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, 2016
Item 1. Reports to Stockholders.
ASHMORE FUNDS
ANNUAL FINANCIAL STATEMENTS
October 31, 2016
ASHMORE FUNDS
TABLE OF CONTENTS
* Effective November 8, 2015, the Ashmore Emerging Markets Debt Fund changed its name to the Ashmore Emerging Markets Hard Currency Debt Fund and the Fund made certain related changes to its principal investment strategies. The performance since November 8, 2015 has been achieved using the Fund’s current principal investment strategies. For more information, see Note 1: “Organization.”
** Effective February 29, 2016, the Ashmore Emerging Markets Equity Fund changed its name to the Ashmore Emerging Markets Value Fund. For more information, see Note 1: “Organization.”
Ashmore Investment Management (US) Corporation is the Distributor for the Ashmore Funds.
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 bank deposit 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, 2015 to October 31, 2016
Overview
The reporting period started off poorly with disappointing global growth figures, and speculation that the Federal Reserve was on the verge of hiking interest rates. Despite the poor performance, which continued through January 2016, H1 2016 saw the sharpest risk reversal in global financial markets since 2009.
The key theme in the first half of the period was the expected divergence in central bank policy between the U.S. Federal Reserve, which was expected to hike rates, and all other central banks, which were trying to ease monetary conditions. This created a widespread pull to U.S. dollar (USD). In December 2015, despite paying lip service to weak international economic conditions, the Federal Reserve delivered its first rate hike in nearly a decade. This was completely at odds with other central banks, notably the European Central Bank (ECB) which was pushing its benchmark Euro (EUR) deposit interest rates further into negative territory. The monetary policy divergence led the USD into a stampede that reached its peak in December 2015 and effectively marked the high point for the U.S. dollar Index (DXY Index) in this cycle.
January saw the worst start to the year on record since 2009. Concerns about China and fear of a Chinese yuan (CNY) devaluation fuelled a sharp drop in commodity prices and equities markets as well as a dramatic widening in credit spreads. Oil prices dropped 21% in the first two weeks, falling below USD 30 per barrel which was particularly painful for the U.S. High Yield (HY) market with its heavy exposure to distressed shale oil producers.
As global markets fell, they largely priced out the probability of any U.S. rate hike in 2016. This had a significant impact on currency markets, as the expectation of USD strength on the back of increased policy rates was reversed. As the USD began a slow retreat, markets began to perform quite strongly across asset classes through the balance of the first calendar quarter and into the second quarter in spite of the volatility caused by a number of uncertainties such as softer than expected labour market data in the U.S. in April.
Towards the end of the reporting period, emerging economies started showing tangible signs of improvement in economic conditions after three years of difficult adjustment to challenging external conditions. In many countries a healthy diet of currency re-alignment and tight management of domestic demand have allowed current accounts to stabilise or even improve. The last year has also been marked by a decisive move away from the failed policies of populist leaders and electoral victory for the proponents of more orthodox economic policies, notably in Latin America such as in Argentina or Brazil. Some of the most challenging credits offered the highest returns, such as Venezuela and Ecuador.
The net result for Emerging Markets (EM) fixed income indices over the period was positive; the JP Morgan EMBI Global Diversified index was up 11.7%. The broad corporate bonds index (JP Morgan CEMBI Broad Diversified) was up 9.2%, while the high yield index (JP Morgan CEMBI Broad Diversified Non-IG) outperformed at 13.0%. The reference local currency bond index, the JP Morgan GBI-EM Global Diversified was up 11.0%, and the reference local currency foreign exchange index (JP Morgan ELMI+) was up 2.3%.
Portfolio Overview
Ashmore Emerging Markets Total Return Fund
The Ashmore Emerging Markets Total Return Fund (for purposes of this section, “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 outperformed its benchmark, returning 15.5% versus 9.6% for the composite 50% JPM EMBI Global Diversified, 25% JPM GBI-EM Global Diversified, 25% JPM ELMI+. Local currency was the main contributor to relative performance, while corporate debt was the largest detractor. Among the Fund’s best performing positions were positions in Venezuela, Brazil and Ecuador. Positions in Colombia, Nigeria and Mongolia were the main detractors from performance.
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INVESTMENT MANAGER’S REPORT (CONTINUED)
Venezuela was the largest relative contributor to performance over the period. A stabilizing oil price, and the announcement of a debt swap for Petroleos de Venezuela (PDVSA)’s USD 7bn in 2017 debt, with a sweetened exchange ratio, was welcomed by the market. Prices of the November 2017 bond jumped nearly 16 basis points (bps) during the third quarter, while Venezuela’s 2022 and 2031 issues jumped 14 and 13bps respectively. On the political front, however, the likelihood of regime change through the recall referendum has dropped as the National Electoral Council has altered the procedures and requirements, increasing the probability that President Nicolas Maduro, or his designated successor, will remain in power until the end of the current term.
The overweight position in Brazil was the largest absolute contributor and second largest relative contributor to performance. The security selection added value due to the long duration allocation in local bonds. We believe the better political environment within the parliament under President Michel Temer opens the possibility of landmark structural reforms being approved. Finance Minister Henrique Meirelles worked with his team on a constitutional amendment proposal to be voted on during Q4 that caps increases in government expenditures at 0% in real terms for the next 20 years. If approved, we believe the bill would dramatically improve the country’s indebtedness dynamics in the long term. In our view, the continuous decline of both running inflation and inflation expectations together with the structural fiscal reforms open the door for the central bank to start an easing cycle as the base rate remains at 14.25%.
Nigeria continues to suffer from lower energy prices and disruptions in production due to vandalism. The economy is in recession and inflation has increased to 17% on the back of foreign exchange (FX) weakness. The country has plans to issue a bond prior to year-end; Standard & Poors (S&P) downgrade from B+ to B in mid-September will likely further increase borrowing costs.
Ashmore Emerging Markets Hard Currency Debt Fund
The Ashmore Emerging Markets Hard Currency Debt Fund (for purposes of this section, “the Fund”) (formerly known as the Ashmore Emerging Markets Debt Fund) seeks to achieve its objective by investing principally in debt instruments of, and derivative instruments related to, sovereign, quasi-sovereign and corporate issuers of EM countries. The Fund typically invests at least 50% of its net assets in debt instruments of small cap issuers denominated in hard currencies (i.e., the U.S. dollar or any currency of a nation in the G-7).
Over the period, the Fund’s institutional class outperformed its benchmark, returning 13.1% versus 11.7% for the JP Morgan EMBI Global Diversified index. Among the Fund’s best performing positions were in Venezuela, Ecuador and Brazil. Positions in Colombia, Indonesia and Jamaica were the main detractors.
Venezuela was the largest absolute and relative contributor to performance. A stabilizing oil price and the announcement of a debt swap for Petroleos de Venezuela (PDVSA)’s USD 7bn in 2017 debt, with a sweetened exchange ratio, was welcomed by the market. Prices of the November 2017 bond jumped nearly 16 bps during the third quarter, while Venezuela’s 2022 and 2031 issues jumped 14 and 13 bps respectively. On the political front, however, the likelihood of regime change through the recall referendum has dropped as the National Electoral Council has altered the procedures and requirements, increasing the probability that President Nicolas Maduro, or his designated successor, will remain in power until the end of the current term.
Positions in Ecuador performed well despite the economy still experiencing negative growth. Oil and mining continued to expand, boosting exports while imports continued to decline, leading to a current account surplus. Post-earthquake government spending provided additional support.
Colombia’s rejection of the peace deal with The Revolutionary Armed Forces of Colombia – People’s Army (FARC) hit sentiment for Colombia’s bonds, calling into question the government’s ability to make progress on promised tax reforms that are forecasted to increase revenues by 2% of Gross Domestic Product (GDP). Macro adjustments are underway, with the current account continuing to narrow, but we believe that agreement on tax reform is needed before fiscal stability can be achieved.
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Ashmore Emerging Markets Local Currency Bond Fund
The Ashmore Emerging Markets Local Currency Bond Fund (for purposes of this section, “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 are driven by EM currency appreciation, interest rate positioning and credit worthiness.
EM currencies are not only supported by stronger growth, more robust fundamentals and higher interest rates than developed markets, but we believe it is also likely that a gradual depreciation of developed market currencies will be one mechanism by which developed markets will de-leverage and reduce their enormous debt burdens. In terms of bonds, we continue to find attractive opportunities across EM countries. In our view, 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 outperformed its benchmark, returning 12.7% versus 11.0% for the JP Morgan GBI-EM Global Diversified. The Fund’s top EM contributors for the period were gains from positions in the Brazilian real, Thai baht and Polish zloty. The South African rand, Colombian peso, and Turkish lira were the most significant detractors from performance.
Brazil (both Brazilian real and local bonds) remains one of the strongest idiosyncratic stories in EM in our view. We believe that adjustment in the corporate sector is well under way and reduces vulnerabilities significantly. Structural reforms to the budgetary framework have been approved by the congress in two votes and may be approved by the Senate before year end. The fiscal adjustment together with lower inflation and inflation expectations may clear the way for the central bank to start cutting rates, increasing the attractiveness of both bonds and equities, and in our view this is likely to accelerate portfolio inflows when Foreign Direct Investment (FDI) remains high as companies de-lever their balance sheets.
Ashmore Emerging Markets Corporate Debt Fund
The Ashmore Emerging Markets Corporate Debt Fund (for purposes of this section, “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 (between EM countries as opposed to trade with developed markets) and development of domestic markets have resulted in a material structural change for EM corporates and have helped them to broaden their customer bases. We continue to focus efforts on companies that are less followed by the market and which thus allow us to add maximum value based on our views, research and global EM network capabilities.
Over the period, the Fund’s institutional class outperformed its benchmark, the JP Morgan CEMBI Broad Diversified index, with a return of 13.0% versus 9.2%. The Fund’s top contributors were positions in Venezuela, Ukraine and Brazil, while Colombia, Nigeria and positions in the Czech Republic were the largest detractors from performance.
The off-benchmark position in Venezuela added 1.89% of positive performance relative to the benchmark and was the largest absolute contributor to performance (+2.45%). In addition to a stable oil price, the announcement of a debt swap for Petroleos de Venezuela (PDVSA)’s USD 7bn in 2017 debt, with a sweetened exchange ratio, was welcomed by the market. Prices of the November 2017 bond jumped nearly 16 bps during the quarter, while Venezuela’s 2022 and 2031 issues jumped 14 and 13 bps respectively. On the political front, however, the likelihood of regime change through the recall referendum has dropped as the National Electoral Council has altered the procedures and requirements, increasing the probability that President Nicolas Maduro, or his designated successor, will remain in power until the end of the current term.
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The overweight in Ukraine added 1.85% to relative performance over the reporting period, largely due to positive credit selection within the allocation. Market sentiment was aided by the International Monetary Fund’s (IMF) approval to disburse an additional tranche of c. USD 1bn. While the IMF positively remarked on the progress with stabilising the economy and the rehabilitation of the financial system amongst others, it also saw the need for further improvement, including fiscal (in particular pension) reform, financial markets liberalisation and improved governance. In addition, the continued recovery of commodity prices supports the cash flow generation of select local metals and mining companies.
An overweight to Nigeria detracted 0.60% from relative performance, with this largely attributable to the country’s leading oil & gas company. The country was downgraded by Standard & Poor’s (S&P) to ‘B’ from ‘B+’. Although the rating agency left the outlook stable, it noted that the economy had weakened on the back of lower oil production, a restrictive FX regime and delayed fiscal stimulus. While debt remains low, debt servicing costs as a percentage of general government revenue are elevated and rising.
Czech Republic detracted from relative performance (-0.55%) as the country’s largest coal miner filed for bankruptcy and the company will now most likely be liquidated.
Technicals remain supportive of market performance in the fourth quarter. New issuance in the first half of 2016 has surpassed that of the same period in 2015 but remains well below that of the same period in 2014. The Fund holds USD 158bn in coupons and principal repayments scheduled for 2016 with close to USD 24bn coming due in November alone. We continue to see EM companies present in the market to buy back their bonds. The technical bid for EM debt for the remainder of the year remains strong – at the end of October EM fixed income markets saw about USD 56bn in inflows year-to-date (YTD) (compared to cumulative outflows at the same time last year). International investors are progressively coming back to the asset class and we believe this is simply the overdue normalisation of client positioning in EM, something also strongly underpinned by the extremely low yields in developed markets.
Ashmore Emerging Markets Short Duration Fund
The Ashmore Emerging Markets Short Duration Fund (for purposes of this section, “the Fund”) seeks to achieve its objective by investing principally in short-term debt instruments of, and derivative instruments related to, sovereign, quasi-sovereign and corporate issuers of EM countries denominated exclusively in Hard Currencies (i.e., the U.S. dollar or any currency of a nation in the G-7). The Fund normally seeks to maintain weighted average portfolio duration of between 1 and 3 years. The Fund has no restrictions on individual security duration.
Over the period, the Fund’s institutional class outperformed its benchmark. The Fund’s top contributors for the period were gains from positions in Latin American countries, in particular, Venezuela, Ecuador and Brazil. Underweight positions in Indonesia, Colombia, and India were the largest detractors from performance.
Strong technicals along with the general improvement in market sentiment towards EM continued to benefit Latin American bond prices as this region had suffered the most in the latest downturn. Venezuela was the best performer as news of a proposed investor friendly liability management exercise led to a strong rally in the bonds of Petroleos de Venezuela S.A (PDVSA), the national oil company.
The Fund benefits from significant “pull to par,” as short-maturity instruments trading at a discount rapidly approach par as the maturity date approaches. The environment of spread widening offered many attractive opportunities to acquire quality credits that were adversely impacted in a general “risk off” environment.
Ashmore Emerging Markets Equity Opportunities Fund
The Ashmore Emerging Markets Equity Opportunities Fund (for purposes of this section, “the Fund”) seeks to achieve its investment objective by investing principally in Institutional Class shares of other series of Ashmore Funds that invest principally in equity securities and equity-related investments (the “Underlying Equity Funds”). The Fund has the flexibility to allocate and reallocate its assets among the Underlying Equity Funds or individual securities, derivatives and other investments as the investment manager sees fit based on the factors it deems appropriate in order to pursue the Fund’s investment objective and based on its assessment of then-existing market conditions, its investment outlook and other factors.
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INVESTMENT MANAGER’S REPORT (CONTINUED)
The Fund initially allocated its portfolio approximately in the same proportion among the three existing underlying equity funds: Ashmore Emerging Markets Small-Cap Equity Fund, Ashmore Emerging Markets Frontier Equity Fund and Ashmore Emerging Markets Value Fund. Please refer to the respective commentaries for these Funds for further information on their performance.
Ashmore Emerging Markets Small-Cap Equity Fund
The Ashmore Emerging Markets Small-Cap Equity Fund (for purposes of this section, “the Fund”) seeks to achieve its objective by investing principally in equity securities and equity-related investments of small-capitalisation EM issuers, which may be denominated in any currency, including the local currency of the issuer.
EM small-cap stocks ended the fiscal year on a positive note, gaining 4.8% over the one year period ending October 31, 2016 according to the MSCI EM Small Cap Index. Leading the gains were small caps in Emerging Europe and Latin America, including Russia (+82%), Brazil (+69%), Colombia (+56%) and Chile (+36%). Colombia and Russia in particular staged remarkable recoveries, after having gone through a period of marked market and currency declines. EM Asia small caps lagged, however, especially heavyweights in Korea (-14%) and China (-2%).
The Fund outperformed its benchmark MSCI Emerging Markets Small Cap index by over 600bps, with country allocation adding value while stock selection detracted. In terms of country allocation, our rotation during the period from East Asia broadly into Latin America added significant value, with our overweight in Brazil contributing most together with the overweight in Russia and underweight in South Korea. Country exposures that detracted most included the underweights in South Africa and India.
On a stock basis, weighing most on returns were the holdings in Brazil, Greece, China and Korea, while selections in Taiwan and Russia helped the most. Parts manufacturers Tupy S.A. and Suzano Papel e Celulose (paper and pulp) lost most value in the Brazil holdings – their export related segments were expected to be impacted by the firming in the country’s currency over the period. While we have since sold out of Suzano, we continue to hold Tupy as we believe the underlying business remains well valued. Our sole holding in Greece during the period, Eurobank Ergasias, was impacted by the Brexit vote, although the stock had done well earlier in the year. We have since sold out of the stock as we believe the outlook for European exposed banks is unclear/negative following the Brexit vote.
Among the China holdings, our exposure to Boer Power Holdings and Ju Teng International Holdings detracted most during the period. Boer Power manufactures and supplies high tech electrical components to industry (utilities, hospitals, etc.). Following a delay in the release of results, the company restated its balance sheet by adding back certain off-balance sheet receivables factored with banks, thereby turning from a net cash position (22%) to a gearing of 77%. This hurt investor confidence resulting in a significant sell-down of the company’s shares. However, the receivables are due from end clients that are expected to pay back and the owner-CEO of the company made an interest free loan to the company and fired the CFO to continue with ongoing capital expenditures and regain investor confidence. The firm then sought to hire a CFO from one of the big four accounting firms. The stock remained under pressure as investors awaited any improvements related to changes on the governance and financial controls front. Ju Teng’s H1 2016 earnings missed expectations, citing lower shipments of low-end notebooks and higher expenses related to upgrading its facilities anticipating new product launches, which have since been delayed. At an estimated forward consensus 2017 PE of 4.5x, we believe the stock’s valuation remains cheap and new product ramp ups should be a positive catalyst. Modetour in Korea suffered as operating results came in below consensus, although in our view the top-line growth remains sustainable. We have since trimmed this holding, which, at a forward consensus average 2017 PE of 15x, continues to have reasonable value.
Egis Technology in Taiwan was a bright spot in the portfolio, as was Aeroflot in Russia. Egis Technology’s fingerprint sensor technology was selected by Samsung Electronics for adoption into some of its products. In spite of an almost 68% stock price performance over the period, Egis trades, according to consensus estimates, at a reasonable valuation of 11x 2017 PE and almost 72% 2017 return on equity (ROE). Aeroflot also did well, gaining about 168% over the period, and yet remains among the cheapest airlines trading at a 2017 PE of 4.5x based on consensus estimates according to Bloomberg.
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INVESTMENT MANAGER’S REPORT (CONTINUED)
We reduced our allocation to Taiwan and China, ending the period with an underweight position in both markets. In Taiwan, we reduced our IT exposure, selling out of stocks such as Casetek (casing manufacturer), Primax Electronics (audio/consumer electronic accessories manufacturer), Sercomm Corp (global Internet of things solutions provider), Inotera Memories (DRAM manufacturer) and Merry Electronics (audio/acoustics manufacturer) which were previously top holdings but either had reached our fair value or our underlying investment theses were unlikely to play out as hoped. In China, we reduced the IT, real estate and healthcare exposures, trimming holdings in stocks such as Noah Holdings (wealth management), Ju Teng (casing manufacturer) and Sunac (real estate), and selling out of Fang Holdings (previously known as SouFun Holdings, real estate), iKang Healthcare and West China Cement. We instead increased exposure in consumer discretionary and industrial holdings. In early 2016, we took advantage of low valuations in Brazil and increased the portfolio positioning there. By period end, our top exposures were in industrials, materials, financial and energy stocks.
Relative company valuations continue to guide our exposures in the coverage universe, while the overall small cap universe continues to offer competitive value as well as a more direct play on the domestic economies.
Ashmore Emerging Markets Frontier Equity Fund
The Ashmore Emerging Markets Frontier Equity Fund (for purposes of this section, “the Fund”) seeks to achieve its objective by investing principally in equity securities and equity-related investments of frontier market issuers, which may be denominated in any currency, including the local currency of the issuer.
Frontier Markets, according to the MSCI Frontier Markets Index Net, declined by 3.1% during the one year ended October 31, 2016. Markets such as Nigeria (-36%), Bahrain (-12%), Kuwait (-8%) and Oman (-7%) lost the most ground, although markets such as Morocco (+23%), Lebanon (+22%), Croatia (+19%), Estonia (+19%) and Ukraine (+18%) held up very well. The recovery in investor sentiment regarding EM equities seemed to have bypassed Frontier Markets during the period, as investor flows sought more liquid and higher beta markets within EM.
In Nigeria, investors continue to price in weak oil and policy mistakes that have led to FX scarcity, shortages of goods, and stubbornly high inflation. In late June 2016 the Central Bank finally allowed the currency to devalue, with the local unit falling by about 40% at the time in comparison to USD. Beyond June, the currency was expected to move to a floating exchange rate but there has been very modest liquidity. Mainly as a result of the currency drop, the Nigerian stock market was down for the period under review. The stocks themselves have moved little during the period with some weakening in local currency terms on weaker than hoped for results, but in reality we believe there was little conviction in investors’ expectations given the larger macro uncertainty and the equity market is very much ‘on hold’ for now.
On the other hand, Morocco performed well due, to some extent, to its relative safe-haven status within Africa given the issues in Nigeria. In Frontier Europe, the small market of Croatia was the best performing, especially during Q3 2016, driven by the telecom incumbent delivering surprisingly strong earnings growth for H1 2016 after struggling for a number of years.
The fund outperformed its benchmark MSCI Emerging Markets Small Cap Index by over 660bps (net of fees) with both country allocation and stock selection adding value. Contributing most overall were our exposures in Nigeria, Pakistan, Argentina and Peru, while our lack of exposure in Morocco and modest holdings in Kenya detracted most.
We have held a less than index weight in Nigeria for the period which has helped the portfolio as currency devaluation affected USD return. Our overweight in Pakistan also contributed, especially our holdings in Pakistan Oilfields, DG Khan Cement, Maple Leaf Cement and K-Electric Limited. Strong stock selection was also evident in our Argentine exposures. There was strong performance from the Fund’s exposure to two off-index holdings in banking and utilities, one a turn-around story after a capital injection (made possible under the new political regime) and the other a beneficiary of the higher electricity tariffs. We hold Credicorp in Peru which also added value.
We do not have any holdings in Morocco, hurting relative performance. The market outperformed as a safe haven and one of the bellwether real estate businesses in that market rallied on progress made in its balance sheet restructuring plan. The political and economic outlook there is indeed more stable than elsewhere in the region so it is understandable to some extent. However, we do not see enough value for long term investment at this stage.
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INVESTMENT MANAGER’S REPORT (CONTINUED)
Our positive outlook for Frontier Market equities is driven by faster than average economic growth, strong demographics and multiple opportunities for structural change, with low hanging fruit in governance, regulation and policy reform. Typically coming from a low base, these various structural improvements, if implemented, can be conducive to economic and institutional development in which high quality management teams can invest and grow, leading to higher returns and equity valuations. That said, progress in the Frontier Markets is neither uniform nor unidirectional but, as with the EM countries of 30 years ago, they do at least have a path to follow. In addition, the current absolute and relative valuations in the Frontier Market universe lend further weight to our positive outlook on the asset class.
Ashmore Emerging Markets Value Fund
The Ashmore Emerging Markets Value Fund (for purposes of this section, “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.
EM equities staged a comeback during the fiscal year ending October 31, 2016, rising 9.27% (MSCI Emerging Markets index net). While the first four months of the period were marked with declines, for most of the rest of the period, EM equities saw steady positive returns, in spite of global macro events such as the United Kingdom’s withdrawal from the European Union (Brexit) in June, the attempted coup in Turkey in July or the culmination of the presidential impeachment process in Brazil in August.
The Fund significantly outperformed its benchmark (the MSCI Emerging Markets index) over the period by over 650bps (net of fees). Country allocation and stock selection almost equally contributed to the performance. With regards to our country decisions, the overweights in Brazil and Peru, and underweight in South Africa contributed most to performance. Exposures in Greece and Argentina, and the overweight in Mexico detracted.
Stock selection added value in Russia, Mexico and South Korea, although this was partially offset by the lack of contribution by holdings in China, South Africa and Indonesia. In Russia, Aeroflot contributed the most. With margins expanding and the company gaining market share following the Transaero merger, we continue to hold on to Aeroflot, as we believe valuations are still reasonable despite its good performance so far. X5 Retail Group and Sberbank also added value. Cemex (construction materials) and Ternium (steel producer) contributed the most to the Mexican portfolio. While we are underweight in terms of country allocation, our exposures in South Korea proved helpful to the portfolio, including Hana Financial (banks), Hynix Semiconductor (IT) and Lotte Chemicals, which has since been sold out of the portfolio. On a stock basis, detracting most was Ju Teng International Holdings in China. Ju Teng missed H1 2016 earnings expectations, citing lower shipments of low-end note-books and higher expenses related to upgrading its facilities in anticipation of new product launches, which have since been delayed. At an estimated consensus 2017E price to earnings ratio (PE) of 4.5x, we believe the stock’s valuation remains cheap and new product ramp ups may be a positive catalyst.
We reduced the Fund’s active exposure in China going from an overweight at the beginning of the period to an underweight by period end, selling out of top exposures such as Shimao Property, China Railway Construction Limited and China National Building Material Group Corporation. We believe that any further infrastructure stimulus will be channelled towards clean energy, healthcare and related industries, rather than public works, thus impacting companies with such exposure. We also reduced active exposure in Taiwan, and similarly moved from an overweight to an underweight by period end. Here we sold out of top holdings such as Catcher Technology, Inotera Memories and Casetek. We instead took advantage of improving dynamics in certain Latin American countries to add exposure, particularly in Brazil and Argentina. In Brazil, we increased holdings in the materials, industrials and energy sectors, while lifting exposure to financials in Argentina.
Looking ahead, revisions to 2017 earnings expectations for EM equities are generally flat, according to JPM research. Earnings growth for MSCI Emerging Markets and MSCI Emerging Markets Small Cap indices are estimated at 14% and 20%, respectively, according to Bloomberg estimates. Overall, valuations (in terms of forward consensus 2017 price-earnings ratio (PE)) seem to be cheapest in markets such as Russia (7.0x), Turkey (8.4x), Korea (9.9x) and Egypt (10.0x), while markets such as Philippines (18.1x), Mexico (17.9x), India (17.8x) and Indonesia (16.8x) are among the most expensive in the MSCI Emerging Markets index universe.
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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 bank deposit 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, 2016 or the inception date (if later), through October 31, 2016.
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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UNAUDITED FUND SUMMARY Ashmore Emerging Markets Total Return Fund The Ashmore Emerging Markets Total Return Fund is an open-end U.S. mutual fund. The Fund seeks to achieve its objective by investing principally in debt instruments of sovereign, quasi-sovereign, and corporate issuers of Emerging Market countries, 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. Please refer to page 8 herein for an explanation of the information presented below in the Average Annual Total Return Table and Cumulative Return Chart. Average Annual Total Return For The Period Ended Oct 31, 2016 6 Months 1 Year 5 Year1 Since incpt1 Institutional Class1 8.21% 15.49% 3.30% 2.98% Retail Class A (load-waived)1 8.00% 15.15% 3.02% 2.72% Retail Class A (unadjusted)1,2 3.69% 10.55% 2.19% 2.01% Retail Class C (load-waived)1 7.59% 14.32% 2.27% 1.96% Retail Class C (unadjusted)1,2 6.60% 13.32% 2.27% 1.96% 50/25/25 Composite Benchmark3 3.55% 9.63% 2.56% 2.95% Cumulative Returns Through October 31, 2016 (% of NAV) Top 5 country exposures (% of NAV) Brazil 11.3% Venezuela 8.2% Russia 7.1% Mexico 6.4% South Africa 5.9% Source: based on Ashmore. aggregate Top allocation 5 country to investment exposure instruments The above excludes related tocash countries and equivalents shown above. as well transactions. as G-7 countries Data as of and October certain31, hedge 2016. related Share class information INSTITUTIONAL CLASS Launch date: December 8, 2010 Minimum initial investment: $1,000,000 ISIN: US0448204059 CUSIP: 044820405 BLOOMBERG: EMKIX US TICKER: EMKIX RETAIL CLASS A Launch date: May 12, 2011 Minimum initial investment: $1,000 ISIN: US0448208357 CUSIP: 044820835 BLOOMBERG: EMKAX US TICKER: EMKAX RETAIL CLASS C Launch date: May 12, 2011 Minimum initial investment: $1,000 ISIN: US0448208274 CUSIP: 044820827 BLOOMBERG: EMKCX US TICKER: EMKCX All sources are Ashmore unless otherwise indicated. The above cumulative returns graph assumes $1,000,000 invested at the beginning of the first full month following the inception of the Institutional Class. The minimum initial investment amount for Institutional Class Shares is $1,000,000. The minimum initial investment amount for Retail Shares Classes A and C is $1,000. All Fund returns are net of fees and expenses, except for the load-waived return information for Class A and Class C shares. Performance calculations assume that all dividend, capital gain and other distributions were reinvested. The graph does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. 1 For periods prior to the inception date of the Class A and Class C shares (05/12/2011), performance information shown is based on the performance of the Fund’s Institutional Class shares (12/08/2010), adjusted to reflect the distribution and/or service fees and other expenses paid by the Class A and Class C shares, respectively. 2 Unadjusted Performance accounts for a maximum sales load of 4% for Class A shares and maximum deferred sales charge of 1% for the 6 months and 1 year returns for the Class C shares. 3.The index for the Fund is 50% JP Morgan Emerging Markets Bond Index Global Diversified, 25% JP Morgan Emerging Local Markets Index Plus, and 25% JPMorgan Global Bond Index-Emerging Markets Global Diversified. Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call 1-855-274-6673. Periods greater than one year are annualized. Changes in rates of exchange between currencies may cause the value of investments to decrease or increase. The Fund’s performance will fluctuate over long and short term periods. Please refer to page 9 herein for an explanation of the Expense Example information presented below. Expense example Actual performance Hypothetical performance Institutional Class Class A Class C Institutional Class Class A Class C Beginning Account Value (5/1/2016) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 Ending Account Value (10/31/2016) $1,082.10 $1,080.00 $1,075.90 $1,020.01 $1,018.75 $1,014.93 Expense Ratio 1.02% 1.27% 2.03% 1.02% 1.27% 2.03% Expenses Paid* $5.34 $6.64 $10.59 $5.18 $6.44 $10.28 *Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Hypothetical expenses are based on the Fund’s actual annualized expense ratios and assumed rate of 5 percent per year before expenses. 10
UNAUDITED FUND SUMMARY Ashmore Emerging Markets Hard Currency Debt Fund* Ashmore Emerging Markets Hard Currency Debt Fund is an open-end U.S. mutual 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 issuers of Emerging Market countries, that are denominated in hard currencies (i.e. the U.S. dollar or any currency of a nation in the G-7). *Formerly, Ashmore Emerging Markets Debt Fund. The name of the Fund changed effective November 8, 2015. Please refer to page 8 herein for an explanation of the information presented below in the Average Annual Total Return Table and Cumulative Return Chart. Average Annual Total Return For The Period Ended Oct 31, 2016 6 Months 1 Year 5 Year1 Since incpt1 Institutional Class1 7.83% 13.06% 6.14% 5.91% Retail Class A (load-waived)1 7.53% 13.41% 6.09% 5.81% Retail Class A (unadjusted)1,2 3.23% 8.87% 5.23% 5.08% Retail Class C (load-waived)1 7.30% 13.53% 5.38% 5.08% Retail Class C (unadjusted)1,2 6.30% 12.53% 5.38% 5.08% JP Morgan EMBI GD3 6.03% 11.70% 6.56% 6.62% Cumulative Returns Through October 31, 2016 (% of NAV) Top 5 country exposures (% of NAV) Venezuela 12.5% Kazakhstan 6.3% Brazil 4.6% Dominican Republic 4.4% Mexico 4.1% Source: based on Ashmore. aggregate Top allocation 5 country to investment exposure instruments The above excludes related tocash countries and equivalents shown above. as well transactions. as G-7 countries Data as of and October certain31, hedge 2016. related Share class information INSTITUTIONAL CLASS Launch date: December 8, 2010 Minimum initial investment: $1,000,000 ISIN: US0448203069 CUSIP: 044820306 BLOOMBERG: ESDIX US TICKER: ESDIX RETAIL CLASS A Launch date: May 12, 2011 Minimum initial investment: $1,000 ISIN: US0448208506 CUSIP: 044820850 BLOOMBERG: ESDAX US TICKER: ESDAX RETAIL CLASS C Launch date: May 12, 2011 Minimum initial investment: $1,000 ISIN: US0448208431 CUSIP: 044820843 BLOOMBERG: ESDCX US TICKER: ESDCX All sources are Ashmore unless otherwise indicated. The above cumulative returns graph assumes $1,000,000 invested at the beginning of the first full month following the inception of the Institutional Class. The minimum initial investment amount for Institutional Class Shares is $1,000,000. The minimum initial investment amount for Retail Shares Classes A and C is $1,000. All Fund returns are net of fees and expenses, except for the load-waived return information for Class A and Class C shares. Performance calculations assume that all dividend, capital gain and other distributions were reinvested. The graph does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. 1 For periods prior to the inception date of the Class A and Class C shares (05/12/2011), performance information shown is based on the performance of the Fund’s Institutional Class shares (12/08/2010), adjusted to reflect the distribution and/or service fees and other expenses paid by the Class A and Class C shares, respectively. 2 Unadjusted Performance accounts for a maximum sales load of 4% for Class A shares and maximum deferred sales charge of 1% for the 6 months and 1 year returns for the Class C shares. 3. The index for the Fund is the JP Morgan Emerging Markets Bond Index Global Diversified. Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call 1-855-274-6673. Periods greater than one year are annualized. Changes in rates of exchange between currencies may cause the value of investments to decrease or increase. The Fund’s performance will fluctuate over long and short term periods. Please refer to page 9 herein for an explanation of the Expense Example information presented below. Expense example Actual performance Hypothetical performance Institutional Class Class A Class C Institutional Class Class A Class C Beginning Account Value (5/1/2016) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 Ending Account Value (10/31/2016) $1,078.30 $1,075.30 $1,073.00 $1,020.51 $1,019.25 $1,015.48 Expense Ratio 0.92% 1.17% 1.92% 0.92% 1.17% 1.92% Expenses Paid** $4.81 $6.10 $10.00 $4.67 $5.94 $9.73 **Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Hypothetical expenses are based on the Fund’s actual annualized expense ratios and assumed rate of 5 percent per year before expenses. 11
UNAUDITED FUND SUMMARY Ashmore Emerging Markets Local Currency Bond Fund Ashmore Emerging Markets Local Currency Bond Fund is an open-end U.S. mutual fund. The Fund seeks to achieve its objective by investing principally in debt instruments of sovereign and quasi-sovereign issuers of Emerging Market countries that are denominated in the local currency of the issuer. Please refer to page 8 herein for an explanation of the information presented below in the Average Annual Total Return Table and Cumulative Return Chart. Average Annual Total Return For The Period Ended Oct 31, 2016 6 Months 1 Year 5 Year1 Since incpt1 Institutional Class1 2.41% 12.69% -1.41% -0.64% Retail Class A (load-waived)1 2.28% 12.37% -1.68% -0.90% Retail Class A (unadjusted)1,2 -1.81% 7.88% -2.48% -1.58% Retail Class C (load-waived)1 1.89% 11.75% -2.41% -1.65% Retail Class C (unadjusted)1,2 0.89% 10.75% -2.41% -1.65% JP Morgan GBI-EM GD3 1.94% 11.04% -1.19% -0.19% Cumulative Returns Through October 31, 2016 (% of NAV) Top 5 country exposures (% of NAV) Brazil 12.1% South Africa 11.1% Indonesia 11.0% Poland 10.0% Malaysia 9.3% Source: based on Ashmore. aggregate Top allocation 5 country to investment exposure instruments The above excludes related tocash countries and equivalents shown above. as well transactions. as G-7 countries Data as of and October certain31, hedge 2016. related Share class information INSTITUTIONAL CLASS Launch date: December 8, 2010 Minimum initial investment: $1,000,000 ISIN: US0448202079 CUSIP: 044820207 BLOOMBERG: ELBIX US TICKER: ELBIX RETAIL CLASS A Launch date: May 12, 2011 Minimum initial investment: $1,000 ISIN: US0448208761 CUSIP: 044820876 BLOOMBERG: ELBAX US TICKER: ELBAX RETAIL CLASS C Launch date: May 12, 2011 Minimum initial investment: $1,000 ISIN: US0448208688 CUSIP: 044820868 BLOOMBERG: ELBCX US TICKER: ELBCX All sources are Ashmore unless otherwise indicated. The above cumulative returns graph assumes $1,000,000 invested at the beginning of the first full month following the inception of the Institutional Class. The minimum initial investment amount for Institutional Class Shares is $1,000,000. The minimum initial investment amount for Retail Shares Classes A and C is $1,000. All Fund returns are net of fees and expenses, except for the load-waived return information for Class A and Class C shares. Performance calculations assume that all dividend, capital gain and other distributions were reinvested. The graph does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. 1For periods prior to the inception date of the Class A and Class C shares (05/12/2011), performance information shown is based on the performance of the Fund’s Institutional Class shares (12/08/2010), adjusted to reflect the distribution and/or service fees and other expenses paid by the Class A and Class C shares, respectively. 2Unadjusted Performance accounts for a maximum sales load of 4% for Class A shares and maximum deferred sales charge of 1% for the 6 months and 1 year returns for the Class C shares. 3The index for the Fund is the JP Morgan Global Bond Index——Emerging Markets Global Diversified. Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call 1-855-274-6673. Periods greater than one year are annualized. Changes in rates of exchange between currencies may cause the value of investments to decrease or increase. The Fund’s performance will fluctuate over long and short term periods. Please refer to page 9 herein for an explanation of the Expense Example information presented below. Expense example Actual performance Hypothetical performance Institutional Class Class A Class C Institutional Class Class A Class C Beginning Account Value (5/1/2016) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 Ending Account Value (10/31/2016) $1,024.10 $1,022.80 $1,018.90 $1,020.26 $1,019.00 $1,015.23 Expense Ratio 0.97% 1.22% 1.97% 0.97% 1.22% 1.97% Expenses Paid* $4.94 $6.20 $10.00 $4.93 $6.19 $9.98 *Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Hypothetical expenses are based on the Fund’s actual annualized expense ratios and assumed rate of 5 percent per year before expenses. 12
UNAUDITED FUND SUMMARY Ashmore Emerging Markets Corporate Debt Fund Ashmore Emerging Markets Corporate Debt Fund is an open-end U.S. mutual fund. The Fund seeks to achieve its objective by investing principally in debt instruments of Emerging Market corporate issuers, which may be denominated in any currency, including the local currency of the issuer. Please refer to page 8 herein for an explanation of the information presented below in the Average Annual Total Return Table and Cumulative Return Chart. Average Annual Total Return For The Period Ended Oct 31, 2016 6 Months 1 Year 5 Year1 Since incpt1 Institutional Class1 12.30% 13.02% 5.46% 4.66% Retail Class A (load-waived)1 12.22% 12.92% 5.19% 4.41% Retail Class A (unadjusted)1,2 7.75% 8.40% 4.34% 3.69% Retail Class C (load-waived)1 11.71% 11.99% 4.40% 3.62% Retail Class C (unadjusted)1,2 10.72% 10.99% 4.40% 3.62% JP Morgan CEMBI BD3 5.13% 9.17% 6.04% 5.67% Cumulative Returns Through October 31, 2016 (% of NAV) Top 5 country exposures (% of NAV) Brazil 16.1% Russia 9.0% Kazakhstan 8.2% United Arab Emirates 8.0% Ukraine 7.7% Source: based on Ashmore. aggregate Top allocation 5 country to investment exposure instruments The above excludes related tocash countries and equivalents shown above. as well transactions. as G-7 countries Data as of and October certain31, hedge 2016. related Share class information INSTITUTIONAL CLASS Launch date: December 8, 2010 Minimum initial investment: $1,000,000 ISIN: US044825049 CUSIP: 044820504 BLOOMBERG: EMCIX US TICKER: EMCIX RETAIL CLASS A Launch date: May 12, 2011 Minimum initial investment: $1,000 ISIN: US0448206039 CUSIP: 044820603 BLOOMBERG: ECDAX US TICKER: ECDAX RETAIL CLASS C Launch date: May 12, 2011 Minimum initial investment: $1,000 ISIN: US0448207029 CUSIP: 044820702 BLOOMBERG: ECDCX US TICKER: ECDCX All sources are Ashmore unless otherwise indicated. The above cumulative returns graph assumes $1,000,000 invested at the beginning of the first full month following the inception of the Institutional Class. The minimum initial investment amount for Institutional Class Shares is $1,000,000. The minimum initial investment amount for Retail Shares Classes A and C is $1,000. All Fund returns are net of fees and expenses, except for the load-waived return information for Class A and Class C shares. Performance calculations assume that all dividend, capital gain and other distributions were reinvested. The graph does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. 1For periods prior to the inception date of the Class A and Class C shares (05/12/2011), performance information shown is based on the performance of the Fund’s Institutional Class shares (12/08/2010), adjusted to reflect the distribution and/or service fees and other expenses paid by the Class A and Class C shares, respectively. 2Unadjusted Performance accounts for a maximum sales load of 4% for Class A shares and maximum deferred sales charge of 1% for the 6 months and 1 year returns for the Class C shares. 3The index for the Fund is the JP Morgan Corporate Emerging Markets Bond Index Broad Diversified. Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call 1-855-274-6673. Periods greater than one year are annualized. Changes in rates of exchange between currencies may cause the value of investments to decrease or increase. The Fund’s performance will fluctuate over long and short term periods. Please refer to page 9 herein for an explanation of the Expense Example information presented below. Expense example Actual performance Hypothetical performance Institutional Class Class A Class C Institutional Class Class A Class C Beginning Account Value (5/1/2016) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 Ending Account Value (10/31/2016) $1,123.00 $1,122.20 $1,117.10 $1,019.25 $1,018.00 $1,014.23 Expense Ratio 1.17% 1.42% 2.17% 1.17% 1.42% 2.17% Expenses Paid* $6.24 $7.57 $11.55 $5.94 $7.20 $10.99 *Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Hypothetical expenses are based on the Fund’s actual annualized expense ratios and assumed rate of 5 percent per year before expenses. 13
UNAUDITED FUND SUMMARY Ashmore Emerging Markets Short Duration Fund Ashmore Emerging Markets Short Duration Fund is an open-end U.S. mutual fund. The Fund seeks to achieve its objective by investing principally in short-term debt instruments of, and derivative instruments related to, sovereign, quasi-sovereign and corporate issuers of Emerging Markets countries denominated exclusively in hard currencies (i.e., the U.S. dollar or any currency of a nation in the G-7). The Fund normally seeks to maintain a weighted average portfolio duration of between 1 and 3 years. The Fund has no restrictions on individual security duration. Please refer to page 8 herein for an explanation of the information presented below in the Average Annual Total Return Table and Cumulative Return Chart. Average Annual Total Return For The Period Ended Oct 31, 2016 6 Months 1 Year Since incpt1 Institutional Class 11.88% 20.18% 9.50% Retail Class A (load-waived)1 11.74% 19.82% 9.21% Retail Class A (unadjusted)1,2 7.28% 15.02% 7.34% JP Morgan CEMBI BD 1-3 Year3 3.23% 5.57% 3.50% Cumulative Returns Through October 31, 2016 (% of NAV) Top 5 country exposures (% of NAV) Brazil 21.1% Russia 14.0% Ecuador 11.6% Kazakhstan 9.7% Venezuela 9.1% Source: based on Ashmore. aggregate Top allocation 5 country to investment exposure instruments The above excludes related tocash countries and equivalents shown above. as well transactions. as G-7 countries Data as of and October certain31, hedge 2016. related Share class information INSTITUTIONAL CLASS Launch date: June 24, 2014 Minimum initial investment: $1,000,000 ISIN: US0448206948 CUSIP: 044820694 BLOOMBERG: ESFIX US TICKER: ESFIX RETAIL CLASS A Launch date: September 23, 2014 Minimum initial investment: $1,000 ISIN: US0448207284 CUSIP: 044820728 BLOOMBERG: ESFAX US TICKER: ESFAX All sources are Ashmore unless otherwise indicated. The above cumulative returns graph assumes $1,000,000 invested at the beginning of the first full month following the inception of the Institutional Class. The minimum initial investment amount for Institutional Class Shares is $1,000,000. The minimum initial investment amount for Retail Shares Class A is $1,000. All Fund returns are net of fees and expenses, except for the load-waived return information for Class A shares. Performance calculations assume that all dividend, capital gain and other distributions were reinvested. The graph does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. 1.For periods prior to the inception date of the Class A (09/23/2014), performance information shown is based on the performance of the Fund’s Institutional Class shares (06/24/2014), adjusted to reflect the distribution and/or service fees and other expenses paid by the Class A shares. 2 Unadjusted Performance accounts for a maximum sales load of 4.00% for Class A shares. 3 The index for the Fund is the JP Morgan Corporate Emerging Markets Bond Index Broad Diversified 1-3 Year Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call 1-855-274-6673. Periods greater than one year are annualized. Changes in rates of exchange between currencies may cause the value of investments to decrease or increase. The Fund’s performance will fluctuate over long and short term periods. Please refer to page 9 herein for an explanation of the Expense Example information presented below. Expense example Actual performance Hypothetical performance Institutional Class Class A Institutional Class Class A Beginning Account Value (5/1/2016) $1,000.00 $1,000.00 $1,000.00 $1,000.00 Ending Account Value (10/31/2016) $1,118.80 $1,117.43 $1,021.77 $1,020.46 Expense Ratio 0.67% 0.93% 0.67% 0.93% Expenses Paid* $3.57 $4.95 $3.40 $4.72 *Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Hypothetical expenses are based on the Fund’s actual annualized expense ratios and assumed rate of 5 percent per year before expenses. 14
UNAUDITED FUND SUMMARY Ashmore Emerging Markets Equity Opportunities Fund Ashmore Emerging Markets Equity Opportunities Fund is an open-end U.S. mutual fund. The Fund seeks to achieve its investment objective by investing principally in Institutional Class shares of other series of Ashmore Funds that invest principally in equity securities and equity-related investments (the “Underlying Equity Funds”). Please refer to page 8 herein for an explanation of the information presented below in the Average Annual Total Return Table and Cumulative Return Chart. Average Annual Total Return For The Period Ended Oct 31, 2016 6 Months Since incpt1 Institutional Class 8.97% 8.94% Retail Class A (load-waived) 8.87% 8.69% Retail Class A (unadjusted)1 3.15% 2.98% Retail Class C (load-waived) 8.47% 7.94% Retail Class C (unadjusted)1 7.47% 6.94% MSCI EM NET2 9.41% 9.79% Cumulative Returns Through October 31, 2016 (% of NAV) Top 5 country exposures (% of NAV) China 18.4% Brazil 11.1% Taiwan 8.9% Argentina 8.6% South Korea 8.1% Source: based on Ashmore. aggregate Top allocation 5 country to investment exposure instruments The above excludes related tocash countries and equivalents shown above. as well transactions. as G-7 countries Data as of and October certain31, hedge 2016. related Share class information INSTITUTIONAL CLASS Launch date: November 23, 2015 Minimum initial investment: $1,000,000 ISIN: US0448206609 CUSIP: 044820660 BLOOMBERG: AEOIX US TICKER: AEOIX RETAIL CLASS A Launch date: November 23, 2015 Minimum initial investment: $1,000 ISIN: US0448206864 CUSIP: 044820686 BLOOMBERG: AEOAX US TICKER: AEOAX RETAIL CLASS C Launch date: November 23, 2015 Minimum initial investment: $1,000 ISIN: US0448206781 CUSIP: 044820678 BLOOMBERG: AEOCX US TICKER: AEOCX All sources are Ashmore unless otherwise indicated. The above cumulative returns graph assumes $1,000,000 invested at the beginning of the first full month following the inception of the Institutional Class. The minimum initial investment amount for Institutional Class Shares is $1,000,000. All Fund returns are net of fees and expenses. Performance calculations assume that all dividend, capital gain and other distributions were reinvested. The graph does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. 1 Unadjusted Performance accounts for a maximum sales load of 5.25% for Class A shares and maximum deferred sales charge of 1% for the 6 months and 1 year returns for the Class C shares. 2The index for the Fund is the Morgan Stanley Capital Index Emerging Markets Net. Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call 1-855-274-6673. Periods greater than one year are annualized. Changes in rates of exchange between currencies may cause the value of investments to decrease or increase. The Fund’s performance will fluctuate over long and short term periods. Please refer to page 9 herein for an explanation of the Expense Example information presented below. Expense example Actual performance Hypothetical performance Institutional Class Class A Class C Institutional Class Class A Class C Beginning Account Value (5/1/2016) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 Ending Account Value (10/31/2016) $1,089.70 $1,088.70 $1,084.70 $1,024.89 $1,023.63 $1,019.86 Expense Ratio 0.05% 0.30% 1.05% 0.05% 0.30% 1.05% Expenses Paid* $0.26 $1.58 $5.50 $0.25 $1.53 $5.33 *Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Hypothetical expenses are based on the Fund’s actual annualized expense ratios and assumed rate of 5 percent per year before expenses. Underlying fund fees are excluded from these rates and amounts. 15
UNAUDITED FUND SUMMARY Ashmore Emerging Markets Small-Cap Equity Fund Ashmore Emerging Markets Small-Cap Equity Fund is an open-end U.S. mutual fund. The Fund seeks to achieve its objective by investing principally in equity securities and equity-related investments of Small-Capitalization Emerging Market issuers, which may be denominated in any currency, including the local currency of the issuer. The Fund currently defines a Small-Capitalization issuer as an issuer with a market capitalization of $2 billion or less at the time of initial investment and $3 billion or less at the time of a subsequent investment in the same issuer. Please refer to page 8 herein for an explanation of the information presented below in the Average Annual Total Return Table and Cumulative Return Chart. Average Annual Total Return For The Period Ended Oct 31, 2016 6 Months 1 Year 5 Year1 Since incpt1 Institutional Class1 9.83% 11.21% 2.63% 5.60% Retail Class A (load-waived)1 9.68% 10.84% 2.28% 5.24% Retail Class A (unadjusted)1,2 3.92% 5.02% 1.19% 4.13% Retail Class C (load-waived)1 9.27% 10.01% 1.54% 4.47% Retail Class C (unadjusted)1,2 8.26% 9.01% 1.54% 4.47% MSCI EM Small Cap NET3 4.86% 4.78% 2.48% 4.92% Cumulative Returns Through October 31, 2016 (% of NAV) Top 5 country exposures (% of NAV) China 22.5% Brazil 14.7% Taiwan 13.6% Argentina 8.6% India 7.1% Source: based on Ashmore. aggregate Top allocation 5 country to investment exposure instruments The above excludes related tocash countries and equivalents shown above. as well transactions. as G-7 countries Data as of and October certain31, hedge 2016. related Share class information INSTITUTIONAL CLASS Launch date: October 4, 2011 Minimum initial investment: $1,000,000 ISIN: US0448201162 CUSIP: 044820116 BLOOMBERG: ESCIX US TICKER: ESCIX RETAIL CLASS A Launch date: February 1, 2012 Minimum initial investment: $1,000 ISIN: US0448207938 CUSIP: 044820793 BLOOMBERG: ESSAX US TICKER: ESSAX RETAIL CLASS C Launch date: August 24, 2012 Minimum initial investment: $1,000 ISIN: US0448207854 CUSIP: 044820785 BLOOMBERG: ESSCX US TICKER: ESSCX All sources are Ashmore unless otherwise indicated. The above cumulative returns graph assumes $1,000,000 invested at the beginning of the first full month following the inception of the Institutional Class. The minimum initial investment amount for Institutional Class Shares is $1,000,000. The minimum initial investment amount for Retail Shares Classes A and C is $1,000. All Fund returns are net of fees and expenses, except for the load-waived return information for Class A and Class C shares. Performance calculations assume that all dividend, capital gain and other distributions were reinvested. The graph does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. 1 For periods prior to the inception date of the Class A (02/01/2012) and Class C shares (08/24/2012), performance information shown is based on the performance of the Fund’s Institutional Class shares (10/04/2011), adjusted to reflect the distribution and/or service fees and other expenses paid by the Class A and Class C shares, respectively. 2 Unadjusted Performance accounts for a maximum sales load of 5.25% for Class A shares and maximum deferred sales charge of 1% for the 6 months and 1 year returns for the Class C shares. 3 The index for the Fund is the Morgan Stanley Capital Index Emerging Markets Small-Cap Net. Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call 1-855-274-6673. Periods greater than one year are annualized. Changes in rates of exchange between currencies may cause the value of investments to decrease or increase. The Fund’s performance will fluctuate over long and short term periods. Please refer to page 9 herein for an explanation of the Expense Example information presented below. Expense example Actual performance Hypothetical performance Institutional Class Class A Class C Institutional Class Class A Class C Beginning Account Value (5/1/2016) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 Ending Account Value (10/31/2016) $1,098.30 $1,096.80 $1,092.70 $1,017.50 $1,016.24 $1,012.47 Expense Ratio 1.52% 1.77% 2.52% 1.52% 1.77% 2.52% Expenses Paid* $8.02 $9.33 $13.26 $7.71 $8.97 $12.75 *Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Hypothetical expenses are based on the Fund’s actual annualized expense ratios and assumed rate of 5 percent per year before expenses. 16
UNAUDITED FUND SUMMARY Ashmore Emerging Markets Frontier Equity Fund Ashmore Emerging Markets Frontier Equity Fund is an open-end U.S. mutual fund. The Fund seeks to achieve its objective by investing principally in equity securities and equity-related investments of Frontier Market issuers, which may be denominated in any currency, including the local currency of the issuer. Please refer to page 8 herein for an explanation of the information presented below in the Average Annual Total Return Table and Cumulative Return Chart. Average Annual Total Return For The Period Ended Oct 31, 2016 6 Months 1 Year Since incpt1 Institutional Class 5.58% 3.58% 0.99% Retail Class A (load-waived)1 5.47% 3.36% 0.65% Retail Class A (unadjusted)1,2 -0.06% -2.06% -1.15% Retail Class C (load-waived)1 5.14% 2.61% -0.16% Retail Class C (unadjusted)1,2 4.47% 1.61% -0.16% MSCI Frontier Markets NET3 -0.32% -3.05% -1.14% Cumulative Returns Through October 31, 2016 (% of NAV) Top 5 country exposures (% of NAV) Pakistan 17.2% Argentina 13.7% United Arab Emirates 11.2% Kuwait 9.4% Egypt 6.6% Source: based on Ashmore. aggregate Top allocation 5 country to investment exposure instruments The above excludes related tocash countries and equivalents shown above. as well transactions. as G-7 countries Data as of and October certain31, hedge 2016. related Share class information INSTITUTIONAL CLASS Launch date: November 5, 2013 Minimum initial investment: $1,000,000 ISIN: US0448207367 CUSIP: 044820736 BLOOMBERG: EFEIX US TICKER: EFEIX RETAIL CLASS A Launch date: May 7, 2014 Minimum initial investment: $1,000 ISIN: US0448207516 CUSIP: 044820751 BLOOMBERG: EFEAX US TICKER: EFEAX RETAIL CLASS C Launch date: May 7, 2014 Minimum initial investment: $1,000 ISIN: US0448207441 CUSIP: 044820744 BLOOMBERG: EFECX US TICKER: EFECX All sources are Ashmore unless otherwise indicated. The above cumulative returns graph assumes $1,000,000 invested at the beginning of the first full month following the inception of the Institutional Class. The minimum initial investment amount for Institutional Class Shares is $1,000,000. All Fund returns are net of fees and expenses. Performance calculations assume that all dividend, capital gain and other distributions were reinvested. The graph does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. 1 For periods prior to the inception date of the Class A (05/07/2014) and Class C shares (05/07/2014), performance information shown is based on the performance of the Fund’s Institutional Class shares (11/05/2013), adjusted to reflect the distribution and/or service fees and other expenses paid by the Class A and Class C shares, respectively. 2 Unadjusted Performance accounts for a maximum sales load of 5.25% for Class A shares and maximum deferred sales charge of 1% for the 6 months and 1 year returns for the Class C shares. 3The index for the Fund is the Morgan Stanley Capital Index Frontier Markets Net. Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call 1-855-274-6673. Periods greater than one year are annualized. Changes in rates of exchange between currencies may cause the value of investments to decrease or increase. The Fund’s performance will fluctuate over long and short term periods. Please refer to page 9 herein for an explanation of the Expense Example information presented below. Expense example Actual performance Hypothetical performance Institutional Class Class A Class C Institutional Class Class A Class C Beginning Account Value (5/1/2016) $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 Ending Account Value (10/31/2016) $1,055.80 $1,054.70 $1,051.40 $1,017.50 $1,016.24 $1,012.47 Expense Ratio 1.52% 1.77% 2.52% 1.52% 1.77% 2.52% Expenses Paid* $7.85 $9.14 $12.99 $7.71 $8.97 $12.75 *Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Hypothetical expenses are based on the Fund’s actual annualized expense ratios and assumed rate of 5 percent per year before expenses. 17
UNAUDITED FUND SUMMARY Ashmore Emerging Markets Value Fund* Ashmore Emerging Markets Value Fund is an open-end U.S. mutual fund. The Fund seeks to achieve its objective by investing principally in equity securities and equity-related investments of Emerging Market issuers which may be denominated in any currency, including the local currency of the issuer. *Formerly, Ashmore Emerging Markets Equity Fund. The name of the Fund changed effective February 29, 2016. Please refer to page 8 herein for an explanation of the information presented below in the Average Annual Total Return Table and Cumulative Return Chart. Average Annual Total Return For The Period Ended Oct 31, 2016 6 Months 1 Year 5 Year1 Since incpt1 Institutional Class1 12.28% 15.80% -0.85% -3.00% Retail Class A (load-waived)1 12.13% 15.36% -1.14% -3.30% Retail Class A (unadjusted)1,2 6.24% 9.30% -2.20% -4.27% MSCI EM NET3 9.41% 9.27% 0.55% -1.42% Cumulative Returns Through October 31, 2016 (% of NAV) Top 5 country exposures (% of NAV) China 24.9% South Korea 15.6% Brazil 13.5% India 8.6% Taiwan 8.5% Source: based on Ashmore. aggregate Top allocation 5 country to investment exposure instruments The above excludes related tocash countries and equivalents shown above. as well transactions. as G-7 countries Data as of and October certain31, hedge 2016. related Share class information INSTITUTIONAL CLASS Launch date: June 22, 2011 Minimum initial investment: $1,000,000 ISIN: US0448208191 CUSIP: 044820819 BLOOMBERG: EMFIX US TICKER: EMFIX RETAIL CLASS A Launch date: February 27, 2012 Minimum initial investment: $1,000 ISIN: US0448207771 CUSIP: 044820777 BLOOMBERG: EMEAX US TICKER: EMEAX All sources are Ashmore unless otherwise indicated. The above cumulative returns graph assumes $1,000,000 invested at the beginning of the first full month following the inception of the Institutional Class. The minimum initial investment amount for Institutional Class Shares is $1,000,000. The minimum initial investment amount for Retail Shares Class A is $1,000. All Fund returns are net of fees and expenses, except for the load-waived return information for Class A shares. Performance calculations assume that all dividend, capital gain and other distributions were reinvested. The graph does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. 1 For periods prior to the inception date of the Class A (02/27/2012), performance information shown is based on the performance of the Fund’s Institutional Class shares (06/22/2011), adjusted to reflect the distribution and/or service fees and other expenses paid by the Class A shares. 2 Unadjusted Performance accounts for a maximum sales load of 5.25% for Class A shares. 3 The index for the Fund is the Morgan Stanley Capital Index Emerging Markets Net. Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, please call 1-855-274-6673. Periods greater than one year are annualized. Changes in rates of exchange between currencies may cause the value of investments to decrease or increase. The Fund’s performance will fluctuate over long and short term periods. Please refer to page 9 herein for an explanation of the Expense Example information presented below. Expense example Actual performance Hypothetical performance Institutional Class Class A Institutional Class Class A Beginning Account Value (5/1/2016) $1,000.00 $1,000.00 $1,000.00 $1,000.00 Ending Account Value (10/31/2016) $1,122.80 $1,121.30 $1,019.25 $1,018.00 Expense Ratio 1.17% 1.42% 1.17% 1.42% Expenses Paid* $6.24 $7.57 $5.94 $7.20 **Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Hypothetical expenses are based on the Fund’s actual annualized expense ratios and assumed rate of 5 percent per year before expenses. 18
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| | KPMG LLP Aon Center Suite 5500 200 E. Randolph Street 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 Total Return Fund, Ashmore Emerging Markets Hard Currency Debt Fund (formerly Ashmore Emerging Markets Debt Fund), Ashmore Emerging Markets Local Currency Bond Fund, Ashmore Emerging Markets Corporate Debt Fund, Ashmore Emerging Markets Short Duration Fund, Ashmore Emerging Markets Equity Opportunities Fund, Ashmore Emerging Markets Value Fund (formerly Ashmore Emerging Markets Equity Fund), Ashmore Emerging Markets Small-Cap Equity Fund, and Ashmore Emerging Markets Frontier Equity Fund (Funds within Ashmore Funds), including the schedules of investments, as of October 31, 2016, 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 then ended, and the financial highlights for each of the years or periods in the five-year period then ended. 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, 2016, by correspondence with the custodians 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, 2016, 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 five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Chicago, Illinois
April 5, 2017
KPMG LLP is a Delaware limited liability partnership and the U.S. member
firm of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity.
