,000 | | | | 210,500 | | | | 3.75 | |
| | | | | | | | | 645,184 | | | | 11.50 | |
Chile (Cost $72,302) | | | | | | | | | | | | | | |
Empresa Nacional del Petroleo 5.250%, 08/10/2020 | | | | | 70,000 | | | | 75,806 | | | | 1.35 | |
| | | | | | | | | 75,806 | | | | 1.35 | |
China (Cost $298,944) | | | | | | | | | | | | | | |
Country Garden Holdings Co. Ltd. 7.500%, 01/10/2023(3) | | | | | 200,000 | | | | 195,500 | | | | 3.48 | |
Sinochem Overseas Capital Co. Ltd. 4.500%, 11/12/2020 | | | | | 100,000 | | | | 106,609 | | | | 1.90 | |
| | | | | | | | | 302,109 | | | | 5.38 | |
Colombia (Cost $195,862) | | | | | | | | | | | | | | |
Colombia (Rep of) 7.375%, 03/18/2019 | | | | | 100,000 | | | | 119,900 | | | | 2.13 | |
Colombia (Rep of) 11.750%, 02/25/2020 | | | | | 20,000 | | | | 28,450 | | | | 0.51 | |
Colombia (Rep of) 8.125%, 05/21/2024 | | | | | 10,000 | | | | 13,325 | | | | 0.24 | |
Emgesa S.A. ESP 8.750%, 01/25/2021 | | COP | | | 5,000,000 | | | | 2,607 | | | | 0.04 | |
Empresa de Telecomunicaciones de Bogota 7.000%, 01/17/2023 | | COP | | | 34,000,000 | | | | 15,575 | | | | 0.28 | |
Empresas Publicas de Medellin ESP 8.375%, 02/01/2021 | | COP | | | 30,000,000 | | | | 15,528 | | | | 0.28 | |
| | | | | | | | | 195,385 | | | | 3.48 | |
Costa Rica (Cost $58,251) | | | | | | | | | | | | | | |
Costa Rica (Rep of) 4.375%, 04/30/2025 | | | | | 60,000 | | | | 55,800 | | | | 0.99 | |
| | | | | | | | | 55,800 | | | | 0.99 | |
Croatia (Cost $134,714) | | | | | | | | | | | | | | |
Croatia (Rep of) 6.625%, 07/14/2020 | | | | | 120,000 | | | | 133,126 | | | | 2.37 | |
| | | | | | | | | 133,126 | | | | 2.37 | |
See accompanying notes to financial statements.
79
ASHMORE EMERGING MARKETS DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Dominican Republic (Cost $61,381) | | | | | | | | | | | | | | |
Dominican (Rep of) 5.875%, 04/18/2024 | | | | | 60,000 | | | $ | 63,300 | | | | 1.13 | |
| | | | | | | | | 63,300 | | | | 1.13 | |
Egypt (Cost $37,005) | | | | | | | | | | | | | | |
Egypt (Rep of) 5.750%, 04/29/2020 | | | | | 40,000 | | | | 42,358 | | | | 0.76 | |
| | | | | | | | | 42,358 | | | | 0.76 | |
El Salvador (Cost $30,562) | | | | | | | | | | | | | | |
El Salvador (Rep of) 5.875%, 01/30/2025 | | | | | 30,000 | | | | 29,925 | | | | 0.53 | |
| | | | | | | | | 29,925 | | | | 0.53 | |
Georgia (Cost $31,855) | | | | | | | | | | | | | | |
Georgian Railway JSC 7.750%, 07/11/2022 | | | | | 30,000 | | | | 33,606 | | | | 0.60 | |
| | | | | | | | | 33,606 | | | | 0.60 | |
Hungary (Cost $218,065) | | | | | | | | | | | | | | |
Hungary (Rep of) 4.750%, 02/03/2015 | | | | | 7,000 | | | | 7,063 | | | | 0.13 | |
Hungary (Rep of) 4.125%, 02/19/2018 | | | | | 28,000 | | | | 28,917 | | | | 0.52 | |
Hungary (Rep of) 6.250%, 01/29/2020 | | | | | 30,000 | | | | 33,712 | | | | 0.60 | |
Hungary (Rep of) 5.375%, 02/21/2023(3) | | | | | 50,000 | | | | 53,750 | | | | 0.96 | |
Hungary (Rep of) 5.750%, 11/22/2023 | | | | | 40,000 | | | | 44,000 | | | | 0.78 | |
Hungary (Rep of) 5.375%, 03/25/2024 | | | | | 18,000 | | | | 19,262 | | | | 0.34 | |
Hungary (Rep of) 7.625%, 03/29/2041 | | | | | 38,000 | | | | 49,115 | | | | 0.87 | |
| | | | | | | | | 235,819 | | | | 4.20 | |
Indonesia (Cost $242,205) | | | | | | | | | | | | | | |
Indonesia (Rep of) 6.875%, 01/17/2018 | | | | | 30,000 | | | | 33,864 | | | | 0.60 | |
Indonesia (Rep of) 5.875%, 03/13/2020 | | | | | 160,000 | | | | 179,000 | | | | 3.19 | |
Indonesia (Rep of) 7.750%, 01/17/2038 | | | | | 30,000 | | | | 39,487 | | | | 0.71 | |
| | | | | | | | | 252,351 | | | | 4.50 | |
Iraq (Cost $57,474) | | | | | | | | | | | | | | |
Iraq (Rep of) 5.800%, 01/15/2028 | | | | | 70,000 | | | | 61,775 | | | | 1.10 | |
| | | | | | | | | 61,775 | | | | 1.10 | |
Ivory Coast (Cost $113,384) | | | | | | | | | | | | | | |
Ivory Coast (Rep of), FRN 5.750%, 12/31/2032 | | | | | 130,000 | | | | 125,476 | | | | 2.24 | |
| | | | | | | | | 125,476 | | | | 2.24 | |
Kazakhstan (Cost $212,289) | | | | | | | | | | | | | | |
Kazakhstan Temir Zholy Finance B.V. 6.950%, 07/10/2042 | | | | | 57,000 | | | | 63,555 | | | | 1.13 | |
KazMunayGas National Co. JSC 7.000%, 05/05/2020 | | | | | 70,000 | | | | 78,855 | | | | 1.41 | |
KazMunayGas National Co. JSC 4.400%, 04/30/2023 | | | | | 70,000 | | | | 68,740 | | | | 1.22 | |
| | | | | | | | | 211,150 | | | | 3.76 | |
Latvia (Cost $28,710) | | | | | | | | | | | | | | |
Latvia (Rep of) 2.750%, 01/12/2020 | | | | | 30,000 | | | | 29,662 | | | | 0.53 | |
| | | | | | | | | 29,662 | | | | 0.53 | |
Lebanon (Cost $146,148) | | | | | | | | | | | | | | |
Lebanon (Rep of) 4.100%, 06/12/2015 | | | | | 26,000 | | | | 26,098 | | | | 0.46 | |
Lebanon (Rep of) 5.150%, 11/12/2018 | | | | | 10,000 | | | | 10,075 | | | | 0.18 | |
Lebanon (Rep of) 5.450%, 11/28/2019 | | | | | 10,000 | | | | 10,075 | | | | 0.18 | |
Lebanon (Rep of) 6.375%, 03/09/2020 | | | | | 10,000 | | | | 10,450 | | | | 0.19 | |
Lebanon (Rep of) 8.250%, 04/12/2021 | | | | | 14,000 | | | | 16,048 | | | | 0.29 | |
Lebanon (Rep of) 6.100%, 10/04/2022 | | | | | 25,000 | | | | 25,500 | | | | 0.45 | |
Lebanon (Rep of) 6.000%, 01/27/2023 | | | | | 10,000 | | | | 10,114 | | | | 0.18 | |
Lebanon (Rep of) 6.600%, 11/27/2026 | | | | | 40,000 | | | | 40,800 | | | | 0.73 | |
| | | | | | | | | 149,160 | | | | 2.66 | |
Lithuania (Cost $154,641) | | | | | | | | | | | | | | |
Lithuania (Rep of) 5.125%, 09/14/2017 | | | | | 30,000 | | | | 32,862 | | | | 0.58 | |
See accompanying notes to financial statements.
80
ASHMORE EMERGING MARKETS DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Lithuania - (continued) | | | | | | | | | | | | | | |
Lithuania (Rep of) 7.375%, 02/11/2020(3) | | | | | 100,000 | | | $ | 121,000 | | | | 2.16 | |
| | | | | | | | | 153,862 | | | | 2.74 | |
Malaysia (Cost $68,277) | | | | | | | | | | | | | | |
Petronas Capital Ltd. 7.875%, 05/22/2022 | | | | | 50,000 | | | | 65,523 | | | | 1.17 | |
| | | | | | | | | 65,523 | | | | 1.17 | |
Mexico (Cost $525,020) | | | | | | | | | | | | | | |
Cemex Finance LLC 9.375%, 10/12/2022(3) | | | | | 200,000 | | | | 230,500 | | | | 4.11 | |
Empresas ICA S.A.B. de C.V. 8.900%, 02/04/2021 | | | | | 10,000 | | | | 10,575 | | | | 0.19 | |
Mexican Bonos 10.000%, 11/20/2036 | | MXN | | | 520,000 | | | | 52,956 | | | | 0.94 | |
Mexican Udibonos 4.500%, 12/04/2025 | | MXN | | | 120,000 | | | | 54,670 | | | | 0.98 | |
Mexico (Rep of) 5.950%, 03/19/2019 | | | | | 10,000 | | | | 11,475 | | | | 0.21 | |
Mexico (Rep of) 6.750%, 09/27/2034 | | | | | 39,000 | | | | 50,368 | | | | 0.90 | |
Mexico (Rep of) 4.750%, 03/08/2044 | | | | | 14,000 | | | | 14,217 | | | | 0.25 | |
Mexico (Rep of) 5.750%, 10/12/2110 | | | | | 16,000 | | | | 16,941 | | | | 0.30 | |
Petroleos Mexicanos 5.750%, 03/01/2018 | | | | | 20,000 | | | | 22,106 | | | | 0.39 | |
Petroleos Mexicanos 8.000%, 05/03/2019 | | | | | 20,000 | | | | 24,298 | | | | 0.43 | |
Petroleos Mexicanos 6.000%, 03/05/2020 | | | | | 10,000 | | | | 11,347 | | | | 0.20 | |
Petroleos Mexicanos 6.500%, 06/02/2041 | | | | | 16,000 | | | | 18,720 | | | | 0.33 | |
| | | | | | | | | 518,173 | | | | 9.23 | |
Morocco (Cost $46,334) | | | | | | | | | | | | | | |
Morocco (Rep of) 4.250%, 12/11/2022 | | | | | 50,000 | | | | 50,690 | | | | 0.90 | |
| | | | | | | | | 50,690 | | | | 0.90 | |
Pakistan (Cost $101,914) | | | | | | | | | | | | | | |
Pakistan (Rep of) 7.125%, 03/31/2016 | | | | | 100,000 | | | | 102,000 | | | | 1.82 | |
| | | | | | | | | 102,000 | | | | 1.82 | |
Panama (Cost $46,447) | | | | | | | | | | | | | | |
Panama (Rep of) 8.875%, 09/30/2027 | | | | | 10,000 | | | | 14,325 | | | | 0.25 | |
Panama (Rep of) 9.375%, 04/01/2029 | | | | | 10,000 | | | | 14,950 | | | | 0.27 | |
Panama (Rep of) 6.700%, 01/26/2036 | | | | | 15,000 | | | | 18,863 | | | | 0.34 | |
| | | | | | | | | 48,138 | | | | 0.86 | |
Peru (Cost $98,847) | | | | | | | | | | | | | | |
Peru (Rep of) 7.125%, 03/30/2019 | | | | | 20,000 | | | | 24,050 | | | | 0.43 | |
Peru (Rep of) 8.750%, 11/21/2033 | | | | | 44,000 | | | | 67,650 | | | | 1.20 | |
| | | | | | | | | 91,700 | | | | 1.63 | |
Philippines (Cost $160,531) | | | | | | | | | | | | | | |
Philippines (Rep of) 4.000%, 01/15/2021 | | | | | 50,000 | | | | 53,562 | | | | 0.95 | |
Philippines (Rep of) 10.625%, 03/16/2025 | | | | | 15,000 | | | | 23,738 | | | | 0.42 | |
Philippines (Rep of) 9.500%, 02/02/2030 | | | | | 54,000 | | | | 86,197 | | | | 1.54 | |
| | | | | | | | | 163,497 | | | | 2.91 | |
Poland (Cost $55,110) | | | | | | | | | | | | | | |
Poland (Rep of) 6.375%, 07/15/2019 | | | | | 20,000 | | | | 23,729 | | | | 0.42 | |
Poland (Rep of) 5.000%, 03/23/2022 | | | | | 20,000 | | | | 22,475 | | | | 0.40 | |
Poland (Rep of) 3.000%, 03/17/2023 | | | | | 10,000 | | | | 9,907 | | | | 0.18 | |
| | | | | | | | | 56,111 | | | | 1.00 | |
Romania (Cost $100,396) | | | | | | | | | | | | | | |
Romania (Rep of) 6.750%, 02/07/2022 | | | | | 40,000 | | | | 47,920 | | | | 0.86 | |
Romania (Rep of) 4.375%, 08/22/2023 | | | | | 50,000 | | | | 52,062 | | | | 0.93 | |
Romania (Rep of) 6.125%, 01/22/2044 | | | | | 4,000 | | | | 4,685 | | | | 0.08 | |
| | | | | | | | | 104,667 | | | | 1.87 | |
Russian Federation (Cost $233,326) | | | | | | | | | | | | | | |
CEDC Finance Corp. International, Inc., FRN 9.000%, 04/30/2018 | | | | | 10,000 | | | | 9,300 | | | | 0.17 | |
See accompanying notes to financial statements.
81
ASHMORE EMERGING MARKETS DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Russian Federation - (continued) | | | | | | | | | | | | | | |
Russian Foreign Bond - Eurobond, FRN 7.500%, 03/31/2030 | | | | | 13,100 | | | $ | 14,862 | | | | 0.26 | |
Vnesheconombank Via VEB Finance PLC 5.450%, 11/22/2017(3) | | | | | 100,000 | | | | 100,120 | | | | 1.78 | |
Vnesheconombank Via VEB Finance PLC 6.902%, 07/09/2020 | | | | | 100,000 | | | | 102,125 | | | | 1.82 | |
| | | | | | | | | 226,407 | | | | 4.03 | |
Senegal (Cost $32,600) | | | | | | | | | | | | | | |
Senegal (Rep of) 8.750%, 05/13/2021 | | | | | 30,000 | | | | 34,350 | | | | 0.61 | |
| | | | | | | | | 34,350 | | | | 0.61 | |
Serbia (Cost $52,618) | | | | | | | | | | | | | | |
Serbia (Rep of) 7.250%, 09/28/2021 | | | | | 50,000 | | | | 57,475 | | | | 1.02 | |
| | | | | | | | | 57,475 | | | | 1.02 | |
South Africa (Cost $85,121) | | | | | | | | | | | | | | |
South Africa (Rep of) 5.500%, 03/09/2020 | | | | | 80,000 | | | | 87,700 | | | | 1.56 | |
| | | | | | | | | 87,700 | | | | 1.56 | |
Sri Lanka (Cost $40,448) | | | | | | | | | | | | | | |
Bank of Ceylon 6.875%, 05/03/2017 | | | | | 40,000 | | | | 42,250 | | | | 0.75 | |
| | | | | | | | | 42,250 | | | | 0.75 | |
Turkey (Cost $187,253) | | | | | | | | | | | | | | |
Turkey (Rep of) 6.750%, 04/03/2018 | | | | | 50,000 | | | | 55,875 | | | | 1.00 | |
Turkey (Rep of) 5.625%, 03/30/2021 | | | | | 40,000 | | | | 43,799 | | | | 0.78 | |
Turkey (Rep of) 7.375%, 02/05/2025 | | | | | 10,000 | | | | 12,360 | | | | 0.22 | |
Turkey (Rep of) 6.750%, 05/30/2040 | | | | | 30,000 | | | | 36,163 | | | | 0.64 | |
Turkey (Rep of) 6.000%, 01/14/2041 | | | | | 40,000 | | | | 44,328 | | | | 0.79 | |
| | | | | | | | | 192,525 | | | | 3.43 | |
Ukraine (Cost $379,217) | | | | | | | | | | | | | | |
MHP S.A. 8.250%, 04/02/2020 | | | | | 200,000 | | | | 175,040 | | | | 3.12 | |
Ukraine (Rep of) 9.250%, 07/24/2017 | | | | | 70,000 | | | | 63,700 | | | | 1.13 | |
Ukraine (Rep of) 7.950%, 02/23/2021 | | | | | 130,000 | | | | 114,238 | | | | 2.04 | |
| | | | | | | | | 352,978 | | | | 6.29 | |
United Arab Emirates (Cost $259,803) | | | | | | | | | | | | | | |
DP World Ltd. 6.850%, 07/02/2037 | | | | | 100,000 | | | | 114,750 | | | | 2.04 | |
Emirate of Dubai (Rep of) 7.750%, 10/05/2020 | | | | | 130,000 | | | | 162,500 | | | | 2.90 | |
| | | | | | | | | 277,250 | | | | 4.94 | |
Uruguay (Cost $69,928) | | | | | | | | | | | | | | |
Uruguay (Rep of) 4.500%, 08/14/2024 | | | | | 12,503 | | | | 13,191 | | | | 0.23 | |
Uruguay (Rep of) 7.875%, 01/15/2033(4) | | | | | 22,000 | | | | 30,085 | | | | 0.54 | |
Uruguay (Rep of) 7.625%, 03/21/2036 | | | | | 16,000 | | | | 21,800 | | | | 0.39 | |
| | | | | | | | | 65,076 | | | | 1.16 | |
Venezuela (Cost $389,077) | | | | | | | | | | | | | | |
Petroleos de Venezuela S.A. 5.000%, 10/28/2015 | | | | | 30,000 | | | | 26,550 | | | | 0.47 | |
Petroleos de Venezuela S.A. 5.125%, 10/28/2016 | | | | | 19,638 | | | | 14,630 | | | | 0.26 | |
Petroleos de Venezuela S.A. 5.250%, 04/12/2017 | | | | | 10,000 | | | | 6,630 | | | | 0.12 | |
Petroleos de Venezuela S.A. 8.500%, 11/02/2017 | | | | | 10,000 | | | | 7,574 | | | | 0.14 | |
Petroleos de Venezuela S.A. 12.750%, 02/17/2022 | | | | | 15,000 | | | | 11,906 | | | | 0.21 | |
Petroleos de Venezuela S.A. 5.375%, 04/12/2027 | | | | | 12,000 | | | | 5,700 | | | | 0.10 | |
Petroleos de Venezuela S.A. 9.750%, 05/17/2035 | | | | | 39,000 | | | | 23,810 | | | | 0.43 | |
Venezuela (Rep of) 5.750%, 02/26/2016 | | | | | 10,000 | | | | 8,500 | | | | 0.15 | |
Venezuela (Rep of) 7.750%, 10/13/2019 | | | | | 20,000 | | | | 12,950 | | | | 0.23 | |
Venezuela (Rep of) 6.000%, 12/09/2020 | | | | | 10,000 | | | | 5,950 | | | | 0.11 | |
Venezuela (Rep of) 12.750%, 08/23/2022 | | | | | 32,000 | | | | 25,440 | | | | 0.45 | |
Venezuela (Rep of) 9.000%, 05/07/2023 | | | | | 21,000 | | | | 13,492 | | | | 0.24 | |
See accompanying notes to financial statements.
82
ASHMORE EMERGING MARKETS DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Venezuela - (continued) | | | | | | | | | | | | | | |
Venezuela (Rep of) 8.250%, 10/13/2024 | | | | | 25,000 | | | $ | 15,100 | | | | 0.27 | |
Venezuela (Rep of) 7.650%, 04/21/2025 | | | | | 6,000 | | | | 3,600 | | | | 0.06 | |
Venezuela (Rep of) 11.750%, 10/21/2026 | | | | | 95,500 | | | | 70,002 | | | | 1.25 | |
Venezuela (Rep of) 9.250%, 09/15/2027 | | | | | 21,000 | | | | 13,965 | | | | 0.25 | |
Venezuela (Rep of) 9.250%, 05/07/2028 | | | | | 15,000 | | | | 9,525 | | | | 0.17 | |
Venezuela (Rep of) 11.950%, 08/05/2031 | | | | | 98,900 | | | | 71,950 | | | | 1.28 | |
| | | | | | | | | 347,274 | | | | 6.19 | |
Vietnam (Cost $53,683) | | | | | | | | | | | | | | |
Vietnam (Rep of) 6.750%, 01/29/2020 | | | | | 50,000 | | | | 56,000 | | | | 1.00 | |
| | | | | | | | | 56,000 | | | | 1.00 | |
Total Debt Securities (Cost $6,049,041) | | | | | | | | | 6,026,650 | | | | 107.38 | |
| | | | |
Total Investments (Total Cost $6,049,041) | | | | | | | | | 6,026,650 | | | | 107.38 | |
| | | | |
Liabilities Less Other Assets (See Statements of Assets and Liabilities for further detail) | | | | | | | | | (414,311 | ) | | | (7.38 | ) |
| | | | |
Net Assets | | | | | | | | $ | 5,612,339 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | Issuer has defaulted on terms of debt obligation. |
| (3) | All or a portion of security is held as collateral for Reverse Repurchase Agreement. |
| (4) | Security is payment in-kind bond. |
Percentages shown are based on net assets.
At October 31, 2014, the Ashmore Emerging Markets Debt Fund had outstanding forward foreign currency exchange contracts as follows:
| | | | | | | | | | | | | | | | | | |
Settlement Date | | Counterparty | | Currency Buy | | Currency Buy
Amount
(Local
Currency) | | | Currency
Sell | | Currency Sell
Amount
(Local
Currency) | | | Unrealized
Gain/(Loss) | |
11/04/2014 | | Barclays Wholesale GTS | | Brazilian Real | | | 240,115 | | | United States Dollar | | | 95,701 | | | | $1,083 | |
11/04/2014 | | Barclays Wholesale GTS | | Brazilian Real | | | 9,898 | | | United States Dollar | | | 4,050 | | | | (60) | |
11/04/2014 | | Barclays Wholesale GTS | | Brazilian Real | | | 65,257 | | | United States Dollar | | | 26,794 | | | | (491) | |
11/04/2014 | | Goldman Sachs Intl Ltd. London | | Brazilian Real | | | 48,620 | | | United States Dollar | | | 20,000 | | | | (403) | |
11/04/2014 | | JP Morgan | | Brazilian Real | | | 240,115 | | | United States Dollar | | | 94,627 | | | | 2,157 | |
11/04/2014 | | Merrill Lynch International | | Brazilian Real | | | 60,303 | | | United States Dollar | | | 24,998 | | | | (691) | |
11/04/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 133,685 | | | Brazilian Real | | | 325,711 | | | | 2,400 | |
11/04/2014 | | CSFB Global Foreign Exchange London | | United States Dollar | | | 140,000 | | | Brazilian Real | | | 338,597 | | | | 3,520 | |
11/14/2014 | | BNP Paris | | British Pound | | | 40,534 | | | United States Dollar | | | 65,286 | | | | (450) | |
11/14/2014 | | HSBC Bank PLC | | United States Dollar | | | 65,142 | | | British Pound | | | 40,534 | | | | 306 | |
11/28/2014 | | Goldman Sachs Intl Ltd. London | | United States Dollar | | | 39,076 | | | Colombian Peso | | | 80,341,019 | | | | 164 | |
12/02/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 94,948 | | | Brazilian Real | | | 240,115 | | | | (1,014) | |
12/02/2014 | | JP Morgan | | United States Dollar | | | 93,885 | | | Brazilian Real | | | 240,115 | | | | (2,077) | |
01/30/2015 | | Deutsche Bank London | | United States Dollar | | | 41,647 | | | Mexican Peso | | | 567,298 | | | | (250) | |
01/30/2015 | | HSBC Bank PLC | | United States Dollar | | | 66,300 | | | Mexican Peso | | | 902,195 | | | | (331) | |
| | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | $ 3,863 | |
| | | | | | | | | | | | | | | | | | |
See accompanying notes to financial statements.
83
ASHMORE EMERGING MARKETS DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities and other financial instruments, if any. See note 4 in the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. The following is a summary of the inputs used in valuing the Ashmore Emerging Markets Debt Fund’s investments and other financial instruments, which are carried at fair value, as of October 31, 2014:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Corporate Bonds | | | $ — | | | $ | 1,993,599 | | | | $ — | | | $ | 1,993,599 | |
Government Agencies | | | — | | | | 22,106 | | | | — | | | | 22,106 | |
Government Bonds | | | — | | | | 3,793,775 | | | | — | | | | 3,793,775 | |
Index Linked Government Bonds | | | — | | | | 54,670 | | | | — | | | | 54,670 | |
Municipal Bonds | | | — | | | | 162,500 | | | | — | | | | 162,500 | |
Total Investments | | | $ — | | | $ | 6,026,650 | | | | $ — | | | $ | 6,026,650 | |
| | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | $ — | | | $ | 9,630 | | | | $ — | | | $ | 9,630 | |
Liablities: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | — | | | | (5,767 | ) | | | — | | | | (5,767 | ) |
Total Other Financial Instruments | | | $ — | | | $ | 3,863 | | | | $ — | | | $ | 3,863 | |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2014, there were no transfers between Level 1, Level 2 and Level 3 based on levels assigned to the securities on October 31, 2013. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.
The following is a summary of the fair values of the Fund’s derivative instruments*:
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of October 31, 2014:
| | |
| | | Derivatives Not Accounted
for as Hedging Instruments |
| | | Foreign Exchange |
Assets: | | |
Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | $ 9,630 |
| | |
| |
Liabilities: | | |
Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | | $(5,767) |
| | |
See accompanying notes to financial statements.
84
ASHMORE EMERGING MARKETS DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
The Effect of Financial Derivative Instruments on the Statements of Operations for the Year Ended October 31, 2014:
| | |
| | | Derivatives Not Accounted for as
Hedging Instruments |
| | | Foreign Exchange |
Realized Gain (Loss) on Derivatives Recognized resulting from Operations: | | |
Net Realized Gain on Forward Foreign Currency Exchange Contracts | | $ 12,134 |
| |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized resulting from Operations: | | |
Net Change in Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | $ 3,863 |
| | * | See note 10 in the Notes to the Financial Statements for additional information. |
At October 31, 2014, for U.S. federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation/(depreciation) on investments in securities (including the effects of foreign currency translation) and the cost basis of investments were as follows:
| | | | |
Federal tax cost of investments | | $ | 6,092,435 | |
Gross tax appreciation of investments | | | 127,487 | |
Gross tax depreciation of investments | | | (193,272) | |
Net tax depreciation of investments | | $ | (65,785) | |
The difference between book basis and tax basis net unrealized appreciation or depreciation is attributable primarily to the tax deferral of losses on wash sales.
See accompanying notes to financial statements.
85
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Debt Securities | | | | | | | | | | | | | | |
| | | | |
Angola (Cost $1,970,082) | | | | | | | | | | | | | | |
Puma International Financing S.A. 6.750%, 02/01/2021 | | | | | 1,900,000 | | | $ | 1,952,250 | | | | 0.20 | |
| | | | | | | | | 1,952,250 | | | | 0.20 | |
Argentina (Cost $9,794,829) | | | | | | | | | | | | | | |
Argentina (Rep of) 8.750%, 06/02/2017 | | | | | 92,040 | | | | 77,662 | | | | 0.01 | |
Argentina (Rep of) 8.280%, 12/31/2033(2) | | | | | 198,889 | | | | 169,152 | | | | 0.02 | |
Argentina (Rep of), FRN 2.500%, 12/31/2038(2) | | | | | 4,044,446 | | | | 2,183,945 | | | | 0.22 | |
Argentina Boden Bonds 7.000%, 10/03/2015 | | | | | 2,709,523 | | | | 2,531,863 | | | | 0.25 | |
WPE International Cooperatief UA 10.375%, 09/30/2020(2) | | | | | 5,450,000 | | | | 1,260,585 | | | | 0.13 | |
| | | | | | | | | 6,223,207 | | | | 0.63 | |
Azerbaijan (Cost $3,524,068) | | | | | | | | | | | | | | |
Azerbaijan (Rep of) 4.750%, 03/18/2024 | | | | | 640,000 | | | | 666,400 | | | | 0.07 | |
State Oil Co. of the Azerbaijan Republic 5.450%, 02/09/2017 | | | | | 1,410,000 | | | | 1,473,450 | | | | 0.15 | |
State Oil Co. of the Azerbaijan Republic 4.750%, 03/13/2023 | | | | | 1,420,000 | | | | 1,410,202 | | | | 0.14 | |
| | | | | | | | | 3,550,052 | | | | 0.36 | |
Bangladesh (Cost $1,354,319) | | | | | | | | | | | | | | |
Banglalink Digital Communications Ltd.
8.625%, 05/06/2019 | | | | | 1,270,000 | | | | 1,330,325 | | | | 0.13 | |
| | | | | | | | | 1,330,325 | | | | 0.13 | |
Barbados (Cost $3,339,059) | | | | | | | | | | | | | | |
Columbus International, Inc. 7.375%, 03/30/2021 | | | | | 3,115,000 | | | | 3,301,900 | | | | 0.33 | |
| | | | | | | | | 3,301,900 | | | | 0.33 | |
Belarus (Cost $6,452,170) | | | | | | | | | | | | | | |
Belarus (Rep of) 8.750%, 08/03/2015 | | | | | 3,090,000 | | | | 3,152,418 | | | | 0.32 | |
Belarus (Rep of) 8.950%, 01/26/2018 | | | | | 3,254,000 | | | | 3,502,768 | | | | 0.35 | |
| | | | | | | | | 6,655,186 | | | | 0.67 | |
Bolivia (Cost $1,647,869) | | | | | | | | | | | | | | |
Bolivian (Rep of) 4.875%, 10/29/2022 | | | | | 1,090,000 | | | | 1,118,612 | | | | 0.12 | |
Bolivian (Rep of) 5.950%, 08/22/2023 | | | | | 570,000 | | | | 612,750 | | | | 0.06 | |
| | | | | | | | | 1,731,362 | | | | 0.18 | |
Brazil (Cost $92,525,176) | | | | | | | | | | | | | | |
Banco Nacional de Desenvolvimento Economico e Social
6.500%, 06/10/2019 | | | | | 1,580,000 | | | | 1,756,960 | | | | 0.18 | |
Banco Nacional de Desenvolvimento Economico e Social
5.500%, 07/12/2020 | | | | | 180,000 | | | | 192,600 | | | | 0.02 | |
Banco Nacional de Desenvolvimento Economico e Social
5.750%, 09/26/2023 | | | | | 200,000 | | | | 214,690 | | | | 0.02 | |
Banco Santander Brasil S.A. 8.000%, 03/18/2016 | | BRL | | | 300,000 | | | | 115,925 | | | | 0.01 | |
Banco Votorantim S.A. 6.250%, 05/16/2016 | | BRL | | | 8,700,000 | | | | 3,985,879 | | | | 0.40 | |
Brazil (Fed Rep of) 2.625%, 01/05/2023 | | | | | 890,000 | | | | 820,135 | | | | 0.08 | |
Brazil (Fed Rep of) 10.250%, 01/10/2028 | | BRL | | | 457,000 | | | | 190,424 | | | | 0.02 | |
Brazil (Fed Rep of) 7.125%, 01/20/2037 | | | | | 380,000 | | | | 479,750 | | | | 0.05 | |
Brazil (Fed Rep of) 5.625%, 01/07/2041 | | | | | 440,000 | | | | 476,300 | | | | 0.05 | |
Brazil (Fed Rep of) 5.000%, 01/27/2045 | | | | | 1,400,000 | | | | 1,372,000 | | | | 0.14 | |
Brazil (Rep of) 4.875%, 01/22/2021 | | | | | 652,000 | | | | 702,530 | | | | 0.07 | |
Brazil (Rep of) 8.875%, 04/15/2024 | | | | | 180,000 | | | | 248,400 | | | | 0.03 | |
Brazil (Rep of) 4.250%, 01/07/2025 | | | | | 2,541,000 | | | | 2,581,656 | | | | 0.26 | |
Brazil Letras do Tesouro Nacional 9.660%, 01/01/2017(3) | | BRL | | | 56,370,000 | | | | 17,693,956 | | | | 1.79 | |
See accompanying notes to the financial statements.
86
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Brazil - (continued) | | | | | | | | | | | | | | |
Brazil Notas do Tesouro Nacional, Serie F 10.000%, 01/01/2021 | | BRL | | | 24,157,000 | | | $ | 8,915,823 | | | | 0.90 | |
Brazil Notas do Tesouro Nacional, Serie F 10.000%, 01/01/2023 | | BRL | | | 63,800,000 | | | | 23,125,358 | | | | 2.34 | |
Brazil Notas do Tesouro Nacional, Serie F 10.000%, 01/01/2025 | | BRL | | | 44,976,000 | | | | 16,074,604 | | | | 1.62 | |
Cosan Luxembourg S.A. 9.500%, 03/14/2018 | | BRL | | | 2,200,000 | | | | 804,835 | | | | 0.08 | |
Marfrig Holding Europe B.V. 8.375%, 05/09/2018 | | | | | 1,500,000 | | | | 1,578,750 | | | | 0.16 | |
Marfrig Holding Europe B.V. 6.875%, 06/24/2019 | | | | | 700,000 | | | | 710,500 | | | | 0.07 | |
Marfrig Overseas Ltd. 9.500%, 05/04/2020 | | | | | 1,000,000 | | | | 1,056,250 | | | | 0.11 | |
Minerva Luxembourg S.A. 12.250%, 02/10/2022(4) | | | | | 1,400,000 | | | | 1,617,000 | | | | 0.16 | |
Minerva Luxembourg S.A. 7.750%, 01/31/2023 | | | | | 235,000 | | | | 245,575 | | | | 0.03 | |
Oi S.A. 9.750%, 09/15/2016 | | BRL | | | 1,000,000 | | | | 366,641 | | | | 0.04 | |
| | | | | | | | | 85,326,541 | | | | 8.63 | |
Chile (Cost $9,903,993) | | | | | | | | | | | | | | |
Automotores Gildemeister S.A. 8.250%, 05/24/2021 | | | | | 1,245,000 | | | | 846,600 | | | | 0.08 | |
Automotores Gildemeister S.A. 6.750%, 01/15/2023 | | | | | 400,000 | | | | 268,000 | | | | 0.03 | |
Banco del Estado de Chile 4.125%, 10/07/2020 | | | | | 790,000 | | | | 831,259 | | | | 0.08 | |
Banco del Estado de Chile 3.875%, 02/08/2022 | | | | | 400,000 | | | | 405,168 | | | | 0.04 | |
Bonos de la Tesoreria de la Republica en pesos 6.000%, 01/01/2020 | | CLP | | | 50,000,000 | | | | 94,761 | | | | 0.01 | |
Chile (Rep of) 5.500%, 08/05/2020 | | CLP | | | 280,000,000 | | | | 513,121 | | | | 0.05 | |
Chile (Rep of) 3.250%, 09/14/2021 | | | | | 560,000 | | | | 579,600 | | | | 0.06 | |
Corp. Nacional del Cobre de Chile 7.500%, 01/15/2019 | | | | | 900,000 | | | | 1,084,920 | | | | 0.11 | |
Corp. Nacional del Cobre de Chile 3.750%, 11/04/2020 | | | | | 900,000 | | | | 926,376 | | | | 0.09 | |
Corp. Nacional del Cobre de Chile 3.875%, 11/03/2021 | | | | | 540,000 | | | | 557,730 | | | | 0.06 | |
Empresa Nacional del Petroleo 5.250%, 08/10/2020 | | | | | 250,000 | | | | 270,737 | | | | 0.03 | |
Inversiones Alsacia S.A. 8.000%, 08/18/2018(2) | | | | | 523,944 | | | | 382,479 | | | | 0.04 | |
VTR Finance B.V. 6.875%, 01/15/2024 | | | | | 2,785,000 | | | | 2,924,250 | | | | 0.30 | |
| | | | | | | | | 9,685,001 | | | | 0.98 | |
China (Cost $35,882,904) | | | | | | | | | | | | | | |
21Vianet Group, Inc. 6.875%, 06/26/2017 | | CNY | | | 2,600,000 | | | | 400,173 | | | | 0.04 | |
Agile Property Holdings Ltd. 9.875%, 03/20/2017 | | | | | 520,000 | | | | 507,000 | | | | 0.05 | |
Agile Property Holdings Ltd. 8.875%, 04/28/2017 | | | | | 400,000 | | | | 382,000 | | | | 0.04 | |
Amber Circle Funding Ltd. 3.250%, 12/04/2022 | | | | | 880,000 | | | | 854,383 | | | | 0.09 | |
Central China Real Estate Ltd. 6.500%, 06/04/2018 | | | | | 635,000 | | | | 616,526 | | | | 0.06 | |
Central China Real Estate Ltd. 8.000%, 01/28/2020 | | | | | 482,000 | | | | 472,616 | | | | 0.05 | |
China Hongqiao Group Ltd. 7.625%, 06/26/2017 | | | | | 945,000 | | | | 976,617 | | | | 0.10 | |
China SCE Property Holdings Ltd. 10.500%, 01/14/2016 | | CNY | | | 5,000,000 | | | | 819,477 | | | | 0.08 | |
China SCE Property Holdings Ltd. 11.500%, 11/14/2017 | | | | | 1,665,000 | | | | 1,719,113 | | | | 0.17 | |
China Shanshui Cement Group Ltd. 10.500%, 04/27/2017 | | | | | 930,000 | | | | 1,000,913 | | | | 0.10 | |
CIFI Holdings Group Co. Ltd. 12.250%, 04/15/2018 | | | | | 1,560,000 | | | | 1,755,000 | | | | 0.18 | |
CIFI Holdings Group Co. Ltd. 8.875%, 01/27/2019 | | | | | 550,000 | | | | 563,750 | | | | 0.06 | |
Country Garden Holdings Co. Ltd. 7.250%, 04/04/2021 | | | | | 505,000 | | | | 497,425 | | | | 0.05 | |
Country Garden Holdings Co. Ltd. 7.500%, 01/10/2023 | | | | | 1,366,000 | | | | 1,335,265 | | | | 0.14 | |
Emerald Plantation Holdings Ltd. 6.000%, 01/30/2020(4)(5) | | | | | 265,442 | | | | 211,026 | | | | 0.02 | |
Evergrande Real Estate Group Ltd. 13.000%, 01/27/2015 | | | | | 299,000 | | | | 301,242 | | | | 0.03 | |
Far East Energy Bermuda Ltd. 13.000%, 01/15/2016(5)(6)(7) | | | | | 1,717,379 | | | | 1,717,379 | | | | 0.17 | |
Gemdale International Holding Ltd. 9.150%, 07/26/2015 | | CNY | | | 4,750,000 | | | | 793,521 | | | | 0.08 | |
Hyva Global B.V. 8.625%, 03/24/2016 | | | | | 975,000 | | | | 984,750 | | | | 0.10 | |
Kaisa Group Holdings Ltd. 8.875%, 03/19/2018 | | | | | 885,000 | | | | 893,850 | | | | 0.09 | |
Kaisa Group Holdings Ltd. 9.000%, 06/06/2019 | | | | | 550,000 | | | | 548,526 | | | | 0.06 | |
Kaisa Group Holdings Ltd. 10.250%, 01/08/2020 | | | | | 885,000 | | | | 919,958 | | | | 0.09 | |
See accompanying notes to the financial statements.
87
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
China - (continued) | | | | | | | | | | | | | | |
KWG Property Holding Ltd. 13.250%, 03/22/2017 | | | | | 485,000 | | | $ | 534,712 | | | | 0.05 | |
KWG Property Holding Ltd. 8.975%, 01/14/2019 | | | | | 935,000 | | | | 932,662 | | | | 0.09 | |
Lafarge Shui on Cement Ltd. 9.000%, 11/14/2014 | | CNY | | | 2,750,000 | | | | 449,247 | | | | 0.05 | |
MIE Holdings Corp. 6.875%, 02/06/2018 | | | | | 310,000 | | | | 305,350 | | | | 0.03 | |
MIE Holdings Corp. 7.500%, 04/25/2019 | | | | | 550,000 | | | | 539,000 | | | | 0.06 | |
Sinochem Overseas Capital Co. Ltd. 4.500%, 11/12/2020 | | | | | 4,192,000 | | | | 4,469,037 | | | | 0.45 | |
Sinochem Overseas Capital Co. Ltd. 6.300%, 11/12/2040 | | | | | 1,320,000 | | | | 1,610,062 | | | | 0.16 | |
Sino-Forest Corp. 5.000%, 08/01/2013(6)(7)(8) | | | | | 276,000 | | | | — | | | | — | |
Sino-Forest Corp. 10.250%, 07/28/2014(6)(7)(8) | | | | | 256,000 | | | | — | | | | — | |
Sino-Forest Corp. 4.250%, 12/15/2016(6)(7)(8) | | | | | 704,000 | | | | — | | | | — | |
Sino-Forest Corp. 6.250%, 10/21/2017(6)(7)(8) | | | | | 628,000 | | | | — | | | | — | |
Sunac China Holdings Ltd. 12.500%, 10/16/2017 | | | | | 870,000 | | | | 965,700 | | | | 0.10 | |
Sunac China Holdings Ltd. 9.375%, 04/05/2018 | | | | | 1,515,000 | | | | 1,579,388 | | | | 0.16 | |
Times Property Holdings Ltd. 12.625%, 03/21/2019 | | | | | 915,000 | | | | 968,065 | | | | 0.10 | |
Trillion Chance Ltd. 8.500%, 01/10/2019 | | | | | 1,350,000 | | | | 1,328,901 | | | | 0.13 | |
Yanlord Land Group Ltd. 10.625%, 03/29/2018 | | | | | 920,000 | | | | 982,100 | | | | 0.10 | |
Yingde Gases Investment Ltd. 8.125%, 04/22/2018 | | | | | 960,000 | | | | 998,400 | | | | 0.10 | |
Yuzhou Properties Co. Ltd. 11.750%, 10/25/2017 | | | | | 396,000 | | | | 432,135 | | | | 0.04 | |
Yuzhou Properties Co. Ltd. 8.750%, 10/04/2018 | | | | | 440,000 | | | | 441,100 | | | | 0.05 | |
Yuzhou Properties Co. Ltd. 8.625%, 01/24/2019 | | | | | 1,320,000 | | | | 1,313,400 | | | | 0.13 | |
| | | | | | | | | 36,119,769 | | | | 3.65 | |
Colombia (Cost $51,097,092) | | | | | | | | | | | | | | |
Colombia (Rep of) 12.000%, 10/22/2015 | | COP | | | 1,791,000,000 | | | | 923,138 | | | | 0.09 | |
Colombia (Rep of) 7.375%, 01/27/2017 | | | | | 793,000 | | | | 894,900 | | | | 0.09 | |
Colombia (Rep of) 7.375%, 03/18/2019 | | | | | 3,300,000 | | | | 3,956,700 | | | | 0.40 | |
Colombia (Rep of) 11.750%, 02/25/2020 | | | | | 465,000 | | | | 661,462 | | | | 0.07 | |
Colombia (Rep of) 7.750%, 04/14/2021 | | COP | | | 5,424,000,000 | | | | 2,868,986 | | | | 0.29 | |
Colombia (Rep of) 4.375%, 03/21/2023 | | COP | | | 221,000,000 | | | | 94,791 | | | | 0.01 | |
Colombia (Rep of) 4.000%, 02/26/2024 | | | | | 530,000 | | | | 543,780 | | | | 0.05 | |
Colombia (Rep of) 8.125%, 05/21/2024 | | | | | 498,000 | | | | 663,585 | | | | 0.07 | |
Colombia (Rep of) 9.850%, 06/28/2027 | | COP | | | 1,332,000,000 | | | | 828,462 | | | | 0.08 | |
Colombia (Rep of) 7.375%, 09/18/2037 | | | | | 2,945,000 | | | | 3,968,387 | | | | 0.40 | |
Colombia (Rep of) 6.125%, 01/18/2041 | | | | | 1,502,000 | | | | 1,802,400 | | | | 0.18 | |
Colombia Telecomunicaciones S.A. ESP 5.375%, 09/27/2022 | | | | | 1,285,000 | | | | 1,304,275 | | | | 0.13 | |
Colombian TES 8.000%, 10/28/2015 | | COP | | | 294,800,000 | | | | 147,752 | | | | 0.01 | |
Colombian TES 7.000%, 09/11/2019 | | COP | | | 3,500,900,000 | | | | 1,795,745 | | | | 0.18 | |
Colombian TES 7.000%, 05/04/2022 | | COP | | | 17,980,600,000 | | | | 8,995,631 | | | | 0.91 | |
Colombian TES 10.000%, 07/24/2024 | | COP | | | 4,874,400,000 | | | | 2,936,888 | | | | 0.30 | |
Colombian TES 7.500%, 08/26/2026 | | COP | | | 4,607,500,000 | | | | 2,345,649 | | | | 0.24 | |
Colombian TES 6.000%, 04/28/2028 | | COP | | | 12,910,900,000 | | | | 5,712,485 | | | | 0.58 | |
Emgesa S.A. ESP 8.750%, 01/25/2021 | | COP | | | 818,000,000 | | | | 426,433 | | | | 0.04 | |
Empresa de Telecomunicaciones de Bogota 7.000%, 01/17/2023 | | COP | | | 1,416,000,000 | | | | 648,642 | | | | 0.07 | |
Empresas Publicas de Medellin ESP 8.375%, 02/01/2021 | | COP | | | 1,306,000,000 | | | | 676,010 | | | | 0.07 | |
Millicom International Cellular S.A. 4.750%, 05/22/2020 | | | | | 380,000 | | | | 375,250 | | | | 0.04 | |
Millicom International Cellular S.A. 6.625%, 10/15/2021 | | | | | 1,205,000 | | | | 1,289,350 | | | | 0.13 | |
Pacific Rubiales Energy Corp 5.125%, 03/28/2023 | | | | | 800,000 | | | | 766,000 | | | | 0.08 | |
Pacific Rubiales Energy Corp. 5.375%, 01/26/2019 | | | | | 495,000 | | | | 496,238 | | | | 0.05 | |
Pacific Rubiales Energy Corp. 7.250%, 12/12/2021 | | | | | 1,430,000 | | | | 1,526,525 | | | | 0.15 | |
Pacific Rubiales Energy Corp. 5.625%, 01/19/2025(6)(7) | | | | | 1,955,000 | | | | 1,859,107 | | | | 0.19 | |
| | | | | | | | | 48,508,571 | | | | 4.90 | |
See accompanying notes to the financial statements.
88
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Costa Rica (Cost $4,597,178) | | | | | | | | | | | | | | |
Costa Rica (Rep of) 4.250%, 01/26/2023 | | | | | 2,995,000 | | | $ | 2,845,250 | | | | 0.29 | |
Costa Rica (Rep of) 4.375%, 04/30/2025 | | | | | 450,000 | | | | 418,500 | | | | 0.04 | |
Costa Rica (Rep of) 5.625%, 04/30/2043 | | | | | 420,000 | | | | 367,500 | | | | 0.04 | |
Instituto Costarricense de Electricidad 6.950%, 11/10/2021 | | | | | 200,000 | | | | 211,500 | | | | 0.02 | |
Instituto Costarricense de Electricidad 6.375%, 05/15/2043 | | | | | 900,000 | | | | 778,500 | | | | 0.08 | |
| | | | | | | | | 4,621,250 | | | | 0.47 | |
Croatia (Cost $5,858,048) | | | | | | | | | | | | | | |
Croatia (Rep of) 6.250%, 04/27/2017 | | | | | 560,000 | | | | 599,726 | | | | 0.06 | |
Croatia (Rep of) 6.750%, 11/05/2019 | | | | | 1,340,000 | | | | 1,485,725 | | | | 0.15 | |
Croatia (Rep of) 6.625%, 07/14/2020 | | | | | 2,675,000 | | | | 2,967,592 | | | | 0.30 | |
Croatia (Rep of) 6.375%, 03/24/2021 | | | | | 879,000 | | | | 965,801 | | | | 0.10 | |
| | | | | | | | | 6,018,844 | | | | 0.61 | |
Czech Republic (Cost $1,980,058) | | | | | | | | | | | | | | |
New World Resources N.V. 8.000%, 04/07/2020(5)(6)(7) | | EUR | | | 1,497,423 | | | | 1,501,196 | | | | 0.15 | |
New World Resources N.V. 4.000%, 10/07/2020(5)(6)(7) | | EUR | | | 574,012 | | | | 330,889 | | | | 0.04 | |
| | | | | | | | | 1,832,085 | | | | 0.19 | |
Dominican Republic (Cost $5,984,288) | | | | | | | | | | | | | | |
Dominican (Rep of) 7.500%, 05/06/2021 | | | | | 1,473,000 | | | | 1,675,537 | | | | 0.17 | |
Dominican (Rep of) 6.600%, 01/28/2024 | | | | | 890,000 | | | | 985,675 | | | | 0.10 | |
Dominican (Rep of) 5.875%, 04/18/2024 | | | | | 2,359,000 | | | | 2,488,745 | | | | 0.25 | |
Dominican (Rep of) 7.450%, 04/30/2044 | | | | | 940,000 | | | | 1,050,450 | | | | 0.11 | |
| | | | | | | | | 6,200,407 | | | | 0.63 | |
Ecuador (Cost $4,023,102) | | | | | | | | | | | | | | |
Ecuador (Rep of) 9.375%, 12/15/2015 | | | | | 819,000 | | | | 851,760 | | | | 0.09 | |
Ecuador Government International Bond 7.950%, 06/20/2024 | | | | | 2,968,000 | | | | 3,108,980 | | | | 0.31 | |
| | | | | | | | | 3,960,740 | | | | 0.40 | |
Egypt (Cost $2,051,122) | | | | | | | | | | | | | | |
Egypt (Rep of) 5.750%, 04/29/2020 | | | | | 1,440,000 | | | | 1,524,888 | | | | 0.15 | |
Egypt (Rep of) 6.875%, 04/30/2040 | | | | | 675,000 | | | | 686,812 | | | | 0.07 | |
| | | | | | | | | 2,211,700 | �� | | | 0.22 | |
El Salvador (Cost $3,393,943) | | | | | | | | | | | | | | |
El Salvador (Rep of) 7.375%, 12/01/2019 | | | | | 1,060,000 | | | | 1,179,250 | | | | 0.12 | |
El Salvador (Rep of) 5.875%, 01/30/2025 | | | | | 710,000 | | | | 708,225 | | | | 0.07 | |
El Salvador (Rep of) 6.375%, 01/18/2027(6) | | | | | 190,000 | | | | 194,750 | | | | 0.02 | |
El Salvador (Rep of) 8.250%, 04/10/2032 | | | | | 265,000 | | | | 308,725 | | | | 0.03 | |
El Salvador (Rep of) 7.650%, 06/15/2035 | | | | | 180,000 | | | | 196,200 | | | | 0.02 | |
El Salvador (Rep of) 7.625%, 02/01/2041 | | | | | 880,000 | | | | 950,400 | | | | 0.10 | |
| | | | | | | | | 3,537,550 | | | | 0.36 | |
Gabon (Cost $3,271,172) | | | | | | | | | | | | | | |
Gabonese (Rep of) 6.375%, 12/12/2024 | | | | | 3,102,700 | | | | 3,288,862 | | | | 0.33 | |
| | | | | | | | | 3,288,862 | | | | 0.33 | |
Georgia (Cost $2,038,432) | | | | | | | | | | | | | | |
Georgia (Rep of) 6.875%, 04/12/2021 | | | | | 560,000 | | | | 631,512 | | | | 0.06 | |
Georgian Railway JSC 7.750%, 07/11/2022 | | | | | 1,300,000 | | | | 1,456,260 | | | | 0.15 | |
| | | | | | | | | 2,087,772 | | | | 0.21 | |
Ghana (Cost $924,590) | | | | | | | | | | | | | | |
Tullow Oil PLC 6.000%, 11/01/2020 | | | | | 450,000 | | | | 420,750 | | | | 0.04 | |
Tullow Oil PLC 6.250%, 04/15/2022 | | | | | 470,000 | | | | 437,100 | | | | 0.05 | |
| | | | | | | | | 857,850 | | | | 0.09 | |
See accompanying notes to the financial statements.
89
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Guatemala (Cost $2,864,160) | | | | | | | | | | | | | | |
Comcel Trust 6.875%, 02/06/2024 | | | | | 1,670,000 | | | $ | 1,786,900 | | | | 0.18 | |
Guatemala (Rep of) 4.875%, 02/13/2028 | | | | | 1,100,000 | | | | 1,124,750 | | | | 0.11 | |
| | | | | | | | | 2,911,650 | | | | 0.29 | |
Hong Kong (Cost $1,533,578) | | | | | | | | | | | | | | |
CFG Investment S.A.C. 9.750%, 07/30/2019 | | | | | 566,000 | | | | 517,890 | | | | 0.05 | |
Shimao Property Holdings Ltd. 6.625%, 01/14/2020 | | | | | 995,000 | | | | 985,050 | | | | 0.10 | |
| | | | | | | | | 1,502,940 | | | | 0.15 | |
Hungary (Cost $24,215,597) | | | | | | | | | | | | | | |
Hungary (Rep of) 4.750%, 02/03/2015 | | | | | 344,000 | | | | 347,079 | | | | 0.04 | |
Hungary (Rep of) 6.750%, 11/24/2017 | | HUF | | | 878,430,000 | | | | 4,007,635 | | | | 0.41 | |
Hungary (Rep of) 4.125%, 02/19/2018 | | | | | 1,778,000 | | | | 1,836,212 | | | | 0.19 | |
Hungary (Rep of) 6.500%, 06/24/2019 | | HUF | | | 235,560,000 | | | | 1,098,066 | | | | 0.11 | |
Hungary (Rep of) 6.250%, 01/29/2020 | | | | | 1,140,000 | | | | 1,281,075 | | | | 0.13 | |
Hungary (Rep of) 7.000%, 06/24/2022 | | HUF | | | 400,940,000 | | | | 1,978,735 | | | | 0.20 | |
Hungary (Rep of) 5.375%, 02/21/2023 | | | | | 2,980,000 | | | | 3,203,500 | | | | 0.32 | |
Hungary (Rep of) 5.750%, 11/22/2023 | | | | | 3,000,000 | | | | 3,300,000 | | | | 0.33 | |
Hungary (Rep of) 6.000%, 11/24/2023 | | HUF | | | 484,090,000 | | | | 2,283,368 | | | | 0.23 | |
Hungary (Rep of) 5.375%, 03/25/2024 | | | | | 1,590,000 | | | | 1,701,459 | | | | 0.17 | |
Hungary (Rep of) 7.625%, 03/29/2041 | | | | | 2,986,000 | | | | 3,859,405 | | | | 0.39 | |
| | | | | | | | | 24,896,534 | | | | 2.52 | |
India (Cost $6,628,698) | | | | | | | | | | | | | | |
Export-Import Bank of India 4.000%, 08/07/2017 | | | | | 400,000 | | | | 417,520 | | | | 0.04 | |
Export-Import Bank of India 4.000%, 01/14/2023 | | | | | 828,000 | | | | 827,147 | | | | 0.08 | |
Vedanta Resources PLC 9.500%, 07/18/2018 | | | | | 1,470,000 | | | | 1,672,125 | | | | 0.17 | |
Vedanta Resources PLC 6.000%, 01/31/2019 | | | | | 370,000 | | | | 377,400 | | | | 0.04 | |
Vedanta Resources PLC 8.250%, 06/07/2021 | | | | | 1,690,000 | | | | 1,842,100 | | | | 0.19 | |
Vedanta Resources PLC 7.125%, 05/31/2023 | | | | | 1,345,000 | | | | 1,368,538 | | | | 0.14 | |
| | | | | | | | | 6,504,830 | | | | 0.66 | |
Indonesia (Cost $29,015,844) | | | | | | | | | | | | | | |
Berau Capital Resources Pte Ltd. 12.500%, 07/08/2015 | | | | | 500,000 | | | | 385,000 | | | | 0.04 | |
Berau Coal Energy Tbk PT 7.250%, 03/13/2017 | | | | | 1,450,000 | | | | 993,250 | | | | 0.10 | |
Enercoal Resources Pte Ltd. 9.250%, 04/07/2018 | | | | | 200,000 | | | | 74,000 | | | | 0.01 | |
Golden Legacy PTE Ltd. 9.000%, 04/24/2019 | | | | | 335,000 | | | | 351,787 | | | | 0.04 | |
Indo Energy Finance II B.V. 6.375%, 01/24/2023 | | | | | 1,797,000 | | | | 1,451,078 | | | | 0.15 | |
Indonesia (Rep of) 6.250%, 04/15/2017 | | IDR | | | 5,390,000,000 | | | | 431,668 | | | | 0.04 | |
Indonesia (Rep of) 6.875%, 01/17/2018 | | | | | 525,000 | | | | 592,620 | | | | 0.06 | |
Indonesia (Rep of) 11.625%, 03/04/2019 | | | | | 1,640,000 | | | | 2,197,600 | | | | 0.22 | |
Indonesia (Rep of) 7.875%, 04/15/2019 | | IDR | | | 14,000,000,000 | | | | 1,159,619 | | | | 0.12 | |
Indonesia (Rep of) 5.875%, 03/13/2020 | | | | | 464,000 | | | | 519,100 | | | | 0.05 | |
Indonesia (Rep of) 4.875%, 05/05/2021 | | | | | 510,000 | | | | 545,063 | | | | 0.06 | |
Indonesia (Rep of) 8.375%, 03/15/2024 | | IDR | | | 24,775,000,000 | | | | 2,094,138 | | | | 0.21 | |
Indonesia (Rep of) 7.000%, 05/15/2027 | | IDR | | | 4,902,000,000 | | | | 365,470 | | | | 0.04 | |
Indonesia (Rep of) 9.000%, 03/15/2029 | | IDR | | | 48,253,000,000 | | | | 4,193,719 | | | | 0.42 | |
Indonesia (Rep of) 8.375%, 03/15/2034 | | IDR | | | 65,660,000,000 | | | | 5,395,149 | | | | 0.55 | |
Indonesia (Rep of) 7.750%, 01/17/2038 | | | | | 290,000 | | | | 381,713 | | | | 0.04 | |
Majapahit Holding B.V. 7.750%, 10/17/2016 | | | | | 935,000 | | | | 1,028,500 | | | | 0.10 | |
Majapahit Holding B.V. 8.000%, 08/07/2019 | | | | | 1,170,000 | | | | 1,371,825 | | | | 0.14 | |
Majapahit Holding B.V. 7.750%, 01/20/2020 | | | | | 740,000 | | | | 861,175 | | | | 0.09 | |
Pertamina Persero PT 6.000%, 05/03/2042 | | | | | 1,335,000 | | | | 1,335,000 | | | | 0.13 | |
Perusahaan Listrik Negara PT 5.500%, 11/22/2021 | | | | | 1,720,000 | | | | 1,827,500 | | | | 0.18 | |
Perusahaan Penerbit SBSN Indonesia 6.125%, 03/15/2019 | | | | | 650,000 | | | | 721,500 | | | | 0.07 | |
| | | | | | | | | 28,276,474 | | | | 2.86 | |
Iraq (Cost $3,085,459) | | | | | | | | | | | | | | |
Genel Energy Finance PLC 7.500%, 05/14/2019 | | | | | 1,000,000 | | | | 952,500 | | | | 0.10 | |
See accompanying notes to the financial statements.
90
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Iraq - (continued) | | | | | | | | | | | | | | | | |
Iraq (Rep of) 5.800%, 01/15/2028 | | | | | | | 2,370,000 | | | $ | 2,091,525 | | | | 0.21 | |
| | | | | | | | | | | 3,044,025 | | | | 0.31 | |
Ivory Coast (Cost $10,573,163) | | | | | | | | | | | | | | | | |
Ivory Coast (Rep of) 5.375%, 07/23/2024 | | | | | | | 820,000 | | | | 789,414 | | | | 0.08 | |
Ivory Coast (Rep of), FRN 5.750%, 12/31/2032 | | | | | | | 10,695,000 | | | | 10,322,814 | | | | 1.04 | |
| | | | | | | | | | | 11,112,228 | | | | 1.12 | |
Jamaica (Cost $10,672,193) | | | | | | | | | | | | | | | | |
Digicel Group Ltd. 8.875%, 01/15/2015 | | | | | | | 6,150,000 | | | | 6,426,750 | | | | 0.65 | |
Digicel Group Ltd. 7.125%, 04/01/2022 | | | | | | | 1,450,000 | | | | 1,457,250 | | | | 0.15 | |
Digicel Ltd. 6.000%, 04/15/2021 | | | | | | | 2,410,000 | | | | 2,434,100 | | | | 0.24 | |
| | | | | | | | | | | 10,318,100 | | | | 1.04 | |
Kazakhstan (Cost $23,492,686) | | | | | | | | | | | | | | | | |
Development Bank of Kazakhstan JSC 4.125%, 12/10/2022 | | | | | | | 2,880,000 | | | | 2,725,200 | | | | 0.28 | |
KazAgro National Management Holding JSC 4.625%, 05/24/2023 | | | | | | | 510,000 | | | | 490,875 | | | | 0.05 | |
Kazakhstan Government International Bond 4.875%, 10/14/2044(6)(7) | | | | | | | 410,000 | | | | 395,650 | | | | 0.04 | |
Kazakhstan Temir Zholy Finance B.V. 6.375%, 10/06/2020 | | | | | | | 466,000 | | | | 509,105 | | | | 0.05 | |
Kazakhstan Temir Zholy Finance B.V. 6.950%, 07/10/2042 | | | | | | | 1,101,000 | | | | 1,227,615 | | | | 0.12 | |
Kazatomprom Natsionalnaya Atomnaya Kompaniya A.O.
6.250%, 05/20/2015 | | | | | | | 1,095,000 | | | | 1,112,914 | | | | 0.11 | |
Kazkommertsbank JSC 8.000%, 11/03/2015 | | | | | | | 1,060,000 | | | | 1,060,000 | | | | 0.11 | |
Kazkommertsbank JSC 7.500%, 11/29/2016 | | | | | | | 1,435,000 | | | | 1,424,238 | | | | 0.14 | |
Kazkommertsbank JSC 6.875%, 02/13/2017 | | | EUR | | | | 1,340,000 | | | | 1,670,825 | | | | 0.17 | |
Kazkommertsbank JSC 8.500%, 05/11/2018 | | | | | | | 915,000 | | | | 909,464 | | | | 0.09 | |
KazMunayGas Co. JSC 6.000%, 11/07/2044 | | | | | | | 300,000 | | | | 300,000 | | | | 0.03 | |
KazMunayGas National Co. JSC 11.750%, 01/23/2015 | | | | | | | 1,013,000 | | | | 1,033,898 | | | | 0.10 | |
KazMunayGas National Co. JSC 9.125%, 07/02/2018 | | | | | | | 551,000 | | | | 651,558 | | | | 0.07 | |
KazMunayGas National Co. JSC 7.000%, 05/05/2020 | | | | | | | 1,860,000 | | | | 2,095,290 | | | | 0.21 | |
KazMunayGas National Co. JSC 6.375%, 04/09/2021 | | | | | | | 440,000 | | | | 482,900 | | | | 0.05 | |
KazMunayGas National Co. JSC 4.400%, 04/30/2023 | | | | | | | 2,900,000 | | | | 2,847,800 | | | | 0.29 | |
KazMunayGas National Co. JSC 5.750%, 04/30/2043 | | | | | | | 1,450,000 | | | | 1,410,125 | | | | 0.14 | |
Nostrum Oil & Gas Finance B.V. 6.375%, 02/14/2019 | | | | | | | 1,190,000 | | | | 1,192,975 | | | | 0.12 | |
Zhaikmunai LLP 7.125%, 11/13/2019 | | | | | | | 1,680,000 | | | | 1,747,200 | | | | 0.18 | |
| | | | | | | | | | | 23,287,632 | | | | 2.35 | |
Kenya (Cost $830,301) | | | | | | | | | | | | | | | | |
Kenya Government International Bond 6.875%, 06/24/2024 | | | | | | | 780,000 | | | | 830,700 | | | | 0.08 | |
| | | | | | | | | | | 830,700 | | | | 0.08 | |
Latvia (Cost $1,613,015) | | | | | | | | | | | | | | | | |
Latvia (Rep of) 2.750%, 01/12/2020 | | | | | | | 1,650,000 | | | | 1,631,438 | | | | 0.17 | |
| | | | | | | | | | | 1,631,438 | | | | 0.17 | |
Lebanon (Cost $11,205,118) | | | | | | | | | | | | | | | | |
Lebanon (Rep of) 4.100%, 06/12/2015 | | | | | | | 722,000 | | | | 724,722 | | | | 0.07 | |
Lebanon (Rep of) 5.150%, 11/12/2018 | | | | | | | 520,000 | | | | 523,900 | | | | 0.05 | |
Lebanon (Rep of) 5.450%, 11/28/2019 | | | | | | | 520,000 | | | | 523,900 | | | | 0.05 | |
Lebanon (Rep of) 6.375%, 03/09/2020 | | | | | | | 1,574,000 | | | | 1,644,830 | | | | 0.17 | |
Lebanon (Rep of) 8.250%, 04/12/2021 | | | | | | | 562,000 | | | | 644,192 | | | | 0.07 | |
Lebanon (Rep of) 6.100%, 10/04/2022 | | | | | | | 2,637,000 | | | | 2,689,740 | | | | 0.27 | |
Lebanon (Rep of) 6.000%, 01/27/2023 | | | | | | | 1,000,000 | | | | 1,011,450 | | | | 0.10 | |
Lebanon (Rep of) 6.600%, 11/27/2026 | | | | | | | 3,532,000 | | | | 3,602,640 | | | | 0.37 | |
| | | | | | | | | | | 11,365,374 | | | | 1.15 | |
Lithuania (Cost $5,980,703) | | | | | | | | | | | | | | | | |
Lithuania (Rep of) 5.125%, 09/14/2017 | | | | | | | 690,000 | | | | 755,826 | | | | 0.08 | |
See accompanying notes to the financial statements.
91
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Lithuania - (continued) | | | | | | | | | | | | | | |
Lithuania (Rep of) 7.375%, 02/11/2020 | | | | | 2,058,000 | | | $ | 2,490,180 | | | | 0.25 | |
Lithuania (Rep of) 6.125%, 03/09/2021 | | | | | 520,000 | | | | 605,800 | | | | 0.06 | |
Lithuania (Rep of) 6.625%, 02/01/2022 | | | | | 1,861,000 | | | | 2,242,505 | | | | 0.23 | |
| | | | | | | | | 6,094,311 | | | | 0.62 | |
Malaysia (Cost $27,232,779) | | | | | | | | | | | | | | |
Malaysia (Govt of) 4.012%, 09/15/2017 | | MYR | | | 10,249,000 | | | | 3,151,890 | | | | 0.32 | |
Malaysia (Govt of) 3.580%, 09/28/2018 | | MYR | | | 8,200,000 | | | | 2,490,215 | | | | 0.25 | |
Malaysia (Govt of) 3.492%, 03/31/2020 | | MYR | | | 10,572,000 | | | | 3,184,923 | | | | 0.32 | |
Malaysia (Rep of) 3.394%, 03/15/2017 | | MYR | | | 11,290,000 | | | | 3,421,887 | | | | 0.35 | |
Malaysia (Rep of) 3.654%, 10/31/2019 | | MYR | | | 11,250,000 | | | | 3,420,841 | | | | 0.35 | |
Malaysia (Rep of) 4.378%, 11/29/2019 | | MYR | | | 939,000 | | | | 294,404 | | | | 0.03 | |
Malaysia (Rep of) 4.160%, 07/15/2021 | | MYR | | | 4,258,000 | | | | 1,323,864 | | | | 0.13 | |
Malaysia (Rep of) 4.048%, 09/30/2021 | | MYR | | | 6,513,000 | | | | 2,012,437 | | | | 0.20 | |
Malaysia (Rep of) 3.418%, 08/15/2022 | | MYR | | | 8,850,000 | | | | 2,617,526 | | | | 0.26 | |
Malaysia (Rep of) 4.181%, 07/15/2024 | | MYR | | | 2,241,000 | | | | 698,644 | | | | 0.07 | |
Malaysia (Rep of) 4.392%, 04/15/2026 | | MYR | | | 2,550,000 | | | | 799,151 | | | | 0.08 | |
Malaysia (Rep of) 3.502%, 05/31/2027 | | MYR | | | 650,000 | | | | 186,388 | | | | 0.02 | |
Malaysia (Rep of) 5.248%, 09/15/2028 | | MYR | | | 910,000 | | | | 306,444 | | | | 0.03 | |
Malaysia (Rep of) 4.498%, 04/15/2030 | | MYR | | | 1,100,000 | | | | 346,692 | | | | 0.04 | |
Petronas Capital Ltd. 5.250%, 08/12/2019 | | | | | 660,000 | | | | 741,340 | | | | 0.08 | |
Petronas Capital Ltd. 7.875%, 05/22/2022 | | | | | 310,000 | | | | 406,242 | | | | 0.04 | |
Wakala Global Sukuk Bhd. 4.646%, 07/06/2021 | | | | | 1,080,000 | | | | 1,192,320 | | | | 0.12 | |
| | | | | | | | | 26,595,208 | | | | 2.69 | |
Mexico (Cost $61,721,701) | | | | | | | | | | | | | | |
America Movil S.A.B. de C.V. 6.450%, 12/05/2022 | | MXN | | | 9,860,000 | | | | 718,728 | | | | 0.07 | |
CEMEX Espana S.A. 9.875%, 04/30/2019 | | | | | 880,000 | | | | 981,376 | | | | 0.10 | |
Cemex Finance LLC 9.375%, 10/12/2022 | | | | | 2,845,000 | | | | 3,278,863 | | | | 0.33 | |
Cemex S.A.B. de C.V. 5.875%, 03/25/2019 | | | | | 560,000 | | | | 580,300 | | | | 0.06 | |
Cemex S.A.B. de C.V. 6.500%, 12/10/2019 | | | | | 1,345,000 | | | | 1,440,831 | | | | 0.15 | |
Cemex S.A.B. de C.V. 7.250%, 01/15/2021 | | | | | 435,000 | | | | 469,256 | | | | 0.05 | |
Cemex S.A.B. de C.V. 5.700%, 01/11/2025(6) | | | | | 365,000 | | | | 357,591 | | | | 0.04 | |
Comision Federal de Electricidad 4.875%, 05/26/2021 | | | | | 1,155,000 | | | | 1,230,075 | | | | 0.12 | |
Comision Federal de Electricidad 4.875%, 01/15/2024 | | | | | 980,000 | | | | 1,033,900 | | | | 0.10 | |
Comision Federal de Electricidad 5.750%, 02/14/2042 | | | | | 570,000 | | | | 602,775 | | | | 0.06 | |
Corp. GEO S.A.B. de C.V. 8.875%, 03/27/2022(2) | | | | | 1,400,000 | | | | 119,000 | | | | 0.01 | |
Desarrolladora Homex S.A.B. de C.V. 9.750%, 03/25/2020(2) | | | | | 1,250,000 | | | | 144,375 | | | | 0.01 | |
Empresas ICA S.A.B. de C.V. 8.900%, 02/04/2021 | | | | | 1,275,000 | | | | 1,348,313 | | | | 0.14 | |
Empresas ICA S.A.B. de C.V. 8.875%, 05/29/2024 | | | | | 1,265,000 | | | | 1,283,975 | | | | 0.13 | |
Grupo Televisa S.A.B. 7.250%, 05/14/2043 | | MXN | | | 5,000,000 | | | | 316,552 | | | | 0.03 | |
Mexican Bonos 10.000%, 12/05/2024 | | MXN | | | 11,850,000 | | | | 1,150,329 | | | | 0.12 | |
Mexican Bonos 7.500%, 06/03/2027 | | MXN | | | 74,580,000 | | | | 6,119,384 | | | | 0.62 | |
Mexican Bonos 8.500%, 05/31/2029 | | MXN | | | 76,390,000 | | | | 6,748,125 | | | | 0.68 | |
Mexican Bonos 7.750%, 05/29/2031 | | MXN | | | 77,250,000 | | | | 6,394,714 | | | | 0.65 | |
Mexican Bonos 10.000%, 11/20/2036 | | MXN | | | 30,340,000 | | | | 3,089,776 | | | | 0.31 | |
Mexican Bonos 8.500%, 11/18/2038 | | MXN | | | 18,550,000 | | | | 1,658,398 | | | | 0.17 | |
Mexican Bonos 7.750%, 11/13/2042 | | MXN | | | 19,690,000 | | | | 1,635,042 | | | | 0.16 | |
Mexican Udibonos 4.000%, 11/15/2040 | | MXN | | | 10,100,000 | | | | 4,273,880 | | | | 0.43 | |
Mexico (Rep of) 5.950%, 03/19/2019 | | | | | 406,000 | | | | 465,885 | | | | 0.05 | |
Mexico (Rep of) 6.750%, 09/27/2034 | | | | | 2,415,000 | | | | 3,118,973 | | | | 0.31 | |
Mexico (Rep of) 6.050%, 01/11/2040 | | | | | 232,000 | | | | 280,140 | | | | 0.03 | |
Mexico (Rep of) 4.750%, 03/08/2044 | | | | | 640,000 | | | | 649,920 | | | | 0.07 | |
Mexico (Rep of) 5.750%, 10/12/2110 | | | | | 568,000 | | | | 601,418 | | | | 0.06 | |
See accompanying notes to the financial statements.
92
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Mexico - (continued) | | | | | | | | | | | | | | |
Petroleos Mexicanos 5.750%, 03/01/2018 | | | | | 704,000 | | | $ | 778,131 | | | | 0.08 | |
Petroleos Mexicanos 8.000%, 05/03/2019 | | | | | 985,000 | | | | 1,196,677 | | | | 0.12 | |
Petroleos Mexicanos 6.000%, 03/05/2020 | | | | | 194,000 | | | | 220,132 | | | | 0.02 | |
Petroleos Mexicanos 7.190%, 09/12/2024 | | MXN | | | 10,270,000 | | | | 772,791 | | | | 0.08 | |
Petroleos Mexicanos 6.500%, 06/02/2041 | | | | | 1,510,000 | | | | 1,766,700 | | | | 0.18 | |
Petroleos Mexicanos 5.500%, 06/27/2044 | | | | | 145,000 | | | | 151,163 | | | | 0.02 | |
Red de Carreteras de Occidente S.A.P.I.B. de C.V. 9.000%, 06/10/2028 | | MXN | | | 2,480,000 | | | | 175,707 | | | | 0.02 | |
Urbi Desarrollos Urbanos S.A.B. de C.V. 8.500%, 04/19/2016(2) | | | | | 129,000 | | | | 12,964 | | | | — | |
Urbi Desarrollos Urbanos S.A.B. de C.V. 9.500%, 01/21/2020(2)(4) | | | | | 1,227,000 | | | | 123,314 | | | | 0.01 | |
Urbi Desarrollos Urbanos S.A.B. de C.V. 9.750%, 02/03/2022(2)(4) | | | | | 3,952,000 | | | | 397,176 | | | | 0.04 | |
| | | | | | | | | 55,686,649 | | | | 5.63 | |
Mongolia (Cost $3,441,792) | | | | | | | | | | | | | | |
Mongolian Mining Corp. 8.875%, 03/29/2017 | | | | | 4,690,000 | | | | 2,907,800 | | | | 0.29 | |
| | | | | | | | | 2,907,800 | | | | 0.29 | |
Morocco (Cost $3,108,795) | | | | | | | | | | | | | | |
Morocco (Rep of) 5.500%, 12/11/2042 | | | | | 200,000 | | | | 203,500 | | | | 0.02 | |
Morocco Government International Bond 4.250%, 12/11/2022 | | | | | 3,035,000 | | | | 3,076,883 | | | | 0.31 | |
| | | | | | | | | 3,280,383 | | | | 0.33 | |
Nigeria (Cost $11,077,737) | | | | | | | | | | | | | | |
Access Bank PLC, FRN 9.250%, 06/24/2021 | | | | | 1,275,000 | | | | 1,281,375 | | | | 0.13 | |
Afren PLC 6.625%, 12/09/2020 | | | | | 450,000 | | | | 421,965 | | | | 0.04 | |
FBN Finance Co. B.V., FRN 8.250%, 08/07/2020 | | | | | 1,000,000 | | | | 997,500 | | | | 0.10 | |
FBN Finance Co. B.V., FRN 8.000%, 07/23/2021 | | | | | 1,030,000 | | | | 1,004,250 | | | | 0.10 | |
Nigeria (Rep of) 16.000%, 06/29/2019 | | NGN | | | 196,954,000 | | | | 1,328,681 | | | | 0.13 | |
Nigeria OMO Bill 10.040%, 11/27/2014(3) | | NGN | | | 192,300,000 | | | | 1,153,142 | | | | 0.12 | |
Nigeria OMO Bill 10.500%, 01/29/2015(3) | | NGN | | | 147,100,000 | | | | 865,671 | | | | 0.09 | |
Nigeria Treasury Bill 10.420%, 01/08/2015(3) | | NGN | | | 185,000,000 | | | | 1,095,929 | | | | 0.11 | |
Sea Trucks Group 9.000%, 03/26/2018(6) | | | | | 2,130,000 | | | | 1,831,800 | | | | 0.19 | |
Seven Energy Ltd. 10.250%, 10/11/2021(6)(9) | | | | | 600,000 | | | | 596,502 | | | | 0.06 | |
| | | | | | | | | 10,576,815 | | | | 1.07 | |
Pakistan (Cost $6,586,405) | | | | | | | | | | | | | | |
Pakistan (Rep of) 7.125%, 03/31/2016 | | | | | 855,000 | | | | 872,100 | | | | 0.09 | |
Pakistan (Rep of) 6.875%, 06/01/2017 | | | | | 1,040,000 | | | | 1,063,400 | | | | 0.11 | |
Pakistan (Rep of) 7.250%, 04/15/2019 | | | | | 2,310,000 | | | | 2,385,075 | | | | 0.24 | |
Pakistan (Rep of) 8.250%, 04/15/2024 | | | | | 2,173,000 | | | | 2,265,352 | | | | 0.23 | |
| | | | | | | | | 6,585,927 | | | | 0.67 | |
Panama (Cost $4,944,855) | | | | | | | | | | | | | | |
Panama (Rep of) 4.000%, 09/22/2024 | | | | | 450,000 | | | | 460,125 | | | | 0.05 | |
Panama (Rep of) 7.125%, 01/29/2026 | | | | | 946,000 | | | | 1,213,245 | | | | 0.12 | |
Panama (Rep of) 8.875%, 09/30/2027 | | | | | 747,000 | | | | 1,070,078 | | | | 0.11 | |
Panama (Rep of) 9.375%, 04/01/2029 | | | | | 829,000 | | | | 1,239,355 | | | | 0.12 | |
Panama (Rep of) 6.700%, 01/26/2036 | | | | | 792,000 | | | | 995,940 | | | | 0.10 | |
Panama (Rep of) 4.300%, 04/29/2053 | | | | | 110,000 | | | | 99,000 | | | | 0.01 | |
| | | | | | | | | 5,077,743 | | | | 0.51 | |
Paraguay (Cost $1,802,826) | | | | | | | | | | | | | | |
Paraguay (Rep of) 4.625%, 01/25/2023 | | | | | 610,000 | | | | 622,810 | | | | 0.06 | |
Telefonica Celular del Paraguay S.A. 6.750%, 12/13/2022 | | | | | 1,135,000 | | | | 1,194,588 | | | | 0.12 | |
| | | | | | | | | 1,817,398 | | | | 0.18 | |
See accompanying notes to the financial statements.