ASHMORE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
As of October 31, 2016
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Ashmore | | | | | | | | | Ashmore | | | | | | | | | Ashmore | |
| | | | | | Emerging | | | | | | | | | Emerging | | | | | | | | | Emerging | |
| | | | | | Markets | | | | | | | | | Markets | | | | | | | | | Markets | |
| | | | | | Total Return | | | | | | | | | Hard Currency | | | | | | | | | Local Currency | |
| | | | | | Fund | | | | | | | | | Debt Fund | | | | | | | | | Bond Fund | |
ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in securities, at value | | | | | | $ | 721,350,670 | | | | | | | | | | | $ | 6,180,991 | | | | | | | | | | | $ | 56,756,612 | |
Investments in affiliates, at value | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | |
Investments in fully funded total return swaps, at value | | | | | | | 4,764,204 | | | | | | | | | | | | — | | | | | | | | | | | | 2,685,952 | |
Deposit held at broker | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 184,502 | |
Cash | | | | | | | 82,177,120 | | | | | | | | | | | | 133,059 | | | | | | | | | | | | 20,491,255 | |
Foreign currency, at value | | | | | | | 1,841,840 | | | | | | | | | | | | 10 | | | | | | | | | | | | 487,966 | |
Unrealized appreciation on forward foreign currency exchange contracts | | | | | | | 3,226,467 | | | | | | | | | | | | 170 | | | | | | | | | | | | 606,276 | |
Variation margin receivable on centrally cleared swap contracts | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 21,077 | |
Unrealized appreciation on interest rate swap contracts | | | | | | | 2,251,012 | | | | | | | | | | | | — | | | | | | | | | | | | 610,695 | |
Receivable for securities and currencies sold | | | | | | | 1,007,075 | | | | | | | | | | | | 15,301 | | | | | | | | | | | | 129,503 | |
Receivable for fund shares sold | | | | | | | 274,597 | | | | | | | | | | | | 238 | | | | | | | | | | | | 78,381 | |
Receivable from Investment Manager | | | | | | | 89,812 | | | | | | | | | | | | 9,224 | | | | | | | | | | | | 20,632 | |
Interest and dividends receivable | | | | | | | 13,072,777 | | | | | | | | | | | | 111,303 | | | | | | | | | | | | 1,053,249 | |
Other assets | | | | | | | 19,402 | | | | | | | | | | | | 171 | | | | | | | | | | | | 2,725 | |
Total Assets | | | | | | | 830,074,976 | | | | | | | | | | | | 6,450,467 | | | | | | | | | | | | 83,128,825 | |
LIABILITIES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized depreciation on forward foreign currency exchange contracts | | | | | | | 7,111,866 | | | | | | | | | | | | — | | | | | | | | | | | | 996,534 | |
Variation margin payable on centrally cleared swap contracts | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 43,366 | |
Unrealized depreciation on interest rate swap contracts | | | | | | | 49,613 | | | | | | | | | | | | — | | | | | | | | | | | | 42,265 | |
Payable for securities and currencies purchased | | | | | | | 3,934,953 | | | | | | | | | | | | — | | | | | | | | | | | | 147,460 | |
Payable for when-issued securities | | | | | | | 826,912 | | | | | | | | | | | | — | | | | | | | | | | | | — | |
Payable for fund shares redeemed | | | | | | | 1,394,453 | | | | | | | | | | | | — | | | | | | | | | | | | 16,135 | |
Distributions payable | | | | | | | 1,095,782 | | | | | | | | | | | | 10,989 | | | | | | | | | | | | 51,648 | |
Investment Manager fee payable | | | | | | | 651,164 | | | | | | | | | | | | 4,900 | | | | | | | | | | | | 65,523 | |
Trustees’ fees payable | | | | | | | 30,715 | | | | | | | | | | | | 240 | | | | | | | | | | | | 3,160 | |
Deferred foreign capital gains taxes payable | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | |
Other liabilities | | | | | | | 211,939 | | | | | | | | | | | | 31,972 | | | | | | | | | | | | 48,822 | |
Total Liabilities | | | | | | | 15,307,397 | | | | | | | | | | | | 48,101 | | | | | | | | | | | | 1,414,913 | |
Net Assets | | | | | | $ | 814,767,579 | | | | | | | | | | | $ | 6,402,366 | | | | | | | | | | | $ | 81,713,912 | |
NET ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Paid in capital | | | | | | $ | 880,628,040 | | | | | | | | | | | $ | 7,258,627 | | | | | | | | | | | $ | 90,859,058 | |
Undistributed (distributions in excess of) net investment income (loss) | | | | | | | 2,343,608 | | | | | | | | | | | | 1,896 | | | | | | | | | | | | (3,268,663 | ) |
Accumulated net realized gain (loss) | | | | | | | (74,850,370 | ) | | | | | | | | | | | (1,044,906 | ) | | | | | | | | | | | (3,555,150 | ) |
Net unrealized appreciation (depreciation) | | | | | | | 6,646,301 | | | | | | | | | | | | 186,749 | | | | | | | | | | | | (2,321,333 | ) |
Net Assets | | | | | | $ | 814,767,579 | | | | | | | | | | | $ | 6,402,366 | | | | | | | | | | | $ | 81,713,912 | |
| | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | $ | 3,445,031 | | | | | | | | | | | $ | 206,587 | | | | | | | | | | | $ | 840,985 | |
Class C | | | | | | | 2,451,236 | | | | | | | | | | | | 3,849 | | | | | | | | | | | | 69,546 | |
Institutional Class | | | | | | | 808,871,312 | | | | | | | | | | | | 6,191,930 | | | | | | | | | | | | 80,803,381 | |
Shares Issued and Outstanding (no par value, unlimited shares authorized): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | 429,967 | | | | | | | | | | | | 24,021 | | | | | | | | | | | | 119,044 | |
Class C | | | | | | | 306,287 | | | | | | | | | | | | 450 | | | | | | | | | | | | 9,864 | |
Institutional Class | | | | | | | 99,463,752 | | | | | | | | | | | | 724,952 | | | | | | | | | | | | 11,051,097 | |
Net Asset Value and Redemption Price Per Share (Net Asset Per Share Outstanding): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | $ | 8.01 | | | | | | | | | | | $ | 8.60 | | | | | | | | | | | $ | 7.06 | |
Class C | | | | | | | 8.00 | | | | | | | | | | | | 8.55 | | | | | | | | | | | | 7.05 | |
Institutional Class | | | | | | | 8.13 | | | | | | | | | | | | 8.54 | | | | | | | | | | | | 7.31 | |
| | | | | | | | |
Cost of Investments in securities | | | | | | $ | 712,189,528 | | | | | | | | | | | $ | 5,994,365 | | | | | | | | | | | $ | 59,045,841 | |
Cost of Investments in affiliates | | | | | | $ | — | | | | | | | | | | | $ | — | | | | | | | | | | | $ | — | |
Cost of Investments in fully funded total return swaps | | | | | | $ | 5,608,161 | | | | | | | | | | | $ | — | | | | | | | | | | | $ | 2,896,679 | |
Cost of foreign currency held | | | | | | $ | 1,856,886 | | | | | | | | | | | $ | 9 | | | | | | | | | | | $ | 488,114 | |
See accompanying notes to the financial statements.
20
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ashmore Emerging Markets Corporate Debt Fund | | | | | | Ashmore
Emerging Markets
Short Duration
Fund | | | | | | Ashmore
Emerging Markets
Equity
Opportunities
Fund | | | | | | Ashmore
Emerging Markets
Small-Cap Equity
Fund | | | | | | Ashmore
Emerging Markets
Frontier Equity Fund | | | | | | Ashmore
Emerging Markets
Value Fund | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 223,496,729 | | | | | | | $ | 125,566,587 | | | | | | | $ | — | | | | | | | $ | 33,883,724 | | | | | | | $ | 52,906,699 | | | | | | | $ | 9,051,880 | | | | | |
| | — | | | | | | | | — | | | | | | | | 5,426,402 | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | 6,156,839 | | | | | | | | 3,045,200 | | | | | | | | 75,661 | | | | | | | | 347,688 | | | | | | | | 1,810,251 | | | | | | | | 78,288 | | | | | |
| | 53,933 | | | | | | | | 15,744 | | | | | | | | — | | | | | | | | 37,998 | | | | | | | | 595,664 | | | | | | | | 1,949 | | | | | |
| | 17,117 | | | | | | | | 8,027 | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | 660,938 | | | | | | | | — | | | | | | | | — | | | | | | | | 96,782 | | | | | | | | 745,083 | | | | | | | | — | | | | | |
| | 910,551 | | | | | | | | 214,835 | | | | | | | | — | | | | | | | | 27,938 | | | | | | | | 56,299 | | | | | | | | 676 | | | | | |
| | 27,762 | | | | | | | | 15,397 | | | | | | | | 58,315 | | | | | | | | 12,476 | | | | | | | | 30,234 | | | | | | | | 11,724 | | | | | |
| | 4,480,313 | | | | | | | | 2,382,125 | | | | | | | | — | | | | | | | | 6,542 | | | | | | | | 159,024 | | | | | | | | 3,797 | | | | | |
| | 9,026 | | | | | | | | — | | | | | | | | 7,396 | | | | | | | | 2,214 | | | | | | | | 1,845 | | | | | | | | 350 | | | | | |
| | 235,813,208 | | | | | | | | 131,247,915 | | | | | | | | 5,567,774 | | | | | | | | 34,415,362 | | | | | | | | 56,305,099 | | | | | | | | 9,148,664 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | 1,235,446 | | | | | | | | 443,803 | | | | | | | | — | | | | | | | | — | | | | | | | | 1,086,188 | | | | | | | | — | | | | | |
| | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | 532,366 | | | | | | | | 9,390 | | | | | | | | — | | | | | | | | 8,095 | | | | | | | | 1,414 | | | | | | | | — | | | | | |
| | 256,232 | | | | | | | | 190,114 | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | 226,766 | | | | | | | | 69,951 | | | | | | | | — | | | | | | | | 43,234 | | | | | | | | 69,879 | | | | | | | | 8,826 | | | | | |
| | 8,691 | | | | | | | | 6,375 | | | | | | | | 213 | | | | | | | | 1,298 | | | | | | | | 2,123 | | | | | | | | 335 | | | | | |
| | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | 172,884 | | | | | | | | — | | | | | |
| | 87,654 | | | | | | | | 52,605 | | | | | | | | 13,868 | | | | | | | | 36,821 | | | | | | | | 45,717 | | | | | | | | 29,411 | | | | | |
| | 2,347,155 | | | | | | | | 772,238 | | | | | | | | 14,081 | | | | | | | | 89,448 | | | | | | | | 1,378,205 | | | | | | | | 38,572 | | | | | |
| $ | 233,466,053 | | | | | | | $ | 130,475,677 | | | | | | | $ | 5,553,693 | | | | | | | $ | 34,325,914 | | | | | | | $ | 54,926,894 | | | | | | | $ | 9,110,092 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 284,133,572 | | | | | | | $ | 124,205,926 | | | | | | | $ | 5,166,687 | | | | | | | $ | 39,928,555 | | | | | | | $ | 57,533,641 | | | | | | | $ | 11,139,076 | | | | | |
| | 42,314 | | | | | | | | 726,727 | | | | | | | | — | | | | | | | | (41,221 | ) | | | | | | | 203,984 | | | | | | | | 7,131 | | | | | |
| | (39,146,734 | ) | | | | | | | 1,446,642 | | | | | | | | 22,460 | | | | | | | | (6,554,473 | ) | | | | | | | (4,530,801 | ) | | | | | | | (3,208,963 | ) | | | | |
| | (11,563,099 | ) | | | | | | | 4,096,382 | | | | | | | | 364,546 | | | | | | | | 993,053 | | | | | | | | 1,720,070 | | | | | | | | 1,172,848 | | | | | |
| $ | 233,466,053 | | | | | | | $ | 130,475,677 | | | | | | | $ | 5,553,693 | | | | | | | $ | 34,325,914 | | | | | | | $ | 54,926,894 | | | | | | | $ | 9,110,092 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 11,465,937 | | | | | | | $ | 10,394,360 | | | | | | | $ | 10,849 | | | | | | | $ | 523,462 | | | | | | | $ | 2,154,355 | | | | | | | $ | 36,442 | | | | | |
| | 6,010,497 | | | | | | | | — | | | | | | | | 10,777 | | | | | | | | 176,246 | | | | | | | | 61,845 | | | | | | | | — | | | | | |
| | 215,989,619 | | | | | | | | 120,081,317 | | | | | | | | 5,532,067 | | | | | | | | 33,626,206 | | | | | | | | 52,710,694 | | | | | | | | 9,073,650 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1,448,368 | | | | | | | | 1,002,611 | | | | | | | | 1,011 | | | | | | | | 60,837 | | | | | | | | 269,938 | | | | | | | | 4,368 | | | | | |
| | 760,105 | | | | | | | | — | | | | | | | | 1,009 | | | | | | | | 19,349 | | | | | | | | 7,872 | | | | | | | | — | | | | | |
| | 26,197,545 | | | | | | | | 11,788,447 | | | | | | | | 514,492 | | | | | | | | 3,074,912 | | | | | | | | 5,815,206 | | | | | | | | 1,127,176 | | | | | |
| | | | | | | | | | | | | | | | | | | �� | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 7.92 | | | | | | | $ | 10.37 | | | | | | | $ | 10.73 | | | | | | | $ | 8.60 | | | | | | | $ | 7.98 | | | | | | | $ | 8.34 | | | | | |
| | 7.91 | | | | | | | | — | | | | | | | | 10.68 | | | | | | | | 9.11 | | | | | | | | 7.86 | | | | | | | | — | | | | | |
| | 8.24 | | | | | | | | 10.19 | | | | | | | | 10.75 | | | | | | | | 10.94 | | | | | | | | 9.06 | | | | | | | | 8.05 | | | | | |
| $ | 235,072,203 | | | | | | | $ | 121,476,274 | | | | | | | $ | — | | | | | | | $ | 32,883,334 | | | | | | | $ | 51,012,981 | | | | | | | $ | 7,879,017 | | | | | |
| $ | — | | | | | | | $ | — | | | | | | | $ | 5,061,856 | | | | | | | $ | — | | | | | | | $ | — | | | | | | | $ | — | | | | | |
| $ | — | | | | | | | $ | — | | | | | | | $ | — | | | | | | | $ | — | | | | | | | $ | — | | | | | | | $ | — | | | | | |
| $ | 53,462 | | | | | | | $ | 15,714 | | | | | | | $ | — | | | | | | | $ | 38,700 | | | | | | | $ | 595,917 | | | | | | | $ | 1,966 | | | | | |
See accompanying notes to the financial statements.
21
ASHMORE FUNDS
STATEMENTS OF OPERATIONS
For the Year Ended October 31, 2016
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Ashmore
Emerging Markets Total Return Fund | | | | | | | | | Ashmore
Emerging
Markets Hard Currency
Debt Fund | | | | | | | | | Ashmore
Emerging
Markets Local Currency
Bond Fund | |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest, net of foreign tax withholdings* | | | | | | $ | 53,944,039 | | | | | | | | | | | $ | 469,856 | | | | | | | | | | | $ | 4,304,678 | |
Dividends, net of foreign tax withholdings* | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | |
Total Income | | | | | | | 53,944,039 | | | | | | | | | | | | 469,856 | | | | | | | | | | | | 4,304,678 | |
EXPENSES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment Manager fees | | | | | | | 6,044,078 | | | | | | | | | | | | 53,538 | | | | | | | | | | | | 723,865 | |
Administration fees | | | | | | | 120,864 | | | | | | | | | | | | 1,190 | | | | | | | | | | | | 15,237 | |
Custody fees | | | | | | | 229,640 | | | | | | | | | | | | 1,530 | | | | | | | | | | | | 82,771 | |
Professional fees | | | | | | | 304,497 | | | | | | | | | | | | 31,961 | | | | | | | | | | | | 67,167 | |
Trustees’ fees | | | | | | | 117,876 | | | | | | | | | | | | 1,053 | | | | | | | | | | | | 14,022 | |
Offering expenses and registration fees | | | | | | | 68,657 | | | | | | | | | | | | 50,027 | | | | | | | | | | | | 48,429 | |
Insurance fees | | | | | | | 41,577 | | | | | | | | | | | | 391 | | | | | | | | | | | | 5,485 | |
Printing fees | | | | | | | 14,427 | | | | | | | | | | | | 11,763 | | | | | | | | | | | | 11,837 | |
Distribution and servicing fees - Class A | | | | | | | 7,145 | | | | | | | | | | | | 221 | | | | | | | | | | | | 1,879 | |
Distribution and servicing fees - Class C | | | | | | | 8,999 | | | | | | | | | | | | 42 | | | | | | | | | | | | 542 | |
Other | | | | | | | 56,586 | | | | | | | | | | | | 10,317 | | | | | | | | | | | | 20,511 | |
Total Expenses | | | | | | | 7,014,346 | | | | | | | | | | | | 162,033 | | | | | | | | | | | | 991,745 | |
Less expenses reimbursed by the Investment Manager | | | | | | | (833,414 | ) | | | | | | | | | | | (107,042 | ) | | | | | | | | | | | (250,550 | ) |
Net Expenses | | | | | | | 6,180,932 | | | | | | | | | | | | 54,991 | | | | | | | | | | | | 741,195 | |
Net Investment Income | | | | | | | 47,763,107 | | | | | | | | | | | | 414,865 | | | | | | | | | | | | 3,563,483 | |
NET REALIZED AND UNREALIZED GAINS (LOSSES): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NET REALIZED GAIN (LOSS) ON: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in securities | | | | | | | (31,545,028 | ) | | | | | | | | | | | (131,239 | ) | | | | | | | | | | | (8,186,125 | ) |
Investments in affiliates | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | |
Forward foreign currency exchange contracts | | | | | | | 8,590,751 | | | | | | | | | | | | 1,589 | | | | | | | | | | | | 1,161,490 | |
Currency swap contracts | | | | | | | (3,704 | ) | | | | | | | | | | | — | | | | | | | | | | | | — | |
Interest rate swap contracts | | | | | | | 363,746 | | | | | | | | | | | | — | | | | | | | | | | | | 289,938 | |
Foreign exchange transactions | | | | | | | (2,710,995 | ) | | | | | | | | | | | (717 | ) | | | | | | | | | | | 306,596 | |
Net Realized Gain (Loss) | | | | | | | (25,305,230 | ) | | | | | | | | | | | (130,367 | ) | | | | | | | | | | | (6,428,101 | ) |
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in securities (net of increase (decrease) in deferred foreign taxes of $-, $-, $-, $-, $-, $-, $(7,434), $(172,891) and $-, respectively) | | | | | | | 66,189,386 | | | | | | | | | | | | 471,914 | | | | | | | | | | | | 10,796,610 | |
Investments in affiliates | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | |
Forward foreign currency exchange contracts | | | | | | | (3,588,302 | ) | | | | | | | | | | | 223 | | | | | | | | | | | | (614,026 | ) |
Investments in fully funded total return swaps | | | | | | | 705,351 | | | | | | | | | | | | — | | | | | | | | | | | | 475,492 | |
Currency swap contracts | | | | | | | (10,267 | ) | | | | | | | | | | | — | | | | | | | | | | | | — | |
Interest rate and centrally cleared swap contracts | | | | | | | 2,264,839 | | | | | | | | | | | | — | | | | | | | | | | | | 918,868 | |
Foreign exchange translations | | | | | | | 12,986 | | | | | | | | | | | | 14 | | | | | | | | | | | | 59,401 | |
Change in Net Unrealized Appreciation (Depreciation) | | | | | | | 65,573,993 | | | | | | | | | | | | 472,151 | | | | | | | | | | | | 11,636,345 | |
Net Realized and Unrealized Gains (Losses) | | | | | | | 40,268,763 | | | | | | | | | | | | 341,784 | | | | | | | | | | | | 5,208,244 | |
Net Increase in Net Assets Resulting from Operations | | | | | | $ | 88,031,870 | | | | | | | | | | | $ | 756,649 | | | | | | | | | | | $ | 8,771,727 | |
* Foreign Tax Withholdings | | | | | | $ | 280,800 | | | | | | | | | | | $ | — | | | | | | | | | | | $ | 99,605 | |
See accompanying notes to the financial statements.
22
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ashmore
Emerging Markets
Corporate Debt
Fund | | | | | | Ashmore
Emerging Markets
Short Duration Fund | | | | | | Ashmore
Emerging Markets
Equity
Opportunities
Fund | | | | | | Ashmore
Emerging Markets
Small-Cap Equity Fund | | | | | | Ashmore
Emerging Markets
Frontier Equity Fund | | | | | | Ashmore
Emerging Markets
Value Fund | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 24,017,351 | | | | | | | $ | 8,591,195 | | | | | | | $ | — | | | | | | | $ | — | | | | | | | $ | — | | | | | | | $ | — | | | | | |
| | — | | | | | | | | — | | | | | | | | 69,406 | | | | | | | | 703,435 | | | | | | | | 1,795,912 | | | | | | | | 193,099 | | | | | |
| | 24,017,351 | | | | | | | | 8,591,195 | | | | | | | | 69,406 | | | | | | | | 703,435 | | | | | | | | 1,795,912 | | | | | | | | 193,099 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2,626,950 | | | | | | | | 445,879 | | | | | | | | — | | | | | | | | 562,163 | | | | | | | | 760,262 | | | | | | | | 98,766 | | | | | |
| | 45,681 | | | | | | | | 13,718 | | | | | | | | 946 | | | | | | | | 7,499 | | | | | | | | 10,137 | | | | | | | | 1,718 | | | | | |
| | 47,756 | | | | | | | | 14,904 | | | | | | | | 112 | | | | | | | | 81,036 | | | | | | | | 126,572 | | | | | | | | 22,681 | | | | | |
| | 132,410 | | | | | | | | 51,015 | | | | | | | | 34,470 | | | | | | | | 44,097 | | | | | | | | 49,041 | | | | | | | | 30,067 | | | | | |
| | 42,566 | | | | | | | | 13,786 | | | | | | | | 958 | | | | | | | | 7,635 | | | | | | | | 8,090 | | | | | | | | 1,594 | | | | | |
| | 60,149 | | | | | | | | 51,524 | | | | | | | | 167,823 | | | | | | | | 52,358 | | | | | | | | 52,976 | | | | | | | | 53,291 | | | | | |
| | 15,891 | | | | | | | | 2,818 | | | | | | | | 1,878 | | | | | | | | 2,617 | | | | | | | | 2,596 | | | | | | | | 581 | | | | | |
| | 14,495 | | | | | | | | 10,592 | | | | | | | | 10,581 | | | | | | | | 11,940 | | | | | | | | 13,849 | | | | | | | | 10,577 | | | | | |
| | 21,360 | | | | | | | | 4,934 | | | | | | | | 23 | | | | | | | | 1,035 | | | | | | | | 531 | | | | | | | | 63 | | | | | |
| | 39,552 | | | | | | | | — | | | | | | | | 93 | | | | | | | | 3,148 | | | | | | | | 563 | | | | | | | | 6 | | | | | |
| | 22,099 | | | | | | | | 5,805 | | | | | | | | 4,057 | | | | | | | | 17,547 | | | | | | | | 13,075 | | | | | | | | 12,946 | | | | | |
| | 3,068,909 | | | | | | | | 614,975 | | | | | | | | 220,941 | | | | | | | | 791,075 | | | | | | | | 1,037,692 | | | | | | | | 232,290 | | | | | |
| | (335,299 | ) | | | | | | | (150,467 | ) | | | | | | | (218,458 | ) | | | | | | | (216,973 | ) | | | | | | | (266,211 | ) | | | | | | | (131,748 | ) | | | | |
| | 2,733,610 | | | | | | | | 464,508 | | | | | | | | 2,483 | | | | | | | | 574,102 | | | | | | | | 771,481 | | | | | | | | 100,542 | | | | | |
| | 21,283,741 | | | | | | | | 8,126,687 | | | | | | | | 66,923 | | | | | | | | 129,333 | | | | | | | | 1,024,431 | | | | | | | | 92,557 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (22,105,218 | ) | | | | | | | 1,385,452 | | | | | | | | — | | | | | | | | (2,930,503 | ) | | | | | | | (3,507,611 | ) | | | | | | | (1,316,614 | ) | | | | |
| | — | | | | | | | | — | | | | | | | | 22,471 | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | 184,957 | | | | | | | | 233,265 | | | | | | | | — | | | | | | | | (12,517 | ) | | | | | | | (37 | ) | | | | | | | 283 | | | | | |
| | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | 601,004 | | | | | | | | (64,958 | ) | | | | | | | — | | | | | | | | 13,114 | | | | | | | | (102,250 | ) | | | | | | | (3,944 | ) | | | | |
| | (21,319,257 | ) | | | | | | | 1,553,759 | | | | | | | | 22,471 | | | | | | | | (2,929,906 | ) | | | | | | | (3,609,898 | ) | | | | | | | (1,320,275 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | 26,920,079 | | | | | | | | 5,405,122 | | | | | | | | — | | | | | | | | 5,741,534 | | | | | | | | 4,402,810 | | | | | | | | 2,425,863 | | | | | |
| | — | | | | | | | | — | | | | | | | | 364,546 | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | (224,285 | ) | | | | | | | 8,027 | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | | | | — | | | | | |
| | 6,310 | | | | | | | | (1,958 | ) | | | | | | | — | | | | | | | | (757 | ) | | | | | | | 676 | | | | | | | | (2 | ) | | | | |
| | 26,702,104 | | | | | | | | 5,411,191 | | | | | | | | 364,546 | | | | | | | | 5,740,777 | | | | | | | | 4,403,486 | | | | | | | | 2,425,861 | | | | | |
| | 5,382,847 | | | | | | | | 6,964,950 | | | | | | | | 387,017 | | | | | | | | 2,810,871 | | | | | | | | 793,588 | | | | | | | | 1,105,586 | | | | | |
| $ | 26,666,588 | | | | | | | $ | 15,091,637 | | | | | | | $ | 453,940 | | | | | | | $ | 2,940,204 | | | | | | | $ | 1,818,019 | | | | | | | $ | 1,198,143 | | | | | |
| $ | — | | | | | | | $ | 2,047 | | | | | | | $ | — | | | | | | | $ | 51,931 | | | | | | | $ | 171,082 | | | | | | | $ | 18,381 | | | | | |
See accompanying notes to the financial statements.
23
ASHMORE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the Fiscal Years Ended October 31,
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Ashmore Emerging Markets Total Return Fund | | | Ashmore Emerging Markets Hard Currency Debt Fund1 | | | Ashmore Emerging Markets Local Currency Bond Fund | |
| | | | | | 2016 | | | 2015 | | | 2016 | | | 2015 | | | 2016 | | | 2015 | |
OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | | $ | 47,763,107 | | | $ | 49,143,640 | | | $ | 414,865 | | | $ | 334,346 | | | $ | 3,563,483 | | | $ | 3,583,104 | |
Net realized gain (loss) | | | | | | | (25,305,230 | ) | | | (110,394,761 | ) | | | (130,367 | ) | | | (129,709 | ) | | | (6,428,101 | ) | | | (14,531,913 | ) |
Net change in unrealized appreciation (depreciation) | | | | | | | 65,573,993 | | | | (14,430,563 | ) | | | 472,151 | | | | (265,977 | ) | | | 11,636,345 | | | | (8,389,207 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | | | | | 88,031,870 | | | | (75,681,684 | ) | | | 756,649 | | | | (61,340 | ) | | | 8,771,727 | | | | (19,338,016 | ) |
| | | | | | | |
DISTRIBUTIONS TO CLASS A SHAREHOLDERS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | (120,605 | ) | | | — | | | | (5,862 | ) | | | (356 | ) | | | — | | | | — | |
From net realized gain | | | | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Tax return of capital | | | | | | | (90,261 | ) | | | (212,099 | ) | | | — | | | | (37 | ) | | | (33,712 | ) | | | (29,458 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions to Class A Shareholders | | | | | | | (210,866 | ) | | | (212,099 | ) | | | (5,862 | ) | | | (393 | ) | | | (33,712 | ) | | | (29,458 | ) |
| | | | | | | |
DISTRIBUTIONS TO CLASS C SHAREHOLDERS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | (21,383 | ) | | | — | | | | (238 | ) | | | (48 | ) | | | — | | | | — | |
From net realized gain | | | | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Tax return of capital | | | | | | | (36,096 | ) | | | (33,394 | ) | | | — | | | | (12 | ) | | | (2,040 | ) | | | (2,295 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions to Class C Shareholders | | | | | | | (57,479 | ) | | | (33,394 | ) | | | (238 | ) | | | (60 | ) | | | (2,040 | ) | | | (2,295 | ) |
| | | | | | | |
DISTRIBUTIONS TO INSTITUTIONAL CLASS SHAREHOLDERS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | | | | | (24,746,224 | ) | | | — | | | | (390,819 | ) | | | (263,319 | ) | | | — | | | | — | |
From net realized gain | | | | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Tax return of capital | | | | | | | (21,115,970 | ) | | | (48,542,322 | ) | | | — | | | | (69,250 | ) | | | (3,565,423 | ) | | | (3,490,233 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Distributions to Institutional Class Shareholders | | | | | | | (45,862,194 | ) | | | (48,542,322 | ) | | | (390,819 | ) | | | (332,569 | ) | | | (3,565,423 | ) | | | (3,490,233 | ) |
FUND SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets resulting from Class A share transactions | | | | | | | 370,218 | | | | (4,565,169 | ) | | | 197,850 | | | | (33,736 | ) | | | 72,875 | | | | 15,061 | |
Net increase (decrease) in net assets resulting from Class C share transactions | | | | | | | 1,961,081 | | | | (453,745 | ) | | | 3,278 | | | | 59 | | | | 26,584 | | | | (87,947 | ) |
Net increase (decrease) in net assets resulting from Institutional Class share transactions | | | | | | | 233,398,814 | | | | (322,702,928 | ) | | | 349,812 | | | | 307,396 | | | | (3,800,017 | ) | | | 769,959 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets Resulting from Fund Share Transactions | | | | | | | 235,730,113 | | | | (327,721,842 | ) | | | 550,940 | | | | 273,719 | | | | (3,700,558 | ) | | | 697,073 | |
Total Increase (Decrease) in Net Assets | | | | | | | 277,631,444 | | | | (452,191,341 | ) | | | 910,670 | | | | (120,643 | ) | | | 1,469,994 | | | | (22,162,929 | ) |
NET ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets at the Beginning of the Year | | | | | | | 537,136,135 | | | | 989,327,476 | | | | 5,491,696 | | | | 5,612,339 | | | | 80,243,918 | | | | 102,406,847 | |
Net Assets at the End of the Year | | | | | | $ | 814,767,579 | | | $ | 537,136,135 | | | $ | 6,402,366 | | | $ | 5,491,696 | | | $ | 81,713,912 | | | $ | 80,243,918 | |
Undistributed (Distributions in Excess of) Net Investment Income (Loss) | | | | | | $ | 2,343,608 | | | $ | (13,398,598 | ) | | $ | 1,896 | | | $ | (11,588 | ) | | $ | (3,268,663 | ) | | $ | (7,796,272 | ) |
See accompanying notes to the financial statements.
24
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Ashmore Emerging Markets Corporate Debt Fund | | | Ashmore Emerging Markets Short Duration Fund | | | Ashmore
Emerging Markets
Equity Opportunities
Fund2 | | | Ashmore Emerging Markets Small-Cap Equity Fund | |
2016 | | | 2015 | | | 2016 | | | 2015 | | | 2016 | | | 2016 | | | 2015 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 21,283,741 | | | $ | 24,546,377 | | | $ | 8,126,687 | | | $ | 1,914,528 | | | | $ 66,923 | | | $ | 129,333 | | | $ | 866,525 | |
| | (21,319,257 | ) | | | (20,223,394 | ) | | | 1,553,759 | | | | (62,733 | ) | | | 22,471 | | | | (2,929,906 | ) | | | (3,605,071 | ) |
| | 26,702,104 | | | | (21,723,064 | ) | | | 5,411,191 | | | | (971,004 | ) | | | 364,546 | | | | 5,740,777 | | | | (3,867,028 | ) |
| | | | | | | |
| | 26,666,588 | | | | (17,400,081 | ) | | | 15,091,637 | | | | 880,791 | | | | 453,940 | | | | 2,940,204 | | | | (6,605,574 | ) |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (738,593 | ) | | | (372,250 | ) | | | (200,360 | ) | | | (19,616 | ) | | | (129) | | | | (6,300 | ) | | | (2,670 | ) |
| | — | | | | (18,884 | ) | | | — | | | | — | | | | — | | | | — | | | | (13,879 | ) |
| | — | | | | (69,976 | ) | | | — | | | | (310 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (738,593 | ) | | | (461,110 | ) | | | (200,360 | ) | | | (19,926 | ) | | | (129) | | | | (6,300 | ) | | | (16,549 | ) |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (313,829 | ) | | | (121,913 | ) | | | — | | | | — | | | | (106) | | | | (4,415 | ) | | | (2,447 | ) |
| | — | | | | (3,404 | ) | | | — | | | | — | | | | — | | | | — | | | | (3,134 | ) |
| | — | | | | (28,429 | ) | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (313,829 | ) | | | (153,746 | ) | | | — | | | | — | | | | (106) | | | | (4,415 | ) | | | (5,581 | ) |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (19,562,627 | ) | | | (23,014,251 | ) | | | (7,218,524 | ) | | | (1,902,761 | ) | | | (66,699) | | | | (707,102 | ) | | | (351,773 | ) |
| | — | | | | (1,963,846 | ) | | | — | | | | — | | | | — | | | | — | | | | (1,629,523 | ) |
| | — | | | | (2,370,968 | ) | | | — | | | | (20,794 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (19,562,627 | ) | | | (27,349,065 | ) | | | (7,218,524 | ) | | | (1,923,555 | ) | | | (66,699) | | | | (707,102 | ) | | | (1,981,296 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | 3,707,745 | | | | 6,391,685 | | | | 9,824,185 | | | | 232,701 | | | | 10,109 | | | | 202,688 | | | | 2,267 | |
| | | | | | | |
| | 2,567,689 | | | | 3,075,145 | | | | — | | | | — | | | | 10,090 | | | | (165,723 | ) | | | 288,746 | |
| | | | | | | |
| | (26,410,702 | ) | | | (83,452,584 | ) | | | 85,635,382 | | | | 6,697,940 | | | | 5,146,488 | | | | (10,989,279 | ) | | | 2,055,975 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | (20,135,268 | ) | | | (73,985,754 | ) | | | 95,459,567 | | | | 6,930,641 | | | | 5,166,687 | | | | (10,952,314 | ) | | | 2,346,988 | |
| | (14,083,729 | ) | | | (119,349,756 | ) | | | 103,132,320 | | | | 5,867,951 | | | | 5,553,693 | | | | (8,729,927 | ) | | | (6,262,012 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 247,549,782 | | | | 366,899,538 | | | | 27,343,357 | | | | 21,475,406 | | | | — | | | | 43,055,841 | | | | 49,317,853 | |
| $ | 233,466,053 | | | $ | 247,549,782 | | | $ | 130,475,677 | | | $ | 27,343,357 | | | | $5,553,693 | | | $ | 34,325,914 | | | $ | 43,055,841 | |
| | | | | | | |
| $ | 42,314 | | | $ | (552,809 | ) | | $ | 726,727 | | | $ | (22,757 | ) | | | $ — | | | $ | (41,221 | ) | | $ | 536,866 | |
See accompanying notes to the financial statements.
25
ASHMORE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the Fiscal Years Ended October 31,
| | | | | | | | | | | | | | | | |
| | | Ashmore Emerging Markets Frontier Equity Fund | | | Ashmore Emerging Markets Value Fund3 | |
| | | | 2016 | | | | 2015 | | | | 2016 | | | | 2015 | |
OPERATIONS: | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 1,024,431 | | | $ | 332,020 | | | $ | 92,557 | | | $ | 47,726 | |
Net realized gain (loss) | | | (3,609,898 | ) | | | (1,003,655 | ) | | | (1,320,275 | ) | | | (752,570 | ) |
Net change in unrealized appreciation (depreciation) | | | 4,403,486 | | | | (2,795,438 | ) | | | 2,425,861 | | | | (1,229,809 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 1,818,019 | | | | (3,467,073 | ) | | | 1,198,143 | | | | (1,934,653 | ) |
| | | | |
DISTRIBUTIONS TO CLASS A SHAREHOLDERS: | | | | | | | | | | | | | | | | |
From net investment income | | | (1,369 | ) | | | (1,940 | ) | | | (233 | ) | | | (183 | ) |
From net realized gain | | | — | | | | (13,570 | ) | | | — | | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | (9 | ) |
| | | | | | | | | | | | | | | | |
Total Distributions to Class A Shareholders | | | (1,369 | ) | | | (15,510 | ) | | | (233 | ) | | | (192 | ) |
| | | | |
DISTRIBUTIONS TO CLASS C SHAREHOLDERS: | | | | | | | | | | | | | | | | |
From net investment income | | | (465 | ) | | | (76 | ) | | | (2 | ) | | | (6 | ) |
From net realized gain | | | — | | | | (86 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total Distributions to Class C Shareholders | | | (465 | ) | | | (162 | ) | | | (2 | ) | | | (6 | ) |
| | | | |
DISTRIBUTIONS TO INSTITUTIONAL CLASS SHAREHOLDERS: | | | | | | | | | | | | | | | | |
From net investment income | | | (745,454 | ) | | | (281,333 | ) | | | (84,045 | ) | | | (59,909 | ) |
From net realized gain | | | — | | | | (778,573 | ) | | | — | | | | — | |
Tax return of capital | | | — | | | | — | | | | — | | | | (2,811 | ) |
| | | | | | | | | | | | | | | | |
Total Distributions to Institutional Class Shareholders | | | (745,454 | ) | | | (1,059,906 | ) | | | (84,045 | ) | | | (62,720 | ) |
FUND SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets resulting from | | | | | | | | | | | | | | | | |
Class A share transactions | | | 2,123,829 | | | | 49,816 | | | | 8,663 | | | | 694 | |
Net increase (decrease) in net assets resulting from | | | | | | | | | | | | | | | | |
Class C share transactions | | | 7,394 | | | | 55,144 | | | | (917 | ) | | | 4 | |
Net increase (decrease) in net assets resulting from | | | | | | | | | | | | | | | | |
Institutional Class share transactions | | | 1,674,862 | | | | 47,197,318 | | | | 362,763 | | | | (712,536 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Net Increase (Decrease) in Net Assets Resulting from Fund Share Transactions | | | 3,806,085 | | | | 47,302,278 | | | | 370,509 | | | | (711,838 | ) |
Net Increase (Decrease) in Net Assets | | | 4,876,816 | | | | 42,759,627 | | | | 1,484,372 | | | | (2,709,409 | ) |
NET ASSETS: | | | | | | | | | | | | | | | | |
Net Assets at the Beginning of theYear | | | 50,050,078 | | | | 7,290,451 | | | | 7,625,720 | | | | 10,335,129 | |
Net Assets at the End of theYear | | $ | 54,926,894 | | | $ | 50,050,078 | | | $ | 9,110,092 | | | $ | 7,625,720 | |
Undistributed (Distributions in Excess of) Net Investment Income (Loss) | | $ | 203,984 | | | $ | (18,052 | ) | | $ | 7,131 | | | $ | (332 | ) |
| 1 | Formerly the Ashmore Emerging Markets Debt Fund. |
| 2 | The Fund commenced investment operations on November 23, 2015. |
| 3 | Formerly the Ashmore Emerging Markets Equity Fund. |
See accompanying notes to the financial statements.
26
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Total Return Fund | | | | | | | | | | | | | | | |
| | | | | | | | | Class A | | | | | | | |
| | | | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | |
| | | | |
Net asset value at beginning of year | | | $ 7.49 | | | | $ 8.75 | | | | $ 9.30 | | | | $ 10.05 | | | | $ 9.37 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.58 | 1 | | | 0.48 | 1 | | | 0.44 | | | | 0.41 | | | | 0.43 | 1 |
Net realized and unrealized gain (loss) | | | 0.49 | | | | (1.24 | ) | | | (0.42 | ) | | | (0.57 | ) | | | 0.68 | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 1.07 | | | | (0.76 | ) | | | 0.02 | | | | (0.16 | ) | | | 1.11 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.33 | ) | | | — | | | | (0.33 | ) | | | (0.43 | ) | | | (0.43 | ) |
From net realized gain | | | — | | | | — | | | | (0.12 | ) | | | (0.16 | ) | | | — | |
Tax return of capital | | | (0.22 | ) | | | (0.50 | ) | | | (0.12 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.55 | ) | | | (0.50 | ) | | | (0.57 | ) | | | (0.59 | ) | | | (0.43 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value at end of year | | | $ 8.01 | | | | $ 7.49 | | | | $ 8.75 | | | | $ 9.30 | | | | $ 10.05 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | 15.15 | % | | | (8.78 | %) | | | 0.17 | % | | | (1.70 | %) | | | 12.20 | % |
| | | | | |
Portfolio turnover rate3 | | | 91 | % | | | 101 | % | | | 80 | % | | | 85 | % | | | 83 | % |
| | | | | |
Net assets, end of year (in thousands) | | | $3,445 | | | | $2,951 | | | | $8,351 | | | | $10,344 | | | | $3,263 | |
| | | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 1.41 | % | | | 1.37 | % | | | 1.38 | % | | | 1.38 | % | | | 1.48 | % |
Total expenses after reimbursements | | | 1.27 | % | | | 1.29 | % | | | 1.30 | % | | | 1.30 | % | | | 1.30 | % |
| | | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 7.48 | % | | | 5.91 | % | | | 4.79 | % | | | 4.55 | % | | | 3.99 | % |
Net investment income after reimbursements | | | 7.62 | % | | | 5.99 | % | | | 4.87 | % | | | 4.63 | % | | | 4.17 | % |
See accompanying notes to the financial statements.
27
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Total Return Fund | | | | | | | | | | | | | | | |
| | | | | | | | | Class C | | | | | | | |
| | | | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | |
| | | | |
Net asset value at beginning of year | | | $ 7.48 | | | | $ 8.74 | | | | $ 9.29 | | | | $ 10.05 | | | | $ 9.36 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.53 | 1 | | | 0.44 | 1 | | | 0.37 | | | | 0.33 | | | | 0.39 | 1 |
Net realized and unrealized gain (loss) | | | 0.49 | | | | (1.26 | ) | | | (0.42 | ) | | | (0.57 | ) | | | 0.66 | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 1.02 | | | | (0.82 | ) | | | (0.05 | ) | | | (0.24 | ) | | | 1.05 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.30 | ) | | | — | | | | (0.28 | ) | | | (0.36 | ) | | | (0.36 | ) |
From net realized gain | | | — | | | | — | | | | (0.12 | ) | | | (0.16 | ) | | | — | |
Tax return of capital | | | (0.20) | | | | (0.44) | | | | (0.10) | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.50 | ) | | | (0.44 | ) | | | (0.50 | ) | | | (0.52 | ) | | | (0.36 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value at end of year | | | $ 8.00 | | | | $ 7.48 | | | | $ 8.74 | | | | $ 9.29 | | | | $10.05 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | 14.32 | % | | | (9.58 | %) | | | (0.45 | %) | | | (2.44 | %) | | | 11.42 | % |
| | | | | |
Portfolio turnover rate3 | | | 91 | % | | | 101 | % | | | 80 | % | | | 85 | % | | | 83 | % |
| | | | | |
Net assets, end of year (in thousands) | | | $2,451 | | | | $443 | | | | $1,028 | | | | $969 | | | | $541 | |
| | | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.15 | % | | | 2.12 | % | | | 2.13 | % | | | 2.13 | % | | | 2.21 | % |
Total expenses after reimbursements | | | 2.02 | % | | | 2.03 | % | | | 2.05 | % | | | 2.05 | % | | | 2.05 | % |
| | | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 6.79 | % | | | 5.35 | % | | | 4.04 | % | | | 3.83 | % | | | 2.62 | % |
Net investment income after reimbursements | | | 6.92 | % | | | 5.44 | % | | | 4.12 | % | | | 3.91 | % | | | 2.78 | % |
See accompanying notes to the financial statements.
28
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Total Return Fund | | | | | | | | | | | | | | | |
| | | | | | Institutional Class | | | | |
| | | | | |
| | | Year Ended October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | |
| | | | |
Net asset value at beginning of year | | | $ 7.60 | | | | $ 8.88 | | | | $ 9.43 | | | | $ 10.20 | | | | $ 9.50 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.61 | 1 | | | 0.53 | 1 | | | 0.46 | | | | 0.45 | | | | 0.44 | 1 |
Net realized and unrealized gain (loss) | | | 0.50 | | | | (1.28 | ) | | | (0.41 | ) | | | (0.60 | ) | | | 0.72 | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 1.11 | | | | (0.75 | ) | | | 0.05 | | | | (0.15 | ) | | | 1.16 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.35 | ) | | | — | | | | (0.35 | ) | | | (0.46 | ) | | | (0.46 | ) |
From net realized gain | | | — | | | | — | | | | (0.12 | ) | | | (0.16 | ) | | | — | |
Tax return of capital | | | (0.23 | ) | | | (0.53 | ) | | | (0.13 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.58 | ) | | | (0.53 | ) | | | (0.60 | ) | | | (0.62 | ) | | | (0.46 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value at end of year | | | $ 8.13 | | | | $ 7.60 | | | | $ 8.88 | | | | $ 9.43 | | | | $ 10.20 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | 15.49 | % | | | (8.58 | %) | | | 0.51 | % | | | (1.48 | %) | | | 12.50 | % |
| | | | | |
Portfolio turnover rate3 | | | 91 | % | | | 101 | % | | | 80 | % | | | 85 | % | | | 83 | % |
| | | | | |
Net assets, end of year (in thousands) | | | $808,872 | | | | $533,742 | | | | $979,949 | | | | $662,412 | | | | $513,956 | |
| | | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 1.16 | % | | | 1.12 | % | | | 1.13 | % | | | 1.13 | % | | | 1.22 | % |
Total expenses after reimbursements | | | 1.02 | % | | | 1.02 | % | | | 1.02 | % | | | 1.02 | % | | | 1.02 | % |
| | | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 7.77 | % | | | 6.40 | % | | | 5.04 | % | | | 4.81 | % | | | 4.11 | % |
Net investment income after reimbursements | | | 7.91 | % | | | 6.50 | % | | | 5.15 | % | | | 4.92 | % | | | 4.31 | % |
| 1 | Per share amounts are based on average number of shares outstanding during the period. |
| 2 | Assumes investment at net asset value at the beginning of the year, reinvestment of all distributions at net asset value on distribution date, and a complete redemption of the investment at net asset value at the end of the year excluding the impact of sales charges. |
| 3 | The portfolio turnover rate is calculated by dividing the lesser of the 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. |
See accompanying notes to the financial statements.
29
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Hard Currency Debt Fund1 | | | | | | | | | | | | | | | |
| | | | | | | | | Class A | | | | | | | |
| | | | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | |
| | | | |
Net asset value at beginning of year | | | $ 8.13 | | | | $ 8.74 | | | | $10.15 | | | | $11.06 | | | | $10.04 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)2 | | | 0.61 | | | | 0.49 | | | | 0.50 | | | | 0.46 | | | | 0.44 | |
Net realized and unrealized gain (loss) | | | 0.44 | | | | (0.62 | ) | | | 0.20 | | | | (0.88 | ) | | | 1.03 | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 1.05 | | | | (0.13 | ) | | | 0.70 | | | | (0.42 | ) | | | 1.47 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.58 | ) | | | (0.38 | ) | | | (0.53 | ) | | | (0.46 | ) | | | (0.45 | ) |
From net realized gain | | | — | | | | — | | | | (1.58 | ) | | | (0.03 | ) | | | — | |
Tax return of capital | | | — | | | | (0.10 | ) | | | — | 3 | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.58 | ) | | | (0.48 | ) | | | (2.11 | ) | | | (0.49 | ) | | | (0.45 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value at end of year | | | $ 8.60 | | | | $ 8.13 | | | | $ 8.74 | | | | $10.15 | | | | $11.06 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return4 | | | 13.41 | % | | | (1.36 | %) | | | 8.46 | % | | | (3.86 | %) | | | 15.24 | % |
| | | | | |
Portfolio turnover rate5 | | | 68 | % | | | 35 | % | | | 99 | % | | | 81 | % | | | 30 | % |
| | | | | |
Net assets, end of year (in thousands) | | | $ 206 | | | | $ 3 | | | | $ 38 | | | | $ 2 | | | | $ 14 | |
| | | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.92 | % | | | 3.81 | % | | | 3.79 | % | | | 1.66 | % | | | 1.93 | % |
Total expenses after reimbursements | | | 1.17 | % | | | 1.19 | % | | | 1.20 | % | | | 1.20 | % | | | 1.20 | % |
| | | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 5.48 | % | | | 3.18 | % | | | 3.23 | % | | | 3.75 | % | | | 3.62 | % |
Net investment income after reimbursements | | | 7.23 | % | | | 5.80 | % | | | 5.82 | % | | | 4.21 | % | | | 4.35 | % |
See accompanying notes to the financial statements.
30
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Hard Currency Debt Fund1 | | | | | | | | | | | | | | | |
| | | | | | | | | Class C | | | | | | | |
| | | | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended ��
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | |
| | | | |
Net asset value at beginning of year | | | $ 8.08 | | | | $ 8.70 | | | | $10.12 | | | | $11.04 | | | | $10.04 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)2 | | | 0.47 | | | | 0.43 | | | | 0.44 | | | | 0.38 | | | | 0.37 | |
Net realized and unrealized gain (loss) | | | 0.57 | | | | (0.62 | ) | | | 0.17 | | | | (0.89 | ) | | | 1.01 | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 1.04 | | | | (0.19 | ) | | | 0.61 | | | | (0.51 | ) | | | 1.38 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.57 | ) | | | (0.34 | ) | | | (0.45 | ) | | | (0.38 | ) | | | (0.38 | ) |
From net realized gain | | | — | | | | — | | | | (1.58 | ) | | | (0.03 | ) | | | — | |
Tax return of capital | | | — | | | | (0.09 | ) | | | — | 3 | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.57 | ) | | | (0.43 | ) | | | (2.03 | ) | | | (0.41 | ) | | | (0.38 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value at end of year | | | $ 8.55 | | | | $ 8.08 | | | | $ 8.70 | | | | $10.12 | | | | $11.04 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return4 | | | 13.53 | % | | | (2.11 | %) | | | 7.30 | % | | | (4.64 | %) | | | 14.28 | % |
| | | | | |
Portfolio turnover rate5 | | | 68 | % | | | 35 | % | | | 99 | % | | | 81 | % | | | 30 | % |
| | | | | |
Net assets, end of year (in thousands) | | | $ 4 | | | | $ 1 | | | | $ 1 | | | | $ 1 | | | | $ 1 | |
| | | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 3.81 | % | | | 4.49 | % | | | 4.90 | % | | | 2.41 | % | | | 2.73 | % |
Total expenses after reimbursements | | | 1.92 | % | | | 1.93 | % | | | 1.95 | % | | | 1.95 | % | | | 1.95 | % |
| | | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 3.91 | % | | | 2.73 | % | | | 1.99 | % | | | 3.16 | % | | | 2.86 | % |
Net investment income after reimbursements | | | 5.80 | %�� | | | 5.29 | % | | | 4.94 | % | | | 3.62 | % | | | 3.64 | % |
See accompanying notes to the financial statements.
31
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Hard Currency Debt Fund1 | | | | | | | | | | | | | | | |
| | | Institutional Class | |
| | | | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | |
| | | | |
Net asset value at beginning of year | | | $ 8.07 | | | | $ 8.68 | | | | $ 10.08 | | | | $ 10.99 | | | | $ 9.99 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)2 | | | 0.57 | | | | 0.51 | | | | 0.52 | | | | 0.48 | | | | 0.48 | |
| | | | | |
Net realized and unrealized gain (loss) | | | 0.44 | | | | (0.62 | ) | | | 0.18 | | | | (0.87 | ) | | | 1.01 | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 1.01 | | | | (0.11 | ) | | | 0.70 | | | | (0.39 | ) | | | 1.49 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.54 | ) | | | (0.40 | ) | | | (0.52 | ) | | | (0.49 | ) | | | (0.49 | ) |
From net realized gain | | | — | | | | — | | | | (1.58 | ) | | | (0.03 | ) | | | — | |
Tax return of capital | | | — | | | | (0.10 | ) | | | — | 3 | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.54 | ) | | | (0.50 | ) | | | (2.10 | ) | | | (0.52 | ) | | | (0.49 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value at end of year | | | $ 8.54 | | | | $ 8.07 | | | | $ 8.68 | | | | $ 10.08 | | | | $ 10.99 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return4 | | | 13.06 | % | | | (1.10 | %) | | | 8.41 | % | | | (3.64 | %) | | | 15.32 | % |
| | | | | |
Portfolio turnover rate5 | | | 68 | % | | | 35 | % | | | 99 | % | | | 81 | % | | | 30 | % |
| | | | | |
Net assets, end of year (in thousands) | | | $6,192 | | | | $5,488 | | | | $5,573 | | | | $29,004 | | | | $35,025 | |
| | | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.72 | % | | | 3.49 | % | | | 3.43 | % | | | 1.41 | % | | | 1.63 | % |
Total expenses after reimbursements | | | 0.92 | % | | | 0.92 | % | | | 0.92 | % | | | 0.92 | % | | | 0.92 | % |
| | | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 5.17 | % | | | 3.64 | % | | | 3.20 | % | | | 4.08 | % | | | 3.95 | % |
Net investment income after reimbursements | | | 6.97 | % | | | 6.21 | % | | | 5.71 | % | | | 4.57 | % | | | 4.66 | % |
| 1 | Formerly the Ashmore Emerging Markets Debt Fund. |
| 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 year, reinvestment of all distributions at net asset value on distribution date, and a complete redemption of the investment at net asset value at the end of the year excluding the impact of sales charges. |
| 5 | The portfolio turnover rate is calculated by dividing the lesser of cost of purchases or proceeds from sales of long term portfolio securities by the monthly average of the value of the long term portfolio securities. |
See accompanying notes to the financial statements.
32
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Local Currency Bond Fund | | | | | | | | | | | | | | | |
| |
| | | Class A | |
| | | | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | |
| | | | |
| | | | | |
Net asset value at beginning of year | | | $ 6.57 | | | | $ 8.44 | | | | $ 9.13 | | | | $ 9.83 | | | | $ 9.43 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.30 | 1 | | | 0.29 | | | | 0.37 | 1 | | | 0.44 | 1 | | | 0.43 | 1 |
Net realized and unrealized gain (loss) | | | 0.49 | | | | (1.88 | ) | | | (0.66 | ) | | | (0.74 | ) | | | 0.31 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total from investment operations | | | 0.79 | | | | (1.59 | ) | | | (0.29 | ) | | | (0.30 | ) | | | 0.74 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | — | | | | — | | | | — | | | | (0.22 | ) | | | (0.34 | ) |
From net realized gain | | | — | | | | — | | | | — | | | | (0.01 | ) | | | — | |
Tax return of capital | | | (0.30 | ) | | | (0.28 | ) | | | (0.40 | ) | | | (0.17 | ) | | | — | 2 |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.30 | ) | | | (0.28 | ) | | | (0.40 | ) | | | (0.40 | ) | | | (0.34 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value at end of year | | | $ 7.06 | | | | $ 6.57 | | | | $ 8.44 | | | | $ 9.13 | | | | $ 9.83 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return3 | | | 12.37 | % | | | (19.17 | %) | | | (3.25 | %) | | | (3.21 | %) | | | 8.02 | % |
| | | | | |
Portfolio turnover rate4 | | | 83 | % | | | 83 | % | | | 112 | % | | | 112 | % | | | 101 | % |
| | | | | |
Net assets, end of year (in thousands) | | | $ 841 | | | | $ 712 | | | | $ 897 | | | | $ 2,096 | | | | $ 413 | |
| | | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 1.55 | % | | | 1.51 | % | | | 1.55 | % | | | 1.47 | % | | | 1.64 | % |
Total expenses after reimbursements | | | 1.22 | % | | | 1.23 | % | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % |
| | | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 4.10 | % | | | 3.53 | % | | | 4.29 | % | | | 4.38 | % | | | 3.03 | % |
Net investment income after reimbursements | | | 4.43 | % | | | 3.81 | % | | | 4.59 | % | | | 4.60 | % | | | 3.42 | % |
See accompanying notes to the financial statements.
33
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Local Currency Bond Fund | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | Class C | | | | | | | |
| | | | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | |
| | | | |
| | | | | |
Net asset value at beginning of year | | | $ 6.56 | | | | $ 8.42 | | | | $ 9.13 | | | | $ 9.83 | | | | $ 9.43 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.25 | 1 | | | 0.18 | | | | 0.29 | 1 | | | 0.38 | 1 | | | 0.22 | 1 |
Net realized and unrealized gain (loss) | | | 0.49 | | | | (1.82 | ) | | | (0.67 | ) | | | (0.75 | ) | | | 0.45 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total from investment operations | | | 0.74 | | | | (1.64 | ) | | | (0.38 | ) | | | (0.37 | ) | | | 0.67 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | — | | | | — | | | | — | | | | (0.18 | ) | | | (0.27 | ) |
From net realized gain | | | — | | | | — | | | | — | | | | (0.01 | ) | | | — | |
Tax return of capital | | | (0.25 | ) | | | (0.22 | ) | | | (0.33 | ) | | | (0.14 | ) | | | — | 2 |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.25 | ) | | | (0.22 | ) | | | (0.33 | ) | | | (0.33 | ) | | | (0.27 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value at end of year | | | $ 7.05 | | | | $ 6.56 | | | | $ 8.42 | | | | $ 9.13 | | | | $ 9.83 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return3 | | | 11.75 | % | | | (19.83 | %) | | | (4.18 | %) | | | (3.92 | %) | | | 7.33 | % |
| | | | | |
Portfolio turnover rate4 | | | 83 | % | | | 83 | % | | | 112 | % | | | 112 | % | | | 101 | % |
| | | | | |
Net assets, end of year (in thousands) | | | $ 70 | | | | $ 40 | | | | $ 147 | | | | $ 124 | | | | $ 19 | |
| | | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.30 | % | | | 2.26 | % | | | 2.31 | % | | | 2.22 | % | | | 2.47 | % |
Total expenses after reimbursements | | | 1.97 | % | | | 1.99 | % | | | 2.00 | % | | | 2.00 | % | | | 2.00 | % |
| | | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 3.35 | % | | | 2.71 | % | | | 3.41 | % | | | 3.77 | % | | | 1.87 | % |
Net investment income after reimbursements | | | 3.68 | % | | | 2.98 | % | | | 3.72 | % | | | 3.99 | % | | | 2.34 | % |
See accompanying notes to the financial statements.
34
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
Ashmore Emerging Markets Local Currency Bond
Fund | | | | | | | | | | | | | | | |
| | | |
| | | | | | Institutional Class | | | | |
| | | | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | |
| | | | |
| | | | | |
Net asset value at beginning of year | | | $ 6.80 | | | | $ 8.73 | | | | $ 9.45 | | | | $ 10.18 | | | | $ 9.76 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.33 | 1 | | | 0.31 | | | | 0.43 | 1 | | | 0.49 | 1 | | | 0.37 | 1 |
Net realized and unrealized gain (loss) | | | 0.51 | | | | (1.93 | ) | | | (0.71 | ) | | | (0.78 | ) | | | 0.42 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total from investment operations | | | 0.84 | | | | (1.62 | ) | | | (0.28 | ) | | | (0.29 | ) | | | 0.79 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | — | | | | — | | | | — | | | | (0.24 | ) | | | (0.37 | ) |
From net realized gain | | | — | | | | — | | | | — | | | | (0.01 | ) | | | — | |
Tax return of capital | | | (0.33 | ) | | | (0.31 | ) | | | (0.44 | ) | | | (0.19 | ) | | | — | 2 |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.33 | ) | | | (0.31 | ) | | | (0.44 | ) | | | (0.44 | ) | | | (0.37 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value at end of year | | | $ 7.31 | | | | $ 6.80 | | | | $ 8.73 | | | | $ 9.45 | | | | $ 10.18 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return3 | | | 12.69 | % | | | (18.91 | %) | | | (3.04 | %) | | | (3.02 | %) | | | 8.39 | % |
| | | | | |
Portfolio turnover rate4 | | | 83 | % | | | 83 | % | | | 112 | % | | | 112 | % | | | 101 | % |
| | | | | |
Net assets, end of year (in thousands) | | | $80,803 | | | | $79,492 | | | | $101,363 | | | | $82,543 | | | | $72,673 | |
| | | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 1.30 | % | | | 1.26 | % | | | 1.32 | % | | | 1.22 | % | | | 1.39 | % |
Total expenses after reimbursements | | | 0.97 | % | | | 0.97 | % | | | 0.97 | % | | | 0.97 | % | | | 0.97 | % |
| | | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 4.35 | % | | | 3.78 | % | | | 4.34 | % | | | 4.64 | % | | | 3.31 | % |
Net investment income after reimbursements | | | 4.68 | % | | | 4.07 | % | | | 4.69 | % | | | 4.89 | % | | | 3.73 | % |
| 1 | Per share amounts are based on average number of shares outstanding during the period. |
| 2 | Amount is less than $0.005 per share. |
| 3 | Assumes investment at net asset value at the beginning of the year, reinvestment of all distributions at net asset value on distribution date, and a complete redemption of the investment at net asset value at the end of the year excluding the impact of sales charges. |
| 4 | The portfolio turnover rate is calculated by dividing the lesser of the 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. |
See accompanying notes to the financial statements.
35
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Corporate Debt Fund | | | | | | | | | | | | | | | |
| | | | | |
| | | | | | | | | Class A | | | | | | | |
| | | | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | |
| | | | |
| | | | | |
Net asset value at beginning of year | | | $ 7.66 | | | | $ 8.94 | | | | $ 9.25 | | | | $ 9.69 | | | | $ 9.09 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.70 | | | | 0.74 | | | | 0.55 | 1 | | | 0.51 | 1 | | | 0.67 | 1 |
Net realized and unrealized gain (loss) | | | 0.21 | | | | (1.21 | ) | | | (0.31 | ) | | | (0.35 | ) | | | 0.67 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total from investment operations | | | 0.91 | | | | (0.47 | ) | | | 0.24 | | | | 0.16 | | | | 1.34 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.65 | ) | | | (0.67 | ) | | | (0.55 | ) | | | (0.52 | ) | | | (0.69 | ) |
From net realized gain | | | — | | | | (0.06 | ) | | | — | | | | (0.07 | ) | | | (0.05 | ) |
Tax return of capital | | | — | | | | (0.08 | ) | | | — | | | | (0.01 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.65 | ) | | | (0.81 | ) | | | (0.55 | ) | | | (0.60 | ) | | | (0.74 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value at end of year | | | $ 7.92 | | | | $ 7.66 | | | | $ 8.94 | | | | $ 9.25 | | | | $ 9.69 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | 12.92 | % | | | (5.27 | %) | | | 2.53 | % | | | 1.63 | % | | | 15.54 | % |
| | | | | |
Portfolio turnover rate3 | | | 81 | % | | | 90 | % | | | 82 | % | | | 49 | % | | | 50 | % |
| | | | | |
Net assets, end of year (in thousands) | | | $11,466 | | | | $7,280 | | | | $1,704 | | | | $2,852 | | | | $ 485 | |
| | | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 1.57 | % | | | 1.55 | % | | | 1.53 | % | | | 1.71 | % | | | 2.89 | % |
Total expenses after reimbursements | | | 1.42 | % | | | 1.42 | % | | | 1.45 | % | | | 1.45 | % | | | 1.45 | % |
| | | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 8.88 | % | | | 8.77 | % | | | 5.79 | % | | | 5.15 | % | | | 5.19 | % |
Net investment income after reimbursements | | | 9.03 | % | | | 8.90 | % | | | 5.87 | % | | | 5.41 | % | | | 6.63 | % |
See accompanying notes to the financial statements.
36
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Corporate Debt Fund
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | | | |
| | | Year Ended
October 31, 2016 | | | Year Ended
October 31, 2015 | | | Year Ended
October 31, 2014 | | | Year Ended
October 31, 2013 | | | Year Ended
October 31, 2012 | |
| | | | | |
Net asset value at beginning of year | | | $ 7.66 | | | | $ 8.95 | | | | $ 9.25 | | | | $ 9.70 | | | | $ 9.09 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.63 | | | | 0.64 | | | | 0.48 | 1 | | | 0.44 | 1 | | | 0.60 | 1 |
Net realized and unrealized gain (loss) | | | 0.22 | | | | (1.18 | ) | | | (0.30 | ) | | | (0.36 | ) | | | 0.68 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total from investment operations | | | 0.85 | | | | (0.54 | ) | | | 0.18 | | | | 0.08 | | | | 1.28 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.60 | ) | | | (0.62 | ) | | | (0.48 | ) | | | (0.45 | ) | | | (0.62 | ) |
From net realized gain | | | — | | | | (0.06 | ) | | | — | | | | (0.07 | ) | | | (0.05 | ) |
Tax return of capital | | | — | | | | (0.07 | ) | | | — | | | | (0.01 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.60 | ) | | | (0.75 | ) | | | (0.48 | ) | | | (0.53 | ) | | | (0.67 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value at end of year | | | $ 7.91 | | | | $ 7.66 | | | | $ 8.95 | | | | $ 9.25 | | | | $ 9.70 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | 11.99 | % | | | (6.04 | %) | | | 1.87 | % | | | 0.80 | % | | | 14.78 | % |
| | | | | |
Portfolio turnover rate3 | | | 81 | % | | | 90 | % | | | 82 | % | | | 49 | % | | | 50 | % |
| | | | | |
Net assets, end of year (in thousands) | | | $6,010 | | | | $3,226 | | | | $ 421 | | | | $ 150 | | | | $ 27 | |
| | | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.32 | % | | | 2.30 | % | | | 2.28 | % | | | 2.46 | % | | | 3.60 | % |
Total expenses after reimbursements | | | 2.17 | % | | | 2.17 | % | | | 2.20 | % | | | 2.20 | % | | | 2.20 | % |
| | | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 8.16 | % | | | 8.13 | % | | | 5.15 | % | | | 4.42 | % | | | 4.73 | % |
Net investment income after reimbursements | | | 8.31 | % | | | 8.26 | % | | | 5.23 | % | | | 4.68 | % | | | 6.13 | % |
See accompanying notes to the financial statements.
37
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Corporate Debt Fund
| | | | | | | | | | | | | | | | | | | | |
| | | | | | Institutional Class | | | | |
| | | | | |
| | | Year Ended October 31, 2016 | | | Year Ended October 31, 2015 | | | Year Ended October 31, 2014 | | | Year Ended October 31, 2013 | | | Year Ended October 31, 2012 | |
| | | | | |
Net asset value at beginning of year | | | $ 7.98 | | | | $ 9.30 | | | | $ 9.61 | | | | $ 10.07 | | | | $ 9.43 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.72 | | | | 0.75 | | | | 0.59 | 1 | | | 0.55 | 1 | | | 0.73 | 1 |
Net realized and unrealized gain (loss) | | | 0.24 | | | | (1.22 | ) | | | (0.31 | ) | | | (0.36 | ) | | | 0.70 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total from investment operations | | | 0.96 | | | | (0.47 | ) | | | 0.28 | | | | 0.19 | | | | 1.43 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.70 | ) | | | (0.71 | ) | | | (0.59 | ) | | | (0.57 | ) | | | (0.74 | ) |
From net realized gain | | | — | | | | (0.06 | ) | | | — | | | | (0.07 | ) | | | (0.05 | ) |
Tax return of capital | | | — | | | | (0.08 | ) | | | — | | | | (0.01 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.70 | ) | | | (0.85 | ) | | | (0.59 | ) | | | (0.65 | ) | | | (0.79 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value at end of year | | | $ 8.24 | | | | $ 7.98 | | | | $ 9.30 | | | | $ 9.61 | | | | $ 10.07 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return2 | | | 13.02 | % | | | (5.08 | %) | | | 2.91 | % | | | 1.91 | % | | | 15.97 | % |
| | | | | |
Portfolio turnover rate3 | | | 81 | % | | | 90 | % | | | 82 | % | | | 49 | % | | | 50 | % |
| | | | | |
Net assets, end of year (in thousands) | | | $215,990 | | | | $237,044 | | | | $364,775 | | | | $183,567 | | | | $17,651 | |
| | | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 1.32 | % | | | 1.30 | % | | | 1.28 | % | | | 1.46 | % | | | 2.66 | % |
Total expenses after reimbursements | | | 1.17 | % | | | 1.17 | % | | | 1.17 | % | | | 1.17 | % | | | 1.17 | % |
| | | | | |
Net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income before reimbursements | | | 9.20 | % | | | 8.63 | % | | | 6.14 | % | | | 5.37 | % | | | 6.16 | % |
Net investment income after reimbursements | | | 9.35 | % | | | 8.76 | % | | | 6.25 | % | | | 5.66 | % | | | 7.65 | % |
| 1 | Per share amounts are based on average number of shares outstanding during the period. |
| 2 | Assumes investment at net asset value at the beginning of the year, reinvestment of all distributions at net asset value on distribution date, and a complete redemption of the investment at net asset value at the end of the year excluding the impact of sales charges. |
| 3 | The portfolio turnover rate is calculated by dividing the lesser of cost of purchases or proceeds from sales of long term portfolio securities by the monthly average of the value of the long term portfolio securities. |
See accompanying notes to the financial statements.
38
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Short Duration Fund
| | | | | | | | | | | | |
| | | | | | Class A | | | | |
| | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Period Ended
October 31,
20141 | |
| | | |
Net asset value at beginning of period | | | $ 9.57 | | | | $ 9.99 | | | | $ 10.00 | |
| | | |
Income (loss) from investment operations: | | | | | | | | | | | | |
Net investment income (loss) | | | 1.02 | | | | 0.67 | | | | 0.05 | |
Net realized and unrealized gain (loss) | | | 0.78 | | | | (0.41) | | | | (0.01) | |
| | | | | | | | | | | | |
| | | |
Total from investment operations | | | 1.80 | | | | 0.26 | | | | 0.04 | |
| | | |
Less distributions: | | | | | | | | | | | | |
| | | |
From net investment income | | | (1.00) | | | | (0.67) | | | | (0.05) | |
From net realized gain | | | — | | | | — | | | | — | |
Tax return of capital | | | — | | | | (0.01) | | | | — | |
| | | | | | | | | | | | |
| | | |
Total distributions | | | (1.00) | | | | (0.68) | | | | (0.05) | |
| | | | | | | | | | | | |
| | | |
Net asset value at end of period | | | $ 10.37 | | | | $ 9.57 | | | | $ 9.99 | |
| | | | | | | | | | | | |
| | | |
Total return2 | | | 19.82% | | | | 2.98% | | | | 0.45% | |
| | | |
Portfolio turnover rate3 | | | 73% | | | | 38% | | | | 19% | |
| | | |
Net assets, end of period (in thousands) | | | $10,395 | | | | $425 | | | | $201 | |
| | | |
Ratios to average net assets:4 | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | |
Total expenses before reimbursements | | | 1.11% | | | | 1.65% | | | | 2.93% | |
Total expenses after reimbursements | | | 0.92% | | | | 0.93% | | | | 0.95% | |
| | | |
Net investment income to average net assets: | | | | | | | | | | | | |
Net investment income before reimbursements | | | 10.63% | | | | 6.50% | | | | 3.35% | |
Net investment income after reimbursements | | | 10.82% | | | | 7.22% | | | | 5.33% | |
See accompanying notes to the financial statements.
39
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Short Duration Fund
| | | | | | | | | | | | |
| | | Institutional Class | |
| | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Period Ended
October 31,
20145 | |
| | | |
Net asset value at beginning of period | | | $ 9.40 | | | | $ 9.81 | | | | $ 10.00 | |
| | | |
Income (loss) from investment operations: | | | | | | | | | | | | |
Net investment income (loss) | | | 1.07 | | | | 0.68 | | | | 0.16 | |
Net realized and unrealized gain (loss) | | | 0.72 | | | | (0.39) | | | | (0.19) | |
| | | | | | | | | | | | |
| | | |
Total from investment operations | | | 1.79 | | | | 0.29 | | | | (0.03) | |
| | | |
Less distributions: | | | | | | | | | | | | |
| | | |
From net investment income | | | (1.00) | | | | (0.69) | | | | (0.16) | |
From net realized gain | | | — | | | | — | | | | — | |
Tax return of capital | | | — | | | | (0.01) | | | | — | |
| | | | | | | | | | | | |
| | | |
Total distributions | | | (1.00) | | | | (0.70) | | | | (0.16) | |
| | | | | | | | | | | | |
| | | |
Net asset value at end of period | | | $ 10.19 | | | | $ 9.40 | | | | $ 9.81 | |
| | | | | | | | | | | | |
| | | |
Total return2 | | | 20.18% | | | | 3.28% | | | | (0.25%) | |
| | | |
Portfolio turnover rate3 | | | 73% | | | | 38% | | | | 19% | |
| | | |
Net assets, end of period (in thousands) | |
| $120,081
|
| | | $26,918 | | | | $21,275 | |
| | | |
Ratios to average net assets:4 | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | |
Total expenses before reimbursements | | | 0.89% | | | | 1.41% | | | | 2.94% | |
Total expenses after reimbursements | | | 0.67% | | | | 0.67% | | | | 0.67% | |
| | | |
Net investment income to average net assets: | | | | | | | | | | | | |
Net investment income before reimbursements | | | 11.66% | | | | 6.61% | | | | 2.58% | |
Net investment income after reimbursements | | | 11.88% | | | | 7.35% | | | | 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.
40
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Equity Opportunities Fund
| | | | |
| | | Class A | |
| |
| | | Period Ended
October 31,
20161 | |
| |
Net asset value at beginning of period | | | $ 10.00 | |
| |
Income (loss) from investment operations: | | | | |
Net investment income (loss) | | | 0.24 | |
Net realized and unrealized gain (loss) | | | 0.62 | |
| | | | |
| |
Total from investment operations | | | 0.86 | |
| |
Less distributions: | | | | |
| |
From net investment income | | | (0.13) | |
Tax return of capital | | | — | |
| | | | |
| |
Total distributions | | | (0.13) | |
| | | | |
| |
Net asset value at end of period | | | $ 10.73 | |
| | | | |
| |
Total return2 | | | 8.69% | |
| |
Portfolio turnover rate3 | | | 15% | |
| |
Net assets, end of period (in thousands) | | | $11 | |
| |
Ratios to average net assets:4,5 | | | | |
Total expenses to average net assets: | | | | |
Total expenses before reimbursements | | | 4.92% | |
Total expenses after reimbursements | | | 0.30% | |
| |
Net investment income (loss) to average net assets: | | | | |
Net investment loss before reimbursements | | | (3.45%) | |
Net investment income after reimbursements | | | 1.17% | |
See accompanying notes to the financial statements.
41
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | |
Ashmore Emerging Markets Equity Opportunities Fund | | | |
| | | Class C | |
| |
| | | Period Ended | |
| | | October 31, | |
| | | 20161 | |
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) | | | 0.65 | |
| | | | |
| |
Total from investment operations | | | 0.79 | |
| |
Less distributions: | | | | |
| |
From net investment income | | | (0.11) | |
Tax return of capital | | | — | |
| | | | |
| |
Total distributions | | | (0.11) | |
| | | | |
Net asset value at end of period | | | $ 10.68 | |
| | | | |
| |
Total return2 | | | 7.94% | |
| |
Portfolio turnover rate3 | | | 15% | |
| |
Net assets, end of period (in thousands) | | | $11 | |
| |
Ratios to average net assets:4,5 | | | | |
Total expenses to average net assets: | | | | |
Total expenses before reimbursements | | | 5.66% | |
Total expenses after reimbursements | | | 1.05% | |
| |
Net investment income (loss) to average net assets: | | | | |
Net investment loss before reimbursements | | | (4.19%) | |
Net investment income after reimbursements | | | 0.42% | |
See accompanying notes to the financial statements.
42
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | |
Ashmore Emerging Markets Equity Opportunities Fund | | | |
| | | Institutional Class | |
| |
| | | Period Ended | |
| | | October 31, | |
| | | 20161 | |
Net asset value at beginning of period | | | $ 10.00 | |
| |
Income (loss) from investment operations: | | | | |
Net investment income (loss) | | | 0.26 | |
Net realized and unrealized gain (loss) | | | 0.62 | |
| | | | |
| |
Total from investment operations | | | 0.88 | |
| |
Less distributions: | | | | |
| |
From net investment income | | | (0.13) | |
Tax return of capital | | | — | |
| | | | |
| |
Total distributions | | | (0.13) | |
| | | | |
Net asset value at end of period | | | $ 10.75 | |
| | | | |
| |
Total return2 | | | 8.94% | |
| |
Portfolio turnover rate3 | | | 15% | |
| |
Net assets, end of period (in thousands) | | | $5,532 | |
| |
Ratios to average net assets:4,5 | | | | |
Total expenses to average net assets: | | | | |
Total expenses before reimbursements | | | 4.67% | |
Total expenses after reimbursements | | | 0.05% | |
| |
Net investment income (loss) to average net assets: | | | | |
Net investment loss before reimbursements | | | (3.20%) | |
Net investment income after reimbursements | | | 1.42% | |
| 1 | Class A, Class C and the Institutional Class commenced investment operations on November 23, 2015. |
| 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 | Net investment income and expenses include only the net investment income earned or expenses charged directly to the Fund and do not include net investment income earned or expenses charged to the underlying funds in which the Fund invests a portion of its assets. |
See accompanying notes to the financial statements.
43
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Small-Cap Equity Fund
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Class A | | | | | | | |
| | | | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Period Ended
October 31,
20121 | |
| | | | |
Net asset value at beginning of period | | | $ 7.92 | | | | $ 9.35 | | | | $10.61 | | | | $ 9.77 | | | | $10.00 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | (0.01 | ) | | | 0.16 | | | | 0.01 | 2 | | | 0.08 | 2 | | | 0.02 | 2 |
Net realized and unrealized gain (loss) | | | 0.85 | | | | (1.12 | ) | | | (0.42 | ) | | | 1.31 | | | | (0.20 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total from investment operations | | | 0.84 | | | | (0.96 | ) | | | (0.41 | ) | | | 1.39 | | | | (0.18 | ) |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.16 | ) | | | (0.08 | ) | | | (0.01 | ) | | | (0.03 | ) | | | (0.05 | ) |
From net realized gain | | | — | | | | (0.39 | ) | | | (0.84 | ) | | | (0.52 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.16 | ) | | | (0.47 | ) | | | (0.85 | ) | | | (0.55 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value at end of period | | | $ 8.60 | | | | $ 7.92 | | | | $ 9.35 | | | | $10.61 | | | | $ 9.77 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return3 | | | 10.84 | % | | | (10.32 | %) | | | (3.93 | %) | | | 14.65 | % | | | (1.73 | %) |
| | | | | |
Portfolio turnover rate4 | | | 104 | % | | | 105 | % | | | 104 | % | | | 113 | % | | | 94 | % |
| | | | | |
Net assets, end of period (in thousands) | | | $ 524 | | | | $ 259 | | | | $ 332 | | | | $ 265 | | | | $ 238 | |
| | | | | |
Ratios to average net assets:5 | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.39 | % | | | 2.33 | % | | | 2.53 | % | | | 2.35 | % | | | 3.43 | % |
Total expenses after reimbursements | | | 1.77 | % | | | 1.78 | % | | | 1.80 | % | | | 1.80 | % | | | 1.80 | % |
| | | | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) before reimbursements | | | (0.09 | %) | | | 0.96 | % | | | (0.65 | %) | | | 0.25 | % | | | (1.15 | %) |
Net investment income after reimbursements | | | 0.53 | % | | | 1.51 | % | | | 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
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Period Ended
October 31,
20126 | |
| | | | |
Net asset value at beginning of period | | | $ 8.40 | | | | $ 9.96 | | | | $11.33 | | | | $10.48 | | | | $10.00 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | (0.12 | ) | | | 0.10 | | | | (0.05 | )2 | | | (0.06 | )2 | | | (0.01 | )2 |
Net realized and unrealized gain (loss) | | | 0.95 | | | | (1.19 | ) | | | (0.47 | ) | | | 1.46 | | | | 0.54 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total from investment operations | | | 0.83 | | | | (1.09 | ) | | | (0.52 | ) | | | 1.40 | | | | 0.53 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.12 | ) | | | (0.08 | ) | | | (0.01 | ) | | | (0.03 | ) | | | (0.05 | ) |
From net realized gain | | | — | | | | (0.39 | ) | | | (0.84 | ) | | | (0.52 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.12 | ) | | | (0.47 | ) | | | (0.85 | ) | | | (0.55 | ) | | | (0.05 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value at end of period | | | $ 9.11 | | | | $ 8.40 | | | | $ 9.96 | | | | $11.33 | | | | $10.48 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return3 | | | 10.01 | % | | | (11.02 | %) | | | (4.71 | %) | | | 13.93 | % | | | 5.17 | % |
| | | | | |
Portfolio turnover rate4 | | | 104 | % | | | 105 | % | | | 104 | % | | | 113 | % | | | 94 | % |
| | | | | |
Net assets, end of period (in thousands) | | | $ 176 | | | | $ 311 | | | | $ 77 | | | | $ 12 | | | | $ 1 | |
| | | | | |
Ratios to average net assets:5 | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 3.13 | % | | | 3.09 | % | | | 3.60 | % | | | 3.10 | % | | | 5.12 | % |
Total expenses after reimbursements | | | 2.52 | % | | | 2.52 | % | | | 2.55 | % | | | 2.55 | % | | | 2.55 | % |
| | | | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) before reimbursements | | | (0.89 | %) | | | 1.81 | % | | | (1.53 | %) | | | (1.13 | %) | | | (3.35 | %) |
Net investment income (loss) after reimbursements | | | (0.28 | %) | | | 2.38 | % | | | (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
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | |
| | | | |
Net asset value at beginning of year | | | $ 10.01 | | | | $ 11.63 | | | | $ 12.96 | | | | $ 11.79 | | | | $ 11.58 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.04 | | | | 0.20 | | | | 0.02 | 2 | | | 0.02 | 2 | | | 0.05 | 2 |
Net realized and unrealized gain (loss) | | | 1.07 | | | | (1.35 | ) | | | (0.50 | ) | | | 1.70 | | | | 0.25 | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 1.11 | | | | (1.15 | ) | | | (0.48 | ) | | | 1.72 | | | | 0.30 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.18 | ) | | | (0.08 | ) | | | (0.01 | ) | | | (0.03 | ) | | | (0.05 | ) |
From net realized gain | | | — | | | | (0.39 | ) | | | (0.84 | ) | | | (0.52 | ) | | | (0.04 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.18 | ) | | | (0.47 | ) | | | (0.85 | ) | | | (0.55 | ) | | | (0.09 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value at end of year | | | $ 10.94 | | | | $ 10.01 | | | | $ 11.63 | | | | $ 12.96 | | | | $ 11.79 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return3 | | | 11.21 | % | | | (9.91 | %) | | | (3.74 | %) | | | 15.04 | % | | | 2.61 | % |
| | | | | |
Portfolio turnover rate4 | | | 104 | % | | | 105 | % | | | 104 | % | | | 113 | % | | | 94 | % |
| | | | | |
Net assets, end of year (in thousands) | | | $33,626 | | | | $42,486 | | | | $48,909 | | | | $30,370 | | | | $13,359 | |
| | | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.10 | % | | | 2.08 | % | | | 2.39 | % | | | 2.11 | % | | | 3.43 | % |
Total expenses after reimbursements | | | 1.52 | % | | | 1.52 | % | | | 1.52 | % | | | 1.52 | % | | | 1.52 | % |
| | | | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) before reimbursements | | | (0.22 | %) | | | 1.24 | % | | | (0.70 | %) | | | (0.42 | %) | | | (1.46 | %) |
Net investment income after reimbursements | | | 0.36 | % | | | 1.80 | % | | | 0.17 | % | | | 0.17 | % | | | 0.45 | % |
| 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. |
See accompanying notes to the financial statements.
46
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
Ashmore Emerging Markets Frontier Equity Fund
| | | | | | | | | | | | |
| | | | | | Class A | | | | |
| | | |
| | | Year Ended
October 31, 2016 | | | Year Ended
October 31, 2015 | | | Period Ended
October 31, 20141 | |
| | | | |
Net asset value at beginning of period | | | $ 7.83 | | | | $ 10.19 | | | | $ 10.00 | |
| | | |
Income (loss) from investment operations: | | | | | | | | | | | | |
Net investment income (loss) | | | 0.36 | | | | 0.10 | 2 | | | (0.03) | |
Net realized and unrealized gain (loss) | | | (0.09) | | | | (1.45) | | | | 0.27 | |
| | | | | | | | | | | | |
Total from investment operations | | | 0.27 | | | | (1.35) | | | | 0.24 | |
| | | |
Less distributions: | | | | | | | | | | | | |
| | | |
From net investment income | | | (0.12) | | | | (0.15) | | | | (0.05) | |
From net realized gain | | | — | | | | (0.86) | | | | — | |
| | | | | | | | | | | | |
| | | |
Total distributions | | | (0.12) | | | | (1.01) | | | | (0.05) | |
| | | | | | | | | | | | |
Net asset value at end of period | | | $ 7.98 | | | | $ 7.83 | | | | $ 10.19 | |
| | | | | | | | | | | | |
| | | |
Total return3 | | | 3.36% | | | | (13.68%) | | | | 2.43% | |
| | | |
Portfolio turnover rate4 | | | 76% | | | | 91% | | | | 157% | |
| | | |
Net assets, end of period (in thousands) | | | $2,154 | | | | $45 | | | | $9 | |
| | | |
Ratios to average net assets:5 | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.45% | | | | 2.73% | | | | 6.90% | |
Total expenses after reimbursements | | | 1.77% | | | | 1.79% | | | | 1.80% | |
| | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | |
Net investment income (loss) before reimbursements | | | 4.34% | | | | 0.25% | | | | (5.89%) | |
Net investment income (loss) after reimbursements | | | 5.02% | | | | 1.19% | | | | (0.79%) | |
See accompanying notes to the financial statements.
47
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | |
| Ashmore Emerging Markets Frontier Equity Fund | | | |
| | | Class C | |
| | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Period Ended
October 31,
20141 | |
| | | | |
| | | |
Net asset value at beginning of period | | | $ 7.73 | | | | $ 10.15 | | | | $ 10.00 | |
| | | |
Income (loss) from investment operations: | | | | | | | | | | | | |
Net investment income (loss) | | | 0.08 | | | | (0.05)2 | | | | (0.83) | |
Net realized and unrealized gain (loss) | | | 0.12 | | | | (1.36) | | | | 1.03 | |
| | | | | | | | | | | | |
| | | |
Total from investment operations | | | 0.20 | | | | (1.41) | | | | 0.20 | |
| | | |
Less distributions: | | | | | | | | | | | | |
| | | |
From net investment income | | | (0.07) | | | | (0.15) | | | | (0.05) | |
From net realized gain | | | — | | | | (0.86) | | | | — | |
| | | | | | | | | | | | |
| | | |
Total distributions | | | (0.07) | | | | (1.01) | | | | (0.05) | |
| | | | | | | | | | | | |
| | | |
Net asset value at end of period | | | $ 7.86 | | | | $ 7.73 | | | | $ 10.15 | |
| | | | | | | | | | | | |
| | | |
Total return3 | | | 2.61% | | | | (14.51%) | | | | 2.02% | |
| | | |
Portfolio turnover rate4 | | | 76% | | | | 91% | | | | 157% | |
| | | |
Net assets, end of period (in thousands) | | | $62 | | | | $53 | | | | $1 | |
| | | |
Ratios to average net assets:5 | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | |
Total expenses before reimbursements | | | 3.05% | | | | 3.45% | | | | 7.71% | |
Total expenses after reimbursements | | | 2.52% | | | | 2.52% | | | | 2.55% | |
| | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | |
Net investment income (loss) before reimbursements | | | 0.39% | | | | (1.53%) | | | | (6.42%) | |
Net investment income (loss) after reimbursements | | | 0.92% | | | | (0.60%) | | | | (1.26%) | |
See accompanying notes to the financial statements.
48
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | |
| Ashmore Emerging Markets Frontier Equity Fund | | | |
| | | Institutional Class | |
| | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Period Ended
October 31,
20146 | |
| | | | |
| | | |
Net asset value at beginning of period | | | $ 8.88 | | | | $ 11.35 | | | | $ 10.00 | |
| | | |
Income (loss) from investment operations: | | | | | | | | | | | | |
Net investment income (loss) | | | 0.18 | | | | 0.122 | | | | 0.14 | |
Net realized and unrealized gain (loss) | | | 0.13 | | | | (1.58) | | | | 1.32 | |
| | | | | | | | | | | | |
| | | |
Total from investment operations | | | 0.31 | | | | (1.46) | | | | 1.46 | |
| | | |
Less distributions: | | | | | | | | | | | | |
| | | |
From net investment income | | | (0.13) | | | | (0.15) | | | | (0.11) | |
From net realized gain | | | — | | | | (0.86) | | | | — | |
| | | | | | | | | | | | |
| | | |
Total distributions | | | (0.13) | | | | (1.01) | | | | (0.11) | |
| | | | | | | | | | | | |
| | | |
Net asset value at end of period | | | $ 9.06 | | | | $ 8.88 | | | | $ 11.35 | |
| | | | | | | | | | | | |
| | | |
Total return3 | | | 3.58% | | | | (13.29%) | | | | 14.69% | |
| | | |
Portfolio turnover rate4 | | | 76% | | | | 91% | | | | 157% | |
| | | |
Net assets, end of period (in thousands) | | | $52,711 | | | | $49,952 | | | | $7,280 | |
| | | |
Ratios to average net assets:5 | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.05% | | | | 2.46% | | | | 6.09% | |
Total expenses after reimbursements | | | 1.52% | | | | 1.52% | | | | 1.52% | |
| | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | |
Net investment income (loss) before reimbursements | | | 1.48% | | | | 0.34% | | | | (3.68%) | |
Net investment income after reimbursements | | | 2.01% | | | | 1.28% | | | | 0.89% | |
| 1 | Class A and Class C commenced investment operations on May 7, 2014. |
| 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 November 5, 2013. |
See accompanying notes to the financial statements.
49
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Value Fund1 | | | | | | | | | | | | | | | |
| |
| | | Class A | |
| | | | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Period Ended
October 31,
20122 | |
| | | | |
| | | | | |
Net asset value at beginning of period | | | $ 7.29 | | | | $ 9.24 | | | | $ 9.66 | | | | $ 9.01 | | | | $10.00 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.06 | | | | 0.03 | | | | 0.06 | | | | 0.08 | 3 | | | 0.08 | 3 |
Net realized and unrealized gain (loss) | | | 1.05 | | | | (1.92 | ) | | | (0.40 | ) | | | 0.64 | | | | (0.98 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total from investment operations | | | 1.11 | | | | (1.89 | ) | | | (0.34 | ) | | | 0.72 | | | | (0.90 | ) |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.06 | ) | | | (0.06 | ) | | | (0.08 | ) | | | (0.06 | ) | | | (0.09 | ) |
Tax return of capital | | | — | | | | — | 4 | | | — | | | | (0.01 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.06 | ) | | | (0.06 | ) | | | (0.08 | ) | | | (0.07 | ) | | | (0.09 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value at end of period | | | $ 8.34 | | | | $ 7.29 | | | | $ 9.24 | | | | $ 9.66 | | | | $ 9.01 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return5 | | | 15.36 | % | | | (20.52 | %) | | | (3.58 | %) | | | 8.11 | % | | | (8.94 | %) |
| | | | | |
Portfolio turnover rate6 | | | 119 | % | | | 106 | % | | | 130 | % | | | 92 | % | | | 95 | % |
| | | | | |
Net assets, end of period (in thousands) | | | $ 36 | | | | $ 24 | | | | $ 30 | | | | $ 28 | | | | $ 1 | |
| | | | | |
Ratios to average net assets:7 | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.96 | % | | | 3.56 | % | | | 3.62 | % | | | 3.01 | % | | | 4.40 | % |
Total expenses after reimbursements | | | 1.42 | % | | | 1.43 | % | | | 1.45 | % | | | 1.45 | % | | | 1.45 | % |
| | | | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss before reimbursements | | | (0.74 | %) | | | (1.82 | %) | | | (1.45 | %) | | | (0.70 | %) | | | (1.60 | %) |
Net investment income after reimbursements | | | 0.80 | % | | | 0.31 | % | | | 0.72 | % | | | 0.86 | % | | | 1.35 | % |
See accompanying notes to the financial statements.
50
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Value Fund1 | | | | | | | | | | | | | | | |
| |
| | | Class C | |
| | | | | |
| | | Period Ended
August 9, 2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Period Ended
October 31,
2012 | |
| | | | |
| | | | | |
Net asset value at beginning of period | | | $ 8.17 | | | | $ 10.46 | | | | $ 11.00 | | | | $ 10.32 | | | | $ 10.00 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.01 | | | | (0.04 | ) | | | (0.01 | ) | | | (0.03 | )3 | | | (0.01 | )3 |
Net realized and unrealized gain (loss) | | | 0.81 | | | | (2.19 | ) | | | (0.45 | ) | | | 0.78 | | | | 0.36 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total from investment operations | | | 0.82 | | | | (2.23 | ) | | | (0.46 | ) | | | 0.75 | | | | 0.35 | |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.03 | ) | | | (0.06 | ) | | | (0.08 | ) | | | (0.06 | ) | | | (0.03 | ) |
Tax return of capital | | | — | | | | — | 4 | | | — | | | | (0.01 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.03 | ) | | | (0.06 | ) | | | (0.08 | ) | | | (0.07 | ) | | | (0.03 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value at end of period | | | $ 8.96 | 8 | | | $ 8.17 | | | | $10.46 | | | | $11.00 | | | | $10.32 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return5 | | | 10.02 | % | | | (21.38 | %) | | | (4.24 | %) | | | 7.58 | % | | | 3.26 | % |
| | | | | |
Portfolio turnover rate6 | | | 119 | % | | | 106 | % | | | 130 | % | | | 92 | % | | | 95 | % |
| | | | | |
Net assets, end of period (in thousands) | | | $ 1 | | | | $ 1 | | | | $ 1 | | | | $ 1 | | | | $ 1 | |
| | | | | |
Ratios to average net assets:7 | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 3.86 | % | | | 4.31 | % | | | 4.34 | % | | | 3.77 | % | | | 5.40 | % |
Total expenses after reimbursements | | | 2.22 | % | | | 2.18 | % | | | 2.20 | % | | | 2.20 | % | | | 2.20 | % |
| | | | | |
Net investment loss to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss before reimbursements | | | (1.39 | %) | | | (2.57 | %) | | | (2.25 | %) | | | (1.81 | %) | | | (3.82 | %) |
Net investment income (loss) after reimbursements | | | 0.25 | % | | | (0.44 | %) | | | (0.11 | %) | | | (0.24 | %) | | | (0.62 | %) |
See accompanying notes to the financial statements.
51
ASHMORE FUNDS
FINANCIAL HIGHLIGHTS
| | | | | | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Value Fund1 | | | | | | | | | | | | | | | |
| |
| | | Institutional Class | |
| | | | | |
| | | Year Ended
October 31,
2016 | | | Year Ended
October 31,
2015 | | | Year Ended
October 31,
2014 | | | Year Ended
October 31,
2013 | | | Year Ended
October 31,
2012 | |
| | | | |
| | | | | |
Net asset value at beginning of year | | | $ 7.02 | | | | $ 8.88 | | | | $ 9.27 | | | | $ 8.62 | | | | $ 8.81 | |
| | | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.08 | | | | 0.05 | | | | 0.08 | | | | 0.07 | 3 | | | 0.09 | 3 |
Net realized and unrealized gain (loss) | | | 1.02 | | | | (1.85 | ) | | | (0.39 | ) | | | 0.65 | | | | (0.17 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total from investment operations | | | 1.10 | | | | (1.80 | ) | | | (0.31 | ) | | | 0.72 | | | | (0.08 | ) |
| | | | | |
Less distributions: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
From net investment income | | | (0.07 | ) | | | (0.06 | ) | | | (0.08 | ) | | | (0.06 | ) | | | (0.10 | ) |
Tax return of capital | | | — | | | | — | 4 | | | — | | | | (0.01 | ) | | | (0.01 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total distributions | | | (0.07 | ) | | | (0.06 | ) | | | (0.08 | ) | | | (0.07 | ) | | | (0.11 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value at end of year | | | $ 8.05 | | | | $ 7.02 | | | | $ 8.88 | | | | $ 9.27 | | | | $ 8.62 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total return5 | | | 15.80 | % | | | (20.34 | %) | | | (3.40 | %) | | | 8.48 | % | | | (0.87 | %) |
| | | | | |
Portfolio turnover rate6 | | | 119 | % | | | 106 | % | | | 130 | % | | | 92 | % | | | 95 | % |
| | | | | |
Net assets, end of year (in thousands) | | | $9,074 | | | | $7,601 | | | | $10,304 | | | | $9,825 | | | | $8,742 | |
| | | | | |
Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses to average net assets: | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursements | | | 2.71 | % | | | 3.31 | % | | | 3.37 | % | | | 2.76 | % | | | 4.09 | % |
Total expenses after reimbursements | | | 1.17 | % | | | 1.17 | % | | | 1.17 | % | | | 1.17 | % | | | 1.17 | % |
| | | | | |
Net investment income (loss) to average net assets: | | | | | | | | | | | | | | | | | | | | |
Net investment loss before reimbursements | | | (0.46 | %) | | | (1.59 | %) | | | (1.28 | %) | | | (0.79 | %) | | | (1.84 | %) |
Net investment income after reimbursements | | | 1.08 | % | | | 0.55 | % | | | 0.92 | % | | | 0.80 | % | | | 1.08 | % |
| 1 | Formerly the Ashmore Emerging Markets Equity Fund. |
| 2 | Class A commenced investment operations on February 27, 2012. |
| 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 and represents the turnover for the entire fiscal year. |
| 7 | Annualized for periods less than one year. |
| 8 | There were no investors in Ashmore Emerging Markets Value Fund Class C at the year ended October 31, 2016. Net asset value shown represents net asset value prior to the final redemption. |
See accompanying notes to the financial statements.
52
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Debt Securities | | | | | | | | | | | | | | | | |
| | | | |
Angola (Cost $2,332,264) | | | | | | | | | | | | | | | | |
Angola (Rep of) 9.500%, 11/12/2025 | | | | | | | 1,534,000 | | | $ | 1,500,942 | | | | 0.18 | |
Angola (Rep of) Via Northern Lights III B.V. 7.000%, 08/16/2019 | | | | | | | 972,000 | | | | 971,155 | | | | 0.12 | |
| | | | | | | | | | | 2,472,097 | | | | 0.30 | |
Argentina (Cost $14,000,765) | | | | | | | | | | | | | | | | |
Argentina (Rep of) 6.875%, 04/22/2021 | | | | | | | 2,159,000 | | | | 2,336,038 | | | | 0.29 | |
Argentina (Rep of) 7.500%, 04/22/2026 | | | | | | | 2,865,000 | | | | 3,130,012 | | | | 0.39 | |
Argentina (Rep of) 8.280%, 12/31/2033 | | | | | | | 1,909,376 | | | | 2,121,409 | | | | 0.26 | |
Argentina (Rep of), FRN 2.500%, 12/31/2038 | | | | | | | 4,688,446 | | | | 3,204,553 | | | | 0.39 | |
Letras del Banco Central de la Republica Argentina 25.436%, 12/14/2016(2) | | | ARS | | | | 3,809,670 | | | | 243,781 | | | | 0.03 | |
Letras del Banco Central de la Republica Argentina 24.384%, 12/28/2016(2) | | | ARS | | | | 9,249,224 | | | | 586,638 | | | | 0.07 | |
Letras del Banco Central de la Republica Argentina 23.571%, 01/04/2017(2) | | | ARS | | | | 17,823,556 | | | | 1,125,183 | | | | 0.14 | |
Letras del Banco Central de la Republica Argentina 25.027%, 01/11/2017(2) | | | ARS | | | | 8,306,063 | | | | 521,912 | | | | 0.06 | |
YPF S.A. 8.500%, 03/23/2021 | | | | | | | 985,000 | | | | 1,083,205 | | | | 0.13 | |
| | | | | | | | | | | 14,352,731 | | | | 1.76 | |
Azerbaijan (Cost $6,681,393) | | | | | | | | | | | | | | | | |
Azerbaijan (Rep of) 4.750%, 03/18/2024 | | | | | | | 320,000 | | | | 330,535 | | | | 0.04 | |
Southern Gas Corridor CJSC 6.875%, 03/24/2026 | | | | | | | 1,530,000 | | | | 1,725,962 | | | | 0.21 | |
State Oil Co. of the Azerbaijan Republic 4.750%, 03/13/2023 | | | | | | | 4,460,000 | | | | 4,439,372 | | | | 0.55 | |
State Oil Co. of the Azerbaijan Republic 6.950%, 03/18/2030 | | | | | | | 440,000 | | | | 477,136 | | | | 0.06 | |
| | | | | | | | | | | 6,973,005 | | | | 0.86 | |
Bahrain (Cost $590,000) | | | | | | | | | | | | | | | | |
Bahrain (Rep of) 7.000%, 10/12/2028(3) | | | | | | | 590,000 | | | | 607,700 | | | | 0.07 | |
| | | | | | | | | | | 607,700 | | | | 0.07 | |
Barbados (Cost $1,013,283) | | | | | | | | | | | | | | | | |
Columbus Cable Barbados Ltd. 7.375%, 03/30/2021 | | | | | | | 955,000 | | | | 1,021,850 | | | | 0.13 | |
| | | | | | | | | | | 1,021,850 | | | | 0.13 | |
Belarus (Cost $4,956,617) | | | | | | | | | | | | | | | | |
Belarus (Rep of) 8.950%, 01/26/2018 | | | | | | | 5,030,000 | | | | 5,279,418 | | | | 0.65 | |
| | | | | | | | | | | 5,279,418 | | | | 0.65 | |
Brazil (Cost $83,454,795) | | | | | | | | | | | | | | | | |
Andrade Gutierrez International S.A. 4.000%, 04/30/2018 | | | | | | | 540,000 | | | | 440,100 | | | | 0.05 | |
Banco Nacional de Desenvolvimento Economico e Social 6.500%, 06/10/2019 | | | | | | | 2,370,000 | | | | 2,564,601 | | | | 0.31 | |
Brazil (Rep of) 4.875%, 01/22/2021 | | | | | | | 522,000 | | | | 552,276 | | | | 0.07 | |
Brazil (Rep of) 2.625%, 01/05/2023 | | | | | | | 480,000 | | | | 443,520 | | | | 0.05 | |
Brazil (Rep of) 8.875%, 04/15/2024 | | | | | | | 380,000 | | | | 485,450 | | | | 0.06 | |
Brazil (Rep of) 4.250%, 01/07/2025 | | | | | | | 2,861,000 | | | | 2,832,390 | | | | 0.35 | |
Brazil (Rep of) 6.000%, 04/07/2026 | | | | | | | 696,000 | | | | 767,340 | | | | 0.09 | |
Brazil (Rep of) 8.250%, 01/20/2034 | | | | | | | 426,000 | | | | 534,630 | | | | 0.07 | |
Brazil (Rep of) 7.125%, 01/20/2037 | | | | | | | 1,551,000 | | | | 1,768,140 | | | | 0.22 | |
Brazil (Rep of) 5.625%, 01/07/2041 | | | | | | | 398,000 | | | | 384,070 | | | | 0.05 | |
Brazil (Rep of) 5.000%, 01/27/2045 | | | | | | | 3,015,000 | | | | 2,660,737 | | | | 0.33 | |
See accompanying notes to the financial statements.
53
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Brazil - (continued) | | | | | | | | | | | | | | | | |
Brazil (Rep of) 5.625%, 02/21/2047 | | | | | | | 1,409,000 | | | $ | 1,349,117 | | | | 0.17 | |
Brazil Letras do Tesouro Nacional 12.041%, 07/01/2018(2) | | | BRL | | | | 578,000 | | | | 150,636 | | | | 0.02 | |
Brazil Letras do Tesouro Nacional 10.489%, 01/01/2019(2) | | | BRL | | | | 108,871,000 | | | | 26,978,895 | | | | 3.31 | |
Brazil Letras do Tesouro Nacional 9.157%, 01/01/2020(2) | | | BRL | | | | 39,541,000 | | | | 8,821,991 | | | | 1.08 | |
Brazil Notas do Tesouro Nacional Serie F 10.000%, 01/01/2021 | | | BRL | | | | 44,240,000 | | | | 13,298,447 | | | | 1.63 | |
Brazil Notas do Tesouro Nacional Serie F 10.000%, 01/01/2023 | | | BRL | | | | 29,604,000 | | | | 8,758,487 | | | | 1.08 | |
Brazil Notas do Tesouro Nacional Serie F 10.000%, 01/01/2025 | | | BRL | | | | 11,429,000 | | | | 3,342,732 | | | | 0.41 | |
Marfrig Holdings Europe B.V. 6.875%, 06/24/2019 | | | | | | | 2,150,000 | | | | 2,219,875 | | | | 0.27 | |
Minerva Luxembourg S.A. 12.250%, 02/10/2022 | | | | | | | 1,400,000 | | | | 1,512,000 | | | | 0.19 | |
Petrobras Global Finance B.V. 5.750%, 01/20/2020 | | | | | | | 2,195,000 | | | | 2,265,240 | | | | 0.28 | |
Petrobras Global Finance B.V. 5.375%, 01/27/2021 | | | | | | | 646,000 | | | | 639,669 | | | | 0.08 | |
Petrobras Global Finance B.V. 8.750%, 05/23/2026 | | | | | | | 375,000 | | | | 422,438 | | | | 0.05 | |
Petrobras Global Finance B.V. 6.875%, 01/20/2040 | | | | | | | 2,130,000 | | | | 1,906,350 | | | | 0.23 | |
Petrobras Global Finance B.V. 6.850%, 06/05/2115 | | | | | | | 315,000 | | | | 267,750 | | | | 0.03 | |
QGOG Atlantic/Alaskan Rigs Ltd. 5.250%, 07/30/2018 | | | | | | | 1,999,634 | | | | 1,789,673 | | | | 0.22 | |
QGOG Constellation S.A. 6.250%, 11/09/2019 | | | | | | | 3,390,000 | | | | 1,618,725 | | | | 0.20 | |
| | | | | | | | | | | 88,775,279 | | | | 10.90 | |
Chile (Cost $7,944,319) | | | | | | | | | | | | | | | | |
Banco del Estado de Chile 4.125%, 10/07/2020 | | | | | | | 430,000 | | | | 459,160 | | | | 0.06 | |
Banco del Estado de Chile 3.875%, 02/08/2022 | | | | | | | 360,000 | | | | 383,548 | | | | 0.05 | |
Bonos de la Tesoreria de la Republica en pesos 6.000%, 01/01/2020 | | | CLP | | | | 50,000,000 | | | | 81,654 | | | | 0.01 | |
Chile (Rep of) 3.125%, 01/21/2026 | | | | | | | 417,000 | | | | 436,182 | | | | 0.05 | |
Corp. Nacional del Cobre de Chile 7.500%, 01/15/2019 | | | | | | | 240,000 | | | | 267,832 | | | | 0.03 | |
Corp. Nacional del Cobre de Chile 3.750%, 11/04/2020 | | | | | | | 1,229,000 | | | | 1,293,212 | | | | 0.16 | |
Corp. Nacional del Cobre de Chile 3.875%, 11/03/2021 | | | | | | | 470,000 | | | | 488,007 | | | | 0.06 | |
Corp. Nacional del Cobre de Chile 5.625%, 10/18/2043 | | | | | | | 473,000 | | | | 518,869 | | | | 0.06 | |
Corp. Nacional del Cobre de Chile 4.875%, 11/04/2044 | | | | | | | 3,261,000 | | | | 3,254,390 | | | | 0.40 | |
Empresa Nacional del Petroleo 3.750%, 08/05/2026(3) | | | | | | | 860,000 | | | | 859,364 | | | | 0.11 | |
| | | | | | | | | | | 8,042,218 | | | | 0.99 | |
China (Cost $13,699,483) | | | | | | | | | | | | | | | | |
Amber Circle Funding Ltd. 3.250%, 12/04/2022 | | | | | | | 572,000 | | | | 595,363 | | | | 0.07 | |
Far East Energy Bermuda Ltd. 13.000%, 01/15/2016(3)(4)(5)(6) | | | | | | | 1,975,424 | | | | — | | | | — | |
Kaisa Group Holdings Ltd. 6.560%, 12/31/2019(7) | | | | | | | 217,406 | | | | 202,688 | | | | 0.03 | |
Kaisa Group Holdings Ltd. 6.560%, 06/30/2020(7) | | | | | | | 981,332 | | | | 915,514 | | | | 0.11 | |
Kaisa Group Holdings Ltd. 6.560%, 12/31/2020(7) | | | | | | | 1,038,295 | | | | 968,501 | | | | 0.12 | |
Kaisa Group Holdings Ltd. 6.560%, 06/30/2021(7) | | | | | | | 351,776 | | | | 328,154 | | | | 0.04 | |
Kaisa Group Holdings Ltd. 6.560%, 12/31/2021(7) | | | | | | | 380,258 | | | | 354,929 | | | | 0.04 | |
Sinochem Overseas Capital Co. Ltd. 4.500%, 11/12/2020 | | | | | | | 6,462,000 | | | | 6,964,795 | | | | 0.86 | |
Sinochem Overseas Capital Co. Ltd. 6.300%, 11/12/2040 | | | | | | | 1,360,000 | | | | 1,744,023 | | | | 0.21 | |
| | | | | | | | | | | 12,073,967 | | | | 1.48 | |
Colombia (Cost $25,860,879) | | | | | | | | | | | | | | | | |
Colombia (Rep of) 7.375%, 03/18/2019 | | | | | | | 2,720,000 | | | | 3,065,440 | | | | 0.38 | |
Colombia (Rep of) 11.750%, 02/25/2020 | | | | | | | 495,000 | | | | 641,768 | | | | 0.08 | |
Colombia (Rep of) 4.000%, 02/26/2024 | | | | | | | 360,000 | | | | 374,400 | | | | 0.04 | |
Colombia (Rep of) 8.125%, 05/21/2024 | | | | | | | 1,278,000 | | | | 1,653,093 | | | | 0.20 | |
Colombia (Rep of) 7.375%, 09/18/2037 | | | | | | | 2,658,000 | | | | 3,402,240 | | | | 0.42 | |
Colombia (Rep of) 6.125%, 01/18/2041 | | | | | | | 2,922,000 | | | | 3,338,385 | | | | 0.41 | |
Colombia (Rep of) 5.625%, 02/26/2044 | | | | | | | 2,173,000 | | | | 2,374,002 | | | | 0.29 | |
See accompanying notes to the financial statements.
54
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Colombia - (continued) | | | | | | | | | | | | | | | | |
Colombia (Rep of) 5.000%, 06/15/2045 | | | | | | | 617,000 | | | $ | 626,255 | | | | 0.08 | |
Colombian TES 5.000%, 11/21/2018 | | | COP | | | | 7,792,700,000 | | | | 2,525,128 | | | | 0.31 | |
Colombian TES 11.000%, 07/24/2020 | | | COP | | | | 2,345,000,000 | | | | 887,556 | | | | 0.11 | |
Colombian TES 7.000%, 05/04/2022 | | | COP | | | | 19,037,200,000 | | | | 6,360,201 | | | | 0.78 | |
Empresa de Telecomunicaciones de Bogota 7.000%, 01/17/2023 | | | COP | | | | 1,416,000,000 | | | | 351,842 | | | | 0.04 | |
| | | | | | | | | | | 25,600,310 | | | | 3.14 | |
Costa Rica (Cost $5,387,983) | | | | | | | | | | | | | | | | |
Costa Rica (Rep of) 4.250%, 01/26/2023 | | | | | | | 2,917,000 | | | | 2,822,198 | | | | 0.35 | |
Costa Rica (Rep of) 4.375%, 04/30/2025 | | | | | | | 450,000 | | | | 428,278 | | | | 0.05 | |
Costa Rica (Rep of) 5.625%, 04/30/2043 | | | | | | | 1,660,000 | | | | 1,468,436 | | | | 0.18 | |
Instituto Costarricense de Electricidad 6.950%, 11/10/2021 | | | | | | | 400,000 | | | | 426,600 | | | | 0.05 | |
Instituto Costarricense de Electricidad 6.375%, 05/15/2043 | | | | | | | 390,000 | | | | 336,824 | | | | 0.04 | |
| | | | | | | | | | | 5,482,336 | | | | 0.67 | |
Croatia (Cost $9,816,700) | | | | | | | | | | | | | | | | |
Croatia (Rep of) 6.750%, 11/05/2019 | | | | | | | 1,750,000 | | | | 1,922,130 | | | | 0.24 | |
Croatia (Rep of) 6.625%, 07/14/2020 | | | | | | | 3,075,000 | | | | 3,410,790 | | | | 0.42 | |
Croatia (Rep of) 6.375%, 03/24/2021 | | | | | | | 1,289,000 | | | | 1,430,790 | | | | 0.17 | |
Croatia (Rep of) 6.000%, 01/26/2024 | | | | | | | 2,970,000 | | | | 3,351,645 | | | | 0.41 | |
| | | | | | | | | | | 10,115,355 | | | | 1.24 | |
Czech Republic (Cost $2,189,403) | | | | | | | | | | | | | | | | |
New World Resources N.V. 8.000%, 04/07/2020(5)(7) | | | EUR | | | | 1,758,334 | | | | — | | | | — | |
New World Resources N.V. 4.000%, 10/07/2020(5)(7) | | | EUR | | | | 619,932 | | | | — | | | | — | |
| | | | | | | | | | | — | | | | — | |
Dominican Republic (Cost $16,769,734) | | | | | | | | | | | | | | | | |
Aeropuertos Dominicanos Siglo XXI S.A., FRN 9.750%, 11/13/2019 | | | | | | | 1,760,000 | | | | 1,843,600 | | | | 0.22 | |
Dominican (Rep of) 7.500%, 05/06/2021 | | | | | | | 1,457,000 | | | | 1,602,991 | | | | 0.20 | |
Dominican (Rep of) 6.600%, 01/28/2024 | | | | | | | 840,000 | | | | 911,400 | | | | 0.11 | |
Dominican (Rep of) 5.875%, 04/18/2024 | | | | | | | 3,579,000 | | | | 3,713,642 | | | | 0.45 | |
Dominican (Rep of) 5.500%, 01/27/2025 | | | | | | | 2,310,000 | | | | 2,350,425 | | | | 0.29 | |
Dominican (Rep of) 6.875%, 01/29/2026 | | | | | | | 2,190,000 | | | | 2,425,425 | | | | 0.30 | |
Dominican (Rep of) 7.450%, 04/30/2044 | | | | | | | 1,760,000 | | | | 1,953,600 | | | | 0.24 | |
Dominican (Rep of) 6.850%, 01/27/2045 | | | | | | | 2,090,000 | | | | 2,173,600 | | | | 0.27 | |
| | | | | | | | | | | 16,974,683 | | | | 2.08 | |
Ecuador (Cost $34,537,175) | | | | | | | | | | | | | | | | |
Ecuador (Rep of) 10.500%, 03/24/2020 | | | | | | | 14,507,000 | | | | 15,304,885 | | | | 1.88 | |
Ecuador (Rep of) 10.750%, 03/28/2022 | | | | | | | 7,550,000 | | | | 7,984,125 | | | | 0.98 | |
Ecuador (Rep of) 7.950%, 06/20/2024 | | | | | | | 5,568,000 | | | | 5,247,840 | | | | 0.64 | |
EP PetroEcuador via Noble Sovereign Funding I Ltd., FRN 6.487%, 09/24/2019 | | | | | | | 9,749,053 | | | | 9,627,190 | | | | 1.18 | |
| | | | | | | | | | | 38,164,040 | | | | 4.68 | |
Egypt (Cost $205,263) | | | | | | | | | | | | | | | | |
Egypt (Rep of) 6.875%, 04/30/2040 | | | | | | | 230,000 | | | | 209,070 | | | | 0.03 | |
| | | | | | | | | | | 209,070 | | | | 0.03 | |
El Salvador (Cost $3,016,717) | | | | | | | | | | | | | | | | |
El Salvador (Rep of) 7.375%, 12/01/2019 | | | | | | | 990,000 | | | | 1,043,787 | | | | 0.13 | |
El Salvador (Rep of) 5.875%, 01/30/2025 | | | | | | | 640,000 | | | | 633,600 | | | | 0.08 | |
El Salvador (Rep of) 6.375%, 01/18/2027 | | | | | | | 270,000 | | | | 268,650 | | | | 0.03 | |
El Salvador (Rep of) 8.250%, 04/10/2032 | | | | | | | 295,000 | | | | 321,512 | | | | 0.04 | |
El Salvador (Rep of) 7.650%, 06/15/2035 | | | | | | | 150,000 | | | | 155,386 | | | | 0.02 | |
El Salvador (Rep of) 7.625%, 02/01/2041 | | | | | | | 620,000 | | | | 636,461 | | | | 0.08 | |
| | | | | | | | | | | 3,059,396 | | | | 0.38 | |
See accompanying notes to the financial statements.
55
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Ethiopia (Cost $2,359,141) | | | | | | | | | | | | | | | | |
Ethiopia (Rep of) 6.625%, 12/11/2024 | | | | | | | 2,460,000 | | | $ | 2,327,406 | | | | 0.29 | |
| | | | | | | | | | | 2,327,406 | | | | 0.29 | |
Gabon (Cost $3,193,645) | | | | | | | | | | | | | | | | |
Gabon (Rep of) 6.375%, 12/12/2024 | | | | | | | 3,310,700 | | | | 3,035,184 | | | | 0.37 | |
| | | | | | | | | | | 3,035,184 | | | | 0.37 | |
Georgia (Cost $3,330,795) | | | | | | | | | | | | | | | | |
Georgia (Rep of) 6.875%, 04/12/2021 | | | | | | | 2,690,000 | | | | 2,999,458 | | | | 0.37 | |
Georgian Railway JSC 7.750%, 07/11/2022 | | | | | | | 340,000 | | | | 379,100 | | | | 0.04 | |
| | | | | | | | | | | 3,378,558 | | | | 0.41 | |
Ghana (Cost $850,275) | | | | | | | | | | | | | | | | |
Ghana (Rep of) 9.250%, 09/15/2022 | | | | | | | 840,000 | | | | 870,752 | | | | 0.11 | |
| | | | | | | | | | | 870,752 | | | | 0.11 | |
Guatemala (Cost $1,589,404) | | | | | | | | | | | | | | | | |
Guatemala (Rep of) 4.875%, 02/13/2028 | | | | | | | 1,557,000 | | | | 1,630,241 | | | | 0.20 | |
| | | | | | | | | | | 1,630,241 | | | | 0.20 | |
Hungary (Cost $15,847,588) | | | | | | | | | | | | | | | | |
Hungary (Rep of) 6.250%, 01/29/2020 | | | | | | | 1,620,000 | | | | 1,814,400 | | | | 0.22 | |
Hungary (Rep of) 5.375%, 02/21/2023 | | | | | | | 3,180,000 | | | | 3,608,664 | | | | 0.44 | |
Hungary (Rep of) 5.750%, 11/22/2023 | | | | | | | 4,174,000 | | | | 4,870,014 | | | | 0.60 | |
Hungary (Rep of) 5.375%, 03/25/2024 | | | | | | | 1,620,000 | | | | 1,861,225 | | | | 0.23 | |
Hungary (Rep of) 5.500%, 06/24/2025 | | | HUF | | | | 433,960,000 | | | | 1,856,050 | | | | 0.23 | |
Hungary (Rep of) 7.625%, 03/29/2041 | | | | | | | 1,740,000 | | | | 2,651,760 | | | | 0.32 | |
| | | | | | | | | | | 16,662,113 | | | | 2.04 | |
India (Cost $13,640,864) | | | | | | | | | | | | | | | | |
Export-Import Bank of India 4.000%, 08/07/2017 | | | | | | | 400,000 | | | | 406,480 | | | | 0.05 | |
Export-Import Bank of India 4.000%, 01/14/2023 | | | | | | | 1,359,000 | | | | 1,427,628 | | | | 0.18 | |
Export-Import Bank of India 3.750%, 08/05/2026 | | | | | | | 430,000 | | | | 426,365 | | | | 0.05 | |
India (Rep of) 7.590%, 01/11/2026 | | | INR | | | | 730,000,000 | | | | 11,448,091 | | | | 1.40 | |
| | | | | | | | | | | 13,708,564 | | | | 1.68 | |
Indonesia (Cost $38,061,748) | | | | | | | | | | | | | | | | |
Indonesia (Rep of) 6.875%, 01/17/2018 | | | | | | | 1,389,000 | | | | 1,474,864 | | | | 0.18 | |
Indonesia (Rep of) 11.625%, 03/04/2019 | | | | | | | 2,530,000 | | | | 3,072,505 | | | | 0.38 | |
Indonesia (Rep of) 11.500%, 09/15/2019 | | | IDR | | | | 8,034,000,000 | | | | 690,776 | | | | 0.08 | |
Indonesia (Rep of) 5.875%, 03/13/2020 | | | | | | | 624,000 | | | | 692,415 | | | | 0.09 | |
Indonesia (Rep of) 4.875%, 05/05/2021 | | | | | | | 420,000 | | | | 458,403 | | | | 0.06 | |
Indonesia (Rep of) 8.250%, 07/15/2021 | | | IDR | | | | 40,533,000,000 | | | | 3,267,889 | | | | 0.40 | |
Indonesia (Rep of) 7.000%, 05/15/2022 | | | IDR | | | | 11,716,000,000 | | | | 899,711 | | | | 0.11 | |
Indonesia (Rep of) 5.625%, 05/15/2023 | | | IDR | | | | 8,359,000,000 | | | | 592,185 | | | | 0.07 | |
Indonesia (Rep of) 4.125%, 01/15/2025 | | | | | | | 470,000 | | | | 492,575 | | | | 0.06 | |
Indonesia (Rep of) 8.375%, 09/15/2026 | | | IDR | | | | 73,036,000,000 | | | | 6,025,991 | | | | 0.74 | |
Indonesia (Rep of) 7.000%, 05/15/2027 | | | IDR | | | | 12,258,000,000 | | | | 921,692 | | | | 0.11 | |
Indonesia (Rep of) 3.750%, 06/14/2028 | | | EUR | | | | 703,000 | | | | 828,308 | | | | 0.10 | |
Indonesia (Rep of) 9.000%, 03/15/2029 | | | IDR | | | | 6,131,000,000 | | | | 528,576 | | | | 0.07 | |
Indonesia (Rep of) 8.750%, 05/15/2031 | | | IDR | | | | 29,444,000,000 | | | | 2,476,609 | | | | 0.30 | |
Indonesia (Rep of) 6.625%, 05/15/2033 | | | IDR | | | | 22,278,000,000 | | | | 1,547,672 | | | | 0.19 | |
Indonesia (Rep of) 8.375%, 03/15/2034 | | | IDR | | | | 13,068,000,000 | | | | 1,052,487 | | | | 0.13 | |
Indonesia (Rep of) 8.250%, 05/15/2036 | | | IDR | | | | 35,236,000,000 | | | | 2,821,337 | | | | 0.35 | |
Indonesia (Rep of) 7.750%, 01/17/2038 | | | | | | | 670,000 | | | | 942,282 | | | | 0.12 | |
Indonesia (Rep of) 5.125%, 01/15/2045 | | | | | | | 350,000 | | | | 382,051 | | | | 0.05 | |
Indonesia (Rep of) 5.950%, 01/08/2046 | | | | | | | 567,000 | | | | 687,265 | | | | 0.08 | |
Majapahit Holding B.V. 8.000%, 08/07/2019 | | | | | | | 160,000 | | | | 182,768 | | | | 0.02 | |
Majapahit Holding B.V. 7.750%, 01/20/2020 | | | | | | | 350,000 | | | | 400,750 | | | | 0.05 | |
Pertamina Persero PT 6.000%, 05/03/2042 | | | | | | | 469,000 | | | | 494,502 | | | | 0.06 | |
Perusahaan Listrik Negara PT 5.500%, 11/22/2021 | | | | | | | 3,610,000 | | | | 3,998,075 | | | | 0.49 | |
See accompanying notes to the financial statements.