93
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Peru (Cost $14,032,331) | | | | | | | | | | | | | | |
Ajecorp B.V. 6.500%, 05/14/2022 | | | | | 1,405,000 | | | $ | 1,292,600 | | | | 0.13 | |
Peru (Rep of) 7.125%, 03/30/2019 | | | | | 467,000 | | | | 561,567 | | | | 0.06 | |
Peru (Rep of) 5.700%, 08/12/2024 | | PEN | | | 4,800,000 | | | | 1,635,957 | | | | 0.17 | |
Peru (Rep of) 7.350%, 07/21/2025 | | | | | 1,983,000 | | | | 2,622,518 | | | | 0.27 | |
Peru (Rep of) 8.200%, 08/12/2026 | | PEN | | | 6,214,000 | | | | 2,602,099 | | | | 0.26 | |
Peru (Rep of) 6.950%, 08/12/2031 | | PEN | | | 667,000 | | | | 243,264 | | | | 0.02 | |
Peru (Rep of) 8.750%, 11/21/2033 | | | | | 1,786,000 | | | | 2,745,975 | | | | 0.28 | |
Peru (Rep of) 6.900%, 08/12/2037 | | PEN | | | 3,976,000 | | | | 1,431,768 | | | | 0.14 | |
Peru (Rep of) 6.850%, 02/12/2042 | | PEN | | | 1,102,000 | | | | 389,052 | | | | 0.04 | |
Union Andina de Cementos S.A.A. 5.875%, 10/30/2021(6)(7) | | | | | 500,000 | | | | 507,600 | | | | 0.05 | |
| | | | | | | | | 14,032,400 | | | | 1.42 | |
Philippines (Cost $15,337,266) | | | | | | | | | | | | | | |
Petron Corp. 7.000%, 11/10/2017 | | PHP | | | 19,000,000 | | | | 438,632 | | | | 0.04 | |
Philippines (Rep of) 4.000%, 01/15/2021 | | | | | 2,078,000 | | | | 2,226,058 | | | | 0.23 | |
Philippines (Rep of) 4.950%, 01/15/2021 | | PHP | | | 22,000,000 | | | | 507,655 | | | | 0.05 | |
Philippines (Rep of) 3.900%, 11/26/2022 | | PHP | | | 57,000,000 | | | | 1,235,265 | | | | 0.12 | |
Philippines (Rep of) 10.625%, 03/16/2025 | | | | | 417,000 | | | | 659,902 | | | | 0.07 | |
Philippines (Rep of) 5.500%, 03/30/2026 | | | | | 1,050,000 | | | | 1,225,875 | | | | 0.12 | |
Philippines (Rep of) 9.500%, 02/02/2030 | | | | | 1,405,000 | | | | 2,242,731 | | | | 0.23 | |
Philippines (Rep of) 7.750%, 01/14/2031 | | | | | 1,370,000 | | | | 1,945,400 | | | | 0.20 | |
Philippines (Rep of) 6.250%, 01/14/2036 | | PHP | | | 54,000,000 | | | | 1,315,855 | | | | 0.13 | |
Power Sector Assets & Liabilities Management Corp. 7.250%, 05/27/2019 | | | | | 1,760,000 | | | | 2,094,400 | | | | 0.21 | |
Power Sector Assets & Liabilities Management Corp. 7.390%, 12/02/2024 | | | | | 1,132,000 | | | | 1,471,600 | | | | 0.15 | |
| | | | | | | | | 15,363,373 | | | | 1.55 | |
Poland (Cost $25,756,400) | | | | | | | | | | | | | | |
Poland (Rep of) 3.000%, 08/24/2016 | | PLN | | | 2,593,000 | | | | 1,019,015 | | | | 0.10 | |
Poland (Rep of) 4.750%, 04/25/2017 | | PLN | | | 1,465,000 | | | | 465,723 | | | | 0.05 | |
Poland (Rep of) 6.375%, 07/15/2019 | | | | | 1,230,000 | | | | 1,459,334 | | | | 0.15 | |
Poland (Rep of) 5.500%, 10/25/2019 | | PLN | | | 6,124,000 | | | | 2,115,309 | | | | 0.21 | |
Poland (Rep of) 5.250%, 10/25/2020 | | PLN | | | 3,164,000 | | | | 1,103,404 | | | | 0.11 | |
Poland (Rep of) 5.750%, 10/25/2021 | | PLN | | | 7,038,000 | | | | 2,558,228 | | | | 0.26 | |
Poland (Rep of) 5.000%, 03/23/2022 | | | | | 1,240,000 | | | | 1,393,450 | | | | 0.14 | |
Poland (Rep of) 5.750%, 09/23/2022 | | PLN | | | 18,338,000 | | | | 6,759,801 | | | | 0.68 | |
Poland (Rep of) 3.000%, 03/17/2023 | | | | | 960,000 | | | | 951,120 | | | | 0.10 | |
Poland (Rep of) 2.750%, 08/25/2023 | | PLN | | | 1,630,000 | | | | 628,537 | | | | 0.06 | |
Poland (Rep of) 4.000%, 10/25/2023 | | PLN | | | 9,384,000 | | | | 3,127,443 | | | | 0.32 | |
Poland (Rep of) 3.250%, 07/25/2025 | | PLN | | | 7,153,000 | | | | 2,262,049 | | | | 0.23 | |
Poland (Rep of) 5.750%, 04/25/2029 | | PLN | | | 1,425,000 | | | | 573,121 | | | | 0.06 | |
Polish Television Holding B.V. 11.000%, 01/15/2021(5) | | EUR | | | 875,000 | | | | 1,275,237 | | | | 0.13 | |
| | | | | | | | | 25,691,771 | | | | 2.60 | |
Qatar (Cost $2,507,700) | | | | | | | | | | | | | | |
Qatar (Rep of) 6.400%, 01/20/2040 | | | | | 1,559,000 | | | | 1,999,418 | | | | 0.20 | |
Qatar (Rep of) 5.750%, 01/20/2042 | | | | | 488,000 | | | | 578,280 | | | | 0.06 | |
| | | | | | | | | 2,577,698 | | | | 0.26 | |
Romania (Cost $10,509,172) | | | | | | | | | | | | | | |
Romania (Rep of) 5.900%, 07/26/2017 | | RON | | | 4,630,000 | | | | 1,435,394 | | | | 0.14 | |
Romania (Rep of) 5.600%, 11/28/2018 | | RON | | | 860,000 | | | | 271,265 | | | | 0.03 | |
Romania (Rep of) 4.750%, 06/24/2019 | | RON | | | 890,000 | | | | 272,529 | | | | 0.03 | |
Romania (Rep of) 5.750%, 04/29/2020 | | RON | | | 2,160,000 | | | | 693,482 | | | | 0.07 | |
Romania (Rep of) 5.950%, 06/11/2021 | | RON | | | 340,000 | | | | 110,261 | | | | 0.01 | |
Romania (Rep of) 6.750%, 02/07/2022 | | | | | 3,872,000 | | | | 4,638,656 | | | | 0.47 | |
See accompanying notes to the financial statements.
94
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Romania - (continued) | | | | | | | | | | | | | | |
Romania (Rep of) 4.375%, 08/22/2023 | | | | | 2,980,000 | | | $ | 3,102,925 | | | | 0.31 | |
Romania (Rep of) 6.125%, 01/22/2044 | | | | | 240,000 | | | | 281,100 | | | | 0.03 | |
| | | | | | | | | 10,805,612 | | | | 1.09 | |
Russian Federation (Cost $60,289,214) | | | | | | | | | | | | | | |
Alfa Bank OJSC Via Alfa Bond Issuance PLC 7.500%, 09/26/2019 | | | | | 2,445,000 | | | | 2,417,494 | | | | 0.24 | |
Alfa Bank OJSC Via Alfa Bond Issuance PLC 7.750%, 04/28/2021 | | | | | 815,000 | | | | 826,206 | | | | 0.08 | |
Brunswick Rail Finance Ltd. 6.500%, 11/01/2017 | | | | | 1,425,000 | | | | 1,271,813 | | | | 0.13 | |
CEDC Finance Corp. International, Inc., FRN 9.000%, 04/30/2018 | | | | | 1,923,103 | | | | 1,788,486 | | | | 0.18 | |
Credit Bank of Moscow Via CBOM Finance PLC 7.700%, 02/01/2018 | | | | | 1,885,000 | | | | 1,828,450 | | | | 0.18 | |
Far East Capital Ltd. S.A. 8.000%, 05/02/2018 | | | | | 2,055,000 | | | | 1,068,600 | | | | 0.11 | |
Far East Capital Ltd. S.A. 8.750%, 05/02/2020 | | | | | 1,435,000 | | | | 731,850 | | | | 0.07 | |
Metalloinvest Finance Ltd. 5.625%, 04/17/2020 | | | | | 250,000 | | | | 226,563 | | | | 0.02 | |
Mobile Telesystems OJSC 8.150%, 11/03/2020 | | RUB | | | 15,250,000 | | | | 344,993 | | | | 0.04 | |
Russian Agricultural Bank OJSC Via RSHB Capital S.A.
7.750%, 05/29/2018 | | | | | 510,000 | | | | 530,915 | | | | 0.05 | |
Russian Federal Bond - OFZ 7.400%, 06/14/2017 | | RUB | | | 56,777,000 | | | | 1,243,516 | | | | 0.13 | |
Russian Federal Bond - OFZ 6.200%, 01/31/2018 | | RUB | | | 40,189,000 | | | | 838,161 | | | | 0.08 | |
Russian Federal Bond - OFZ 7.500%, 03/15/2018 | | RUB | | | 40,562,000 | | | | 877,062 | | | | 0.09 | |
Russian Federal Bond - OFZ 7.500%, 02/27/2019 | | RUB | | | 55,007,000 | | | | 1,172,777 | | | | 0.12 | |
Russian Federal Bond - OFZ 6.700%, 05/15/2019 | | RUB | | | 26,385,000 | | | | 541,978 | | | | 0.05 | |
Russian Federal Bond - OFZ 6.800%, 12/11/2019 | | RUB | | | 80,834,000 | | | | 1,653,883 | | | | 0.17 | |
Russian Federal Bond - OFZ 6.400%, 05/27/2020 | | RUB | | | 52,811,000 | | | | 1,046,759 | | | | 0.11 | |
Russian Federal Bond - OFZ 7.600%, 04/14/2021 | | RUB | | | 113,664,000 | | | | 2,366,555 | | | | 0.24 | |
Russian Federal Bond - OFZ 7.600%, 07/20/2022 | | RUB | | | 57,090,000 | | | | 1,170,730 | | | | 0.12 | |
Russian Federal Bond - OFZ 7.000%, 01/25/2023 | | RUB | | | 77,332,000 | | | | 1,517,504 | | | | 0.15 | |
Russian Federal Bond - OFZ 7.000%, 08/16/2023 | | RUB | | | 23,336,000 | | | | 456,571 | | | | 0.05 | |
Russian Federal Bond - OFZ 8.150%, 02/03/2027 | | RUB | | | 32,557,000 | | | | 669,152 | | | | 0.07 | |
Russian Federal Bond - OFZ 7.050%, 01/19/2028 | | RUB | | | 89,108,000 | | | | 1,655,356 | | | | 0.17 | |
Russian Foreign Bond - Eurobond 5.000%, 04/29/2020 | | | | | 300,000 | | | | 309,036 | �� | | | 0.03 | |
Russian Foreign Bond - Eurobond, FRN 7.500%, 03/31/2030 | | | | | 5,533,440 | | | | 6,277,632 | | | | 0.63 | |
Russian Foreign Bond - Eurobond 5.625%, 04/04/2042 | | | | | 1,000,000 | | | | 1,009,170 | | | | 0.10 | |
Russian Foreign Bond - Eurobond 5.875%, 09/16/2043 | | | | | 200,000 | | | | 209,000 | | | | 0.02 | |
Russian Standard Bank Via Russian Standard Finance S.A.
9.250%, 07/11/2017 | | | | | 1,505,000 | | | | 1,442,919 | | | | 0.15 | |
Russian Standard Bank Via Russian Standard Finance S.A.
10.750%, 04/10/2018 | | | | | 1,185,000 | | | | 948,000 | | | | 0.10 | |
SUEK Finance 8.250%, 06/26/2020 | | RUB | | | 25,500,000 | | | | 538,455 | | | | 0.05 | |
TMK OAO Via TMK Capital S.A. 7.750%, 01/27/2018 | | | | | 1,255,000 | | | | 1,256,569 | | | | 0.13 | |
TMK OAO Via TMK Capital S.A. 6.750%, 04/03/2020 | | | | | 925,000 | | | | 833,656 | | | | 0.08 | |
Vimpel Communications Via VIP Finance Ireland Ltd.
OJSC 7.748%, 02/02/2021 | | | | | 1,970,000 | | | | 2,004,475 | | | | 0.20 | |
VimpelCom Holdings B.V. 9.000%, 02/13/2018 | | RUB | | | 35,000,000 | | | | 750,124 | | | | 0.08 | |
VimpelCom Holdings B.V. 7.504%, 03/01/2022 | | | | | 2,170,000 | | | | 2,164,575 | | | | 0.22 | |
VimpelCom Holdings B.V. 5.950%, 02/13/2023 | | | | | 1,585,000 | | | | 1,456,346 | | | | 0.15 | |
Vnesheconombank Via VEB Finance PLC 5.450%, 11/22/2017 | | | | | 1,257,000 | | | | 1,258,508 | | | | 0.13 | |
See accompanying notes to the financial statements.
95
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Russian Federation - (continued) | | | | | | | | | | | | | | |
Vnesheconombank Via VEB Finance PLC 6.902%, 07/09/2020 | | | | | 3,284,000 | | | $ | 3,353,785 | | | | 0.34 | |
Vnesheconombank Via VEB Finance PLC 5.942%, 11/21/2023 | | | | | 520,000 | | | | 490,178 | | | | 0.05 | |
Vnesheconombank Via VEB Finance PLC 6.800%, 11/22/2025 | | | | | 1,547,000 | | | | 1,529,596 | | | | 0.15 | |
| | | | | | | | | 52,077,398 | | | | 5.26 | |
Senegal (Cost $936,753) | | | | | | | | | | | | | | |
Senegal Government International Bond 8.750%, 05/13/2021 | | | | | 830,000 | | | | 950,350 | | | | 0.10 | |
| | | | | | | | | 950,350 | | | | 0.10 | |
Serbia (Cost $5,785,464) | | | | | | | | | | | | | | |
Serbia (Rep of) 5.875%, 12/03/2018 | | | | | 770,000 | | | | 815,723 | | | | 0.08 | |
Serbia (Rep of) 4.875%, 02/25/2020 | | | | | 2,110,000 | | | | 2,141,650 | | | | 0.22 | |
Serbia (Rep of) 7.250%, 09/28/2021 | | | | | 2,610,000 | | | | 3,000,195 | | | | 0.30 | |
| | | | | | | | | 5,957,568 | | | | 0.60 | |
South Africa (Cost $67,894,766) | | | | | | | | | | | | | | |
Edcon Pty Ltd. 9.500%, 03/01/2018 | | EUR | | | 3,105,000 | | | | 3,210,100 | | | | 0.32 | |
South Africa (Rep of) 8.250%, 09/15/2017 | | ZAR | | | 103,847,410 | | | | 9,782,685 | | | | 0.99 | |
South Africa (Rep of) 8.000%, 12/21/2018 | | ZAR | | | 85,597,600 | | | | 8,024,549 | | | | 0.81 | |
South Africa (Rep of) 6.875%, 05/27/2019 | | | | | 690,000 | | | | 792,638 | | | | 0.08 | |
South Africa (Rep of) 5.500%, 03/09/2020 | | | | | 3,666,000 | | | | 4,018,853 | | | | 0.41 | |
South Africa (Rep of) 5.875%, 05/30/2022 | | | | | 1,160,000 | | | | 1,310,800 | | | | 0.13 | |
South Africa (Rep of) 7.750%, 02/28/2023 | | ZAR | | | 91,307,740 | | | | 8,308,116 | | | | 0.84 | |
South Africa (Rep of) 10.500%, 12/21/2026 | | ZAR | | | 75,456,760 | | | | 8,212,180 | | | | 0.83 | |
South Africa (Rep of) 8.000%, 01/31/2030 | | ZAR | | | 29,655,970 | | | | 2,623,121 | | | | 0.27 | |
South Africa (Rep of) 7.000%, 02/28/2031 | | ZAR | | | 107,902,380 | | | | 8,609,005 | | | | 0.87 | |
South Africa (Rep of) 6.250%, 03/31/2036 | | ZAR | | | 28,039,460 | | | | 1,981,314 | | | | 0.20 | |
South Africa (Rep of) 8.500%, 01/31/2037 | | ZAR | | | 10,700,000 | | | | 958,171 | | | | 0.10 | |
South Africa (Rep of) 6.500%, 02/28/2041 | | ZAR | | | 23,712,900 | | | | 1,672,948 | | | | 0.17 | |
South Africa (Rep of) 8.750%, 02/28/2048 | | ZAR | | | 36,939,770 | | | | 3,380,250 | | | | 0.34 | |
Transnet SOC Ltd. 9.500%, 05/13/2021 | | ZAR | | | 14,100,000 | | | | 1,289,683 | | | | 0.13 | |
| | | | | | | | | 64,174,413 | | | | 6.49 | |
Sri Lanka (Cost $2,175,188) | | | | | | | | | | | | | | |
Bank of Ceylon 6.875%, 05/03/2017 | | | | | 1,340,000 | | | | 1,415,375 | | | | 0.14 | |
Sri Lanka (Rep of) 6.250%, 10/04/2020 | | | | | 100,000 | | | | 106,500 | | | | 0.01 | |
Sri Lanka (Rep of) 6.250%, 07/27/2021 | | | | | 650,000 | | | | 690,625 | | | | 0.07 | |
| | | | | | | | | 2,212,500 | | | | 0.22 | |
Thailand (Cost $19,966,476) | | | | | | | | | | | | | | |
Thailand (Rep of) 3.875%, 06/13/2019 | | THB | | | 276,320,000 | | | | 8,920,597 | | | | 0.90 | |
Thailand (Rep of) 1.200%, 07/14/2021 | | THB | | | 79,700,000 | | | | 2,524,050 | | | | 0.25 | |
Thailand (Rep of) 3.650%, 12/17/2021 | | THB | | | 69,620,000 | | | | 2,227,273 | | | | 0.23 | |
Thailand (Rep of) 3.625%, 06/16/2023 | | THB | | | 160,890,000 | | | | 5,132,999 | | | | 0.52 | |
Thailand (Rep of) 1.250%, 03/12/2028 | | THB | | | 39,100,000 | | | | 1,121,410 | | | | 0.11 | |
| | | | | | | | | 19,926,329 | | | | 2.01 | |
Turkey (Cost $50,875,368) | | | | | | | | | | | | | | |
Akbank TAS 7.500%, 02/05/2018 | | TRY | | | 1,235,000 | | | | 512,136 | | | | 0.05 | |
Roenesans Holding, FRN 12.000%, 12/18/2015 | | TRY | | | 610,000 | | | | 276,643 | | | | 0.03 | |
Turkey (Rep of) 7.000%, 09/26/2016 | | | | | 1,561,000 | | | | 1,706,548 | | | | 0.17 | |
Turkey (Rep of) 7.500%, 07/14/2017 | | | | | 780,000 | | | | 877,500 | | | | 0.09 | |
Turkey (Rep of) 6.750%, 04/03/2018 | | | | | 2,388,000 | | | | 2,668,590 | | | | 0.27 | |
Turkey (Rep of) 8.300%, 06/20/2018 | | TRY | | | 8,166,600 | | | | 3,674,263 | | | | 0.37 | |
Turkey (Rep of) 7.000%, 03/11/2019 | | | | | 950,000 | | | | 1,088,177 | | | | 0.11 | |
See accompanying notes to the financial statements.
96
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Turkey - (continued) | | | | | | | | | | | | | | |
Turkey (Rep of) 10.400%, 03/27/2019 | | TRY | | | 7,123,000 | | | $ | 3,457,907 | | | | 0.35 | |
Turkey (Rep of) 7.500%, 11/07/2019 | | | | | 900,000 | | | | 1,060,605 | | | | 0.11 | |
Turkey (Rep of) 4.000%, 04/01/2020 | | TRY | | | 4,410,100 | | | | 3,084,143 | | | | 0.31 | |
Turkey (Rep of) 5.625%, 03/30/2021 | | | | | 1,260,000 | | | | 1,379,675 | | | | 0.14 | |
Turkey (Rep of) 9.500%, 01/12/2022 | | TRY | | | 5,150,000 | | | | 2,439,858 | | | | 0.25 | |
Turkey (Rep of) 3.000%, 02/23/2022 | | TRY | | | 11,191,940 | | | | 6,580,721 | | | | 0.66 | |
Turkey (Rep of) 8.500%, 09/14/2022 | | TRY | | | 8,363,950 | | | | 3,757,408 | | | | 0.38 | |
Turkey (Rep of) 6.250%, 09/26/2022 | | | | | 300,000 | | | | 340,500 | | | | 0.03 | |
Turkey (Rep of) 7.100%, 03/08/2023 | | TRY | | | 10,949,600 | | | | 4,507,630 | | | | 0.46 | |
Turkey (Rep of) 8.800%, 09/27/2023 | | TRY | | | 8,742,400 | | | | 3,992,323 | | | | 0.40 | |
Turkey (Rep of) 10.400%, 03/20/2024 | | TRY | | | 3,672,000 | | | | 1,845,375 | | | | 0.19 | |
Turkey (Rep of) 5.750%, 03/22/2024 | | | | | 380,000 | | | | 419,634 | | | | 0.04 | |
Turkey (Rep of) 9.000%, 07/24/2024 | | TRY | | | 3,300,000 | | | | 1,537,421 | | | | 0.16 | |
Turkey (Rep of) 7.375%, 02/05/2025 | | | | | 907,000 | | | | 1,121,007 | | | | 0.11 | |
Turkey (Rep of) 6.875%, 03/17/2036 | | | | | 851,000 | | | | 1,029,710 | | | | 0.10 | |
Turkey (Rep of) 6.750%, 05/30/2040 | | | | | 1,137,000 | | | | 1,370,574 | | | | 0.14 | |
Turkey (Rep of) 6.000%, 01/14/2041 | | | | | 880,000 | | | | 975,216 | | | | 0.10 | |
Turkiye Garanti Bankasi A.S. 7.375%, 03/07/2018 | | TRY | | | 1,205,000 | | | | 499,562 | | | | 0.05 | |
| | | | | | | | | 50,203,126 | | | | 5.07 | |
Ukraine (Cost $38,258,629) | | | | | | | | | | | | | | |
DTEK Finance B.V. 9.500%, 04/28/2015 | | | | | 1,145,000 | | | | 993,288 | | | | 0.10 | |
DTEK Finance PLC 7.875%, 04/04/2018 | | | | | 4,303,000 | | | | 2,732,405 | | | | 0.28 | |
Ferrexpo Finance PLC 7.875%, 04/07/2016 | | | | | 2,585,000 | | | | 2,430,417 | | | | 0.24 | |
Metinvest B.V. 10.250%, 05/20/2015 | | | | | 2,601,000 | | | | 2,068,315 | | | | 0.21 | |
Metinvest B.V. 8.750%, 02/14/2018 | | | | | 3,940,000 | | | | 2,750,750 | | | | 0.28 | |
MHP S.A. 10.250%, 04/29/2015 | | | | | 1,283,000 | | | | 1,270,170 | | | | 0.13 | |
MHP S.A. 8.250%, 04/02/2020 | | | | | 4,000,000 | | | | 3,500,800 | | | | 0.35 | |
Mriya Agro Holding PLC 9.450%, 04/19/2018 | | | | | 2,050,000 | | | | 410,000 | | | | 0.04 | |
Oschadbank Via SSB #1 PLC 8.250%, 03/10/2016 | | | | | 1,200,000 | | | | 970,788 | | | | 0.10 | |
Oschadbank Via SSB #1 PLC 8.875%, 03/20/2018 | | | | | 1,200,000 | | | | 951,240 | | | | 0.09 | |
Privatbank CJSC Via UK SPV Credit Finance PLC 9.375%, 09/23/2015 | | | | | 385,000 | | | | 296,527 | | | | 0.03 | |
Ukraine (Rep of) 9.250%, 07/24/2017 | | | | | 3,554,000 | | | | 3,234,140 | | | | 0.33 | |
Ukraine (Rep of) 7.750%, 09/23/2020 | | | | | 2,315,000 | | | | 2,037,200 | | | | 0.20 | |
Ukraine (Rep of) 7.950%, 02/23/2021(9) | | | | | 3,050,000 | | | | 2,680,188 | | | | 0.27 | |
Ukraine (Rep of) 7.800%, 11/28/2022 | | | | | 2,950,000 | | | | 2,552,340 | | | | 0.26 | |
Ukraine (Rep of) 7.500%, 04/17/2023 | | | | | 1,590,000 | | | | 1,351,500 | | | | 0.14 | |
Ukreximbank Via Biz Finance PLC 8.750%, 01/22/2018 | | | | | 1,490,000 | | | | 1,184,848 | | | | 0.12 | |
UKRLANDFARMING PLC 10.875%, 03/26/2018 | | | | | 3,095,000 | | | | 1,949,850 | | | | 0.20 | |
| | | | | | | | | 33,364,766 | | | | 3.37 | |
United Arab Emirates (Cost $13,545,250) | | | | | | | | | | | | | | |
Anka a Sukuk Ltd. 10.000%, 08/25/2016 | | AED | | | 5,980,000 | | | | 1,794,977 | | | | 0.18 | |
Dana Gas Sukuk Ltd. 7.000%, 10/31/2017 | | | | | 58,260 | | | | 51,851 | | | | 0.01 | |
Dana Gas Sukuk Ltd. 9.000%, 10/31/2017 | | | | | 1,835,060 | | | | 1,669,905 | | | | 0.17 | |
Dubai Holding Commercial Operations MTN Ltd. 6.000%, 02/01/2017 | | GBP | | | 2,100,000 | | | | 3,432,604 | | | | 0.35 | |
Emirate of Dubai (Rep of) 7.750%, 10/05/2020 | | | | | 3,800,000 | | | | 4,750,000 | | | | 0.48 | |
Emirate of Dubai (Rep of) 5.250%, 01/30/2043 | | | | | 450,000 | | | | 430,875 | | | | 0.04 | |
Sukuk Funding No. 3 Ltd. 4.348%, 12/03/2018 | | | | | 1,255,000 | | | | 1,306,269 | | | | 0.13 | |
| | | | | | | | | 13,436,481 | | | | 1.36 | |
Uruguay (Cost $11,676,554) | | | | | | | | | | | | | | |
Uruguay (Rep of) 5.000%, 09/14/2018(4) | | UYU | | | 12,120,000 | | | | 992,078 | | | | 0.10 | |
Uruguay (Rep of) 4.500%, 08/14/2024 | | | | | 1,674,374 | | | | 1,766,464 | | | | 0.18 | |
See accompanying notes to the financial statements.
97
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Uruguay - (continued) | | | | | | | | | | | | | | |
Uruguay (Rep of) 4.250%, 04/05/2027 | | UYU | | | 24,359,000 | | | $ | 1,968,174 | | | | 0.20 | |
Uruguay (Rep of) 4.375%, 12/15/2028 | | UYU | | | 23,880,000 | | | | 1,372,442 | | | | 0.14 | |
Uruguay (Rep of) 7.875%, 01/15/2033(5) | | | | | 1,606,000 | | | | 2,196,205 | | | | 0.22 | |
Uruguay (Rep of) 7.625%, 03/21/2036 | | | | | 1,164,000 | | | | 1,585,950 | | | | 0.16 | |
Uruguay (Rep of) 3.700%, 06/26/2037 | | UYU | | | 15,937,000 | | | | 1,128,443 | | | | 0.11 | |
Uruguay (Rep of) 4.125%, 11/20/2045 | | | | | 320,300 | | | | 279,622 | | | | 0.03 | |
Uruguay Notas del Tesoro 3.250%, 01/27/2019 | | UYU | | | 100,000 | | | | 11,672 | | | | — | |
| | | | | | | | | 11,301,050 | | | | 1.14 | |
Venezuela (Cost $24,348,389) | | | | | | | | | | | | | | |
Petroleos de Venezuela S.A. 5.000%, 10/28/2015 | | | | | 2,090,000 | | | | 1,849,650 | | | | 0.19 | |
Petroleos de Venezuela S.A. 5.125%, 10/28/2016 | | | | | 1,276,563 | | | | 951,039 | | | | 0.10 | |
Petroleos de Venezuela S.A. 5.250%, 04/12/2017 | | | | | 800,000 | | | | 530,400 | | | | 0.05 | |
Petroleos de Venezuela S.A. 8.500%, 11/02/2017 | | | | | 660,000 | | | | 499,884 | | | | 0.05 | |
Petroleos de Venezuela S.A. 12.750%, 02/17/2022 | | | | | 310,000 | | | | 246,062 | | | | 0.02 | |
Petroleos de Venezuela S.A. 5.375%, 04/12/2027 | | | | | 650,000 | | | | 308,750 | | | | 0.03 | |
Petroleos de Venezuela S.A. 9.750%, 05/17/2035 | | | | | 2,063,000 | | | | 1,259,462 | | | | 0.13 | |
Venezuela (Rep of) 5.750%, 02/26/2016 | | | | | 530,000 | | | | 450,500 | | | | 0.04 | |
Venezuela (Rep of) 7.750%, 10/13/2019 | | | | | 520,000 | | | | 336,700 | | | | 0.03 | |
Venezuela (Rep of) 6.000%, 12/09/2020 | | | | | 425,000 | | | | 252,875 | | | | 0.03 | |
Venezuela (Rep of) 12.750%, 08/23/2022 | | | | | 1,952,000 | | | | 1,551,840 | | | | 0.16 | |
Venezuela (Rep of) 9.000%, 05/07/2023 | | | | | 930,000 | | | | 597,525 | | | | 0.06 | |
Venezuela (Rep of) 8.250%, 10/13/2024 | | | | | 1,740,000 | | | | 1,050,960 | | | | 0.11 | |
Venezuela (Rep of) 7.650%, 04/21/2025 | | | | | 440,000 | | | | 264,000 | | | | 0.03 | |
Venezuela (Rep of) 11.750%, 10/21/2026 | | | | | 6,602,200 | | | | 4,839,413 | | | | 0.49 | |
Venezuela (Rep of) 9.250%, 09/15/2027 | | | | | 1,339,000 | | | | 890,435 | | | | 0.09 | |
Venezuela (Rep of) 9.250%, 05/07/2028 | | | | | 1,783,000 | | | | 1,132,205 | | | | 0.11 | |
Venezuela (Rep of) 11.950%, 08/05/2031 | | | | | 5,710,100 | | | | 4,154,098 | | | | 0.42 | |
| | | | | | | | | 21,165,798 | | | | 2.14 | |
Vietnam (Cost $3,288,296) | | | | | | | | | | | | | | |
Vietnam (Rep of) 6.875%, 01/15/2016 | | | | | 940,000 | | | | 992,875 | | | | 0.10 | |
Vietnam (Rep of) 6.750%, 01/29/2020 | | | | | 2,081,000 | | | | 2,330,720 | | | | 0.24 | |
| | | | | | | | | 3,323,595 | | | | 0.34 | |
Total Debt Securities (Cost $870,424,115) | | | | | | | | | 829,869,611 | | | | 83.88 | |
| | | | |
Bank Loans | | | | | | | | | | | | | | |
| | | | |
United Arab Emirates (Cost $8,946,122) | | | | | | | | | | | | | | |
DP World Ltd.(4)(10) | | | | | 2,386,287 | | | | 2,243,110 | | | | 0.23 | |
DP World Ltd.(4)(10) | | | | | 9,065,684 | | | | 6,753,935 | | | | 0.68 | |
| | | | | | | | | 8,997,045 | | | | 0.91 | |
Total Bank Loans (Cost $8,946,122) | | | | | | | | | 8,997,045 | | | | 0.91 | |
See accompanying notes to the financial statements.
98
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Equity Securities | | | | | | | | | | | | | | |
| | | | |
China (Cost $ — ) | | | | | | | | | | | | | | |
Emerald Plantation Holdings Ltd.(4) | | | | | 308,246 | | | $ | 48,548 | | | | — | |
| | | | | | | | | 48,548 | | | | — | |
Total Equity Securities (Cost $ — ) | | | | | | | | | 48,548 | | | | — | |
| | | | |
| | | Currency(1) | | Number of Warrants | | | Value | | | % of Net
Assets | |
Warrants | | | | | | | | | | | | | | |
| | | | |
China (Cost $27,482) | | | | | | | | | | | | | | |
Far East Energy Bermuda Ltd., Exp. 08/23/2014,
Strike Price $11.92(6)(7) | | | | | 1,308,684 | | | $ | 66,743 | | | | 0.01 | |
| | | | |
Total Warrants (Cost $27,482) | | | | | | | | | 66,743 | | | | 0.01 | |
| | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Short-Term Investments | | | | | | | | | | | | | | |
| | | | |
ABN AMRO Bank, Time Deposit 0.030%, | | | | | 20,000,000 | | | $ | 20,000,000 | | | | 2.02 | |
National Bank, Time Deposit 0.120%, | | | | | 25,000,000 | | | | 25,000,000 | | | | 2.53 | |
| | | | |
Total Short-Term Investments (Cost $45,000,000) | | | | | | | | | 45,000,000 | | | | 4.55 | |
| | | | |
Total Investments in Securities (Cost $924,397,719) | | | | | | | | | 883,981,947 | | | | 89.35 | |
| | | | |
Fully Funded Total Return Swaps | | | | | | | | | | | | | | |
| | | | |
Indonesia (Cost $23,318,414) | | | | | | | | | | | | | | |
Indonesia (Rep of), Issued by ANZ Banking Corp.,
5.250% 05/15/2018 | | IDR | | | 16,900,000,000 | | | | 1,288,120 | | | | 0.13 | |
Indonesia (Rep of), Issued by ANZ Banking Corp.,
7.875% 04/15/2019 | | IDR | | | 16,000,000,000 | | | | 1,325,279 | | | | 0.13 | |
Indonesia (Rep of), Issued by ANZ Banking Corp.,
8.375% 03/15/2024 | | IDR | | | 12,400,000,000 | | | | 1,048,126 | | | | 0.11 | |
Indonesia (Rep of), Issued by ANZ Banking Corp.,
9.000% 03/15/2029 | | IDR | | | 9,000,000,000 | | | | 782,199 | | | | 0.08 | |
Indonesia (Rep of), Issued by ANZ Banking Corp.,
8.375% 03/15/2034 | | IDR | | | 13,000,000,000 | | | | 1,068,184 | | | | 0.11 | |
Indonesia (Rep of), Issued by HSBC,
8.375% 03/15/2034 | | IDR | | | 3,022,000,000 | | | | 248,312 | | | | 0.02 | |
Indonesia (Rep of), Issued by Standard Chartered,
7.875% 04/15/2019 | | IDR | | | 21,131,000,000 | | | | 1,750,280 | | | | 0.18 | |
Indonesia (Rep of), Issued by Standard Chartered,
12.800% 06/15/2021 | | IDR | | | 15,700,000,000 | | | | 1,614,170 | | | | 0.16 | |
Indonesia (Rep of), Issued by Standard Chartered,
8.375% 03/15/2024 | | IDR | | | 52,130,000,000 | | | | 4,406,354 | | | | 0.44 | |
See accompanying notes to the financial statements.
99
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Indonesia - (continued) | | | | | | | | | | | | | | |
Indonesia (Rep of), Issued by Standard Chartered,
11.000% 09/15/2025 | | IDR | | | 5,602,000,000 | | | $ | 552,408 | | | | 0.06 | |
Indonesia (Rep of), Issued by Standard Chartered,
8.375% 09/15/2026 | | IDR | | | 9,100,000,000 | | | | 752,111 | | | | 0.08 | |
Indonesia (Rep of), Issued by Standard Chartered,
7.000% 05/15/2027 | | IDR | | | 16,188,000,000 | | | | 1,206,900 | | | | 0.12 | |
Indonesia (Rep of), Issued by Standard Chartered,
9.000% 03/15/2029 | | IDR | | | 11,300,000,000 | | | | 982,095 | | | | 0.10 | |
Indonesia (Rep of), Issued by Standard Chartered,
10.500% 08/15/2030 | | IDR | | | 18,150,000,000 | | | | 1,755,016 | | | | 0.18 | |
Indonesia (Rep of), Issued by Standard Chartered,
8.375% 03/15/2034 | | IDR | | | 21,260,000,000 | | | | 1,746,891 | | | | 0.18 | |
| | | | | | | | | 20,526,445 | | | | 2.08 | |
Total Fully Funded Total Return Swaps (Cost $23,318,414) | | | | | | | | | 20,526,445 | | | | 2.08 | |
| | | | |
Total Investments (Total Cost $947,716,133) | | | | | | | | | 904,508,392 | | | | 91.43 | |
| | | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for further detail) | | | | | | | | | 84,819,084 | | | | 8.57 | |
Net Assets | | | | | | | | $ | 989,327,476 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | Issuer has defaulted on terms of debt obligation. |
| (3) | Zero coupon bond reflects effective yield on the date of purchase. |
| (4) | Security determined to be illiquid by the Investment Manager. |
| (5) | Security is payment in-kind bond. |
| (6) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded without registration under the Securities Act of 1933. |
| (7) | Restricted security that has been deemed illiquid. At October 31, 2014, the value of these restricted illiquid securities amounted to $6,378,564 or 0.6% of net assets. Additional information on each restricted illiquid security is as follows: |
| | | | | | |
| SECURITY | | ACQUISITION AND
ENFORCEABLE
DATE | | ACQUISITION COST | |
Far East Energy Bermuda Ltd., 13.000%, 01/15/2016 | | 01/14/2013-07/07/2014 | | | $1,695,922 | |
Far East Energy Bermuda Ltd., Exp. 08/23/2014, Strike Price $11.92 | | 01/14/2013 | | | 27,482 | |
Kazakhstan Government International Bond, 4.875%, 10/14/2044 | | 10/07/2014 | | | 394,928 | |
New World Resources N.V., 8.000%, 04/07/2020 | | 10/07/2014 | | | 1,611,695 | |
New World Resources N.V., 4.000%, 10/07/2020 | | 10/07/2014 | | | 36,421 | |
Pacific Rubiales Energy Corp., 5.625%, 01/19/2025 | | 09/15/2014-09/26/2014 | | | 1,927,902 | |
Sino-Forest Corp., 4.250%-10.250%, 08/01/2013-10/21/2017 | | 01/31/2013 | | | — | |
Union Andina de Cementos S.A.A., 5.875%, 10/30/2021 | | 10/28/2014 | | | 500,000 | |
See accompanying notes to the financial statements.
100
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| (8) | Security has been deemed worthless and is a Level 3 investment. |
| (9) | All or a portion of security is held as collateral for Reverse Repurchase Agreement. |
| (10) | When Issued Security. |
Percentages shown are based on net assets.