56
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Indonesia - (continued) | | | | | | | | | | | | | | | | |
Perusahaan Penerbit SBSN Indonesia III 4.550%, 03/29/2026 | | | | | | | 2,080,000 | | | $ | 2,200,315 | | | | 0.27 | |
Perusahaan Penerbit SBSN Indonesia III 6.125%, 03/15/2019 | | | | | | | 400,000 | | | | 438,088 | | | | 0.05 | |
Perusahaan Penerbit SBSN Indonesia III 4.325%, 05/28/2025 | | | | | | | 1,668,000 | | | | 1,753,373 | | | | 0.22 | |
| | | | | | | | | | | 39,323,464 | | | | 4.83 | |
Ivory Coast (Cost $11,543,206) | | | | | | | | | | | | | | | | |
Ivory Coast (Rep of) 5.375%, 07/23/2024 | | | | | | | 1,246,000 | | | | 1,256,616 | | | | 0.15 | |
Ivory Coast (Rep of) 6.375%, 03/03/2028 | | | | | | | 306,000 | | | | 319,228 | | | | 0.04 | |
Ivory Coast (Rep of), FRN 5.750%, 12/31/2032 | | | | | | | 10,445,490 | | | | 10,231,984 | | | | 1.26 | |
| | | | | | | | | | | 11,807,828 | | | | 1.45 | |
Jamaica (Cost $7,976,791) | | | | | | | | | | | | | | | | |
Digicel Group Ltd. 8.250%, 09/30/2020 | | | | | | | 7,135,000 | | | | 6,314,475 | | | | 0.77 | |
Digicel Group Ltd. 7.125%, 04/01/2022 | | | | | | | 1,120,000 | | | | 887,264 | | | | 0.11 | |
Jamaica (Rep of) 7.875%, 07/28/2045 | | | | | | | 430,000 | | | | 495,635 | | | | 0.06 | |
| | | | | | | | | | | 7,697,374 | | | | 0.94 | |
Jordan (Cost $826,912) | | | | | | | | | | | | | | | | |
Jordan (Rep of) , 01/31/2027(3)(8) | | | | | | | 830,000 | | | | 825,933 | | | | 0.10 | |
| | | | | | | | | | | 825,933 | | | | 0.10 | |
Kazakhstan (Cost $26,987,123) | | | | | | | | | | | | | | | | |
Development Bank of Kazakhstan JSC 4.125%, 12/10/2022 | | | | | | | 2,453,000 | | | | 2,392,166 | | | | 0.29 | |
KazAgro National Management Holding JSC 4.625%, 05/24/2023 | | | | | | | 1,100,000 | | | | 1,028,500 | | | | 0.13 | |
Kazakhstan (Rep of) 5.125%, 07/21/2025 | | | | | | | 4,024,000 | | | | 4,457,666 | | | | 0.55 | |
Kazakhstan (Rep of) 4.875%, 10/14/2044 | | | | | | | 1,089,000 | | | | 1,099,934 | | | | 0.13 | |
Kazakhstan (Rep of) 6.500%, 07/21/2045 | | | | | | | 1,273,000 | | | | 1,522,371 | | | | 0.19 | |
Kazakhstan Temir Zholy Finance B.V. 6.375%, 10/06/2020 | | | | | | | 606,000 | | | | 643,875 | | | | 0.08 | |
Kazakhstan Temir Zholy Finance B.V. 6.950%, 07/10/2042 | | | | | | | 2,751,000 | | | | 2,835,896 | | | | 0.35 | |
Kazkommertsbank JSC 7.500%, 11/29/2016 | | | | | | | 615,000 | | | | 605,775 | | | | 0.07 | |
Kazkommertsbank JSC 6.875%, 02/13/2017 | | | EUR | | | | 1,655,000 | | | | 1,782,039 | | | | 0.22 | |
Kazkommertsbank JSC 8.500%, 05/11/2018 | | | | | | | 2,045,000 | | | | 2,019,437 | | | | 0.25 | |
Kazkommertsbank JSC 5.500%, 12/21/2022 | | | | | | | 1,387,674 | | | | 986,248 | | | | 0.12 | |
KazMunayGas National Co. JSC 9.125%, 07/02/2018 | | | | | | | 941,000 | | | | 1,031,842 | | | | 0.13 | |
KazMunayGas National Co. JSC 7.000%, 05/05/2020 | | | | | | | 1,484,000 | | | | 1,645,358 | | | | 0.20 | |
KazMunayGas National Co. JSC 6.375%, 04/09/2021 | | | | | | | 730,000 | | | | 802,193 | | | | 0.10 | |
KazMunayGas National Co. JSC 5.750%, 04/30/2043 | | | | | | | 926,000 | | | | 928,315 | | | | 0.11 | |
Zhaikmunai LLP 6.375%, 02/14/2019 | | | | | | | 2,710,000 | | | | 2,510,679 | | | | 0.31 | |
Zhaikmunai LLP 7.125%, 11/13/2019 | | | | | | | 2,295,000 | | | | 2,117,138 | | | | 0.26 | |
| | | | | | | | | | | 28,409,432 | | | | 3.49 | |
Kenya (Cost $474,552) | | | | | | | | | | | | | | | | |
Kenya (Rep of) 6.875%, 06/24/2024 | | | | | | | 500,000 | | | | 498,750 | | | | 0.06 | |
| | | | | | | | | | | 498,750 | | | | 0.06 | |
Lebanon (Cost $11,938,162) | | | | | | | | | | | | | | | | |
Lebanon (Rep of) 5.150%, 11/12/2018 | | | | | | | 430,000 | | | | 423,756 | | | | 0.05 | |
Lebanon (Rep of) 5.450%, 11/28/2019 | | | | | | | 700,000 | | | | 689,612 | | | | 0.08 | |
Lebanon (Rep of) 6.375%, 03/09/2020 | | | | | | | 1,564,000 | | | | 1,567,910 | | | | 0.19 | |
Lebanon (Rep of) 8.250%, 04/12/2021 | | | | | | | 992,000 | | | | 1,061,440 | | | | 0.13 | |
Lebanon (Rep of) 6.100%, 10/04/2022 | | | | | | | 1,037,000 | | | | 1,015,638 | | | | 0.12 | |
Lebanon (Rep of) 6.000%, 01/27/2023 | | | | | | | 2,650,000 | | | | 2,567,718 | | | | 0.32 | |
Lebanon (Rep of) 6.200%, 02/26/2025 | | | | | | | 899,000 | | | | 863,040 | | | | 0.11 | |
Lebanon (Rep of) 6.600%, 11/27/2026 | | | | | | | 2,748,000 | | | | 2,670,616 | | | | 0.33 | |
See accompanying notes to the financial statements.
57
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Lebanon - (continued) | | | | | | | | | | | | | | | | |
Lebanon (Rep of) 6.750%, 11/29/2027 | | | | | | | 757,000 | | | $ | 745,267 | | | | 0.09 | |
| | | | | | | | | | | 11,604,997 | | | | 1.42 | |
Malaysia (Cost $8,018,524) | | | | | | | | | | | | | | | | |
Malaysia (Rep of) 3.418%, 08/15/2022 | | | MYR | | | | 1,037,000 | | | | 245,868 | | | | 0.03 | |
Malaysia (Rep of) 3.480%, 03/15/2023 | | | MYR | | | | 146,000 | | | | 34,767 | | | | 0.01 | |
Malaysia (Rep of) 4.181%, 07/15/2024 | | | MYR | | | | 3,771,000 | | | | 926,832 | | | | 0.11 | |
Malaysia (Rep of) 3.955%, 09/15/2025 | | | MYR | | | | 50,000 | | | | 12,095 | | | | — | |
Malaysia (Rep of) 4.392%, 04/15/2026 | | | MYR | | | | 125,000 | | | | 31,174 | | | | 0.01 | |
Malaysia (Rep of) 3.900%, 11/30/2026 | | | MYR | | | | 114,000 | | | | 27,812 | | | | — | |
Malaysia (Rep of) 4.498%, 04/15/2030 | | | MYR | | | | 4,316,000 | | | | 1,065,645 | | | | 0.13 | |
Malaysia (Rep of) 3.844%, 04/15/2033 | | | MYR | | | | 193,000 | | | | 43,670 | | | | 0.01 | |
Malaysia (Rep of) 4.254%, 05/31/2035 | | | MYR | | | | 1,003,000 | | | | 237,086 | | | | 0.03 | |
Malaysia (Rep of) 4.736%, 03/15/2046 | | | MYR | | | | 1,612,000 | | | | 395,449 | | | | 0.05 | |
Malaysia Government Investment Issue 4.390%, 07/07/2023 | | | MYR | | | | 2,364,000 | | | | 589,382 | | | | 0.07 | |
Malaysia Government Investment Issue 4.070%, 09/30/2026 | | | MYR | | | | 2,376,000 | | | | 581,491 | | | | 0.07 | |
Petronas Capital Ltd. 5.250%, 08/12/2019 | | | | | | | 1,252,000 | | | | 1,368,018 | | | | 0.17 | |
Petronas Capital Ltd. 7.875%, 05/22/2022 | | | | | | | 910,000 | | | | 1,167,931 | | | | 0.14 | |
Wakala Global Sukuk Bhd. 4.646%, 07/06/2021 | | | | | | | 1,171,000 | | | | 1,300,161 | | | | 0.16 | |
| | | | | | | | | | | 8,027,381 | | | | 0.99 | |
Mexico (Cost $36,315,520) | | | | | | | | | | | | | | | | |
Comision Federal de Electricidad 4.875%, 01/15/2024 | | | | | | | 1,453,000 | | | | 1,511,120 | | | | 0.19 | |
Comision Federal de Electricidad 5.750%, 02/14/2042 | | | | | | | 770,000 | | | | 786,262 | | | | 0.10 | |
Mexican Udibonos 4.000%, 06/13/2019(9) | | | MXN | | | | 53,250,000 | | | | 16,138,254 | | | | 1.98 | |
Mexico (Rep of) 6.050%, 01/11/2040 | | | | | | | 302,000 | | | | 359,002 | | | | 0.04 | |
Mexico (Rep of) 4.750%, 03/08/2044 | | | | | | | 866,000 | | | | 863,835 | | | | 0.11 | |
Mexico (Rep of) 5.550%, 01/21/2045 | | | | | | | 477,000 | | | | 534,240 | | | | 0.07 | |
Mexico (Rep of) 4.600%, 01/23/2046 | | | | | | | 3,690,000 | | | | 3,606,975 | | | | 0.44 | |
Mexico (Rep of) 4.350%, 01/15/2047 | | | | | | | 907,000 | | | | 858,022 | | | | 0.10 | |
Mexico (Rep of) 5.750%, 10/12/2110 | | | | | | | 558,000 | | | | 570,555 | | | | 0.07 | |
Mexico (Rep of) 4.000%, 03/15/2115 | | | EUR | | | | 2,254,000 | | | | 2,234,319 | | | | 0.27 | |
Petroleos Mexicanos 6.000%, 03/05/2020 | | | | | | | 234,000 | | | | 253,656 | | | | 0.03 | |
Petroleos Mexicanos 7.190%, 09/12/2024 | | | MXN | | | | 6,470,000 | | | | 312,980 | | | | 0.04 | |
Petroleos Mexicanos 6.875%, 08/04/2026 | | | | | | | 2,345,000 | | | | 2,621,710 | | | | 0.32 | |
Petroleos Mexicanos 6.500%, 06/02/2041 | | | | | | | 1,710,000 | | | | 1,662,120 | | | | 0.20 | |
Petroleos Mexicanos 5.500%, 06/27/2044 | | | | | | | 258,000 | | | | 222,241 | | | | 0.03 | |
Petroleos Mexicanos 5.625%, 01/23/2046 | | | | | | | 1,290,000 | | | | 1,115,529 | | | | 0.14 | |
Petroleos Mexicanos 6.750%, 09/21/2047(3) | | | | | | | 2,141,000 | | | | 2,122,266 | | | | 0.26 | |
| | | | | | | | | | | 35,773,086 | | | | 4.39 | |
Mongolia (Cost $3,308,671) | | | | | | | | | | | | | | | | |
Mongolian Mining Corp. 8.875%, 03/29/2017(4) | | | | | | | 4,064,000 | | | | 2,011,680 | | | | 0.25 | |
| | | | | | | | | | | 2,011,680 | | | | 0.25 | |
Morocco (Cost $4,899,880) | | | | | | | | | | | | | | | | |
Morocco (Rep of) 4.250%, 12/11/2022 | | | | | | | 3,124,000 | | | | 3,325,811 | | | | 0.41 | |
Morocco (Rep of) 5.500%, 12/11/2042 | | | | | | | 1,548,000 | | | | 1,740,896 | | | | 0.21 | |
| | | | | | | | | | | 5,066,707 | | | | 0.62 | |
Namibia (Cost $294,753) | | | | | | | | | | | | | | | | |
Namibia (Rep of) 5.250%, 10/29/2025 | | | | | | | 330,000 | | | | 342,807 | | | | 0.04 | |
| | | | | | | | | | | 342,807 | | | | 0.04 | |
Nigeria (Cost $3,221,923) | | | | | | | | | | | | | | | | |
First Bank of Nigeria Ltd. Via FBN Finance Co. B.V., FRN 8.250%, 08/07/2020 | | | | | | | 282,000 | | | | 236,880 | | | | 0.03 | |
First Bank of Nigeria Ltd. Via FBN Finance Co. B.V., FRN 8.000%, 07/23/2021 | | | | | | | 1,190,000 | | | | 923,657 | | | | 0.11 | |
See accompanying notes to the financial statements.
58
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Nigeria - (continued) | | | | | | | | | | | | | | | | |
Sea Trucks Group Ltd. 9.000%, 03/26/2018 | | | | | | | 1,700,125 | | | $ | 544,040 | | | | 0.07 | |
Seven Energy Finance Ltd. 10.250%, 10/11/2021 | | | | | | | 875,000 | | | | 376,250 | | | | 0.05 | |
| | | | | | | | | | | 2,080,827 | | | | 0.26 | |
Oman (Cost $1,402,146) | | | | | | | | | | | | | | | | |
Oman (Rep of) 4.750%, 06/15/2026(3) | | | | | | | 1,394,000 | | | | 1,404,455 | | | | 0.17 | |
| | | | | | | | | | | 1,404,455 | | | | 0.17 | |
Pakistan (Cost $11,953,786) | | | | | | | | | | | | | | | | |
Pakistan (Rep of) 6.875%, 06/01/2017 | | | | | | | 1,810,000 | | | | 1,844,933 | | | | 0.23 | |
Pakistan (Rep of) 7.250%, 04/15/2019 | | | | | | | 3,396,000 | | | | 3,599,750 | | | | 0.44 | |
Pakistan (Rep of) 8.250%, 04/15/2024 | | | | | | | 1,388,000 | | | | 1,563,499 | | | | 0.19 | |
Pakistan (Rep of) 8.250%, 09/30/2025 | | | | | | | 1,500,000 | | | | 1,702,641 | | | | 0.21 | |
Second Pakistan International Sukuk (The) Co. Ltd. 6.750%, 12/03/2019 | | | | | | | 1,890,000 | | | | 2,001,436 | | | | 0.24 | |
Third Pakistan International Sukuk (The) Co. Ltd. 5.500%, 10/13/2021(3) | | | | | | | 1,583,000 | | | | 1,612,786 | | | | 0.20 | |
| | | | | | | | | | | 12,325,045 | | | | 1.51 | |
Panama (Cost $7,050,660) | | | | | | | | | | | | | | | | |
Panama (Rep of) 4.000%, 09/22/2024 | | | | | | | 470,000 | | | | 505,838 | | | | 0.06 | |
Panama (Rep of) 7.125%, 01/29/2026 | | | | | | | 1,136,000 | | | | 1,502,360 | | | | 0.18 | |
Panama (Rep of) 8.875%, 09/30/2027 | | | | | | | 597,000 | | | | 880,575 | | | | 0.11 | |
Panama (Rep of) 9.375%, 04/01/2029 | | | | | | | 421,000 | | | | 640,446 | | | | 0.08 | |
Panama (Rep of) 6.700%, 01/26/2036 | | | | | | | 1,092,000 | | | | 1,450,995 | | | | 0.18 | |
Panama (Rep of) 4.300%, 04/29/2053 | | | | | | | 2,380,000 | | | | 2,427,600 | | | | 0.30 | |
| | | | | | | | | | | 7,407,814 | | | | 0.91 | |
Paraguay (Cost $628,082) | | | | | | | | | | | | | | | | |
Paraguay (Rep of) 4.625%, 01/25/2023 | | | | | | | 620,000 | | | | 646,958 | | | | 0.08 | |
| | | | | | | | | | | 646,958 | | | | 0.08 | |
Peru (Cost $14,655,383) | | | | | | | | | | | | | | | | |
Peru (Rep of) 5.700%, 08/12/2024 | | | PEN | | | | 4,934,000 | | | | 1,502,846 | | | | 0.18 | |
Peru (Rep of) 7.350%, 07/21/2025 | | | | | | | 3,260,000 | | | | 4,458,050 | | | | 0.55 | |
Peru (Rep of) 8.200%, 08/12/2026 | | | PEN | | | | 1,144,000 | | | | 402,849 | | | | 0.05 | |
Peru (Rep of) 6.350%, 08/12/2028(3) | | | PEN | | | | 2,221,000 | | | | 679,564 | | | | 0.08 | |
Peru (Rep of) 6.950%, 08/12/2031 | | | PEN | | | | 3,767,000 | | | | 1,217,365 | | | | 0.15 | |
Peru (Rep of) 8.750%, 11/21/2033 | | | | | | | 2,000,000 | | | | 3,155,000 | | | | 0.39 | |
Peru (Rep of) 5.625%, 11/18/2050 | | | | | | | 2,728,000 | | | | 3,464,560 | | | | 0.43 | |
| | | | | | | | | | | 14,880,234 | | | | 1.83 | |
Philippines (Cost $15,608,999) | | | | | | | | | | | | | | | | |
Philippines (Rep of) 4.950%, 01/15/2021 | | | PHP | | | | 11,000,000 | | | | 233,414 | | | | 0.03 | |
Philippines (Rep of) 3.900%, 11/26/2022 | | | PHP | | | | 45,000,000 | | | | 917,704 | | | | 0.11 | |
Philippines (Rep of) 10.625%, 03/16/2025 | | | | | | | 547,000 | | | | 872,533 | | | | 0.11 | |
Philippines (Rep of) 5.500%, 03/30/2026 | | | | | | | 500,000 | | | | 611,960 | | | | 0.07 | |
Philippines (Rep of) 9.500%, 02/02/2030 | | | | | | | 1,685,000 | | | | 2,816,627 | | | | 0.35 | |
Philippines (Rep of) 7.750%, 01/14/2031 | | | | | | | 1,970,000 | | | | 2,975,311 | | | | 0.37 | |
Philippines (Rep of) 6.375%, 10/23/2034 | | | | | | | 2,716,000 | | | | 3,783,285 | | | | 0.46 | |
Philippines (Rep of) 6.250%, 01/14/2036 | | | PHP | | | | 15,000,000 | | | | 357,014 | | | | 0.04 | |
Power Sector Assets & Liabilities Management Corp. 7.390%, 12/02/2024 | | | | | | | 2,527,000 | | | | 3,361,178 | | | | 0.41 | |
| | | | | | | | | | | 15,929,026 | | | | 1.95 | |
Poland (Cost $8,083,314) | | | | | | | | | | | | | | | | |
Poland (Rep of) 5.000%, 03/23/2022 | | | | | | | 804,000 | | | | 910,530 | | | | 0.11 | |
Poland (Rep of) 3.000%, 03/17/2023 | | | | | | | 295,000 | | | | 303,585 | | | | 0.04 | |
Poland (Rep of) 4.000%, 10/25/2023 | | | PLN | | | | 6,448,000 | | | | 1,753,948 | | | | 0.22 | |
Poland (Rep of) 3.250%, 07/25/2025 | | | PLN | | | | 13,658,000 | | | | 3,539,435 | | | | 0.43 | |
See accompanying notes to the financial statements.
59
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Poland - (continued) | | | | | | | | | | | | | | | | |
Poland (Rep of) 2.500%, 07/25/2026 | | | PLN | | | | 5,483,000 | | | $ | 1,326,290 | | | | 0.16 | |
| | | | | | | | | | | 7,833,788 | | | | 0.96 | |
Romania (Cost $9,775,192) | | | | | | | | | | | | | | | | |
Romania (Rep of) 6.750%, 02/07/2022 | | | | | | | 5,182,000 | | | | 6,153,625 | | | | 0.76 | |
Romania (Rep of) 4.375%, 08/22/2023 | | | | | | | 3,340,000 | | | | 3,627,908 | | | | 0.45 | |
Romania (Rep of) 6.125%, 01/22/2044 | | | | | | | 220,000 | | | | 285,646 | | | | 0.03 | |
| | | | | | | | | | | 10,067,179 | | | | 1.24 | |
Russian Federation (Cost $19,876,685) | | | | | | | | | | | | | | | | |
CEDC Finance Corp. International, Inc., FRN 10.000%, 04/30/2018 | | | | | | | 1,357,699 | | | | 1,086,159 | | | | 0.13 | |
Credit Bank of Moscow Via CBOM Finance PLC 8.700%, 11/13/2018 | | | | | | | 1,840,000 | | | | 1,904,989 | | | | 0.23 | |
GTH Finance B.V. 6.250%, 04/26/2020 | | | | | | | 2,685,000 | | | | 2,803,462 | | | | 0.34 | |
Russian Agricultural Bank OJSC Via RSHB Capital S.A. 7.750%, 05/29/2018 | | | | | | | 1,048,000 | | | | 1,116,581 | | | | 0.14 | |
Russian Railways via RZD Capital PLC 5.700%, 04/05/2022 | | | | | | | 3,192,000 | | | | 3,403,144 | | | | 0.42 | |
Russian Standard Ltd. 13.000%, 10/27/2022(7) | | | | | | | 736,257 | | | | 331,463 | | | | 0.04 | |
SCF Capital Ltd. 5.375%, 06/16/2023(3) | | | | | | | 1,350,000 | | | | 1,398,735 | | | | 0.17 | |
TMK OAO Via TMK Capital S.A. 6.750%, 04/03/2020 | | | | | | | 1,435,000 | | | | 1,506,032 | | | | 0.19 | |
Vnesheconombank Via VEB Finance PLC 5.450%, 11/22/2017 | | | | | | | 2,397,000 | | | | 2,457,208 | | | | 0.30 | |
Vnesheconombank Via VEB Finance PLC 6.902%, 07/09/2020 | | | | | | | 1,800,000 | | | | 1,939,500 | | | | 0.24 | |
Vnesheconombank Via VEB Finance PLC 6.025%, 07/05/2022 | | | | | | | 430,000 | | | | 449,789 | | | | 0.06 | |
Vnesheconombank Via VEB Finance PLC 5.942%, 11/21/2023 | | | | | | | 1,137,000 | | | | 1,172,283 | | | | 0.14 | |
Vnesheconombank Via VEB Finance PLC 6.800%, 11/22/2025 | | | | | | | 1,337,000 | | | | 1,430,590 | | | | 0.18 | |
| | | | | | | | | | | 20,999,935 | | | | 2.58 | |
Saudi Arabia (Cost $1,169,854) | | | | | | | | | | | | | | | | |
Saudi (Rep of) 4.500%, 10/26/2046(3) | | | | | | | 1,190,000 | | | | 1,170,662 | | | | 0.14 | |
| | | | | | | | | | | 1,170,662 | | | | 0.14 | |
Senegal (Cost $761,230) | | | | | | | | | | | | | | | | |
Senegal (Rep of) 8.750%, 05/13/2021 | | | | | | | 699,000 | | | | 789,199 | | | | 0.10 | |
| | | | | | | | | | | 789,199 | | | | 0.10 | |
Serbia (Cost $3,594,056) | | | | | | | | | | | | | | | | |
Serbia (Rep of) 5.875%, 12/03/2018 | | | | | | | 810,000 | | | | 857,320 | | | | 0.10 | |
Serbia (Rep of) 4.875%, 02/25/2020 | | | | | | | 2,324,000 | | | | 2,406,502 | | | | 0.30 | |
Serbia (Rep of) 7.250%, 09/28/2021 | | | | | | | 340,000 | | | | 390,490 | | | | 0.05 | |
| | | | | | | | | | | 3,654,312 | | | | 0.45 | |
South Africa (Cost $47,582,178) | | | | | | | | | | | | | | | | |
Eskom Holdings SOC Ltd. 5.750%, 01/26/2021 | | | | | | | 2,410,000 | | | | 2,422,050 | | | | 0.30 | |
Eskom Holdings SOC Ltd. 6.750%, 08/06/2023 | | | | | | | 1,704,000 | | | | 1,758,307 | | | | 0.22 | |
Eskom Holdings SOC Ltd. 7.125%, 02/11/2025 | | | | | | | 1,310,000 | | | | 1,355,378 | | | | 0.17 | |
South Africa (Rep of) 6.875%, 05/27/2019 | | | | | | | 1,160,000 | | | | 1,279,654 | | | | 0.16 | |
South Africa (Rep of) 5.500%, 03/09/2020 | | | | | | | 2,086,000 | | | | 2,264,754 | | | | 0.28 | |
South Africa (Rep of) 5.875%, 05/30/2022 | | | | | | | 1,958,000 | | | | 2,209,364 | | | | 0.27 | |
South Africa (Rep of) 7.750%, 02/28/2023 | | | ZAR | | | | 45,480,000 | | | | 3,268,118 | | | | 0.40 | |
South Africa (Rep of) 4.875%, 04/14/2026 | | | | | | | 590,000 | | | | 612,212 | | | | 0.07 | |
South Africa (Rep of) 10.500%, 12/21/2026 | | | ZAR | | | | 104,618,970 | | | | 8,593,206 | | | | 1.05 | |
See accompanying notes to the financial statements.
60
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
South Africa - (continued) | | | | | | | | | | | | | | | | |
South Africa (Rep of) 4.300%, 10/12/2028 | | | | | | | 3,473,000 | | | $ | 3,367,768 | | | | 0.41 | |
South Africa (Rep of) 8.000%, 01/31/2030 | | | ZAR | | | | 32,180,000 | | | | 2,183,717 | | | | 0.27 | |
South Africa (Rep of) 7.000%, 02/28/2031 | | | ZAR | | | | 82,240,000 | | | | 5,074,041 | | | | 0.62 | |
South Africa (Rep of) 8.250%, 03/31/2032 | | | ZAR | | | | 31,940,000 | | | | 2,180,175 | | | | 0.27 | |
South Africa (Rep of) 6.250%, 03/31/2036 | | | ZAR | | | | 11,230,000 | | | | 605,339 | | | | 0.07 | |
South Africa (Rep of) 8.500%, 01/31/2037 | | | ZAR | | | | 36,660,000 | | | | 2,507,303 | | | | 0.31 | |
South Africa (Rep of) 8.750%, 01/31/2044 | | | ZAR | | | | 46,260,000 | | | | 3,210,539 | | | | 0.39 | |
South Africa (Rep of) 8.750%, 02/28/2048 | | | ZAR | | | | 66,560,000 | | | | 4,606,567 | | | | 0.57 | |
| | | | | | | | | | | 47,498,492 | | | | 5.83 | |
Sri Lanka (Cost $885,979) | | | | | | | | | | | | | | | | |
Sri Lanka (Rep of) 6.825%, 07/18/2026(3) | | | | | | | 861,000 | | | | 908,440 | | | | 0.11 | |
| | | | | | | | | | | 908,440 | | | | 0.11 | |
Suriname (Cost $857,000) | | | | | | | | | | | | | | | | |
Suriname (Rep of) 9.250%, 10/26/2026(3) | | | | | | | 857,000 | | | | 895,685 | | | | 0.11 | |
| | | | | | | | | | | 895,685 | | | | 0.11 | |
Thailand (Cost $3,390,799) | | | | | | | | | | | | | | | | |
Thailand (Rep of) 1.250%, 03/12/2028(9) | | | THB | | | | 28,480,000 | | | | 777,190 | | | | 0.10 | |
Thailand (Rep of) 3.400%, 06/17/2036 | | | THB | | | | 74,224,000 | | | | 2,368,905 | | | | 0.29 | |
Thailand (Rep of) 4.675%, 06/29/2044 | | | THB | | | | 6,522,000 | | | | 252,851 | | | | 0.03 | |
| | | | | | | | | | | 3,398,946 | | | | 0.42 | |
Turkey (Cost $29,859,649) | | | | | | | | | | | | | | | | |
Turkey (Rep of) 6.750%, 04/03/2018 | | | | | | | 1,918,000 | | | | 2,021,093 | | | | 0.25 | |
Turkey (Rep of) 7.000%, 03/11/2019 | | | | | | | 1,170,000 | | | | 1,265,062 | | | | 0.16 | |
Turkey (Rep of) 7.500%, 11/07/2019 | | | | | | | 1,240,000 | | | | 1,376,400 | | | | 0.17 | |
Turkey (Rep of) 9.400%, 07/08/2020 | | | TRY | | | | 8,187,069 | | | | 2,633,991 | | | | 0.32 | |
Turkey (Rep of) 10.700%, 02/17/2021 | | | TRY | | | | 24,798,000 | | | | 8,318,680 | | | | 1.02 | |
Turkey (Rep of) 5.625%, 03/30/2021 | | | | | | | 1,570,000 | | | | 1,658,030 | | | | 0.20 | |
Turkey (Rep of) 3.000%, 02/23/2022(9) | | | TRY | | | | 4,331,940 | | | | 2,024,801 | | | | 0.25 | |
Turkey (Rep of) 6.250%, 09/26/2022 | | | | | | | 400,000 | | | | 435,115 | | | | 0.05 | |
Turkey (Rep of) 10.400%, 03/20/2024 | | | TRY | | | | 2,000 | | | | 667 | | | | — | |
Turkey (Rep of) 5.750%, 03/22/2024 | | | | | | | 1,970,000 | | | | 2,093,976 | | | | 0.26 | |
Turkey (Rep of) 7.375%, 02/05/2025 | | | | | | | 1,117,000 | | | | 1,308,319 | | | | 0.16 | |
Turkey (Rep of) 10.600%, 02/11/2026 | | | TRY | | | | 7,940,000 | | | | 2,685,371 | | | | 0.33 | |
Turkey (Rep of) 6.750%, 05/30/2040 | | | | | | | 1,227,000 | | | | 1,384,056 | | | | 0.17 | |
Turkey (Rep of) 6.000%, 01/14/2041 | | | | | | | 650,000 | | | | 670,742 | | | | 0.08 | |
Turkey (Rep of) 6.625%, 02/17/2045 | | | | | | | 523,000 | | | | 586,236 | | | | 0.07 | |
| | | | | | | | | | | 28,462,539 | | | | 3.49 | |
Ukraine (Cost $12,513,087) | | | | | | | | | | | | | | | | |
Ferrexpo Finance PLC 10.375%, 04/07/2019 | | | | | | | 1,017,000 | | | | 1,020,356 | | | | 0.13 | |
Metinvest B.V., FRN 10.500%, 11/28/2017 | | | | | | | 1,256,172 | | | | 1,069,354 | | | | 0.13 | |
Metinvest B.V., FRN 8.750%, 02/14/2018 | | | | | | | 1,380,829 | | | | 1,187,789 | | | | 0.15 | |
MHP S.A. 8.250%, 04/02/2020 | | | | | | | 2,950,000 | | | | 2,887,991 | | | | 0.35 | |
Oschadbank Via SSB #1 PLC, FRN 9.625%, 03/20/2025 | | | | | | | 490,000 | | | | 471,625 | | | | 0.06 | |
Ukraine (Rep of) 7.750%, 09/01/2020 | | | | | | | 480,000 | | | | 475,704 | | | | 0.06 | |
Ukraine (Rep of) 7.750%, 09/01/2021 | | | | | | | 119,000 | | | | 117,215 | | | | 0.01 | |
Ukraine (Rep of) 7.750%, 09/01/2022 | | | | | | | 642,000 | | | | 627,555 | | | | 0.08 | |
Ukraine (Rep of) 7.750%, 09/01/2023 | | | | | | | 322,000 | | | | 312,372 | | | | 0.04 | |
Ukraine (Rep of) 7.750%, 09/01/2024 | | | | | | | 278,000 | | | | 267,622 | | | | 0.03 | |
Ukraine (Rep of) 7.750%, 09/01/2025 | | | | | | | 348,000 | | | | 333,113 | | | | 0.04 | |
Ukraine (Rep of) 7.750%, 09/01/2026 | | | | | | | 1,146,000 | | | | 1,092,482 | | | | 0.13 | |
Ukraine (Rep of) 7.750%, 09/01/2027 | | | | | | | 1,176,000 | | | | 1,117,318 | | | | 0.14 | |
Ukraine (Rep of), FRN 2.731%, 05/31/2040(2) | | | | | | | 294,000 | | | | 92,925 | | | | 0.01 | |
Ukreximbank Via Biz Finance PLC 9.750%, 01/22/2025 | | | | | | | 1,580,000 | | | | 1,520,750 | | | | 0.19 | |
See accompanying notes to the financial statements.
61
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Ukraine - (continued) | | | | | | | | | | | | | | | | |
UkrLandFarming PLC 10.875%, 03/26/2018 | | | | | | | 1,012,816 | | | $ | 324,101 | | | | 0.04 | |
| | | | | | | | | | | 12,918,272 | | | | 1.59 | |
United Arab Emirates (Cost $3,359,082) | | | | | | | | | | | | | | | | |
Abu Dhabi (Rep of) 3.125%, 05/03/2026 | | | | | | | 860,000 | | | | 894,142 | | | | 0.11 | |
Emirate of Dubai (Rep of) 7.750%, 10/05/2020 | | | | | | | 1,579,000 | | | | 1,867,878 | | | | 0.23 | |
Emirate of Dubai (Rep of) 5.250%, 01/30/2043 | | | | | | | 310,000 | | | | 296,050 | | | | 0.03 | |
Topaz Marine S.A. 8.625%, 11/01/2018 | | | | | | | 320,000 | | | | 310,291 | | | | 0.04 | |
| | | | | | | | | | | 3,368,361 | | | | 0.41 | |
Uruguay (Cost $7,505,046) | | | | | | | | | | | | | | | | |
Uruguay (Rep of) 4.500%, 08/14/2024 | | | | | | | 1,554,374 | | | | 1,700,485 | | | | 0.21 | |
Uruguay (Rep of) 7.875%, 01/15/2033 | | | | | | | 2,226,000 | | | | 3,090,801 | | | | 0.38 | |
Uruguay (Rep of) 7.625%, 03/21/2036 | | | | | | | 1,064,000 | | | | 1,466,724 | | | | 0.18 | |
Uruguay (Rep of) 4.125%, 11/20/2045 | | | | | | | 514,235 | | | | 469,754 | | | | 0.06 | |
Uruguay (Rep of) 5.100%, 06/18/2050 | | | | | | | 956,000 | | | | 952,415 | | | | 0.11 | |
| | | | | | | | | | | 7,680,179 | | | | 0.94 | |
Venezuela (Cost $66,501,386) | | | | | | | | | | | | | | | | |
Petroleos de Venezuela S.A. 5.250%, 04/12/2017 | | | | | | | 8,128,400 | | | | 6,543,362 | | | | 0.80 | |
Petroleos de Venezuela S.A. 8.500%, 11/02/2017 | | | | | | | 921,133 | | | | 670,125 | | | | 0.08 | |
Petroleos de Venezuela S.A. 8.500%, 10/27/2020(3) | | | | | | | 44,740,000 | | | | 32,436,500 | | | | 3.98 | |
Petroleos de Venezuela S.A. 9.000%, 11/17/2021 | | | | | | | 2,659,076 | | | | 1,316,243 | | | | 0.16 | |
Petroleos de Venezuela S.A. 12.750%, 02/17/2022 | | | | | | | 405,000 | | | | 239,962 | | | | 0.03 | |
Petroleos de Venezuela S.A. 5.375%, 04/12/2027 | | | | | | | 580,000 | | | | 212,164 | | | | 0.03 | |
Petroleos de Venezuela S.A. 9.750%, 05/17/2035 | | | | | | | 2,623,147 | | | | 1,167,956 | | | | 0.14 | |
Venezuela (Rep of) 7.750%, 10/13/2019 | | | | | | | 1,380,000 | | | | 700,350 | | | | 0.09 | |
Venezuela (Rep of) 6.000%, 12/09/2020 | | | | | | | 853,000 | | | | 378,732 | | | | 0.05 | |
Venezuela (Rep of) 12.750%, 08/23/2022 | | | | | | | 2,226,000 | | | | 1,287,741 | | | | 0.16 | |
Venezuela (Rep of) 9.000%, 05/07/2023 | | | | | | | 680,000 | | | | 312,120 | | | | 0.04 | |
Venezuela (Rep of) 8.250%, 10/13/2024 | | | | | | | 5,030,000 | | | | 2,218,230 | | | | 0.27 | |
Venezuela (Rep of) 7.650%, 04/21/2025 | | | | | | | 742,000 | | | | 320,544 | | | | 0.04 | |
Venezuela (Rep of) 11.750%, 10/21/2026 | | | | | | | 13,885,200 | | | | 7,671,573 | | | | 0.94 | |
Venezuela (Rep of) 9.250%, 09/15/2027 | | | | | | | 1,620,000 | | | | 811,620 | | | | 0.10 | |
Venezuela (Rep of) 9.250%, 05/07/2028 | | | | | | | 3,353,000 | | | | 1,554,115 | | | | 0.19 | |
Venezuela (Rep of) 11.950%, 08/05/2031 | | | | | | | 14,803,200 | | | | 8,141,760 | | | | 1.00 | |
| | | | | | | | | | | 65,983,097 | | | | 8.10 | |
Vietnam (Cost $3,973,179) | | | | | | | | | | | | | | | | |
Vietnam (Rep of) 6.750%, 01/29/2020 | | | | | | | 3,181,000 | | | | 3,543,173 | | | | 0.44 | |
Vietnam (Rep of) 4.800%, 11/19/2024 | | | | | | | 482,000 | | | | 509,676 | | | | 0.06 | |
| | | | | | | | | | | 4,052,849 | | | | 0.50 | |
Zambia (Cost $4,357,350) | | | | | | | | | | | | | | | | |
Zambia (Rep of) 8.500%, 04/14/2024 | | | | | | | 540,000 | | | | 525,480 | | | | 0.06 | |
Zambia (Rep of) 8.970%, 07/30/2027 | | | | | | | 4,380,000 | | | | 4,294,327 | | | | 0.53 | |
| | | | | | | | | | | 4,819,807 | | | | 0.59 | |
Total Debt Securities (Cost $702,480,372) | | | | | | | | | | | 711,381,813 | | | | 87.31 | |
| | | | |
Bank Loans | | | | | | | | | | | | | | | | |
| | | | |
China (Cost $281,761) | | | | | | | | | | | | | | | | |
Far East Energy Bermuda Ltd. 10.000%, 03/29/2016(5) | | | | | | | 638,734 | | | | — | | | | — | |
Far East Energy Bermuda Ltd. 25.000%, 03/29/2016(5) | | | | | | | 281,761 | | | | — | | | | — | |
| | | | | | | | | | | — | | | | — | |
United Arab Emirates (Cost $9,386,086) | | | | | | | | | | | | | | | | |
DP World Ltd. 3.750%, 09/30/2022 | | | | | | | 6,291,269 | | | | 5,253,211 | | | | 0.64 | |
See accompanying notes to the financial statements.
62
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
United Arab Emirates - (continued) | | | | | | | | | | | | | | | | |
DP World Ltd. 4.250%, 09/30/2022 | | | | | | | 5,613,656 | | | $ | 4,701,436 | | | | 0.58 | |
| | | | | | | | | | | 9,954,647 | | | | 1.22 | |
Total Bank Loans (Cost $9,667,847) | | | | | | | | | | | 9,954,647 | | | | 1.22 | |
| | | | |
| | | Currency(1) | | | Shares | | | Value | | | % of Net
Assets | |
Equity Securities | | | | | | | | | | | | | | | | |
| | | | |
Mexico (Cost $13,827) | | | | | | | | | | | | | | | | |
Corp. GEO S.A.B. de C.V., Series B | | | MXN | | | | 36,793 | | | $ | 14,210 | | | | — | |
| | | | |
Total Equity Securities (Cost $13,827) | | | | | | | | | | | 14,210 | | | | — | |
| | | | |
| | | Currency(1) | | | Number
of
Warrants | | | Value | | | % of Net
Assets | |
Warrants | | | | | | | | | | | | | | | | |
| | | | |
China (Cost $27,482) | | | | | | | | | | | | | | | | |
Far East Energy Bermuda Ltd., | | | | | | | 1,308,684 | | | $ | — | | | | — | |
Exp. 12/31/2017, Strike Price $11.92(5) | | | | | | | | | | | | | | | | |
| | | | |
Mexico (Cost $—) | | | | | | | | | | | | | | | | |
Corp. GEO S.A.B. de C.V., | | | MXN | | | | 63,823 | | | | — | | | | — | |
Exp. 07/31/2022, Strike Price $9.75(5) | | | | | | | | | | | | | | | | |
| | | | |
Total Warrants (Cost $27,482) | | | | | | | | | | | — | | | | — | |
| | | | |
Total Investments in Securities (Cost $712,189,528) | | | | | | | | | | | 721,350,670 | | | | 88.53 | |
| | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Fully Funded Total Return Swaps | | | | | | | | | | | | | | | | |
| | | | |
Indonesia (Cost $5,608,161) | | | | | | | | | | | | | | | | |
Indonesia (Rep of), Issued by ANZ Banking Corp.,
8.375%, 03/15/2024 | | | IDR | | | �� | 5,702,000,000 | | | | $463,963 | | | | 0.06 | |
Indonesia (Rep of), Issued by ANZ Banking Corp.,
9.000%, 03/15/2029 | | | IDR | | | | 1,592,000,000 | | | | 137,252 | | | | 0.02 | |
Indonesia (Rep of), Issued by ANZ Banking Corp.,
8.375%, 03/15/2034 | | | IDR | | | | 262,000,000 | | | | 21,101 | | | | — | |
Indonesia (Rep of), Issued by HSBC Bank,
8.375%, 03/15/2034 | | | IDR | | | | 3,022,000,000 | | | | 243,390 | | | | 0.03 | |
Indonesia (Rep of), Issued by Standard Chartered,
12.800%, 06/15/2021 | | | IDR | | | | 1,840,000,000 | | | | 173,098 | | | | 0.02 | |
Indonesia (Rep of), Issued by Standard Chartered,
0.084%, 03/15/2024 | | | IDR | | | | 6,958,000,000 | | | | 566,161 | | | | 0.07 | |
See accompanying notes to the financial statements.
63
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Indonesia - (continued) | | | | | | | | | | | | | | | | |
Indonesia (Rep of), Issued by Standard Chartered,
11.000%, 09/15/2025 | | | IDR | | | | 3,602,000,000 | | | $ | 343,267 | | | | 0.04 | |
Indonesia (Rep of), Issued by Standard Chartered,
8.375%, 09/15/2026 | | | IDR | | | | 7,600,000,000 | | | | 627,054 | | | | 0.08 | |
Indonesia (Rep of), Issued by Standard Chartered,
7.000%, 05/15/2027 | | | IDR | | | | 2,613,000,000 | | | | 196,474 | | | | 0.02 | |
Indonesia (Rep of), Issued by Standard Chartered,
9.000%, 03/15/2029 | | | IDR | | | | 11,300,000,000 | | | | 974,214 | | | | 0.12 | |
Indonesia (Rep of), Issued by Standard Chartered,
10.500%, 08/15/2030 | | | IDR | | | | 8,356,000,000 | | | | 798,599 | | | | 0.10 | |
Indonesia (Rep of), Issued by Standard Chartered,
8.375%, 03/15/2034 | | | IDR | | | | 2,727,000,000 | | | | 219,631 | | | | 0.03 | |
| | | | | | | | | | | 4,764,204 | | | | 0.59 | |
Total Fully Funded Total Return Swaps (Cost $5,608,161) | | | | | | | | | | | 4,764,204 | | | | 0.59 | |
| | | | |
Total Investments (Total Cost $717,797,689) | | | | | | | | | | | 726,114,874 | | | | 89.12 | |
| | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for further detail) | | | | | | | | 88,652,705 | | | | 10.88 | |
| | | | |
Net Assets | | | | | | | | | | $ | 814,767,579 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | Zero coupon bond - interest rate reflects effective yield on the date of purchase. |
| (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. |
| (4) | Issuer has defaulted on terms of debt obligation. |
| (5) | Security has been deemed worthless and is a Level 3 investment. |
| (6) | Restricted security that has been deemed illiquid. At October 31, 2016, the value of these restricted illiquid securities amounted to $2,153,160 or 0.3% of net assets. Additional information on each restricted illiquid security is as follows: |
| | | | | | | | |
| SECURITY | | ACQUISITION DATE | | | ACQUISITION COST | |
Egypt (Rep of), 6.125%, 01/31/2022 | | | 01/24/2017 | | | | $980,000 | |
Egypt (Rep of), 8.500%, 01/31/2047 | | | 01/24/2017 | | | | 1,140,000 | |
Far East Energy Bermuda Ltd. 13.000%, 01/15/2016 | | | 01/14/2013-07/20/2015 | | | | 1,953,742 | |
Far East Energy Bermuda Ltd., Exp. 12/31/2017, Strike Price $11.92 | | | 01/14/2013 | | | | 27,482 | |
| (7) | Security is a payment in-kind bond, and unless otherwise noted in the description of the security, pays its entire coupon on an in-kind basis. |
| (9) | Inflation-indexed bonds are shown at original par and stated coupon rate. |
Percentages shown are based on net assets.
See accompanying notes to the financial statements.
64
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
At October 31, 2016, 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) | |
11/03/2016 | | Deutsche Bank | | Brazilian Real | | | 13,326,680 | | | United States Dollar | | | 4,204,000 | | | $ | (32,862 | ) |
11/03/2016 | | HSBC Bank | | Brazilian Real | | | 1,536,863 | | | United States Dollar | | | 475,000 | | | | 6,025 | |
11/03/2016 | | HSBC Bank | | Brazilian Real | | | 20,648,997 | | | United States Dollar | | | 6,612,970 | | | | (150,009 | ) |
11/03/2016 | | Merrill Lynch | | Brazilian Real | | | 15,114,330 | | | United States Dollar | | | 4,620,000 | | | | 110,657 | |
11/03/2016 | | Citibank | | United States Dollar | | | 9,045,560 | | | Brazilian Real | | | 28,670,717 | | | | 71,869 | |
11/03/2016 | | JP Morgan | | United States Dollar | | | 6,424,521 | | | Brazilian Real | | | 20,394,000 | | | | 41,372 | |
11/03/2016 | | Morgan Stanley | | United States Dollar | | | 477,402 | | | Brazilian Real | | | 1,562,153 | | | | (11,539 | ) |
11/10/2016 | | BNP Paribas | | Argentine Peso | | | 2,118,677 | | | United States Dollar | | | 135,708 | | | | 3,210 | |
11/10/2016 | | BNP Paribas | | United States Dollar | | | 1,220,685 | | | Argentine Peso | | | 18,719,201 | | | | (6,706 | ) |
11/10/2016 | | JP Morgan | | United States Dollar | | | 1,199,388 | | | Argentine Peso | | | 18,719,201 | | | | (28,003 | ) |
11/25/2016 | | ANZ | | United States Dollar | | | 251,234 | | | Euro | | | 230,875 | | | | (2,464 | ) |
11/25/2016 | | Deutsche Bank | | United States Dollar | | | 4,504,535 | | | Euro | | | 4,086,725 | | | | 13,838 | |
11/29/2016 | | JP Morgan | | Romanian Leu | | | 8,436,641 | | | United States Dollar | | | 2,140,790 | | | | (84,590 | ) |
11/30/2016 | | ANZ | | Indian Rupee | | | 132,866,003 | | | United States Dollar | | | 1,964,311 | | | | 19,208 | |
11/30/2016 | | ANZ | | Indian Rupee | | | 219,073,980 | | | United States Dollar | | | 3,261,000 | | | | 9,493 | |
11/30/2016 | | Barclays | | Indian Rupee | | | 102,096,263 | | | United States Dollar | | | 1,507,846 | | | | 16,320 | |
11/30/2016 | | BNP Paribas | | Indian Rupee | | | 69,090,000 | | | United States Dollar | | | 1,020,306 | | | | 11,119 | |
11/30/2016 | | BNP Paribas | | Indian Rupee | | | 97,776,000 | | | United States Dollar | | | 1,455,000 | | | | 4,670 | |
11/30/2016 | | Deutsche Bank | | Indian Rupee | | | 36,212,787 | | | United States Dollar | | | 536,565 | | | | 4,045 | |
11/30/2016 | | HSBC Bank | | Indian Rupee | | | 68,120,000 | | | United States Dollar | | | 1,006,352 | | | | 10,592 | |
11/30/2016 | | UBS | | Indian Rupee | | | 157,016,000 | | | United States Dollar | | | 2,324,355 | | | | 19,692 | |
11/30/2016 | | ANZ | | Indonesian Rupiah | | | 7,033,703,759 | | | United States Dollar | | | 538,568 | | | | (1,234 | ) |
11/30/2016 | | BNP Paribas | | Indonesian Rupiah | | | 12,789,043,000 | | | United States Dollar | | | 970,116 | | | | 6,892 | |
11/30/2016 | | BNP Paribas | | Malaysian Ringgit | | | 138,381 | | | United States Dollar | | | 32,864 | | | | 64 | |
11/30/2016 | | HSBC Bank | | Malaysian Ringgit | | | 103,989 | | | United States Dollar | | | 24,759 | | | | (15 | ) |
11/30/2016 | | JP Morgan | | Malaysian Ringgit | | | 138,857 | | | United States Dollar | | | 33,010 | | | | 31 | |
11/30/2016 | | Merrill Lynch | | Malaysian Ringgit | | | 172,996 | | | United States Dollar | | | 41,258 | | | | (93 | ) |
11/30/2016 | | Morgan Stanley | | Malaysian Ringgit | | | 9,210,960 | | | United States Dollar | | | 2,200,000 | | | | (8,219 | ) |
11/30/2016 | | Morgan Stanley | | Malaysian Ringgit | | | 20,811,900 | | | United States Dollar | | | 5,054,499 | | | | (102,233 | ) |
11/30/2016 | | UBS | | Malaysian Ringgit | | | 20,753,860 | | | United States Dollar | | | 5,041,138 | | | | (102,682 | ) |
11/30/2016 | | HSBC Bank | | Polish Zloty | | | 22,415,043 | | | United States Dollar | | | 5,834,782 | | | | (125,717 | ) |
11/30/2016 | | Barclays | | Russian Ruble | | | 779,663,164 | | | United States Dollar | | | 11,764,505 | | | | 439,661 | |
11/30/2016 | | Credit Suisse | | Russian Ruble | | | 108,948,336 | | | United States Dollar | | | 1,680,000 | | | | 25,382 | |
11/30/2016 | | Credit Suisse | | Russian Ruble | | | 106,464,481 | | | United States Dollar | | | 1,641,729 | | | | 24,773 | |
11/30/2016 | | JP Morgan | | Russian Ruble | | | 108,418,745 | | | United States Dollar | | | 1,675,171 | | | | 21,921 | |
11/30/2016 | | Morgan Stanley | | Russian Ruble | | | 206,025,396 | | | United States Dollar | | | 3,280,398 | | | | (55,456 | ) |
11/30/2016 | | Goldman Sachs | | Taiwan Dollar | | | 12,517,550 | | | United States Dollar | | | 395,000 | | | | 1,690 | |
11/30/2016 | | JP Morgan | | Taiwan Dollar | | | 340,648,678 | | | United States Dollar | | | 10,817,678 | | | | (22,283 | ) |
11/30/2016 | | UBS | | Taiwan Dollar | | | 37,461,760 | | | United States Dollar | | | 1,184,000 | | | | 3,189 | |
11/30/2016 | | BNP Paribas | | Thai Baht | | | 685,585,836 | | | United States Dollar | | | 19,461,044 | | | | 115,237 | |
11/30/2016 | | Citibank | | Thai Baht | | | 80,672,500 | | | United States Dollar | | | 2,300,000 | | | | 3,530 | |
11/30/2016 | | Deutsche Bank | | Turkish Lira | | | 14,478,041 | | | United States Dollar | | | 4,833,644 | | | | (184,306 | ) |
11/30/2016 | | HSBC Bank | | Turkish Lira | | | 1,967,110 | | | United States Dollar | | | 653,275 | | | | (21,577 | ) |
11/30/2016 | | ANZ | | United States Dollar | | | 3,444 | | | Indonesian Rupiah | | | 46,000,000 | | | | (70 | ) |
11/30/2016 | | HSBC Bank | | United States Dollar | | | 1,116 | | | Indonesian Rupiah | | | 14,830,000 | | | | (17 | ) |
11/30/2016 | | BNP Paribas | | United States Dollar | | | 3,404,855 | | | South African Rand | | | 48,127,081 | | | | (143,254 | ) |
11/30/2016 | | BNP Paribas | | United States Dollar | | | 829,613 | | | Turkish Lira | | | 2,575,450 | | | | 2,558 | |
11/30/2016 | | Merrill Lynch | | United States Dollar | | | 1,917,874 | | | Turkish Lira | | | 5,946,469 | | | | 8,283 | |
12/02/2016 | | Goldman Sachs | | United States Dollar | | | 1,268,200 | | | Brazilian Real | | | 4,006,624 | | | | 25,436 | |
12/02/2016 | | HSBC Bank | | United States Dollar | | | 6,554,717 | | | Brazilian Real | | | 20,648,997 | | | | 149,868 | |
12/02/2016 | | HSBC Bank | | United States Dollar | | | 1,263,400 | | | Brazilian Real | | | 3,975,200 | | | | 30,384 | |
12/09/2016 | | HSBC Bank | | Polish Zloty | | | 26,090,412 | | | United States Dollar | | | 6,821,201 | | | | (176,708 | ) |
12/09/2016 | | Merrill Lynch | | Romanian Leu | | | 7,628,141 | | | United States Dollar | | | 1,930,002 | | | | (70,291 | ) |
12/09/2016 | | Barclays | | Russian Ruble | | | 321,065,128 | | | United States Dollar | | | 5,113,764 | | | | (102,432 | ) |
12/09/2016 | | Deutsche Bank | | Russian Ruble | | | 224,898,254 | | | United States Dollar | | | 3,464,851 | | | | 45,465 | |
01/04/2017 | | Deutsche Bank | | Brazilian Real | | | 20,017,752 | | | United States Dollar | | | 6,024,000 | | | | 122,074 | |
See accompanying notes to the financial statements.
65
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | | | |
Settlement Date | | Counterparty | | Currency Buy | | Currency
Buy Amount
(Local
Currency) | | | Currency Sell | | Currency
Sell Amount
(Local
Currency) | | | Unrealized
Gain/(Loss) | |
01/04/2017 | | Deutsche Bank | | Brazilian Real | | | 10,663,731 | | | United States Dollar | | | 3,211,000 | | | | $63,098 | |
01/04/2017 | | Goldman Sachs | | Brazilian Real | | | 30,632,495 | | | United States Dollar | | | 9,235,000 | | | | 170,131 | |
01/04/2017 | | Santander | | Brazilian Real | | | 60,354,120 | | | United States Dollar | | | 18,440,000 | | | | 90,597 | |
01/04/2017 | | Goldman Sachs | | United States Dollar | | | 3,736,338 | | | Brazilian Real | | | 16,253,071 | | | | (1,253,862 | ) |
01/04/2017 | | JP Morgan | | United States Dollar | | | 1,360,000 | | | Brazilian Real | | | 4,358,528 | | | | 21,796 | |
01/04/2017 | | Merrill Lynch | | United States Dollar | | | 1,263,400 | | | Brazilian Real | | | 4,023,297 | | | | 28,122 | |
01/04/2017 | | Merrill Lynch | | United States Dollar | | | 2,036,001 | | | Brazilian Real | | | 8,096,157 | | | | (449,772 | ) |
01/06/2017 | | HSBC Bank | | Chinese Offshore Yuan | | | 4,218,812 | | | United States Dollar | | | 637,861 | | | | (18,815 | ) |
01/06/2017 | | HSBC Bank | | Chinese Offshore Yuan | | | 19,874,389 | | | United States Dollar | | | 2,986,385 | | | | (70,125 | ) |
01/06/2017 | | HSBC Bank | | United States Dollar | | | 267,470 | | | Chinese Offshore Yuan | | | 1,798,201 | | | | 3,612 | |
01/06/2017 | | HSBC Bank | | United States Dollar | | | 3,250,000 | | | Chinese Offshore Yuan | | | 22,295,000 | | | | (21,447 | ) |
01/26/2017 | | ANZ | | Chinese Yuan Renminbi | | | 4,449,743 | | | United States Dollar | | | 655,000 | | | | (3,748 | ) |
01/26/2017 | | ANZ | | Chinese Yuan Renminbi | | | 119,183,884 | | | United States Dollar | | | 17,572,264 | | | | (128,836 | ) |
01/26/2017 | | Barclays | | Chinese Yuan Renminbi | | | 13,831,200 | | | United States Dollar | | | 2,034,000 | | | | (9,703 | ) |
01/26/2017 | | Citibank | | Korean Won | | | 2,013,051,600 | | | United States Dollar | | | 1,778,000 | | | | (19,169 | ) |
01/26/2017 | | Goldman Sachs | | Korean Won | | | 555,835,500 | | | United States Dollar | | | 495,000 | | | | (9,359 | ) |
01/26/2017 | | JP Morgan | | Korean Won | | | 16,470,655,913 | | | United States Dollar | | | 14,694,135 | | | | (303,492 | ) |
01/31/2017 | | BNP Paribas | | Chilean Peso | | | 2,118,262,081 | | | United States Dollar | | | 3,148,428 | | | | 71,388 | |
01/31/2017 | | BNP Paribas | | Colombian Peso | | | 5,958,915,123 | | | United States Dollar | | | 1,996,955 | | | | (40,769 | ) |
01/31/2017 | | JP Morgan | | Czech Koruna | | | 158,894,099 | | | United States Dollar | | | 6,445,485 | | | | 57,977 | |
01/31/2017 | | Deutsche Bank | | Hungarian Forint | | | 3,923,873,165 | | | United States Dollar | | | 13,884,165 | | | | 89,933 | |
01/31/2017 | | Citibank | | Indian Rupee | | | 318,961,000 | | | United States Dollar | | | 4,712,085 | | | | 9,450 | |
01/31/2017 | | JP Morgan | | Indian Rupee | | | 179,221,000 | | | United States Dollar | | | 2,649,630 | | | | 3,352 | |
01/31/2017 | | Merrill Lynch | | Indian Rupee | | | 329,238,241 | | | United States Dollar | | | 4,856,379 | | | | 17,287 | |
01/31/2017 | | JP Morgan | | Israeli Shekel | | | 12,509,553 | | | United States Dollar | | | 3,247,636 | | | | 21,077 | |
01/31/2017 | �� | BNP Paribas | | Malaysian Ringgit | | | 3,289,386 | | | United States Dollar | | | 785,000 | | | | (3,811 | ) |
01/31/2017 | | Citibank | | Malaysian Ringgit | | | 39,674,035 | | | United States Dollar | | | 9,464,226 | | | | (42,129 | ) |
01/31/2017 | | Citibank | | Mexican Peso | | | 8,870,449 | | | United States Dollar | | | 470,883 | | | | (6,385 | ) |
01/31/2017 | | Citibank | | Mexican Peso | | | 29,329,493 | | | United States Dollar | | | 1,560,810 | | | | (24,979 | ) |
01/31/2017 | | Citibank | | Mexican Peso | | | 38,240,811 | | | United States Dollar | | | 2,033,307 | | | | (30,838 | ) |
01/31/2017 | | Citibank | | Peruvian Nuevo Sol | | | 13,388,778 | | | United States Dollar | | | 3,921,153 | | | | 17,568 | |
01/31/2017 | | Credit Suisse | | Peruvian Nuevo Sol | | | 9,283,300 | | | United States Dollar | | | 2,725,172 | | | | 5,796 | |
01/31/2017 | | Credit Suisse | | Peruvian Nuevo Sol | | | 9,712,818 | | | United States Dollar | | | 2,862,605 | | | | (5,280 | ) |
01/31/2017 | | Barclays | | Philippine Peso | | | 22,614,980 | | | United States Dollar | | | 466,000 | | | | (2,244 | ) |
01/31/2017 | | Merrill Lynch | | Philippine Peso | | | 75,615,108 | | | United States Dollar | | | 1,556,827 | | | | (6,221 | ) |
01/31/2017 | | HSBC Bank | | Polish Zloty | | | 35,661,360 | | | United States Dollar | | | 8,967,914 | | | | 106,057 | |
01/31/2017 | | Merrill Lynch | | Polish Zloty | | | 9,274,767 | | | United States Dollar | | | 2,338,806 | | | | 21,143 | |
01/31/2017 | | Merrill Lynch | | Polish Zloty | | | 4,457,308 | | | United States Dollar | | | 1,125,590 | | | | 8,564 | |
01/31/2017 | | Merrill Lynch | | Romanian Leu | | | 14,853,530 | | | United States Dollar | | | 3,594,842 | | | | 30,873 | |
01/31/2017 | | Citibank | | Russian Ruble | | | 481,597,691 | | | United States Dollar | | | 7,561,590 | | | | (137,754 | ) |
01/31/2017 | | ANZ | | Singapore Dollar | | | 1,001,549 | | | United States Dollar | | | 720,000 | | | | 200 | |
01/31/2017 | | ANZ | | Singapore Dollar | | | 6,476,939 | | | United States Dollar | | | 4,675,815 | | | | (18,334 | ) |
01/31/2017 | | HSBC Bank | | United States Dollar | | | 455,000 | | | Mexican Peso | | | 8,689,903 | | | | (44 | ) |
01/31/2017 | | Deutsche Bank | | United States Dollar | | | 950,046 | | | Polish Zloty | | | 3,771,345 | | | | (9,566 | ) |
01/31/2017 | | Citibank | | United States Dollar | | | 5,160,000 | | | Singapore Dollar | | | 7,186,461 | | | | (7,689 | ) |
01/31/2017 | | Citibank | | United States Dollar | | | 5,169,000 | | | Singapore Dollar | | | 7,206,413 | | | | (13,036 | ) |
01/31/2017 | | Barclays | | United States Dollar | | | 94,644 | | | South African Rand | | | 1,340,872 | | | | (2,949 | ) |
01/31/2017 | | JP Morgan | | United States Dollar | | | 3,330,000 | | | Turkish Lira | | | 10,400,256 | | | | 34,451 | |
03/02/2017 | | BNP Paribas | | United States Dollar | | | 3,971,478 | | | Brazilian Real | | | 15,643,651 | | | | (753,525 | ) |
03/06/2017 | | HSBC Bank | | Chinese Offshore Yuan | | | 26,500,860 | | | United States Dollar | | | 4,163,202 | | | | (290,531 | ) |
03/06/2017 | | HSBC Bank | | Chinese Offshore Yuan | | | 42,770,000 | | | United States Dollar | | | 6,710,599 | | | | (460,457 | ) |
03/06/2017 | | HSBC Bank | | United States Dollar | | | 4,645,000 | | | Chinese Offshore Yuan | | | 28,989,445 | | | | 408,663 | |
03/06/2017 | | HSBC Bank | | United States Dollar | | | 4,717,450 | | | Chinese Offshore Yuan | | | 30,344,995 | | | | 283,021 | |
03/06/2017 | | HSBC Bank | | United States Dollar | | | 1,560,000 | | �� | Chinese Offshore Yuan | | | 9,936,420 | | | | 107,954 | |
03/31/2017 | | Merrill Lynch | | Mexican Peso | | | 121,233,258 | | | United States Dollar | | | 6,785,317 | | | | (478,939 | ) |
03/31/2017 | | Santander | | Mexican Peso | | | 121,217,935 | | | United States Dollar | | | 6,795,108 | | | | (489,528 | ) |
03/31/2017 | | Merrill Lynch | | United States Dollar | | | 523,365 | | | Mexican Peso | | | 9,942,624 | | | | 6,164 | |
05/11/2017 | | HSBC Bank | | Chinese Offshore Yuan | | | 22,461,415 | | | United States Dollar | | | 3,350,000 | | | | (81,261 | ) |
05/11/2017 | | HSBC Bank | | Chinese Offshore Yuan | | | 19,835,766 | | | United States Dollar | | | 2,971,205 | | | | (84,569 | ) |
See accompanying notes to the financial statements.
66
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | | | | | | | | | |
Settlement Date | | Counterparty | | | Currency Buy | | | Currency
Buy Amount
(Local
Currency) | | | Currency Sell | | | Currency
Sell Amount
(Local
Currency) | | | Unrealized
Gain/(Loss) | |
05/11/2017 | | | HSBC Bank | | | | United States Dollar | | | | 5,447,000 | | | | Chinese Offshore Yuan | | | | 36,454,048 | | | | $141,958 | |
05/11/2017 | | | UBS | | | | United States Dollar | | | | 872,000 | | | | Chinese Offshore Yuan | | | | 5,843,133 | | | | 21,667 | |
09/08/2017 | | | JP Morgan | | | | Czech Koruna | | | | 14,716,939 | | | | Euro | | | | 549,406 | | | | 1,003 | |
09/08/2017 | | | Merrill Lynch | | | | Czech Koruna | | | | 202,004,140 | | | | Euro | | | | 7,540,000 | | | | 15,017 | |
09/08/2017 | | | Merrill Lynch | | | | Czech Koruna | | | | 29,294,632 | | | | Euro | | | | 1,098,435 | | | | (3,375 | ) |
10/03/2017 | | | Deutsche Bank | | | | United States Dollar | | | | 3,211,000 | | | | Brazilian Real | | | | 11,421,527 | | | | (58,333 | ) |
10/03/2017 | | | Deutsche Bank | | | | United States Dollar | | | | 6,024,000 | | | | Brazilian Real | | | | 21,454,476 | | | | (117,196 | ) |
10/03/2017 | | | Goldman Sachs | | | | United States Dollar | | | | 9,235,000 | | | | Brazilian Real | | | | 32,811,955 | | | | (157,196 | ) |
01/03/2018 | | | Santander | | | | United States Dollar | | | | 18,440,000 | | | | Brazilian Real | | | | 65,840,020 | | | | (63,840 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | $ | (3,885,399 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
At October 31, 2016, 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 | | 12.255% | | | BRL | | | | 18,190,409 | | | | 01/02/2019 | | | | $ 50,501 | | | HSBC Bank |
| | | | | | |
Brazil CETIP Interbank Deposit Rate | | 12.225% | | | BRL | | | | 1,968,949 | | | | 01/02/2019 | | | | 6,989 | | | HSBC Bank |
| | | | | | |
Brazil CETIP Interbank Deposit Rate | | 15.420% | | | BRL | | | | 18,283,628 | | | | 01/02/2019 | | | | 554,717 | | | HSBC Bank |
| | | | | | |
Brazil CETIP Interbank Deposit Rate | | 12.220% | | | BRL | | | | 19,385,267 | | | | 01/02/2019 | | | | 67,340 | | | HSBC Bank |
| | | | | | |
Brazil CETIP Interbank Deposit Rate | | 15.715% | | | BRL | | | | 8,509,458 | | | | 01/02/2019 | | | | 572,559 | | | HSBC Bank |
| | | | | | |
Brazil CETIP Interbank Deposit Rate | | 13.850% | | | BRL | | | | 37,054,198 | | | | 01/02/2019 | | | | 576,767 | | | HSBC Bank |
| | | | | | |
Brazil CETIP Interbank Deposit Rate | | 11.503% | | | BRL | | | | 27,653,463 | | | | 01/02/2019 | | | | (2,557 | ) | | HSBC Bank |
| | | | | | |
Brazil CETIP Interbank Deposit Rate | | 11.998% | | | BRL | | | | 52,214,763 | | | | 01/02/2019 | | | | 119,743 | | | BNP Paribas |
| | | | | | |
Brazil CETIP Interbank Deposit Rate | | 12.055% | | | BRL | | | | 17,374,074 | | | | 01/02/2019 | | | | 47,435 | | | BNP Paribas |
| | | | | | |
Brazil CETIP Interbank Deposit Rate | | 12.016% | | | BRL | | | | 49,781,061 | | | | 01/02/2019 | | | | 126,040 | | | BNP Paribas |
| | | | | | |
Brazil CETIP Interbank Deposit Rate | | 12.340% | | | BRL | | | | 6,629,467 | | | | 01/04/2021 | | | | 85,806 | | | HSBC Bank |
| | | | | | |
MYR-KLIBOR-BNM 3 Month Rate | | 3.555% | | | MYR | | | | 28,198,000 | | | | 03/08/2018 | | | | 22,941 | | | HSBC Bank |
See accompanying notes to the financial statements.
67
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | | | | | |
Pay Rate Index/
Pay Rate | | Receive Rate/ Receive Rate Index | | Notional Amount | | | Expiration
Date | | | Unrealized
Gains/
(Losses) | | | Counterparty |
| | | | | | |
MYR-KLIBOR-BNM 3 Month Rate | | 3.560% | | | MYR | | | | 24,122,000 | | | | 03/22/2018 | | | $ | 20,174 | | | HSBC Bank |
| | | | | | |
WIBOR Poland 6 Month Rate | | 2.110% | | | PLN | | | | 5,400,000 | | | | 07/07/2026 | | | | (47,056 | ) | | Barclays |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | 2,201,399 | | | |
| | | | | | | | | | | | | | | | | | | | |
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, 2016:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Debt Securities | | | | | | | | | | | | | | | | |
Corporate Bonds | | $ | — | | | $ | 168,766,080 | | | $ | — | | | $ | 168,766,080 | |
Corporate Convertible Bonds | | | — | | | | — | | | | — | | | | — | |
Financial Certificates | | | — | | | | 10,477,033 | | | | — | | | | 10,477,033 | |
Government Agencies | | | — | | | | 24,271,382 | | | | — | | | | 24,271,382 | |
Government Bonds | | | — | | | | 487,059,195 | | | | — | | | | 487,059,195 | |
Index Linked Government Bonds | | | — | | | | 18,940,245 | | | | — | | | | 18,940,245 | |
Municipal Bonds | | | — | | | | 1,867,878 | | | | — | | | | 1,867,878 | |
| | | | | | | | | | | | | | | | |
Total Debt Securities | | | — | | | | 711,381,813 | | | | — | | | | 711,381,813 | |
Bank Loans | | | — | | | | — | | | | 9,954,647 | | | | 9,954,647 | |
Common Stock | | | 14,210 | | | | — | | | | — | | | | 14,210 | |
Warrants | | | — | | | | — | | | | — | | | | — | |
Fully Funded Total Return Swaps | | | — | | | | 4,764,204 | | | | — | | | | 4,764,204 | |
Total Investments | | $ | 14,210 | | | $ | 716,146,017 | | | $ | 9,954,647 | | | $ | 726,114,874 | |
| | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | $ | — | | | $ | 3,226,467 | | | $ | — | | | $ | 3,226,467 | |
Interest Rate Swap Contracts | | | — | | | | 2,251,012 | | | | — | | | | 2,251,012 | |
Liabilities: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | — | | | | (7,111,866) | | | | — | | | | (7,111,866) | |
Interest Rate Swap Contracts | | | — | | | | (49,613) | | | | — | | | | (49,613) | |
Total Other Financial Instruments | | $ | — | | | $ | (1,684,000) | | | $ | — | | | $ | (1,684,000) | |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2016, the Fund had transfers as disclosed below.
Transfers from Level 2 to Level 3
| | | | | | | | |
| Country | | Value | | | Reason | | |
Bank Loans | | | | | | | |
United Arab Emirates | | $ | 9,954,647 | | | Move to broker quote pricing during the current period. | |
| |
See accompanying notes to the financial statements.
68
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
Transfers from Level 3 to Level 2
| | | | | | | | |
| Country | | Value | | | Reason | | |
Corporate Bonds | | | | | | | |
Russian Federation | | $ | 331,463 | | | Security was fair valued in prior period. | |
| |
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used for the Fund during the period ending October 31, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Category and Subcategory | | Beginning
Balance
at 10/31/2015 | | | Accrued
Discounts (Premiums) | | | Purchases | | | Sales | | | Realized
Gains
(Losses) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Transfer
into
Level 3 | | | Transfer
out of
Level 3 | | | Ending
Balance
at 10/31/2016 | | | Change in
Unrealized
Appreciation
(Depreciation)
from Investments
still held
at 10/31/2016 | |
| Investments, at value Corporate Bonds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
China | | $ | 1,050,531 | | | | $(20,220) | | | | $ — | | | $ | — | | | $ | — | | | | $(1,030,311) | | | $ | — | | | $ | — | | | | $ — | | | | $(1,030,311) | |
Czech Republic | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1,051,288) | |
Russian Federation | | | 166,665 | | | | 6,899 | | | | 117,157 | | | | (93,297 | ) | | | (364,466 | ) | | | 498,505 | | | | — | | | | (331,463 | ) | | | — | | | | — | |
Bank Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
China | | | 558,077 | | | | — | | | | — | | | | — | | | | — | | | | (558,077) | | | | — | | | | — | | | | — | | | | (558,077) | |
Ukraine | | | 123,000 | | | | — | | | | — | | | | (123,000 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
United Arab Emirates | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 9,954,647 | | | | — | | | | 9,954,647 | | | | 568,560 | |
| |
Total | | $ | 1,898,273 | | | | $(13,321) | | | | $117,157 | | | $ | (216,297 | ) | | $ | (364,466 | ) | | | $(1,089,883) | | | $ | 9,954,647 | | | $ | (331,463 | ) | | | $9,954,647 | | | | $(2,071,116) | |
| |
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, 2016.
| | | | | | |
| Quantitative Information about Level 3 Fair Value Measurements |
| | | Fair Value at | | Valuation | | Unobservable |
| | | 10/31/2016 | | Technique | | Input |
Bank Loans | | $9,954,647 | | Broker quote | | Inputs to broker model |
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, 2016:
| | | | | | | | |
| | | Derivatives Not Accounted for as
Hedging Instruments | |
| | | Foreign
Exchange | | | Swaps | |
Assets: | | | | | | | | |
Unrealized Appreciation on Interest Rate Swap Contracts | | $ | — | | | $ | 2,251,012 | |
Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | | 3,226,467 | | | | — | |
| | | | |
| | $ | 3,226,467 | | | $ | 2,251,012 | |
| | | | |
| | |
Liabilities: | | | | | | | | |
Unrealized Depreciation on Interest Rate Swap Contracts | | $ | — | | | $ | (49,613 | ) |
Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | | | (7,111,866 | ) | | | — | |
| | | | |
| | $ | (7,111,866 | ) | | $ | (49,613 | ) |
| | | | |
See accompanying notes to the financial statements.
69
ASHMORE EMERGING MARKETS TOTAL RETURN FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
The Effect of Financial Derivative Instruments on the Statements of Operations for the Year Ended October 31, 2016:
| | | | | | | | |
| | | Derivatives Not Accounted for as
Hedging Instruments | |
| | | Foreign
Exchange | | | Swaps | |
Realized Gain (Loss) on Derivatives Recognized resulting from Operations: | | | | | | | | |
Net Realized Gain on Forward Foreign Currency Exchange Contracts | | $ | 8,590,751 | | | $ | — | |
Net Realized Loss on Currency Swap Contracts | | | — | | | | (3,704 | ) |
Net Realized Gain on Interest Rate Swap Contracts | | | — | | | | 363,746 | |
| | | | |
| | $ | 8,590,751 | | | $ | 360,042 | |
| | | | |
| | |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized resulting from Operations: | | | | | | | | |
Net Change in Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | | $ | (3,588,302 | ) | | $ | — | |
Net Change in Unrealized Depreciation on Currency Swap Contracts | | | — | | | | (10,267 | ) |
Net Change in Unrealized Appreciation on Interest Rate Swap Contracts | | | — | | | | 2,264,839 | |
| | | | |
| | $ | (3,588,302 | ) | | $ | 2,254,572 | |
| | | | |
| * | See note 10 in the Notes to the Financial Statements for additional information. |
At October 31, 2016, 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 | | $ | 725,212,302 | |
Gross tax appreciation of investments | | | 22,196,143 | |
Gross tax depreciation of investments | | | (21,293,571) | |
Net tax appreciation of investments | | | $902,572 | |
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 and other transactions.
See accompanying notes to the financial statements.
70
ASHMORE EMERGING MARKETS HARD CURRENCY DEBT FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Debt Securities | | | | | | | | | | | | | | | | |
| | | | |
Argentina (Cost $220,586) | | | | | | | | | | | | | | | | |
Argentina (Rep of) 7.500%, 04/22/2026 | | | | | | | 150,000 | | | $ | 163,875 | | | | 2.56 | |
Argentina (Rep of) 8.280%, 12/31/2033 | | | | | | | 22,232 | | | | 24,752 | | | | 0.39 | |
Argentina (Rep of), FRN 2.500%, 12/31/2038 | | | | | | | 57,232 | | | | 39,118 | | | | 0.61 | |
| | | | | | | | | | | 227,745 | | | | 3.56 | |
Azerbaijan (Cost $182,337) | | | | | | | | | | | | | | | | |
State Oil Co. of the Azerbaijan Republic 6.950%, 03/18/2030 | | | | | | | 200,000 | | | | 216,880 | | | | 3.39 | |
| | | | | | | | | | | 216,880 | | | | 3.39 | |
Belarus (Cost $121,543) | | | | | | | | | | | | | | | | |
Belarus (Rep of) 8.950%, 01/26/2018 | | | | | | | 130,000 | | | | 136,446 | | | | 2.13 | |
| | | | | | | | | | | 136,446 | | | | 2.13 | |
Brazil (Cost $277,545) | | | | | | | | | | | | | | | | |
Brazil (Rep of) 4.875%, 01/22/2021 | | | | | | | 50,000 | | | | 52,900 | | | | 0.83 | |
Brazil (Rep of) 8.875%, 04/15/2024 | | | | | | | 10,000 | | | | 12,775 | | | | 0.20 | |
Brazil (Rep of) 4.250%, 01/07/2025 | | | | | | | 56,000 | | | | 55,440 | | | | 0.87 | |
Brazil (Rep of) 8.250%, 01/20/2034 | | | | | | | 9,000 | | | | 11,295 | | | | 0.18 | |
Brazil (Rep of) 7.125%, 01/20/2037 | | | | | | | 32,000 | | | | 36,480 | | | | 0.57 | |
Petrobras Global Finance B.V. 8.750%, 05/23/2026 | | | | | | | 20,000 | | | | 22,530 | | | | 0.35 | |
Petrobras Global Finance B.V. 6.875%, 01/20/2040 | | | | | | | 50,000 | | | | 44,750 | | | | 0.70 | |
Petrobras Global Finance B.V. 6.850%, 06/05/2115 | | | | | | | 4,000 | | | | 3,400 | | | | 0.05 | |
QGOG Atlantic/Alaskan Rigs Ltd. 5.250%, 07/30/2018 | | | | | | | 57,560 | | | | 51,516 | | | | 0.80 | |
| | | | | | | | | | | 291,086 | | | | 4.55 | |
Chile (Cost $107,461) | | | | | | | | | | | | | | | | |
Banco del Estado de Chile 4.125%, 10/07/2020 | | | | | | | 100,000 | | | | 106,782 | | | | 1.67 | |
| | | | | | | | | | | 106,782 | | | | 1.67 | |
China (Cost $132,233) | | | | | | | | | | | | | | | | |
Kaisa Group Holdings Ltd. 6.560%, 12/31/2020(2) | | | | | | | 10,000 | | | | 9,328 | | | | 0.15 | |
Kaisa Group Holdings Ltd. 6.560%, 06/30/2021(2) | | | | | | | 10,000 | | | | 9,328 | | | | 0.14 | |
Kaisa Group Holdings Ltd. 6.560%, 12/31/2021(2) | | | | | | | 10,000 | | | | 9,334 | | | | 0.15 | |
Sinochem Overseas Capital Co. Ltd. 4.500%, 11/12/2020 | | | | | | | 100,000 | | | | 107,781 | | | | 1.68 | |
| | | | | | | | | | | 135,771 | | | | 2.12 | |
Colombia (Cost $201,124) | | | | | | | | | | | | | | | | |
Colombia (Rep of) 11.750%, 02/25/2020 | | | | | | | 55,000 | | | | 71,308 | | | | 1.11 | |
Colombia (Rep of) 8.125%, 05/21/2024 | | | | | | | 10,000 | | | | 12,935 | | | | 0.20 | |
Colombia (Rep of) 6.125%, 01/18/2041 | | | | | | | 100,000 | | | | 114,250 | | | | 1.79 | |
| | | | | | | | | | | 198,493 | | | | 3.10 | |
Costa Rica (Cost $58,521) | | | | | | | | | | | | | | | | |
Costa Rica (Rep of) 4.375%, 04/30/2025 | | | | | | | 60,000 | | | | 57,104 | | | | 0.89 | |
| | | | | | | | | | | 57,104 | | | | 0.89 | |
Croatia (Cost $129,943) | | | | | | | | | | | | | | | | |
Croatia (Rep of) 6.625%, 07/14/2020 | | | | | | | 120,000 | | | | 133,104 | | | | 2.08 | |
| | | | | | | | | | | 133,104 | | | | 2.08 | |
Dominican Republic (Cost $275,959) | | | | | | | | | | | | | | | | |
Dominican (Rep of) 7.500%, 05/06/2021 | | | | | | | 100,000 | | | | 110,020 | | | | 1.72 | |
Dominican (Rep of) 5.875%, 04/18/2024 | | | | | | | 160,000 | | | | 166,019 | | | | 2.59 | |
| | | | | | | | | | | 276,039 | | | | 4.31 | |
Ecuador (Cost $145,177) | | | | | | | | | | | | | | | | |
Ecuador (Rep of) 7.950%, 06/20/2024 | | | | | | | 200,000 | | | | 188,500 | | | | 2.94 | |
| | | | | | | | | | | 188,500 | | | | 2.94 | |
See accompanying notes to financial statements.
71
ASHMORE EMERGING MARKETS HARD CURRENCY DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Egypt (Cost $37,960) | | | | | | | | | | | | | | | | |
Egypt (Rep of) 5.750%, 04/29/2020 | | | | | | | 40,000 | | | $ | 40,795 | | | | 0.64 | |
| | | | | | | | | | | 40,795 | | | | 0.64 | |
El Salvador (Cost $32,553) | | | | | | | | | | | | | | | | |
El Salvador (Rep of) 5.875%, 01/30/2025 | | | | | | | 10,000 | | | | 9,900 | | | | 0.16 | |
El Salvador (Rep of) 8.250%, 04/10/2032 | | | | | | | 10,000 | | | | 10,899 | | | | 0.17 | |
El Salvador (Rep of) 7.650%, 06/15/2035 | | | | | | | 15,000 | | | | 15,538 | | | | 0.24 | |
| | | | | | | | | | | 36,337 | | | | 0.57 | |
Georgia (Cost $31,460) | | | | | | | | | | | | | | | | |
Georgian Railway JSC 7.750%, 07/11/2022 | | | | | | | 30,000 | | | | 33,450 | | | | 0.52 | |
| | | | | | | | | | | 33,450 | | | | 0.52 | |
Hungary (Cost $199,110) | | | | | | | | | | | | | | | | |
Hungary (Rep of) 6.250%, 01/29/2020 | | | | | | | 30,000 | | | | 33,600 | | | | 0.53 | |
Hungary (Rep of) 5.375%, 02/21/2023 | | | | | | | 52,000 | | | | 59,010 | | | | 0.92 | |
Hungary (Rep of) 5.750%, 11/22/2023 | | | | | | | 48,000 | | | | 56,004 | | | | 0.87 | |
Hungary (Rep of) 5.375%, 03/25/2024 | | | | | | | 26,000 | | | | 29,871 | | | | 0.47 | |
Hungary (Rep of) 7.625%, 03/29/2041 | | | | | | | 26,000 | | | | 39,624 | | | | 0.62 | |
| | | | | | | | | | | 218,109 | | | | 3.41 | |
Indonesia (Cost $235,275) | | | | | | | | | | | | | | | | |
Indonesia (Rep of) 6.875%, 01/17/2018 | | | | | | | 30,000 | | | | 31,854 | | | | 0.50 | |
Indonesia (Rep of) 5.875%, 03/13/2020 | | | | | | | 160,000 | | | | 177,542 | | | | 2.77 | |
Indonesia (Rep of) 7.750%, 01/17/2038 | | | | | | | 30,000 | | | | 42,192 | | | | 0.66 | |
| | | | | | | | | | | 251,588 | | | | 3.93 | |
Ivory Coast (Cost $116,925) | | | | | | | | | | | | | | | | |
Ivory Coast (Rep of), FRN 5.750%, 12/31/2032 | | | | | | | 128,700 | | | | 126,069 | | | | 1.97 | |
| | | | | | | | | | | 126,069 | | | | 1.97 | |
Jamaica (Cost $184,532) | | | | | | | | | | | | | | | | |
Digicel Group Ltd. 8.250%, 09/30/2020 | | | | | | | 200,000 | | | | 177,000 | | | | 2.76 | |
| | | | | | | | | | | 177,000 | | | | 2.76 | |
Kazakhstan (Cost $391,326) | | | | | | | | | | | | | | | | |
Kazakhstan Temir Zholy Finance B.V. 6.950%, 07/10/2042 | | | | | | | 57,000 | | | | 58,759 | | | | 0.92 | |
Kazkommertsbank JSC 6.875%, 02/13/2017 | | | EUR | | | | 50,000 | | | | 53,838 | | | | 0.84 | |
Kazkommertsbank JSC 5.500%, 12/21/2022 | | | | | | | 29,784 | | | | 21,168 | | | | 0.33 | |
KazMunayGas National Co. JSC 7.000%, 05/05/2020 | | | | | | | 170,000 | | | | 188,485 | | | | 2.94 | |
KazMunayGas National Co. JSC 4.400%, 04/30/2023 | | | | | | | 70,000 | | | | 70,735 | | | | 1.11 | |
| | | | | | | | | | | 392,985 | | | | 6.14 | |
Latvia (Cost $29,178) | | | | | | | | | | | | | | | | |
Latvia (Rep of) 2.750%, 01/12/2020 | | | | | | | 30,000 | | | | 31,112 | | | | 0.48 | |
| | | | | | | | | | | 31,112 | | | | 0.48 | |
Lebanon (Cost $151,268) | | | | | | | | | | | | | | | | |
Lebanon (Rep of) 5.150%, 11/12/2018 | | | | | | | 10,000 | | | | 9,855 | | | | 0.15 | |
Lebanon (Rep of) 5.450%, 11/28/2019 | | | | | | | 10,000 | | | | 9,852 | | | | 0.15 | |
Lebanon (Rep of) 6.375%, 03/09/2020 | | | | | | | 30,000 | | | | 30,075 | | | | 0.47 | |
Lebanon (Rep of) 8.250%, 04/12/2021 | | | | | | | 24,000 | | | | 25,680 | | | | 0.40 | |
Lebanon (Rep of) 6.100%, 10/04/2022 | | | | | | | 19,000 | | | | 18,609 | | | | 0.29 | |
Lebanon (Rep of) 6.000%, 01/27/2023 | | | | | | | 10,000 | | | | 9,689 | | | | 0.15 | |
Lebanon (Rep of) 6.200%, 02/26/2025 | | | | | | | 12,000 | | | | 11,520 | | | | 0.18 | |
Lebanon (Rep of) 6.600%, 11/27/2026 | | | | | | | 24,000 | | | | 23,324 | | | | 0.37 | |
Lebanon (Rep of) 6.750%, 11/29/2027 | | | | | | | 11,000 | | | | 10,829 | | | | 0.17 | |
| | | | | | | | | | | 149,433 | | | | 2.33 | |
Malaysia (Cost $63,773) | | | | | | | | | | | | | | | | |
Petronas Capital Ltd. 7.875%, 05/22/2022 | | | | | | | 50,000 | | | | 64,172 | | | | 1.00 | |
| | | | | | | | | | | 64,172 | | | | 1.00 | |
Mexico (Cost $267,241) | | | | | | | | | | | | | | | | |
Mexico (Rep of) 6.750%, 09/27/2034 | | | | | | | 14,000 | | | | 18,060 | | | | 0.28 | |
| | | | | | | | | | | | | | | | |
See accompanying notes to financial statements.
72
ASHMORE EMERGING MARKETS HARD CURRENCY DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Mexico - (continued) | | | | | | | | | | | | | | | | |
Mexico (Rep of) 4.750%, 03/08/2044 | | | | | | | 10,000 | | | $ | 9,975 | | | | 0.16 | |
Mexico (Rep of) 5.550%, 01/21/2045 | | | | | | | 36,000 | | | | 40,320 | | | | 0.63 | |
Mexico (Rep of) 5.750%, 10/12/2110 | | | | | | | 58,000 | | | | 59,305 | | | | 0.93 | |
Petroleos Mexicanos 6.000%, 03/05/2020 | | | | | | | 10,000 | | | | 10,840 | | | | 0.17 | |
Petroleos Mexicanos 6.875%, 08/04/2026 | | | | | | | 26,000 | | | | 29,068 | | | | 0.46 | |
Petroleos Mexicanos 6.500%, 06/02/2041 | | | | | | | 16,000 | | | | 15,552 | | | | 0.24 | |
Petroleos Mexicanos 5.625%, 01/23/2046 | | | | | | | 41,000 | | | | 35,455 | | | | 0.55 | |
Petroleos Mexicanos 6.750%, 09/21/2047 | | | | | | | 39,000 | | | | 38,659 | | | | 0.60 | |
| | | | | | | | | | | 257,234 | | | | 4.02 | |
Morocco (Cost $47,097) | | | | | | | | | | | | | | | | |
Morocco (Rep of) 4.250%, 12/11/2022 | | | | | | | 50,000 | | | | 53,230 | | | | 0.83 | |
| | | | | | | | | | | 53,230 | | | | 0.83 | |
Pakistan (Cost $101,423) | | | | | | | | | | | | | | | | |
Pakistan (Rep of) 6.875%, 06/01/2017 | | | | | | | 100,000 | | | | 101,930 | | | | 1.59 | |
| | | | | | | | | | | 101,930 | | | | 1.59 | |
Panama (Cost $91,438) | | | | | | | | | | | | | | | | |
Panama (Rep of) 8.875%, 09/30/2027 | | | | | | | 15,000 | | | | 22,125 | | | | 0.35 | |
Panama (Rep of) 9.375%, 04/01/2029 | | | | | | | 10,000 | | | | 15,212 | | | | 0.24 | |
Panama (Rep of) 6.700%, 01/26/2036 | | | | | | | 45,000 | | | | 59,794 | | | | 0.93 | |
| | | | | | | | | | | 97,131 | | | | 1.52 | |
Peru (Cost $140,327) | | | | | | | | | | | | | | | | |
Peru (Rep of) 8.750%, 11/21/2033 | | | | | | | 58,000 | | | | 91,495 | | | | 1.43 | |
Peru (Rep of) 5.625%, 11/18/2050 | | | | | | | 44,000 | | | | 55,880 | | | | 0.87 | |
| | | | | | | | | | | 147,375 | | | | 2.30 | |
Philippines (Cost $199,897) | | | | | | | | | | | | | | | | |
Philippines (Rep of) 4.000%, 01/15/2021 | | | | | | | 50,000 | | | | 54,391 | | | | 0.85 | |
Philippines (Rep of) 10.625%, 03/16/2025 | | | | | | | 15,000 | | | | 23,927 | | | | 0.37 | |
Philippines (Rep of) 9.500%, 02/02/2030 | | | | | | | 77,000 | | | | 128,712 | | | | 2.01 | |
| | | | | | | | | | | 207,030 | | | | 3.23 | |
Poland (Cost $20,130) | | | | | | | | | | | | | | | | |
Poland (Rep of) 5.000%, 03/23/2022 | | | | | | | 10,000 | | | | 11,325 | | | | 0.18 | |
Poland (Rep of) 3.000%, 03/17/2023 | | | | | | | 10,000 | | | | 10,291 | | | | 0.16 | |
| | | | | | | | | | | 21,616 | | | | 0.34 | |
Romania (Cost $128,133) | | | | | | | | | | | | | | | | |
Romania (Rep of) 6.750%, 02/07/2022 | | | | | | | 52,000 | | | | 61,750 | | | | 0.97 | |
Romania (Rep of) 4.375%, 08/22/2023 | | | | | | | 62,000 | | | | 67,344 | | | | 1.05 | |
Romania (Rep of) 6.125%, 01/22/2044 | | | | | | | 4,000 | | | | 5,194 | | | | 0.08 | |
| | | | | | | | | | | 134,288 | | | | 2.10 | |
Russian Federation (Cost $204,142) | | | | | | | | | | | | | | | | |
Vnesheconombank Via VEB Finance PLC 5.450%, 11/22/2017 | | | | | | | 100,000 | | | | 102,512 | | | | 1.60 | |
Vnesheconombank Via VEB Finance PLC 6.902%, 07/09/2020 | | | | | | | 100,000 | | | | 107,750 | | | | 1.68 | |
| | | | | | | | | | | 210,262 | | | | 3.28 | |
Senegal (Cost $31,925) | | | | | | | | | | | | | | | | |
Senegal (Rep of) 8.750%, 05/13/2021 | | | | | | | 30,000 | | | | 33,871 | | | | 0.53 | |
| | | | | | | | | | | 33,871 | | | | 0.53 | |
Serbia (Cost $51,971) | | | | | | | | | | | | | | | | |
Serbia (Rep of) 7.250%, 09/28/2021 | | | | | | | 50,000 | | | | 57,425 | | | | 0.90 | |
| | | | | | | | | | | 57,425 | | | | 0.90 | |
South Africa (Cost $83,338) | | | | | | | | | | | | | | | | |
South Africa (Rep of) 5.500%, 03/09/2020 | | | | | | | 80,000 | | | | 86,855 | | | | 1.36 | |
| | | | | | | | | | | 86,855 | | | | 1.36 | |
See accompanying notes to financial statements.
73
ASHMORE EMERGING MARKETS HARD CURRENCY DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Sri Lanka (Cost $40,096) | | | | | | | | | | | | | | | | |
Bank of Ceylon 6.875%, 05/03/2017 | | | | | | | 40,000 | | | $ | 40,599 | | | | 0.63 | |
| | | | | | | | | | | 40,599 | | | | 0.63 | |
Turkey (Cost $173,007) | | | | | | | | | | | | | | | | |
Turkey (Rep of) 6.750%, 04/03/2018 | | | | | | | 50,000 | | | | 52,688 | | | | 0.82 | |
Turkey (Rep of) 5.625%, 03/30/2021 | | | | | | | 40,000 | | | | 42,243 | | | | 0.66 | |
Turkey (Rep of) 6.750%, 05/30/2040 | | | | | | | 30,000 | | | | 33,840 | | | | 0.53 | |
Turkey (Rep of) 6.000%, 01/14/2041 | | | | | | | 40,000 | | | | 41,276 | | | | 0.65 | |
| | | | | | | | | | | 170,047 | | | | 2.66 | |
Ukraine (Cost $133,711) | | | | | | | | | | | | | | | | |
Ukraine (Rep of) 7.750%, 09/01/2027 | | | | | | | 140,000 | | | | 133,014 | | | | 2.08 | |
| | | | | | | | | | | 133,014 | | | | 2.08 | |
Uruguay (Cost $100,259) | | | | | | | | | | | | | | | | |
Uruguay (Rep of) 4.500%, 08/14/2024 | | | | | | | 32,503 | | | | 35,558 | | | | 0.56 | |
Uruguay (Rep of) 7.875%, 01/15/2033 | | | | | | | 17,000 | | | | 23,605 | | | | 0.37 | |
Uruguay (Rep of) 7.625%, 03/21/2036 | | | | | | | 16,000 | | | | 22,056 | | | | 0.34 | |
Uruguay (Rep of) 4.125%, 11/20/2045 | | | | | | | 10,774 | | | | 9,842 | | | | 0.15 | |
Uruguay (Rep of) 5.100%, 06/18/2050 | | | | | | | 9,000 | | | | 8,966 | | | | 0.14 | |
| | | | | | | | | | | 100,027 | | | | 1.56 | |
Venezuela (Cost $802,049) | | | | | | | | | | | | | | | | |
Petroleos de Venezuela S.A. 5.250%, 04/12/2017 | | | | | | | 160,100 | | | | 128,880 | | | | 2.01 | |
Petroleos de Venezuela S.A. 8.500%, 11/02/2017 | | | | | | | 15,300 | | | | 11,131 | | | | 0.17 | |
Petroleos de Venezuela S.A. 8.500%, 10/27/2020 | | | | | | | 373,000 | | | | 270,425 | | | | 4.22 | |
Petroleos de Venezuela S.A. 9.000%, 11/17/2021 | | | | | | | 29,046 | | | | 14,378 | | | | 0.23 | |
Petroleos de Venezuela S.A. 12.750%, 02/17/2022 | | | | | | | 15,000 | | | | 8,887 | | | | 0.14 | |
Petroleos de Venezuela S.A. 5.375%, 04/12/2027 | | | | | | | 12,000 | | | | 4,390 | | | | 0.07 | |
Petroleos de Venezuela S.A. 9.750%, 05/17/2035 | | | | | | | 38,000 | | | | 16,919 | | | | 0.26 | |
Venezuela (Rep of) 7.750%, 10/13/2019 | | | | | | | 24,000 | | | | 12,180 | | | | 0.19 | |
Venezuela (Rep of) 6.000%, 12/09/2020 | | | | | | | 12,000 | | | | 5,328 | | | | 0.08 | |
Venezuela (Rep of) 12.750%, 08/23/2022 | | | | | | | 57,000 | | | | 32,975 | | | | 0.52 | |
Venezuela (Rep of) 9.000%, 05/07/2023 | | | | | | | 21,000 | | | | 9,639 | | | | 0.15 | |
Venezuela (Rep of) 8.250%, 10/13/2024 | | | | | | | 50,000 | | | | 22,050 | | | | 0.34 | |
Venezuela (Rep of) 7.650%, 04/21/2025 | | | | | | | 10,000 | | | | 4,320 | | | | 0.07 | |
Venezuela (Rep of) 11.750%, 10/21/2026 | | | | | | | 192,000 | | | | 106,080 | | | | 1.66 | |
Venezuela (Rep of) 9.250%, 09/15/2027 | | | | | | | 22,000 | | | | 11,022 | | | | 0.17 | |
Venezuela (Rep of) 9.250%, 05/07/2028 | | | | | | | 27,000 | | | | 12,515 | | | | 0.20 | |
Venezuela (Rep of) 11.950%, 08/05/2031 | | | | | | | 205,900 | | | | 113,245 | | | | 1.77 | |
| | | | | | | | | | | 784,364 | | | | 12.25 | |
Vietnam (Cost $52,392) | | | | | | | | | | | | | | | | |
Vietnam (Rep of) 6.750%, 01/29/2020 | | | | | | | 50,000 | | | | 55,693 | | | | 0.87 | |
| | | | | | | | | | | 55,693 | | | | 0.87 | |
Total Debt Securities (Cost $5,994,365) | | | | | | | | | | | 6,180,991 | | | | 96.54 | |
| | | | |
Total Investments (Total Cost $5,994,365) | | | | | | | | | | | 6,180,991 | | | | 96.54 | |
| | | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for further detail) | | | | | | | | | | | 221,375 | | | | 3.46 | |
| | | | |
Net Assets | | | | | | | | | | $ | 6,402,366 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | Security is a payment in-kind bond, and unless otherwise noted in the description of the security, pays its entire coupon on an in-kind basis. |
See accompanying notes to financial statements.
74
ASHMORE EMERGING MARKETS HARD CURRENCY DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
Percentages shown are based on net assets.
At October 31, 2016, the Ashmore Emerging Markets Hard Currency 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) |
11/25/2016 | | Deutsche Bank | | United States Dollar | | | 55,407 | | | Euro | | | 50,268 | | | $170 |
| | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | $170 |
| | | | | | | | | | | | | | | | |
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 Hard Currency Debt Fund’s investments and other financial instruments, which are carried at fair value, as of October 31, 2016:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Corporate Bonds | | | $— | | | | $1,861,539 | | | | $— | | | | $1,861,539 | |
Government Agencies | | | — | | | | 258,699 | | | | — | | | | 258,699 | |
Government Bonds | | | — | | | | 4,060,753 | | | | — | | | | 4,060,753 | |
Total Investments | | | $— | | | | $6,180,991 | | | | $— | | | | $6,180,991 | |
| | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | $— | | | | $ 170 | | | | $— | | | | $ 170 | |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2016, there were no transfers between Level 1, Level 2 and Level 3 based on levels assigned to the securities on October 31, 2015.
See accompanying notes to financial statements.
75
ASHMORE EMERGING MARKETS HARD CURRENCY DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
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, 2016:
| | |
| | | Derivatives Not Accounted
for as Hedging Instruments |
| | | Foreign Exchange |
Assets: | | |
Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | $170 |
| | |
The Effect of Financial Derivative Instruments on the Statements of Operations for the Year Ended October 31, 2016:
| | | | |
| | | 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 | | | $ 1,589 | |
| | | | |
| |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized resulting from Operations: | | | | |
Net Change in Unrealized Appreciation on Forward Foreign | | | | |
Currency Exchange Contracts | | | $ 223 | |
| | | | |
* See note 10 in the Notes to the Financial Statements for additional information.
At October 31, 2016, 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 | | | $6,065,122 | |
Gross tax appreciation of investments | | | 246,064 | |
Gross tax depreciation of investments | | | (130,195) | |
Net tax appreciation of investments | | | $115,869 | |
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.
76
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2016
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Debt Securities | | | | | | | | | | | | | | |
| | | | |
Argentina (Cost $689,003) | | | | | | | | | | | | | | |
Letras del Banco Central de la Republica Argentina 25.436%, 12/14/2016(2) | | ARS | | | 1,035,856 | | | $ | 66,284 | | | | 0.08 | |
Letras del Banco Central de la Republica Argentina 24.384%, 12/28/2016(2) | | ARS | | | 2,478,699 | | | | 157,213 | | | | 0.19 | |
Letras del Banco Central de la Republica Argentina 23.586%, 01/04/2017(2) | | ARS | | | 4,513,835 | | | | 284,954 | | | | 0.35 | |
Letras del Banco Central de la Republica Argentina 25.027%, 01/11/2017(2) | | ARS | | | 2,358,890 | | | | 148,221 | | | | 0.18 | |
| | | | | | | | | 656,672 | | | | 0.80 | |
Brazil (Cost $7,770,474) | | | | | | | | | | | | | | |
Brazil Letras do Tesouro Nacional 10.555%, 01/01/2019(2) | | BRL | | | 18,132,000 | | | | 4,493,220 | | | | 5.50 | |
Brazil Letras do Tesouro Nacional 9.473%, 01/01/2020(2) | | BRL | | | 1,550,000 | | | | 345,820 | | | | 0.42 | |
Brazil Notas do Tesouro Nacional Serie F 10.000%, 01/01/2021 | | BRL | | | 6,566,000 | | | | 1,973,750 | | | | 2.42 | |
Brazil Notas do Tesouro Nacional Serie F 10.000%, 01/01/2023 | | BRL | | | 3,491,000 | | | | 1,032,852 | | | | 1.26 | |
Brazil Notas do Tesouro Nacional Serie F 10.000%, 01/01/2025 | | BRL | | | 1,481,000 | | | | 433,188 | | | | 0.53 | |
Brazil Notas do Tesouro Nacional Serie F 10.000%, 01/01/2027 | | BRL | | | 2,232,000 | | | | 643,584 | | | | 0.79 | |
| | | | | | | | | 8,922,414 | | | | 10.92 | |
Chile (Cost $44,210) | | | | | | | | | | | | | | |
Bonos de la Tesoreria de la Republica en pesos 6.000%, 01/01/2020 | | CLP | | | 20,000,000 | | | | 32,662 | | | | 0.04 | |
| | | | | | | | | 32,662 | | | | 0.04 | |
Colombia (Cost $4,997,082) | | | | | | | | | | | | | | |
Colombian TES 5.000%, 11/21/2018 | | COP | | | 3,596,700,000 | | | | 1,165,466 | | | | 1.43 | |
Colombian TES 7.000%, 09/11/2019 | | COP | | | 800,400,000 | | | | 269,099 | | | | 0.33 | |
Colombian TES 11.000%, 07/24/2020 | | COP | | | 1,411,700,000 | | | | 534,312 | | | | 0.65 | |
Colombian TES 7.000%, 05/04/2022 | | COP | | | 9,438,000,000 | | | | 3,153,173 | | | | 3.86 | |
| | | | | | | | | 5,122,050 | | | | 6.27 | |
Hungary (Cost $1,988,087) | | | | | | | | | | | | | | |
Hungary (Rep of) 3.500%, 06/24/2020 | | HUF | | | 18,350,000 | | | | 69,828 | | | | 0.09 | |
Hungary (Rep of) 7.500%, 11/12/2020 | | HUF | | | 27,590,000 | | | | 120,798 | | | | 0.15 | |
Hungary (Rep of) 7.000%, 06/24/2022 | | HUF | | | 106,100,000 | | | | 477,393 | | | | 0.58 | |
Hungary (Rep of) 6.000%, 11/24/2023 | | HUF | | | 117,480,000 | | | | 515,663 | | | | 0.63 | |
Hungary (Rep of) 3.000%, 06/26/2024 | | HUF | | | 36,500,000 | | | | 132,842 | | | | 0.16 | |
Hungary (Rep of) 5.500%, 06/24/2025 | | HUF | | | 155,960,000 | | | | 667,042 | | | | 0.82 | |
| | | | | | | | | 1,983,566 | | | | 2.43 | |
India (Cost $2,498,296) | | | | | | | | | | | | | | |
India (Rep of) 7.590%, 01/11/2026 | | INR | | | 160,000,000 | | | | 2,509,171 | | | | 3.07 | |
| | | | | | | | | 2,509,171 | | | | 3.07 | |
Indonesia (Cost $5,894,053) | | | | | | | | | | | | | | |
Indonesia (Rep of) 11.000%, 11/15/2020 | | IDR | | | 1,039,000,000 | | | | 90,957 | | | | 0.11 | |
Indonesia (Rep of) 8.250%, 07/15/2021 | | IDR | | | 11,020,000,000 | | | | 888,465 | | | | 1.09 | |
Indonesia (Rep of) 7.000%, 05/15/2022 | | IDR | | | 1,041,000,000 | | | | 79,942 | | | | 0.10 | |
Indonesia (Rep of) 5.625%, 05/15/2023 | | IDR | | | 521,000,000 | | | | 36,910 | | | | 0.05 | |
Indonesia (Rep of) 8.375%, 03/15/2024 | | IDR | | | 3,479,000,000 | | | | 283,081 | | | | 0.35 | |
Indonesia (Rep of) 8.375%, 09/15/2026 | | IDR | | | 15,024,000,000 | | | | 1,239,587 | | | | 1.52 | |
See accompanying notes to the financial statements.
77
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Indonesia - (continued) | | | | | | | | | | | | | | | | |
Indonesia (Rep of) 7.000%, 05/15/2027 | | | IDR | | | | 4,801,000,000 | | | $ | 360,992 | | | | 0.44 | |
Indonesia (Rep of) 9.000%, 03/15/2029 | | | IDR | | | | 15,353,000,000 | | | | 1,323,637 | | | | 1.62 | |
Indonesia (Rep of) 8.750%, 05/15/2031 | | | IDR | | | | 6,635,000,000 | | | | 558,086 | | | | 0.68 | |
Indonesia (Rep of) 8.250%, 06/15/2032 | | | IDR | | | | 1,145,000,000 | | | | 92,960 | | | | 0.11 | |
Indonesia (Rep of) 6.625%, 05/15/2033 | | | IDR | | | | 4,037,000,000 | | | | 280,454 | | | | 0.34 | |
Indonesia (Rep of) 8.375%, 03/15/2034 | | | IDR | | | | 5,575,000,000 | | | | 449,006 | | | | 0.55 | |
Indonesia (Rep of) 8.250%, 05/15/2036 | | | IDR | | | | 6,135,000,000 | | | | 491,228 | | | | 0.60 | |
| | | | | | | | | | | 6,175,305 | | | | 7.56 | |
Malaysia (Cost $3,436,953) | | | | | | | | | | | | | | | | |
Malaysia (Rep of) 3.654%, 10/31/2019 | | | MYR | | | | 319,000 | | | | 77,045 | | | | 0.09 | |
Malaysia (Rep of) 3.620%, 11/30/2021 | | | MYR | | | | 1,960,000 | | | | 473,932 | | | | 0.58 | |
Malaysia (Rep of) 3.418%, 08/15/2022 | | | MYR | | | | 1,704,000 | | | | 404,010 | | | | 0.49 | |
Malaysia (Rep of) 3.795%, 09/30/2022 | | | MYR | | | | 372,000 | | | | 89,975 | | | | 0.11 | |
Malaysia (Rep of) 3.480%, 03/15/2023 | | | MYR | | | | 1,966,000 | | | | 468,160 | | | | 0.57 | |
Malaysia (Rep of) 3.800%, 08/17/2023 | | | MYR | | | | 1,000 | | | | 242 | | | | — | |
Malaysia (Rep of) 4.181%, 07/15/2024 | | | MYR | | | | 1,477,000 | | | | 363,015 | | | | 0.44 | |
Malaysia (Rep of) 3.955%, 09/15/2025 | | | MYR | | | | 390,000 | | | | 94,341 | | | | 0.12 | |
Malaysia (Rep of) 4.392%, 04/15/2026 | | | MYR | | | | 365,000 | | | | 91,027 | | | | 0.11 | |
Malaysia (Rep of) 3.900%, 11/30/2026 | | | MYR | | | | 876,000 | | | | 213,717 | | | | 0.26 | |
Malaysia (Rep of) 4.498%, 04/15/2030 | | | MYR | | | | 498,000 | | | | 122,959 | | | | 0.15 | |
Malaysia (Rep of) 4.232%, 06/30/2031 | | | MYR | | | | 390,000 | | | | 95,102 | | | | 0.12 | |
Malaysia (Rep of) 3.844%, 04/15/2033 | | | MYR | | | | 164,000 | | | | 37,109 | | | | 0.05 | |
Malaysia (Rep of) 4.254%, 05/31/2035 | | | MYR | | | | 854,000 | | | | 201,866 | | | | 0.25 | |
Malaysia Government Investment Issue 4.194%, 07/15/2022 | | | MYR | | | | 633,000 | | | | 154,995 | | | | 0.19 | |
Malaysia Government Investment Issue 4.390%, 07/07/2023 | | | MYR | | | | 912,000 | | | | 227,376 | | | | 0.28 | |
Malaysia Government Investment Issue 4.070%, 09/30/2026 | | | MYR | | | | 973,000 | | | | 238,128 | | | | 0.29 | |
| | | | | | | | | | | 3,352,999 | | | | 4.10 | |
Mexico (Cost $3,465,219) | | | | | | | | | | | | | | | | |
Mexican Bonos 7.750%, 05/29/2031 | | | MXN | | | | 3,410,000 | | | | 199,246 | | | | 0.24 | |
Mexican Udibonos 4.000%, 06/13/2019(3) | | | MXN | | | | 10,370,000 | | | | 3,142,792 | | | | 3.85 | |
Petroleos Mexicanos 7.190%, 09/12/2024 | | | MXN | | | | 2,540,000 | | | | 122,870 | | | | 0.15 | |
| | | | | | | | | | | 3,464,908 | | | | 4.24 | |
Peru (Cost $1,502,457) | | | | | | | | | | | | | | | | |
Peru (Rep of) 5.700%, 08/12/2024 | | | PEN | | | | 880,000 | | | | 268,039 | | | | 0.33 | |
Peru (Rep of) 8.200%, 08/12/2026 | | | PEN | | | | 986,000 | | | | 347,210 | | | | 0.42 | |
Peru (Rep of) 6.350%, 08/12/2028 | | | PEN | | | | 673,000 | | | | 205,919 | | | | 0.25 | |
Peru (Rep of) 6.950%, 08/12/2031 | | | PEN | | | | 1,869,000 | | | | 603,997 | | | | 0.74 | |
| | | | | | | | | | | 1,425,165 | | | | 1.74 | |
Philippines (Cost $769,868) | | | | | | | | | | | | | | | | |
Philippines (Rep of) 4.950%, 01/15/2021 | | | PHP | | | | 10,000,000 | | | | 212,195 | | | | 0.26 | |
Philippines (Rep of) 3.900%, 11/26/2022 | | | PHP | | | | 10,000,000 | | | | 203,934 | | | | 0.25 | |
Philippines (Rep of) 6.250%, 01/14/2036 | | | PHP | | | | 10,000,000 | | | | 238,009 | | | | 0.29 | |
| | | | | | | | | | | 654,138 | | | | 0.80 | |
Poland (Cost $3,021,845) | | | | | | | | | | | | | | | | |
Poland (Rep of) 5.750%, 09/23/2022 | | | PLN | | | | 3,456,000 | | | | 1,023,961 | | | | 1.25 | |
Poland (Rep of) 2.750%, 08/25/2023(3) | | | PLN | | | | 324,000 | | | | 104,751 | | | | 0.13 | |
Poland (Rep of) 4.000%, 10/25/2023 | | | PLN | | | | 792,000 | | | | 215,435 | | | | 0.26 | |
Poland (Rep of) 3.250%, 07/25/2025 | | | PLN | | | | 4,652,000 | | | | 1,205,554 | | | | 1.48 | |
Poland (Rep of) 2.500%, 07/25/2026 | | | PLN | | | | 560,000 | | | | 135,459 | | | | 0.17 | |
See accompanying notes to the financial statements.
78
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Poland - (continued) | | | | | | | | | | | | | | | | |
Poland (Rep of) 5.750%, 04/25/2029 | | | PLN | | | | 230,000 | | | $ | 72,631 | | | | 0.09 | |
| | | | | | | | | | | 2,757,791 | | | | 3.38 | |
Russian Federation (Cost $1,898,280) | | | | | | | | | | | | | | | | |
Russian Federal Bond - OFZ 6.400%, 05/27/2020 | | | RUB | | | | 9,830,000 | | | | 144,424 | | | | 0.18 | |
Russian Federal Bond - OFZ 7.600%, 04/14/2021 | | | RUB | | | | 27,849,000 | | | | 423,217 | | | | 0.52 | |
Russian Federal Bond - OFZ 7.000%, 01/25/2023 | | | RUB | | | | 12,330,000 | | | | 180,148 | | | | 0.22 | |
Russian Federal Bond - OFZ 7.000%, 08/16/2023 | | | RUB | | | | 24,998,000 | | | | 364,136 | | | | 0.45 | |
Russian Federal Bond - OFZ 8.150%, 02/03/2027 | | | RUB | | | | 11,729,000 | | | | 181,840 | | | | 0.22 | |
Russian Federal Bond - OFZ 7.050%, 01/19/2028 | | | RUB | | | | 12,776,000 | | | | 181,863 | | | | 0.22 | |
| | | | | | | | | | | 1,475,628 | | | | 1.81 | |
South Africa (Cost $10,059,754) | | | | | | | | | | | | | | | | |
South Africa (Rep of) 8.000%, 12/21/2018 | | | ZAR | | | | 8,249,500 | | | | 614,123 | | | | 0.75 | |
South Africa (Rep of) 7.750%, 02/28/2023 | | | ZAR | | | | 18,339,810 | | | | 1,317,868 | | | | 1.61 | |
South Africa (Rep of) 10.500%, 12/21/2026 | | | ZAR | | | | 15,267,900 | | | | 1,254,077 | | | | 1.53 | |
South Africa (Rep of) 8.000%, 01/31/2030 | | | ZAR | | | | 9,160,000 | | | | 621,593 | | | | 0.76 | |
South Africa (Rep of) 7.000%, 02/28/2031 | | | ZAR | | | | 29,073,860 | | | | 1,793,798 | | | | 2.20 | |
South Africa (Rep of) 8.250%, 03/31/2032 | | | ZAR | | | | 8,120,000 | | | | 554,259 | | | | 0.68 | |
South Africa (Rep of) 6.250%, 03/31/2036 | | | ZAR | | | | 3,950,000 | | | | 212,920 | | | | 0.26 | |
South Africa (Rep of) 8.500%, 01/31/2037 | | | ZAR | | | | 12,700,000 | | | | 868,597 | | | | 1.06 | |
South Africa (Rep of) 6.500%, 02/28/2041 | | | ZAR | | | | 4,600,000 | | | | 247,573 | | | | 0.30 | |
South Africa (Rep of) 8.750%, 01/31/2044 | | | ZAR | | | | 9,020,000 | | | | 626,006 | | | | 0.77 | |
South Africa (Rep of) 8.750%, 02/28/2048 | | | ZAR | | | | 11,995,900 | | | | 830,227 | | | | 1.02 | |
| | | | | | | | | | | 8,941,041 | | | | 10.94 | |
Thailand (Cost $2,746,062) | | | | | | | | | | | | | | | | |
Thailand (Rep of) 3.625%, 06/16/2023 | | | THB | | | | 17,292,000 | | | | 544,142 | | | | 0.67 | |
Thailand (Rep of) 3.850%, 12/12/2025 | | | THB | | | | 4,647,000 | | | | 151,191 | | | | 0.18 | |
Thailand (Rep of) 2.125%, 12/17/2026 | | | THB | | | | 10,674,000 | | | | 303,651 | | | | 0.37 | |
Thailand (Rep of) 1.250%, 03/12/2028(3) | | | THB | | | | 10,000,000 | | | | 272,890 | | | | 0.33 | |
Thailand (Rep of) 3.400%, 06/17/2036 | | | THB | | | | 40,098,000 | | | | 1,279,753 | | | | 1.57 | |
Thailand (Rep of) 4.675%, 06/29/2044 | | | THB | | | | 3,980,000 | | | | 154,300 | | | | 0.19 | |
| | | | | | | | | | | 2,705,927 | | | | 3.31 | |
Turkey (Cost $8,264,198) | | | | | | | | | | | | | | | | |
Turkey (Rep of) 8.300%, 06/20/2018 | | | TRY | | | | 1,932,000 | | | | 618,140 | | | | 0.76 | |
Turkey (Rep of) 8.500%, 07/10/2019 | | | TRY | | | | 2,731,510 | | | | 867,763 | | | | 1.06 | |
Turkey (Rep of) 9.400%, 07/08/2020 | | | TRY | | | | 3,198,340 | | | | 1,028,988 | | | | 1.26 | |
Turkey (Rep of) 10.700%, 02/17/2021 | | | TRY | | | | 1,093,000 | | | | 366,655 | | | | 0.45 | |
Turkey (Rep of) 9.500%, 01/12/2022 | | | TRY | | | | 1,187,000 | | | | 380,546 | | | | 0.46 | |
Turkey (Rep of) 3.000%, 02/23/2022(3) | | | TRY | | | | 1,689,810 | | | | 789,838 | | | | 0.97 | |
Turkey (Rep of) 8.500%, 09/14/2022 | | | TRY | | | | 1,045,000 | | | | 319,152 | | | | 0.39 | |
Turkey (Rep of) 7.100%, 03/08/2023 | | | TRY | | | | 3,014,700 | | | | 852,992 | | | | 1.04 | |
Turkey (Rep of) 8.800%, 09/27/2023 | | | TRY | | | | 2,443,810 | | | | 751,091 | | | | 0.92 | |
Turkey (Rep of) 10.600%, 02/11/2026 | | | TRY | | | | 1,780,000 | | | | 602,010 | | | | 0.74 | |
| | | | | | | | | | | 6,577,175 | | | | 8.05 | |
Total Debt Securities (Cost $59,045,841) | | | | | | | | | | | 56,756,612 | | | | 69.46 | |
| | | | |
Total Investments in Securities (Cost $59,045,841) | | | | | | | | | | $ | 56,756,612 | | | | 69.46 | |
See accompanying notes to the financial statements.