At October 31, 2014, the Ashmore Emerging Markets Total Return Fund had outstanding forward foreign currency exchange contracts as follows:
| | | | | | | | | | | | | | | | | | |
Settlement
Date | | Counterparty | | Currency Buy | | Currency Buy Amount (Local
Currency) | | | Currency Sell | | Currency
Sell Amount
(Local
Currency) | | | Unrealized
Gain/(Loss) | |
11/04/2014 | | Barclays Wholesale GTS | | Brazilian Real | | | 6,844,800 | | | United States Dollar | | | 2,760,000 | | | | $(1,041) | |
11/04/2014 | | Barclays Wholesale GTS | | Brazilian Real | | | 1,188,371 | | | United States Dollar | | | 486,240 | | | | (7,239) | |
11/04/2014 | | BNP Paris | | Brazilian Real | | | 19,265,566 | | | United States Dollar | | | 7,790,000 | | | | (24,556) | |
11/04/2014 | | Goldman Sachs International Ltd. London | | Brazilian Real | | | 15,570,555 | | | United States Dollar | | | 6,405,000 | | | | (128,918) | |
11/04/2014 | | JP Morgan | | Brazilian Real | | | 8,140,880 | | | United States Dollar | | | 3,208,229 | | | | 73,146 | |
11/04/2014 | | Merrill Lynch International | | Brazilian Real | | | 13,109,710 | | | United States Dollar | | | 5,434,482 | | | | (150,302) | |
11/04/2014 | | Morgan Stanley & Co. International | | Brazilian Real | | | 7,325,718 | | | United States Dollar | | | 2,977,450 | | | | (24,645) | |
11/04/2014 | | Union Bank of Switzerland - London | | Brazilian Real | | | 11,333,985 | | | United States Dollar | | | 4,644,581 | | | | (76,149) | |
11/04/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 13,734,062 | | | Brazilian Real | | | 33,461,670 | | | | 246,542 | |
11/04/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 8,618,276 | | | Brazilian Real | | | 21,373,324 | | | | 3,250 | |
11/04/2014 | | CSFB Global Foreign Exchange London | | United States Dollar | | | 10,800,000 | | | Brazilian Real | | | 26,120,340 | | | | 271,577 | |
11/04/2014 | | Goldman Sachs International Ltd. London | | United States Dollar | | | 4,074,578 | | | Brazilian Real | | | 9,965,130 | | | | 57,896 | |
11/06/2014 | | JP Morgan | | United States Dollar | | | 1,989,209 | | | Nigerian Naira | | | 329,810,846 | | | | (1,801) | |
11/10/2014 | | Deutsche Bank London | | Peruvian Neuvo Sol | | | 869,181 | | | United States Dollar | | | 296,801 | | | | 207 | |
11/10/2014 | | Merrill Lynch International | | Peruvian Neuvo Sol | | | 2,514,521 | | | United States Dollar | | | 859,959 | | | | (722) | |
11/10/2014 | | Morgan Stanley & Co. International | | Peruvian Neuvo Sol | | | 749,790 | | | United States Dollar | | | 255,639 | | | | 571 | |
11/14/2014 | | BNP Paris | | Euro | | | 144,456 | | | United States Dollar | | | 184,455 | | | | (3,413) | |
11/14/2014 | | Union Bank of Switzerland - London | | Euro | | | 130,316 | | | United States Dollar | | | 164,587 | | | | (1,267) | |
11/14/2014 | | HSBC Bank PLC | | United States Dollar | | | 3,794,519 | | | British Pound | | | 2,361,129 | | | | 17,850 | |
11/14/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 8,507,146 | | | Euro | | | 6,734,290 | | | | 67,316 | |
11/14/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 106,714 | | | Euro | | | 84,358 | | | | 991 | |
11/14/2014 | | BNP Paris | | United States Dollar | | | 193,674 | | | Euro | | | 151,988 | | | | 3,193 | |
11/14/2014 | | Deutsche Bank London | | United States Dollar | | | 108,366 | | | Euro | | | 85,593 | | | | 1,096 | |
11/28/2014 | | Merrill Lynch International | | Euro | | | 8,881,027 | | | United States Dollar | | | 11,271,000 | | | | (139,752) | |
11/28/2014 | | Morgan Stanley & Co. International | | Euro | | | 478,774 | | | United States Dollar | | | 610,355 | | | | (10,273) | |
11/28/2014 | | Barclays Wholesale GTS | | Hungarian Forint | | | 1,051,032,240 | | | United States Dollar | | | 4,320,000 | | | | (48,399) | |
11/28/2014 | | Merrill Lynch International | | Hungarian Forint | | | 39,235,200 | | | United States Dollar | | | 160,000 | | | | (540) | |
11/28/2014 | | ANZ Banking Corp. Melbourne | | Indian Rupee | | | 187,975,690 | | | United States Dollar | | | 3,029,911 | | | | 20,919 | |
11/28/2014 | | Deutsche Bank London | | Indian Rupee | | | 97,733,908 | | | United States Dollar | | | 1,585,817 | | | | 396 | |
11/28/2014 | | Barclays Wholesale GTS | | Korean Won | | | 18,306,128,405 | | | United States Dollar | | | 17,652,969 | | | | (627,775) | |
11/28/2014 | | Citibank London | | Korean Won | | | 1,165,021,056 | | | United States Dollar | | | 1,123,670 | | | | (40,169) | |
11/28/2014 | | Merrill Lynch International | | Korean Won | | | 10,164,624,941 | | | United States Dollar | | | 9,550,347 | | | | (96,971) | |
11/28/2014 | | Citibank London | | Malaysian Ringgit | | | 5,579,671 | | | United States Dollar | | | 1,697,290 | | | | (14,910) | |
11/28/2014 | | Deutsche Bank London | | Malaysian Ringgit | | | 16,551,208 | | | United States Dollar | | | 5,169,022 | | | | (178,508) | |
11/28/2014 | | ANZ Banking Corp. Melbourne | | Philippine Peso | | | 209,261,600 | | | United States Dollar | | | 4,673,626 | | | | (23,372) | |
11/28/2014 | | ANZ Banking Corp. Melbourne | | Philippine Peso | | | 123,222,000 | | | United States Dollar | | | 2,768,598 | | | | (30,334) | |
11/28/2014 | | JP Morgan | | Philippine Peso | | | 33,554,842 | | | United States Dollar | | | 743,680 | | | | 1,982 | |
11/28/2014 | | Union Bank of Switzerland - London | | Polish Zloty | | | 12,772,027 | | | United States Dollar | | | 4,011,315 | | | | (225,380) | |
11/28/2014 | | Deutsche Bank London | | Russian Ruble | | | 19,568,400 | | | United States Dollar | | | 460,000 | | | | (8,649) | |
11/28/2014 | | Morgan Stanley & Co. International | | Russian Ruble | | | 136,459,733 | | | United States Dollar | | | 3,695,692 | | | | (548,206) | |
11/28/2014 | | Deutsche Bank London | | Singapore Dollar | | | 1,500,169 | | | United States Dollar | | | 1,177,120 | | | | (9,579) | |
11/28/2014 | | Deutsche Bank London | | Singapore Dollar | | | 27,014,509 | | | United States Dollar | | | 21,379,850 | | | | (355,184) | |
11/28/2014 | | JP Morgan | | Singapore Dollar | | | 1,234,655 | | | United States Dollar | | | 979,030 | | | | (18,131) | |
11/28/2014 | | Citibank London | | South African Rand | | | 31,404,098 | | | United States Dollar | | | 2,780,000 | | | | 54,199 | |
11/28/2014 | | HSBC Bank PLC | | Taiwan Dollar | | | 197,875,708 | | | United States Dollar | | | 6,551,091 | | | | (56,711) | |
11/28/2014 | | ANZ Banking Corp. Melbourne | | Thai Baht | | | 87,678,000 | | | United States Dollar | | | 2,708,619 | | | | (20,061) | |
11/28/2014 | | Barclays Wholesale GTS | | Thai Baht | | | 56,051,584 | | | United States Dollar | | | 1,751,612 | | | | (32,846) | |
11/28/2014 | | BNP Paris | | Thai Baht | | | 62,113,200 | | | United States Dollar | | | 1,941,644 | | | | (37,005) | |
11/28/2014 | | Goldman Sachs International Ltd. London | | Thai Baht | | | 98,402,000 | | | United States Dollar | | | 3,073,142 | | | | (55,743) | |
See accompanying notes to the financial statements.
101
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | | | | | |
Settlement
Date | | Counterparty | | Currency Buy | | Currency Buy Amount (Local Currency) | | | Currency Sell | | Currency Sell Amount (Local
Currency) | | | Unrealized
Gain/(Loss) | |
11/28/2014 | | HSBC Bank PLC | | Turkish Lira | | | 5,766,895 | | | United States Dollar | | | 2,591,630 | | | | $(13,636) | |
11/28/2014 | | JP Morgan | | Turkish Lira | | | 10,767,200 | | | United States Dollar | | | 4,840,000 | | | | (26,704) | |
11/28/2014 | | HSBC Bank PLC | | United States Dollar | | | 1,690,000 | | | Chinese Yuan Renminbi | | | 10,362,235 | | | | 3,086 | |
11/28/2014 | | Goldman Sachs International Ltd. London | | United States Dollar | | | 4,946,470 | | | Colombian Peso | | | 10,169,943,115 | | | | 20,699 | |
11/28/2014 | | Citibank London | | United States Dollar | | | 14,223,135 | | | Euro | | | 10,839,309 | | | | 637,427 | |
11/28/2014 | | Citibank London | | United States Dollar | | | 3,297,712 | | | Euro | | | 2,512,374 | | | | 148,768 | |
11/28/2014 | | Merrill Lynch International | | United States Dollar | | | 5,930,190 | | | Euro | | | 4,500,000 | | | | 290,007 | |
11/28/2014 | | Merrill Lynch International | | United States Dollar | | | 6,021,819 | | | Euro | | | 4,573,695 | | | | 289,268 | |
11/28/2014 | | Morgan Stanley & Co. International | | United States Dollar | | | 5,643,710 | | | Euro | | | 4,508,180 | | | | (6,726) | |
11/28/2014 | | Union Bank of Switzerland - London | | United States Dollar | | | 17,990,860 | | | Euro | | | 13,707,552 | | | | 810,171 | |
11/28/2014 | | Citibank London | | United States Dollar | | | 481,312 | | | Hungarian Forint | | | 116,025,115 | | | | 9,763 | |
11/28/2014 | | JP Morgan | | United States Dollar | | | 719,987 | | | Hungarian Forint | | | 173,372,989 | | | | 15,366 | |
11/28/2014 | | Merrill Lynch International | | United States Dollar | | | 1,970,000 | | | Hungarian Forint | | | 483,083,400 | | | | 6,654 | |
11/28/2014 | | ANZ Banking Corp. Melbourne | | United States Dollar | | | 3,740,000 | | | Indonesian Rupiah | | | 45,422,300,000 | | | | (6,976) | |
11/28/2014 | | BNP Paris | | United States Dollar | | | 1,837,756 | | | Indonesian Rupiah | | | 22,631,963,820 | | | | (29,200) | |
11/28/2014 | | Deutsche Bank London | | United States Dollar | | | 3,190,000 | | | Korean Won | | | 3,408,196,000 | | | | 20,286 | |
11/28/2014 | | HSBC Bank PLC | | United States Dollar | | | 3,640,000 | | | Polish Zloty | | | 12,275,172 | | | | 1,345 | |
11/28/2014 | | Union Bank of Switzerland - London | | United States Dollar | | | 2,439,985 | | | Polish Zloty | | | 7,900,341 | | | | 98,135 | |
11/28/2014 | | JP Morgan | | United States Dollar | | | 198,456 | | | Romanian Leu | | | 674,017 | | | | 7,130 | |
11/28/2014 | | Merrill Lynch International | | United States Dollar | | | 179,714 | | | Romanian Leu | | | 610,335 | | | | 6,465 | |
11/28/2014 | | BNP Paris | | United States Dollar | | | 2,715,000 | | | Singapore Dollar | | | 3,480,301 | | | | 6,375 | |
11/28/2014 | | CSFB Global Foreign Exchange London | | United States Dollar | | | 16,654,945 | | | South African Rand | | | 183,537,498 | | | | 90,807 | |
11/28/2014 | | Goldman Sachs International Ltd. London | | United States Dollar | | | 1,475,000 | | | South African Rand | | | 16,088,858 | | | | 22,991 | |
11/28/2014 | | Union Bank of Switzerland - London | | United States Dollar | | | 945,363 | | | South African Rand | | | 10,266,071 | | �� | | 18,857 | |
11/28/2014 | | BNP Paris | | United States Dollar | | | 3,912,588 | | | Turkish Lira | | | 8,580,369 | | | | 76,878 | |
11/28/2014 | | Citibank London | | United States Dollar | | | 3,050,000 | | | Turkish Lira | | | 6,994,596 | | | | (76,817) | |
12/02/2014 | | Union Bank of Switzerland - London | | Brazilian Real | | | 46,031,760 | | | United States Dollar | | | 18,990,000 | | | | (593,410) | |
12/02/2014 | | Barclays Wholesale GTS | | United States Dollar | | | 3,219,139 | | | Brazilian Real | | | 8,140,880 | | | | (34,363) | |
12/02/2014 | | JP Morgan | | United States Dollar | | | 3,183,078 | | | Brazilian Real | | | 8,140,880 | | | | (70,425) | |
12/19/2014 | | Morgan Stanley & Co. International | | Russian Ruble | | | 324,220,544 | | | United States Dollar | | | 8,280,438 | | | | (859,558) | |
12/30/2014 | | Barclays Wholesale GTS | | Thai Baht | | | 26,047,535 | | | United States Dollar | | | 803,614 | | | | (6,090) | |
12/30/2014 | | Goldman Sachs International Ltd. London | | Thai Baht | | | 101,311,200 | | | United States Dollar | | | 3,104,373 | | | | (2,424) | |
12/30/2014 | | Goldman Sachs International Ltd. London | | Thai Baht | | | 99,085,200 | | | United States Dollar | | | 3,056,016 | | | | (22,223) | |
12/30/2014 | | JP Morgan | | Thai Baht | | | 87,997,700 | | | United States Dollar | | | 2,695,595 | | | | (1,279) | |
12/31/2014 | | Goldman Sachs International Ltd. London | | Chinese Yuan Renminbi | | | 95,205,500 | | | United States Dollar | | | 15,485,605 | | | | (2,808) | |
12/31/2014 | | BNP Paris | | Indian Rupee | | | 178,522,000 | | | United States Dollar | | | 2,884,971 | | | | (2,319) | |
12/31/2014 | | Citibank London | | Indian Rupee | | | 119,573,157 | | | United States Dollar | | | 1,931,559 | | | | (773) | |
12/31/2014 | | Union Bank of Switzerland - London | | Indian Rupee | | | 434,566,500 | | | United States Dollar | | | 7,025,000 | | | | (7,916) | |
12/31/2014 | | Union Bank of Switzerland - London | | Malaysian Ringgit | | | 24,000,000 | | | United States Dollar | | | 7,359,706 | | | | (143,685) | |
12/31/2014 | | BNP Paris | | Taiwan Dollar | | | 341,078,606 | | | United States Dollar | | | 11,258,578 | | | | (59,638) | |
12/31/2014 | | HSBC Bank PLC | | United States Dollar | | | 3,330,000 | | | Chinese Yuan Renminbi | | | 20,459,520 | | | | 2,770 | |
12/31/2014 | | BNP Paris | | United States Dollar | | | 4,280,000 | | | Malaysian Ringgit | | | 14,091,900 | | | | 43,023 | |
12/31/2014 | | Union Bank of Switzerland - London | | United States Dollar | | | 2,135,000 | | | Taiwan Dollar | | | 64,829,275 | | | | 6,402 | |
01/30/2015 | | Santander | | Chilean Peso | | | 6,549,173,750 | | | United States Dollar | | | 10,835,827 | | | | 450,888 | |
01/30/2015 | | Santander | | Chilean Peso | | | 2,724,297,223 | | | United States Dollar | | | 4,628,043 | | | | 66,957 | |
01/30/2015 | | HSBC Bank PLC | | Chinese Yuan Renminbi | | | 81,186,506 | | | United States Dollar | | | 13,173,212 | | | | (9,135) | |
01/30/2015 | | Goldman Sachs International Ltd. London | | Hungarian Forint | | | 1,620,829,693 | | | United States Dollar | | | 6,642,010 | | | | (63,827) | |
01/30/2015 | | Barclays Wholesale GTS | | Indian Rupee | | | 506,019,163 | | | United States Dollar | | | 8,155,023 | | | | (22,987) | |
01/30/2015 | | Goldman Sachs International Ltd. London | | Indian Rupee | | | 489,596,400 | | | United States Dollar | | | 7,822,903 | | | | 45,209 | |
01/30/2015 | | Merrill Lynch International | | Indian Rupee | | | 475,691,400 | | | United States Dollar | | | 7,657,621 | | | | (12,971) | |
01/30/2015 | | Goldman Sachs International Ltd. London | | Israeli Shekel | | | 14,107,433 | | | United States Dollar | | | 3,751,877 | | | | (36,568) | |
01/30/2015 | | BNP Paris | | Malaysian Ringgit | | | 5,912,984 | | | United States Dollar | | | 1,792,547 | | | | (18,431) | |
01/30/2015 | | Deutsche Bank London | | Mexican Peso | | | 78,484,860 | | | United States Dollar | | | 5,761,837 | | | | 34,624 | |
01/30/2015 | | Deutsche Bank London | | Mexican Peso | | | 72,039,049 | | | United States Dollar | | | 5,335,000 | | | | (14,591) | |
01/30/2015 | | HSBC Bank PLC | | Mexican Peso | | | 124,817,343 | | | United States Dollar | | | 9,172,553 | | | | 45,772 | |
01/30/2015 | | Morgan Stanley & Co. International | | Mexican Peso | | | 195,151,259 | | | United States Dollar | | | 14,314,833 | | | | 97,968 | |
01/30/2015 | | Deutsche Bank London | | Peruvian Neuvo Sol | | | 1,037,028 | | | United States Dollar | | | 351,178 | | | | (94) | |
01/30/2015 | | Deutsche Bank London | | Peruvian Neuvo Sol | | | 1,569,875 | | | United States Dollar | | | 531,620 | | | | (143) | |
01/30/2015 | | ANZ Banking Corp. Melbourne | | Philippine Peso | | | 357,538,200 | | | United States Dollar | | | 7,940,000 | | | | (5,183) | |
See accompanying notes to the financial statements.
102
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | | | | | |
Settlement
Date | | Counterparty | | Currency Buy | | Currency Buy Amount (Local Currency) | | | Currency Sell | | Currency Sell Amount (Local
Currency) | | | Unrealized
Gain/(Loss) | |
01/30/2015 | | Deutsche Bank London | | Philippine Peso | | | 94,697,300 | | | United States Dollar | | | 2,110,717 | | | | $(9,107) | |
01/30/2015 | | Union Bank of Switzerland - London | | Philippine Peso | | | 102,280,237 | | | United States Dollar | | | 2,281,513 | | | | (11,616) | |
01/30/2015 | | Deutsche Bank London | | Polish Zloty | | | 26,190,761 | | | United States Dollar | | | 7,839,499 | | | | (95,709) | |
01/30/2015 | | Merrill Lynch International | | Polish Zloty | | | 26,190,761 | | | United States Dollar | | | 7,841,076 | | | | (97,287) | |
01/30/2015 | | Merrill Lynch Capital Markets | | Romanian Leu | | | 25,770,330 | | | United States Dollar | | | 7,349,303 | | | | (52,115) | |
01/30/2015 | | JP Morgan | | Russian Ruble | | | 258,302,276 | | | United States Dollar | | | 6,012,623 | | | | (150,137) | |
01/30/2015 | | BNP Paris | | Thai Baht | | | 161,225,790 | | | United States Dollar | | | 4,930,000 | | | | (121) | |
01/30/2015 | | BNP Paris | | Thai Baht | | | 73,079,448 | | | United States Dollar | | | 2,250,676 | | | | (16,090) | |
01/30/2015 | | Goldman Sachs International Ltd. London | | Thai Baht | | | 101,923,700 | | | United States Dollar | | | 3,146,764 | | | | (30,194) | |
01/30/2015 | | Morgan Stanley & Co. International | | Turkish Lira | | | 11,367,290 | | | United States Dollar | | | 5,060,000 | | | | (47,891) | |
01/30/2015 | | CSFB Global Foreign Exchange London | | United States Dollar | | | 2,245,000 | | | Colombian Peso | | | 4,671,283,750 | | | | (4,377) | |
01/30/2015 | | Merrill Lynch International | | United States Dollar | | | 400,000 | | | Czech Koruna | | | 8,871,112 | | | | (36) | |
01/30/2015 | | Merrill Lynch International | | United States Dollar | | | 295,000 | | | Israeli Shekel | | | 1,116,150 | | | | 1,053 | |
01/30/2015 | | BNP Paris | | United States Dollar | | | 449,151 | | | Peruvian Neuvo Sol | | | 1,318,931 | | | | 2,629 | |
01/30/2015 | | CSFB Global Foreign Exchange London | | United States Dollar | | | 340,000 | | | Peruvian Neuvo Sol | | | 1,003,680 | | | | 206 | |
01/30/2015 | | Merrill Lynch Capital Markets | | United States Dollar | | | 365,000 | | | Romanian Leu | | | 1,286,260 | | | | 780 | |
01/30/2015 | | CSFB Global Foreign Exchange London | | United States Dollar | | | 4,830,000 | | | Turkish Lira | | | 10,837,554 | | | | 51,464 | |
01/30/2015 | | Union Bank of Switzerland - London | | United States Dollar | | | 2,633,960 | | | Turkish Lira | | | 5,979,617 | | | | (2,595) | |
03/04/2015 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 30,344,995 | | | United States Dollar | | | 4,798,386 | | | | 105,726 | |
03/04/2015 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 9,743,760 | | | United States Dollar | | | 1,560,000 | | | | 14,708 | |
03/04/2015 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 28,613,200 | | | United States Dollar | | | 4,645,000 | | | | (20,766) | |
03/04/2015 | | HSBC Bank PLC | | United States Dollar | | | 4,172,479 | | | Chinese Offshore Yuan | | | 25,931,955 | | | | (18,434) | |
03/04/2015 | | HSBC Bank PLC | | United States Dollar | | | 6,875,653 | | | Chinese Offshore Yuan | | | 42,770,000 | | | | (36,488) | |
03/19/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 21,180,939 | | | United States Dollar | | | 3,399,284 | | | | 20,245 | |
03/19/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 8,764,244 | | | United States Dollar | | | 1,403,739 | | | | 11,193 | |
03/19/2015 | | Standard Chartered London | | United States Dollar | | | 4,812,404 | | | Chinese Offshore Yuan | | | 29,945,183 | | | | (22,057) | |
04/13/2015 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 38,604,157 | | | United States Dollar | | | 5,775,607 | | | | 445,968 | |
04/13/2015 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 174,251 | | | United States Dollar | | | 26,573 | | | | 1,510 | |
04/13/2015 | | HSBC Bank PLC | | United States Dollar | | | 93,434 | | | Chinese Offshore Yuan | | | 612,369 | | | | (5,257) | |
04/13/2015 | | HSBC Bank PLC | | United States Dollar | | | 550,000 | | | Chinese Offshore Yuan | | | 3,554,650 | | | | (22,879) | |
04/13/2015 | | HSBC Bank PLC | | United States Dollar | | | 550,000 | | | Chinese Offshore Yuan | | | 3,565,925 | | | | (24,696) | |
04/13/2015 | | HSBC Bank PLC | | United States Dollar | | | 2,050,000 | | | Chinese Offshore Yuan | | | 13,449,435 | | | | (117,556) | |
04/13/2015 | | HSBC Bank PLC | | United States Dollar | | | 2,710,000 | | | Chinese Offshore Yuan | | | 17,596,030 | | | | (125,835) | |
05/04/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 105,616,865 | | | United States Dollar | | | 16,100,132 | | | | 897,081 | |
05/04/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 6,222,535 | | | United States Dollar | | | 939,109 | | | | 62,301 | |
05/04/2015 | | Standard Chartered London | | United States Dollar | | | 1,100,000 | | | Chinese Offshore Yuan | | | 7,158,800 | | | | (52,085) | |
05/04/2015 | | Standard Chartered London | | United States Dollar | | | 3,400,000 | | | Chinese Offshore Yuan | | | 22,343,100 | | | | (195,737) | |
05/04/2015 | | Standard Chartered London | | United States Dollar | | | 12,500,000 | | | Chinese Offshore Yuan | | | 82,337,500 | | | | (750,801) | |
07/17/2015 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 3,785,666 | | | United States Dollar | | | 564,393 | | | | 41,977 | |
07/17/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 24,998,265 | | | United States Dollar | | | 3,761,400 | | | | 242,705 | |
07/17/2015 | | Standard Chartered London | | Chinese Offshore Yuan | | | 657,900 | | | United States Dollar | | | 100,038 | | | | 5,341 | |
07/17/2015 | | HSBC Bank PLC | | United States Dollar | | | 18,198 | | | Chinese Offshore Yuan | | | 119,651 | | | | (967) | |
07/17/2015 | | HSBC Bank PLC | | United States Dollar | | | 557,442 | | | Chinese Offshore Yuan | | | 3,666,015 | | | | (29,764) | |
07/17/2015 | | Standard Chartered London | | United States Dollar | | | 3,870,000 | | | Chinese Offshore Yuan | | | 25,656,165 | | | | (239,485) | |
03/06/2017 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 26,500,860 | | | United States Dollar | | | 4,163,202 | | | | (15,553) | |
03/06/2017 | | HSBC Bank PLC | | Chinese Offshore Yuan | | | 42,770,000 | | | United States Dollar | | | 6,710,599 | | | | (16,668) | |
03/06/2017 | | HSBC Bank PLC | | United States Dollar | | | 4,645,000 | | | Chinese Offshore Yuan | | | 28,989,445 | | | | 107,863 | |
03/06/2017 | | HSBC Bank PLC | | United States Dollar | | | 1,560,000 | | | Chinese Offshore Yuan | | | 9,936,420 | | | | 4,851 | |
03/06/2017 | | HSBC Bank PLC | | United States Dollar | | | 4,717,450 | | | Chinese Offshore Yuan | | | 30,344,995 | | | | (31,844) | |
03/20/2017 | | Standard Chartered London | | Chinese Offshore Yuan | | | 30,331,751 | | | United States Dollar | | | 4,756,057 | | | | (10,097) | |
03/20/2017 | | Standard Chartered London | | United States Dollar | | | 3,399,284 | | | Chinese Offshore Yuan | | | 21,446,083 | | | | 43,651 | |
03/20/2017 | | Standard Chartered London | | United States Dollar | | | 1,403,739 | | | Chinese Offshore Yuan | | | 8,885,668 | | | | 13,413 | |
| | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | $(1,133,808) | |
| | | | | | | | | | | | | | | | | | |
See accompanying notes to the financial statements.
103
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
At October 31, 2014, the Ashmore Emerging Markets Total Return Fund had the following interest rate swap contracts outstanding:
| | | | | | | | | | | | |
Pay Rate Index/ Pay Rate | | Receive Rate/
Receive Rate Index | | | | Notional
Amount | | Expiration
Date | | Unrealized
Gains/
(Losses) | | Counterparty |
Brazil CETIP Interbank Deposit Rate | | 12.303% | | BRL | | 17,198,495 | | 01/02/2017 | | $73,098 | | HSBC |
Brazil CETIP Interbank Deposit Rate | | 12.490% | | BRL | | 8,372,990 | | 01/02/2017 | | 50,676 | | HSBC |
Brazil CETIP Interbank Deposit Rate | | 12.285% | | BRL | | 3,291,726 | | 01/02/2017 | | 11,220 | | HSBC |
Brazil CETIP Interbank Deposit Rate | | 11.435% | | BRL | | 15,585,009 | | 01/02/2017 | | (87,113) | | HSBC |
Johannesburg Interbank Agreed Rate 3 Month | | 6.580% | | ZAR | | 39,000,000 | | 11/07/2016 | | 205 | | Barclays Capital |
Johannesburg Interbank Agreed Rate 3 Month | | 6.695% | | ZAR | | 20,206,000 | | 01/14/2017 | | 134 | | HSBC |
Johannesburg Interbank Agreed Rate 3 Month | | 6.760% | | ZAR | | 21,900,000 | | 01/17/2017 | | 2,735 | | Morgan Stanley |
Johannesburg Interbank Agreed Rate 3 Month | | 7.115% | | ZAR | | 11,900,000 | | 04/10/2017 | | 9,284 | | Barclays Captial |
Johannesburg Interbank Agreed Rate 3 Month | | 6.975% | | ZAR | | 39,100,000 | | 08/14/2017 | | 20,464 | | HSBC |
| | | | | | | | | | | | |
| | | | | | | | | | $80,703 | | |
| | | | | | | | | | | | |
See accompanying notes to the financial statements.
104
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities and other financial instruments, if any. See note 4 in the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. The following is a summary of the inputs used in valuing the Ashmore Emerging Markets Total Return Fund’s investments and other financial instruments, which are carried at fair value, as of October 31, 2014:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Debt Securities | | | | | | | | | | | | | | | | |
Corporate Bonds | | | $ — | | | $ | 231,326,532 | | | | $ — | | | | $ 231,326,532 | |
Corporate Convertible Bonds | | | — | | | | 404,889 | | | | — | | | | 404,889 | |
Government Agencies | | | — | | | | 6,998,559 | | | | — | | | | 6,998,559 | |
Government Bonds | | | — | | | | 550,962,365 | | | | — | | | | 550,962,365 | |
Municipal Bonds | | | — | | | | 4,750,000 | | | | — | | | | 4,750,000 | |
Index Linked Corporate Bonds | | | — | | | | 3,985,880 | | | | — | | | | 3,985,880 | |
Index Linked Government Bonds | | | — | | | | 24,704,564 | | | | — | | | | 24,704,564 | |
Financial Certificate | | | — | | | | 6,736,822 | | | | — | | | | 6,736,822 | |
| | | | | | | | | | | | | | | | |
Total Debt Securities | | | — | | | | 829,869,611 | | | | — | | | | 829,869,611 | |
Common Stock | | | — | | | | 48,548 | | | | — | | | | 48,548 | |
Bank Loans | | | — | | | | 8,997,045 | | | | — | | | | 8,997,045 | |
Warrants | | | — | | | | 66,743 | | | | — | | | | 66,743 | |
Fully Funded Total Return Swaps | | | — | | | | 20,526,445 | | | | — | | | | 20,526,445 | |
Short-Term Investments | | | — | | | | 45,000,000 | | | | — | | | | 45,000,000 | |
Total Investments | | | $ — | | | $ | 904,508,392 | | | | $ — | | | | $ 904,508,392 | |
| | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | $ — | | | | $ 6,269,887 | | | | $ — | | | | $ 6,269,887 | |
Interest Rate Swap Contracts | | | — | | | | 167,816 | | | | — | | | | 167,816 | |
Liabilities: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | — | | | | (7,403,695 | ) | | | — | | | | (7,403,695 | ) |
Interest Rate Swap Contracts | | | — | | | | (87,113 | ) | | | — | | | | (87,113 | ) |
Total Other Financial Instruments | | | $ — | | | | $ (1,053,105 | ) | | | $ — | | | | $ (1,053,105 | ) |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2014, there were no transfers between Level 1, Level 2 and Level 3 based on levels assigned to the securities on October 31, 2013. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.
The following is a summary of the fair values of the Fund’s derivative instruments*:
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of October 31, 2014:
| | | | | | | | |
| | | Derivatives Not Accounted for
as Hedging Instruments | |
| | | Foreign
Exchange | | | Interest Rate | |
Assets: | | | | | | | | |
Unrealized Appreciation on Interest Rate Swap Contracts | | $ | — | | | $ | 167,816 | |
Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | | 6,269,887 | | | | — | |
| | $ | 6,269,887 | | | $ | 167,816 | |
See accompanying notes to the financial statements.
105
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | |
| | | Derivatives Not Accounted for as
Hedging Instruments | |
| | | Foreign
Exchange | | | Interest Rate | |
Liabilities: | | | | | | | | |
Unrealized Depreciation on Interest Rate Swap Contracts | | $ | — | | | $ | (87,113 | ) |
Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | | | (7,403,695 | ) | | | — | |
| | $ | (7,403,695 | ) | | $ | (87,113 | ) |
The Effect of Financial Derivative Instruments on the Statements of Operations for the Year Ended October 31, 2014:
| | | | | | | | |
| | | Derivatives Not Accounted for as
Hedging Instruments | |
| | | Foreign
Exchange | | | Interest Rate | |
Realized Gain (Loss) on Derivatives Recognized resulting from Operations: | | | | | | | | |
Net Realized Loss on Forward Foreign Currency Exchange Contracts | | | $ (1,448,263) | | | $ | — | |
Net Realized Loss on Options | | | — | | | | (189,973 | ) |
Net Realized Loss on Interest Rate Swap Contracts | | | — | | | | (91,420 | ) |
| | | $ (1,448,263) | | | $ | (281,393 | ) |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized resulting from Operations: | | | | | | | | |
Net Change in Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | | | $ (831,849) | | | $ | — | |
Net Change in Unrealized Appreciation on Interest Rate Swap Contracts | | | — | | | | 122,961 | |
Net Change in Unrealized Appreciation on Options | | | — | | | | 189,845 | |
| | | $ (831,849) | | | $ | 312,806 | |
* See note 10 in the Notes to the Financial Statements for additional information.
At October 31, 2014, for U.S. federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation/(depreciation) on investments in securities (including the effects of foreign currency translation) and the cost basis of investments were as follows:
| | | | |
Federal tax cost of investments | | $ | 953,635,548 | |
Gross tax appreciation of investments | | | 7,371,228 | |
Gross tax depreciation of investments | | | (56,498,384 | ) |
Net tax depreciation of investments | | $ | (49,127,156 | ) |
The difference between book basis and tax basis net unrealized appreciation or depreciation is attributable primarily to the tax deferral of losses on wash sales.
See accompanying notes to the financial statements.
106
ASHMORE EMERGING MARKETS EQUITY FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Shares | | | Value | | | % of Net
Assets | |
Common Stock | | | | | | | | | | | | | | |
| | | | |
Argentina (Cost $108,070) | | | | | | | | | | | | | | |
YPF S.A. ADR | | | | | 3,169 | | | $ | 111,454 | | | | 1.08 | |
| | | | | | | | | 111,454 | | | | 1.08 | |
Brazil (Cost $807,106) | | | | | | | | | | | | | | |
Banco do Brasil S.A. | | BRL | | | 9,800 | | | | 109,671 | | | | 1.06 | |
Cosan Ltd., Class A | | | | | 18,900 | | | | 200,151 | | | | 1.94 | |
Cosan S.A. Industria e Comercio | | BRL | | | 4,000 | | | | 55,838 | | | | 0.54 | |
Estacio Participacoes S.A. | | BRL | | | 8,700 | | | | 100,767 | | | | 0.97 | |
Iochpe-Maxion S.A. | | BRL | | | 14,700 | | | | 101,207 | | | | 0.98 | |
JBS S.A. | | BRL | | | 42,900 | | | | 191,309 | | | | 1.85 | |
| | | | | | | | | 758,943 | | | | 7.34 | |
Chile (Cost $125,377) | | | | | | | | | | | | | | |
Banco de Chile ADR | | | | | 322 | | | | 23,828 | | | | 0.23 | |
Empresa Nacional de Electricidad S.A. | | CLP | | | 66,574 | | | | 104,143 | | | | 1.01 | |
| | | | | | | | | 127,971 | | | | 1.24 | |
China (Cost $2,603,934) | | | | | | | | | | | | | | |
Baidu, Inc. ADR | | | | | 2,203 | | | | 526,010 | | | | 5.09 | |
China CITIC Bank Corp. Ltd., Class H | | HKD | | | 650,000 | | | | 423,418 | | | | 4.10 | |
China Merchants Bank Co. Ltd., Class H | | HKD | | | 102,008 | | | | 188,709 | | | | 1.83 | |
China Minsheng Banking Corp. Ltd., Class H | | HKD | | | 258,200 | | | | 258,472 | | | | 2.50 | |
China National Building Material Co. Ltd., Class H | | HKD | | | 178,000 | | | | 164,888 | | | | 1.60 | |
China South City Holdings Ltd. | | HKD | | | 194,000 | | | | 87,846 | | | | 0.85 | |
CITIC Securities Co. Ltd., Class H | | HKD | | | 44,000 | | | | 109,589 | | | | 1.06 | |
Ju Teng International Holdings Ltd. | | HKD | | | 142,000 | | | | 79,697 | | | | 0.77 | |
Nine Dragons Paper Holdings Ltd. | | HKD | | | 127,000 | | | | 98,296 | | | | 0.95 | |
Ping An Insurance Group Co. of China Ltd., Class H | | HKD | | | 42,000 | | | | 343,963 | | | | 3.33 | |
Shimao Property Holdings Ltd. | | HKD | | | 95,000 | | | | 204,098 | | | | 1.97 | |
SouFun Holdings Ltd. ADR | | | | | 10,327 | | | | 100,688 | | | | 0.97 | |
Sunac China Holdings Ltd. | | HKD | | | 200,000 | | | | 173,108 | | | | 1.67 | |
ZTE Corp., Class H | | HKD | | | 36,200 | | | | 87,704 | | | | 0.85 | |
| | | | | | | | | 2,846,486 | | | | 27.54 | |
Egypt (Cost $37,408) | | | | | | | | | | | | | | |
Egyptian Financial Group-Hermes Holding GDR | | | | | 7,277 | | | | 32,747 | | | | 0.32 | |
| | | | | | | | | 32,747 | | | | 0.32 | |
Greece (Cost $119,613) | | | | | | | | | | | | | | |
Piraeus Bank S.A. | | EUR | | | 53,475 | | | | 77,852 | | | | 0.75 | |
| | | | | | | | | 77,852 | | | | 0.75 | |
Hungary (Cost $110,054) | | | | | | | | | | | | | | |
OTP Bank PLC | | HUF | | | 6,109 | | | | 101,219 | | | | 0.98 | |
| | | | | | | | | 101,219 | | | | 0.98 | |
India (Cost $77,942) | | | | | | | | | | | | | | |
ICICI Bank Ltd. ADR | | | | | 1,961 | | | | 110,522 | | | | 1.07 | |
| | | | | | | | | 110,522 | | | | 1.07 | |
Indonesia (Cost $210,365) | | | | | | | | | | | | | | |
Bank Mandiri Persero Tbk PT | | IDR | | | 121,700 | | | | 104,445 | | | | 1.01 | |
Bank Rakyat Indonesia Persero Tbk PT | | IDR | | | 70,600 | | | | 64,890 | | | | 0.63 | |
Indomobil Sukses Internasional Tbk PT | | IDR | | | 33,500 | | | | 10,675 | | | | 0.10 | |
Mitra Adiperkasa Tbk PT | | IDR | | | 54,900 | | | | 24,128 | | | | 0.23 | |
| | | | | | | | | 204,138 | | | | 1.97 | |
Mexico (Cost $345,042) | | | | | | | | | | | | | | |
Cemex S.A.B. de C.V. ADR (Participation Certificate) | | | | | 8,555 | | | | 105,226 | | | | 1.02 | |
Grupo Mexico S.A.B. de C.V., Series B | | MXN | | | 28,926 | | | | 99,390 | | | | 0.96 | |
See accompanying notes to the financial statements.
107
ASHMORE EMERGING MARKETS EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Shares | | | Value | | | % of Net
Assets | |
Mexico - (continued) | | | | | | | | | | | | | | |
Ternium S.A. ADR | | | | | 6,099 | | | $ | 134,239 | | | | 1.30 | |
| | | | | | | | | 338,855 | | | | 3.28 | |
Russian Federation (Cost $763,774) | | | | | | | | | | | | | | |
Aeroflot - Russian Airlines OJSC | | | | | 36,000 | | | | 31,974 | | | | 0.31 | |
Gazprom OAO ADR | | | | | 29,477 | | | | 195,636 | | | | 1.89 | |
NOVATEK OAO GDR (Registered) | | | | | 4,132 | | | | 444,127 | | | | 4.30 | |
| | | | | | | | | 671,737 | | | | 6.50 | |
Singapore (Cost $202,719) | | | | | | | | | | | | | | |
Lippo Karawaci Tbk PT | | IDR | | | 2,398,700 | | | | 213,569 | | | | 2.07 | |
| | | | | | | | | 213,569 | | | | 2.07 | |
South Korea (Cost $1,571,856) | | | | | | | | | | | | | | |
Hyundai Mobis Co. Ltd. | | KRW | | | 420 | | | | 100,116 | | | | 0.97 | |
Hyundai Motor Co. | | KRW | | | 598 | | | | 95,374 | | | | 0.92 | |
Kia Motors Corp. | | KRW | | | 5,929 | | | | 289,245 | | | | 2.80 | |
Korea Electric Power Corp. | | KRW | | | 6,932 | | | | 302,344 | | | | 2.92 | |
Korean Reinsurance Co. | | KRW | | | 10,950 | | | | 116,875 | | | | 1.13 | |
LG Chem Ltd. | | KRW | | | 668 | | | | 124,293 | | | | 1.20 | |
LG Household & Health Care Ltd. | | KRW | | | 171 | | | | 99,833 | | | | 0.97 | |
POSCO | | KRW | | | 319 | | | | 91,690 | | | | 0.89 | |
Samsung Engineering Co. Ltd. | | KRW | | | 1,432 | | | | 82,615 | | | | 0.80 | |
SK Innovation Co. Ltd. | | KRW | | | 914 | | | | 74,602 | | | | 0.72 | |
| | | | | | | | | 1,376,987 | | | | 13.32 | |
Taiwan (Cost $1,037,296) | | | | | | | | | | | | | | |
Capital Securities Corp. | | TWD | | | 126,000 | | | | 40,700 | | | | 0.39 | |
Casetek Holdings Ltd. | | TWD | | | 31,000 | | | | 191,237 | | | | 1.85 | |
Evergreen Marine Corp. Taiwan Ltd. | | TWD | | | 108,000 | | | | 63,843 | | | | 0.62 | |
Hon Hai Precision Industry Co. Ltd. | | TWD | | | 99,600 | | | | 315,207 | | | | 3.05 | |
Novatek Microelectronics Corp. | | TWD | | | 41,000 | | | | 212,624 | | | | 2.06 | |
Shin Kong Financial Holding Co. Ltd. | | TWD | | | 347,792 | | | | 105,707 | | | | 1.02 | |
United Microelectronics Corp. | | TWD | | | 235,000 | | | | 104,026 | | | | 1.01 | |
| | | | | | | | | 1,033,344 | | | | 10.00 | |
Thailand (Cost $219,933) | | | | | | | | | | | | | | |
Kasikornbank PCL NVDR | | THB | | | 25,600 | | | | 185,779 | | | | 1.80 | |
Krung Thai Bank PCL (Registered) | | THB | | | 80,300 | | | | 57,445 | | | | 0.55 | |
| | | | | | | | | 243,224 | | | | 2.35 | |
Turkey (Cost $220,990) | | | | | | | | | | | | | | |
TAV Havalimanlari Holding A.S. | | TRY | | | 13,809 | | | | 115,745 | | | | 1.12 | |
Yapi ve Kredi Bankasi A.S. | | TRY | | | 46,579 | | | | 102,019 | | | | 0.99 | |
| | | | | | | | | 217,764 | | | | 2.11 | |
United Arab Emirates (Cost $56,698) | | | | | | | | | | | | | | |
Emaar Malls Group PJSC | | AED | | | 71,770 | | | | 62,723 | | | | 0.61 | |
| | | | | | | | | 62,723 | | | | 0.61 | |
Total Common Stock (Cost $8,618,177) | | | | | | | | | 8,529,535 | | | | 82.53 | |
| | | | |
Preferred Stock | | | | | | | | | | | | | | |
| | | | |
Brazil (Cost $716,624) | | | | | | | | | | | | | | |
Braskem S.A. ADR | | | | | 10,964 | | | | 160,842 | | | | 1.55 | |
Itau Unibanco Holding S.A. ADR | | | | | 14,417 | | | | 212,795 | | | | 2.06 | |
Petroleo Brasileiro S.A. | | | | | 10,281 | | | | 125,736 | | | | 1.22 | |
Usinas Siderurgicas de Minas Gerais S.A., Class A | | BRL | | | 43,700 | | | | 100,525 | | | | 0.97 | |
| | | | | | | | | 599,898 | | | | 5.80 | |
See accompanying notes to the financial statements.
108
ASHMORE EMERGING MARKETS EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Shares | | | Value | | | % of Net
Assets | |
Colombia (Cost $107,342) | | | | | | | | | | | | | | |
Avianca Holdings S.A. ADR | | | | | 7,065 | | | $ | 105,198 | | | | 1.02 | |
| | | | | | | | | 105,198 | | | | 1.02 | |
South Korea (Cost $56,363) | | | | | | | | | | | | | | |
Hyundai Motor Co. Ltd. | | KRW | | | 336 | | | | 40,966 | | | | 0.40 | |
| | | | | | | | | 40,966 | | | | 0.40 | |
Total Preferred Stock (Cost $880,329) | | | | | | | | | 746,062 | | | | 7.22 | |
| | | | |
Equity-Linked Securities | | | | | | | | | | | | | | |
| | | | |
India (Cost $566,492) | | | | | | | | | | | | | | |
Adani Ports and Special Economic Zone Ltd., Issued by JP Morgan Structured Products B.V. | | | | | 36,568 | | | | 170,085 | | | | 1.64 | |
Axis Bank Ltd., Issued by Merrill Lynch International & Co. | | | | | 15,281 | | | | 109,356 | | | | 1.06 | |
Maruti Suzuki India Ltd., Issued by Merrill Lynch International & Co. | | | | | 2,075 | | | | 113,361 | | | | 1.10 | |
Oil & Natural Gas Corp. Ltd., Issued by JP Morgan Structured Products B.V. | | | | | 15,369 | | | | 102,557 | | | | 0.99 | |
Shriram Transport Finance Co. Ltd., Issued by JP Morgan Structured Products B.V. | | | | | 3,388 | | | | 52,649 | | | | 0.51 | |
Tata Chemicals Ltd., Issued by JP Morgan Structured Products B.V. | | | | | 7,875 | | | | 52,344 | | | | 0.51 | |
Tech Mahindra Ltd., Issued by Citigroup Global Markets | | | | | 4,028 | | | | 165,825 | | | | 1.60 | |
| | | | | | | | | 766,177 | | | | 7.41 | |
Total Equity-Linked Securities (Cost $566,492) | | | | | | | | | 766,177 | | | | 7.41 | |
| | | | |
Total Investments (Total Cost $10,064,998) | | | | | | | | | 10,041,774 | | | | 97.16 | |
| | | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for
further detail) | | | | | | | | | 293,355 | | | | 2.84 | |
| | | | |
Net Assets | | | | | | | | | $10,335,129 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
Percentages shown are based on net assets.
See accompanying notes to the financial statements.
109
ASHMORE EMERGING MARKETS EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
At October 31, 2014, the industry sectors for the Ashmore Emerging Markets Equity Fund were:
| | | | |
| Sector | | Percentage of
Net Assets | |
Consumer Discretionary | | | 7.5% | |
Consumer Staples | | | 2.8 | |
Energy | | | 12.7 | |
Financials | | | 35.5 | |
Industrials | | | 6.5 | |
Information Technology | | | 17.3 | |
Materials | | | 11.0 | |
Utilities | | | 3.9 | |
Total Investments | | | 97.2 | |
Other Assets Less Liabilities | | | 2.8 | |
Net Assets | | | 100.0% | |
| |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities and other financial instruments, if any. See note 4 in the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. The following is a summary of the inputs used in valuing the Ashmore Emerging Markets Equity Fund’s investments, as of October 31, 2014.
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | |
Argentina | | $ | 111,454 | | | $ | — | | | $ | — | | | $ | 111,454 | |
Brazil | | | 758,943 | | | | — | | | | — | | | | 758,943 | |
Chile | | | 23,828 | | | | 104,143 | | | | — | | | | 127,971 | |
China | | | 626,698 | | | | 2,015,690 | | | | — | | | | 2,642,388 | |
Egypt | | | 32,747 | | | | — | | | | — | | | | 32,747 | |
Greece | | | — | | | | 77,852 | | | | — | | | | 77,852 | |
Hong Kong | | | — | | | | 204,098 | | | | — | | | | 204,098 | |
Hungary | | | — | | | | 101,219 | | | | — | | | | 101,219 | |
India | | | 110,522 | | | | — | | | | — | | | | 110,522 | |
Indonesia | | | — | | | | 204,138 | | | | — | | | | 204,138 | |
Mexico | | | 338,855 | | | | — | | | | — | | | | 338,855 | |
Russian Federation | | | 31,974 | | | | 639,763 | | | | — | | | | 671,737 | |
Singapore | | | — | | | | 213,569 | | | | — | | | | 213,569 | |
South Korea | | | — | | | | 1,376,987 | | | | — | | | | 1,376,987 | |
Taiwan | | | — | | | | 1,033,344 | | | | — | | | | 1,033,344 | |
Thailand | | | 57,445 | | | | 185,779 | | | | — | | | | 243,224 | |
Turkey | | | — | | | | 217,764 | | | | — | | | | 217,764 | |
United Arab Emirates | | | 62,723 | | | | — | | | | — | | | | 62,723 | |
| | | | | | | | | | | | | | | | |
Total Common Stock | | | 2,155,189 | | | | 6,374,346 | | | | — | | | | 8,529,535 | |
Preferred Stock | | | | | | | | | | | | | | | | |
Brazil | | | 599,898 | | | | — | | | | — | | | | 599,898 | |
Colombia | | | 105,198 | | | | — | | | | — | | | | 105,198 | |
South Korea | | | — | | | | 40,966 | | | | — | | | | 40,966 | |
| | | | | | | | | | | | | | | | |
Total Preferred Stock | | | 705,096 | | | | 40,966 | | | | — | | | | 746,062 | |
Equity - Linked Securities | | | | | | | | | | | | | | | | |
India | | | — | | | | 766,177 | | | | — | | | | 766,177 | |
Total Investments | | $ | 2,860,285 | | | $ | 7,181,489 | | | $ | — | | | $ | 10,041,774 | |
See accompanying notes to the financial statements.
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ASHMORE EMERGING MARKETS EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2014, the Fund had transfers from Level 1 to Level 2 as disclosed below:
Transfers from Level 1 to Level 2
| | | | | | |
| Country | | Value | | | Reason |
Common Stocks | | | | | | |
| | | | | | Fair value factor was not applicable in prior year |
China | | $ | 1,331,318 | | | (post close market activity) |
| | | | | | Fair value factor was not applicable in prior year |
Hong Kong | | | 204,098 | | | (post close market activity) |
| | | | | | Fair value factor was not applicable in prior year |
Indonesia | | | 10,675 | | | (post close market activity) |
| | | | | | Fair value factor was not applicable in prior year |
Russian Federation | | | 444,127 | | | (post close market activity) |
| | | | | | Fair value factor was not applicable in prior year |
South Korea | | | 808,518 | | | (post close market activity) |
| | | | | | Fair value factor was not applicable in prior year |
Taiwan | | | 273,576 | | | (post close market activity) |
| | | | | | Fair value factor was not applicable in prior year |
Thailand | | | 185,779 | | | (post close market activity) |
Total | | $ | 3,258,091 | | | |
The following is a summary of the fair values of the Fund’s derivative instruments* :
The Effect of Financial Derivative Instruments on the Statements of Operations for the Year Ended October 31, 2014:
| | |
| | | Derivatives Not Accounted for as
Hedging Instruments |
| | | Foreign Exchange |
Realized Gain (Loss) on Derivatives Recognized resulting from Operations: |
Net Realized Loss on Forward Foreign Currency Exchange Contracts | | $ (1,467) |
| | |
* See note 10 in the Notes to the Financial Statements for additional information.
At October 31, 2014, for U.S. federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation/(depreciation) on investments in securities (including the effects of foreign currency translation) and the cost basis of investments were as follows:
| | | | |
Federal tax cost of investments | | | $10,127,975 | |
Gross tax appreciation of investments | | | 664,389 | |
Gross tax depreciation of investments | | | (750,590) | |
Net tax depreciation of investments | | | $(86,201) | |
The difference between book basis and tax basis net unrealized appreciation or depreciation is attributable primarily to the tax deferral of losses on wash sales.
See accompanying notes to the financial statements.
111
ASHMORE EMERGING MARKETS SMALL-CAP EQUITY FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Shares | | | Value | | | % of Net
Assets | |
Common Stock | | | | | | | | | | | | | | |
| | | | |
Argentina (Cost $761,785) | | | | | | | | | | | | | | |
IRSA Inversiones y Representaciones S.A. ADR | | | | | 49,895 | | | $ | 734,953 | | | | 1.49 | |
| | | | | | | | | 734,953 | | | | 1.49 | |
Brazil (Cost $4,536,880) | | | | | | | | | | | | | | |
ALL - America Latina Logistica S.A. | | BRL | | | 65,400 | | | | 179,211 | | | | 0.36 | |
GAEC Educacao S.A. | | BRL | | | 44,800 | | | | 569,514 | | | | 1.16 | |
Iochpe-Maxion S.A. | | BRL | | | 140,000 | | | | 963,881 | | | | 1.95 | |
Magazine Luiza S.A. | | BRL | | | 93,400 | | | | 310,969 | | | | 0.63 | |
Mills Estruturas e Servicos de Engenharia S.A. | | BRL | | | 67,500 | | | | 439,939 | | | | 0.89 | |
Tegma Gestao Logistica | | BRL | | | 13,600 | | | | 99,891 | | | | 0.20 | |
Tereos Internacional S.A. | | BRL | | | 514,592 | | | | 438,189 | | | | 0.89 | |
Tupy S.A. | | BRL | | | 97,700 | | | | 693,942 | | | | 1.41 | |
Wilson Sons Ltd. BDR | | BRL | | | 16,640 | | | | 235,038 | | | | 0.48 | |
| | | | | | | | | 3,930,574 | | | | 7.97 | |
Chile (Cost $1,566,230) | | | | | | | | | | | | | | |
Cia Sud Americana de Vapores S.A. | | CLP | | | 5,849,451 | | | | 220,547 | | | | 0.45 | |
Empresas La Polar S.A. | | CLP | | | 3,694,067 | | | | 238,396 | | | | 0.48 | |
Forus S.A. | | CLP | | | 64,533 | | | | 287,501 | | | | 0.58 | |
Sonda S.A. | | CLP | | | 67,644 | | | | 164,410 | | | | 0.33 | |
Vina Concha y Toro S.A. | | CLP | | | 128,760 | | | | 245,209 | | | | 0.50 | |
| | | | | | | | | 1,156,063 | | | | 2.34 | |
China (Cost $10,173,397) | | | | | | | | | | | | | | |
21Vianet Group, Inc. ADR | | | | | 55,065 | | | | 1,151,960 | | | | 2.34 | |
Boer Power Holdings Ltd. | | HKD | | | 185,000 | | | | 231,314 | | | | 0.47 | |
China Merchants Land Ltd. | | HKD | | | 2,834,000 | | | | 405,739 | | | | 0.82 | |
Chinasoft International Ltd. | | HKD | | | 1,368,000 | | | | 459,939 | | | | 0.93 | |
GOME Electrical Appliances Holding Ltd. | | HKD | | | 2,680,000 | | | | 421,361 | | | | 0.85 | |
Hollysys Automation Technologies Ltd. | | | | | 23,165 | | | | 568,237 | | | | 1.15 | |
Home Inns & Hotels Management, Inc. ADR | | | | | 1,174 | | | | 35,467 | | | | 0.07 | |
Hydoo International Holding Ltd. | | HKD | | | 266,000 | | | | 54,281 | | | | 0.11 | |
iKang Healthcare Group, Inc. ADR | | | | | 30,307 | | | | 553,406 | | | | 1.12 | |
Ju Teng International Holdings Ltd. | | HKD | | | 1,226,000 | | | | 688,085 | | | | 1.40 | |
Kingsoft Corp. Ltd. | | HKD | | | 73,000 | | | | 173,908 | | | | 0.35 | |
Noah Holdings Ltd. ADR | | | | | 45,000 | | | | 738,000 | | | | 1.50 | |
Phoenix New Media Ltd. ADR | | | | | 69,122 | | | | 709,192 | | | | 1.44 | |
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical
Co. Ltd., Class H | | HKD | | | 220,000 | | | | 214,242 | | | | 0.43 | |
Sinovac Biotech Ltd. | | | | | 29 | | | | 153 | | | | — | |
SouFun Holdings Ltd. ADR | | | | | 125,508 | | | | 1,223,703 | | | | 2.48 | |
Sunac China Holdings Ltd. | | HKD | | | 1,898,000 | | | | 1,642,792 | | | | 3.33 | |
Tarena International, Inc. ADR | | | | | 22,300 | | | | 306,179 | | | | 0.62 | |
Xinchen China Power Holdings Ltd. | | HKD | | | 881,000 | | | | 491,546 | | | | 1.00 | |
ZTE Corp., Class H | | HKD | | | 306,800 | | | | 743,299 | | | | 1.51 | |
| | | | | | | | | 10,812,803 | | | | 21.92 | |
Egypt (Cost $400,303) | | | | | | | | | | | | | | |
Egyptian Financial Group-Hermes Holding GDR | | | | | 107,834 | | | | 485,253 | | | | 0.98 | |
| | | | | | | | | 485,253 | | | | 0.98 | |
Hong Kong (Cost $1,559,004) | | | | | | | | | | | | | | |
Nord Anglia Education, Inc. | | | | | 27,500 | | | | 469,700 | | | | 0.95 | |
Pacific Basin Shipping Ltd. | | HKD | | | 991,000 | | | | 476,911 | | | | 0.97 | |
Singamas Container Holdings Ltd. | | HKD | | | 2,648,000 | | | | 457,305 | | | | 0.93 | |
| | | | | | | | | 1,403,916 | | | | 2.85 | |
See accompanying notes to the financial statements.
112
ASHMORE EMERGING MARKETS SMALL-CAP EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Shares | | | Value | | | % of Net
Assets | |
Indonesia (Cost $2,568,408) | | | | | | | | | | | | | | |
Adi Sarana Armada Tbk PT | | IDR | | | 2,421,600 | | | $ | 37,339 | | | | 0.08 | |
Bank Tabungan Negara Persero Tbk PT | | IDR | | | 15,733,900 | | | | 1,482,189 | | | | 3.00 | |
Berlian Laju Tanker Tbk PT(2) | | IDR | | | 4,428,000 | | | | 17,954 | | | | 0.04 | |
Ciputra Surya Tbk PT | | IDR | | | 1,941,700 | | | | 393,968 | | | | 0.80 | |
Lippo Karawaci Tbk PT | | IDR | | | 5,125,500 | | | | 456,350 | | | | 0.92 | |
| | | | | | | | | 2,387,800 | | | | 4.84 | |
Mexico (Cost $2,500,533) | | | | | | | | | | | | | | |
Cydsa S.A.B. de C.V. | | MXN | | | 244,899 | | | | 599,779 | | | | 1.22 | |
Empresas ICA S.A.B. de C.V. ADR | | | | | 24,911 | | | | 177,616 | | | | 0.36 | |
Grupo Famsa S.A.B. de C.V., Series A | | MXN | | | 272,000 | | | | 282,781 | | | | 0.58 | |
Grupo Industrial Saltillo S.A.B. de C.V. | | MXN | | | 226,600 | | | | 568,593 | | | | 1.15 | |
Grupo Lamosa S.A.B. de C.V. | | MXN | | | 148,700 | | | | 325,751 | | | | 0.66 | |
PLA Administradora Industrial S de RL de C.V. | | MXN | | | 328,200 | | | | 760,651 | | | | 1.54 | |
| | | | | | | | | 2,715,171 | | | | 5.51 | |
Philippines (Cost $424,163) | | | | | | | | | | | | | | |
Century Properties Group, Inc. | | PHP | | | 11,117,897 | | | | 268,733 | | | | 0.54 | |
Filinvest Land, Inc. | | PHP | | | 2,821,000 | | | | 96,784 | | | | 0.20 | |
| | | | | | | | | 365,517 | | | | 0.74 | |
Russian Federation (Cost $1,508,454) | | | | | | | | | | | | | | |
Aeroflot - Russian Airlines OJSC | | | | | 266,600 | | | | 236,784 | | | | 0.48 | |
Aeroflot - Russian Airlines OJSC (MIC Exchange) | | RUB | | | 148,400 | | | | 131,837 | | | | 0.27 | |
LSR Group OJSC GDR (Registered) | | | | | 221,748 | | | | 648,473 | | | | 1.31 | |
| | | | | | | | | 1,017,094 | | | | 2.06 | |
South Africa (Cost $453,286) | | | | | | | | | | | | | | |
Murray & Roberts Holdings Ltd. | | ZAR | | | 166,659 | | | | 342,417 | | | | 0.69 | |
| | | | | | | | | 342,417 | | | | 0.69 | |
South Korea (Cost $7,043,531) | | | | | | | | | | | | | | |
Basic House (The) Co. Ltd. | | KRW | | | 22,918 | | | | 411,014 | | | | 0.83 | |
BS Financial Group, Inc. | | KRW | | | 31,499 | | | | 489,572 | | | | 0.99 | |
Dongsung Finetec Co. Ltd. | | KRW | | | 50,559 | | | | 445,963 | | | | 0.91 | |
Interpark Corp. | | KRW | | | 62,217 | | | | 528,699 | | | | 1.07 | |
Interpark INT Corp. | | KRW | | | 17,820 | | | | 425,588 | | | | 0.86 | |
i-SENS, Inc. | | KRW | | | 10,019 | | | | 590,150 | | | | 1.20 | |
Korean Reinsurance Co. | | KRW | | | 75,706 | | | | 808,051 | | | | 1.64 | |
Medy-Tox, Inc. | | KRW | | | 3,478 | | | | 813,134 | | | | 1.65 | |
Modetour Network, Inc. | | KRW | | | 45,670 | | | | 896,038 | | | | 1.82 | |
Nexen Tire Corp. | | KRW | | | 27,394 | | | | 336,043 | | | | 0.68 | |
Samchuly Bicycle Co. Ltd. | | KRW | | | 24,578 | | | | 511,019 | | | | 1.04 | |
Soulbrain Co. Ltd. | | KRW | | | 18,308 | | | | 470,371 | | | | 0.95 | |
Vieworks Co. Ltd. | | KRW | | | 9,099 | | | | 314,416 | | | | 0.64 | |
| | | | | | | | | 7,040,058 | | | | 14.28 | |
Taiwan (Cost $9,873,445) | | | | | | | | | | | | | | |
Altek Corp. | | TWD | | | 524,900 | | | | 570,802 | | | | 1.16 | |
Capital Securities Corp. | | TWD | | | 1,359,000 | | | | 438,979 | | | | 0.89 | |
Casetek Holdings Ltd. | | TWD | | | 246,000 | | | | 1,517,560 | | | | 3.08 | |
China Airlines Ltd. | | TWD | | | 715,000 | | | | 279,955 | | | | 0.57 | |
Evergreen Marine Corp. Taiwan Ltd. | | TWD | | | 1,241,000 | | | | 733,607 | | | | 1.49 | |
FLEXium Interconnect, Inc. | | TWD | | | 391,000 | | | | 828,451 | | | | 1.68 | |
Globe Union Industrial Corp. | | TWD | | | 1,125 | | | | 552 | | | | — | |
Gloria Material Technology Corp. | | TWD | | | 943,000 | | | | 625,956 | | | | 1.27 | |
Gourmet Master Co. Ltd. | | TWD | | | 7,000 | | | | 44,580 | | | | 0.09 | |
Innolux Corp. | | TWD | | | 2,618,891 | | | | 1,196,861 | | | | 2.43 | |
Johnson Health Tech Co. Ltd. | | TWD | | | 152,257 | | | | 365,599 | | | | 0.74 | |
Primax Electronics Ltd. | | TWD | | | 630,000 | | | | 770,009 | | | | 1.56 | |
See accompanying notes to the financial statements.
113
ASHMORE EMERGING MARKETS SMALL-CAP EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Shares | | | Value | | | % of Net
Assets | |
Taiwan - (continued) | | | | | | | | | | | | | | |
Shin Kong Financial Holding Co. Ltd. | | TWD | | | 1,596,109 | | | $ | 485,116 | | | | 0.98 | |
Shin Zu Shing Co. Ltd. | | TWD | | | 79,000 | | | | 173,573 | | | | 0.35 | |
Tainan Spinning Co. Ltd. | | TWD | | | 748,528 | | | | 416,192 | | | | 0.84 | |
Taiwan Paiho Ltd. | | TWD | | | 688,000 | | | | 958,825 | | | | 1.94 | |
Taiwan Sanyo Electric Co. Ltd. | | TWD | | | 101,150 | | | | 106,500 | | | | 0.22 | |
Toung Loong Textile Manufacturing Co. | | TWD | | | 45,000 | | | | 126,178 | | | | 0.26 | |
| | | | | | | | | 9,639,295 | | | | 19.55 | |
Thailand (Cost $504,752) | | | | | | | | | | | | | | |
Amata Corp. PCL (Registered) | | THB | | | 866,500 | | | | 412,366 | | | | 0.84 | |
| | | | | | | | | 412,366 | | | | 0.84 | |
Turkey (Cost $979,564) | | | | | | | | | | | | | | |
Dogus Otomotiv Servis ve Ticaret A.S. | | TRY | | | 120,576 | | | | 518,160 | | | | 1.05 | |
Turkiye Sinai Kalkinma Bankasi A.S. | | TRY | | | 581,692 | | | | 508,968 | | | | 1.03 | |
| | | | | | | �� | | 1,027,128 | | | | 2.08 | |
Ukraine (Cost $560,108) | | | | | | | | | | | | | | |
Luxoft Holding, Inc. | | | | | 17,900 | | | | 715,821 | | | | 1.45 | |
| | | | | | | | | 715,821 | | | | 1.45 | |
Total Common Stock (Cost $45,413,843) | | | | | | | | | 44,186,229 | | | | 89.59 | |
| | | | |
Preferred Stock | | | | | | | | | | | | | | |
| | | | |
Brazil (Cost $321,220) | | | | | | | | | | | | | | |
Banco ABC Brasil S.A. | | BRL | | | 52,171 | | | | 289,921 | | | | 0.59 | |
| | | | | | | | | 289,921 | | | | 0.59 | |
Colombia (Cost $1,069,688) | | | | | | | | | | | | | | |
Avianca Holdings S.A. ADR | | | | | 63,603 | | | | 947,048 | | | | 1.92 | |
| | | | | | | | | 947,048 | | | | 1.92 | |
Total Preferred Stock (Cost $1,390,908) | | | | | | | | | 1,236,969 | | | | 2.51 | |
| | | | |
Equity-Linked Securities | | | | | | | | | | | | | | |
| | | | |
India (Cost $2,212,443) | | | | | | | | | | | | | | |
Balrampur Chini Mills Ltd., Issued by Merrill Lynch International & Co. | | | | | 701,293 | | | | 627,052 | | | | 1.27 | |
ING Vysya Bank Ltd., Issued by Merrill Lynch International & Co. | | | | | 40,369 | | | | 425,388 | | | | 0.86 | |
MT Educare Ltd., Issued by Merrill Lynch International & Co. | | | | | 103,306 | | | | 227,797 | | | | 0.46 | |
Persistent Systems Ltd., Issued by JP Morgan Structured Products | | | | | 20,045 | | | | 427,965 | | | | 0.87 | |
PI Industries Ltd., Issued by Citigroup Global Markets(3) | | | | | 84,348 | | | | 616,293 | | | | 1.25 | |
Tata Chemicals Ltd., Issued by JP Morgan Structured Products | | | | | 58,443 | | | | 388,458 | | | | 0.79 | |
| | | | | | | | | 2,712,953 | | | | 5.50 | |
See accompanying notes to the financial statements.
114
ASHMORE EMERGING MARKETS SMALL-CAP EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Shares | | | Value | | | % of Net
Assets | |
Saudi Arabia (Cost $1,001,380) | | | | | | | | | | | | | | |
Abdullah Al Othaim Markets, Issued by JP Morgan Structured Products | | | | | 8,548 | | | $ | 247,845 | | | | 0.50 | |
Al Khaleej Training and Education Co., Issued by JP | | | | | 42,316 | | | | 756,257 | | | | 1.54 | |
Morgan Structured Products | | | | | | | | | | | | | | |
| | | | | | | | | 1,004,102 | | | | 2.04 | |
Total Equity-Linked Securities (Cost $3,213,823) | | | | | | | | | 3,717,055 | | | | 7.54 | |
| | | | |
Total Investments (Total Cost $50,018,574) | | | | | | | | | 49,140,253 | | | | 99.64 | |
| | | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for further detail) | | | | | | | | | 177,600 | | | | 0.36 | |
| | | | |
Net Assets | | | | | | | | $ | 49,317,853 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | Security determined to be illiquid by the Investment Manager. |
| (3) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded without registration under the Securities Act of 1933. |
Percentages shown are based on net assets.
At October 31, 2014, the industry sectors for the Ashmore Emerging Markets Small-Cap Equity Fund were:
| | | | |
| Sector | | Percentage of
Net Assets | |
Consumer Discretionary | | | 22.9% | |
Consumer Staples | | | 3.2 | |
Financials | | | 24.4 | |
Health Care | | | 5.0 | |
Industrials | | | 14.7 | |
Information Technology | | | 23.0 | |
Materials | | | 6.4 | |
Total Investments | | | 99.6 | |
Other Assets Less Liabilities | | | 0.4 | |
Net Assets | | | 100.0% | |
| | |
See accompanying notes to the financial statements.
115
ASHMORE EMERGING MARKETS SMALL-CAP EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities and other financial instruments, if any. See note 4 in the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. The following is a summary of the inputs used in valuing the Ashmore Emerging Markets Small-Cap Equity Fund’s investments, which are carried at fair value as of October 31, 2014:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | |
Argentina | | $ | 734,953 | | | $ | — | | | $ | — | | | $ | 734,953 | |
Brazil | | | 3,930,574 | | | | — | | | | — | | | | 3,930,574 | |
Chile | | | — | | | | 1,156,063 | | | | — | | | | 1,156,063 | |
China | | | 5,286,297 | | | | 5,526,506 | | | | — | | | | 10,812,803 | |
Egypt | | | 485,253 | | | | — | | | | — | | | | 485,253 | |
Hong Kong | | | 469,700 | | | | 934,216 | | | | — | | | | 1,403,916 | |
Indonesia | | | — | | | | 2,369,846 | | | | 17,954 | | | | 2,387,800 | |
Mexico | | | 2,715,171 | | | | — | | | | — | | | | 2,715,171 | |
Philippines | | | — | | | | 365,517 | | | | — | | | | 365,517 | |
Russian Federation | | | 400,239 | | | | 616,855 | | | | — | | | | 1,017,094 | |
South Africa | | | — | | | | 342,417 | | | | — | | | | 342,417 | |
South Korea | | | — | | | | 7,040,058 | | | | — | | | | 7,040,058 | |
Taiwan | | | — | | | | 9,639,295 | | | | — | | | | 9,639,295 | |
Thailand | | | 412,366 | | | | — | | | | — | | | | 412,366 | |
Turkey | | | — | | | | 1,027,128 | | | | — | | | | 1,027,128 | |
Ukraine | | | 715,821 | | | | — | | | | — | | | | 715,821 | |
| | | | | | | | | | | | | | | | |
Total Common Stock | | | 15,150,374 | | | | 29,017,901 | | | | 17,954 | | | | 44,186,229 | |
Preferred Stock | | | | | | | | | | | | | | | | |
Brazil | | | 289,921 | | | | — | | | | — | | | | 289,921 | |
Colombia | | | 947,048 | | | | — | | | | — | | | | 947,048 | |
| | | | | | | | | | | | | | | | |
Total Preferred Stock | | | 1,236,969 | | | | — | | | | — | | | | 1,236,969 | |
Equity-Linked Securities | | | | | | | | | | | | | | | | |
India | | | — | | | | 2,712,953 | | | | — | | | | 2,712,953 | |
Saudi Arabia | | | — | | | | 1,004,102 | | | | — | | | | 1,004,102 | |
| | | | | | | | | | | | | | | | |
Total Equity-Linked Securities | | | — | | | | 3,717,055 | | | | — | | | | 3,717,055 | |
Total Investments | | $ | 16,387,343 | | | $ | 32,734,956 | | | $ | 17,954 | | | $ | 49,140,253 | |
See accompanying notes to the financial statements.
116
ASHMORE EMERGING MARKETS SMALL-CAP EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2014, the Fund had transfers from Level 1 to 2 as disclosed below:
Transfers from Level 1 to Level 2
| | | | | | |
| Country | | Value | | | Reason |
Common Stocks | | | | | | |
| | | | | | Fair value factor was not applicable in prior year |
Chile | | $ | 220,547 | | | (post close market activity) |
| | | | | | Fair value factor was not applicable in prior year |
China | | | 2,700,833 | | | (post close market activity) |
| | | | | | Fair value factor was not applicable in prior year |
Hong Kong | | | 476,911 | | | (post close market activity) |
| | | | | | Fair value factor was not applicable in prior year |
Indonesia | | | 37,339 | | | (post close market activity) |
| | | | | | Fair value factor was not applicable in prior year |
Philippines | | | 365,517 | | | (post close market activity) |
| | | | | | Fair value factor was not applicable in prior year |
South Korea | | | 2,940,717 | | | (post close market activity) |
| | | | | | Fair value factor was not applicable in prior year |
Taiwan | | | 3,304,427 | | | (post close market activity) |
| | | | | | Fair value factor was not applicable in prior year |
Turkey | | | 508,968 | | | (post close market activity) |
Total | | $ | 10,555,259 | | | |
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
| | | | | | | | | | | | | | | | | | |
Category and Subcategory | | Beginning
Balance
at 10/31/2013 | | Purchases | | Sales | | Realized
Gains | | Realized
Losses | | Change in
Unrealized
Appreciation/
(Depreciation) | | Transfer
into
Level 3 | | Transfer
out of
Level 3 | | Ending
Balance
at 10/31/2014 |
Investments, at value Common Stock | | $57,744 | | $— | | $— | | $— | | $— | | $(39,790) | | $— | | $— | | $17,954 |
Total | | $57,744 | | $— | | $— | | $— | | $— | | $(39,790) | | $— | | $— | | $17,954 |
See the table on “Quantitative information about Fair Value measurements” for information on the valuation techniques and inputs used to value Level 3 securities at October 31, 2014.
| | | | | | | | | | | | |
| Quantitative Information about Level 3 Fair Value Measurements | |
| | | Fair Value at
10/31/2014 | | | Valuation
Technique | | Unobservable
Input | | Actual | |
Common Stocks | | $ | 17,954 | | | Discount from last
traded price | | Discount
Percentage(a) | | | 75 | % |
| (a) | Represents a discount of 25% to the last publicly traded price reported on applicable market. |
The significant unobservable inputs used in the fair value measurement of the Fund’s investments are listed above. Generally, a change in the assumptions used in any input in isolation may be accompanied by a change in another input. Significant changes in any of the unobservable inputs may significantly impact the fair value measurement. The impact is based on the relationship between each unobservable input and the fair value measurement. The increase in discount percentage reduced the value of the security.
See accompanying notes to the financial statements.
117
ASHMORE EMERGING MARKETS SMALL-CAP EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
The following is a summary of the fair values of the Fund’s derivative instruments*:
The Effect of Financial Derivative Instruments on the Statements of Operations for the Year Ended October 31, 2014:
| | |
| | | Derivatives Not Accounted
for as Hedging Instruments |
| | | Foreign Exchange |
Realized Gain (Loss) on Derivatives Recognized resulting from Operations: | | |
Net Realized Gain on Forward Foreign Currency Exchange Contracts | | $1,379 |
| | |
* See note 10 in the Notes to the Financial Statements for additional information.
At October 31, 2014, for U.S. federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation/(depreciation) on investments in securities (including the effects of foreign currency translation) and the cost basis of investments were as follows:
| | | | |
Federal tax cost of investments | | $ | 50,074,284 | |
Gross tax appreciation of investments | | | 3,311,810 | |
Gross tax depreciation of investments | | | (4,245,841 | ) |
Net tax depreciation of investments | | $ | (934,031 | ) |
The difference between book basis and tax basis net unrealized appreciation or depreciation is attributable primarily to the tax deferral of losses on wash sales.
See accompanying notes to the financial statements.
118
ASHMORE EMERGING MARKETS FRONTIER EQUITY FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Shares | | | Value | | | % of Net
Assets | |
Common Stock | | | | | | | | | | | | | | |
| | | | |
Argentina (Cost $534,073) | | | | | | | | | | | | | | |
Banco Macro S.A. ADR | | | | | 3,677 | | | $ | 155,316 | | | | 2.13 | |
BBVA Banco Frances S.A. ADR | | | | | 5,619 | | | | 74,283 | | | | 1.02 | |
Grupo Financiero Galicia S.A. ADR | | | | | 8,174 | | | | 120,158 | | | | 1.65 | |
YPF S.A. ADR | | | | | 7,693 | | | | 270,563 | | | | 3.71 | |
| | | | | | | | | 620,320 | | | | 8.51 | |
| | | | |
Egypt (Cost $295,996) | | | | | | | | | | | | | | |
Global Telecom Holding S.A.E. GDR | | | | | 46,236 | | | | 138,972 | | | | 1.91 | |
Telecom Egypt Co. | | EGP | | | 76,009 | | | | 145,473 | | | | 1.99 | |
| | | | | | | | | 284,445 | | | | 3.90 | |
| | | | |
Georgia (Cost $31,410) | | | | | | | | | | | | | | |
Bank of Georgia Holdings PLC | | GBP | | | 871 | | | | 35,705 | | | | 0.49 | |
| | | | | | | | | 35,705 | | | | 0.49 | |
| | | | |
Indonesia (Cost $28,234) | | | | | | | | | | | | | | |
Gajah Tunggal Tbk PT | | IDR | | | 93,800 | | | | 11,180 | | | | 0.15 | |
Lippo Cikarang Tbk PT | | IDR | | | 19,800 | | | | 14,119 | | | | 0.20 | |
| | | | | | | | | 25,299 | | | | 0.35 | |
| | | | |
Kazakhstan (Cost $110,727) | | | | | | | | | | | | | | |
Halyk Savings Bank of Kazakhstan JSC GDR (Registered) | | | | | 7,286 | | | | 71,578 | | | | 0.98 | |
KCell JSC (Registered) | | | | | 3,221 | | | | 43,172 | | | | 0.59 | |
| | | | | | | | | 114,750 | | | | 1.57 | |
| | | | |
Kenya (Cost $366,039) | | | | | | | | | | | | | | |
CFC Stanbic Holdings Ltd. | | KES | | | 22,400 | | | | 31,068 | | | | 0.43 | |
Co-operative Bank of Kenya (The) Ltd. | | KES | | | 110,483 | | | | 26,250 | | | | 0.36 | |
Equity Bank Ltd. | | KES | | | 113,400 | | | | 64,054 | | | | 0.88 | |
Kenya Commercial Bank Ltd. | | KES | | | 298,600 | | | | 181,932 | | | | 2.50 | |
NIC Bank Ltd. | | KES | | | 108,800 | | | | 79,115 | | | | 1.08 | |
| | | | | | | | | 382,419 | | | | 5.25 | |
| | | | |
Kuwait (Cost $1,298,424) | | | | | | | | | | | | | | |
Agility Public Warehousing Co. KSC | | KWD | | | 45,542 | | | | 138,301 | | | | 1.90 | |
Burgan Bank SAK | | KWD | | | 38,319 | | | | 72,394 | | | | 0.99 | |
Jazeera Airways | | KWD | | | 95,137 | | | | 142,233 | | | | 1.95 | |
Kuwait Foods Americana(2) | | KWD | | | 19,968 | | | | 211,057 | | | | 2.89 | |
Kuwait Projects Co. Holding KSCP | | KWD | | | 31,500 | | | | 75,628 | | | | 1.04 | |
Mabanee Co. KPSC | | KWD | | | 25,030 | | | | 86,840 | | | | 1.19 | |
National Bank of Kuwait SAKP | | KWD | | | 157,464 | | | | 526,856 | | | | 7.23 | |
| | | | | | | | | 1,253,309 | | | | 17.19 | |
| | | | |
Lithuania (Cost $139,381) | | | | | | | | | | | | | | |
City Service AB | | EUR | | | 25,832 | | | | 54,757 | | | | 0.75 | |
Siauliu Bankas AB | | EUR | | | 214,857 | | | | 77,928 | | | | 1.07 | |
| | | | | | | | | 132,685 | | | | 1.82 | |
| | | | |
Nigeria (Cost $371,114) | | | | | | | | | | | | | | |
Access Bank PLC | | NGN | | | 853,279 | | | | 43,784 | | | | 0.60 | |
FBN Holdings PLC | | NGN | | | 628,654 | | | | 43,947 | | | | 0.60 | |
Fidelity Bank PLC | | NGN | | | 6,066,209 | | | | 71,410 | | | | 0.98 | |
Guaranty Trust Bank PLC | | NGN | | | 549,347 | | | | 82,908 | | | | 1.14 | |
PZ Cussons Nigeria PLC | | NGN | | | 51,797 | | | | 7,455 | | | | 0.10 | |
Zenith Bank PLC | | NGN | | | 599,026 | | | | 76,664 | | | | 1.05 | |
| | | | | | | | | 326,168 | | | | 4.47 | |
| | | | |
Oman (Cost $142,837) | | | | | | | | | | | | | | |
Bank Muscat SAOG | | OMR | | | 77,079 | | | | 141,712 | | | | 1.94 | |
| | | | | | | | | 141,712 | | | | 1.94 | |
See accompanying notes to the financial statements.
119
ASHMORE EMERGING MARKETS FRONTIER EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Shares | | | Value | | | % of Net
Assets | |
Philippines (Cost $872,734) | | | | | | | | | | | | | | |
Bloomberry Resorts Corp. | | PHP | | | 629,200 | | | $ | 219,400 | | | | 3.01 | |
Century Properties Group, Inc. | | PHP | | | 6,663,499 | | | | 161,065 | | | | 2.21 | |
Melco Crown Philippines Resorts Corp. | | PHP | | | 778,900 | | | | 260,208 | | | | 3.57 | |
San Miguel Pure Foods Co., Inc. | | PHP | | | 39,180 | | | | 200,974 | | | | 2.76 | |
Vista Land & Lifescapes, Inc. | | PHP | | | 576,100 | | | | 78,945 | | | | 1.08 | |
| | | | | | | | | 920,592 | | | | 12.63 | |
| | | | |
Poland (Cost $67,796) | | | | | | | | | | | | | | |
Berling S.A. | | PLN | | | 1,229 | | | | 2,094 | | | | 0.03 | |
ERGIS S.A. | | PLN | | | 12,594 | | | | 17,617 | | | | 0.24 | |
Libet S.A. | | PLN | | | 10,252 | | | | 8,993 | | | | 0.12 | |
Tarczynski S.A. | | PLN | | | 2,369 | | | | 7,059 | | | | 0.10 | |
Vistal Gdynia S.A. | | PLN | | | 5,610 | | | | 22,648 | | | | 0.31 | |
| | | | | | | | | 58,411 | | | | 0.80 | |
| | | | |
Qatar (Cost $76,987) | | | | | | | | | | | | | | |
Mannai Corp. QSC | | QAR | | | 2,642 | | | | 81,572 | | | | 1.12 | |
| | | | | | | | | 81,572 | | | | 1.12 | |
| | | | |
Romania (Cost $40,600) | | | | | | | | | | | | | | |
Banca Transilvania | | RON | | | 109,547 | | | | 56,126 | | | | 0.77 | |
| | | | | | | | | 56,126 | | | | 0.77 | |
| | | | |
Turkey (Cost $73,724) | | | | | | | | | | | | | | |
Turk Tuborg Bira ve Malt Sanayii AS | | TRY | | | 45,507 | | | | 79,006 | | | | 1.08 | |
| | | | | | | | | 79,006 | | | | 1.08 | |
| | | | |
Turkmenistan (Cost $367,189) | | | | | | | | | | | | | | |
Dragon Oil PLC | | EUR | | | 37,444 | | | | 322,111 | | | | 4.42 | |
| | | | | | | | | 322,111 | | | | 4.42 | |
| | | | |
Ukraine (Cost $118,510) | | | | | | | | | | | | | | |
Luxoft Holding, Inc. | | | | | 3,500 | | | | 139,965 | | | | 1.92 | |
| | | | | | | | | 139,965 | | | | 1.92 | |
| | | | |
United Arab Emirates (Cost $495,470) | | | | | | | | | | | | | | |
Emaar Properties PJSC | | AED | | | 47,590 | | | | 132,696 | | | | 1.82 | |
Mashreqbank PSC | | AED | | | 10,476 | | | | 371,067 | | | | 5.09 | |
| | | | | | | | | 503,763 | | | | 6.91 | |
Total Common Stock (Cost $5,431,245) | | | | | | | | | 5,478,358 | | | | 75.14 | |
| | | | |
Preferred Stock | | | | | | | | | | | | | | |
| | | | |
Colombia (Cost $239,495) | | | | | | | | | | | | | | |
Avianca Holdings S.A. ADR | | | | | 17,706 | | | | 263,642 | | | | 3.62 | |
| | | | | | | | | 263,642 | | | | 3.62 | |
Total Preferred Stock (Cost $239,495) | | | | | | | | | 263,642 | | | | 3.62 | |
| | | | |
Rights | | | | | | | | | | | | | | |
| | | | |
Kenya (Cost $ — ) | | | | | | | | | | | | | | |
NIC Bank Ltd.(3) | | KES | | | 7,771 | | | | 1,307 | | | | 0.02 | |
| | | | | | | | | 1,307 | | | | 0.02 | |
Total Rights (Cost $ — ) | | | | | | | | | 1,307 | | | | 0.02 | |
See accompanying notes to the financial statements.