79
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Fully Funded Total Return Swaps | | | | | | | | | | | | | | | | |
| | | | |
Indonesia (Cost $2,896,679) | | | | | | | | | | | | | | | | |
Indonesia (Rep of), Issued by ANZ Banking Corp., 7.875%, 04/15/2019 | | | IDR | | | | 1,456,000,000 | | | $ | 114,561 | | | | 0.14 | |
Indonesia (Rep of), Issued by ANZ Banking Corp., 8.375%, 03/15/2024 | | | IDR | | | | 10,500,000,000 | | | | 854,368 | | | | 1.05 | |
Indonesia (Rep of), Issued by ANZ Banking Corp., 7.000%, 05/15/2027 | | | IDR | | | | 941,000,000 | | | | 70,755 | | | | 0.09 | |
Indonesia (Rep of), Issued by ANZ Banking Corp., 10.500%, 08/15/2030 | | | IDR | | | | 600,000,000 | | | | 57,343 | | | | 0.07 | |
Indonesia (Rep of), Issued by ANZ Banking Corp., 8.375%, 03/15/2034 | | | IDR | | | | 4,710,000,000 | | | | 379,340 | | | | 0.46 | |
Indonesia (Rep of), Issued by HSBC Bank, 10.500%, 08/15/2030 | | | IDR | | | | 1,949,000,000 | | | | 186,270 | | | | 0.23 | |
Indonesia (Rep of), Issued by HSBC Bank, 8.250%, 06/15/2032 | | | IDR | | | | 30,000,000 | | | | 2,436 | | | | — | |
Indonesia (Rep of), Issued by Standard Chartered, 8.375%, 03/15/2024 | | | IDR | | | | 2,600,000,000 | | | | 211,558 | | | | 0.26 | |
Indonesia (Rep of), Issued by Standard Chartered, 7.000%, 05/15/2027 | | | IDR | | | | 6,009,000,000 | | | | 451,823 | | | | 0.55 | |
Indonesia (Rep of), Issued by Standard Chartered, 10.500%, 08/15/2030 | | | IDR | | | | 1,064,000,000 | | | | 101,688 | | | | 0.12 | |
Indonesia (Rep of), Issued by Standard Chartered, 8.375%, 03/15/2034 | | | IDR | | | | 1,166,000,000 | | | | 93,909 | | | | 0.11 | |
Indonesia (Rep of), Issued by Standard Chartered, 8.250%, 05/15/2036 | | | IDR | | | | 2,022,000,000 | | | | 161,901 | | | | 0.20 | |
| | | | | | | | | | | 2,685,952 | | | | 3.28 | |
Total Fully Funded Total Return Swaps (Cost $2,896,679) | | | | | | | | | | | 2,685,952 | | | | 3.28 | |
| | | | |
Total Investments (Total Cost $61,942,520) | | | | | | | | | | | 59,442,564 | | | | 72.74 | |
| | | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for further detail) | | | | | | | | | | | 22,271,348 | | | | 27.26 | |
| | | | |
Net Assets | | | | | | | | | | $ | 81,713,912 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | Zero coupon bond - interest rate reflects effective yield on the date of purchase. |
| (3) | Inflation-indexed bonds are shown at original par and stated coupon rate. |
Percentages shown are based on net assets.
See accompanying notes to the financial statements.
80
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
At October 31, 2016, the Ashmore Emerging Markets Local Currency Bond 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) | |
11/03/2016 | | Goldman Sachs | | Brazilian Real | | | 762,700 | | | United States Dollar | | | 234,000 | | | | $ 4,718 | |
11/03/2016 | | HSBC Bank | | Brazilian Real | | | 759,203 | | | United States Dollar | | | 243,140 | | | | (5,515 | ) |
11/03/2016 | | Merrill Lynch | | Brazilian Real | | | 1,553,963 | | | United States Dollar | | | 475,000 | | | | 11,377 | |
11/03/2016 | | Citibank | | United States Dollar | | | 970,430 | | | Brazilian Real | | | 3,075,865 | | | | 7,710 | |
11/10/2016 | | BNP Paribas | | Argentine Peso | | | 625,132 | | | United States Dollar | | | 40,042 | | | | 947 | |
11/10/2016 | | BNP Paribas | | United States Dollar | | | 232,655 | | | Argentine Peso | | | 3,567,761 | | | | (1,278 | ) |
11/10/2016 | | BNP Paribas | | United States Dollar | | | 195,885 | | | Argentine Peso | | | 3,070,500 | | | | (5,443 | ) |
11/10/2016 | | JP Morgan | | United States Dollar | | | 228,596 | | | Argentine Peso | | | 3,567,761 | | | | (5,337 | ) |
11/29/2016 | | JP Morgan | | Romanian Leu | | | 3,301,472 | | | United States Dollar | | | 837,746 | | | | (33,102 | ) |
11/30/2016 | | ANZ | | Indian Rupee | | | 30,602,759 | | | United States Dollar | | | 452,436 | | | | 4,424 | |
11/30/2016 | | Barclays | | Indian Rupee | | | 23,515,627 | | | United States Dollar | | | 347,299 | | | | 3,759 | |
11/30/2016 | | BNP Paribas | | Indian Rupee | | | 15,910,000 | | | United States Dollar | | | 234,955 | | | | 2,560 | |
11/30/2016 | | Deutsche Bank | | Indian Rupee | | | 8,344,122 | | | United States Dollar | | | 123,635 | | | | 932 | |
11/30/2016 | | HSBC Bank | | Indian Rupee | | | 15,690,000 | | | United States Dollar | | | 231,792 | | | | 2,440 | |
11/30/2016 | | UBS | | Indian Rupee | | | 36,165,000 | | | United States Dollar | | | 535,361 | | | | 4,536 | |
11/30/2016 | | BNP Paribas | | Indonesian Rupiah | | | 2,425,333,000 | | | United States Dollar | | | 183,974 | | | | 1,307 | |
11/30/2016 | | BNP Paribas | | Malaysian Ringgit | | | 118,031 | | | United States Dollar | | | 28,031 | | | | 55 | |
11/30/2016 | | HSBC Bank | | Malaysian Ringgit | | | 88,697 | | | United States Dollar | | | 21,118 | | | | (13 | ) |
11/30/2016 | | JP Morgan | | Malaysian Ringgit | | | 140,309 | | | United States Dollar | | | 33,209 | | | | 178 | |
11/30/2016 | | JP Morgan | | Malaysian Ringgit | | | 118,437 | | | United States Dollar | | | 28,156 | | | | 27 | |
11/30/2016 | | Merrill Lynch | | Malaysian Ringgit | | | 147,555 | | | United States Dollar | | | 35,191 | | | | (80 | ) |
11/30/2016 | | Morgan Stanley | | Malaysian Ringgit | | | 3,658,600 | | | United States Dollar | | | 888,549 | | | | (17,972 | ) |
11/30/2016 | | UBS | | Malaysian Ringgit | | | 3,648,439 | | | United States Dollar | | | 886,210 | | | | (18,051 | ) |
11/30/2016 | | HSBC Bank | | Polish Zloty | | | 6,524,202 | | | United States Dollar | | | 1,698,292 | | | | (36,592 | ) |
11/30/2016 | | Barclays | | Russian Ruble | | | 13,067,606 | | | United States Dollar | | | 197,180 | | | | 7,369 | |
11/30/2016 | | Credit Suisse | | Russian Ruble | | | 19,455,060 | | | United States Dollar | | | 300,000 | | | | 4,532 | |
11/30/2016 | | Credit Suisse | | Russian Ruble | | | 18,793,903 | | | United States Dollar | | | 289,810 | | | | 4,373 | |
11/30/2016 | | JP Morgan | | Russian Ruble | | | 18,916,640 | | | United States Dollar | | | 292,280 | | | | 3,825 | |
11/30/2016 | | Morgan Stanley | | Russian Ruble | | | 50,524,990 | | | United States Dollar | | | 804,474 | | | | (13,600 | ) |
11/30/2016 | | Deutsche Bank | | South African Rand | | | 1,883,954 | | | United States Dollar | | | 133,000 | | | | 5,892 | |
11/30/2016 | | BNP Paribas | | Thai Baht | | | 122,619,547 | | | United States Dollar | | | 3,480,679 | | | | 20,610 | |
11/30/2016 | | HSBC Bank | | Turkish Lira | | | 661,419 | | | United States Dollar | | | 212,000 | | | | 402 | |
11/30/2016 | | HSBC Bank | | Turkish Lira | | | 550,075 | | | United States Dollar | | | 182,679 | | | | (6,034 | ) |
11/30/2016 | | Deutsche Bank | | United States Dollar | | | 595,744 | | | Indian Rupee | | | 39,970,729 | | | | (968 | ) |
11/30/2016 | | ANZ | | United States Dollar | | | 524,298 | | | Indonesian Rupiah | | | 7,002,000,000 | | | | (10,614 | ) |
11/30/2016 | | HSBC Bank | | United States Dollar | | | 170,942 | | | Indonesian Rupiah | | | 2,270,960,000 | | | | (2,546 | ) |
11/30/2016 | | Deutsche Bank | | United States Dollar | | | 105,000 | | | Thai Baht | | | 3,676,575 | | | | 19 | |
11/30/2016 | | BNP Paribas | | United States Dollar | | | 341,055 | | | Turkish Lira | | | 1,058,770 | | | | 1,051 | |
11/30/2016 | | Deutsche Bank | | United States Dollar | | | 602,859 | | | Turkish Lira | | | 1,805,721 | | | | 22,987 | |
12/02/2016 | | Deutsche Bank | | Brazilian Real | | | 562,450 | | | United States Dollar | | | 175,000 | | | | (541 | ) |
12/02/2016 | | Goldman Sachs | | United States Dollar | | | 260,658 | | | Brazilian Real | | | 823,497 | | | | 5,228 | |
12/02/2016 | | HSBC Bank | | United States Dollar | | | 259,671 | | | Brazilian Real | | | 817,037 | | | | 6,245 | |
12/02/2016 | | HSBC Bank | | United States Dollar | | | 240,998 | | | Brazilian Real | | | 759,203 | | | | 5,510 | |
12/09/2016 | | HSBC Bank | | Polish Zloty | | | 7,869,961 | | | United States Dollar | | | 2,057,560 | | | | (53,303 | ) |
12/09/2016 | | Merrill Lynch | | Romanian Leu | | | 3,012,909 | | | United States Dollar | | | 762,299 | | | | (27,763 | ) |
12/09/2016 | | Barclays | | Russian Ruble | | | 59,845,770 | | | United States Dollar | | | 953,193 | | | | (19,093 | ) |
12/09/2016 | | Deutsche Bank | | Russian Ruble | | | 25,354,242 | | | United States Dollar | | | 390,615 | | | | 5,126 | |
01/04/2017 | | Deutsche Bank | | Brazilian Real | | | 4,379,714 | | | United States Dollar | | | 1,318,000 | | | | 26,709 | |
01/04/2017 | | Deutsche Bank | | Brazilian Real | | | 2,722,623 | | | United States Dollar | | | 816,281 | | | | 19,649 | |
01/04/2017 | | Deutsche Bank | | Brazilian Real | | | 2,331,342 | | | United States Dollar | | | 702,000 | | | | 13,795 | |
01/04/2017 | | Goldman Sachs | | Brazilian Real | | | 6,700,340 | | | United States Dollar | | | 2,020,000 | | | | 37,213 | |
01/04/2017 | | Merrill Lynch | | Brazilian Real | | | 1,543,528 | | | United States Dollar | | | 463,647 | | | | 10,264 | |
01/04/2017 | | Santander | | Brazilian Real | | | 13,092,000 | | | United States Dollar | | | 4,000,000 | | | | 19,652 | |
01/04/2017 | | JP Morgan | | United States Dollar | | | 465,000 | | | Brazilian Real | | | 1,490,232 | | | | 7,452 | |
See accompanying notes to the financial statements.
81
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | | | |
Settlement Date | | Counterparty | | Currency Buy | | Currency
Buy
Amount
(Local
Currency) | | | Currency Sell | | Currency
Sell
Amount
(Local
Currency) | | | Unrealized
Gain/(Loss) | |
01/04/2017 | | Merrill Lynch | | United States Dollar | | | 259,670 | | | Brazilian Real | | | 826,919 | | | | $ 5,780 | |
01/06/2017 | | HSBC Bank | | Chinese Offshore Yuan | | | 6,036,800 | | | United States Dollar | | | 912,317 | | | | (26,509 | ) |
01/06/2017 | | HSBC Bank | | United States Dollar | | | 880,000 | | | Chinese Offshore Yuan | | | 6,036,800 | | | | (5,807 | ) |
01/26/2017 | | JP Morgan | | United States Dollar | | | 779,464 | | | Korean Won | | | 873,701,028 | | | | 16,099 | |
01/31/2017 | | BNP Paribas | | Chilean Peso | | | 31,682,863 | | | United States Dollar | | | 47,091 | | | | 1,068 | |
01/31/2017 | | ING | | Hungarian Forint | | | 139,218,754 | | | United States Dollar | | | 492,583 | | | | 3,217 | |
01/31/2017 | | Deutsche Bank | | Hungarian Forint | | | 519,105,253 | | | United States Dollar | | | 1,836,793 | | | | 11,898 | |
01/31/2017 | | Citibank | | Malaysian Ringgit | | | 7,846,797 | | | United States Dollar | | | 1,871,850 | | | | (8,332 | ) |
01/31/2017 | | Deutsche Bank | | Malaysian Ringgit | | | 1,851,263 | | | United States Dollar | | | 439,000 | | | | 652 | |
01/31/2017 | | Citibank | | Mexican Peso | | | 938,335 | | | United States Dollar | | | 49,811 | | | | (675 | ) |
01/31/2017 | | Citibank | | Mexican Peso | | | 3,102,502 | | | United States Dollar | | | 165,104 | | | | (2,642 | ) |
01/31/2017 | | Citibank | | Mexican Peso | | | 4,045,147 | | | United States Dollar | | | 215,085 | | | | (3,262 | ) |
01/31/2017 | | Deutsche Bank | | Mexican Peso | | | 16,784,609 | | | United States Dollar | | | 889,353 | | | | (10,432 | ) |
01/31/2017 | | Citibank | | Peruvian Nuevo Sol | | | 2,524,124 | | | United States Dollar | | | 739,237 | | | | 3,312 | |
01/31/2017 | | Credit Suisse | | Peruvian Nuevo Sol | | | 1,750,137 | | | United States Dollar | | | 513,764 | | | | 1,093 | |
01/31/2017 | | Credit Suisse | | Peruvian Nuevo Sol | | | 1,831,112 | | | United States Dollar | | | 539,673 | | | | (995 | ) |
01/31/2017 | | HSBC Bank | | Polish Zloty | | | 4,209,847 | | | United States Dollar | | | 1,058,668 | | | | 12,520 | |
01/31/2017 | | Merrill Lynch | | Polish Zloty | | | 1,637,648 | | | United States Dollar | | | 413,550 | | | | 3,147 | |
01/31/2017 | | Merrill Lynch | | Polish Zloty | | | 1,094,892 | | | United States Dollar | | | 276,098 | | | | 2,496 | |
01/31/2017 | | Merrill Lynch | | Romanian Leu | | | 3,368,648 | | | United States Dollar | | | 815,278 | | | | 7,002 | |
01/31/2017 | | Citibank | | Russian Ruble | | | 89,768,656 | | | United States Dollar | | | 1,409,462 | | | | (25,677 | ) |
01/31/2017 | | BNP Paribas | | United States Dollar | | | 97,285 | | | Colombian Peso | | | 290,298,381 | | | | 1,986 | |
01/31/2017 | | Citibank | | United States Dollar | | | 116,631 | | | Indonesian Rupiah | | | 1,537,200,000 | | | | 341 | |
01/31/2017 | | Deutsche Bank | | United States Dollar | | | 80,045 | | | Indonesian Rupiah | | | 1,060,434,044 | | | | (178 | ) |
01/31/2017 | | JP Morgan | | United States Dollar | | | 302,034 | | | Indonesian Rupiah | | | 3,992,884,430 | | | | (32 | ) |
01/31/2017 | | Merrill Lynch | | United States Dollar | | | 345,862 | | | Philippine Peso | | | 16,798,527 | | | | 1,382 | |
01/31/2017 | | ANZ | | United States Dollar | | | 1,220,448 | | | Singapore Dollar | | | 1,690,565 | | | | 4,785 | |
01/31/2017 | | Citibank | | United States Dollar | | | 657,482 | | | Singapore Dollar | | | 906,700 | | | | 5,486 | |
01/31/2017 | | Citibank | | United States Dollar | | | 1,120,000 | | | Singapore Dollar | | | 1,559,852 | | | | (1,669 | ) |
01/31/2017 | | Citibank | | United States Dollar | | | 1,117,000 | | | Singapore Dollar | | | 1,557,277 | | | | (2,817 | ) |
01/31/2017 | | Barclays | | United States Dollar | | | 333,794 | | | South African Rand | | | 4,729,020 | | | | (10,402 | ) |
01/31/2017 | | JP Morgan | | United States Dollar | | | 786,000 | | | Turkish Lira | | | 2,454,835 | | | | 8,132 | |
03/06/2017 | | HSBC Bank | | Chinese Offshore Yuan | | | 5,017,910 | | | United States Dollar | | | 788,298 | | | | (55,012 | ) |
03/06/2017 | | HSBC Bank | | Chinese Offshore Yuan | | | 10,100,000 | | | United States Dollar | | | 1,584,687 | | | | (108,736 | ) |
03/06/2017 | | HSBC Bank | | United States Dollar | | | 1,810,000 | | | Chinese Offshore Yuan | | | 11,296,210 | | | | 159,242 | |
03/06/2017 | | HSBC Bank | | United States Dollar | | | 600,000 | | | Chinese Offshore Yuan | | | 3,821,700 | | | | 41,521 | |
03/31/2017 | | Merrill Lynch | | Mexican Peso | | | 40,674,280 | | | United States Dollar | | | 2,276,503 | | | | (160,686 | ) |
03/31/2017 | | Santander | | Mexican Peso | | | 40,669,138 | | | United States Dollar | | | 2,279,788 | | | | (164,239 | ) |
03/31/2017 | | JP Morgan | | United States Dollar | | | 1,800,000 | | | Mexican Peso | | | 35,080,425 | | | | (24,833 | ) |
05/11/2017 | | HSBC Bank | | Chinese Offshore Yuan | | | 5,296,871 | | | United States Dollar | | | 790,000 | | | | (19,163 | ) |
05/11/2017 | | HSBC Bank | | Chinese Offshore Yuan | | | 4,682,738 | | | United States Dollar | | | 701,429 | | | | (19,965 | ) |
05/11/2017 | | ANZ | | United States Dollar | | | 37,000 | | | Chinese Offshore Yuan | | | 248,714 | | | | 805 | |
05/11/2017 | | HSBC Bank | | United States Dollar | | | 1,454,000 | | | Chinese Offshore Yuan | | | 9,730,895 | | | | 37,894 | |
09/08/2017 | | JP Morgan | | Czech Koruna | | | 3,222,048 | | | Euro | | | 120,284 | | | | 219 | |
09/08/2017 | | Merrill Lynch | | Czech Koruna | | | 44,740,970 | | | Euro | | | 1,670,000 | | | | 3,326 | |
10/03/2017 | | Deutsche Bank | | United States Dollar | | | 702,000 | | | Brazilian Real | | | 2,497,014 | | | | (12,753 | ) |
10/03/2017 | | Deutsche Bank | | United States Dollar | | | 1,318,000 | | | Brazilian Real | | | 4,694,057 | | | | (25,641 | ) |
10/03/2017 | | Goldman Sachs | | United States Dollar | | | 2,020,000 | | | Brazilian Real | | | 7,177,060 | | | | (34,384 | ) |
01/03/2018 | | Santander | | United States Dollar | | | 4,000,000 | | | Brazilian Real | | | 14,282,000 | | | | (13,848 | ) |
| | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | $(390,258 | ) |
| | | | | | | | | | | | | | | | | | |
See accompanying notes to the financial statements.
82
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
At October 31, 2016, 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 | | 12.255% | | | BRL | | | | 5,841,635 | | | | 01/02/2019 | | | | $16,218 | | | HSBC Bank |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 13.850% | | | BRL | | | | 10,327,724 | | | | 01/02/2019 | | | | 160,756 | | | HSBC Bank |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 13.055% | | | BRL | | | | 3,650,266 | | | | 01/04/2021 | | | | 85,298 | | | HSBC Bank |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 15.630% | | | BRL | | | | 2,039,065 | | | | 01/02/2019 | | | | 69,861 | | | BNP Paribas |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 15.571% | | | BRL | | | | 3,065,205 | | | | 01/02/2019 | | | | 103,016 | | | BNP Paribas |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 12.270% | | | BRL | | | | 5,207,704 | | | | 01/02/2019 | | | | 16,543 | | | BNP Paribas |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 12.135% | | | BRL | | | | 5,191,414 | | | | 01/02/2019 | | | | 13,225 | | | BNP Paribas |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 12.220% | | | BRL | | | | 2,205,510 | | | | 01/02/2019 | | | | 7,661 | | | HSBC Bank |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 12.340% | | | BRL | | | | 3,954,419 | | | | 01/04/2021 | | | | 51,183 | | | HSBC Bank |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 11.503% | | | BRL | | | | 15,067,344 | | | | 01/02/2019 | | | | (1,395) | | | HSBC Bank |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 11.440% | | | BRL | | | | 6,134,024 | | | | 01/02/2019 | | | | (2,618) | | | HSBC Bank |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 11.998% | | | BRL | | | | 11,637,308 | | | | 01/02/2019 | | | | 26,688 | | | BNP Paribas |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 12.055% | | | BRL | | | | 2,219,595 | | | | 01/02/2019 | | | | 6,060 | | | BNP Paribas |
Brazil CETIP Interbank | | | | | | | | | | | | | | | | | | | | |
Deposit Rate | | 12.016% | | | BRL | | | | 7,440,313 | | | | 01/02/2019 | | | | 18,838 | | | BNP Paribas |
MXN-TIIE-BANXICO | | | | | | | | | | | | | | | | | | | | |
28 Day Rate | | 5.645% | | | MXN | | | | 10,000,000 | | | | 08/11/2021 | | | | (10,358) | | | HSBC Bank |
MXN-TIIE-BANXICO | | | | | | | | | | | | | | | | | | | | |
28 Day Rate | | 5.900% | | | MXN | | | | 23,500,000 | | | | 09/13/2021 | | | | (11,008) | | | HSBC Bank |
MXN-TIIE-BANXICO | | | | | | | | | | | | | | | | | | | | |
28 Day Rate | | 6.295% | | | MXN | | | | 5,300,000 | | | | 09/11/2026 | | | | (4,455) | | | HSBC Bank |
MYR-KLIBOR-BNM 3 Month | | 3.600% | | | MYR | | | | 750,000 | | | | 08/18/2026 | | | | (3,404) | | | HSBC Bank |
MYR-KLIBOR-BNM 3 Month | | 3.555% | | | MYR | | | | 7,821,000 | | | | 03/18/2018 | | | | 6,363 | | | HSBC Bank |
MYR-KLIBOR-BNM 3 Month | | 3.560% | | | MYR | | | | 6,747,300 | | | | 03/22/2018 | | | | 5,643 | | | HSBC Bank |
MYR-KLIBOR-BNM 3 Month | | 4.055% | | | MYR | | | | 5,200,000 | | | | 04/27/2026 | | | | 23,342 | | | HSBC Bank |
WIBOR Poland 6 Month | | 1.955% | | | PLN | | | | 6,400,000 | | | | 09/24/2020 | | | | (1,990) | | | BNP Paribas |
Johannesburg Interbank | | | | | | | | | | | | | | | | | | | | |
Agreed Rate 3 Month | | 8.030% | | | ZAR | | | | 8,800,000 | | | | 09/30/2026 | | | | (4,563) | | | JP Morgan |
Johannesburg Interbank | | | | | | | | | | | | | | | | | | | | |
Agreed Rate 3 Month | | 7.980% | | | ZAR | | | | 2,200,000 | | | | 10/04/2026 | | | | (1,729) | | | HSBC Bank |
Johannesburg Interbank | | | | | | | | | | | | | | | | | | | | |
Agreed Rate 3 Month | | 8.105% | | | ZAR | | | | 5,000,000 | | | | 10/07/2026 | | | | (745) | | | HSBC Bank |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | $568,430 | | | |
| | | | | | | | | | | | | | | | | | | | |
See accompanying notes to the financial statements.
83
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
At October 31, 2016, 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 | | | Variation Margin
Receivable (Payable) | | | Counterparty | |
Budapest Interbank | | | | | | | | | | | | | | | | | | | | | | | | |
6 Month Rate | | | 1.820% | | | | HUF | | | | 91,600,000 | | | | 10/07/2020 | | | | $10,538 | | | | HSBC Bank | |
Budapest Interbank | | | | | | | | | | | | | | | | | | | | | | | | |
6 Month Rate | | | 1.795% | | | | HUF | | | | 93,000,000 | | | | 10/09/2020 | | | | 10,358 | | | | HSBC Bank | |
MXN-TIIE-BANXICO | | | | | | | | | | | | | | | | | | | | | | | | |
28 Day Rate | | | 6.000% | | | | MXN | | | | 17,500,000 | | | | 01/29/2026 | | | | (29,712) | | | | HSBC Bank | |
WIBOR Poland 6 Month | | | 1.853% | | | | PLN | | | | 1,300,000 | | | | 04/21/2021 | | | | 181 | | | | HSBC Bank | |
WIBOR Poland 6 Month | | | 2.290% | | | | PLN | | | | 690,000 | | | | 11/03/2025 | | | | (57) | | | | HSBC Bank | |
WIBOR Poland 6 Month | | | 2.375% | | | | PLN | | | | 1,290,000 | | | | 05/04/2026 | | | | (2,437) | | | | HSBC Bank | |
WIBOR Poland 6 Month | | | 2.110% | | | | PLN | | | | 1,300,000 | | | | 07/07/2026 | | | | (11,160) | | | | Citibank | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $(22,289) | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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, 2016:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Debt Securities | | | | | | | | | | | | | | | | |
Corporate Bonds | | | $— | | | $ | 122,870 | | | $ | — | | | $ | 122,870 | |
Financial Certificates | | | — | | | | 620,498 | | | | — | | | | 620,498 | |
Government Bonds | | | — | | | | 51,702,973 | | | | — | | | | 51,702,973 | |
Index Linked Government Bonds | | | — | | | | 4,310,271 | | | | — | | | | 4,310,271 | |
| | | | | | | | | | | | | | | | |
Total Debt Securities | | | — | | | | 56,756,612 | | | | — | | | | 56,756,612 | |
Fully Funded Total Return Swaps | | | — | | | | 2,685,952 | | | | — | | | | 2,685,952 | |
Total Investments | | | $— | | | $ | 59,442,564 | | | $ | — | | | $ | 59,442,564 | |
| | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | $— | | | $ | 606,276 | | | $ | — | | | $ | 606,276 | |
Interest Rate Swap Contracts | | | — | | | | 610,695 | | | | — | | | | 610,695 | |
Centrally Cleared Swap Contracts | | | — | | | | 21,077 | | | | — | | | | 21,077 | |
Liabilities: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | — | | | | (996,534) | | | | — | | | | (996,534) | |
Interest Rate Swap Contracts | | | — | | | | (42,265) | | | | — | | | | (42,265) | |
Centrally Cleared Swap Contracts | | | — | | | | (43,366) | | | | — | | | | (43,366) | |
Total Other Financial Instruments | | | $— | | | $ | 155,883 | | | $ | — | | | $ | 155,883 | |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2016, there were no transfers between Level 1, Level 2 and Level 3 based on levels assigned to the securities on October 31, 2015.
See accompanying notes to the financial statements.
84
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
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, 2016:
| | | | | | | | |
| | | Derivatives Not Accounted for as
Hedging Instruments | |
| | |
| | | Foreign Exchange | | | Interest Rate | |
| | |
Assets: | | | | | | | | |
Unrealized Appreciation on Interest Rate Swap Contracts | | $ | — | | | | $ 610,695 | |
Variation Margin Receivable on Centrally Cleared Swap Contracts | | | — | | | | 21,077 | |
Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | | 606,276 | | | | — | |
| | $ | 606,276 | | | | $ 631,772 | |
| | |
Liabilities: | | | | | | | | |
Unrealized Depreciation on Interest Rate Swap Contracts | | $ | — | | | | $ (42,265 | ) |
Variation Margin Payable on Centrally Cleared Swap Contracts | | | — | | | | (43,366 | ) |
Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | | | (996,534 | ) | | | — | |
| | $ | (996,534 | ) | | | $ (85,631) | |
The Effect of Financial Derivative Instruments on the Statements of Operations for the Year Ended October 31, 2016:
| | | | | | | | |
| | | Derivatives Not Accounted for as
Hedging Instruments | |
| | | Foreign Exchange | | | Interest Rate | |
Realized Gain (Loss) on Derivatives Recognized resulting from Operations: | | | | | | | | |
Net Realized Gain on Forward Foreign Currency Exchange Contracts | | $ | 1,161,490 | | | $ | — | |
Net Realized Gain on Interest Rate Swap Contracts | | | — | | | | 289,938 | |
| | | | |
| | $ | 1,161,490 | | | $ | 289,938 | |
| | | | |
| | |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized resulting from Operations: | | | | | | | | |
Net Change in Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | | $ | (614,026) | | | $ | — | |
Net Change in Unrealized Appreciation on Interest Rate and Centrally Cleared Swap Contracts | | | — | | | | 918,868 | |
| | | | |
| | $ | (614,026) | | | $ | 918,868 | |
| | | | |
| * | See note 10 in the Notes to the Financial Statements for additional information. |
See accompanying notes to the financial statements.
85
ASHMORE EMERGING MARKETS LOCAL CURRENCY BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
At October 31, 2016, 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 | | $ | 62,169,449 | |
Gross tax appreciation of investments | | | 1,841,917 | |
Gross tax depreciation of investments | | | (4,568,802) | |
Net tax depreciation of investments | | $ | (2,726,885) | |
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.
86
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2016
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Debt Securities | | | | | | | | | | | | | | |
| | | | |
Argentina (Cost $1,774,521) | | | | | | | | | | | | | | |
YPF S.A. 8.500%, 03/23/2021 | | | | | 800,000 | | | $ | 879,760 | | | | 0.38 | |
YPF S.A. 8.500%, 07/28/2025 | | | | | 950,000 | | | | 1,035,500 | | | | 0.44 | |
| | | | | | | | | 1,915,260 | | | | 0.82 | |
Barbados (Cost $2,428,277) | | | | | | | | | | | | | | |
Columbus Cable Barbados Ltd. 7.375%, 03/30/2021 | | | | | 2,295,000 | | | | 2,455,650 | | | | 1.05 | |
| | | | | | | | | 2,455,650 | | | | 1.05 | |
Brazil (Cost $35,604,283) | | | | | | | | | | | | | | |
Andrade Gutierrez International S.A. 4.000%, 04/30/2018 | | | | | 865,000 | | | | 704,975 | | | | 0.30 | |
Banco do Brasil S.A., FRN 8.500%, 10/29/2049 | | | | | 1,945,000 | | | | 1,994,987 | | | | 0.86 | |
BRF GmbH 4.350%, 09/29/2026(2) | | | | | 300,000 | | | | 290,100 | | | | 0.12 | |
BRF S.A. 4.750%, 05/22/2024 | | | | | 685,000 | | | | 697,056 | | | | 0.30 | |
Embraer Netherlands Finance B.V. 5.050%, 06/15/2025 | | | | | 615,000 | | | | 616,538 | | | | 0.26 | |
Globo Comunicacao e Participacoes S.A., FRN 4.843%, 06/08/2025 | | | | | 650,000 | | | | 656,825 | | | | 0.28 | |
Marfrig Holdings Europe B.V. 6.875%, 06/24/2019 | | | | | 2,085,000 | | | | 2,152,762 | | | | 0.92 | |
Marfrig Holdings Europe B.V. 8.000%, 06/08/2023 | | | | | 2,100,000 | | | | 2,168,250 | | | | 0.93 | |
Marfrig Overseas Ltd. 9.500%, 05/04/2020 | | | | | 1,970,000 | | | | 2,039,344 | | | | 0.87 | |
Minerva Luxembourg S.A. 12.250%, 02/10/2022 | | | | | 200,000 | | | | 216,000 | | | | 0.09 | |
Odebrecht Drilling Norbe VIII/IX Ltd. 6.350%, 06/30/2021 | | | | | 559,500 | | | | 179,040 | | | | 0.08 | |
Petrobras Global Finance B.V., FRN 3.020%, 01/15/2019 | | | | | 480,000 | | | | 471,000 | | | | 0.20 | |
Petrobras Global Finance B.V. 5.375%, 01/27/2021 | | | | | 4,480,000 | | | | 4,436,096 | | | | 1.90 | |
Petrobras Global Finance B.V. 6.250%, 03/17/2024 | | | | | 955,000 | | | | 944,018 | | | | 0.41 | |
Petrobras Global Finance B.V. 8.750%, 05/23/2026 | | | | | 1,540,000 | | | | 1,734,810 | | | | 0.74 | |
Petrobras Global Finance B.V. 6.875%, 01/20/2040 | | | | | 5,791,000 | | | | 5,182,945 | | | | 2.22 | |
Petrobras Global Finance B.V. 6.750%, 01/27/2041 | | | | | 250,000 | | | | 221,488 | | | | 0.10 | |
Petrobras Global Finance B.V. 6.850%, 06/05/2115 | | | | | 987,000 | | | | 838,950 | | | | 0.36 | |
QGOG Atlantic/Alaskan Rigs Ltd. 5.250%, 07/30/2018 | | | | | 1,934,592 | | | | 1,731,459 | | | | 0.74 | |
QGOG Constellation S.A. 6.250%, 11/09/2019 | | | | | 5,809,000 | | | | 2,773,797 | | | | 1.19 | |
Vale Overseas Ltd. 5.875%, 06/10/2021 | | | | | 900,000 | | | | 959,625 | | | | 0.41 | |
Vale Overseas Ltd. 6.875%, 11/21/2036 | | | | | 2,258,000 | | | | 2,277,080 | | | | 0.98 | |
Vale Overseas Ltd. 6.875%, 11/10/2039 | | | | | 3,477,000 | | | | 3,435,971 | | | | 1.47 | |
| | | | | | | | | 36,723,116 | | | | 15.73 | |
Chile (Cost $1,238,980) | | | | | | | | | | | | | | |
Cencosud S.A. 5.500%, 01/20/2021 | | | | | 200,000 | | | | 216,715 | | | | 0.09 | |
Empresa Electrica Guacolda S.A. 4.560%, 04/30/2025 | | | | | 650,000 | | | | 617,709 | | | | 0.26 | |
Enersis Americas S.A. 4.000%, 10/25/2026 | | | | | 200,000 | | | | 199,720 | | | | 0.09 | |
Inversiones CMPC S.A. 4.375%, 05/15/2023 | | | | | 200,000 | | | | 208,232 | | | | 0.09 | |
| | | | | | | | | 1,242,376 | | | | 0.53 | |
China (Cost $9,675,631) | | | | | | | | | | | | | | |
Alibaba Group Holding Ltd. 3.125%, 11/28/2021 | | | | | 450,000 | | | | 464,962 | | | | 0.20 | |
Baidu, Inc. 3.500%, 11/28/2022 | | | | | 400,000 | | | | 416,093 | | | | 0.18 | |
Bestgain Real Estate Ltd. 2.625%, 03/13/2018 | | | | | 500,000 | | | | 499,706 | | | | 0.21 | |
China Forestry Holdings Co. Ltd. 10.250%, 11/17/2015(3)(4) | | | | | 60,000 | | | | 4,800 | | | | — | |
China Overseas Finance Cayman III Ltd. 3.375%, 10/29/2018 | | | | | 215,000 | | | | 221,201 | | | | 0.09 | |
China Overseas Finance Cayman V Ltd. 3.950%, 11/15/2022 | | | | | 300,000 | | | | 316,374 | | | | 0.14 | |
China Railway Resources Huitung Ltd. 3.850%, 02/05/2023 | | | | | 625,000 | | | | 652,153 | | | | 0.28 | |
ENN Energy Holdings Ltd. 6.000%, 05/13/2021 | | | | | 800,000 | | | | 902,195 | | | | 0.39 | |
Far East Energy Bermuda Ltd. 13.000%, 01/15/2016(2)(3)(4)(5)(6) | | | | | 282,201 | | | | — | | | | — | |
See accompanying notes to the financial statements.
87
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
China - (continued) | | | | | | | | | | | | | | |
Franshion Brilliant Ltd. 5.750%, 03/19/2019 | | | | | 815,000 | | | $ | 864,511 | | | | 0.37 | |
ICBC Standard Bank PLC 8.125%, 12/02/2019 | | | | | 490,000 | | | | 555,537 | | | | 0.24 | |
Kaisa Group Holdings Ltd. 6.560%, 12/31/2019(7) | | | | | 374,750 | | | | 349,379 | | | | 0.15 | |
Kaisa Group Holdings Ltd. 6.560%, 06/30/2020(7) | | | | | 674,551 | | | | 629,309 | | | | 0.27 | |
Kaisa Group Holdings Ltd. 6.560%, 12/31/2020(7) | | | | | 999,451 | | | | 932,268 | | | | 0.40 | |
Kaisa Group Holdings Ltd. 6.560%, 06/30/2021(7) | | | | | 1,064,401 | | | | 992,926 | | | | 0.42 | |
Kaisa Group Holdings Ltd. 6.560%, 12/31/2021(7) | | | | | 1,149,351 | | | | 1,072,793 | | | | 0.46 | |
Sinopec Group Overseas Development 2013 Ltd. 4.375%, 10/17/2023 | | | | | 240,000 | | | | 262,200 | | | | 0.11 | |
Tencent Holdings Ltd. 3.375%, 05/02/2019 | | | | | 520,000 | | | | 537,915 | | | | 0.23 | |
| | | | | | | | | 9,674,322 | | | | 4.14 | |
Colombia (Cost $7,286,927) | | | | | | | | | | | | | | |
Banco Bilbao Vizcaya Argentaria Colombia S.A. 4.875%, 04/21/2025 | | | | | 930,000 | | | | 945,066 | | | | 0.40 | |
Ecopetrol S.A. 5.875%, 09/18/2023 | | | | | 870,000 | | | | 933,075 | | | | 0.40 | |
Ecopetrol S.A. 7.375%, 09/18/2043 | | | | | 775,000 | | | | 790,500 | | | | 0.34 | |
Empresa de Telecomunicaciones de Bogota 7.000%, 01/17/2023 | | COP | | | 3,260,000,000 | | | | 810,032 | | | | 0.35 | |
GrupoSura Finance S.A. 5.500%, 04/29/2026 | | | | | 600,000 | | | | 636,000 | | | | 0.27 | |
Millicom International Cellular S.A. 6.000%, 03/15/2025 | | | | | 1,760,000 | | | | 1,776,632 | | | | 0.76 | |
Transportadora de Gas Internacional S.A. ESP 5.700%, 03/20/2022 | | | | | 805,000 | | | | 832,370 | | | | 0.36 | |
| | | | | | | | | 6,723,675 | | | | 2.88 | |
Czech Republic (Cost $2,513,469) | | | | | | | | | | | | | | |
EP Energy A.S. 5.875%, 11/01/2019 | | EUR | | | 430,000 | | | | 535,149 | | | | 0.23 | |
New World Resources N.V. 8.000%, 04/07/2020(6)(7) | | EUR | | | 1,528,652 | | | | — | | | | — | |
New World Resources N.V. 4.000%, 10/07/2020(6)(7) | | EUR | | | 648,695 | | | | — | | | | — | |
New World Resources N.V. 16.697%, 10/07/2020(2)(5)(6)(8) | | EUR | | | 101,612 | | | | — | | | | — | |
| | | | | | | | | 535,149 | | | | 0.23 | |
Dominican Republic (Cost $1,231,713) | | | | | | | | | | | | | | |
Aeropuertos Dominicanos Siglo XXI S.A., FRN 9.750%, 11/13/2019 | | | | | 1,245,000 | | | | 1,304,138 | | | | 0.56 | |
| | | | | | | | | 1,304,138 | | | | 0.56 | |
Ecuador (Cost $7,495,083) | | | | | | | | | | | | | | |
EP PetroEcuador via Noble Sovereign Funding I Ltd., FRN 6.487%, 09/24/2019 | | | | | 8,348,842 | | | | 8,244,481 | | | | 3.53 | |
| | | | | | | | | 8,244,481 | | | | 3.53 | |
Guatemala (Cost $2,579,479) | | | | | | | | | | | | | | |
Comcel Trust via Comunicaciones Celulares S.A. 6.875%, 02/06/2024 | | | | | 2,560,000 | | | | 2,617,600 | | | | 1.12 | |
| | | | | | | | | 2,617,600 | | | | 1.12 | |
Hong Kong (Cost $934,583) | | | | | | | | | | | | | | |
Hutchison Whampoa International 14 Ltd. 3.625%, 10/31/2024 | | | | | 630,000 | | | | 662,439 | | | | 0.28 | |
PCCW-HKT Capital No. 5 Ltd. 3.750%, 03/08/2023 | | | | | 270,000 | | | | 282,960 | | | | 0.12 | |
| | | | | | | | | 945,399 | | | | 0.40 | |
India (Cost $2,042,095) | | | | | | | | | | | | | | |
Bharat Petroleum Corp. Ltd. 4.000%, 05/08/2025 | | | | | 740,000 | | | | 758,688 | | | | 0.32 | |
Bharti Airtel International Netherlands B.V. 5.125%, 03/11/2023 | | | | | 945,000 | | | | 1,016,016 | | | | 0.44 | |
ICICI Bank Ltd. 4.750%, 11/25/2016 | | | | | 300,000 | | | | 300,540 | | | | 0.13 | |
| | | | | | | | | 2,075,244 | | | | 0.89 | |
See accompanying notes to the financial statements.
88
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Indonesia (Cost $3,045,700) | | | | | | | | | | | | | | |
Golden Legacy Pte. Ltd. 8.250%, 06/07/2021 | | | | | 950,000 | | | $ | 1,017,027 | | | | 0.44 | |
Indo Energy Finance II B.V. 6.375%, 01/24/2023 | | | | | 2,820,000 | | | | 2,199,784 | | | | 0.94 | |
| | | | | | | | | 3,216,811 | | | | 1.38 | |
Israel (Cost $7,205,735) | | | | | | | | | | | | | | |
Altice Financing S.A. 7.500%, 05/15/2026 | | | | | 4,235,000 | | | | 4,362,050 | | | | 1.87 | |
Altice Finco S.A. 7.625%, 02/15/2025 | | | | | 1,055,000 | | | | 1,044,450 | | | | 0.45 | |
Israel Electric Corp. Ltd. 5.625%, 06/21/2018 | | | | | 365,000 | | | | 382,794 | | | | 0.16 | |
Israel Electric Corp. Ltd. 7.250%, 01/15/2019 | | | | | 470,000 | | | | 516,295 | | | | 0.22 | |
Israel Electric Corp. Ltd. 5.000%, 11/12/2024(2) | | | | | 445,000 | | | | 479,265 | | | | 0.21 | |
Teva Pharmaceutical Finance Co. B.V. 3.650%, 11/10/2021 | | | | | 490,000 | | | | 516,068 | | | | 0.22 | |
| | | | | | | | | 7,300,922 | | | | 3.13 | |
Jamaica (Cost $17,893,877) | | | | | | | | | | | | | | |
Digicel Group Ltd. 8.250%, 09/30/2020 | | | | | 11,185,000 | | | | 9,898,725 | | | | 4.24 | |
Digicel Group Ltd. 7.125%, 04/01/2022 | | | | | 3,545,000 | | | | 2,808,349 | | | | 1.21 | |
Digicel Ltd. 6.000%, 04/15/2021 | | | | | 4,130,000 | | | | 3,695,111 | | | | 1.58 | |
| | | | | | | | | 16,402,185 | | | | 7.03 | |
Kazakhstan (Cost $19,136,005) | | | | | | | | | | | | | | |
Development Bank of Kazakhstan JSC 4.125%, 12/10/2022 | | | | | 390,000 | | | | 380,328 | | | | 0.16 | |
Kazakhstan Temir Zholy Finance B.V. 6.375%, 10/06/2020 | | | | | 580,000 | | | | 616,250 | | | | 0.26 | |
Kazkommertsbank JSC 7.500%, 11/29/2016 | | | | | 1,680,000 | | | | 1,654,800 | | | | 0.71 | |
Kazkommertsbank JSC 6.875%, 02/13/2017 | | EUR | | | 2,325,000 | | | | 2,503,469 | | | | 1.07 | |
Kazkommertsbank JSC 8.500%, 05/11/2018 | | | | | 2,450,000 | | | | 2,419,375 | | | | 1.04 | |
Kazkommertsbank JSC 5.500%, 12/21/2022 | | | | | 5,683,616 | | | | 4,039,460 | | | | 1.73 | |
KazMunayGas National Co. JSC 6.375%, 04/09/2021 | | | | | 365,000 | | | | 401,096 | | | | 0.17 | |
Tengizchevroil Finance Co. International Ltd. 4.000%, 08/15/2026 | | | | | 730,000 | | | | 703,777 | | | | 0.30 | |
Zhaikmunai LLP 6.375%, 02/14/2019 | | | | | 2,950,000 | | | | 2,733,028 | | | | 1.17 | |
Zhaikmunai LLP 7.125%, 11/13/2019 | | | | | 3,530,000 | | | | 3,256,425 | | | | 1.40 | |
| | | | | | | | | 18,708,008 | | | | 8.01 | |
Kuwait (Cost $1,076,566) | | | | | | | | | | | | | | |
Equate Petrochemical B.V. 4.250%, 11/03/2026(2) | | | | | 490,000 | | | | 484,703 | | | | 0.21 | |
NBK Tier 1 Financing Ltd., FRN 5.750%, 12/29/2049 | | | | | 580,000 | | | | 591,716 | | | | 0.25 | |
| | | | | | | | | 1,076,419 | | | | 0.46 | |
Malaysia (Cost $201,535) | | | | | | | | | | | | | | |
Malayan Banking Bhd., FRN 3.250%, 09/20/2022 | | | | | 200,000 | | | | 201,900 | | | | 0.09 | |
| | | | | | | | | 201,900 | | | | 0.09 | |
Mexico (Cost $6,721,679) | | | | | | | | | | | | | | |
Alfa S.A.B. de C.V. 6.875%, 03/25/2044 | | | | | 310,000 | | | | 332,475 | | | | 0.14 | |
Banco Inbursa S.A. Institucion de Banca Multiple 4.125%, 06/06/2024 | | | | | 345,000 | | | | 348,347 | | | | 0.15 | |
BBVA Bancomer S.A. 6.750%, 09/30/2022 | | | | | 220,000 | | | | 247,401 | | | | 0.10 | |
Cemex S.A.B. de C.V. 7.750%, 04/16/2026 | | | | | 1,895,000 | | | | 2,123,537 | | | | 0.91 | |
Fresnillo PLC 5.500%, 11/13/2023 | | | | | 275,000 | | | | 300,094 | | | | 0.13 | |
Grupo Posadas S.A.B. de C.V. 7.875%, 06/30/2022(9) | | | | | 1,930,000 | | | | 1,998,515 | | | | 0.86 | |
Grupo Televisa S.A.B. 6.625%, 01/15/2040 | | | | | 150,000 | | | | 171,756 | | | | 0.07 | |
Mexichem S.A.B. de C.V. 5.875%, 09/17/2044 | | | | | 690,000 | | | | 669,369 | | | | 0.29 | |
Mexico Generadora de Energia S. de rl 5.500%, 12/06/2032 | | | | | 247,359 | | | | 251,378 | | | | 0.11 | |
Southern Copper Corp. 3.875%, 04/23/2025 | | | | | 250,000 | | | | 250,897 | | | | 0.11 | |
Southern Copper Corp. 7.500%, 07/27/2035 | | | | | 175,000 | | | | 205,903 | | | | 0.09 | |
| | | | | | | | | 6,899,672 | | | | 2.96 | |
Mongolia (Cost $6,223,840) | | | | | | | | | | | | | | |
Mongolian Mining Corp. 8.875%, 03/29/2017(3) | | | | | 7,984,000 | | | | 3,952,080 | | | | 1.69 | |
| | | | | | | | | 3,952,080 | | | | 1.69 | |
See accompanying notes to the financial statements.
89
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Morocco (Cost $1,469,177) | | | | | | | | | | | | | | |
OCP S.A. 5.625%, 04/25/2024 | | | | | 705,000 | | | $ | 758,016 | | | | 0.32 | |
OCP S.A. 4.500%, 10/22/2025 | | | | | 730,000 | | | | 735,475 | | | | 0.32 | |
| | | | | | | | | 1,493,491 | | | | 0.64 | |
Nigeria (Cost $9,876,916) | | | | | | | | | | | | | | |
First Bank of Nigeria Ltd. Via FBN Finance Co. B.V., FRN 8.250%, 08/07/2020 | | | | | 2,210,000 | | | | 1,856,400 | | | | 0.80 | |
First Bank of Nigeria Ltd. Via FBN Finance Co. B.V., FRN 8.000%, 07/23/2021 | | | | | 3,141,000 | | | | 2,437,988 | | | | 1.04 | |
Sea Trucks Group Ltd. 9.000%, 03/26/2018(2) | | | | | 3,432,000 | | | | 1,098,240 | | | | 0.47 | |
Seven Energy Finance Ltd. 10.250%, 10/11/2021 | | | | | 2,675,000 | | | | 1,150,250 | | | | 0.49 | |
| | | | | | | | | 6,542,878 | | | | 2.80 | |
Panama (Cost $1,894,618) | | | | | | | | | | | | | | |
Sable International Finance Ltd. 6.875%, 08/01/2022 | | | | | 1,910,000 | | | | 1,976,850 | | | | 0.85 | |
| | | | | | | | | 1,976,850 | | | | 0.85 | |
Peru (Cost $4,359,073) | | | | | | | | | | | | | | |
Banco de Credito del Peru 4.250%, 04/01/2023 | | | | | 270,000 | | | | 289,575 | | | | 0.13 | |
Banco de Credito del Peru, FRN 6.125%, 04/24/2027 | | | | | 720,000 | | | | 799,200 | | | | 0.34 | |
BBVA Banco Continental S.A., FRN 5.250%, 09/22/2029 | | | | | 390,000 | | | | 415,837 | | | | 0.18 | |
Kallpa Generacion S.A. 4.875%, 05/24/2026 | | | | | 600,000 | | | | 637,500 | | | | 0.27 | |
Lima Metro Line 2 Finance Ltd. 5.875%, 07/05/2034 | | | | | 800,000 | | | | 886,000 | | | | 0.38 | |
Minsur S.A. 6.250%, 02/07/2024 | | | | | 600,000 | | | | 627,750 | | | | 0.27 | |
Transportadora de Gas del Peru S.A. 4.250%, 04/30/2028 | | | | | 830,000 | | | | 866,105 | | | | 0.37 | |
| | | | | | | | | 4,521,967 | | | | 1.94 | |
Qatar (Cost $3,554,289) | | | | | | | | | | | | | | |
Ezdan Sukuk Co. Ltd. 4.375%, 05/18/2021 | | | | | 1,415,000 | | | | 1,400,850 | | | | 0.60 | |
Nakilat, Inc. 6.067%, 12/31/2033 | | | | | 660,000 | | | | 791,954 | | | | 0.34 | |
Ooredoo International Finance Ltd. 3.250%, 02/21/2023 | | | | | 715,000 | | | | 727,512 | | | | 0.31 | |
Ras Laffan Liquefied Natural Gas Co. Ltd. II 5.298%, 09/30/2020 | | | | | 371,664 | | | | 397,680 | | | | 0.17 | |
Ras Laffan Liquefied Natural Gas Co. Ltd. III 5.838%, 09/30/2027 | | | | | 250,000 | | | | 289,688 | | | | 0.12 | |
| | | | | | | | | 3,607,684 | | | | 1.54 | |
Russian Federation (Cost $21,862,923) | | | | | | | | | | | | | | |
CEDC Finance Corp. International, Inc. 10.000%, (100% Cash), 04/30/2018(7) | | | | | 2,786,198 | | | | 877,652 | | | | 0.38 | |
CEDC Finance Corp. International, Inc., FRN 10.000%, 04/30/2018 | | | | | 2,157,426 | | | | 1,725,940 | | | | 0.74 | |
Credit Bank of Moscow Via CBOM Finance PLC 8.700%, 11/13/2018 | | | | | 5,480,000 | | | | 5,673,554 | | | | 2.43 | |
Gazprom OAO Via Gaz Capital S.A. 8.625%, 04/28/2034 | | | | | 240,000 | | | | 308,100 | | | | 0.13 | |
GTH Finance B.V. 7.250%, 04/26/2023 | | | | | 2,000,000 | | | | 2,129,000 | | | | 0.91 | |
Lukoil International Finance B.V. 4.563%, 04/24/2023 | | | | | 400,000 | | | | 405,048 | | | | 0.17 | |
Russian Standard Ltd. 13.000%, (100% Cash), 10/27/2022(7) | | | | | 2,739,316 | | | | 1,233,240 | | | | 0.53 | |
Severstal OAO Via Steel Capital S.A. 5.900%, 10/17/2022 | | | | | 455,000 | | | | 492,461 | | | | 0.21 | |
VimpelCom Holdings B.V. 7.504%, 03/01/2022 | | | | | 2,370,000 | | | | 2,616,504 | | | | 1.12 | |
Vnesheconombank Via VEB Finance PLC 6.902%, 07/09/2020 | | | | | 355,000 | | | | 382,512 | | | | 0.17 | |
VTB Bank OJSC Via VTB Capital S.A. 6.950%, 10/17/2022 | | | | | 4,760,000 | | | | 4,970,240 | | | | 2.13 | |
| | | | | | | | | 20,814,251 | | | | 8.92 | |
See accompanying notes to the financial statements.
90
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | |
| | | Currency(1) | | Par | | | Value | | | % of Net
Assets | |
Saudi Arabia (Cost $302,342) | | | | | | | | | | | | | | |
SABIC Capital II B.V. 2.625%, 10/03/2018 | | | | | 300,000 | | | $ | 303,036 | | | | 0.13 | |
| | | | | | | | | 303,036 | | | | 0.13 | |
Singapore (Cost $944,147) | | | | | | | | | | | | | | |
Global Logistic Properties Ltd. 3.875%, 06/04/2025 | | | | | 485,000 | | | | 495,589 | | | | 0.21 | |
SingTel Group Treasury Pte. Ltd. 2.375%, 09/08/2017 | | | | | 255,000 | | | | 257,288 | | | | 0.11 | |
United Overseas Bank Ltd., FRN 2.875%, 10/17/2022 | | | | | 200,000 | | | | 201,728 | | | | 0.09 | |
| | | | | | | | | 954,605 | | | | 0.41 | |
South Africa (Cost $888,129) | | | | | | | | | | | | | | |
MTN Mauritius Investments Ltd. 4.755%, 11/11/2024 | | | | | 905,000 | | | | 851,867 | | | | 0.36 | |
| | | | | | | | | 851,867 | | | | 0.36 | |
Thailand (Cost $557,491) | | | | | | | | | | | | | | |
PTT Global Chemical PCL 4.250%, 09/19/2022 | | | | | 530,000 | | | | 571,052 | | | | 0.24 | |
| | | | | | | | | 571,052 | | | | 0.24 | |
Turkey (Cost $972,611) | | | | | | | | | | | | | | |
Turkcell Iletisim Hizmetleri A.S. 5.750%, 10/15/2025 | | | | | 430,000 | | | | 440,492 | | | | 0.19 | |
Yuksel Insaat A.S. 9.500%, 11/10/2015(3)(4) | | | | | 535,000 | | | | 90,281 | | | | 0.04 | |
| | | | | | | | | 530,773 | | | | 0.23 | |
Ukraine (Cost $18,265,542) | | | | | | | | | | | | | | |
Avangardco Investments Public Ltd. (75% PIK) 10.000%, (100% Cash), 10/29/2018(7) | | | | | 797,370 | | | | 239,370 | | | | 0.10 | |
DTEK Finance PLC 10.375%, 03/28/2018 | | | | | 1,550,000 | | | | 1,228,685 | | | | 0.53 | |
DTEK Finance PLC 7.875%, 04/04/2018 | | | | | 8,065,000 | | | | 6,290,700 | | | | 2.69 | |
Ferrexpo Finance PLC 10.375%, 04/07/2019 | | | | | 1,578,000 | | | | 1,583,208 | | | | 0.68 | |
Metinvest B.V., FRN 10.500%, 11/28/2017 | | | | | 1,688,971 | | | | 1,437,787 | | | | 0.62 | |
Metinvest B.V., FRN 8.750%, 02/14/2018 | | | | | 4,333,678 | | | | 3,727,830 | | | | 1.60 | |
MHP S.A. 8.250%, 04/02/2020 | | | | | 2,765,000 | | | | 2,706,880 | | | | 1.16 | |
UkrLandFarming PLC 10.875%, 03/26/2018 | | | | | 2,507,513 | | | | 802,404 | | | | 0.34 | |
| | | | | | | | | 18,016,864 | | | | 7.72 | |
United Arab Emirates (Cost $6,754,989) | | | | | | | | | | | | | | |
Abu Dhabi National Energy Co. PJSC 2.500%, 01/12/2018 | | | | | 415,000 | | | | 417,092 | | | | 0.18 | |
Abu Dhabi National Energy Co. PJSC 5.875%, 12/13/2021 | | | | | 470,000 | | | | 533,046 | | | | 0.23 | |
Abu Dhabi National Energy Co. PJSC 4.375%, 06/22/2026 | | | | | 300,000 | | | | 313,974 | | | | 0.13 | |
ADCB Finance Cayman Ltd. 4.500%, 03/06/2023 | | | | | 235,000 | | | | 245,034 | | | | 0.10 | |
ADCB Finance Cayman Ltd., FRN 3.125%, 05/28/2023 | | | | | 400,000 | | | | 400,360 | | | | 0.17 | |
DP World Ltd. 3.250%, 05/18/2020 | | | | | 490,000 | | | | 504,700 | | | | 0.22 | |
DP World Ltd. 6.850%, 07/02/2037 | | | | | 310,000 | | | | 353,138 | | | | 0.15 | |
Dubai Holding Commercial Operations MTN Ltd. 6.000%, 02/01/2017 | | GBP | | | 550,000 | | | | 676,485 | | | | 0.29 | |
EMG Sukuk Ltd. 4.564%, 06/18/2024 | | | | | 625,000 | | | | 657,813 | | | | 0.28 | |
MAF Global Securities Ltd. 4.750%, 05/07/2024 | | | | | 640,000 | | | | 683,328 | | | | 0.29 | |
National Bank of Abu Dhabi PJSC, FRN 5.250%, 12/29/2049 | | | | | 515,000 | | | | 527,231 | | | | 0.23 | |
Sukuk Funding No. 3 Ltd. 4.348%, 12/03/2018 | | | | | 985,000 | | | | 1,024,855 | | | | 0.44 | |
Topaz Marine S.A. 8.625%, 11/01/2018 | | | | | 290,000 | | | | 281,201 | | | | 0.12 | |
| | | | | | | | | 6,618,257 | | | | 2.83 | |
Venezuela (Cost $11,124,203) | | | | | | | | | | | | | | |
Petroleos de Venezuela S.A. 5.250%, 04/12/2017 | | | | | 1,157,000 | | | | 931,385 | | | | 0.40 | |
Petroleos de Venezuela S.A. 8.500%, 10/27/2020(2) | | | | | 9,402,000 | | | | 6,816,450 | | | | 2.92 | |
Petroleos de Venezuela S.A. 9.750%, 05/17/2035 | | | | | 7,230,000 | | | | 3,219,158 | | | | 1.38 | |
| | | | | | | | | 10,966,993 | | | | 4.70 | |
Total Debt Securities (Cost $219,136,428) | | | | | | | | | 209,984,975 | | | | 89.94 | |
See accompanying notes to the financial statements.