120
ASHMORE EMERGING MARKETS FRONTIER EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Shares | | | Value | | | % of Net
Assets | |
Investment Companies db x-trackers MSCI Pakistan IM TRN Index UCITS ETF | | | | | 179,139 | | | $ | 346,992 | | | | 4.76 | |
Fondul Proprietatea S.A. | | RON | | | 1,358,270 | | | | 362,834 | | | | 4.98 | |
Market Vectors Vietnam ETF | | | | | 11,639 | | | | 248,726 | | | | 3.41 | |
Total Investment Companies (Cost $918,920) | | | | | | | | | 958,552 | | | | 13.15 | |
| | | | |
Total Investments (Total Cost $6,589,660) | | | | | | | | | 6,701,859 | | | | 91.93 | |
| | | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for further detail) | | | | | | | | | 588,592 | | | | 8.07 | |
| | | | |
Net Assets | | | | | | | | $ | 7,290,451 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | Security has been deemed a Level 3 investment. |
| (3) | Security determined to be illiquid by the Investment Manager. |
Percentages shown are based on net assets.
At October 31, 2014, the industry sectors for the Ashmore Emerging Markets Frontier Equity Fund were:
| | | | | | |
| Sector | | Percentage of
Net Assets |
Consumer Discretionary | | | 9.6 | % | | |
Consumer Staples | | | 4.0 | | | |
Energy | | | 8.1 | | | |
Financials | | | 53.7 | | | |
Industrials | | | 9.7 | | | |
Information Technology | | | 1.9 | | | |
Materials | | | 0.4 | | | |
Telecommunication Services | | | 4.5 | | | |
Total Investments | | | 91.9 | | | |
Other Assets Less Liabilities | | | 8.1 | | | |
Net Assets | | | 100.0 | % | | |
|
See accompanying notes to the financial statements.
121
ASHMORE EMERGING MARKETS FRONTIER EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities and other financial instruments, if any. See note 4 in the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. The following is a summary of the inputs used in valuing the Ashmore Emerging Markets Frontier Equity Fund’s investments, which are carried at fair value, as of October 31, 2014:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | |
Argentina | | $ | 620,320 | | | $ | — | | | $ | — | | | $ | 620,320 | |
Egypt | | | — | | | | 284,445 | | | | — | | | | 284,445 | |
Georgia | | | — | | | | 35,705 | | | | — | | | | 35,705 | |
Indonesia | | | — | | | | 25,299 | | | | — | | | | 25,299 | |
Kazakhstan | | | — | | | | 114,750 | | | | — | | | | 114,750 | |
Kenya | | | — | | | | 382,419 | | | | — | | | | 382,419 | |
Kuwait | | | — | | | | 1,042,252 | | | | 211,057 | | | | 1,253,309 | |
Lithuania | | | — | | | | 132,685 | | | | — | | | | 132,685 | |
Nigeria | | | 326,168 | | | | — | | | | — | | | | 326,168 | |
Oman | | | — | | | | 141,712 | | | | — | | | | 141,712 | |
Philippines | | | — | | | | 920,592 | | | | — | | | | 920,592 | |
Poland | | | 2,094 | | | | 56,317 | | | | — | | | | 58,411 | |
Qatar | | | — | | | | 81,572 | | | | — | | | | 81,572 | |
Romania | | | — | | | | 56,126 | | | | — | | | | 56,126 | |
Turkey | | | — | | | | 79,006 | | | | — | | | | 79,006 | |
Turkmenistan | | | — | | | | 322,111 | | | | — | | | | 322,111 | |
Ukraine | | | 139,965 | | | | — | | | | — | | | | 139,965 | |
United Arab Emirates | | | 371,067 | | | | 132,696 | | | | — | | | | 503,763 | |
| | | | | | | | | | | | | | | | |
Total Common Stock | | | 1,459,614 | | | | 3,807,687 | | | | 211,057 | | | | 5,478,358 | |
Preferred Stocks | | | | | | | | | | | | | | | | |
Colombia | | | 263,642 | | | | — | | | | — | | | | 263,642 | |
Rights | | | | | | | | | | | | | | | | |
Kenya | | | 1,307 | | | | — | | | | — | | | | 1,307 | |
Investment Companies | | | | | | | | | | | | | | | | |
Pakistan | | | 346,992 | | | | — | | | | — | | | | 346,992 | |
Romania | | | — | | | | 362,834 | | | | — | | | | 362,834 | |
Vietnam | | | 248,726 | | | | — | | | | — | | | | 248,726 | |
| | | | | | | | | | | | | | | | |
Total Investment Companies | | | 595,718 | | | | 362,834 | | | | — | | | | 958,552 | |
Total Investments | | $ | 2,320,281 | | | $ | 4,170,521 | | | $ | 211,057 | | | $ | 6,701,859 | |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. From the Fund’s commencement of operation on November 5, 2013 through October 31, 2014, there were no transfers between Level 1, Level 2 and Level 3 classifications. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
| | | | | | | | | | | | | | | | | | |
Category and Subcategory | | Beginning
Balance at 11/05/2013 | | Purchases | | Sales | | Realized
Gains | | Realized
Losses | | Change in
Unrealized
Appreciation/ (Depreciation) | | Transfer
into
Level 3 | | Transfer
out of
Level 3 | | Ending
Balance at 10/31/2014 |
Investments, at value | | | | | | | | | | | | | | | | | | |
Common Stocks | | $ — | | $224,258 | | $ — | | $ — | | $ — | | $(13,201) | | $ — | | $ — | | $211,057 |
Total | | $ — | | $224,258 | | $ — | | $ — | | $ — | | $(13,201) | | $ — | | $ — | | $211,057 |
See accompanying notes to the financial statements.
122
ASHMORE EMERGING MARKETS FRONTIER EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
See the table on “Quantitative information about Fair Value measurement” for information on the valuation techniques and inputs used to value Level 3 securities at October 31, 2014.
| | | | | | | | |
Quantitative Information about Level 3 Fair Value Measurements |
| | | Fair Value at
10/31/2014 | | Valuation
Technique | | Unobservable
Input | | Actual |
Common Stocks | | $211,057 | | Discount from last traded price | | Discount Percentage(a) | | 99.6% |
| (a) | Represents a discount of 0.4% to the last publicly traded price reported on applicable market. |
The following is a summary of the fair values of the Fund’s derivative instruments*:
The Effect of Financial Derivative Instruments on the Statements of Operations for the Year Ended October 31, 2014:
| | |
| | | Derivatives Not Accounted
for as Hedging Instruments |
| | | Foreign Exchange |
Realized Gain (Loss) on Derivatives Recognized resulting from
Operations: | | |
Net Realized Loss on Forward Foreign Currency Exchange Contracts | | $(5,548) |
| | |
| * | See note 10 in the Notes to the Financial Statements for additional information. |
At October 31, 2014, for U.S. federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation/(depreciation) on investments in securities (including the effects of foreign currency translation) and the cost basis of investments were as follows:
| | | | |
Federal tax cost of investments | | | $6,674,233 | |
Gross tax appreciation of investments | | | 306,338 | |
Gross tax depreciation of investments | | | (278,712) | |
Net tax appreciation of investments | | | $27,626 | |
The difference between book basis and tax basis net unrealized appreciation or depreciation is attributable primarily to the tax deferral of losses on wash sales.
See accompanying notes to the financial statements.
123
ASHMORE EMERGING MARKETS SHORT DURATION FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Debt Securities | | | | | | | | | | | | | | |
| | | | |
Belarus (Cost $849,842) | | | | | | | | | | | | | | |
Belarus (Rep of) 8.750%, 08/03/2015 | | | | | 830,000 | | | $ | 846,766 | | | | 3.94 | |
| | | | | | | | | 846,766 | | | | 3.94 | |
| | | | |
Brazil (Cost $1,070,201) | | | | | | | | | | | | | | |
JBS Finance II Ltd. 8.250%, 01/29/2018 | | | | | 350,000 | | | | 368,375 | | | | 1.71 | |
Marfrig Holding Europe B.V. 8.375%, 05/09/2018 | | | | | 275,000 | | | | 289,438 | | | | 1.35 | |
Petrobras International Finance Co. 3.500%, 02/06/2017 | | | | | 400,000 | | | | 406,316 | | | | 1.89 | |
| | | | | | | | | 1,064,129 | | | | 4.95 | |
| | | | |
China (Cost $4,132,544) | | | | | | | | | | | | | | |
Agile Property Holdings Ltd. 9.875%, 03/20/2017 | | | | | 350,000 | | | | 341,250 | | | | 1.59 | |
Baidu, Inc. 2.250%, 11/28/2017 | | | | | 425,000 | | | | 427,611 | | | | 1.99 | |
China Hongqiao Group Ltd. 7.625%, 06/26/2017 | | | | | 275,000 | | | | 284,201 | | | | 1.32 | |
China SCE Property Holdings Ltd. 11.500%, 11/14/2017 | | | | | 275,000 | | | | 283,937 | | | | 1.32 | |
CIFI Holdings Group Co. Ltd. 12.250%, 04/15/2018 | | | | | 350,000 | | | | 393,750 | | | | 1.83 | |
CITIC Ltd. 6.875%, 01/21/2018 | | | | | 250,000 | | | | 279,382 | | | | 1.30 | |
Country Garden Holdings Co. Ltd. 11.125%, 02/23/2018 | | | | | 250,000 | | | | 267,187 | | | | 1.25 | |
Evergrande Real Estate Group Ltd. 13.000%, 01/27/2015 | | | | | 210,000 | | | | 211,575 | | | | 0.99 | |
Hyva Global B.V. 8.625%, 03/24/2016 | | | | | 275,000 | | | | 277,750 | | | | 1.29 | |
Kaisa Group Holdings Ltd. 8.875%, 03/19/2018 | | | | | 275,000 | | | | 277,750 | | | | 1.29 | |
KWG Property Holding Ltd. 13.250%, 03/22/2017 | | | | | 325,000 | | | | 358,312 | | | | 1.67 | |
Sunac China Holdings Ltd. 9.375%, 04/05/2018 | | | | | 275,000 | | | | 286,688 | | | | 1.34 | |
Yuzhou Properties Co. Ltd. 11.750%, 10/25/2017 | | | | | 350,000 | | | | 381,938 | | | | 1.78 | |
| | | | | | | | | 4,071,331 | | | | 18.96 | |
| | | | |
Colombia (Cost $318,209) | | | | | | | | | | | | | | |
Grupo Aval Ltd. 5.250%, 02/01/2017 | | | | | 300,000 | | | | 317,100 | | | | 1.48 | |
| | | | | | | | | 317,100 | | | | 1.48 | |
| | | | |
El Salvador (Cost $287,234) | | | | | | | | | | | | | | |
Telemovil Finance Co. Ltd. 8.000%, 10/01/2017 | | | | | 275,000 | | | | 285,312 | | | | 1.33 | |
| | | | | | | | | 285,312 | | | | 1.33 | |
| | | | |
Hong Kong (Cost $317,499) | | | | | | | | | | | | | | |
Wiseyear Holdings Ltd. 5.000%, 02/15/2017 | | | | | 300,000 | | | | 316,907 | | | | 1.48 | |
| | | | | | | | | 316,907 | | | | 1.48 | |
| | | | |
India (Cost $1,138,765) | | | | | | | | | | | | | | |
Bank of Baroda 5.000%, 08/24/2016 | | | | | 400,000 | | | | 419,382 | | | | 1.95 | |
ICICI Bank Ltd. 4.750%, 11/25/2016 | | | | | 310,000 | | | | 325,619 | | | | 1.52 | |
Vedanta Resources PLC 6.750%, 06/07/2016 | | | | | 375,000 | | | | 392,437 | | | | 1.83 | |
| | | | | | | | | 1,137,438 | | | | 5.30 | |
| | | | |
Indonesia (Cost $660,147) | | | | | | | | | | | | | | |
Berau Capital Resources Pte Ltd. 12.500%, 07/08/2015 | | | | | 275,000 | | | | 211,750 | | | | 0.98 | |
Indo Energy Finance B.V. 7.000%, 05/07/2018 | | | | | 375,000 | | | | 358,290 | | | | 1.67 | |
| | | | | | | | | 570,040 | | | | 2.65 | |
| | | | |
Israel (Cost $427,583) | | | | | | | | | | | | | | |
Delek & Avner Tamar Bond Ltd. 2.803%, 12/30/2016 | | | | | 425,000 | | | | 424,824 | | | | 1.98 | |
| | | | | | | | | 424,824 | | | | 1.98 | |
| | | | |
Jamaica (Cost $282,140) | | | | | | | | | | | | | | |
Digicel Ltd. 8.250%, 09/01/2017 | | | | | 275,000 | | | | 281,531 | | | | 1.31 | |
| | | | | | | | | 281,531 | | | | 1.31 | |
| | | | |
Kazakhstan (Cost $1,278,179) | | | | | | | | | | | | | | |
Halyk Savings Bank of Kazakhstan JSC | | | | | 275,000 | | | | 291,830 | | | | 1.36 | |
7.250%, 05/03/2017 | | | | | | | | | | | | | | |
Kazkommertsbank JSC 8.000%, 11/03/2015 | | | | | 400,000 | | | | 400,000 | | | | 1.86 | |
Kazkommertsbank JSC 7.500%, 11/29/2016 | | | | | 200,000 | | | | 198,500 | | | | 0.92 | |
See accompanying notes to the financial statements.
124
ASHMORE EMERGING MARKETS SHORT DURATION FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Kazakhstan - (continued) | | | | | | | | | | | | | | |
Kazkommertsbank JSC 8.500%, 05/11/2018 | | | | | 375,000 | | | $ | 372,731 | | | | 1.74 | |
| | | | | | | | | 1,263,061 | | | | 5.88 | |
| | | | |
Malaysia (Cost $309,401) | | | | | | | | | | | | | | |
Malayan Banking Bhd. 3.000%, 02/10/2017 | | | | | 300,000 | | | | 308,158 | | | | 1.43 | |
| | | | | | | | | 308,158 | | | | 1.43 | |
| | | | |
Mexico (Cost $423,623) | | | | | | | | | | | | | | |
Grupo Televisa S.A.B. 6.000%, 05/15/2018 | | | | | 375,000 | | | | 424,185 | | | | 1.97 | |
| | | | | | | | | 424,185 | | | | 1.97 | |
| | | | |
Nigeria (Cost $379,217) | | | | | | | | | | | | | | |
Access Finance B.V. 7.250%, 07/25/2017 | | | | | 375,000 | | | | 375,075 | | | | 1.75 | |
| | | | | | | | | 375,075 | | | | 1.75 | |
| | | | |
Pakistan (Cost $564,245) | | | | | | | | | | | | | | |
Pakistan (Rep of) 7.125%, 03/31/2016 | | | | | 550,000 | | | | 561,000 | | | | 2.61 | |
| | | | | | | | | 561,000 | | | | 2.61 | |
| | | | |
Russian Federation (Cost $2,674,415) | | | | | | | | | | | | | | |
Alfa Bank OJSC Via Alfa Bond Issuance PLC
7.875%, 09/25/2017 | | | | | 375,000 | | | | 390,750 | | | | 1.82 | |
Bank of Moscow OJSC Via Kuznetski Capital, FRN
5.967%, 11/25/2015 | | | | | 275,000 | | | | 274,893 | | | | 1.28 | |
Credit Bank of Moscow Via CBOM Finance PLC
7.700%, 02/01/2018 | | | | | 375,000 | | | | 363,750 | | | | 1.70 | |
Evraz Group S.A. 9.500%, 04/24/2018 | | | | | 350,000 | | | | 358,312 | | | | 1.67 | |
Metalloinvest Finance Ltd. 6.500%, 07/21/2016 | | | | | 275,000 | | | | 277,062 | | | | 1.29 | |
TMK OAO Via TMK Capital S.A. 7.750%, 01/27/2018 | | | | | 275,000 | | | | 275,344 | | | | 1.28 | |
Vimpel Communications Via VIP Finance Ireland Ltd.
OJSC 9.125%, 04/30/2018 | | | | | 325,000 | | | | 350,594 | | | | 1.63 | |
VimpelCom Holdings B.V. 6.255%, 03/01/2017 | | | | | 275,000 | | | | 277,764 | | | | 1.29 | |
| | | | | | | | | 2,568,469 | | | | 11.96 | |
| | | | |
Saudi Arabia (Cost $612,304) | | | | | | | | | | | | | | |
Dar Al-Arkan International Sukuk Co. II
10.750%, 02/18/2015 | | | | | 275,000 | | | | 277,750 | | | | 1.30 | |
SABIC Capital I B.V. 3.000%, 11/02/2015 | | | | | 325,000 | | | | 331,334 | | | | 1.54 | |
| | | | | | | | | 609,084 | | | | 2.84 | |
| | | | |
Turkey (Cost $1,005,859) | | | | | | | | | | | | | | |
Akbank T.A.S. 6.500%, 03/09/2018 | | | | | 375,000 | | | | 407,438 | | | | 1.90 | |
Yapi ve Kredi Bankasi A.S. 6.750%, 02/08/2017 | | | | | 300,000 | | | | 321,120 | | | | 1.49 | |
Yapi ve Kredi Bankasi Via Unicredit Luxembourg S.A.
5.188%, 10/13/2015 | | | | | 275,000 | | | | 281,077 | | | | 1.31 | |
| | | | | | | | | 1,009,635 | | | | 4.70 | |
| | | | |
Ukraine (Cost $560,566) | | | | | | | | | | | | | | |
MHP S.A. 10.250%, 04/29/2015 | | | | | 550,000 | | | | 544,500 | | | | 2.54 | |
| | | | | | | | | 544,500 | | | | 2.54 | |
| | | | |
United Arab Emirates (Cost $984,236) | | | | | | | | | | | | | | |
Abu Dhabi National Energy Co. 4.125%, 03/13/2017 | | | | | 300,000 | | | | 318,000 | | | | 1.48 | |
Dubai Holding Commercial Operations MTN Ltd.
6.000%, 02/01/2017 | | GBP | | | 200,000 | | | | 326,915 | | | | 1.52 | |
Emirates NBD PJSC 4.625%, 03/28/2017 | | | | | 300,000 | | | | 317,250 | | | | 1.48 | |
| | | | | | | | | 962,165 | | | | 4.48 | |
| | | | |
Venezuela (Cost $1,915,165) | | | | | | | | | | | | | | |
Petroleos de Venezuela S.A. 5.000%, 10/28/2015 | | | | | 1,340,000 | | | | 1,185,900 | | | | 5.52 | |
See accompanying notes to the financial statements.
125
ASHMORE EMERGING MARKETS SHORT DURATION FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Venezuela - (continued) | | | | | | | | | | | | | | |
Venezuela (Rep of) 7.000%, 03/16/2015 | | EUR | | | 597,000 | | | $ | 714,465 | | | | 3.33 | |
| | | | | | | | | 1,900,365 | | | | 8.85 | |
Total Debt Securities (Cost $20,191,374) | | | | | | | | | 19,841,075 | | | | 92.39 | |
| | | | |
Total Investments (Total Cost $20,191,374) | | | | | | | | | 19,841,075 | | | | 92.39 | |
| | | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for further detail) | | | | | | | | | 1,634,331 | | | | 7.61 | |
| | | | |
Net Assets | | | | | | | | $ | 21,475,406 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
Percentages shown are based on net assets.
At October 31, 2014, the Ashmore Emerging Markets Short Duration Fund had outstanding forward foreign currency exchange contracts as follows:
| | | | | | | | | | | | |
Settlement Date | | Counterparty | | Currency Buy | | Currency
Buy
Amount
(Local
Currency) | | Currency
Sell | | Currency
Sell
Amount
(Local
Currency) | | Unrealized Gain/(Loss) |
11/14/2014 | | HSBC Bank PLC | | United States Dollar | | 341,984 | | British Pound | | 212,799 | | $1,609 |
11/14/2014 | | HSBC Bank PLC | | United States Dollar | | 584,455 | | Euro | | 463,267 | | 3,860 |
11/14/2014 | | Merrill Lynch International | | United States Dollar | | 164,646 | | Euro | | 129,760 | | 2,021 |
| | | | | | | | | | | | |
Total | | | | | | | | | | | | $7,490 |
| | | | | | | | | | | | |
See accompanying notes to the financial statements.
126
ASHMORE EMERGING MARKETS SHORT DURATION FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities and other financial instruments, if any. See note 4 in the Notes to the Financial Statements for more information regarding pricing inputs and valuation techniques. The following is a summary of the inputs used in valuing the Ashmore Emerging Markets Short Duration Fund’s investments and other financial instruments, which are carried at fair value, as of October 31, 2014:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Corporate Bonds | | | $ — | | | | $17,718,844 | | | | $ — | | | | $17,718,844 | |
Government Bonds | | | — | | | | 2,122,231 | | | | — | | | | 2,122,231 | |
Total Investments | | | $ — | | | | $19,841,075 | | | | $ — | | | | $19,841,075 | |
| | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | $ — | | | | $ 7,490 | | | | $ — | | | | $ 7,490 | |
Total Other Financial Instruments | | | $ — | | �� | | $ 7,490 | | | | $ — | | | | $ 7,490 | |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. From the Fund’s commencement of operation on June 24, 2014 through October 31, 2014, there were no transfers between Level 1, Level 2 and Level 3 classifications. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.
The following is a summary of the fair values of the Fund’s derivative instruments*:
Fair Values of Financial Derivative Instruments on the Statements of Assets and Liabilities as of October 31, 2014:
| | |
| | | Derivatives Not Accounted
for as Hedging Instruments |
| | | Foreign Exchange |
Assets: | | |
Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | $7,490 |
| | |
The Effect of Financial Derivative Instruments on the Statements of Operations for the Year Ended October 31, 2014:
| | |
| | | Derivatives Not Accounted for as
Hedging Instruments |
| | | Foreign Exchange |
Realized Gain (Loss) on Derivatives Recognized resulting from Operations: | | |
Net Realized Gain on Forward Foreign Currency Exchange Contracts | | $ 18,337 |
| | |
| |
Net Change in Unrealized Appreciation (Depreciation) on
Derivatives Recognized resulting from Operations: | | |
Net Change in Unrealized Appreciation on Forward Foreign
Currency Exchange Contracts | | $ 7,490 |
| | |
* See note 10 in the Notes to the Financial Statements for additional information.
See accompanying notes to the financial statements.
127
ASHMORE EMERGING MARKETS SHORT DURATION FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2014
At October 31, 2014, for U.S. federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation/(depreciation) on investments in securities (including the effects of foreign currency translation) and the cost basis of investments were as follows:
| | | | |
Federal tax cost of investments | | | $20,191,374 | |
Gross tax appreciation of investments | | | 24,500 | |
Gross tax depreciation of investments | | | (374,799) | |
Net tax depreciation of investments | | | $(350,299) | |
The difference between book basis and tax basis net unrealized appreciation or depreciation is attributable primarily to the tax deferral of losses on wash sales.
See accompanying notes to the financial statements.
128
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS
As of October 31, 2014
1. Organization
Ashmore Funds (the “Trust”) is a Massachusetts business trust organized under the laws of the Commonwealth of Massachusetts on August 6, 2010 (inception date) and is registered under the Investment Company Act of 1940, as amended (the “Investment Company Act” or “1940 Act”), as an open-end investment management company. The Trust follows accounting and reporting guidance under Financial Accounting Standards Codification Topic 946, “Financial Services – Investment Companies”. The Trust includes nine funds as of October 31, 2014, each with its own investment objective. The Ashmore Emerging Markets Corporate Debt Fund, Ashmore Emerging Markets Local Currency Bond Fund, Ashmore Emerging Markets Currency Fund, Ashmore Emerging Markets Debt Fund, Ashmore Emerging Markets Total Return Fund, Ashmore Emerging Markets Short Duration Fund, Ashmore Emerging Markets Equity Fund, Ashmore Emerging Markets Small-Cap Equity Fund and Ashmore Emerging Markets Frontier Equity Fund (each a “Fund” and collectively, the “Funds”) are separate investment funds of the Trust. Effective February 28, 2014, the Ashmore Emerging Markets Sovereign Debt Fund changed its name to Ashmore Emerging Markets Debt Fund. Each of the Funds, except Ashmore Emerging Markets Equity Fund, Ashmore Emerging Markets Small-Cap Equity Fund and Ashmore Emerging Markets Frontier Equity Fund, are non-diversified. Non-diversified funds may invest a relatively large portion of their net assets in a single issuer or a small number of issuers. Each of the Funds is presented herein.
On November 5, 2013, the Trust launched the Emerging Markets Frontier Equity Fund Institutional Class shares and on May 7, 2014, the Trust launched the Emerging Markets Frontier Equity Fund Class A and C shares. On June 24, 2014, the Trust launched the Emerging Markets Short Duration Fund Institutional Class shares, and on September 23, 2014, the Trust launched the Emerging Markets Short Duration Fund Class A shares.
Ashmore Investment Advisors Limited (“AIAL”) was authorized as an Alternative Investment Fund Manager (“AIFM”) by the Financial Conduct Authority (“FCA”) on July 18, 2014. Effective July 18, 2014, AIAL assumed the role of investment manager to the Funds from Ashmore Investment Management Limited (“AIML”), pursuant to a Novation of the Investment Management Agreement. Prior to July 18, 2014, AIML served as investment manager to the Funds. The investment advisory services provided to the Funds were novated to AIAL as part of regulatory change and ongoing regulatory compliance in the United Kingdom. AIAL and AIML are both wholly-owned subsidiaries of Ashmore Investments (UK) Limited, which is a wholly-owned subsidiary of the Ashmore Group plc (“Ashmore Group”). The novation of the investment advisory agreement with the Funds did not result in any change in: (i) the manner in which investment advisory services are provided (including the manner in which the Funds are managed or operated) as contemplated by the Investment Management Agreement; (ii) the personnel who are responsible for providing or supervising the provision of investment advisory services (including those responsible for the management, portfolio management and operations of the Funds); or (iii) the personnel ultimately responsible for overseeing such provision of services. The Investment Manager has retained Ashmore Equities Investment Management (US) LLC (“AEIM” or the “Subadviser”) to manage the investment portfolios of Ashmore Emerging Markets Equity Fund, Ashmore Emerging Markets Small-Cap Equity Fund and Ashmore Emerging Markets Frontier Equity Fund. The Subadviser is responsible for managing the investment of the assets of Ashmore Emerging Markets Equity Fund, Ashmore Emerging Markets Small-Cap Equity Fund and Ashmore Emerging Markets Frontier Equity Fund, subject to the general oversight and supervision of the Investment Manager and the Board of Trustees of the Trust (the “Board”). Ashmore Investment Management (US) Corporation (“AIMUS”) is the principal underwriter of shares of the Funds. AIMUS is an affiliate of the Investment Manager. The Northern Trust Company (“Northern Trust”) serves as the administrator, custodian and transfer agent of the Funds.
The Directors have assessed the impact of the AIFMD on the financial statements of the Trust and have concluded that the Trust is exempt from following Chapter V. Section 1. Articles 103-111 of the European Commission’s Level 2 Delegated Regulation on the basis of the operations of the Trust being (i) a Non-EEA AIF, and (ii) not being marketed in the European Union, as defined by the Directive.
129
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
2. Significant accounting policies
The significant accounting policies adopted and consistently followed in the preparation of the Funds’ financial statements are set out below:
(a) Basis of preparation
The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
(b) Use of estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues generated and expenses incurred during the reporting period. Actual results could differ from these estimates. These financial statements contain all adjustments which are, in the opinion of management of the Trust, necessary to portray a fair statement of the period presented. Such adjustments are normal and recurring in nature. Valuation models used to determine the fair value of unlisted derivative instruments require the use of a number of market based assumptions.
(c) Determination of the Net Asset Value
The net asset value (“NAV”) of a Fund’s shares is calculated at the close of regular trading (normally 4:00 p.m. Eastern time) (the “NYSE Close”) on each day that the New York Stock Exchange (“NYSE”) is open for regular trading.
(d) Investment valuation
For the purposes of calculating NAV, portfolio securities and other assets for which market quotations are readily available are valued at market value. Market values for securities and other instruments are generally determined on the basis of closing prices or the last reported sales prices on an exchange or other market, or if no sales are reported, based on quotes or other market information obtained from a quotation reporting system, established market makers, or pricing services. Domestic and foreign debt securities where 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 services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from independent pricing services are based on 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. Short-term investments having a maturity of 60 days or less and sufficient credit quality are generally valued at amortized cost. Exchange traded options, futures and options on futures are valued at the settlement price determined by the relevant exchange. With respect to any portion of a Fund’s assets that are invested in one or more open-ended investment management companies, a Fund’s NAV will be calculated based upon the NAVs of such investments. The prospectuses for these open-end investment management companies explain the circumstances under which those companies will use fair value pricing and the effects of using fair value pricing.
If the Investment Manager 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 NYSE Close, the security will be valued at fair value based on procedures approved by the Board. A Fund may determine the fair value of investments 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, amongst 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 Investment Manager may, amongst 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 NYSE Close. A Fund may utilize modeling tools provided by third-party vendors to determine the fair values of non-U.S. securities. Foreign
130
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
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 investors are unable to buy, sell or exchange shares of the Fund.
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. Securities and other assets for which market quotations are not readily available are valued at fair value as determined in good faith by the Board or persons acting at their direction. The Board has adopted methods and guidelines for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated to the Investment Manager and the Subadviser, as applicable, the responsibility for applying the valuation methods.
In the event that market quotes are not readily available, and the security or asset cannot be valued pursuant to one of the Board’s approved valuation methods, the fair value of the security or asset will be determined in good faith by the Board, generally based upon recommendations provided by the Investment Manager and the Subadviser, as applicable. Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information, bid/asked information, broker quotes), including where events occur after the close of the relevant market, but prior to a Fund’s NAV calculation time, that materially affect the values of a Fund’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available. A Fund may also determine that market quotations are not readily available due to events relating to a single issuer (e.g., corporate actions or announcements) or events relating to multiple issuers (e.g., governmental actions or natural disasters). The Board has delegated to the Investment Manager and the Subadviser, as applicable, the responsibility for monitoring significant events that may materially affect the values of a Fund’s securities or assets and for determining whether the value of the applicable securities or assets should be re-evaluated in light of such significant events.
The Investment Manager and the Sub-Adviser, as applicable, 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 the investment. The Investment Manager and the Sub-Adviser, as applicable, 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.
When a Fund uses fair value pricing to determine the NAV of its shares, securities will not be priced on the basis of quotes from the primary market in which they are traded, but rather may be priced by another method that the Board or persons acting at its direction believe accurately reflects fair value. Fair value pricing may require subjective determinations about the value of a security or asset. While the Funds’ policies 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 determined by the Board or persons acting at their direction accurately reflects the price that a Fund could obtain for a security or asset if it were to dispose of that security or asset at the time of pricing (for instance, in a forced or distressed sale). The prices used by a Fund may differ from the
131
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
value that would be realized if the securities were sold. Also, the use of fair value pricing may not always result in adjustments to the prices of securities or other assets held by the Fund for the purpose of calculating the NAV of the Fund’s shares.
(e) Investment transactions, income and expenses
Investment transactions are recorded at the trade date. The Funds determine the gain or loss realized from investment transactions using an identified cost basis method. Interest income is recognized on an accrual basis and includes the amortization of premiums and the accretion of discounts using the effective yield method.
Dividend income is recognized on the ex-dividend date. Dividends from foreign securities are recorded on the ex-dividend date, or as soon as such information is available and known to Funds’ management.
Expenses are recorded on an accrual basis. Each Fund is charged for those expenses that are directly attributable to that Fund. Certain expenses arising in connection with a class of shares are charged to that class of shares. Expenses incurred which do not specifically relate to an individual Fund are allocated amongst all the Funds in the Trust in proportion to each Fund’s relative net assets.
(f) Fully funded total return swaps
Each Fund is subject to market risk in the normal course of pursuing its investment objectives. Certain Funds enter into fully funded total return swaps (“TRS”) to manage their exposure to the market, certain sectors of the market or a particular security or reference asset, or to create exposure to certain investments to which they would otherwise not be exposed. TRS contracts involve the exchange by a Fund and a counterparty of their respective commitments to pay or receive a net amount based, in part, on the change in the value of a notional amount of a particular security, index or reference asset.
Where a Fund enters into a TRS transaction with a swap counterparty, pursuant to which the Fund makes an initial payment equal to the estimated value of an emerging market debt or equity security, loan or other financial instrument, the TRS is considered an investment for financial statement purposes and is accounted for using the same policies as would apply to the underlying assets it represents. Aside from the market risk of the underlying security, index or reference asset, there is a risk of default by the counterparty to the transaction.
(g) Equity-Linked Securities
Certain Funds may purchase equity-linked securities, also known as participation notes. Equity-linked securities are primarily used by the Funds as an alternate means to access what is generally an emerging securities market. A Fund deposits cash with its custodian (or broker) in an amount near or equal to the value of the underlying security in exchange for an equity linked security. Upon sale, the Fund receives cash from the broker or custodian, equal to the value of the underlying security. Aside from the market risk and credit risk of the underlying securities, there is a risk of default by the counterparty to the transaction. In the event of insolvency of the counterparty, a Fund might be unable to obtain its expected benefit. In addition, while the Funds will seek to enter into such transactions only with parties that are capable of entering into closing transactions with a Fund, there can be no assurance that a Fund will be able to close out such a transaction with the counterparty or obtain an offsetting position with any counterparty at a time prior to the end of the term of the underlying agreement.
(h) Inflation Index Securities
Certain Funds may invest in inflation-indexed bonds which are fixed income securities whose principal value is periodically adjusted based on a measure of rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond interest will be paid based on a principal value which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statements of Operations, even though investors do not receive their principal until maturity. At October 31, 2014, all inflation-indexed bonds were shown on the Statement of Investments with their original par and stated coupon rate.
132
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
3. Principal Risks
In the normal course of business, the Funds trade financial instruments and enter into financial transactions where a risk of potential loss exists due to, amongst other things, changes in the market (market risk), or the failure or inability of the other party to a transaction to perform (credit and counterparty risk). See below for a summary description of select principal risks, some of which may not apply to a particular Fund. A discussion of the principal risks of investing in each Fund is included in that Fund’s prospectus.
Counterparty and Third Party Risk
Transactions involving a counterparty to a derivative or other instrument, or 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 Funds could lose money if the issuer or guarantor of a debt security or other instrument 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.
Market Risk
The value of securities and instruments owned by the Funds may rise and fall, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries or geographic areas. 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.
Other Risks
Investments in foreign securities entail significant risks in addition to those customarily associated with investing in U.S. securities. These risks are heightened with respect to investments in emerging-market countries where there is an even greater amount of economic, political and social instability. Economic, political and social instability could disrupt financial markets in which the Fund invests and adversely affect the value of the Fund’s assets. In addition, national policies may restrict investment opportunities. In foreign markets there may be a lower degree of market volume and liquidity than in U.S. markets, and this may result in greater price volatility. The securities markets in many emerging-market countries are substantially smaller, less developed, less liquid and more volatile than the securities markets of developed countries. Furthermore, since the composition of each Fund will differ from that of market indexes, its performance generally will not mirror the returns provided by a specific market index.
4. Fair value measurements
U.S. GAAP includes a topic which defines fair value as the price that the Fund would receive upon selling an investment in an orderly and timely transaction to a market participant in the principal or most advantageous market of the investment. This topic establishes a three-tier hierarchy to maximize the use of observable market data, minimize the use of unobservable inputs and establish classification of fair value measurements for disclosure purposes. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability including assumptions about risk. Such risks include the inherent risk in a particular valuation technique which is used to measure fair value. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
133
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
| | • | | Level 1 – Inputs using unadjusted quoted prices in active markets or exchanges for identical assets and liabilities. |
| | • | | Level 2 – Significant observable inputs other than those used in Level 1, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment rates, loss severities, credit risks and default rates) or other market corroborated inputs. |
| | • | | Level 3 – Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their discretion that are used in determining the fair market value of investments. |
Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agency securities, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities and non-U.S. bonds 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.
Portfolio securities and other assets for which market quotations are readily available are valued at market value. Market values for securities and other instruments are generally determined on the basis of closing prices or the last reported sales prices on an exchange or other market, or if no sales are reported, based on quotes or other market information obtained from a quotation reporting system, established market makers, or pricing services. To the extent these securities are actively traded and valuation adjustments are not applied, they are typically categorized as Level 1 of the fair value hierarchy. Domestic and foreign debt securities where 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 services using data reflecting the earlier closing of the principal markets for those securities. Prices obtained from independent pricing services are based on information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Securities using these valuation adjustments are typically categorized as Level 2 of the fair value hierarchy. Preferred securities, equity linked notes and other equities traded on inactive markets or valued by reference to similar instruments are also typically categorized as Level 2 of the fair value hierarchy.
With respect to any portion of a Fund’s assets that are invested in one or more open-ended investment management companies, a Fund’s NAV will be calculated based upon the NAVs of such investments. The prospectuses for these open-end investment management companies explain the circumstances under which those companies will use fair value pricing and the effects of using fair value pricing. Investments in privately held investment funds will be valued based upon the NAVs of such investments and are categorized as Level 2 of the fair value hierarchy.
Short-term investments having a maturity of 60 days or less and sufficient credit quality are generally valued at amortized cost which approximates fair market value. These investments are categorized as Level 2 of the fair value hierarchy.
Investments and derivatives classified within Level 3 have significant unobservable inputs, as they trade infrequently or not at all. Level 3 instruments may include private equity and real estate investments, certain loan agreements, less-liquid corporate debt securities (including distressed debt instruments) and certain collateralized debt obligations. Also included in this category are options, government and sovereign obligations, government agency securities and corporate bonds for which independent broker prices are used and information relating to the inputs of the price models is currently unavailable.
134
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
5. Reverse repurchase agreements
Certain Funds may enter into reverse repurchase agreements. In a reverse repurchase agreement, a Fund delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. A Fund is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be made by a Fund to counterparties are reflected as a liability on the Statements of Assets and Liabilities. Interest payments made by a Fund to counterparties are recorded as a component of interest expense on the Statements of Operations. In periods of increased demand for the security, a Fund may receive a fee for use of the security by the counterparty, which may result in interest income to the Fund.
The following is a summary by counterparty of the market value of reverse repurchase agreements and collateral pledged as of October 31, 2014:
Ashmore Emerging Markets Debt Fund
| | | | | | | | |
| Counterparty | | Payable for
Reverse
Repurchase
Agreements | | | Collateral
Pledged | |
Barclays | | $ | 358,135 | | | | (405,250 | ) |
ING | | | 167,946 | | | | (195,500 | ) |
J.P.Morgan | | | 91,322 | | | | (100,120 | ) |
Total | | $ | 617,403 | | | | (700,870 | ) |
Securities with an aggregate market value of $700,870 have been pledged as collateral in respect of reverse repurchase agreements as of October 31, 2014. The actual collateral exceeds the market values of the reverse repurchase agreements.
The average amount of reverse repurchase agreements outstanding during the year ended October 31, 2014 was $77,836 at a weighted average interest rate of 0.33%.
Ashmore Emerging Markets Total Return Fund
| | | | | | | | |
| Counterparty | | Payable for
Reverse
Repurchase
Agreements | | | Collateral
Pledged | |
J.P. Morgan | | $ | 2,280,668 | | | | (3,276,690 | ) |
Total | | $ | 2,280,668 | | | | (3,276,690 | ) |
Securities with an aggregate market value of $3,276,690 have been pledged as collateral in respect of reverse repurchase agreements as of October 31, 2014. The actual collateral exceeds the market values of the reverse repurchase agreements.
The average amount of reverse repurchase agreements outstanding during the year ended October 31, 2014 was $1,052,271 at a weighted average interest rate of 0.50%.
135
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
6. Capital share transactions
Transactions in Class A shares for the year ended October 31, 2014, were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Shares Sold | | | Proceeds from
Shares Sold | | | Shares from Reinvested
Distributions | | | Proceeds from
Reinvestment
of Distributions | | | Shares
Redeemed | | | Payments for
Shares
Redeemed | | | Net Increase/
(Decrease) in
Shares | | | Net Increase/ (Decrease) in Net Assets | |
Ashmore Emerging Markets Corporate Debt Fund | | | 663,134 | | | $ | 6,076,699 | | | | 19,252 | | | $ | 177,068 | | | | (800,259 | ) | | $ | (7,445,259 | ) | | | (117,873 | ) | | $ | (1,191,492 | ) |
Ashmore Emerging Markets Local Currency Bond Fund | | | 18,888 | | | | 159,890 | | | | 2,392 | | | | 20,669 | | | | (144,497 | ) | | | (1,263,158 | ) | | | (123,217 | ) | | | (1,082,599 | ) |
Ashmore Emerging Markets Currency Fund | | | - | | | | - | | | | 8 | | | | 64 | | | | - | | | | (1 | ) | | | 8 | | | | 63 | |
Ashmore Emerging Markets Debt Fund | | | 4,111 | | | | 36,492 | | | | 86 | | | | 741 | | | | (17 | ) | | | (170 | ) | | | 4,180 | | | | 37,063 | |
Ashmore Emerging Markets Total Return Fund | | | 993,918 | | | | 8,960,573 | | | | 45,502 | | | | 407,426 | | | | (1,196,954 | ) | | | (10,853,742 | ) | | | (157,534 | ) | | | (1,485,743 | ) |
Ashmore Emerging Markets Equity Fund | | | 658 | | | | 6,024 | | | | 15 | | | | 142 | | | | (406 | ) | | | (3,837 | ) | | | 267 | | | | 2,329 | |
Ashmore Emerging Markets Small-Cap Equity Fund | | | 47,324 | | | | 449,918 | | | | 2,306 | | | | 21,899 | | | | (39,077 | ) | | | (390,514 | ) | | | 10,553 | | | | 81,303 | |
Ashmore Emerging Markets Frontier Equity Fund | | | 1,147 | | | | 11,500 | | | | 5 | | | | 46 | | | | (247 | ) | | | (2,495 | ) | | | 905 | | | | 9,051 | |
Ashmore Emerging Markets Short Duration Fund | | | 20,000 | | | | 200,000 | | | | 100 | | | | 994 | | | | - | | | | - | | | | 20,100 | | | | 200,994 | |
136
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
Transactions in Class C shares for the year ended October 31, 2014, were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Shares Sold | | | Proceeds from
Shares Sold | | | Shares from Reinvested
Distributions | | | Proceeds from
Reinvestment
of
Distributions | | | Shares
Redeemed | | | Payments for
Shares
Redeemed | | | Net Increase/
(Decrease) in
Shares | | | Net Increase/
(Decrease) in
Net Assets | |
Ashmore Emerging Markets Corporate Debt Fund | | | 29,672 | | | $ | 269,463 | | | | 1,238 | | | $ | 11,342 | | | | - | | | $ | - | | | | 30,910 | | | $ | 280,805 | |
Ashmore Emerging Markets Local Currency Bond Fund | | | 6,964 | | | | 60,150 | | | | 267 | | | | 2,306 | | | | (3,422 | ) | | | (29,149 | ) | | | 3,809 | | | | 33,307 | |
Ashmore Emerging Markets Currency Fund | | | - | | | | - | | | | 8 | | | | 60 | | | | - | | | | (2 | ) | | | 8 | | | | 58 | |
Ashmore Emerging Markets Debt Fund | | | - | | | | 1 | | | | 27 | | | | 233 | | | | - | | | | (2 | ) | | | 27 | | | | 232 | |
Ashmore Emerging Markets Total Return Fund | | | 57,819 | | | | 510,539 | | | | 3,562 | | | | 31,877 | | | | (48,088 | ) | | | (426,605 | ) | | | 13,293 | | | | 115,811 | |
Ashmore Emerging Markets Equity Fund | | | - | | | | 1 | | | | 1 | | | | 8 | | | | - | | | | (1 | ) | | | 1 | | | | 8 | |
Ashmore Emerging Markets Small-Cap Equity Fund | | | 6,602 | | | | 67,868 | | | | 91 | | | | 932 | | | | - | | | | (105 | ) | | | 6,693 | | | | 68,695 | |
Ashmore Emerging Markets Frontier Equity Fund | | | 11,757 | | | | 123,328 | | | | 1 | | | | 5 | | | | (11,657 | ) | | | (118,784 | ) | | | 101 | | | | 4,549 | |
137
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
Transactions in Institutional Class shares for the year ended October 31, 2014, were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Shares Sold | | | Proceeds from
Shares Sold | | | Shares from Reinvested
Distributions | | | Proceeds
from
Reinvestment
of Distributions | | | Shares
Redeemed | | | Payments for
Shares Redeemed | | | Net
Increase/
(Decrease)
in Shares | | | Net Increase/
(Decrease) in
Net Assets | |
Ashmore Emerging Markets Corporate Debt Fund | | | 29,442,898 | | | $ | 280,666,305 | | | | 99,748 | | | $ | 949,339 | | | | (9,408,818 | ) | | $ | (89,456,635 | ) | | | 20,133,828 | | | $ | 192,159,009 | |
Ashmore Emerging Markets Local Currency Bond Fund | | | 4,080,785 | | | | 37,392,726 | | | | 306,435 | | | | 2,741,356 | | | | (1,512,295 | ) | | | (13,519,080 | ) | | | 2,874,925 | | | | 26,615,002 | |
Ashmore Emerging Markets Currency Fund | | | 389,770 | | | | 3,500,135 | | | | 80,593 | | | | 680,755 | | | | (3,191,569 | ) | | | (28,661,899 | ) | | | (2,721,206 | ) | | | (24,481,009 | ) |
Ashmore Emerging Markets Debt Fund | | | 505,576 | | | | 5,000,160 | | | | 136,326 | | | | 1,170,491 | | | | (2,875,918 | ) | | | (28,442,816 | ) | | | (2,234,016 | ) | | | (22,272,165 | ) |
Ashmore Emerging Markets Total Return Fund | | | 48,568,083 | | | | 444,019,535 | | | | 5,316,833 | | | | 48,309,554 | | | | (13,702,593 | ) | | | (123,243,895 | ) | | | 40,182,323 | | | | 369,085,194 | |
Ashmore Emerging Markets Equity Fund | | | 94,871 | | | | 899,455 | | | | 7,023 | | | | 64,269 | | | | (2,150 | ) | | | (19,789 | ) | | | 99,744 | | | | 943,935 | |
Ashmore Emerging Markets Small-Cap Equity Fund | | | 2,581,273 | | | | 31,073,425 | | | | 159,279 | | | | 1,876,242 | | | | (880,227 | ) | | | (10,655,459 | ) | | | 1,860,325 | | | | 22,294,208 | |
Ashmore Emerging Markets Frontier Equity Fund | | | 636,896 | | | | 6,363,323 | | | | 5,771 | | | | 61,102 | | | | (1,130 | ) | | | (12,747 | ) | | | 641,537 | | | | 6,411,678 | |
Ashmore Emerging Markets Short Duration Fund | | | 2,154,134 | | | | 21,500,000 | | | | 13,789 | | | | 135,828 | | | | - | | | | - | | | | 2,167,923 | | | | 21,635,828 | |
Capital shares
Class A or Class C shares are issued at the Fund’s relevant NAV per share plus, for Class A shares, any applicable sales charge. Institutional Class shares are issued at the Fund’s relevant NAV per share without a sales charge. Shares confer upon the holders the right to receive notice of and attend, speak and vote at general meetings of the Funds. The shares confer upon the holders the right to any or all dividends or distributions which the Trustees in their sole discretion may from time to time resolve to make or declare.
138
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
7. Investment transactions
For the year ended October 31, 2014, the aggregate costs of purchases and proceeds from sales of investments (including fully funded TRS and excluding short-term investments) for the Funds were as follows:
| | | | | | | | |
| Fund | | Purchases | | | Sales | |
Ashmore Emerging Markets Corporate Debt Fund | | $ | 389,923,158 | | | $ | 211,096,894 | |
Ashmore Emerging Markets Local Currency Bond Fund | | | 77,449,554 | | | | 71,280,242 | |
Ashmore Emerging Markets Currency Fund | | | 6,346,284 | | | | 11,429,788 | |
Ashmore Emerging Markets Debt Fund | | | 8,281,296 | | | | 28,937,108 | |
Ashmore Emerging Markets Total Return Fund | | | 879,540,720 | | | | 537,007,883 | |
Ashmore Emerging Markets Equity Fund | | | 13,465,071 | | | | 12,746,778 | |
Ashmore Emerging Markets Small-Cap Equity Fund | | | 59,289,947 | | | | 38,943,438 | |
Ashmore Emerging Markets Frontier Equity Fund | | | 15,680,978 | | | | 9,884,943 | |
Ashmore Emerging Markets Short Duration Fund | | | 23,690,021 | | | | 3,397,644 | |
8. Federal income taxes
No provision for U.S. federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.
For financial reporting purposes the Funds may periodically make reclassifications among components of capital accounts to reflect permanent differences between U.S. GAAP and taxable income. The reclassifications have no impact on the net assets of the Funds. During the year, revisions were also made to previously determined taxable income amounts. As a result, the following reclassifications were made to the Statements of Assets and Liabilities:
| | | | | | | | | | | | | | | | |
| Fund | | Paid in
Capital | | | Undistributed
Net
Investment
Income | | | Accumulated
Net Realized
Gain/Loss | | | Net
Unrealized Appreciation/ Depreciation | |
Ashmore Emerging Markets Corporate Debt Fund | | $ | - | | | $ | 1,031,188 | | | $ | (1,031,188 | ) | | $ | - | |
Ashmore Emerging Markets Local Currency Bond Fund | | | (149,424 | ) | | | (3,992,363 | ) | | | 4,141,787 | | | | - | |
Ashmore Emerging Markets Currency Fund | | | (1,106,938 | ) | | | (498,098 | ) | | | 1,605,036 | | | | - | |
Ashmore Emerging Markets Debt Fund | | | (206 | ) | | | 6,001 | | | | (5,795 | ) | | | - | |
Ashmore Emerging Markets Total Return Fund | | | (45,545 | ) | | | (12,946,536 | ) | | | 12,992,081 | | | | - | |
Ashmore Emerging Markets Equity Fund | | | - | | | | 17,979 | | | | (17,979 | ) | | | - | |
Ashmore Emerging Markets Small-Cap Equity Fund | | | - | | | | 25,040 | | | | (25,040 | ) | | | - | |
Ashmore Emerging Markets Frontier Equity Fund | | | - | | | | (28,714 | ) | | | 28,714 | | | | - | |
Ashmore Emerging Markets Short Duration Fund | | | - | | | | 19,452 | | | | (19,452 | ) | | | - | |
139
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
At October 31, 2014, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration were as follows:
| | | | |
Fund | | October 31, 2019 | |
Ashmore Emerging Markets Currency Fund | | $ | (4,413) | |
The Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted on December 22, 2010. The Act makes changes to several tax rules affecting the Funds. In general, the provisions of the Act are effective for the Funds’ fiscal year ending October 31, 2014. Although the Act provides several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all, or a portion of a Fund’s pre-enactment capital loss carryovers may expire without being utilized, due to the fact that post-enactment capital losses are utilized before pre-enactment capital loss carryovers.
The following Funds have available capital loss carryforwards for which there is no expiration date:
| | | | | | | | |
| Fund | | Short-Term Capital Loss Carryforward at October 31, 2014 | | | Long-Term Capital Loss Carryforward at October 31, 2014 | |
Ashmore Emerging Markets Local Currency Bond Fund | | $ | (1,248,900 | ) | | $ | (607,437 | ) |
Ashmore Emerging Markets Currency Fund | | | (159,188 | ) | | | (68,793 | ) |
Ashmore Emerging Markets Debt Fund | | | (812,655 | ) | | | - | |
Ashmore Emerging Markets Total Return Fund | | | (4,200,627 | ) | | | (6,756,306 | ) |
Ashmore Emerging Markets Equity Fund | | | (787,942 | ) | | | (296,757 | ) |
Ashmore Emerging Markets Short Duration Fund | | | (36,187 | ) | | | - | |
The Funds in the above two tables may offset future capital gains with these capital loss carryforwards.
The Funds are subject to the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740-10, Income Taxes. This standard provides guidance as to how uncertain tax positions should be recognized, measured, presented and disclosed in the Funds’ financial statements. The Funds recognize the tax benefits of uncertain tax positions only where the position is more-likely-than-not (i.e. greater than 50-percent) to be sustained assuming examination by a tax authority based on the technical merits of the position. In evaluating whether a tax position has met the recognition threshold, the Funds must presume that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the Funds’ financial statements. Income tax and related interest and penalties would be recognized by the Funds as tax expense in the Statement of Operations if the tax positions were deemed not to meet the more-likely-than-not threshold. The Funds analyze all open tax years for all major taxing jurisdictions. Open tax years are those that are open to examination by taxing authorities, as defined by the Statute of Limitations in each jurisdiction. The Funds have no examinations by tax authorities in progress. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Further, Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
140
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
As of October 31, 2014, the components of distributable taxable earnings, including temporary differences, were as follows:
| | | | | | | | | | | | | | | | | | | | |
| Fund | | Undistributed
Ordinary
Income | | | Undistributed
Long Term
Capital Gain | | | Accumulated
Capital Losses
and Other | | | Unrealized
Appreciation
(Depreciation) on
Investments and
Foreign Currencies | | | Total
Accumulated
Earnings (Deficit) | |
Ashmore Emerging Markets Corporate Debt Fund | | $ | 3,489,757 | | | $ | - | | | $ | (290,768 | ) | | $ | (17,023,418 | ) | | $ | (13,824,429 | ) |
Ashmore Emerging Markets Local Currency Bond Fund | | | - | | | | - | | | | (1,928,289 | ) | | | (5,992,280 | ) | | | (7,920,569 | ) |
Ashmore Emerging Markets Currency Fund | | | - | | | | - | | | | (253,296 | ) | | | (79,635 | ) | | | (332,931 | ) |
Ashmore Emerging Markets
Debt Fund | | | - | | | | - | | | | (824,246 | ) | | | (66,682 | ) | | | (890,928 | ) |
Ashmore Emerging Markets
Total Return Fund | | | - | | | | - | | | | (11,438,883 | ) | | | (49,702,574 | ) | | | (61,141,457 | ) |
Ashmore Emerging Markets
Equity Fund | | | 23,152 | | | | - | | | | (1,085,067 | ) | | | (86,181 | ) | | | (1,148,096 | ) |
Ashmore Emerging Markets
Small-Cap Equity Fund | | | 472,939 | | | | 1,247,441 | | | | - | | | | (936,408 | ) | | | 783,972 | |
Ashmore Emerging Markets
Frontier Equity Fund | | | 844,843 | | | | - | | | | (7,119 | ) | | | 27,449 | | | | 865,173 | |
Ashmore Emerging Markets
Short Duration Fund | | | 38,313 | | | | - | | | | (48,434 | ) | | | (351,295 | ) | | | (361,416 | ) |
The taxable character of distributions paid during the fiscal year ended October 31, 2014, were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Distributions From | | | | | | | |
| Fund | | Ordinary
Income | | | Short-
Term
Capital
Gains | | | Long-Term Capital
Gains | | | Return of
Capital | | | Total Distributions Paid | |
Ashmore Emerging Markets Corporate Debt Fund | | $ | 16,592,060 | | | $ | - | | | $ | - | | | $ | - | | | $ | 16,592,060 | |
Ashmore Emerging Markets Local Currency Bond Fund | | | - | | | | - | | | | - | | | | 3,910,983 | | | | 3,910,983 | |
Ashmore Emerging Markets Currency Fund | | | 622,023 | | | | - | | | | - | | | | 99,756 | | | | 721,779 | |
Ashmore Emerging Markets Debt Fund | | | 398,834 | | | | - | | | | 821,553 | | | | 3,551 | | | | 1,223,938 | |
Ashmore Emerging Markets Total Return Fund | | | 31,997,190 | | | | 4,933,954 | | | | 1,676,596 | | | | 11,017,760 | | | | 49,625,500 | |
Ashmore Emerging Markets Equity Fund | | | 85,696 | | | | - | | | | - | | | | - | | | | 85,696 | |
Ashmore Emerging Markets Small-Cap Equity Fund | | | 41,293 | | | | 1,549,360 | | | | 459,778 | | | | - | | | | 2,050,431 | |
Ashmore Emerging Markets Frontier Equity Fund | | | 69,453 | | | | - | | | | - | | | | - | | | | 69,453 | |
Ashmore Emerging Markets Short Duration Fund | | | 320,406 | | | | - | | | | - | | | | - | | | | 320,406 | |
141
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
The taxable character of distributions paid during the fiscal year ended October 31, 2013, were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | Distributions From | | | | | | | |
| | | | | | |
| Fund | | Ordinary
Income | | | Short-
Term
Capital
Gains | | | Long-
Term
Capital
Gains | | | Return of
Capital | | | Total
Distributions
Paid | |
Ashmore Emerging Markets Corporate Debt Fund | | $ | 4,151,090 | | | $ | 188,914 | | | $ | 94,032 | | | $ | 60,526 | | | $ | 4,494,562 | |
Ashmore Emerging Markets Local Currency Bond Fund | | | 1,840,202 | | | | 170,289 | | | | 62,101 | | | | 1,647,588 | | | | 3,720,180 | |
Ashmore Emerging Markets Currency Fund | | | 1,924,560 | | | | - | | | | - | | | | - | | | | 1,924,560 | |
Ashmore Emerging Markets Debt Fund | | | 1,617,246 | | | | 64,886 | | | | 61,828 | | | | - | | | | 1,743,960 | |
Ashmore Emerging Markets Total Return Fund | | | 32,834,581 | | | | 2,162,733 | | | | 177,936 | | | | - | | | | 35,175,250 | |
Ashmore Emerging Markets Equity Fund | | | 67,868 | | | | - | | | | - | | | | 6,780 | | | | 74,648 | |
Ashmore Emerging Markets Small-Cap Equity Fund | | | 18,498 | | | | 1,154,277 | | | | 30,847 | | | | - | | | | 1,203,622 | |
9. Distributions to shareholders
The Ashmore Emerging Markets Corporate Debt Fund, Ashmore Emerging Markets Local Currency Bond Fund, Ashmore Emerging Markets Currency Fund, Ashmore Emerging Markets Debt Fund, Ashmore Emerging Markets Total Return Fund and Ashmore Emerging Markets Short Duration Fund declare distributions of their net investment income daily and pay such distributions monthly. The Ashmore Emerging Markets Equity Fund, Ashmore Emerging Markets Small-Cap Equity Fund and Ashmore Emerging Markets Frontier Equity Fund declare and pay distributions of their net investment income at least quarterly.
Distributions of net realized capital gains, if any, are declared and paid at least annually. The Funds may also make a special distribution to comply with federal tax requirements. Income dividends and capital gains distributions determined in accordance with federal income tax regulations may differ from U.S. GAAP. Differences between tax regulations and U.S. GAAP may change the fiscal period in which income and capital items are recognized for tax and U.S. GAAP purposes. Examples of events that give rise to timing differences include wash sales, straddles and capital loss carryforwards. Further, the character of investment income and capital gains may be different for certain transactions under the two methods of accounting. Examples of characterization differences include the treatment of foreign currency transactions and swap transactions. As a result, income dividends and capital gain distributions declared during a fiscal period for federal tax purposes may differ significantly from the net investment income and realized capital gain reported on each Fund’s financial statements presented under U.S. GAAP. In general, to the extent that any differences which are permanent in nature result in over distributions to shareholders, the amount of the over distribution may be reported as return of capital. Temporary differences do not require reclassification. See note 8 for further details.
10. Derivative instruments and hedging activities
FASB ASC Topic 815-10 (“Topic 815-10”), Disclosures about Derivative Instruments and Hedging Activities, improves financial reporting about derivative instruments by requiring enhanced disclosures to enable investors to better understand how and why the Funds use derivative instruments, how these derivative instruments are accounted for and their effects on the Funds’ financial position and results of operations.
None of the derivatives held in the Funds have been designated as hedging instruments under Topic 815-10. A discussion of the strategies for these derivatives and their counterparty credit risk can be found below.
142
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
In accordance with Topic 815-10, the Funds record their trading-related derivative activities on a fair value basis (as described in Note 4). Fair values represent the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following disclosures contain information on how and why the Funds used derivative financial instruments; the credit-risk-related contingent features in certain derivative financial instruments; and how derivative financial instruments affected the Funds’ financial position, results of operations and cash flows. The location and fair value of these instruments on the Statements of Assets and Liabilities and the realized, and changes in unrealized, gains and losses on the Statements of Operations, are included in tables following each Fund’s Schedule of Investments and are categorized by type of financial derivative contract.
(a) Options
Each Fund is subject to market risk in the normal course of pursuing its investment objectives. The Funds may enter into options to speculate on the price movements of the financial instrument underlying the option, for use as an economic hedge against certain equity positions held in a Fund’s portfolio holdings or for other investment purposes. Option contracts give a Fund the right, but not the obligation, to buy or sell within a limited time, a financial instrument, commodity or currency at a contracted price that may also be settled in cash, based on differentials between specified indices or prices.
Options written obligate a Fund to buy or sell within a limited time, a financial instrument, commodity or currency at a contracted price that may also be settled in cash, based on differentials between specified indices or prices. Options written by a Fund may expose a Fund to the market risk of an unfavorable change in the financial instrument underlying the written option.
A Fund is exposed to counterparty risk from the potential that a seller or buyer of an option contract does not sell or purchase the underlying asset as agreed under the terms of the option contract. The maximum risk of loss from counterparty risk to a Fund holding a put or call option is generally the fair value of the contracts and the premiums paid to purchase its open option contracts. The risk of loss on call options sold by the Funds is potentially unlimited. A Fund considers the credit risk of the intermediary counterparties to its option transactions in evaluating potential credit risk.
Gains and losses associated with the valuation of options are recognized at fair value as the net change in unrealized appreciation/(depreciation) on investments in securities in the Statements of Operations. The premium on purchased put options exercised is subtracted from the proceeds of the sale of the underlying security or foreign currency in determining the realized gain or loss. The premium on purchased call options exercised is added to the cost of the securities or foreign currency purchased. Premiums paid on the purchase of options that expire unexercised are recorded as realized losses and are reflected in net realized gain/(loss) on investments in securities in the Statements of Operations.
As of October 31, 2014, the Funds did not hold options contracts. During the period, the Ashmore Emerging Markets Local Currency Bond Fund, Ashmore Emerging Markets Currency Fund and Ashmore Emerging Markets Total Return Fund had average notional exposures of $60,630, $36,378 and $189,973, respectively, related to options contracts.
(b) Forward foreign currency exchange contracts
A forward foreign exchange contract involves an obligation to purchase or sell a specific currency at a future date at a price set at the time the contract is made. The Funds may enter into forward foreign currency exchange contracts in connection with settling planned purchases or sales of securities, as part of an investment strategy to protect against uncertainty in the level of future foreign exchange rates in the purchase and sale of securities, or to gain or limit exposure to foreign currencies. All forward foreign currency exchange contracts are valued daily at the applicable exchange rates. Any resulting unrealized gains or losses are recorded in net change in unrealized appreciation/(depreciation) on forward foreign currency exchange contracts in the Statements of Operations. A Fund records realized gains or losses at the time the forward foreign exchange contract is offset by entering into a closing transaction with the same counterparty or is extinguished by delivery of the currency. Realized gains or losses, if any, are included in net realized gain/(loss) on forward foreign exchange contracts in the Statements of Operations.
143
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
Risks arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments should be considered in light of all related and offsetting transactions. The Funds bear market risk from changes in foreign currency exchange rates and credit risk if the counterparty fails to perform. Further information on the impact of these positions on the Funds’ financial statements can be found in the notes to the schedules of investments.
As of October 31, 2014, the Ashmore Emerging Markets Corporate Debt Fund, Ashmore Emerging Markets Local Currency Bond Fund, Ashmore Emerging Markets Currency Fund, Ashmore Emerging Markets Debt Fund, Ashmore Emerging Markets Total Return Fund, Ashmore Emerging Markets Equity Fund, Ashmore Emerging Markets Small-Cap Equity Fund, Ashmore Emerging Markets Frontier Equity Fund and Ashmore Emerging Markets Short Duration Fund had average contract notional exposures of $46,690,411, $141,374,973, $60,812,720, $11,262,552, $452,084,173, $279,497, $253,841, $948,258 and $262,250, respectively, related to forward foreign currency exchange contracts.
(c) Futures contracts
Futures contracts obligate the buyer to take and the seller to make delivery at a future date of a specified quantity of a financial instrument or an amount of cash based on the value of securities indices, commodities or the fair value in U.S. dollars of a foreign currency.
The Funds’ participation in the futures markets involves certain risks, including the imperfect correlation between movements in the price of the futures contracts and movements in the price of the underlying securities. Risks may arise from the potential inability of a counterparty to meet the terms of the contract.
Credit risk is mitigated to the extent that the exchange on which a particular futures contract is traded assumes the risk of a counterparty defaulting on its obligations under the contract.
At the time the Funds enter into a futures contract, the Funds deposit and maintain as collateral initial margin with the broker, as required by the exchange on which the transaction is effected. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the fluctuation in the value of the contract. Such receipts or payments are determined by the rules of the futures exchange and are known as variation margin. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed. This amount is included in net realized gain or loss on futures contracts in the Statement of Operations. Any unrealized gains or losses on open futures contracts are included in net change in unrealized appreciation/(depreciation) on futures contracts in the Statement of Operations.
As of October 31, 2014, the Funds did not hold futures contracts.
(d) Swap Agreements
During the reporting period, certain Funds entered into swap agreements, which are arrangements between two parties to exchange cash flows based on a notional principal amount. Swap agreements are privately negotiated in the over-the-counter market (“OTC swaps”) or may be executed in a multilateral or other trade facility platform, such as a registered exchange (“centrally cleared swaps”). Swap agreements are marked to market daily and the change in fair value, if any, is recorded as unrealized gain or loss. Payments made or received are recorded as part of realized gains and losses. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for the change in value as appropriate (“variation margin”) on the Statement of Assets and Liabilities. Certain Funds could be exposed to credit or market risk due to unfavorable changes in the fluctuation of interest rates or if the counterparty defaults on its obligations to perform.
Swap agreements are recorded at their fair value. The fair value is based on quoted market prices or prices obtained from a third party provider at the date of the Statements of Assets and Liabilities without any deduction for estimated future selling costs. The periodic payments on the swap agreements entered into by the Funds are reflected in the Statement of Operations within net realized gain/(loss) on interest rate swap
144
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
contracts. Unrealized gains are reported as an asset and unrealized losses are reported as a liability in the Statements of Assets and Liabilities. Changes in the fair value are reflected in the Statements of Operations within net change in unrealized appreciation/(depreciation) on interest rate and centrally cleared swap contracts in the period in which they occur.
As of October 31, 2014, the Ashmore Emerging Markets Local Currency Bond Fund, Ashmore Emerging Markets Currency Fund and Ashmore Emerging Markets Total Return Fund had average notional exposures of $5,016,200, $302,956 and $10,971,596, respectively, related to swap agreements.
The Funds may enter into transactions subject to enforceable netting agreements or other similar arrangements (“netting agreements”). Generally, netting agreements allow the Funds to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, the Funds manage their cash collateral and securities collateral on a counterparty basis.
Offsetting of Financial Assets and Derivative Assets as of October 31, 2014.
(a) Exchange-Traded:
Centrally Cleared Swaps
| | | | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Local Currency Bond Fund | |
Derivative Instruments | | Counterparty | | Gross Amounts of
Assets Presented in
Statement of
Assets and Liabilities | | | Gross Amounts of
Liabilities Presented in
Statement of Assets and Liabilities | | | Net
Amounts | | | Collateral
(Received) Paid | | | Net
Exposure | |
Centrally Cleared Swap | | Morgan Stanley | | $ | - | | | $ | (4,647 | ) | | $ | (4,647 | ) | | $ | 4,647 | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | |
| | Total | | $ | - | | | $ | (4,647 | ) | | $ | (4,647 | ) | | $ | 4,647 | | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | |
(b) Over-the-Counter Financial Derivative Instruments:
Forward Currency Contracts and Total Return Swap Contracts
| | | | | | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Corporate Debt Fund | |
| Derivative Instruments | | Counterparty | | | Gross Amounts of
Assets Presented in
Statement of
Assets and Liabilities | | | Gross Amounts of
Liabilities Presented in
Statement of Assets and Liabilities | | | Net Amounts | | | Collateral
(Received) Paid | | | Net
Exposure | |
Forwards | | | Barclays Wholesale GTS | | | $ | 149,131 | | | $ | (16,737 | ) | | $ | 132,394 | | | $ | - | | | $ | 132,394 | |
Forwards | | | BNP Paribas | | | | 6,813 | | | | (32,872 | ) | | | (26,059 | ) | | | - | | | | (26,059 | ) |
Forwards | | | Deutsche Bank London | | | | 1,110 | | | | (166 | ) | | | 944 | | | | - | | | | 944 | |
Forwards | |
| Goldman Sachs International
Ltd London |
| | | 7,673 | | | | - | | | | 7,673 | | | | - | | | | 7,673 | |
Forwards | | | HSBC Bank PLC | | | | 34,707 | | | | - | | | | 34,707 | | | | - | | | | 34,707 | |
Forwards | | | JP Morgan | | | | 7,996 | | | | (7,699 | ) | | | 297 | | | | - | | | | 297 | |
Forwards | | | Merrill Lynch International | | | | 13,744 | | | | (10,261 | ) | | | 3,483 | | | | - | | | | 3,483 | |
Forwards | | | Santander | | | | 14 | | | | - | | | | 14 | | | | - | | | | 14 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Total | | | $ | 221,188 | | | $ | (67,735 | ) | | $ | 153,453 | | | $ | - | | | $ | 153,453 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
145
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Ashmore Emerging Markets Local Currency Bond Fund | | | | | | | | | | |
| | | | | | Forwards | | | Interest Rate Swaps | | | | | | | | | | |
Derivative Instruments | | Counterparty | | | Gross Amounts of Assets Presented in Statement of Assets and Liabilities | | | Gross Amounts of Liabilities Presented in Statement of Assets and Liabilities | | | Gross Amounts of Assets Presented in Statement of Assets and Liabilities | | | Gross Amounts of Liabilities Presented in Statement of Assets and Liabilities | | | Net Amounts | | | Collateral
(Received) Paid | | | Net Exposure | |
Forwards | |
| ANZ Banking Corp.
Melbourne |
| | $ | 3,352 | | | $ | (13,430 | ) | | $ | - | | | $ | - | | | $ | (10,078 | ) | | $ | 10,078 | | | $ | - | |
Forwards/Interest Rate Swaps | | | Barclays Wholesale GTS | | | | 54,001 | | | | (197,036 | ) | | | - | | | | (11,075 | ) | | | (154,110 | ) | | | 154,110 | | | | - | |
Forwards | | | BNP Paribas | | | | - | | | | (38,198 | ) | | | - | | | | - | | | | (38,198 | ) | | | - | | | | (38,198 | ) |
Forwards | | | Citibank London | | | | 168,402 | | | | (17,514 | ) | | | - | | | | - | | | | 150,888 | | | | - | | | | 150,888 | |
Forwards | |
| CSFB Global Foreign
Exchange London |
| | | 59,797 | | | | (4,668 | ) | | | - | | | | - | | | | 55,129 | | | | - | | | | 55,129 | |
Forwards | | | Deutsche Bank London | | | | 9,823 | | | | (94,752 | ) | | | - | | | | - | | | | (84,929 | ) | | | - | | | | (84,929 | ) |
Forwards | |
| Goldman Sachs International
Ltd. London |
| | | 10,022 | | | | (66,005 | ) | | | - | | | | - | | | | (55,983 | ) | | | - | | | | (55,983 | ) |
Forwards/Interest Rate Swaps | | | HSBC Bank PLC | | | | 222,570 | | | | (152,173 | ) | | | 275,564 | | | | (83,638 | ) | | | 262,323 | | | | 600,000 | | | | 862,323 | |
Forwards | | | JP Morgan | | | | 110,669 | | | | (141,469 | ) | | | - | | | | - | | | | (30,800 | ) | | | - | | | | (30,800 | ) |
Forwards | | | Merrill Lynch International | | | | 98,682 | | | | (90,226 | ) | | | - | | | | - | | | | 8,456 | | | | - | | | | 8,456 | |
Forwards/Interest Rate Swaps | |
| Morgan Stanley & Co.
International |
| | | 45,323 | | | | (21,776 | ) | | | 12,404 | | | | - | | | | 35,951 | | | | 600,000 | | | | 635,951 | |
Forwards | | | Santander | | | | 81,543 | | | | - | | | | - | | | | - | | | | 81,543 | | | | - | | | | 81,543 | |
Forwards | | | Standard Chartered London | | | | 156,657 | | | | (121,236 | ) | | | - | | | | - | | | | 35,421 | | | | - | | | | 35,421 | |
Forwards | |
| Union Bank of Switzerland -
London |
| | | 166,751 | | | | (125,059 | ) | | | - | | | | - | | | | 41,692 | | | | - | | | | 41,692 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Total | | | $ | 1,187,592 | | | $ | (1,083,542 | ) | | $ | 287,968 | | | $ | (94,713 | ) | | $ | 297,305 | | | $ | 1,364,188 | | | $ | 1,661,493 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Ashmore Emerging Markets Currency Fund | | | | | | | | | | |
Derivative Instruments | | Counterparty | | | Gross Amounts of Assets Presented in Statement of
Assets and Liabilities | | | Gross Amounts of Liabilities Presented in
Statement of
Assets and Liabilities | | | Net Amounts | | | Collateral
(Received) Paid | | | Net Exposure | |
Forwards | |
| ANZ Banking Corp.
Melbourne |
| | $ | 507 | | | $ | (2,327 | ) | | $ | (1,820 | ) | | $ | - | | | $ | (1,820 | ) |
Forwards | | | Barclays Wholesale GTS | | | | 4,309 | | | | (28,727 | ) | | | (24,418 | ) | | | - | | | | (24,418 | ) |
Forwards | | | BNP Paribas | | | | 6,077 | | | | (5,701 | ) | | | 376 | | | | | | | | 376 | |
Forwards | | | Citibank London | | | | 15,615 | | | | (2,282 | ) | | | 13,333 | | | | - | | | | 13,333 | |
Forwards | |
| CSFB Global Foreign
Exchange London |
| | | 4,778 | | | | (510 | ) | | | 4,268 | | | | - | | | | 4,268 | |
Forwards | | | Deutsche Bank London | | | | 378 | | | | (18,082 | ) | | | (17,704 | ) | | | - | | | | (17,704 | ) |
Forwards | |
| Goldman Sachs International
Ltd. London |
| | | 1,475 | | | | (7,968 | ) | | | (6,493 | ) | | | - | | | | (6,493 | ) |
Forwards | | | HSBC Bank PLC | | | | 153,490 | | | | (119,331 | ) | | | 34,159 | | | | - | | | | 34,159 | |
Forwards | | | JP Morgan | | | | 279 | | | | (7,348 | ) | | | (7,069 | ) | | | - | | | | (7,069 | ) |
Forwards | | | Merrill Lynch International | | | | 12,236 | | | | (10,256 | ) | | | 1,980 | | | | - | | | | 1,980 | |
Forwards | |
| Morgan Stanley & Co.
International |
| | | 1,243 | | | | (68,461 | ) | | | (67,218 | ) | | | 67,218 | | | | - | |
Forwards | | | Santander | | | | 10,853 | | | | - | | | | 10,853 | | | | - | | | | 10,853 | |
Forwards | | | Standard Chartered London | | | | 149,914 | | | | (136,846 | ) | | | 13,068 | | | | 150,000 | | | | 163,068 | |
Forwards | |
| Union Bank of Switzerland -
London |
| | | 15,223 | | | | (5,229 | ) | | | 9,994 | | | | - | | | | 9,994 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Total | | | $ | 376,377 | | | $ | (413,068 | ) | | $ | (36,691 | ) | | $ | 217,218 | | | $ | 180,527 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | Ashmore Emerging Markets Debt Fund | | | | | | | | | | |
Derivative Instruments | | Counterparty | | | Gross Amounts of Assets Presented in
Statement of
Assets and Liabilities | | | Gross Amounts of Liabilities Presented in Statement of Assets and Liabilities | | | Net Amounts | | | Collateral
(Received) Paid | | | Net Exposure | |
Forwards | | | Barclays Wholesale GTS | | | $ | 3,483 | | | $ | (1,565 | ) | | $ | 1,918 | | | $ | - | | | $ | 1,918 | |
Forwards | | | BNP Paribas | | | | - | | | | (450 | ) | | | (450 | ) | | | - | | | | (450 | ) |
Forwards | |
| CSFB Global Foreign
Exchange London |
| | | 3,520 | | | | - | | | | 3,520 | | | | - | | | | 3,520 | |
Forwards | | | Deutsche Bank London | | | | - | | | | (250 | ) | | | (250 | ) | | | - | | | | (250 | ) |
Forwards | |
| Goldman Sachs International
Ltd. London |
| | | 164 | | | | (403 | ) | | | (239 | ) | | | - | | | | (239 | ) |
Forwards | | | HSBC Bank PLC | | | | 306 | | | | (331 | ) | | | (25 | ) | | | - | | | | (25 | ) |
Forwards | | | JP Morgan | | | | 2,157 | | | | (2,077 | ) | | | 80 | | | | - | | | | 80 | |
Forwards | | | Merill Lynch International | | | | - | | | | (691 | ) | | | (691 | ) | | | - | | | | (691 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Total | | | $ | 9,630 | | | $ | (5,767 | ) | | $ | 3,863 | | | $ | - | | | $ | 3,863 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
146
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Total Return Fund | |
| | | | | Forwards | | | Interest Rate Swaps | | | | | | | | | | |
| Derivative Instruments | | Counterparty | | Gross Amounts of
Assets Presented in
Statement of
Assets and Liabilities | | | Gross Amounts of
Liabilities Presented in
Statement of Assets and Liabilities | | | Gross Amounts of
Assets Presented in
Statement of
Assets and Liabilities | | | Gross Amounts of
Liabilities Presented in
Statement of Assets and Liabilities | | | Net
Amounts | | | Collateral
(Received) Paid | | | Net
Exposure | |
Forwards | | ANZ Banking Corp. Melbourne | | $ | 20,919 | | | $ | (85,926 | ) | | $ | - | | | $ | - | | | $ | (65,007 | ) | | $ | 65,007 | | | $ | - | |
Forwards/Interest Rate Swaps | | Barclays Wholesale GTS | | | 318,099 | | | | (780,740 | ) | | | 9,489 | | | | - | | | | (453,152 | ) | | | 300,890 | | | | (152,262 | ) |
Forwards | | BNP Paribas | | | 132,098 | | | | (190,773 | ) | | | - | | | | - | | | | (58,675 | ) | | | - | | | | (58,675 | ) |
Forwards | | Citibank London | | | 850,157 | | | | (132,669 | ) | | | - | | | | - | | | | 717,488 | | | | - | | | | 717,488 | |
Forwards | | CSFB Global Foreign Exchange London | | | 414,154 | | | | (4,377 | ) | | | - | | | | - | | | | 409,777 | | | | - | | | | 409,777 | |
Forwards | | Deutsche Bank London | | | 56,609 | | | | (671,564 | ) | | | - | | | | - | | | | (614,955 | ) | | | 400,000 | | | | (214,955 | ) |
Forwards | | Goldman Sachs International Ltd. London | | | 146,795 | | | | (344,506 | ) | | | - | | | | - | | | | (197,711 | ) | | | - | | | | (197,711 | ) |
Forwards/Interest Rate Swaps | | HSBC Bank PLC | | | 793,326 | | | | (546,189 | ) | | | 155,592 | | | | (87,113 | ) | | | 315,616 | | | | 160,000 | | | | 475,616 | |
Forwards | | JP Morgan | | | 97,624 | | | | (266,676 | ) | | | - | | | | - | | | | (169,052 | ) | | | - | | | | (169,052 | ) |
Forwards | | Merrill Lynch International | | | 594,227 | | | | (550,696 | ) | | | - | | | | - | | | | 43,531 | | | | - | | | | 43,531 | |
Forwards/Interest Rate Swaps | | Morgan Stanley & Co. International | | | 98,539 | | | | (1,497,299 | ) | | | 2,735 | | | | - | | | | (1,396,025 | ) | | | 1,396,025 | | | | - | |
Forwards | | Santander | | | 517,845 | | | | - | | | | - | | | | - | | | | 517,845 | | | | - | | | | 517,845 | |
Forwards | | Standard Chartered London | | | 1,295,930 | | | | (1,270,262 | ) | | | - | | | | - | | | | 25,668 | | | | 550,000 | | | | 575,668 | |
Forwards | | Union Bank Of Switzerland - London | | | 933,565 | | | | (1,062,018 | ) | | | - | | | | - | | | | (128,453 | ) | | | - | | | | (128,453 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Total | | $ | 6,269,887 | | | $ | (7,403,695 | ) | | $ | 167,816 | | | $ | (87,113 | ) | | $ | (1,053,105 | ) | | $ | 2,871,922 | | | $ | 1,818,817 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | Ashmore Emerging Markets Short Duration Fund | | | | | | | | | | |
Derivative Instruments | | Counterparty | | Gross Amounts of
Assets Presented in
Statement of
Assets and Liabilities | | | Gross Amounts of
Liabilities Presented in
Statement of
Assets and Liabilities | | | Net
Amounts | | | Collateral
(Received)
Paid | | | Net
Exposure | |
Forwards | | HSBC Bank PLC | | $ | 5,468 | | | $ | - | | | $ | 5,468 | | | $ | - | | | $ | 5,468 | |
Forwards | | Merrill Lynch International | | | 2,022 | | | | - | | | | 2,022 | | | | - | | | | 2,022 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | Total | | $ | 7,490 | | | $ | - | | | $ | 7,490 | | | $ | - | | | $ | 7,490 | |
| | | | | | | | | | | | | | | | | | | | | | |
11. Related parties
Investment management fees
The Trust has an Investment Management Agreement (the “Agreement”) with the Investment Manager, with whom certain officers and directors of the Trust are affiliated, to furnish investment management services to the Funds. Under the terms of the Agreement, the Trust, on behalf of the Funds, compensates the Investment Manager for its investment management services at the following rates, based on each Fund’s average daily net assets:
| | |
| Fund | | Rate |
Ashmore Emerging Markets Corporate Debt Fund | | 1.15% |
Ashmore Emerging Markets Local Currency Bond Fund | | 0.95% |
Ashmore Emerging Markets Currency Fund | | 0.85% |
Ashmore Emerging Markets Debt Fund | | 0.90% |
Ashmore Emerging Markets Total Return Fund | | 1.00% |
Ashmore Emerging Markets Equity Fund | | 1.15% |
Ashmore Emerging Markets Small-Cap Equity Fund | | 1.50% |
Ashmore Emerging Markets Frontier Equity Fund | | 1.50% |
Ashmore Emerging Markets Short Duration Fund | | 0.65% |
The Investment Manager has contractually agreed to waive its fees or reimburse each Fund for other expenses until February 28, 2015, to the extent that total operating expenses (other than acquired fund fees and expenses, interest expenses, taxes, extraordinary expenses and certain credits and offset arrangements) for each class of shares of each Fund exceed the rates in the table below, based on each Fund’s average daily net assets. The expense limitation arrangement may be terminated by the Board at any time.