91
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Par | | | Value | | | % of Net
Assets | |
Bank Loans | | | | | | | | | | | | | | | | |
| | | | |
China (Cost $39,677) | | | | | | | | | | | | | | | | |
Far East Energy Bermuda Ltd. 10.000%, 03/29/2016(4)(6) | | | | | | | 89,943 | | | $ | — | | | | — | |
Far East Energy Bermuda Ltd. 25.000%, 03/29/2016(4)(6) | | | | | | | 39,677 | | | | — | | | | — | |
| | | | | | | | | | | — | | | | — | |
Czech Republic (Cost $368,571) | | | | | | | | | | | | | | | | |
New World Resources N.V. 8.500%, 10/07/2016(6) | | | EUR | | | | 312,666 | | | | — | | | | — | |
| | | | | | | | | | | — | | | | — | |
Nigeria (Cost $1,142,138) | | | | | | | | | | | | | | | | |
Seven Energy Ltd., FRN 10.250%, 06/30/2020 | | | | | | | 1,206,059 | | | | 507,510 | | | | 0.22 | |
| | | | | | | | | | | 507,510 | | | | 0.22 | |
Sierra Leone (Cost $1,086,217) | | | | | | | | | | | | | | | | |
Africell Holding SAL, FRN 8.630%, 04/16/2019 | | | | | | | 1,125,000 | | | | 1,109,250 | | | | 0.48 | |
| | | | | | | | | | | 1,109,250 | | | | 0.48 | |
United Arab Emirates (Cost $12,199,004) | | | | | | | | | | | | | | | | |
DP World Ltd. 3.750%, 09/30/2022 | | | | | | | 9,311,917 | | | | 7,775,451 | | | | 3.33 | |
DP World Ltd. 4.750%, 09/30/2022 | | | | | | | 442,607 | | | | 370,683 | | | | 0.16 | |
Dubai Drydocks World LLC, FRN 4.000%, 10/18/2017 | | | EUR | | | | 1,117,617 | | | | 978,424 | | | | 0.42 | |
Dubai Drydocks World LLC, FRN 4.630%, 10/18/2017 | | | | | | | 1,796,334 | | | | 1,432,576 | | | | 0.61 | |
Dubai Drydocks World LLC 0.100%, 10/18/2027 | | | | | | | 6,758,421 | | | | 1,334,788 | | | | 0.57 | |
| | | | | | | | | | | 11,891,922 | | | | 5.09 | |
Total Bank Loans (Cost $14,835,607) | | | | | | | | | | | 13,508,682 | | | | 5.79 | |
| | | | |
| | | | | | | | | | | | % of Net | |
| | | Currency(1) | | | Shares | | | Value | | | Assets | |
Equity Securities | | | | | | | | | | | | | | | | |
| | | | |
Czech Republic (Cost $1,093,253) | | | | | | | | | | | | | | | | |
New World Resources PLC | | | GBP | | | | 36,580,138 | | | $ | 1 | | | | — | |
| | | | | | | | | | | 1 | | | | — | |
Mexico (Cost $2,989) | | | | | | | | | | | | | | | | |
Corp. GEO S.A.B. de C.V. | | | MXN | | | | 7,952 | | | | 3,071 | | | | — | |
| | | | | | | | | | | 3,071 | | | | — | |
Total Equity Securities (Cost $1,096,242) | | | | | | | | | | | 3,072 | | | | — | |
See accompanying notes to the financial statements.
92
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | | | | Number | | | | | | | |
| | | | | | of | | | | | | % of Net | |
| | | Currency(1) | | | Warrants | | | Value | | | Assets | |
Warrants | | | | | | | | | | | | | | | | |
| | | | |
China (Cost $3,926) | | | | | | | | | | | | | | | | |
Far East Energy Bermuda Ltd., Exp. 12/31/2017, Strike Price $11.92(2)(5)(6) | | | | | | | 186,955 | | | $ | — | | | | — | |
| | | | |
Mexico (Cost $—) | | | | | | | | | | | | | | | | |
Corp. GEO S.A.B. de C.V., Exp. 07/31/2022, Strike Price $9.75(6) | | | MXN | | | | 13,777 | | | | — | | | | — | |
| | | | |
Total Warrants (Cost $3,926) | | | | | | | | | | | — | | | | — | |
| | | | |
Total Investments (Total Cost $235,072,203) | | | | | | | | | | | 223,496,729 | | | | 95.73 | |
| | | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for further detail) | | | | | | | | | | | 9,969,324 | | | | 4.27 | |
| | | | |
Net Assets | | | | | | | | | | $ | 233,466,053 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | 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. |
| (3) | Issuer has defaulted on terms of debt obligation. |
| (4) | Maturity has been extended under the terms of a plan of reorganization. |
| (5) | Restricted security that has been deemed illiquid. At October 31, 2016, the value of these restricted illiquid securities amounted to $0 or 0.0% of net assets. Additional information on each restricted illiquid security is as follows: |
| | | | | | |
| SECURITY | | ACQUISITION DATE | | ACQUISITION COST | |
Far East Energy Bermuda Ltd. 13.000%, 01/15/2016 | | 01/14/2013-07/24/2015 | | | $279,057 | |
Far East Energy Bermuda Ltd., Exp. 12/31/2017, | | | | | | |
Strike Price $11.92 | | 01/14/2013 | | | 3,926 | |
New World Resources N.V., 16.697%, 10/07/2020 | | 10/07/2014 | | | — | |
| (6) | Security has been deemed worthless and is a Level 3 investment. |
| (7) | Security is a payment in-kind bond, and unless otherwise noted in the description of the security, pays its entire coupon on an in-kind basis. |
| (8) | Zero coupon bond - interest rate reflects effective yield on the date of purchase. |
| (9) | All or a portion of security is held as collateral for reverse repurchase agreements. |
Percentages shown are based on net assets.
See accompanying notes to the financial statements.
93
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
At October 31, 2016, the Ashmore Emerging Markets Corporate Debt Fund had outstanding forward foreign currency exchange contracts as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Currency Buy | | | | | | Currency Sell | | | | |
| | | | | | | | | Amount | | | | | | Amount | | | | |
| Settlement | | | | | Currency | | | (Local | | | Currency | | | (Local | | | Unrealized | |
| Date | | Counterparty | | | Buy | | | Currency) | | | Sell | | | Currency) | | | Gain/(Loss) | |
11/25/2016 | | | Morgan Stanley | | | | United States Dollar | | | | 942,843 | | | | British Pound | | | | 767,587 | | | | $2,862 | |
11/25/2016 | | | Deutsche Bank | | | | United States Dollar | | | | 4,640,501 | | | | Euro | | | | 4,210,079 | | | | 14,255 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | | $17,117 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
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, 2016:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Debt Securities | | | | | | | | | | | | | | | | |
Corporate Bonds | | $ | — | | | $ | 201,868,462 | | | $ | 4,800 | | | $ | 201,873,262 | |
Corporate Convertible Bonds | | | — | | | | 877,652 | | | | — | | | | 877,652 | |
Government Agencies | | | — | | | | 4,150,543 | | | | — | | | | 4,150,543 | |
Financial Certificates | | | — | | | | 3,083,518 | | | | — | | | | 3,083,518 | |
| | | | | | | | | | | | | | | | |
Total Debt Securities | | | — | | | | 209,980,175 | | | | 4,800 | | | | 209,984,975 | |
Bank Loans | | | | | | | | | | | | | | | | |
Nigeria | | | — | | | | 507,510 | | | | — | | | | 507,510 | |
Sierra Leone | | | — | | | | — | | | | 1,109,250 | | | | 1,109,250 | |
United Arab Emirates | | | — | | | | — | | | | 11,891,922 | | | | 11,891,922 | |
| | | | | | | | | | | | | | | | |
Total Bank Loans | | | — | | | | 507,510 | | | | 13,001,172 | | | | 13,508,682 | |
Common Stock | | | | | | | | | | | | | | | | |
Czeck Republic | | | — | | | | — | | | | 1 | | | | 1 | |
Mexico | | | 3,071 | | | | — | | | | — | | | | 3,071 | |
| | | | | | | | | | | | | | | | |
Total Common Stock | | | 3,071 | | | | — | | | | 1 | | | | 3,072 | |
Warrants | | | — | | | | — | | | | — | | | | — | |
| |
Total Investments | | $ | 3,071 | | | $ | 210,487,685 | | | $ | 13,005,973 | | | $ | 223,496,729 | |
| |
| | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange | | | | | | | | | | | | | | | | |
Contracts | | $ | — | | | | $17,117 | | | $ | — | | | | $17,117 | |
| |
See accompanying notes to the financial statements.
94
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2016, the Fund had transfers as disclosed below.
Transfers from Level 1 to Level 3
| | | | | | |
| Country | | Value | | | Reason |
Common Stocks | | | | | | |
Czech Republic | | $ | 1 | | | Asset suspended during the current period. |
|
Transfers from Level 2 to Level 3
| | | | | | |
| Country | | Value | | | Reason |
Corporate Bonds | | | | | | |
China | | $ | 4,800 | | | Move to broker quote pricing during the current period. |
Bank Loans | | | | | | |
United Arab Emirates | | | 10,557,135 | | | Move to broker quote pricing during the current period. |
|
Total | | $ | 10,561,935 | | | |
|
Transfers from Level 3 to Level 2
| | | | | | |
| Country | | Value | | | Reason |
Corporate Bonds | | | | | | |
Russian Federation | | $ | 1,233,240 | | | Security was fair valued in prior period. |
|
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 10/31/2015
| | | Accrued
Discounts (Premiums) | | | Purchases | | | Sales | | | Realized
Gains
(Losses) | | | Change in Unrealized Appreciation/ (Depreciation) | | | Transfer into Level 3 | | | Transfer out of Level 3 | | | Ending
Balance at 10/31/2016
| | | Change in
Unrealized
Appreciation
(Depreciation)
from
Investments
still held at 10/31/2016 | |
| Investments, at value Corporate Bonds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
China | | $ | 150,074 | | | | $ (2,927) | | | | $ — | | | $ | — | | | $ | — | | | | $(147,147) | | | $ | 4,800 | | | $ | — | | | | $ 4,800 | | | | $ (150,627) | |
Czech Republic | | | 494,841 | | | | — | | | | — | | | | (177,266 | ) | | | (23,974 | ) | | | (293,601) | | | | — | | | | — | | | | — | | | | (1,218,987) | |
Russian Federation | | | 210,330 | | | | 13,602 | | | | 599,554 | | | | (49,937 | ) | | | (126,113 | ) | | | 585,804 | | | | — | | | | (1,233,240 | ) | | | — | | | | — | |
Bank Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
China | | | 78,586 | | | | — | | | | — | | | | — | | | | — | | | | (78,586) | | | | — | | | | — | | | | — | | | | (78,586) | |
Sierra Leone | | | 1,101,263 | | | | 13,237 | | | | — | | | | — | | | | — | | | | (5,250) | | | | — | | | | — | | | | 1,109,250 | | | | (5,250) | |
Ukraine | | | 120,000 | | | | — | | | | — | | | | (120,000 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
United Arab Emirates | | | 997,930 | | | | 179,795 | | | | 801,175 | | | | (584,576 | ) | | | (736 | ) | | | (58,801) | | | | 10,557,135 | | | | — | | | | 11,891,922 | | | | (55,326) | |
Common Stock | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Czech Republic | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 1 | | | | — | | | | 1 | | | | (273,500 | ) |
Warrants | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
China | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Mexico | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| |
Total | | $ | 3,153,024 | | | | $203,707 | | | | $1,400,729 | | | $ | (931,779 | ) | | $ | (150,823 | ) | | | $2,419 | | | $ | 10,561,936 | | | $ | (1,233,240 | ) | | | $13,005,973 | | | | $(1,782,276) | |
| |
See accompanying notes to the financial statements.
95
ASHMORE EMERGING MARKETS CORPORATE DEBT FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
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, 2016.
| | | | | | | | | | | | | | | | |
| Quantitative Information about Level 3 Fair Value Measurements | |
| | | Fair Value at | | | Valuation | | | Unobservable | | | | |
| | | 10/31/2016 | | | Technique | | | Input | | | Actual | |
Corporate Bonds | | | $4,800 | | | | Broker quote | | | | Inputs to broker model | | | | N/A | |
Bank Loans | | | 13,001,172 | | |
| Broker quote
Discount from |
| | | Inputs to broker model | | | | N/A | |
Common Stock | | | 1 | | | | last traded price | | | | Discount percentage | | | | 100% | |
| |
Total | | $ | 13,005,973 | | | | | | | | | | | | | |
| |
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, 2016:
| | | | |
| | | Derivatives Not Accounted | |
| | | for as Hedging Instruments | |
| | | Foreign Exchange | |
Assets: | | | | |
Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | | $ 17,117 | |
The Effect of Financial Derivative Instruments on the Statements of Operations for the Year Ended October 31, 2016:
| | | | |
| | | 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 | | | $ 184,957 | |
| | | | |
| |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized resulting from Operations: | | | | |
Net Change in Unrealized Depreciation on Forward Foreign Currency Exchange Contracts | | | $ (224,285) | |
| | | | |
* See note 10 in the Notes to the Financial Statements for additional information.
At October 31, 2016, 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 | | $ | 238,423,385 | |
| |
Gross tax appreciation of investments | | | 6,040,244 | |
Gross tax depreciation of investments | | | (20,966,900) | |
| |
Net tax depreciation of investments | | | $(14,926,656) | |
| |
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.
96
ASHMORE EMERGING MARKETS SHORT DURATION FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | % of Net | |
| | | Currency(1) | | | Par | | | Value | | | Assets | |
Debt Securities | | | | | | | | | | | | | | | | |
| | | | |
Angola (Cost $3,500,019) | | | | | | | | | | | | | | | | |
Angola (Rep of) Via Northern Lights III B.V. 7.000%, 08/16/2019 | | | | | | | 3,525,000 | | | $ | 3,521,933 | | | | 2.70 | |
| | | | | | | | | | | 3,521,933 | | | | 2.70 | |
| | | | |
Argentina (Cost $2,779,009) | | | | | | | | | | | | | | | | |
YPF S.A. 8.500%, 03/23/2021 | | | | | | | 2,600,000 | | | | 2,859,220 | | | | 2.19 | |
| | | | | | | | | | | 2,859,220 | | | | 2.19 | |
| | | | |
Azerbaijan (Cost $860,425) | | | | | | | | | | | | | | | | |
International Bank of Azerbaijan OJSC 5.625%, 06/11/2019 | | | | | | | 900,000 | | | | 896,688 | | | | 0.69 | |
| | | | | | | | | | | 896,688 | | | | 0.69 | |
| | | | |
Bangladesh (Cost $460,199) | | | | | | | | | | | | | | | | |
Banglalink Digital Communications Ltd. 8.625%, 05/06/2019 | | | | | | | 450,000 | | | | 478,125 | | | | 0.37 | |
| | | | | | | | | | | 478,125 | | | | 0.37 | |
| | | | |
Barbados (Cost $2,784,226) | | | | | | | | | | | | | | | | |
Columbus Cable Barbados Ltd. 7.375%, 03/30/2021 | | | | | | | 2,630,000 | | | | 2,814,100 | | | | 2.16 | |
| | | | | | | | | | | 2,814,100 | | | | 2.16 | |
| | | | |
Belarus (Cost $291,329) | | | | | | | | | | | | | | | | |
Belarus (Rep of) 8.950%, 01/26/2018 | | | | | | | 300,000 | | | | 314,876 | | | | 0.24 | |
| | | | | | | | | | | 314,876 | | | | 0.24 | |
| | | | |
Brazil (Cost $25,855,727) | | | | | | | | | | | | | | | | |
Andrade Gutierrez International S.A. 4.000%, 04/30/2018 | | | | | | | 1,580,000 | | | | 1,287,700 | | | | 0.99 | |
Braskem Finance Ltd. 5.750%, 04/15/2021 | | | | | | | 600,000 | | | | 622,320 | | | | 0.48 | |
Itau Unibanco Holding S.A. 5.750%, 01/22/2021 | | | | | | | 800,000 | | | | 830,000 | | | | 0.64 | |
Marfrig Holdings Europe B.V. 6.875%, 06/24/2019 | | | | | | | 3,500,000 | | | | 3,613,750 | | | | 2.77 | |
Marfrig Holdings Europe B.V. 11.250%, 09/20/2021 | | | | | | | 500,000 | | | | 498,750 | | | | 0.38 | |
Petrobras Global Finance B.V. 5.875%, 03/01/2018 | | | | | | | 525,000 | | | | 542,430 | | | | 0.42 | |
Petrobras Global Finance B.V. 3.000%, 01/15/2019 | | | | | | | 2,300,000 | | | | 2,251,700 | | | | 1.73 | |
Petrobras Global Finance B.V. 7.875%, 03/15/2019 | | | | | | | 500,000 | | | | 537,500 | | | | 0.41 | |
Petrobras Global Finance B.V. 5.750%, 01/20/2020 | | | | | | | 4,760,000 | | | | 4,912,320 | | | | 3.76 | |
Petrobras Global Finance B.V. 5.375%, 01/27/2021 | | | | | | | 3,300,000 | | | | 3,267,660 | | | | 2.50 | |
QGOG Atlantic/Alaskan Rigs Ltd. 5.250%, 07/30/2018 | | | | | | | 2,368,306 | | | | 2,119,634 | | | | 1.62 | |
QGOG Constellation S.A. 6.250%, 11/09/2019 | | | | | | | 1,500,000 | | | | 716,250 | | | | 0.55 | |
Vale Overseas Ltd. 5.625%, 09/15/2019 | | | | | | | 875,000 | | | | 931,875 | | | | 0.71 | |
Vale Overseas Ltd. 4.625%, 09/15/2020 | | | | | | | 1,300,000 | | | | 1,337,375 | | | | 1.02 | |
Vale Overseas Ltd. 5.875%, 06/10/2021 | �� | | | | | | 3,400,000 | | | | 3,625,250 | | | | 2.78 | |
| | | | | | | | | | | 27,094,514 | | | | 20.76 | |
| | | | |
Chile (Cost $450,733) | | | | | | | | | | | | | | | | |
Corp. Nacional del Cobre de Chile 7.500%, 01/15/2019 | | | | | | | 400,000 | | | | 446,386 | | | | 0.34 | |
| | | | | | | | | | | 446,386 | | | | 0.34 | |
| | | | |
China (Cost $4,397,101) | | | | | | | | | | | | | | | | |
China Hongqiao Group Ltd. 6.875%, 05/03/2018 | | | | | | | 400,000 | | | | 409,012 | | | | 0.31 | |
CIFI Holdings Group Co. Ltd. 7.750%, 06/05/2020 | | | | | | | 300,000 | | | | 323,978 | | | | 0.25 | |
ICBC Standard Bank PLC 8.125%, 12/02/2019 | | | | | | | 600,000 | | | | 680,250 | | | | 0.52 | |
Kaisa Group Holdings Ltd. 6.560%, 12/31/2019(2) | | | | | | | 1,210,000 | | | | 1,128,083 | | | | 0.87 | |
Kaisa Group Holdings Ltd. 6.560%, 06/30/2020(2) | | | | | | | 2,180,000 | | | | 2,033,787 | | | | 1.56 | |
| | | | | | | | | | | 4,575,110 | | | | 3.51 | |
| | | | |
Colombia (Cost $1,933,245) | | | | | | | | | | | | | | | | |
Millicom International Cellular S.A. 6.625%, 10/15/2021 | | | | | | | 1,885,000 | | | | 1,972,276 | | | | 1.51 | |
| | | | | | | | | | | 1,972,276 | | | | 1.51 | |
See accompanying notes to the financial statements.
97
ASHMORE EMERGING MARKETS SHORT DURATION FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | % of Net | |
| | | Currency(1) | | | Par | | | Value | | | Assets | |
Dominican Republic (Cost $1,154,901) | | | | | | | | | | | | | | | | |
Aeropuertos Dominicanos Siglo XXI S.A., FRN 9.750%, 11/13/2019 | | | | | | | 1,110,000 | | | $ | 1,162,725 | | | | 0.89 | |
| | | | | | | | | | | 1,162,725 | | | | 0.89 | |
| | | | |
Ecuador (Cost $13,594,952) | | | | | | | | | | | | | | | | |
Ecuador (Rep of) 10.500%, 03/24/2020 | | | | | | | 6,910,000 | | | | 7,290,050 | | | | 5.59 | |
EP PetroEcuador via Noble Sovereign Funding I Ltd., FRN 6.487%, 09/24/2019 | | | | | | | 7,841,053 | | | | 7,743,039 | | | | 5.93 | |
| | | | | | | | | | | 15,033,089 | | | | 11.52 | |
| | | | |
Jamaica (Cost $7,047,903) | | | | | | | | | | | | | | | | |
Digicel Group Ltd. 8.250%, 09/30/2020 | | | | | | | 8,000,000 | | | | 7,080,000 | | | | 5.42 | |
| | | | | | | | | | | 7,080,000 | | | | 5.42 | |
| | | | |
Kazakhstan (Cost $11,959,982) | | | | | | | | | | | | | | | | |
Halyk Savings Bank of Kazakhstan JSC 7.250%, 01/28/2021 | | | | | | | 1,000,000 | | | | 1,085,400 | | | | 0.83 | |
Kazkommertsbank JSC 7.500%, 11/29/2016 | | | | | | | 1,175,000 | | | | 1,157,375 | | | | 0.89 | |
Kazkommertsbank JSC 6.875%, 02/13/2017 | | | EUR | | | | 2,355,000 | | | | 2,535,772 | | | | 1.94 | |
Kazkommertsbank JSC 8.500%, 05/11/2018 | | | | | | | 1,205,000 | | | | 1,189,938 | | | | 0.91 | |
Zhaikmunai LLP 6.375%, 02/14/2019 | | | | | | | 3,500,000 | | | | 3,242,575 | | | | 2.49 | |
Zhaikmunai LLP 7.125%, 11/13/2019 | | | | | | | 3,260,000 | | | | 3,007,350 | | | | 2.30 | |
| | | | | | | | | | | 12,218,410 | | | | 9.36 | |
| | | | |
Mexico (Cost $475,776) | | | | | | | | | | | | | | | | |
Cemex S.A.B. de C.V. 6.500%, 12/10/2019 | | | | | | | 450,000 | | | | 480,375 | | | | 0.37 | |
| | | | | | | | | | | 480,375 | | | | 0.37 | |
| | | | |
Nigeria (Cost $1,067,622) | | | | | | | | | | | | | | | | |
GTB Finance B.V. 6.000%, 11/08/2018 | | | | | | | 1,100,000 | | | | 1,091,750 | | | | 0.84 | |
| | | | | | | | | | | 1,091,750 | | | | 0.84 | |
| | | | |
Russian Federation (Cost $17,640,662) | | | | | | | | | | | | | | | | |
Alfa Bank AO Via Alfa Bond Issuance PLC 7.500%, 09/26/2019 | | | | | | | 1,120,000 | | | | 1,212,960 | | | | 0.93 | |
Credit Bank of Moscow Via CBOM Finance PLC 7.700%, 02/01/2018 | | | | | | | 850,000 | | | | 886,295 | | | | 0.68 | |
Credit Bank of Moscow Via CBOM Finance PLC 8.700%, 11/13/2018 | | | | | | | 3,510,000 | | | | 3,633,973 | | | | 2.79 | |
GTH Finance B.V. 6.250%, 04/26/2020 | | | | | | | 5,500,000 | | | | 5,742,660 | | | | 4.40 | |
Lukoil International Finance B.V. 6.125%, 11/09/2020 | | | | | | | 200,000 | | | | 217,032 | | | | 0.17 | |
Metalloinvest Finance DAC 5.625%, 04/17/2020 | | | | | | | 200,000 | | | | 208,000 | | | | 0.16 | |
Sistema JSFC via Sistema International Funding S.A. 6.950%, 05/17/2019 | | | | | | | 845,000 | | | | 902,038 | | | | 0.69 | |
TMK OAO Via TMK Capital S.A. 6.750%, 04/03/2020 | | | | | | | 2,690,000 | | | | 2,823,155 | | | | 2.16 | |
Vimpel Communications Via VIP Finance Ireland Ltd. OJSC 7.748%, 02/02/2021 | | | | | | | 970,000 | | | | 1,071,646 | | | | 0.82 | |
VimpelCom Holdings B.V. 5.200%, 02/13/2019 | | | | | | | 600,000 | | | | 618,000 | | | | 0.47 | |
Vnesheconombank Via VEB Finance PLC 5.450%, 11/22/2017 | | | | | | | 274,000 | | | | 280,882 | | | | 0.22 | |
Vnesheconombank Via VEB Finance PLC 4.224%, 11/21/2018 | | | | | | | 400,000 | | | | 404,672 | | | | 0.31 | |
| | | | | | | | | | | 18,001,313 | | | | 13.80 | |
| | | | |
South Africa (Cost $3,712,722) | | | | | | | | | | | | | | | | |
Eskom Holdings SOC Ltd. 5.750%, 01/26/2021 | | | | | | | 3,870,000 | | | | 3,889,350 | | | | 2.98 | |
| | | | | | | | | | | 3,889,350 | | | | 2.98 | |
| | | | |
Ukraine (Cost $4,720,331) | | | | | | | | | | | | | | | | |
Ferrexpo Finance PLC 10.375%, 04/07/2019 | | | | | | | 1,920,000 | | | | 1,926,336 | | | | 1.48 | |
See accompanying notes to the financial statements.
98
ASHMORE EMERGING MARKETS SHORT DURATION FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | % of Net | |
| | | Currency(1) | | | Par | | | Value | | | Assets | |
Ukraine - (continued) | | | | | | | | | | | | | | | | |
Metinvest B.V., FRN 10.500%, 11/28/2017 | | | | | | | 158,341 | | | $ | 134,793 | | | | 0.10 | |
MHP S.A. 8.250%, 04/02/2020 | | | | | | | 3,000,000 | | | | 2,936,940 | | | | 2.25 | |
| | | | | | | | | | | 4,998,069 | | | | 3.83 | |
| | | | |
United Arab Emirates (Cost $223,656) | | | | | | | | | | | | | | | | |
Topaz Marine S.A. 8.625%, 11/01/2018 | | | | | | | 240,000 | | | | 232,718 | | | | 0.18 | |
| | | | | | | | | | | 232,718 | | | | 0.18 | |
| | | | |
Venezuela (Cost $12,026,182) | | | | | | | | | | | | | | | | |
Petroleos de Venezuela S.A. 5.250%, 04/12/2017 | | | | | | | 994,900 | | | | 800,895 | | | | 0.61 | |
Petroleos de Venezuela S.A. 8.500%, 10/27/2020(3) | | | | | | | 15,291,000 | | | | 11,085,975 | | | | 8.50 | |
| | | | | | | | | | | 11,886,870 | | | | 9.11 | |
| | | | |
Vietnam (Cost $899,610) | | | | | | | | | | | | | | | | |
Vingroup JSC 11.625%, 05/07/2018 | | | | | | | 850,000 | | | | 899,300 | | | | 0.69 | |
| | | | | | | | | | | 899,300 | | | | 0.69 | |
Total Debt Securities (Cost $117,836,312) | | | | | | | | | | | 121,947,197 | | | | 93.46 | |
| | | | |
Bank Loans | | | | | | | | | | | | | | | | |
| | | | |
United Arab Emirates (Cost $3,639,962) | | | | | | | | | | | | | | | | |
DP World Ltd. 3.750%, 09/30/2022 | | | | | | | 4,334,599 | | | | 3,619,390 | | | | 2.78 | |
| | | | |
Total Bank Loans (Cost $3,639,962) | | | | | | | | | | | 3,619,390 | | | | 2.78 | |
| | | | |
Total Investments (Total Cost $121,476,274) | | | | | | | | | | | 125,566,587 | | | | 96.24 | |
| | | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for further detail) | | | | | | | | | | | 4,909,090 | | | | 3.76 | |
| | | | |
Net Assets | | | | | | | | | | $ | 130,475,677 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | Security is a payment in-kind bond, and unless otherwise noted in the description of the security, pays its entire coupon on an in-kind basis. |
| (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, 2016, the Ashmore Emerging Markets Short Duration Fund had outstanding forward foreign currency exchange contracts as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Currency | | | | | | Currency | | | | |
| | | | | | | | | Buy | | | | | | Sell | | | | |
| | | | | | | | | Amount | | | | | | Amount | | | | |
| Settlement | | | | | Currency | | | (Local | | | Currency | | | (Local | | | Unrealized | |
| Date | | Counterparty | | | Buy | | | Currency) | | | Sell | | | Currency) | | | Gain/(Loss) | |
11/25/2016 | | | Deutsche Bank | | | | United States Dollar | | | | 2,613,144 | | | | Euro | | | | 2,370,766 | | | | $8,027 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | | | | | $8,027 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes to the financial statements.
99
ASHMORE EMERGING MARKETS SHORT DURATION FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
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, 2016:
| | | | | | | | | | | | | | | | | | | | |
| | | Level 1 | | Level 2 | | Level 3 | | Total |
Investments | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | |
Debt Securities | | | | | | | | | | | | | | | | | | | | |
Corporate Bonds | | | | $— | | | | $ | 105,725,421 | | | | $ | — | | | | $ | 105,725,421 | |
Government Agencies | | | | — | | | | | 5,094,917 | | | | | — | | | | | 5,094,917 | |
Government Bonds | | | | — | | | | | 11,126,859 | | | | | — | | | | | 11,126,859 | |
| | | | | | | | | | | | | | | | | | | | |
Total Debt Securities | | | | — | | | | | 121,947,197 | | | | | — | | | | | 121,947,197 | |
Bank Loans | | | | — | | | | | — | | | | | 3,619,390 | | | | | 3,619,390 | |
Total Investments | | | | $— | | | | $ | 121,947,197 | | | | $ | 3,619,390 | | | | $ | 125,566,587 | |
| | | | |
Other Financial Instruments | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | |
Forward Foreign Currency Exchange Contracts | | | | $— | | | | $ | 8,027 | | | | $ | — | | | | $ | 8,027 | |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2016 the Fund had a transfer into Level 3 as disclosed below.
Transfers from Level 2 to Level 3
| | | | | | | |
| Country | | Value | | Reason |
Bank Loans | | | | | | | |
United Arab Emirates | | | | $3,619,390 | | | Move to broker quote pricing during the current period. |
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used for the Fund during the period ending October 31, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Category and Subcategory | | Beginning
Balance at 10/31/2015 | | Purchases | | Sales | | Realized
Gains
(Losses) | | Change in
Unrealized Appreciation
(Depreciation) | | Transfer
into Level 3 | | Transfer
out of
Level 3 | | Ending
Balance
at 10/31/2016 | | Change in
Unrealized
Appreciation
(Depreciation)
from Investments
still held
at 10/31/2016 |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bank Loans | | | | $— | | | | | $— | | | | | $— | | | | | $ — | | | | | $— | | | | | $3,619,390 | | | | | $— | | | | | $3,619,390 | | | | | $127,571 | |
Total | | | | $— | | | | | $— | | | | | $— | | | | | $ — | | | | | $— | | | | | $3,619,390 | | | | | $— | | �� | | | $3,619,390 | | | | | $127,571 | |
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, 2016.
| | | | | | | | | | | | |
Quantitative Information about Level 3 Fair Value Measurements | |
| | | Fair Value at | | | Valuation | | | Unobservable | |
| | | 10/31/2016 | | | Technique | | | Input | |
Bank Loans | | $ | 3,619,390 | | | | Broker quote | | | | Inputs to broker model | |
See accompanying notes to the financial statements.
100
ASHMORE EMERGING MARKETS SHORT DURATION FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
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, 2016:
| | | | |
| | | Derivatives Not Accounted | |
| | | for as Hedging Instruments | |
| | | Foreign Exchange | |
Assets: | | | | |
Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | | $8,027 | |
The Effect of Financial Derivative Instruments on the Statements of Operations for the Year Ended October 31, 2016:
| | | | | |
| | | 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 | | | | $ 233,265 | |
| | | | | |
| |
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized resulting from Operations: | | | | | |
Net Change in Unrealized Appreciation on Forward Foreign Currency Exchange Contracts | | | | $ 8,027 | |
| | | | | |
* See note 10 in the Notes to the Financial Statements for additional information.
At October 31, 2016, 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 | | $ | 121,478,648 | |
| |
Gross tax appreciation of investments | | | 4,508,656 | |
Gross tax depreciation of investments | | | (420,717) | |
| |
Net tax appreciation of investments | | | $4,087,939 | |
| |
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.
101
ASHMORE EMERGING MARKETS EQUITY OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | % of Net | |
| | | Currency(1) | | | Shares | | | Value | | | Assets | |
Investment Companies | | | | | | | | | | | | | | | | |
Ashmore Emerging Markets Frontier Equity Fund(2) | | | | | | | 121,434 | | | $ | 1,100,191 | | | | 19.81 | |
Ashmore Emerging Markets Small-Cap Equity Fund(2) | | | | | | | 224,214 | | | | 2,452,903 | | | | 44.17 | |
Ashmore Emerging Markets Value Fund(2) | | | | | | | 232,709 | | | | 1,873,308 | | | | 33.73 | |
Total Investment Companies (Cost $5,061,856) | | | | | | | | | | | 5,426,402 | | | | 97.71 | |
| | | | |
Total Investments (Total Cost $5,061,856) | | | | | | | | | | | 5,426,402 | | | | 97.71 | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for further detail) | | | | | | | | | | | 127,291 | | | | 2.29 | |
| | | | |
Net Assets | | | | | | | | | | $ | 5,553,693 | | | | 100.00 | |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | Investment in affiliated fund. |
Percentages shown are based on net assets.
At October 31, 2016, the Fund’s percentages of ownership of other funds were as follows:
| | | | |
| Ashmore Mutual Fund | | Percentage | | |
Emerging Markets Frontier Equity Fund | | 2.1% | |
Emerging Markets Small-Cap Equity Fund | | 7.3% | |
Emerging Markets Value Fund | | 20.7% | |
| |
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 Opportunities Fund’s investments, which are carried at fair value, as of October 31, 2016:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Investment Companies | | | $— | | | $ | 5,426,402 | | | | $— | | | $ | 5,426,402 | |
| |
Total Investments | | | $— | | | $ | 5,426,402 | | | | $— | | | $ | 5,426,402 | |
| |
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 23, 2015 through October 31, 2016, there were no transfers between Level 1, Level 2 and Level 3 classifications.
See accompanying notes to the financial statements.
102
ASHMORE EMERGING MARKETS EQUITY OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
At October 31, 2016, 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 | | $ | 5,061,988 | |
| |
Gross tax appreciation of investments | | | 364,414 | |
Gross tax depreciation of investments | | | — | |
| |
Net tax depreciation of investments | | | $364,414 | |
| |
See accompanying notes to the financial statements.
103
ASHMORE EMERGING MARKETS SMALL-CAP EQUITY FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Shares | | | Value | | | % of Net
Assets | |
Common Stock | | | | | | | | | | | | | | | | |
| | | | |
Argentina (Cost $2,590,638) | | | | | | | | | | | | | | | | |
Adecoagro S.A.* | | | | | | | 84,153 | | | $ | 925,683 | | | | 2.70 | |
Grupo Supervielle S.A. ADR* | | | | | | | 50,600 | | | | 768,108 | | | | 2.24 | |
IRSA Inversiones y Representaciones S.A. ADR | | | | | | | 30,861 | | | | 578,335 | | | | 1.68 | |
Pampa Energia S.A. ADR* | | | | | | | 20,573 | | | | 700,922 | | | | 2.04 | |
| | | | | | | | | | | 2,973,048 | | | | 8.66 | |
Brazil (Cost $2,102,294) | | | | | | | | | | | | | | | | |
Cosan S.A. Industria e Comercio | | | BRL | | | | 37,800 | | | | 508,263 | | | | 1.48 | |
Iochpe-Maxion S.A. | | | BRL | | | | 65,800 | | | | 333,947 | | | | 0.97 | |
Rumo Logistica Operadora Multimodal S.A.* | | | BRL | | | | 404,900 | | | | 905,697 | | | | 2.64 | |
SLC Agricola S.A. | | | BRL | | | | 93,600 | | | | 463,602 | | | | 1.35 | |
Tupy S.A.* | | | BRL | | | | 73,300 | | | | 304,269 | | | | 0.89 | |
| | | | | | | | | | | 2,515,778 | | | | 7.33 | |
Chile (Cost $1,191,947) | | | | | | | | | | | | | | | | |
Cia Sud Americana de Vapores S.A.* | | | CLP | | | | 9,299,655 | | | | 189,632 | | | | 0.55 | |
Vina Concha y Toro S.A. | | | CLP | | | | 387,980 | | | | 677,103 | | | | 1.97 | |
| | | | | | | | | | | 866,735 | | | | 2.52 | |
China (Cost $8,931,777) | | | | | | | | | | | | | | | | |
Bitauto Holdings Ltd. ADR* | | | | | | | 18,727 | | | | 478,100 | | | | 1.39 | |
Boer Power Holdings Ltd. | | | HKD | | | | 559,000 | | | | 224,161 | | | | 0.65 | |
China Lesso Group Holdings Ltd. | | | HKD | | | | 973,000 | | | | 713,859 | | | | 2.08 | |
China Machinery Engineering Corp., Class H | | | HKD | | | | 555,000 | | | | 332,046 | | | | 0.97 | |
China State Construction International Holdings Ltd. | | | HKD | | | | 254,000 | | | | 371,393 | | | | 1.08 | |
Far East Horizon Ltd. | | | HKD | | | | 483,000 | | | | 440,928 | | | | 1.28 | |
Greatview Aseptic Packaging Co. Ltd. | | | HKD | | | | 655,000 | | | | 332,755 | | | | 0.97 | |
Huadian Fuxin Energy Corp. Ltd., Class H | | | HKD | | | | 1,116,000 | | | | 259,015 | | | | 0.76 | |
Ju Teng International Holdings Ltd. | | | HKD | | | | 1,969,000 | | | | 624,551 | | | | 1.82 | |
Li Ning Co. Ltd.* | | | HKD | | | | 530,000 | | | | 378,593 | | | | 1.10 | |
Minth Group Ltd. | | | HKD | | | | 142,000 | | | | 505,341 | | | | 1.47 | |
Nexteer Automotive Group Ltd. | | | HKD | | | | 353,000 | | | | 465,171 | | | | 1.36 | |
Nine Dragons Paper Holdings Ltd. | | | HKD | | | | 202,000 | | | | 164,610 | | | | 0.48 | |
Noah Holdings Ltd. ADR* | | | | | | | 5,700 | | | | 134,292 | | | | 0.39 | |
Rici Healthcare Holdings Ltd.* | | | HKD | | | | 975,000 | | | | 274,062 | | | | 0.80 | |
Shenzhen Investment Ltd. | | | HKD | | | | 1,552,000 | | | | 678,389 | | | | 1.98 | |
Sinovac Biotech Ltd.* | | | | | | | 29 | | | | 180 | | | | — | |
Sunac China Holdings Ltd. | | | HKD | | | | 494,000 | | | | 338,228 | | | | 0.99 | |
Tarena International, Inc. ADR | | | | | | | 44,728 | | | | 722,357 | | | | 2.10 | |
Technovator International Ltd. | | | HKD | | | | 306,000 | | | | 126,653 | | | | 0.37 | |
Xinchen China Power Holdings Ltd.* | | | HKD | | | | 981,000 | | | | 172,027 | | | | 0.50 | |
| | | | | | | | | | | 7,736,711 | | | | 22.54 | |
Colombia (Cost $561,145) | | | | | | | | | | | | | | | | |
Gran Tierra Energy, Inc.* | | | | | | | 213,500 | | | | 621,285 | | | | 1.81 | |
| | | | | | | | | | | 621,285 | | | | 1.81 | |
Indonesia (Cost $578,272) | | | | | | | | | | | | | | | | |
AKR Corporindo Tbk PT | | | IDR | | | | 674,400 | | | | 366,971 | | | | 1.07 | |
Berlian Laju Tanker Tbk PT*(2) | | | IDR | | | | 4,428,000 | | | | — | | | | — | |
Kino Indonesia Tbk PT | | | IDR | | | | 324,200 | | | | 83,982 | | | | 0.24 | |
| | | | | | | | | | | 450,953 | | | | 1.31 | |
Mexico (Cost $1,861,234) | | | | | | | | | | | | | | | | |
Credito Real S.A.B. de C.V. SOFOM E.R. | | | MXN | | | | 160,672 | | | | 295,145 | | | | 0.86 | |
Grupo Elektra S.A.B. de C.V. | | | MXN | | | | 12,910 | | | | 180,007 | | | | 0.53 | |
Grupo Lamosa S.A.B. de C.V. | | | MXN | | | | 100,480 | | | | 196,962 | | | | 0.57 | |
Grupo Simec S.A.B. de C.V., Series B* | | | MXN | | | | 141,862 | | | | 498,217 | | | | 1.45 | |
| | | | | | | | | | | | | | | | |
See accompanying notes to the financial statements.
104
ASHMORE EMERGING MARKETS SMALL-CAP EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Shares | | | Value | | | % of Net
Assets | |
Mexico - (continued) | | | | | | | | | | | | | | | | |
PLA Administradora Industrial S. de R.L. de C.V.* | | | MXN | | | | 194,500 | | | $ | 322,297 | | | | 0.94 | |
Vitro S.A.B. de C.V., Series A | | | MXN | | | | 143,058 | | | | 471,158 | | | | 1.37 | |
| | | | | | | | | | | 1,963,786 | | | | 5.72 | |
Peru (Cost $244,653) | | | | | | | | | | | | | | | | |
Volcan Cia Minera S.A.A., Class B | | | PEN | | | | 1,372,175 | | | | 252,936 | | | | 0.74 | |
| | | | | | | | | | | 252,936 | | | | 0.74 | |
Philippines (Cost $284,243) | | | | | | | | | | | | | | | | |
Century Properties Group, Inc. | | | PHP | | | | 10,027,001 | | | | 124,244 | | | | 0.36 | |
| | | | | | | | | | | 124,244 | | | | 0.36 | |
Russian Federation (Cost $1,155,593) | | | | | | | | | | | | | | | | |
Aeroflot PJSC* | | | RUB | | | | 199,560 | | | | 409,027 | | | | 1.19 | |
Aeroflot PJSC (Moscow Exchange)* | | | | | | | 449,700 | | | | 921,725 | | | | 2.69 | |
LSR Group PJSC GDR (Registered) | | | | | | | 230,239 | | | | 651,576 | | | | 1.90 | |
| | | | | | | | | | | 1,982,328 | | | | 5.78 | |
South Africa (Cost $821,738) | | | | | | | | | | | | | | | | |
JSE Ltd. | | | ZAR | | | | 70,141 | | | | 818,101 | | | | 2.38 | |
| | | | | | | | | | | 818,101 | | | | 2.38 | |
South Korea (Cost $2,637,354) | | | | | | | | | | | | | | | | |
AfreecaTV Co. Ltd. | | | KRW | | | | 13,060 | | | | 286,481 | | | | 0.83 | |
Cosmax, Inc. | | | KRW | | | | 3,960 | | | | 399,720 | | | | 1.16 | |
DuzonBizon Co. Ltd. | | | KRW | | | | 11,729 | | | | 229,096 | | | | 0.67 | |
Hyundai Mipo Dockyard Co. Ltd.* | | | KRW | | | | 5,191 | | | | 318,923 | | | | 0.93 | |
Interpark Corp. | | | KRW | | | | 17,139 | | | | 167,758 | | | | 0.49 | |
Modetour Network, Inc. | | | KRW | | | | 14,611 | | | | 338,380 | | | | 0.99 | |
Soulbrain Co. Ltd. | | | KRW | | | | 3,658 | | | | 199,484 | | | | 0.58 | |
Viatron Technologies, Inc. | | | KRW | | | | 16,517 | | | | 290,861 | | | | 0.85 | |
| | | | | | | | | | | 2,230,703 | | | | 6.50 | |
Taiwan (Cost $3,921,087) | | | | | | | | | | | | | | | | |
AcBel Polytech, Inc. | | | TWD | | | | 417,000 | | | | 309,207 | | | | 0.90 | |
Altek Corp. | | | TWD | | | | 39,900 | | | | 28,574 | | | | 0.08 | |
AU Optronics Corp. | | | TWD | | | | 1,664,000 | | | | 632,750 | | | | 1.84 | |
Chipbond Technology Corp. | | | TWD | | | | 339,000 | | | | 468,901 | | | | 1.37 | |
Egis Technology, Inc.* | | | TWD | | | | 168,244 | | | | 1,223,544 | | | | 3.56 | |
Fulgent Sun International Holding Co. Ltd. | | | TWD | | | | 436,000 | | | | 860,740 | | | | 2.51 | |
MPI Corp. | | | TWD | | | | 196,000 | | | | 495,008 | | | | 1.44 | |
On-Bright Electronics, Inc. | | | TWD | | | | 102,000 | | | | 664,216 | | | | 1.94 | |
| | | | | | | | | | | 4,682,940 | | | | 13.64 | |
Thailand (Cost $816,793) | | | | | | | | | | | | | | | | |
Amata Corp. PCL (Registered) | | | THB | | | | 896,000 | | | | 296,981 | | | | 0.87 | |
Supalai PCL (Registered) | | | THB | | | | 769,200 | | | | 536,281 | | | | 1.56 | |
| | | | | | | | | | | 833,262 | | | | 2.43 | |
Turkey (Cost $287,588) | | | | | | | | | | | | | | | | |
Tekfen Holding A.S. | | | TRY | | | | 62,667 | | | | 158,984 | | | | 0.46 | |
Turkiye Sinai Kalkinma Bankasi A.S. | | | TRY | | | | 377,282 | | | | 167,044 | | | | 0.49 | |
| | | | | | | | | | | 326,028 | | | | 0.95 | |
Total Common Stock (Cost $27,986,356) | | | | | | | | | | | 28,378,838 | | | | 82.67 | |
| | | | |
Preferred Stock | | | | | | | | | | | | | | | | |
| | | | |
Brazil (Cost $1,828,134) | | | | | | | | | | | | | | | | |
Banco ABC Brasil S.A.* | | | BRL | | | | 139,460 | | | | 671,959 | | | | 1.96 | |
Bradespar S.A.* | | | BRL | | | | 250,900 | | | | 1,020,264 | | | | 2.97 | |
Gol Linhas Aereas Inteligentes S.A. ADR* | | | | | | | 14,870 | | | | 365,802 | | | | 1.06 | |
See accompanying notes to the financial statements.
105
ASHMORE EMERGING MARKETS SMALL-CAP EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Shares | | | Value | | | % of Net
Assets | |
Brazil - (continued) | | | | | | | | | | | | | | | | |
Metalurgica Gerdau S.A.* | | | BRL | | | | 292,900 | | | $ | 435,863 | | | | 1.27 | |
| | | | | | | | | | | 2,493,888 | | | | 7.26 | |
Colombia (Cost $1,016,397) | | | | | | | | | | | | | | | | |
Avianca Holdings S.A. ADR | | | | | | | 91,980 | | | | 585,913 | | | | 1.71 | |
| | | | | | | | | | | 585,913 | | | | 1.71 | |
Total Preferred Stock (Cost $2,844,531) | | | | | | | | | | | 3,079,801 | | | | 8.97 | |
| | | | |
Equity-Linked Securities | | | | | | | | | | | | | | | | |
| | | | |
India (Cost $2,052,447) | | | | | | | | | | | | | | | | |
Balrampur Chini Mills Ltd., Issued by Merrill Lynch International & Co. | | | | | | | 453,904 | | | | 784,298 | | | | 2.29 | |
Claris Lifesciences Ltd., Issued by JP Morgan Structured Products | | | | | | | 91,631 | | | | 411,668 | | | | 1.20 | |
Gujarat Pipavav Port Ltd., Issued by Merrill Lynch International & Co. | | | | | | | 185,397 | | | | 451,927 | | | | 1.32 | |
MT Educare Ltd., Issued by Merrill Lynch International & Co. | | | | | | | 137,117 | | | | 282,913 | | | | 0.82 | |
Persistent Systems Ltd., Issued by JP Morgan Structured Products | | | | | | | 51,196 | | | | 494,279 | | | | 1.44 | |
| | | | | | | | | | | 2,425,085 | | | | 7.07 | |
Total Equity-Linked Securities (Cost $2,052,447) | | | | | | | | | | | 2,425,085 | | | | 7.07 | |
| | | | |
Total Investments (Total Cost $32,883,334) | | | | | | | | | | | 33,883,724 | | | | 98.71 | |
| | | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for further detail) | | | | | | | | | | | 442,190 | | | | 1.29 | |
| | | | |
Net Assets | | | | | | | | | | $ | 34,325,914 | | | | 100.00 | |
| * | Non-income producing security. |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | 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.
106
ASHMORE EMERGING MARKETS SMALL-CAP EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
At October 31, 2016, the industry sectors for the Ashmore Emerging Markets Small-Cap Equity Fund were:
| | | | |
| Sector | | Percentage of
Net Assets | |
Consumer Discretionary | | | 12.3% | |
Consumer Staples | | | 9.7 | |
Energy | | | 3.3 | |
Financials | | | 10.1 | |
Health Care | | | 2.0 | |
Industrials | | | 20.9 | |
Information Technology | | | 17.5 | |
Materials | | | 9.8 | |
Real Estate | | | 10.3 | |
Utilities | | | 2.8 | |
Total Investments | | | 98.7 | |
Other Assets Less Liabilities | | | 1.3 | |
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 Small-Cap Equity Fund’s investments and other financial instruments, which are carried at fair value, as of October 31, 2016:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | |
Argentina | | $ | 2,973,048 | | | $ | — | | | | $ — | | | $ | 2,973,048 | |
Brazil | | | 2,515,778 | | | | — | | | | — | | | | 2,515,778 | |
Chile | | | 866,735 | | | | — | | | | — | | | | 866,735 | |
China | | | 7,736,711 | | | | — | | | | — | | | | 7,736,711 | |
Colombia | | | 621,285 | | | | — | | | | — | | | | 621,285 | |
Indonesia | | | 450,953 | | | | — | | | | — | | | | 450,953 | |
Mexico | | | 1,766,824 | | | | 196,962 | | | | — | | | | 1,963,786 | |
Peru | | | 252,936 | | | | — | | | | — | | | | 252,936 | |
Philippines | | | 124,244 | | | | — | | | | — | | | | 124,244 | |
Russian Federation | | | 1,982,328 | | | | — | | | | — | | | | 1,982,328 | |
South Africa | | | 818,101 | | | | — | | | | — | | | | 818,101 | |
South Korea | | | 2,230,703 | | | | — | | | | — | | | | 2,230,703 | |
Taiwan | | | 4,682,940 | | | | — | | | | — | | | | 4,682,940 | |
Thailand | | | 833,262 | | | | — | | | | — | | | | 833,262 | |
Turkey | | | 326,028 | | | | — | | | | — | | | | 326,028 | |
| | | | | | | | | | | | | | | | |
Total Common Stock | | | 28,181,876 | | | | 196,962 | | | | — | | | | 28,378,838 | |
Preferred Stock | | | | | | | | | | | | | | | | |
Brazil | | | 2,493,888 | | | | — | | | | — | | | | 2,493,888 | |
Colombia | | | 585,913 | | | | — | | | | — | | | | 585,913 | |
| | | | | | | | | | | | | | | | |
Total Preferred Stock | | | 3,079,801 | | | | — | | | | — | | | | 3,079,801 | |
Equity-Linked Securities | | | | | | | | | | | | | | | | |
India | | | — | | | | 2,425,085 | | | | — | | | | 2,425,085 | |
| |
Total Investments | | $ | 31,261,677 | | | $ | 2,622,047 | | | | $ — | | | $ | 33,883,724 | |
| |
See accompanying notes to the financial statements.
107
ASHMORE EMERGING MARKETS SMALL-CAP EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2016, the Fund had transfers as disclosed below:
Transfers from Level 1 to Level 2
| | | | | | | | |
| Country | | | | Value | | | Reason |
Common Stock | | | | | | | | |
Mexico | | | | | $196,962 | | | Bid price applied in current period. |
Transfers from Level 2 to Level 1
| | | | | | | | |
| Country | | | | Value | | | Reason |
Common Stock | | | | | | | | |
Thailand | | | | | $833,262 | | | New volume-based leveling policy implemented in the current period. |
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 10/31/2015 | | Purchases | | | Sales | | | Realized
Gains
(Losses) | | | Change in
Unrealized
Appreciation
(Depreciation) | | | Transfer
into Level 3 | | | Transfer
out of
Level 3 | | | Ending
Balance
at 10/31/2016 | | | Change in
Unrealized
Appreciation
(Depreciation)
from Investments
still held
at 10/31/2016 | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common Stock | | $15,852 | | | $— | | | | $— | | | | $— | | | | $(15,852) | | | | $— | | | | $— | | | | $— | | | | $(15,852) | |
Total | | $15,852 | | | $— | | | | $— | | | | $— | | | | $(15,852) | | | | $— | | | | $— | | | | $— | | | | $(15,852) | |
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, 2016.
| | | | | | | | |
Quantitative Information about Level 3 Fair Value Measurements |
| | | Fair Value at
10/31/2016 | | Valuation
Technique | | Unobservable
Input | | Actual |
Common Stock | | $— | | Discount from last
traded price | | Discount
Percentage | | 100% |
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.
108
ASHMORE EMERGING MARKETS SMALL-CAP EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
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, 2016:
| | | | |
| | | 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 | | | $ (12,517) | |
| | | | |
* See note 10 in the Notes to the Financial Statements for additional information.
At October 31, 2016, 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 | | $ | 33,515,643 | |
Gross tax appreciation of investments | | | 4,724,181 | |
Gross tax depreciation of investments | | | (4,356,100) | |
Net tax depreciation of investments | | | $368,081 | |
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 and other transactions.
See accompanying notes to the financial statements.
109
ASHMORE EMERGING MARKETS FRONTIER EQUITY FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Shares | | | Value | | | % of Net
Assets | |
Common Stock | | | | | | | | | | | | | | | | |
| | | | |
Argentina (Cost $5,891,995) | | | | | | | | | | | | | | | | |
Banco Macro S.A. ADR | | | | | | | 15,785 | | | $ | 1,203,291 | | | | 2.19 | |
BBVA Banco Frances S.A. ADR | | | | | | | 40,918 | | | | 803,220 | | | | 1.46 | |
Grupo Financiero Galicia S.A. ADR | | | | | | | 51,787 | | | | 1,612,647 | | | | 2.94 | |
Grupo Supervielle S.A. ADR* | | | | | | | 97,100 | | | | 1,473,978 | | | | 2.69 | |
Pampa Energia S.A. ADR* | | | | | | | 35,312 | | | | 1,203,080 | | | | 2.19 | |
YPF S.A. ADR | | | | | | | 69,949 | | | | 1,242,294 | | | | 2.26 | |
| | | | | | | | | | | 7,538,510 | | | | 13.73 | |
Bangladesh (Cost $385,134) | | | | | | | | | | | | | | | | |
BRAC Bank Ltd. | | | BDT | | | | 653,820 | | | | 498,839 | | | | 0.91 | |
| | | | | | | | | | | 498,839 | | | | 0.91 | |
Egypt (Cost $3,810,629) | | | | | | | | | | | | | | | | |
Commercial International Bank Egypt S.A.E. GDR (Registered) | | | | | | | 358,117 | | | | 1,582,877 | | | | 2.88 | |
Eastern Tobacco | | | EGP | | | | 54,389 | | | | 1,283,967 | | | | 2.34 | |
Integrated Diagnostics Holdings PLC(2) | | | | | | | 277,852 | | | | 764,093 | | | | 1.39 | |
| | | | | | | | | | | 3,630,937 | | | | 6.61 | |
Georgia (Cost $1,429,409) | | | | | | | | | | | | | | | | |
BGEO Group PLC | | | GBP | | | | 41,274 | | | | 1,493,353 | | | | 2.72 | |
| | | | | | | | | | | 1,493,353 | | | | 2.72 | |
Kazakhstan (Cost $1,616,026) | | | | | | | | | | | | | | | | |
Halyk Savings Bank of Kazakhstan JSC GDR (Registered)* | | | | | | | 259,485 | | | | 1,725,575 | | | | 3.14 | |
| | | | | | | | | | | 1,725,575 | | | | 3.14 | |
Kenya (Cost $1,471,841) | | | | | | | | | | | | | | | | |
KCB Group Ltd. | | | KES | | | | 2,353,000 | | | | 630,784 | | | | 1.15 | |
Kenya Electricity Generating Co. Ltd. | | | KES | | | | 7,941,000 | | | | 453,102 | | | | 0.82 | |
| | | | | | | | | | | 1,083,886 | | | | 1.97 | |
Kuwait (Cost $6,227,328) | | | | | | | | | | | | | | | | |
Agility Public Warehousing Co. K.S.C. | | | KWD | | | | 577,807 | | | | 905,355 | | | | 1.65 | |
Mabanee Co. S.A.K. | | | KWD | | | | 521,706 | | | | 1,376,760 | | | | 2.51 | |
Mobile Telecommunications Co. K.S.C. | | | KWD | | | | 488,182 | | | | 628,042 | | | | 1.14 | |
National Bank of Kuwait S.A.K.P. | | | KWD | | | | 1,153,778 | | | | 2,245,519 | | | | 4.09 | |
National Gulf Holding*(3) | | | KWD | | | | 167,302 | | | | — | | | | — | |
| | | | | | | | | | | 5,155,676 | | | | 9.39 | |
Nigeria (Cost $2,035,367) | | | | | | | | | | | | | | | | |
Dangote Cement PLC | | | NGN | | | | 730,000 | | | | 405,234 | | | | 0.74 | |
Guaranty Trust Bank PLC | | | NGN | | | | 9,985,251 | | | | 744,341 | | | | 1.36 | |
United Bank for Africa PLC | | | NGN | | | | 51,450,000 | | | | 693,616 | | | | 1.26 | |
| | | | | | | | | | | 1,843,191 | | | | 3.36 | |
Oman (Cost $1,195,622) | | | | | | | | | | | | | | | | |
Bank Muscat S.A.O.G. | | | OMR | | | | 1,158,684 | | | | 1,245,800 | | | | 2.27 | |
| | | | | | | | | | | 1,245,800 | | | | 2.27 | |
Pakistan (Cost $8,385,701) | | | | | | | | | | | | | | | | |
Bank Al Habib Ltd. | | | PKR | | | | 834,500 | | | | 366,129 | | | | 0.67 | |
D.G. Khan Cement Co. Ltd. | | | PKR | | | | 813,000 | | | | 1,331,675 | | | | 2.42 | |
Engro Corp. Ltd. | | | PKR | | | | 200,100 | | | | 532,976 | | | | 0.97 | |
Habib Bank Ltd. | | | PKR | | | | 463,500 | | | | 989,272 | | | | 1.80 | |
Hub Power (The) Co. Ltd. | | | PKR | | | | 875,900 | | | | 892,031 | | | | 1.62 | |
K-Electric Ltd.* | | | PKR | | | | 11,200,000 | | | | 997,099 | | | | 1.82 | |
Maple Leaf Cement Factory Ltd. | | | PKR | | | | 960,000 | | | | 834,962 | | | | 1.52 | |
Oil & Gas Development Co. Ltd. | | | PKR | | | | 715,500 | | | | 960,053 | | | | 1.75 | |
Pakistan Oilfields Ltd. | | | PKR | | | | 217,500 | | | | 822,910 | | | | 1.50 | |
See accompanying notes to the financial statements.