147
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
| | | | | | |
| Fund | | Class A | | Class C | | Institutional
Class |
Ashmore Emerging Markets Corporate Debt Fund | | 1.45% | | 2.20% | | 1.17% |
Ashmore Emerging Markets Local Currency Bond Fund | | 1.25% | | 2.00% | | 0.97% |
Ashmore Emerging Markets Currency Fund | | 1.15% | | 1.90% | | 0.87% |
Ashmore Emerging Markets Debt Fund | | 1.20% | | 1.95% | | 0.92% |
Ashmore Emerging Markets Total Return Fund | | 1.30% | | 2.05% | | 1.02% |
Ashmore Emerging Markets Equity Fund | | 1.45% | | 2.20% | | 1.17% |
Ashmore Emerging Markets Small-Cap Equity Fund | | 1.80% | | 2.55% | | 1.52% |
Ashmore Emerging Markets Frontier Equity Fund | | 1.80% | | 2.55% | | 1.52% |
Ashmore Emerging Markets Short Duration Fund | | 0.95% | | 1.70% | | 0.67% |
Any such waiver or reimbursement is subject to the Investment Manager’s right to recover amounts waived or reimbursed to the extent actual fees and expenses for a future fiscal period are less than each Fund’s expense limitation cap, provided, however, that the Investment Manager shall only be entitled to recover such amounts waived or reimbursed during the previous three fiscal years. The total amounts subject to recovery in future fiscal years are shown below:
| | | | | | | | | | | | | | | | |
| Fund | | 2015 | | | 2016 | | | 2017 | | | Total | |
Ashmore Emerging Markets Corporate Debt Fund | | $ | 209,250 | | | $ | 223,515 | | | $ | 296,575 | | | $ | 729,340 | |
Ashmore Emerging Markets Local Currency Bond Fund | | | 274,477 | | | | 212,015 | | | | 282,751 | | | | 769,243 | |
Ashmore Emerging Markets Currency Fund | | | 258,326 | | | | 194,284 | | | | 194,785 | | | | 647,395 | |
Ashmore Emerging Markets Debt Fund | | | 230,499 | | | | 173,356 | | | | 165,889 | | | | 569,744 | |
Ashmore Emerging Total Return Fund | | | 452,094 | | | | 619,476 | | | | 875,987 | | | | 1,947,557 | |
Ashmore Emerging Markets Equity Fund | | | 253,176 | | | | 147,340 | | | | 217,452 | | | | 617,968 | |
Ashmore Emerging Markets Small-Cap Equity Fund | | | 225,857 | | | | 158,906 | | | | 328,428 | | | | 713,191 | |
Ashmore Emerging Markets Frontier Equity Fund | | | - | | | | - | | | | 298,073 | | | | 298,073 | |
Ashmore Emerging Markets Short Duration Fund | | | - | | | | - | | | | 155,228 | | | | 155,228 | |
Subadviser fees
For the services provided, the Investment Manager pays the Subadviser at the following rates, based on each Fund’s average daily net assets:
| | |
| Fund | | Institutional Class |
Ashmore Emerging Markets Equity Fund | | 0.92% |
Ashmore Emerging Markets Small-Cap Equity Fund | | 1.20% |
Ashmore Emerging Markets Frontier Equity Fund | | 1.20% |
Distribution and Servicing fees
The Funds have adopted Amended Plans of Distribution and Servicing Fees pursuant to Rule 12b-1 under the 1940 Act (“Distribution and Servicing Fee Plans”). Under the Distribution and Servicing Fee Plans, each of the Funds may pay 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
148
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
shareholder accounts (“servicing fees”). Class A and 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 table 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% |
Investor Ownership
On November 19, 2010, Ashmore Emerging Markets Corporate Debt Fund, Ashmore Emerging Markets Local Currency Bond Fund, Ashmore Emerging Markets Currency Fund, Ashmore Emerging Markets Debt Fund and Ashmore Emerging Markets Total Return Fund were seeded. On June 22, 2011, Ashmore Emerging Markets Equity Fund was seeded. On October 4, 2011, Ashmore Emerging Markets Small-Cap Equity Fund was seeded. On November 5, 2013, Ashmore Emerging Markets Frontier Equity Fund was seeded. On June 24, 2014, Ashmore Emerging Markets Short Duration Fund was seeded. Each of the Funds was seeded by Ashmore Investments UK Limited, the parent of the Investment Manager. Ashmore Investments UK Limited seeded each Fund with $10 million, except the Ashmore Emerging Markets Total Return Fund and the Ashmore Emerging Markets Frontier Equity Fund, which were seeded with $20 million and $5 million, respectively.
As of October 31, 2014, Ashmore Investments UK Limited owned the following percentages of outstanding shares of each Fund:
| | |
| Fund | | Institutional
Class |
Ashmore Emerging Markets Currency Fund | | 35.42% |
Ashmore Emerging Markets Debt Fund | | 97.93% |
Ashmore Emerging Markets Equity Fund | | 60.44% |
Ashmore Emerging Markets Small-Cap Equity Fund | | 16.38% |
Ashmore Emerging Markets Frontier Equity Fund | | 78.63% |
Ashmore Emerging Markets Short Duration Fund | | 46.76% |
In addition to the Ashmore Investments UK Limited ownership, shown in the table above, the following Funds had other investors owning greater than 5% of the outstanding shares of such Funds:
149
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
| | | | | | |
| Fund | | Class | | # of Investors
Owning > 5%
of outstanding
Shares | | % of Ownership by
Investor |
Ashmore Emerging Markets Corporate Debt Fund | | Class A | | 2 | | 65.85%, 7.88% |
| | Class C | | 9 | | 16.15%, 15.11%, 8.14%, 7.70%, 6.89%, 6.67%, 6.29%, 6.24%, 5.71% |
| | Class I | | 1 | | 22.78% |
| | | | |
Ashmore Emerging Markets Local Currency Bond Fund | | Class A | | 3 | | 52.05%, 28.37%, 9.21% |
| | Class C | | 6 | | 30.50%, 14.66%, 14.11%, 9.82%, 9.77%, 7.97% |
| | Class I | | 4 | | 29.45%, 22.19%, 21.39%, 5.09% |
Ashmore Emerging Markets Currency Fund | | Class A | | 1 | | 100.00% |
| | Class C | | 1 | | 100.00% |
| | Class I | | 1 | | 58.25% |
| | | | |
Ashmore Emerging Markets Debt Fund | | Class A | | 3 | | 50.57%, 39.96%, 6.23% |
| | Class C | | 1 | | 100.00% |
150
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
| | | | | | |
| Fund | | Class | | # of Investors
Owning > 5%
of outstanding
Shares | | % of Ownership by
Investor |
Ashmore Emerging Markets Total Return Fund | | Class A | | 3 | | 57.48%, 7.16%, 5.70% |
| | Class C | | 2 | | 38.88%, 20.43% |
| | Class I | | 4 | | 15.06%, 8.16%, 7.50%, 6.29% |
| | | | |
Ashmore Emerging Markets Equity Fund | | Class A | | 3 | | 45.72%, 36.82%, 9.85% |
| | Class C | | 1 | | 100.00% |
| | Class I | | 3 | | 14.67%, 9.56%, 8.94% |
Ashmore Emerging Markets Small-Cap Equity Fund | | Class A | | 5 | | 34.92%, 15.84%, 13.28%, 12.66%, 10.63% |
| | Class C | | 5 | | 44.05%, 13.01%, 12.81%, 12.81%, 9.80% |
| | Class I | | 4 | | 21.18%, 17.97%, 17.42%, 10.50% |
| | | | |
Ashmore Emerging Markets Frontier Equity Fund | | Class A | | 1 | | 100.00% |
| | Class C | | 1 | | 100.00% |
| | Class I | | 1 | | 19.46% |
Ashmore Emerging Markets Short Duration Fund | | Class A | | 1 | | 100.00% |
| | Class I | | 2 | | 46.22%, 7.02% |
151
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2014
Affiliated Parties
During the reporting period, Ashmore Emerging Market Corporate Debt Fund and Ashmore Emerging Markets Total Return Fund received repayment proceeds of $5,900,000 and $2,300,000 from Rubicon Offshore Holdings Limited, which represented repayment of the full amount of the loan plus accrued interest though the payment date in respect of a loan each held. Ashmore Emerging Markets Corporate Debt Fund’s and Ashmore Emerging Markets Total Return Fund’s cost basis for those loans, which were established during the reporting period, were $5,900,000 and $2,300,000, respectively, and the interest income amounts earned by each Fund in respect of those loans were $224,960 and $87,696, respectively. Entities advised by affiliated persons of Ashmore Investment Advisors Limited previously owned greater than 25% of the voting securities of Rubicon and, accordingly, Rubicon may have been considered an affiliated person of the Funds during the period of that ownership.
12. Financial instruments with off-balance sheet risk and concentration of credit risk
Derivative financial instruments may result in off-balance sheet market and credit risk. Market risk is the possibility that future changes in market price may make a financial instrument less valuable. If the markets should move against one or more positions that the Funds hold, the Funds could incur losses greater than the unrealized amounts recorded in the Statements of Assets and Liabilities.
Credit risk is the risk that the counterparty will default and fail to fulfill the terms of the agreement.
Derivative risk exposures are discussed in note 10.
13. Subsequent events
Management has evaluated subsequent events for the Funds through the date the financial statements were issued, and has concluded that there are no identified subsequent events relevant for financial statement adjustment or disclosure.
152
KPMG LLP
Aon Center
Suite 5500
200 East Randolph Drive
Chicago, IL 60601-6436
Report of Independent Registered Public Accounting Firm
The Shareholders and Board of Trustees
Ashmore Funds:
We have audited the accompanying statements of assets and liabilities of Ashmore Emerging Markets Corporate Debt Fund, Ashmore Emerging Markets Local Currency Bond Fund, Ashmore Emerging Markets Currency Fund, Ashmore Emerging Markets Debt Fund (formerly, the Ashmore Emerging Markets Sovereign Debt Fund), Ashmore Emerging Markets Total Return Fund, Ashmore Emerging Markets Equity Fund, Ashmore Emerging Markets Small-Cap Equity Fund, Ashmore Emerging Markets Frontier Equity Fund, and Ashmore Emerging Markets Short Duration Fund (Funds within Ashmore Funds), including the schedules of investments, as of October 31, 2014, and the related statements of operations for the year or period then ended, the statements of changes in net assets for each of the years or periods in the two-year period ended October 31, 2014, and the financial highlights for each of the years or periods in the four-year period ended October 31, 2014. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2014, by correspondence with custodian and brokers or other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of October 31, 2014, the results of their operations for the year or period then ended, the changes in their net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the four-year period ended October 31, 2014, in conformity with U.S. generally accepted accounting principles.
/s/ KPMG LLP
Chicago, Illinois
December 23, 2014
KPMG LLP is a Delaware limited liability partnership,
the U.S. member firm of KPMG International Cooperative
(“KPMG International”), a Swiss entity.
SHAREHOLDER MEETING RESULTS (UNAUDITED)
A special meeting of shareholders (the “Meeting”) of Ashmore Funds was held on September 24, 2014 to elect five Trustees for the Trust, each to serve until his or her successor is duly elected and qualified. Three of the nominees were serving as Trustees of the Trust as of the date of the Meeting: Ms. Yeelong Balladon and Messrs. Michael Chamberlin and George Grunebaum. Two additional nominees stood for election at the Meeting: Messrs. Joseph Grainger and Stephen Hicks. The resulting votes are presented below:
| | | | |
| | | Number of Votes For | | Number of Votes Withheld |
| | |
Yeelong Balladon | | 92,164,693.501 | | 80,309.691 |
| | |
Michael Chamberlin | | 92,118,507.105 | | 126,496.087 |
| | |
Joseph Grainger | | 92,118,507.105 | | 126,496.087 |
| | |
George Grunebaum | | 92,114,123.105 | | 130,880.087 |
| | |
Stephen Hicks | | 92,097,841.300 | | 147,161.892 |
154
ASHMORE FUNDS
ADVISORY AGREEMENT APPROVAL
As of October 31, 2014
ASHMORE EMERGING MARKETS FRONTIER EQUITY FUND
At an in-person meeting of the Board of Trustees of Ashmore Funds (the “Trust”) held on September 16, 2013, the Board, including a majority of the Trustees who are not “interested persons” of the Trust within the meaning of the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Trustees”), voting separately, considered and unanimously approved the Investment Management Agreement between Ashmore Investment Management Limited (“AIML”) and the Trust, on behalf of Ashmore Emerging Markets Frontier Equity Fund (for purposes of this section, the “Fund”), and the Amended and Restated Sub-Advisory Agreement between AIML and Ashmore Equities Investment Management (US) LLC (formerly, Ashmore EMM, L.L.C.), a majority-owned subsidiary of AIML (“AEIM”) for the management of the Fund (each, an “Agreement,” and collectively, the “Agreements”). In determining to approve the Agreements for an initial two-year period, the Trustees considered all factors that they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant to the interests of shareholders, including those listed below.
In evaluating the proposed terms of the Agreements, the Board did not identify any single factor as controlling, and individual members of the Board did not necessarily attribute the same weight or importance to each factor, nor are the items described herein all-encompassing of the matters considered by the Board. Throughout their review of the Agreements, the Independent Trustees were assisted by their own Independent Trustee legal counsel. The Independent Trustees had formally requested through their legal counsel, and AIML had provided, certain information the Independent Trustees considered relevant to their evaluation. The Independent Trustees discussed the information over the course of several different occasions, without representatives of AIML or AEIM present.
Among the information and factors considered by the Board in evaluating the Agreements were the following:
NATURE, QUALITY AND EXTENT OF INVESTMENT MANAGEMENT SERVICES
The Board examined the nature, quality and extent of the services expected to be provided by AIML and AEIM to the Fund.
AIML’s Services
The Board considered information regarding the overall organization and resources of AIML, including information regarding senior management, portfolio managers and other personnel expected to provide investment management, administrative and other services to the Fund. The Board reviewed AIML’s key personnel who were expected to provide services to the Fund, as well as the fact that, under the Agreements, AIML would have the authority and responsibility, subject to the Board’s oversight, either directly or through others selected by it, to make and execute investment decisions for the Fund within the framework of the Fund’s investment policies and restrictions. The Board considered that AIML’s or its delegates’ duties would include: (i) investment research and selection, (ii) adherence to (and monitoring compliance with) the Fund’s investment policies and restrictions, the 1940 Act and other relevant laws, and (iii) supervision of the investment management and other services provided by AEIM to the Fund. The Board also evaluated the significant compliance resources available to and expected to be utilized by AIML.
AEIM’s Services
The Board’s consideration of the services expected to be provided by AEIM included a review of its senior management, portfolio managers and other personnel expected to provide investment management services to the Fund, its investment philosophy, style and processes, its approach to controlling risk, and the quality and extent of its investment capabilities and resources, including the nature and extent of research it receives from broker-dealers. In its deliberations, the Board considered AIML’s affiliated relationship with AEIM. The Board also evaluated the significant compliance resources available to and utilized by AEIM. The Board also considered AEIM’s breadth
155
ASHMORE FUNDS
ADVISORY AGREEMENT APPROVAL (CONTINUED)
As of October 31, 2014
and depth of experience and investment results in managing other accounts similar to the Fund. The Board reviewed information concerning AEIM’s historical investment results in managing funds and accounts in a manner substantially similar to that proposed for the Fund (“Similar Accounts”), as compared with the Fund’s proposed performance benchmark index. The Board also reviewed information concerning historical investment results for mutual funds managed by other investment advisers pursuing similar investment strategies (“Peers”). The Board noted that, for example, the Ashmore Frontier Markets Equity Composite performed well in comparison to the performance benchmark index over the year-to-date, one- and three-year and since-inception (May 31, 2010) periods ended June 30, 2013.
The Board concluded that it was satisfied with the nature, extent and quality of services expected to be provided by AIML to the Fund and that there was a reasonable basis on which to conclude that the Fund would benefit from the services provided by AIML. The Board separately concluded that it was satisfied with the nature, extent and quality of services expected to be provided to the Fund by AEIM and that there was a reasonable basis on which to conclude that the Fund would benefit from the services provided by AEIM.
INVESTMENT MANAGEMENT FEES AND COST OF SERVICES
The Board also considered the proposed contractual and expected net investment management fees to be paid by the Fund to AIML. In doing so, the Board compared the proposed contractual and expected net investment management fees to the management fees of the Fund’s Peers and Similar Accounts. The Board also considered and took into account AIML’s proposed undertaking to waive fees and/or reimburse expenses so as to otherwise limit the Fund’s ordinary operating expenses until at least February 28, 2015.
The Trustees also considered the fees to be paid by AIML to AEIM and to be retained by AIML in relation to the services provided by AEIM and AIML, respectively.
The Board reviewed AIML’s projected costs and profitability as presented by it in serving as investment adviser to the Fund.
In evaluating the terms of the proposed Agreements, the Board also considered the potential other benefits that may inure to AIML and AEIM as a result of their relationship with the Fund, such as the reputational benefit derived from serving as investment adviser or subadviser, as applicable, to the Fund.
In light of the information provided and the quality of the services anticipated to be rendered, the Board concluded that the investment management fees to be charged to the Fund and the investment subadvisory fees to be paid by AIML to AEIM were reasonable.
ECONOMIES OF SCALE
The Board noted that the proposed contractual investment management fees for the Fund do not contain breakpoints that would reduce the fee rate on assets above specified levels. In evaluating the Fund’s proposed contractual investment management fees, the Board considered AIML’s representation that the proposed contractual investment management fees were intended to reflect achievable economies of scale and also considered AIML’s proposal to limit certain expenses of the Fund. The Board noted that it intends to monitor the Fund’s asset growth in connection with future reviews of the Fund’s Agreements to determine whether breakpoints may be appropriate at such time. In light of the Trust’s current size and the Fund’s expense structure, the Board concluded that breakpoints in the Fund’s contractual investment management fees were not warranted at this time.
156
ASHMORE FUNDS
ADVISORY AGREEMENT APPROVAL (CONTINUED)
As of October 31, 2014
ASHMORE EMERGING MARKETS SHORT DURATION FUND
At an in-person meeting of the Board of Trustees of Ashmore Funds (the “Trust”) held on June 11, 2014, the Board, including a majority of the Trustees who are not “interested persons” of the Trust within the meaning of the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Trustees”), voting separately, considered and unanimously approved the Investment Management Agreement between Ashmore Investment Management Limited (“AIML”) and the Trust, on behalf of Ashmore Emerging Markets Short Duration Fund (for purposes of this section, the “Fund”) (the “Investment Management Agreement”).
The Board, including the Independent Trustees voting separately, also unanimously approved at the same time a novation instrument among AIML, Ashmore Investment Advisors Limited (“AIAL”) and the Trust, on behalf of the Fund, by which AIAL would be substituted for AIML and assume, later in 2014, all of AIML’s responsibilities for the management of the Fund. AIML and AIAL are both wholly-owned subsidiaries of Ashmore Investments (UK) Limited, which is a wholly-owned subsidiary of Ashmore Group Plc. The transfer of responsibility was part of AIML’s planning for regulatory change and ongoing regulatory compliance in the United Kingdom and did not involve (and is not expected in the future to involve) any change in: (i) the manner in which advisory services are to be provided to the Fund as contemplated by the Investment Management Agreement; (ii) the personnel who would be responsible for providing or supervising the provision of investment advisory services to the Fund (including those who would be responsible for the management, portfolio management and operation of the Fund); (iii) the personnel who would be ultimately responsible for overseeing such provision of services; and (iv) the proposed substantive terms of the Investment Management Agreement, including the fees payable by the Fund thereunder or the initial two-year term of the Investment Management Agreement. The novation became effective on July 18, 2014. The Investment Management Agreement and the novation instrument by which AIAL was substituted for AIML under the Investment Management Agreement are referred to herein collectively as the “Agreements”.
In determining to approve the Agreements for an initial term, the Trustees considered all factors that they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant to the interests of shareholders, including those listed below.
In evaluating the proposed terms of the Agreements, the Board did not identify any single factor as controlling, and individual members of the Board did not necessarily attribute the same weight or importance to each factor, nor are the items described herein all-encompassing of the matters considered by the Board. Throughout their review of the Agreements, the Independent Trustees were assisted by their own Independent Trustee legal counsel. The Independent Trustees had formally requested through their legal counsel, and AIML and AIAL had provided, certain information the Independent Trustees considered relevant to their evaluation. The Independent Trustees discussed the information over the course of several different occasions, without representatives of AIML or AIAL present.
Among the information and factors considered by the Board in evaluating the Agreements were the following:
NATURE, QUALITY AND EXTENT OF INVESTMENT MANAGEMENT SERVICES
The Board examined the nature, quality and extent of the services expected to be provided to the Fund by AIML and, subsequently, AIAL.
The Board considered information regarding the overall organization and resources of AIML and AIAL, including information regarding senior management, portfolio managers and other personnel proposed to provide investment management, administrative and other services to the Fund. The Board reviewed AIML and AIAL’s key personnel who would provide investment management services to the Fund, as well as the fact that, under the Agreements, AIML and, subsequently, AIAL, would have the authority and responsibility, subject to the Board’s oversight, to make and execute investment decisions for the Fund within the framework of the Fund’s investment policies and restrictions.
157
ASHMORE FUNDS
ADVISORY AGREEMENT APPROVAL (CONTINUED)
As of October 31, 2014
The Board considered that AIML and AIAL’s duties would include: (i) investment research and selection, (ii) adherence to (and monitoring compliance with) the Fund’s investment policies and restrictions, the 1940 Act and other relevant laws; and (iii) furnishing office space and equipment, providing bookkeeping and clerical services (excluding determination of net asset value and shareholder accounting services) and paying all salaries, fees and expenses of officers and Trustees of the Trust who are affiliated with AIML or AIAL (except to the extent such salaries, fees and expenses are paid by another AIML or AIAL affiliate other than the Trust or the Fund). The Board also evaluated the significant compliance resources available to and expected to be utilized by AIML and AIAL.
The Board concluded that it was satisfied with the nature, extent and quality of services expected to be provided to the Fund by AIML and, subsequently, AIAL, and that there was a reasonable basis on which to conclude that the Fund would benefit from the services provided by AIML and AIAL.
INVESTMENT MANAGEMENT FEES AND COST OF SERVICES
The Board also considered the proposed contractual and expected net investment management fees to be paid by the Fund to AIML and AIAL. In doing so, the Board compared the proposed contractual and expected net investment management fees to those of the Fund’s peers. The Board also considered and took into account AIML’s proposed undertaking (to be assumed by AIAL) to waive fees and/or reimburse expenses so as to otherwise limit the Fund’s ordinary operating expenses until at least February 29, 2016.
The Board reviewed AIML and AIAL’s projected costs and profitability as presented by them in serving as investment adviser to the Fund.
In evaluating the terms of the proposed Agreements, the Board also considered the potential other benefits that may inure to AIML and, subsequently, AIAL as a result of their relationship with the Fund, such as the reputational benefit derived from serving as investment adviser to the Fund.
In light of the information provided and the quality of the services anticipated to be rendered, the Board concluded that the investment management fees to be charged to the Fund were reasonable.
ECONOMIES OF SCALE
The Board noted that the proposed contractual investment management fees for the Fund do not contain breakpoints that would reduce the fee rate on assets above specified levels. In evaluating the Fund’s proposed contractual investment management fees, the Board considered AIML and AIAL’s representation that the proposed contractual investment management fees were intended to reflect achievable economies of scale and also considered AIML and AIAL’s proposal to limit certain expenses of the Fund. In light of the Trust’s current size and the Fund’s expense structure, the Board concluded that breakpoints in the Fund’s contractual investment management fees were not warranted at this time. The Board noted, however, that it intends to monitor the Fund’s asset growth in connection with future reviews of the Fund’s advisory arrangements to determine whether breakpoints may be appropriate at such time.
158
ASHMORE FUNDS
SUPPLEMENTAL TAX INFORMATION (UNAUDITED)
October 31, 2014
CAPITAL GAIN DISTRIBUTION - Pursuant to Section 852 of the Internal Revenue Code, below listed funds designated the following as long term capital gain dividends for the year ended October 31, 2014
| | | | |
Fund | |
| Long-Term Capital Gain
15% |
|
Ashmore Emerging Markets Small Cap Equity Fund | | | 1,247,441 | |
159
ASHMORE FUNDS
FOR MORE INFORMATION
As of October 31, 2014
PORTFOLIO HOLDINGS
The Ashmore Funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s Web site at www.sec.gov. You may also review and obtain copies at the SEC’s Public Reference Room in Washington D.C. Information about the Public Reference Room may be obtained by calling 800-SEC-0330.
PROXY VOTING
Ashmore Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the most recent 12-month period ended June 30 are available upon request and without charge by visiting the Ashmore Funds’ Web site at www.ashmoregroup.com or the SEC’s Web site at www.sec.gov or by calling 866-876-8294.
160
ASHMORE FUNDS
PRIVACY POLICY
We consider customer privacy to be a fundamental aspect of our relationships with shareholders and are committed to maintaining the confidentiality, integrity and security of our current, prospective and former shareholders’ personal information. To ensure our shareholders’ privacy, we have developed policies that are designed to protect this confidentiality, while allowing shareholders’ needs to be served.
Obtaining Personal Information In the course of providing shareholders with products and services, we may obtain non-public personal information about shareholders, which may come from sources such as account applications and other forms, from other written, electronic or verbal correspondence, from shareholder transactions, from a shareholder’s brokerage or financial advisory firm, financial adviser or consultant, and/or from information captured on our internet web sites.
Respecting Your Privacy As a matter of policy, we do not disclose any personal or account information provided by shareholders or gathered by us to non-affiliated third parties, except as required for our everyday business purposes, such as to process transactions or service a shareholder’s account, or as otherwise permitted by law. As is common in the industry, non-affiliated companies may from time to time be used to provide certain services, such as preparing and mailing prospectuses, reports, account statements and other information, and gathering shareholder proxies. We may also retain non-affiliated financial services providers to market our shares or products and we may enter into joint-marketing arrangements with them and other financial companies. We may also retain marketing and research service firms to conduct research on shareholder satisfaction. These companies may have access to a shareholder’s personal and account information, but are permitted to use this information solely to provide the specific service or as otherwise permitted by law. We may also provide a shareholder’s personal and account information to their respective brokerage or financial advisory firm, Custodian, and/or to their financial advisor or consultant.
Sharing Information with Third Parties We reserve the right to disclose or report personal information to non-affiliated third parties where we believe in good faith that disclosure is required under law to cooperate with regulators or law enforcement authorities, to protect our rights or property or upon reasonable request by any investee entity in which a shareholder has chosen to invest. Of course, we may also share your information with your consent.
Sharing Information with Affiliates We may share shareholder information with our affiliates in connection with our affiliates’ everyday business purposes, such as servicing a shareholder’s account, but our affiliates may not use this information to market products and services to you except in conformance with applicable laws or regulations. The information we share includes information about our experiences and transactions with a shareholder and may include, for example, a shareholder’s participation in one of the Funds or in other investment programs, a shareholder’s ownership of certain types of accounts, or other data about a shareholder’s transactions or accounts. Our affiliates, in turn, are not permitted to share shareholder information with non-affiliated entities, except as required or permitted by law.
Procedures to Safeguard Private Information We take seriously the obligation to safeguard shareholder non-public personal information. In addition to this policy, we have also implemented procedures that are designed to restrict access to a shareholder’s non-public personal information only to internal personnel who need to know that information in order to provide products or services to such shareholders. In addition, we have physical, electronic, and procedural safeguards in place to guard a shareholder’s non-public personal information.
Disposal of Confidential Records We will dispose of records, if any, that are knowingly derived from data received from a consumer reporting agency regarding a shareholder that is an individual in a manner that ensures the confidentiality of the data is maintained. Such records include, among other things, copies of consumer reports and notes of conversations with individuals at consumer reporting agencies.
161
ASHMORE FUNDS
OTHER INFORMATION
Administrator, Custodian and Transfer Agent
The Northern Trust Company
50 South LaSalle Street
Chicago, Illinois 60603
312-630-6000
Investment Manager
Ashmore Investment Advisors Limited
61 Aldwych
London WC2B 4AE
United Kingdom
44-20-3077-6000
Subadviser for Ashmore Emerging Markets Equity Fund,
Ashmore Emerging Markets Small-Cap Equity Fund
and Ashmore Emerging Markets Frontier Equity Fund
Ashmore Equities Investment Management (US) L.L.C.
1001 19th Street North, 15th Floor
Arlington, Virginia 22209
703-243-8800
Independent Registered Public Accounting Firm
KPMG LLP
Aon Center
Suite 5500
200 East Randolph Drive
Chicago, Illinois 60601-6436
Distributor
Ashmore Investment Management (US) Corporation
122 East 42nd Street
New York, New York 10168
212-661-0061
Legal Counsel
Ropes & Gray LLP
Prudential Tower
800 Boylston Street
Boston, Massachusetts 02199
617-951-7000
Independent Trustees’ Counsel
Dechert LLP
One International Place
40th Floor
100 Oliver Street
Boston, Massachusetts 02110
617-728-7100
162
ASHMORE FUNDS
TRUSTEES AND OFFICERS
Set forth below is information about the Trustees and Officers of the Ashmore Funds. Each Trustee has served in that capacity since he or she was originally elected or appointed to the Board of Trustees. Each Trustee oversees a total of nine portfolios in the Ashmore Funds. The Ashmore Funds’ Statement of Additional Information contains additional information about the Trustees and is available upon request and without charge by calling 866-876-8294.
INDEPENDENT TRUSTEES
| | | | | | | | | | |
Name, Address* and Age of Independent Trustee | | Positions(s) Held with Trust | | Term of Office and Length of Time Served | | Principal Occupation(s) During Past 5 Years | | Number of Portfolios in Fund Complex Overseen by Trustee | | Other Directorships Held by Trustee During the Past 5 Years |
Yeelong Balladon (Age 56) | | Trustee;
Lead Independent Trustee | | Indefinite term;
Trustee
since inception | | Freshfields Bruckhaus
Deringer (a law firm)
from 1982 to 2009
(Partner from 1999). | | 9 | | Non-executive
director since
August 2010,
Jasper Investments
Limited; Non-
executive director
from May 2010 -
February 2012,
Pacnet Limited(1). |
Michael Chamberlin (Age 65) | | Trustee | | Indefinite
term; Trustee
since 2012 | | Executive Director,
Emerging Markets
Traders Association(2). | | 9 | | None |
Joseph Grainger (Age 60) | | Trustee | | Indefinite
term; Trustee
since 2014 | | Ernst & Young LLP
from 1988 to December
2013 (Partner from
October 1990). | | 9 | | None |
| | * | Each Trustee may be contacted at 61 Aldwych, London WC2B 4AE, United Kingdom. |
| | (1) | Affiliates of the Investment Manager may be deemed to control Jasper Investments Limited and Pacnet Limited. Employees and officers of affiliates of the Investment Manager may serve on the Boards of Jasper Investments Limited and Pacnet Limited. |
| | (2) | Mr. Chamberlin has served as the Executive Director of the Emerging Markets Traders Association (“EMTA”) since 1994. Mark Coombs is Co-Chair of EMTA’s Board of Directors and the Investment Manager is a member of the EMTA. Mr. Coombs is the Investment Manager’s Chief Executive Officer. |
163
ASHMORE FUNDS
TRUSTEES AND OFFICERS (CONTINUED)
| | | | | | | | | | |
Name, Address* and Age of Interested Trustee | | Positions(s) Held with Trust | | Term of Office and Length of Time Served | | Principal Occupation(s) During Past 5 Years | | Number of Portfolios in Fund Complex Overseen by Trustee | | Other Directorships Held by Trustee During the Past 5 Years |
George Grunebaum(3) (Age 51) | | Trustee; Chairman of the Trustees; President and Chief Executive Officer | | Indefinite term; Trustee since inception | | Chief Executive Officer since November 2008, Ashmore Investment Management (US) Corporation; Portfolio Manager from November 2008 to December 2012, Ashmore Investment Management (US) Corporation. | | 9 | | None |
Stephen Hicks(4) (Age 54) | | Trustee | | Indefinite term; Trustee since 2014 | | Group Head of Compliance from June 2010 to January 2014, Ashmore Group plc; Chief Compliance Officer from inception to December 2013, Ashmore Funds; Director of Group Compliance from February 2001 to October 2005 and Chief Compliance Officer from October 2005 to May 2010, 3i Group plc (a private equity firm). | | 9 | | None |
| | * | Each Trustee may be contacted at 61 Aldwych, London WC2B 4AE, United Kingdom. |
| | (3) | Mr. Grunebaum is an “interested person” of the Trust, as defined in Section 2(a)(19) of the 1940 Act, due to, among other things, his positions with the Distributor and its affiliates. Mr. Grunebaum serves as a Trustee of AEIM and serves or has served as a trustee or director of other pooled investment vehicles sponsored by Ashmore Group and its affiliates, including Ashmore Global Emerging Markets Funds, LTD and Ashmore Global Opportunities Limited. |
| | (4) | Mr. Hicks is an “interested person” of the Trust, as defined in Section 2(a)(19) of the 1940 Act, due to his former position with Ashmore Group plc. Ashmore Group indirectly compensates Mr. Hicks, through a separate private company, for his service as a Trustee of the Trust and as a trustee or director of other pooled investment vehicles sponsored by Ashmore Group and its affiliates. |
164
ASHMORE FUNDS
TRUSTEES AND OFFICERS (CONTINUED)
OFFICERS
| | | | | | |
Name, Address** and Age of Officer | | Positions(s) Held with Trust | | Term of Office and Length of Time Served | | Principal Occupation(s) During Past 5 Years |
George Grunebaum (Age 51) | | Trustee, President and Chief Executive Officer | | Indefinite term; since inception | | Chief Executive Officer since November 2008, Ashmore Investment Management (US) Corporation; Portfolio Manager from November 2008 to December 2012, Ashmore Investment Management Limited. |
Michael Perman (Age 57) | | Secretary | | Indefinite term; since inception | | Company Secretary since March 2008, Ashmore Group plc. |
Alexandra Autrey (Age 38) | | Chief Legal Officer | | Indefinite term; since inception | | Global Head of Legal and Transaction Management, Ashmore Group plc, since January 2012; Deputy Head of Legal and Transaction Management, Ashmore Group plc, May 2008—January 2012; Legal Counsel, Ashmore Group plc, May 2005—May 2008. |
Christopher Tsutsui (Age 50) | | Treasurer and Principal Financial and Accounting Officer | | Indefinite term; since inception | | Chief Financial Officer, Ashmore Investment Management (US) Corporation, from November 2008 to June 2012, July 2014 to present. Head of Finance, Ashmore Group pls, from July 2012 – June 2014. |
Brian Walker (Age 46) | | Chief Compliance Officer | | Indefinite term; since December 2013 | | General Counsel and Chief Compliance Officer of Ashmore Equities Investment Management (US) LLC since January 2005; Chief Compliance Officer of Ashmore Investment Management (US) Corporation from July 2012 – September 2014. |
Owen Meacham (Age 43) | | Assistant Secretary | | Indefinite term; since inception | | Managing Attorney since May 2012, Senior Corporate Attorney from October 2007 to May 2012, The Northern Trust Company. |
Paul Robinson (Age 41) | | Assistant Chief Legal Officer | | Indefinite term; since June 2011 | | Group Deputy Head of Legal and Transaction Management since August 2012, and Lawyer since September 2007, Ashmore Group plc. |
| ** | Each Officer may be contacted at 61 Aldwych, London WC2B 4AE, United Kingdom. |
165
Item 2. Code of Ethics.
| (a) | As of October 31, 2014, the registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party (the “Code of Ethics”). |
| (c) | The registrant has not amended its Code of Ethics during the period covered by this report. However, Appendix A to the registrant’s Code of Ethics, which is Code of Ethics of Ashmore Investment Advisor Limited, was amended during the period covered by this report. |
| (d) | The registrant has not granted any waivers, including an implicit waiver, from any provisions of its Code of Ethics during the period covered by this report. |
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees has determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR), serving on its audit committee. Joseph Grainger is the “audit committee financial expert” and is “independent” (as each term is defined in Item 3 of Form N-CSR).
Under applicable securities laws and regulations, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for purposes of Section 11 of the Securities Act of 1933, as amended, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liability that are greater than the duties, obligations, and liability imposed on such person as a member of the registrant’s Audit Committee and Board of Trustees in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations or liability of any other member of the registrant’s Audit Committee or Board of Trustees.
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Item 4. Principal Accountant Fees and Services.
Item 4(a): Audit Fees
The aggregate fees billed for each of the last two fiscal years for professional services rendered by KPMG LLP (“KPMG”), independent registered public accounting firm, for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $226,000 in 2014 and $189,000 in 2013.
Item 4(b): Audit-Related Fees
The aggregate fees billed in each of the last two fiscal years for assurance and related services by KPMG that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are NONE.
Item 4(c): Tax Fees
The aggregate fees billed in each of the last two fiscal years for professional services rendered by KPMG for RIC tax compliance and diversification review and tax return review are $47,280 in 2014 and $41,500 in 2013.
Item 4(d): All Other Fees
The aggregate fees billed in each of the last two fiscal years for products and services provided by KPMG, other than the services reported in paragraphs (a) through (c) of this Item are NONE.
Item 4(e)(1): Pre-Approval Policies and Procedures
Pursuant to the registrant’s Audit Committee Charter adopted on November 17, 2010, the Audit Committee shall, to the extent required by applicable regulations, pre-approve (i) all audit and permitted non-audit services rendered by the independent auditors to a Fund and (ii) all non-audit services rendered by the independent auditors to a Fund’s investment adviser(s) (including any sub-advisers) and to certain of the investment adviser’s affiliates, as applicable. The Audit Committee may implement policies and procedures by which such services are pre-approved other than by the full Committee (for example, by the Committee chair).
Item 4(e)(2): Percentage of Fees Pre-Approved Pursuant to Waiver Provision of Paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X
No percentage of the principal accountant’s fees or services were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Item 4(f): Work Performed by Persons Other than the Principal Accountant
Not applicable.
Item 4(g): Aggregate Non-Audit Fees Disclosure
The aggregate non-audit fees and services billed by KPMG for services rendered to the registrant and service affiliates for the last two fiscal years were $47,280 for 2014 and $41,500 for 2013.
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Item 4(h): Non-Audit Services and Independent Accountant’s Independence
The registrant’s Audit Committee has considered whether the provision of non-audit services to service affiliates, not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the registered public accountant’s independence in performing audit services.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
| (a) | The registrant has elected to include the schedule of investments in securities of unaffiliated issuers as part of the report to shareholders filed under Item 1 of this report on Form N-CSR. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.
Item 11. Controls and Procedures.
| (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 as of a date within 90 days of the filing date of this report. |
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| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
| (a)(1) | Exhibit 99.CODE: Code of Ethics pursuant to Item 2 of Form N-CSR. |
| (a)(2) | Exhibit 99.CERT: Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| (b) | Exhibit 99.906 CERT: Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Ashmore Funds
By /s/ George Grunebaum
George Grunebaum, President and
Chief Executive Officer
(Principal Executive Officer)
Date: January 8, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /s/ George Grunebaum
George Grunebaum, President and
Chief Executive Officer
(Principal Executive Officer)
Date: January 8, 2015
By /s/ Chris Tsutsui
Chris Tsutsui, Treasurer
(Principal Financial and Accounting Officer)
Date: January 8, 2015
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