110
ASHMORE EMERGING MARKETS FRONTIER EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Shares | | | Value | | | % of Net
Assets | |
Pakistan - (continued) | | | | | | | | | | | | | | | | |
United Bank Ltd. | | | PKR | | | | 886,000 | | | $ | 1,703,352 | | | | 3.10 | |
| | | | | | | | | | | 9,430,459 | | | | 17.17 | |
Peru (Cost $1,146,204) | | | | | | | | | | | | | | | | |
Credicorp Ltd. | | | | | | | 10,200 | | | | 1,516,536 | | | | 2.76 | |
| | | | | | | | | | | 1,516,536 | | | | 2.76 | |
Philippines (Cost $2,462,816) | | | | | | | | | | | | | | | | |
Cosco Capital, Inc. | | | PHP | | | | 6,927,600 | | | | 1,216,059 | | | | 2.21 | |
First Gen Corp. | | | PHP | | | | 2,816,000 | | | | 1,334,652 | | | | 2.43 | |
| | | | | | | | | | | 2,550,711 | | | | 4.64 | |
Poland (Cost $815,860) | | | | | | | | | | | | | | | | |
Kernel Holding S.A. | | | PLN | | | | 68,344 | | | | 1,095,037 | | | | 1.99 | |
| | | | | | | | | | | 1,095,037 | | | | 1.99 | |
Saudi Arabia (Cost $929,351) | | | | | | | | | | | | | | | | |
Abdul Mohsen Al-Hokair Tourism and Development Co. | | | SAR | | | | 79,796 | | | | 628,437 | | | | 1.14 | |
| | | | | | | | | | | 628,437 | | | | 1.14 | |
Sri Lanka (Cost $2,995,742) | | | | | | | | | | | | | | | | |
John Keells Holdings PLC | | | LKR | | | | 1,678,015 | | | | 1,690,495 | | | | 3.08 | |
Sampath Bank PLC | | | LKR | | | | 559,744 | | | | 983,999 | | | | 1.79 | |
| | | | | | | | | | | 2,674,494 | | | | 4.87 | |
United Arab Emirates (Cost $5,695,514) | | | | | | | | | | | | | | | | |
Agthia Group PJSC | | | AED | | | | 245,799 | | | | 401,528 | | | | 0.73 | |
DP World Ltd. | | | | | | | 48,895 | | | | 877,665 | | | | 1.60 | |
Dubai Islamic Bank PJSC | | | AED | | | | 601,427 | | | | 858,024 | | | | 1.56 | |
Emaar Properties PJSC | | | AED | | | | 967,779 | | | | 1,836,513 | | | | 3.34 | |
Emirates NBD PJSC | | | AED | | | | 359,260 | | | | 782,499 | | | | 1.43 | |
NMC Health PLC | | | GBP | | | | 77,086 | | | | 1,378,501 | | | | 2.51 | |
| | | | | | | | | | | 6,134,730 | | | | 11.17 | |
Vietnam (Cost $3,093,848) | | | | | | | | | | | | | | | | |
Military Commercial Joint Stock Bank* | | | VND | | | | 1,957,756 | | | | 1,254,129 | | | | 2.28 | |
Petrovietnam Fertilizer & Chemicals JSC | | | VND | | | | 367,720 | | | | 457,941 | | | | 0.83 | |
Vietnam Dairy Products JSC | | | VND | | | | 222,450 | | | | 1,415,038 | | | | 2.58 | |
| | | | | | | | | | | 3,127,108 | | | | 5.69 | |
Total Common Stock (Cost $49,588,387) | | | | | | | | | | | 51,373,279 | | | | 93.53 | |
| | | | |
Preferred Stock | | | | | | | | | | | | | | | | |
| | | | |
Colombia (Cost $1,424,594) | | | | | | | | | | | | | | | | |
Banco Davivienda S.A. | | | COP | | | | 150,675 | | | | 1,533,420 | | | | 2.79 | |
| | | | | | | | | | | 1,533,420 | | | | 2.79 | |
Total Preferred Stock (Cost $1,424,594) | | | | | | | | | | | 1,533,420 | | | | 2.79 | |
| | | | |
Total Investments (Total Cost $51,012,981) | | | | | | | | | | | 52,906,699 | | | | 96.32 | |
| | | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for further detail) | | | | | | | | | | | 2,020,195 | | | | 3.68 | |
| | | | |
Net Assets | | | | | | | | | | $ | 54,926,894 | | | | 100.00 | |
| * | Non-income producing security. |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
| (2) | 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. |
| (3) | Security has been deemed worthless and is a Level 3 investment. |
See accompanying notes to the financial statements.
111
ASHMORE EMERGING MARKETS FRONTIER EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
Percentages shown are based on net assets.
At October 31, 2016, the industry sectors for the Ashmore Emerging Markets Frontier Equity Fund were:
| | | | | | | | | | | | | | | | |
| Sector | | Percentage of
Net Assets | |
Consumer Discretionary | | | 1.1% | | | | | | | | | | | | | |
Consumer Staples | | | 9.9 | | | | | | | | | | | | | |
Energy | | | 5.5 | | | | | | | | | | | | | |
Financials | | | 47.2 | | | | | | | | | | | | | |
Health Care | | | 3.9 | | | | | | | | | | | | | |
Industrials | | | 6.3 | | | | | | | | | | | | | |
Materials | | | 6.5 | | | | | | | | | | | | | |
Real Estate | | | 5.9 | | | | | | | | | | | | | |
Telecommunication Services | | | 1.1 | | | | | | | | | | | | | |
Utilities | | | 8.9 | | | | | | | | | | | | | |
Total Investments | | | 96.3 | | | | | | | | | | | | | |
Other Assets Less Liabilities | | | 3.7 | | | | | | | | | | | | | |
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 Frontier Equity Fund’s investments, which are carried at fair value, as of October 31, 2016:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Investments | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | |
Argentina | | $ | 7,538,510 | | | $ | — | | | $ | — | | | $ | 7,538,510 | |
Bangladesh | | | 498,839 | | | | — | | | | — | | | | 498,839 | |
Egypt | | | 3,630,937 | | | | — | | | | — | | | | 3,630,937 | |
Georgia | | | 1,493,353 | | | | — | | | | — | | | | 1,493,353 | |
Kazakhstan | | | 1,725,575 | | | | — | | | | — | | | | 1,725,575 | |
Kenya | | | 1,083,886 | | | | — | | | | — | | | | 1,083,886 | |
Kuwait | | | 5,155,676 | | | | — | | | | — | | | | 5,155,676 | |
Nigeria | | | 1,843,191 | | | | — | | | | — | | | | 1,843,191 | |
Oman | | | 1,245,800 | | | | — | | | | — | | | | 1,245,800 | |
Pakistan | | | 9,430,459 | | | | — | | | | — | | | | 9,430,459 | |
Peru | | | 1,516,536 | | | | — | | | | — | | | | 1,516,536 | |
Philippines | | | 2,550,711 | | | | — | | | | — | | | | 2,550,711 | |
Poland | | | 1,095,037 | | | | — | | | | — | | | | 1,095,037 | |
Saudi Arabia | | | 628,437 | | | | — | | | | — | | | | 628,437 | |
Sri Lanka | | | 2,674,494 | | | | — | | | | — | | | | 2,674,494 | |
United Arab Emirates | | | 6,134,730 | | | | — | | | | — | | | | 6,134,730 | |
Vietnam | | | 3,127,108 | | | | — | | | | — | | | | 3,127,108 | |
| | | | | | | | | | | | | | | | |
Total Common Stock | | | 51,373,279 | | | | — | | | | — | | | | 51,373,279 | |
Preferred Stock | | | 1,533,420 | | | | — | | | | — | | | | 1,533,420 | |
Total Investments | | $ | 52,906,699 | | | $ | — | | | $ | — | | | $ | 52,906,699 | |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2016, there were no transfers between Level 1, Level 2 and Level 3 based on levels assigned to the securities on October 31, 2015.
See accompanying notes to the financial statements.
112
ASHMORE EMERGING MARKETS FRONTIER EQUITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
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, 2016:
| | | | |
| | | 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 | | | $ (37) | |
| | | | |
* See note 10 in the Notes to the Financial Statements for additional information.
At October 31, 2016, 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 | | | $51,130,755 | |
Gross tax appreciation of investments | | | 5,147,674 | |
Gross tax depreciation of investments | | | (3,371,730) | |
Net tax appreciation of investments | | | $1,775,944 | |
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.
113
ASHMORE EMERGING MARKETS VALUE FUND
SCHEDULE OF INVESTMENTS
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Shares | | | Value | | | % of Net
Assets | |
Common Stock | | | | | | | | | | | | | | | | |
| | | | |
Argentina (Cost $513,936) | | | | | | | | | | | | | | | | |
Grupo Financiero Galicia S.A. ADR | | | | | | | 3,005 | | | $ | 93,576 | | | | 1.03 | |
Grupo Supervielle S.A. ADR* | | | | | | | 7,100 | | | | 107,778 | | | | 1.18 | |
Pampa Energia S.A. ADR* | | | | | | | 1,325 | | | | 45,143 | | | | 0.50 | |
YPF S.A. ADR | | | | | | | 16,228 | | | | 288,209 | | | | 3.16 | |
| | | | | | | | | | | 534,706 | | | | 5.87 | |
Brazil (Cost $189,659) | | | | | | | | | | | | | | | | |
Cosan Ltd., Class A | | | | | | | 24,700 | | | | 219,830 | | | | 2.41 | |
Rumo Logistica Operadora Multimodal S.A.* | | | BRL | | | | 75,300 | | | | 168,434 | | | | 1.85 | |
| | | | | | | | | | | 388,264 | | | | 4.26 | |
China (Cost $2,374,965) | | | | | | | | | | | | | | | | |
Alibaba Group Holding Ltd. ADR* | | | | | | | 1,076 | | | | 109,418 | | | | 1.20 | |
Baidu, Inc. ADR* | | | | | | | 504 | | | | 89,137 | | | | 0.98 | |
Bitauto Holdings Ltd. ADR* | | | | | | | 3,330 | | | | 85,015 | | | | 0.93 | |
China Merchants Bank Co. Ltd., Class H | | | HKD | | | | 129,000 | | | | 314,701 | | | | 3.45 | |
China Minsheng Banking Corp. Ltd., Class H | | | HKD | | | | 200 | | | | 228 | | | | — | |
China Pacific Insurance Group Co. Ltd., Class H | | | HKD | | | | 23,800 | | | | 86,079 | | | | 0.95 | |
China State Construction International Holdings Ltd. | | | HKD | | | | 102,000 | | | | 149,142 | | | | 1.64 | |
China Taiping Insurance Holdings Co. Ltd.* | | | HKD | | | | 30,200 | | | | 58,332 | | | | 0.64 | |
CITIC Securities Co. Ltd., Class H | | | HKD | | | | 57,500 | | | | 127,521 | | | | 1.40 | |
CNOOC Ltd. | | | HKD | | | | 74,000 | | | | 94,175 | | | | 1.03 | |
Country Garden Holdings Co. Ltd. | | | HKD | | | | 318,000 | | | | 165,652 | | | | 1.82 | |
Far East Horizon Ltd. | | | HKD | | | | 108,000 | | | | 98,593 | | | | 1.08 | |
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H* | | | HKD | | | | 22,000 | | | | 52,025 | | | | 0.57 | |
Haitong Securities Co. Ltd., Class H | | | HKD | | | | 50,000 | | | | 88,711 | | | | 0.97 | |
Ju Teng International Holdings Ltd. | | | HKD | | | | 438,500 | | | | 139,089 | | | | 1.53 | |
Longfor Properties Co. Ltd. | | | HKD | | | | 132,500 | | | | 175,971 | | | | 1.93 | |
Luye Pharma Group Ltd. | | | HKD | | | | 88,500 | | | | 59,566 | | | | 0.65 | |
Ping An Insurance Group Co. of China Ltd., Class H | | | HKD | | | | 51,000 | | | | 269,285 | | | | 2.96 | |
Technovator International Ltd. | | | HKD | | | | 50,000 | | | | 20,695 | | | | 0.23 | |
Xinjiang Goldwind Science & Technology Co. Ltd., Class H | | | HKD | | | | 59,200 | | | | 81,828 | | | | 0.90 | |
| | | | | | | | | | | 2,265,163 | | | | 24.86 | |
India (Cost $116,141) | | | | | | | | | | | | | | | | |
Reliance Industries Ltd. GDR | | | | | | | 3,983 | | | | 126,261 | | | | 1.39 | |
| | | | | | | | | | | 126,261 | | | | 1.39 | |
Indonesia (Cost $90,719) | | | | | | | | | | | | | | | | |
AKR Corporindo Tbk PT | | | IDR | | | | 191,200 | | | | 104,041 | | | | 1.14 | |
| | | | | | | | | | | 104,041 | | | | 1.14 | |
Mexico (Cost $651,906) | | | | | | | | | | | | | | | | |
Cemex S.A.B. de C.V. ADR (Participation Certificate)* | | | | | | | 42,784 | | | | 371,365 | | | | 4.08 | |
Grupo Financiero Banorte S.A.B. de C.V., Series O | | | MXN | | | | 16,100 | | | | 94,815 | | | | 1.04 | |
Grupo Mexico S.A.B. de C.V., Series B | | | MXN | | | | 48,626 | | | | 119,809 | | | | 1.31 | |
Ternium S.A. ADR | | | | | | | 6,863 | | | | 164,094 | | | | 1.80 | |
| | | | | | | | | | | 750,083 | | | | 8.23 | |
Peru (Cost $47,308) | | | | | | | | | | | | | | | | |
Volcan Cia Minera S.A.A., Class B | | | PEN | | | | 238,378 | | | | 43,941 | | | | 0.48 | |
| | | | | | | | | | | 43,941 | | | | 0.48 | |
Russian Federation (Cost $346,342) | | | | | | | | | | | | | | | | |
Aeroflot PJSC* | | | | | | | 69,040 | | | | 141,507 | | | | 1.55 | |
Sberbank of Russia PJSC | | | RUB | | | | 83,040 | | | | 193,058 | | | | 2.12 | |
See accompanying notes to the financial statements.
114
ASHMORE EMERGING MARKETS VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Shares | | | Value | | | % of Net
Assets | |
Russian Federation - (continued) | | | | | | | | | | | | | | | | |
X5 Retail Group N.V. GDR (Registered)* | | | | | | | 7,955 | | | $ | 237,377 | | | | 2.61 | |
| | | | | | | | | | | 571,942 | | | | 6.28 | |
South Africa (Cost $293,006) | | | | | | | | | | | | | | | | |
FirstRand Ltd. | | | ZAR | | | | 6,049 | | | | 21,677 | | | | 0.24 | |
JSE Ltd. | | | ZAR | | | | 7,046 | | | | 82,182 | | | | 0.90 | |
Sasol Ltd. ADR | | | | | | | 5,882 | | | | 161,814 | | | | 1.78 | |
| | | | | | | | | | | 265,673 | | | | 2.92 | |
South Korea (Cost $1,282,170) | | | | | | | | | | | | | | | | |
Hana Financial Group, Inc. | | | KRW | | | | 8,242 | | | | 236,257 | | | | 2.59 | |
Hyundai Mipo Dockyard Co. Ltd.* | | | KRW | | | | 1,951 | | | | 119,865 | | | | 1.32 | |
Kia Motors Corp. | | | KRW | | | | 2,073 | | | | 73,735 | | | | 0.81 | |
POSCO | | | KRW | | | | 1,243 | | | | 257,453 | | | | 2.83 | |
Samsung Electronics Co. Ltd. | | | KRW | | | | 60 | | | | 85,943 | | | | 0.94 | |
Samsung Electronics Co. Ltd. GDR | | | | | | | 407 | | | | 287,139 | | | | 3.15 | |
Silicon Works Co. Ltd. | | | KRW | | | | 4,247 | | | | 99,285 | | | | 1.09 | |
SK Hynix, Inc. | | | KRW | | | | 7,210 | | | | 258,344 | | | | 2.84 | |
| | | | | | | | | | | 1,418,021 | | | | 15.57 | |
Taiwan (Cost $568,011) | | | | | | | | | | | | | | | | |
AU Optronics Corp. | | | TWD | | | | 449,000 | | | | 170,736 | | | | 1.88 | |
Chipbond Technology Corp. | | | TWD | | | | 75,000 | | | | 103,739 | | | | 1.14 | |
CTBC Financial Holding Co. Ltd. | | | TWD | | | | 81,000 | | | | 43,634 | | | | 0.48 | |
Egis Technology, Inc.* | | | TWD | | | | 17,434 | | | | 126,788 | | | | 1.39 | |
Largan Precision Co. Ltd. | | | TWD | | | | 2,000 | | | | 236,711 | | | | 2.60 | |
Phison Electronics Corp. | | | TWD | | | | 13,000 | | | | 92,276 | | | | 1.01 | |
| | | | | | | | | | | 773,884 | | | | 8.50 | |
Thailand (Cost $117,775) | | | | | | | | | | | | | | | | |
Kasikornbank PCL NVDR | | | THB | | | | 24,900 | | | | 122,374 | | | | 1.34 | |
| | | | | | | | | | | 122,374 | | | | 1.34 | |
Turkey (Cost $174,731) | | | | | | | | | | | | | | | | |
Turkiye Halk Bankasi A.S. | | | TRY | | | | 62,060 | | | | 188,532 | | | | 2.07 | |
| | | | | | | | | | | 188,532 | | | | 2.07 | |
Total Common Stock (Cost $6,766,669) | | | | | | | | | | | 7,552,885 | | | | 82.91 | |
| | | | |
Preferred Stock | | | | | | | | | | | | | | | | |
| | | | |
Brazil (Cost $565,698) | | | | | | | | | | | | | | | | |
Bradespar S.A.* | | | BRL | | | | 53,200 | | | | 216,333 | | | | 2.38 | |
Braskem S.A. ADR | | | | | | | 15,921 | | | | 282,598 | | | | 3.10 | |
Gerdau S.A. ADR | | | | | | | 33,036 | | | | 113,314 | | | | 1.24 | |
Itau Unibanco Holding S.A. ADR | | | | | | | 18,960 | | | | 226,189 | | | | 2.48 | |
| | | | | | | | | | | 838,434 | | | | 9.20 | |
Total Preferred Stock (Cost $565,698) | | | | | | | | | | | 838,434 | | | | 9.20 | |
| | | | |
Equity-Linked Securities | | | | | | | | | | | | | | | | |
| | | | |
India (Cost $546,650) | | | | | | | | | | | | | | | | |
Adani Ports and Special Economic Zone Ltd., Issued by JP Morgan Structured Products B.V. | | | | | | | 42,395 | | | | 194,879 | | | | 2.14 | |
Axis Bank Ltd., Issued by Merrill Lynch International & Co. | | | | | | | 21,410 | | | | 156,087 | | | | 1.71 | |
Bharat Petroleum Corp. Ltd., Issued by JP Morgan Structured Products B.V. | | | | | | | 13,960 | | | | 139,890 | | | | 1.54 | |
See accompanying notes to the financial statements.
115
ASHMORE EMERGING MARKETS VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| | | Currency(1) | | | Shares | | | Value | | | % of Net
Assets | |
India - (continued) | | | | | | | | | | | | | | | | |
Shriram Transport Finance Co. Ltd., Issued by JP Morgan Structured Products B.V. | | | | | | | 5,003 | | | $ | 80,888 | | | | 0.89 | |
Tech Mahindra Ltd., Issued by JP Morgan Structured Products B.V. | | | | | | | 13,616 | | | | 88,817 | | | | 0.97 | |
| | | | | | | | | | | 660,561 | | | | 7.25 | |
Total Equity-Linked Securities (Cost $546,650) | | | | | | | | | | | 660,561 | | | | 7.25 | |
| | | | |
Total Investments (Total Cost $7,879,017) | | | | | | | | | | | 9,051,880 | | | | 99.36 | |
| | | | |
Other Assets Less Liabilities (See Statements of Assets and Liabilities for further detail) | | | | | | | | | | | 58,212 | | | | 0.64 | |
| | | | |
Net Assets | | | | | | | | | | $ | 9,110,092 | | | | 100.00 | |
| * | Non-income producing security. |
| (1) | Par values are stated in United States Dollars unless otherwise noted below. |
Percentages shown are based on net assets.
At October 31, 2016, the industry sectors for the Ashmore Emerging Markets Value Fund were:
| | | | |
| Sector | | Percentage of
Net Assets | |
Consumer Discretionary | | | 0.8% | |
Consumer Staples | | | 2.6 | |
Energy | | | 11.3 | |
Financials | | | 29.5 | |
Health Care | | | 1.2 | |
Industrials | | | 10.6 | |
Information Technology | | | 21.9 | |
Materials | | | 17.2 | |
Real Estate | | | 3.8 | |
Utilities | | | 0.5 | |
Total Investments | | | 99.4 | |
Other Assets Less Liabilities | | | 0.6 | |
Net Assets | | | 100.0% | |
| | |
See accompanying notes to the financial statements.
116
ASHMORE EMERGING MARKETS VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
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 Value Fund’s investments, as of October 31, 2016.
| | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | Total | |
Investments | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
Argentina | | $ | 534,706 | | | $ | — | | | $— | | $ | 534,706 | |
Brazil | | | 388,264 | | | | — | | | — | | | 388,264 | |
China | | | 2,265,163 | | | | — | | | — | | | 2,265,163 | |
India | | | 126,261 | | | | — | | | — | | | 126,261 | |
Indonesia | | | 104,041 | | | | — | | | — | | | 104,041 | |
Mexico | | | 750,083 | | | | — | | | — | | | 750,083 | |
Peru | | | 43,941 | | | | — | | | — | | | 43,941 | |
Russian Federation | | | 571,942 | | | | — | | | — | | | 571,942 | |
South Africa | | | 265,673 | | | | — | | | — | | | 265,673 | |
South Korea | | | 1,418,021 | | | | — | | | — | | | 1,418,021 | |
Taiwan | | | 773,884 | | | | — | | | — | | | 773,884 | |
Thailand | | | 122,374 | | | | — | | | — | | | 122,374 | |
Turkey | | | 188,532 | | | | — | | | — | | | 188,532 | |
| | | | | | | | | | | | | | |
Total Common Stock | | | 7,552,885 | | | | — | | | — | | | 7,552,885 | |
Preferred Stock | | | | | | | | | | | | | | |
Brazil | | | 838,434 | | | | — | | | — | | | 838,434 | |
| | | | | | | | | | | | | | |
Total Preferred Stock | | | 838,434 | | | | — | | | — | | | 838,434 | |
Equity-Linked Securities | | | | | | | | | | | | | | |
India | | | — | | | | 660,561 | | | — | | | 660,561 | |
Total Investments | | $ | 8,391,319 | | | $ | 660,561 | | | $— | | $ | 9,051,880 | |
The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At October 31, 2016, there were no transfers between Level 1, Level 2 and Level 3 based on levels assigned to the securities on October 31, 2015.
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, 2016:
| | | | |
| | | 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 | | | $ 283 | |
| | | | |
* See note 10 in the Notes to the Financial Statements for additional information.
See accompanying notes to the financial statements.
117
ASHMORE EMERGING MARKETS VALUE FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
As of October 31, 2016
At October 31, 2016, 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 | | | $8,117,533 | |
Gross tax appreciation of investments | | | 1,416,292 | |
Gross tax depreciation of investments | | | (481,945) | |
Net tax appreciation of investments | | | $934,347 | |
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 FUNDS
NOTES TO FINANCIAL STATEMENTS
As of October 31, 2016
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, 2016, each with its own investment objective. The Ashmore Emerging Markets Total Return Fund, Ashmore Emerging Markets Hard Currency Debt Fund, Ashmore Emerging Markets Local Currency Bond Fund, Ashmore Emerging Markets Corporate Debt Fund, Ashmore Emerging Markets Short Duration Fund, Ashmore Emerging Markets Equity Opportunities Fund, Ashmore Emerging Markets Small-Cap Equity Fund, Ashmore Emerging Markets Frontier Equity Fund and Ashmore Emerging Markets Value Fund (each a “Fund” and collectively, the “Funds”) are separate series of the Trust. The Ashmore Emerging Markets Local Currency Bond Fund and the Ashmore Emerging Markets Short Duration Fund are each non-diversified funds. 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’ financial statements are presented herein. Effective November 8, 2015, the Ashmore Emerging Markets Debt Fund changed its name to the Ashmore Emerging Markets Hard Currency Debt Fund and made certain related changes to its principle investment strategies. On November 23, 2015, the Trust launched the Ashmore Emerging Markets Equity Opportunities Fund by offering Class A, Class C and Institutional Class shares of the Fund. Effective February 29, 2016, the Ashmore Emerging Markets Equity Fund changed its name to the Ashmore Emerging Markets Value Fund.
Ashmore Investment Advisors Limited (“AIAL” or the “Investment Manager”) serves as investment manager to the Funds. AIAL is a wholly owned subsidiary of Ashmore Investments (UK) Limited, which is a wholly owned subsidiary of Ashmore Group plc (“Ashmore Group”). The Investment Manager has retained Ashmore Equities Investment Management (US) LLC (“AEIM” or the “Subadviser”) to manage the investment portfolios of Ashmore Emerging Markets Small-Cap Equity Fund, Ashmore Emerging Markets Frontier Equity Fund and Ashmore Emerging Markets Value Fund. The Subadviser is responsible for managing the investment of the assets of Ashmore Emerging Markets Small-Cap Equity Fund, Ashmore Emerging Markets Frontier Equity Fund and Ashmore Emerging Markets Value 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.
Related parties or personnel of the Investment Manager may invest in the Funds. The Investment Manager could face a conflict if a related party is invested in a Fund and that party’s interests diverge from those of the Fund but equally this co-investment may serve to better align the interests of the Funds and the personnel of the Investment Manager. When a related party provides capital for a Fund, it may do so with the intention of redeeming all or part of its interest in the Fund at a future point in time.
The Funds have assessed the impact of the Alternative Investment Fund Managers Directive (the “Directive”) 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) Non-EEA AIFs (“European Economic Area Alternative Investment Funds”), and (ii) not being marketed in the European Union, as defined by the Directive.
2. Significant accounting policies
The significant accounting policies adopted and consistently followed in the preparation of the Funds’ financial statements are set out below:
119
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
(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 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 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 closing prices or 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 (e.g., certain foreign 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. Exchange traded options, futures and options on futures are generally valued at the settlement price determined by the exchange on which the instrument is primarily traded. 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 a Fund believes a non-U.S. (foreign) security’s value has materially changed after the close of the security’s primary exchange or principal market but before the time as of which the Funds calculate their NAVs, 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 Fund 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 time as of which the Funds calculate their NAVs. A Fund may utilize modeling tools provided by third-party vendors to determine the fair values of non-U.S. securities. Foreign exchanges may permit trading in foreign securities on days when the Trust is not open for business, which may result in the values of a Fund’s portfolio investments being affected when investors are unable to buy, sell or exchange shares of the Fund.
120
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
Investments initially valued in currencies other than the United States dollar are converted to the United States 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 opens 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 United States dollar. The value of securities traded in markets outside the United States or denominated in currencies other than the United States 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.
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 employ 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 may 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 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, net of any applicable tax withholding.
121
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
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. In addition to 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. In addition to 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, 2016, all inflation-indexed bonds were shown on the Statement of Investments with their original par and stated coupon rate.
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.
122
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
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 portfolio securities and other assets.
Derivative financial instruments may result in off-balance sheet market and credit risk. 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. Derivative risk exposures are discussed in note 10.
Foreign/Emerging Markets Risks
Investments in foreign securities entail risks in addition to those customarily associated with investing in U.S. securities. 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.
| | ● | | 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. |
123
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
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 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. Investments in public open-end investment funds are categorized as Level 2.
Investments and derivatives classified within Level 3 have significant unobservable inputs, as they trade infrequently or not at all. Level 3 instruments may include bank loan agreements and less-liquid corporate debt securities (including distressed debt instruments). Also included in this category are certain bonds and loans for which independent broker prices are used and information relating to the inputs of the price models is not available.
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. The 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 the Fund to counterparties are reflected as a liability on the Statements of Assets and Liabilities. Interest payments made by the Fund to counterparties are recorded as a component of interest expense on the Statements of Operations. In periods of increased demand for the security, the Fund may receive a fee for use of the security by the counterparty, which may result in interest income to the Fund.
As of October 31, 2016, the Funds did not hold any reverse repurchase agreements.
124
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
6. Capital share transactions
Transactions in Class A shares for the year ended October 31, 2016, 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 Total Return Fund | | | 370,164 | | | $ | 2,793,528 | | | 13,896 | | $ | 104,932 | | | | (348,149 | ) | | $ | (2,528,242 | ) | | | 35,911 | | | $ 370,218 |
| Ashmore Emerging Markets Hard Currency Debt Fund | | | 23,388 | | | | 195,100 | | | 600 | | | 5,114 | | | | (275 | ) | | | (2,364 | ) | | | 23,713 | | | 197,850 |
| Ashmore Emerging Markets Local Currency Bond Fund | | | 16,478 | | | | 115,145 | | | 176 | | | 1,183 | | | | (6,102 | ) | | | (43,453 | ) | | | 10,552 | | | 72,875 |
| Ashmore Emerging Markets Corporate Debt Fund | | | 996,931 | | | | 7,498,703 | | | 38,760 | | | 289,108 | | | | (537,445 | ) | | | (4,080,066 | ) | | | 498,246 | | | 3,707,745 |
| Ashmore Emerging Markets Short Duration Fund | | | 984,057 | | | | 10,078,647 | | | 16,073 | | | 164,824 | | | | (42,014 | ) | | | (419,286 | ) | | | 958,116 | | | 9,824,185 |
| Ashmore Emerging Markets Equity Opportunities Fund | | | 1,000 | | | | 10,000 | | | 11 | | | 109 | | | | - | | | | - | | | | 1,011 | | | 10,109 |
| Ashmore Emerging Markets Small-Cap Equity Fund | | | 36,312 | | | | 267,978 | | | 732 | | | 5,877 | | | | (8,829 | ) | | | (71,167 | ) | | | 28,215 | | | 202,688 |
| Ashmore Emerging Markets Frontier Equity Fund | | | 265,714 | | | | 2,135,596 | | | 141 | | | 1,093 | | | | (1,606 | ) | | | (12,860 | ) | | | 264,249 | | | 2,123,829 |
| Ashmore Emerging Markets Value Fund | | | 1,059 | | | | 8,524 | | | 18 | | | 139 | | | | - | | | | - | | | | 1,077 | | | 8,663 |
|
Transactions in Class C shares for the year ended October 31, 2016, 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 Total Return Fund | | | 277,184 | | | $ | 2,178,417 | | | 3,606 | | $ | 27,417 | | | | (33,774 | ) | | $ | (244,753 | ) | | | 247,016 | | | $ 1,961,081 |
| Ashmore Emerging Markets Hard Currency Debt Fund | | | 6,448 | | | | 52,430 | | | 16 | | | 128 | | | | (6,158 | ) | | | (49,280 | ) | | | 306 | | | 3,278 |
| Ashmore Emerging Markets Local Currency Bond Fund | | | 3,655 | | | | 25,472 | | | 165 | | | 1,112 | | | | - | | | | - | | | | 3,820 | | | 26,584 |
| Ashmore Emerging Markets Corporate Debt Fund | | | 486,529 | | | | 3,659,954 | | | 16,394 | | | 120,800 | | | | (164,134 | ) | | | (1,213,065 | ) | | | 338,789 | | | 2,567,689 |
| Ashmore Emerging Markets Equity Opportunities Fund | | | 1,000 | | | | 10,000 | | | 9 | | | 90 | | | | - | | | | - | | | | 1,009 | | | 10,090 |
| Ashmore Emerging Markets Small-Cap Equity Fund | | | 8,155 | | | | 63,118 | | | 530 | | | 4,415 | | | | (26,421 | ) | | | (233,256 | ) | | | (17,736 | ) | | (165,723) |
| Ashmore Emerging Markets Frontier Equity Fund | | | 2,770 | | | | 21,808 | | | 63 | | | 464 | | | | (1,878 | ) | | | (14,878 | ) | | | 955 | | | 7,394 |
| Ashmore Emerging Markets Value Fund | | | - | | | | - | | | - * | | | 3 | | | | (102 | ) | | | (920 | ) | | | (102 | ) | | (917) |
| * | Amount rounds to less than 0.5 shares. |
125
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
Transactions in Institutional Class shares for the year ended October 31, 2016, 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 Total Return Fund | | | 37,772,981 | | | $ | 296,635,991 | | | 5,615,110 | | $ | 43,037,108 | | | | (14,150,587 | ) | | $ | (106,274,285 | ) | | | 29,237,504 | | | $ 233,398,814 |
| Ashmore Emerging Markets Hard Currency Debt Fund | | | 141,539 | | | | 1,148,046 | | | 40,134 | | | 329,365 | | | | (136,955 | ) | | | (1,127,599 | ) | | | 44,718 | | | 349,812 |
| Ashmore Emerging Markets Local Currency Bond Fund | | | 1,600,358 | | | | 11,492,494 | | | 391,803 | | | 2,728,517 | | | | (2,635,680 | ) | | | (18,021,028 | ) | | | (643,519 | ) | | (3,800,017) |
| Ashmore Emerging Markets Corporate Debt Fund | | | 16,818,173 | | | | 130,559,694 | | | 543,041 | | | 4,188,645 | | | | (20,872,777 | ) | | | (161,159,041 | ) | | | (3,511,563 | ) | | (26,410,702) |
| Ashmore Emerging Markets Short Duration Fund | | | 8,814,329 | | | | 84,468,605 | | | 448,232 | | | 4,403,013 | | | | (337,924 | ) | | | (3,236,236 | ) | | | 8,924,637 | | | 85,635,382 |
| Ashmore Emerging Markets Equity Opportunities Fund | | | 516,793 | | | | 5,167,220 | | | 5,728 | | | 56,825 | | | | (8,029 | ) | | | (77,557 | ) | | | 514,492 | | | 5,146,488 |
| Ashmore Emerging Markets Small-Cap Equity Fund | | | 1,355,360 | | | | 13,303,248 | | | 55,137 | | | 554,951 | | | | (2,578,942 | ) | | | (24,847,478 | ) | | | (1,168,445 | ) | | (10,989,279) |
| Ashmore Emerging Markets Frontier Equity Fund | | | 1,028,424 | | | | 8,959,900 | | | 79,510 | | | 677,406 | | | | (915,899 | ) | | | (7,962,444 | ) | | | 192,035 | | | 1,674,862 |
| Ashmore Emerging Markets Value Fund | | | 395,698 | | | | 2,781,906 | | | 6,459 | | | 47,378 | | | | (357,187 | ) | | | (2,466,521 | ) | | | 44,970 | | | 362,763 |
|
Transactions in Class A shares for the year ended October 31, 2015, 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 Total Return Fund | | | 281,985 | | | $ | 2,208,170 | | | 18,874 | | $ | 151,369 | | | | (861,656 | ) | | $ | (6,924,708 | ) | | | (560,797 | ) | | $ (4,565,169) |
| Ashmore Emerging Markets Hard Currency Debt Fund | | | 62 | | | | 521 | | | 39 | | | 320 | | | | (4,121 | ) | | | (34,577 | ) | | | (4,020 | ) | | (33,736) |
| Ashmore Emerging Markets Local Currency Bond Fund | | | 1,990 | | | | 14,124 | | | 128 | | | 937 | | | | - | | | | - | | | | 2,118 | | | 15,061 |
| Ashmore Emerging Markets Corporate Debt Fund | | | 1,051,616 | | | | 8,747,215 | | | 29,583 | | | 238,304 | | | | (321,534 | ) | | | (2,593,834 | ) | | | 759,665 | | | 6,391,685 |
| Ashmore Emerging Markets Short Duration Fund | | | 24,426 | | | | 233,026 | | | 607 | | | 5,786 | | | | (638 | ) | | | (6,111 | ) | | | 24,395 | | | 232,701 |
| Ashmore Emerging Markets Small-Cap Equity Fund | | | 17,930 | | | | 165,248 | | | 1,998 | | | 16,171 | | | | (22,829 | ) | | | (179,152 | ) | | | (2,901 | ) | | 2,267 |
| Ashmore Emerging Markets Frontier Equity Fund | | | 20,855 | | | | 184,873 | | | 1,836 | | | 15,350 | | | | (17,907 | ) | | | (150,407 | ) | | | 4,784 | | | 49,816 |
| Ashmore Emerging Markets Value Fund | | | 166 | | | | 1,469 | | | 14 | | | 106 | | | | (103 | ) | | | (881 | ) | | | 77 | | | 694 |
126
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
Transactions in Class C shares for the year ended October 31, 2015, 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 Total Return Fund | | | 16,641 | | | $ | 135,467 | | | 2,127 | | $ | 16,842 | | | | (77,084 | ) | | $ | (606,054 | ) | | | (58,316 | ) | | $ (453,745) |
| Ashmore Emerging Markets Hard Currency Debt Fund | | | - | | | | - | | | 7 | | | 60 | | | | - | | | | (1 | ) | | | 7 | | | 59 |
| Ashmore Emerging Markets Local Currency Bond Fund | | | - | | | | - | | | 170 | | | 1,261 | | | | (11,556 | ) | | | (89,208 | ) | | | (11,386 | ) | | (87,947) |
Ashmore Emerging Markets Corporate Debt Fund | | | 390,454 | | | | 3,209,392 | | | 10,344 | | | 82,821 | | | | (26,558 | ) | | | (217,068 | ) | | | 374,240 | | | 3,075,145 |
| Ashmore Emerging Markets Small-Cap Equity Fund | | | 28,802 | | | | 285,355 | | | 672 | | | 5,581 | | | | (115 | ) | | | (2,190 | ) | | | 29,359 | | | 288,746 |
Ashmore Emerging Markets Frontier Equity Fund | | | 7,207 | | | | 58,325 | | | 20 | | | 163 | | | | (411 | ) | | | (3,344 | ) | | | 6,816 | | | 55,144 |
| Ashmore Emerging Markets Value Fund | | | - | | | | - | | | 1 | | | 6 | | | | (1 | ) | | | (2 | ) | | | - | | | 4 |
|
Transactions in Institutional Class shares for the year ended October 31, 2015, 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 Total Return Fund | | | 24,952,218 | | | $ | 205,202,753 | | | 5,735,829 | | $ | 46,293,720 | | | | (70,866,061 | ) | | $ | (574,199,401 | ) | | | (40,178,014 | ) | | $ (322,702,928) |
Ashmore Emerging Markets Hard Currency Debt Fund | | | 3,068 | | | | 24,540 | | | 34,715 | | | 283,029 | | | | (19 | ) | | | (173 | ) | | | 37,764 | | | 307,396 |
Ashmore Emerging Markets Local Currency Bond Fund | | | 3,255,802 | | �� | | 25,527,892 | | | 360,809 | | | 2,728,864 | | | | (3,531,240 | ) | | | (27,486,797 | ) | | | 85,371 | | | 769,959 |
Ashmore Emerging Markets Corporate Debt Fund | | | 26,311,974 | | | | 225,278,466 | | | 539,048 | | | 4,510,756 | | | | (36,380,738 | ) | | | (313,241,806 | ) | | | (9,529,716 | ) | | (83,452,584) |
Ashmore Emerging Markets Short Duration Fund | | | 629,661 | | | | 6,078,581 | | | 67,772 | | | 633,585 | | | | (1,546 | ) | | | (14,226 | ) | | | 695,887 | | | 6,697,940 |
Ashmore Emerging Markets Small-Cap Equity Fund | | | 1,734,416 | | | | 19,772,641 | | | 151,609 | | | 1,538,338 | | | | (1,846,463 | ) | | | (19,255,004 | ) | | | 39,562 | | | 2,055,975 |
Ashmore Emerging Markets Frontier Equity Fund | | | 5,483,826 | | | | 51,905,275 | | | 75,083 | | | 701,587 | | | | (577,275 | ) | | | (5,409,544 | ) | | | 4,981,634 | | | 47,197,318 |
Ashmore Emerging Markets Value Fund | | | 75,640 | | | | 548,204 | | | 6,119 | | | 46,574 | | | | (159,381 | ) | | | (1,307,314 | ) | | | (77,622 | ) | | (712,536) |
Capital shares
Class A shares are issued at the Fund’s relevant NAV per share plus any applicable sales charge. Institutional Class and Class C 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 shareholder 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.
127
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
7. Investment transactions
For the year ended October 31, 2016, 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 Total Return Fund | | $ | 665,714,149 | | | $ | 497,254,594 | |
Ashmore Emerging Markets Hard Currency Debt Fund | | | 4,643,302 | | | | 3,678,533 | |
Ashmore Emerging Markets Local Currency Bond Fund | | | 45,837,035 | | | | 52,937,960 | |
Ashmore Emerging Markets Corporate Debt Fund | | | 176,142,055 | | | | 191,664,783 | |
Ashmore Emerging Markets Short Duration Fund | | | 135,894,529 | | | | 47,665,616 | |
Ashmore Emerging Markets Equity Opportunities Fund | | | 5,779,445* | | | | 740,060* | |
Ashmore Emerging Markets Small-Cap Equity Fund | | | 39,101,207 | | | | 50,432,938 | |
Ashmore Emerging Markets Frontier Equity Fund | | | 41,529,777 | | | | 36,992,072 | |
Ashmore Emerging Markets Value Fund | | | 10,574,233 | | | | 10,268,193 | |
*Transactions were with affiliated funds.
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 Total Return Fund | | $ | - | | | $ | (7,132,689 | ) | | $ | 7,132,689 | | | $ | - | |
Ashmore Emerging Markets Hard Currency Debt Fund | | | - | | | | (4,462 | ) | | | 4,462 | | | | - | |
Ashmore Emerging Markets Local Currency Bond Fund | | | (7,212,215 | ) | | | 964,126 | | | | 6,248,089 | | | | - | |
Ashmore Emerging Markets Corporate Debt Fund | | | - | | | | (73,571 | ) | | | 73,571 | | | | - | |
Ashmore Emerging Markets Short Duration Fund | | | - | | | | 41,681 | | | | (41,681 | ) | | | - | |
Ashmore Emerging Markets Equity Opportunities Fund | | | - | | | | 11 | | | | (11 | ) | | | - | |
Ashmore Emerging Markets Small-Cap Equity Fund | | | - | | | | 10,397 | | | | (10,397 | ) | | | - | |
Ashmore Emerging Markets Frontier Equity Fund | | | - | | | | (55,107 | ) | | | 55,107 | | | | - | |
Ashmore Emerging Markets Value Fund | | | - | | | | (814 | ) | | | 814 | | | | - | |
The Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted on December 22, 2010. The Act made changes to several tax rules affecting the Funds. 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.
128
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
The following Funds have available capital loss carryforwards for which there is no expiration date:
| | | | | | | | |
| Fund | | Short-Term Capital Loss
Carryforward at October 31,
2016 | | | Long-Term Capital Loss
Carryforward at October 31,
2016 | |
Ashmore Emerging Markets Total Return Fund | | $ | (10,401,299 | ) | | | $ (57,055,452 | ) |
Ashmore Emerging Markets Hard Currency Debt Fund | | | (872,187 | ) | | | (101,962 | ) |
Ashmore Emerging Markets Local Currency Bond Fund | | | (1,298,454 | ) | | | (2,029,767 | ) |
Ashmore Emerging Markets Corporate Debt Fund | | | (7,269,638 | ) | | | (28,525,914 | ) |
Ashmore Emerging Markets Short Duration Fund | | | - | | | | - | |
Ashmore Emerging Markets Equity Opportunities Fund | | | - | | | | - | |
Ashmore Emerging Markets Small-Cap Equity Fund | | | (2,603,614 | ) | | | (3,696,200 | ) |
Ashmore Emerging Markets Frontier Equity Fund | | | (3,189,060 | ) | | | (1,231,708 | ) |
Ashmore Emerging Markets Value Fund | | | (2,083,645 | ) | | | (977,125 | ) |
The Funds in the above table may offset future capital gains with these capital loss carryforwards. For the period subsequent to December 31, 2015 through the fiscal year ended October 31, 2016, the Ashmore Emerging Markets Local Currency Bond Fund incurred ordinary losses, which the Fund intends to treat as being incurred in the subsequent fiscal year of $3,498,049.
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. The Trust 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, the Trust 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.
129
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
As of October 31, 2016, 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 Total Return Fund | | $ | - | | | $ | - | | | $ | (68,580,318 | ) | | $ | 2,719,857 | | | $ | (65,860,461 | ) |
| Ashmore Emerging Markets Hard Currency Debt Fund | | | 20,058 | | | | - | | | | (992,141 | ) | | | 115,822 | | | | (856,261 | ) |
| Ashmore Emerging Markets Local Currency Bond Fund | | | - | | | | - | | | | (6,902,384 | ) | | | (2,242,762 | ) | | | (9,145,146 | ) |
| Ashmore Emerging Markets Corporate Debt Fund | | | 325,662 | | | | - | | | | (36,061,783 | ) | | | (14,931,398 | ) | | | (50,667,519 | ) |
| Ashmore Emerging Markets Short Duration Fund | | | 2,373,884 | | | | - | | | | (190,114 | ) | | | 4,085,981 | | | | 6,269,751 | |
| Ashmore Emerging Markets Equity Opportunities Fund | | | 22,592 | | | | - | | | | - | | | | 364,414 | | | | 387,006 | |
| Ashmore Emerging Markets Small-Cap Equity Fund | | | 335,838 | | | | - | | | | (6,299,814 | ) | | | 361,335 | | | | (5,602,641 | ) |
| Ashmore Emerging Markets Frontier Equity Fund | | | 217,832 | | | | - | | | | (4,426,875 | ) | | | 1,602,296 | | | | (2,606,747 | ) |
| Ashmore Emerging Markets Value Fund | | | 97,750 | | | | - | | | | (3,061,066 | ) | | | 934,332 | | | | (2,028,984 | ) |
The taxable character of distributions paid during the fiscal year ended October 31, 2016, 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 Total Return Fund | | $ | 24,214,140 | | | $ | - | | | $ | - | | | $ | 21,242,327 | | | $ | 45,456,467 | |
| Ashmore Emerging Markets Hard Currency Debt Fund | | | 389,800 | | | | - | | | | - | | | | - | | | | 389,800 | |
| Ashmore Emerging Markets Local Currency Bond Fund | | | - | | | | - | | | | - | | | | 3,588,979 | | | | 3,588,979 | |
| Ashmore Emerging Markets Corporate Debt Fund | | | 20,665,153 | | | | - | | | | - | | | | - | | | | 20,665,153 | |
| Ashmore Emerging Markets Short Duration Fund | | | 7,251,527 | | | | - | | | | - | | | | - | | | | 7,251,527 | |
| Ashmore Emerging Markets Equity Opportunities Fund | | | 66,934 | | | | - | | | | - | | | | - | | | | 66,934 | |
| Ashmore Emerging Markets Small-Cap Equity Fund | | | 717,817 | | | | - | | | | - | | | | - | | | | 717,817 | |
| Ashmore Emerging Markets Frontier Equity Fund | | | 747,288 | | | | - | | | | - | | | | - | | | | 747,288 | |
| Ashmore Emerging Markets Value Fund | | | 84,280 | | | | - | | | | - | | | | - | | | | 84,280 | |
130
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
The taxable character of distributions paid during the fiscal year ended October 31, 2015, 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 Total Return Fund | | $ | - | | | $ | - | | | $ | - | | | $ | 48,814,094 | | | $ | 48,814,094 | |
| Ashmore Emerging Markets Hard Currency Debt Fund | | | 262,903 | | | | - | | | | - | | | | 69,299 | | | | 332,202 | |
| Ashmore Emerging Markets Local Currency Bond Fund | | | - | | | | - | | | | - | | | | 3,524,581 | | | | 3,524,581 | |
| Ashmore Emerging Markets Corporate Debt Fund | | | 23,480,648 | | | | 1,986,134 | | | | - | | | | 2,469,373 | | | | 27,936,155 | |
| Ashmore Emerging Markets Short Duration Fund | | | 1,911,867 | | | | - | | | | - | | | | 21,104 | | | | 1,932,971 | |
| Ashmore Emerging Markets Small-Cap Equity Fund | | | 356,890 | | | | 399,095 | | | | 1,247,441 | | | | - | | | | 2,003,426 | |
| Ashmore Emerging Markets Frontier Equity Fund | | | 283,349 | | | | 792,229 | | | | - | | | | - | | | | 1,075,578 | |
| Ashmore Emerging Markets Value Fund | | | 60,098 | | | | - | | | | - | | | | 2,820 | | | | 62,918 | |
9. Distributions to shareholders
The Ashmore Emerging Markets Total Return Fund, Ashmore Emerging Markets Hard Currency Debt Fund, Ashmore Emerging Markets Local Currency Bond Fund, Ashmore Emerging Markets Corporate Debt 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 Opportunities Fund, Ashmore Emerging Markets Small-Cap Equity Fund, Ashmore Emerging Markets Frontier Equity Fund and Ashmore Emerging Markets Value 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.
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.
131
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
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. Purchased 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, in return for a premium, 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.
During the year ended October 31, 2016, the Funds did not hold 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.
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 United States 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
132
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
information on the impact of these positions on the Funds’ financial statements can be found in the notes to the Schedules of Investments.
During the year ended October 31, 2016, the Ashmore Emerging Markets Total Return Fund, Ashmore Emerging Markets Hard Currency Debt Fund, Ashmore Emerging Markets Local Currency Bond Fund, Ashmore Emerging Markets Corporate Debt Fund, Ashmore Emerging Markets Short Duration Fund, Ashmore Emerging Markets Small-Cap Equity Fund, Ashmore Emerging Markets Frontier Equity Fund and the Ashmore Emerging Markets Value Fund had average contract notional exposures of $2,607,396, $56,069, $528,350, $1,727,558, $624,388, $36,910, $73,701 and $29,527, 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 United States 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.
During the year ended October 31, 2016, 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 either 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 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. 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.
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 contracts. Unrealized gains are reported as an asset and unrealized losses are reported as a liability in the Statements of Assets and Liabilities for over the counter swaps. 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. 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.
133
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
During the year ended October 31, 2016, the Ashmore Emerging Markets Total Return Fund and Ashmore Emerging Markets Local Currency Bond Fund had average notional exposures of $38,350,595 and $12,034,690, 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, 2016:
(a) Exchange-Traded:
Centrally Cleared Swaps
| | | | | | | | | | | | | | | | | | | | | | |
Ashmore Emerging Markets Local Currency Bond Fund | |
| Counterparty | | Gross Amounts of
Derivatives Assets
Presented in the Statement of
Assets and Liabilities | | | Gross Amounts of
Derivatives Liabilities
Presented in the Statement of
Assets and Liabilities | | | | | Net Amounts | | | Collateral
(Received) Paid | | | Net
Exposure | |
Barclays | | $ | - | | | $ | (11,160 | ) | | | | $ | (11,160 | ) | | $ | - | | | $ | (11,160 | ) |
BNP Paribas | | | - | | | | (29,712 | ) | | | | | (29,712 | ) | | | - | | | | (29,712 | ) |
HSBC Bank | | | 20,896 | | | | - | | | | | | 20,896 | | | | - | | | | 20,896 | |
JP Morgan | | | 181 | | | | - | | | | | | 181 | | | | - | | | | 181 | |
London Clearing House | | | - | | | | (2,437 | ) | | | | | (2,437 | ) | | | - | | | | (2,437 | ) |
Morgan Stanley | | | - | | | | (57 | ) | | | | | (57 | ) | | | - | | | | (57 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 21,077 | | | $ | (43,366 | ) | | | | $ | (22,289 | ) | | $ | - | | | $ | (22,289 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
(b) Over-the-Counter Financial Derivative Instruments:
Forward Currency Contracts and Interest Rate Swap Contracts
| | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Total Return Fund | |
| Counterparty | | Gross Amounts of
Derivatives Assets
Presented in the Statement of
Assets and Liabilities | | | Derivatives available for offset | | | Collateral
Received | | | Net Amount Due
From Counterparty | |
ANZ | | $ | 28,901 | | | $ | (28,901 | ) | | $ | - | | | $ | - | |
Barclays | | | 455,981 | | | | (164,384 | ) | | | - | | | | 291,597 | |
BNP Paribas | | | 508,356 | | | | (508,356 | ) | | | - | | | | - | |
Citibank | | | 102,417 | | | | (102,417 | ) | | | - | | | | - | |
Credit Suisse | | | 55,951 | | | | (5,280 | ) | | | - | | | | 50,671 | |
Deutsche Bank | | | 338,453 | | | | (338,453 | ) | | | - | | | | - | |
Goldman Sachs | | | 197,257 | | | | (197,257 | ) | | | - | | | | - | |
HSBC Bank | | | 3,205,928 | | | | (1,503,849 | ) | | | - | | | | 1,702,079 | |
JP Morgan | | | 202,980 | | | | (202,980 | ) | | | - | | | | - | |
Merrill Lynch | | | 246,110 | | | | (246,110 | ) | | | - | | | | - | |
Santander | | | 90,597 | | | | (90,597 | ) | | | - | | | | - | |
UBS | | | 44,548 | | | | (44,548 | ) | | | - | | | | - | |
| | | | | | | | | | | | | | | | |
Total | | $ | 5,477,479 | | | $ | (3,433,132 | ) | | $ | - | | | $ | 2,044,347 | |
| | | | | | | | | | | | | | | | |
134
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Total Return Fund | |
| Counterparty | | Gross Amounts of
Derivatives Liabilities
Presented in the Statement of
Assets and Liabilities | | | Derivatives
available
for offset | | | Collateral Pledged | | | Net Amount Due
From Counterparty | |
ANZ | | $ | 154,686 | | | $ | (28,901 | ) | | $ | - | | | $ | 125,785 | |
Barclays | | | 164,384 | | | | (164,384 | ) | | | - | | | | - | |
BNP Paribas | | | 948,065 | | | | (508,356 | ) | | | - | | | | 439,709 | |
Citibank | | | 281,979 | | | | (102,417 | ) | | | - | | | | 179,562 | |
Credit Suisse | | | 5,280 | | | | (5,280 | ) | | | - | | | | - | |
Deutsche Bank | | | 402,263 | | | | (338,453 | ) | | | (63,810 | ) | | | - | |
Goldman Sachs | | | 1,420,417 | | | | (197,257 | ) | | | - | | | | 1,223,160 | |
HSBC Bank | | | 1,503,849 | | | | (1,503,849 | ) | | | - | | | | - | |
JP Morgan | | | 438,368 | | | | (202,980 | ) | | | - | | | | 235,388 | |
Merrill Lynch | | | 1,008,691 | | | | (246,110 | ) | | | - | | | | 762,581 | |
Morgan Stanley | | | 177,447 | | | | - | | | | (177,447 | ) | | | - | |
Santander | | | 553,368 | | | | (90,597 | ) | | | - | | | | �� 462,771 | |
UBS | | | 102,682 | | | | (44,548 | ) | | | - | | | | 58,134 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 7,161,479 | | | $ | (3,433,132 | ) | | $ | (241,257 | ) | | $ | 3,487,090 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Hard Currency Debt Fund | |
| Counterparty | | Gross Amounts of
Derivatives Assets
Presented in the Statement of
Assets and Liabilities | | | Derivatives
available
for offset | | | Collateral
Received | | | Net Amount Due
From Counterparty | |
Deutsche Bank | | $ | 170 | | | $ | - | | | $ | - | | | $ | 170 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 170 | | | $ | - | | | $ | - | | | $ | 170 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Local Currency Bond Fund | |
| Counterparty | | Gross Amounts of
Derivatives Assets
Presented in the Statement of
Assets and Liabilities | | | Derivatives
available
for offset | | | Collateral Received | | | Net Amount Due
From Counterparty | |
ANZ | | $ | 10,014 | | | $ | (10,014 | ) | | $ | - | | | $ | - | |
Barclays | | | 11,128 | | | | (11,128 | ) | | | - | | | | - | |
Baring Securities | | | 3,217 | | | | - | | | | - | | | | 3,217 | |
BNP Paribas | | | 283,815 | | | | (8,711 | ) | | | - | | | | 275,104 | |
Citibank | | | 16,849 | | | | (16,849 | ) | | | - | | | | - | |
Credit Suisse | | | 9,998 | | | | (995 | ) | | | - | | | | 9,003 | |
Deutsche Bank | | | 107,659 | | | | (50,513 | ) | | | - | | | | 57,146 | |
Goldman Sachs | | | 47,159 | | | | (34,384 | ) | | | - | | | | 12,775 | |
HSBC Bank | | | 622,238 | | | | (374,907 | ) | | | - | | | | 247,331 | |
JP Morgan | | | 35,932 | | | | (35,932 | ) | | | - | | | | - | |
Merrill Lynch | | | 44,774 | | | | (44,774 | ) | | | - | | | | - | |
Santander | | | 19,652 | | | | (19,652 | ) | | | - | | | | - | |
UBS | | | 4,536 | | | | (4,536 | ) | | | - | | | | - | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,216,971 | | | $ | (612,395 | ) | | $ | - | | | $ | 604,576 | |
| | | | | | | | | | | | | | | | |
135
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
| | | | | | | | | | | | | | | | |
| Ashmore Emerging Markets Local Currency Bond Fund | |
| Counterparty | | Gross Amounts of
Derivatives Liabilities
Presented in the Statement of
Assets and Liabilities | | | Derivatives
available
for offset | | | Collateral Pledged | | | Net Amount Due
From Counterparty | |
ANZ | | $ | 10,614 | | | $ | (10,014 | ) | | $ | - | | | $ | 600 | |
Barclays | | | 29,495 | | | | (11,128 | ) | | | - | | | | 18,367 | |
BNP Paribas | | | 8,711 | | | | (8,711 | ) | | | - | | | | - | |
Citibank | | | 45,074 | | | | (16,849 | ) | | | - | | | | 28,225 | |
Credit Suisse | | | 995 | | | | (995 | ) | | | - | | | | - | |
Deutsche Bank | | | 50,513 | | | | (50,513 | ) | | | - | | | | - | |
Goldman Sachs | | | 34,384 | | | | (34,384 | ) | | | - | | | | - | |
HSBC Bank | | | 374,907 | | | | (374,907 | ) | | | - | | | | - | |
JP Morgan | | | 67,867 | | | | (35,932 | ) | | | - | | | | 31,935 | |
Merrill Lynch | | | 188,529 | | | | (44,774 | ) | | | - | | | | 143,755 | |
Morgan Stanley | | | 31,572 | | | | - | | | | (31,572 | ) | | | - | |
Santander | | | 178,087 | | | | (19,652 | ) | | | - | | | | 158,435 | |
UBS | | | 18,051 | | | | (4,536 | ) | | | - | | | | 13,515 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,038,799 | | | $ | (612,395 | ) | | $ | (31,572 | ) | | $ | 394,832 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Ashmore Emerging Markets Corporate Debt Fund | |
| Counterparty | | Gross Amounts of
Derivatives Assets
Presented in the Statement of
Assets and Liabilities | | | Derivatives
available
for offset | | | Collateral Received | | | Net Amount Due
From Counterparty | |
Deutsche Bank | | $ | 14,255 | | | $ | - | | | $ | - | | | $ | 14,255 | |
Morgan Stanley | | | 2,862 | | | | - | | | | - | | | | 2,862 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 17,117 | | | $ | - | | | $ | - | | | $ | 17,117 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Ashmore Emerging Markets Short Duration Fund | |
| Counterparty | | Gross Amounts of
Derivatives Assets
Presented in the Statement of
Assets and Liabilities | | | Derivatives
available
for offset | | | Collateral Received | | | Net Amount Due
From Counterparty | |
Deutsche Bank | | $ | 8,027 | | | $ | - | | | $ | - | | | $ | 8,027 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 8,027 | | | $ | - | | | $ | - | | | $ | 8,027 | |
| | | | | | | | | | | | | | | | |
136
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
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 Total Return Fund | | | 1.00 | % |
Ashmore Emerging Markets Hard Currency Debt Fund | | | 0.90 | % |
Ashmore Emerging Markets Local Currency Bond Fund | | | 0.95 | % |
Ashmore Emerging Markets Corporate Debt Fund | | | 1.15 | % |
Ashmore Emerging Markets Short Duration Fund | | | 0.65 | % |
Ashmore Emerging Markets Equity Opportunities Fund | | | 0.00 | % |
Ashmore Emerging Markets Small-Cap Equity Fund | | | 1.50 | % |
Ashmore Emerging Markets Frontier Equity Fund | | | 1.50 | % |
Ashmore Emerging Markets Value Fund | | | 1.15 | % |
The Investment Manager has contractually agreed to waive its fees or reimburse each Fund for other expenses until February 28, 2017, 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.
| | | | | | | | | | | | | | | |
| Fund | | Class A | | Class C | | Institutional
Class |
Ashmore Emerging Markets Total Return Fund | | | | 1.27% | | | | | 2.02% | | | | | 1.02% | |
Ashmore Emerging Markets Hard Currency Debt Fund | | | | 1.17% | | | | | 1.92% | | | | | 0.92% | |
Ashmore Emerging Markets Local Currency Bond Fund | | | | 1.22% | | | | | 1.97% | | | | | 0.97% | |
Ashmore Emerging Markets Corporate Debt Fund | | | | 1.42% | | | | | 2.17% | | | | | 1.17% | |
Ashmore Emerging Markets Short Duration Fund | | | | 0.92% | | | | | — % | | | | | 0.67% | |
Ashmore Emerging Markets Equity Opportunities Fund | | | | 0.30% | | | | | 1.05% | | | | | 0.05% | |
Ashmore Emerging Markets Small-Cap Equity Fund | | | | 1.77% | | | | | 2.52% | | | | | 1.52% | |
Ashmore Emerging Markets Frontier Equity Fund | | | | 1.77% | | | | | 2.52% | | | | | 1.52% | |
Ashmore Emerging Markets Value Fund | | | | 1.42% | | | | | — % | | | | | 1.17% | |
137
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
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 amounts recaptured pursuant to the expense limitation agreement will be limited to the lesser of (1) the expense limitation amount that was in effect at the time of the waiver or reimbursement or (2) the expense limitation amount that is in effect at the time of recapture. The total amounts subject to recovery in fiscal years are shown below:
| | | | | | | | | | | | | | | | |
| Fund | | 2017 | | | 2018 | | | 2019 | | | Total | |
Ashmore Emerging Markets Total Return Fund | | $ | 875,987 | | | $ | 768,326 | | | $ | 833,414 | | | $ | 2,477,727 | |
Ashmore Emerging Markets Hard Currency Debt Fund | | | 165,889 | | | | 138,561 | | | | 107,042 | | | | 411,492 | |
Ashmore Emerging Markets Local Currency Bond Fund | | | 282,751 | | | | 255,183 | | | | 250,550 | | | | 788,484 | |
Ashmore Emerging Markets Corporate Debt Fund | | | 296,575 | | | | 353,990 | | | | 335,299 | | | | 985,864 | |
Ashmore Emerging Markets Short Duration Fund | | | 155,228 | | | | 192,324 | | | | 150,467 | | | | 498,019 | |
Ashmore Emerging Markets Equity Opportunities Fund | | | - | | | | - | | | | 218,458 | | | | 218,458 | |
Ashmore Emerging Markets Small-Cap Equity Fund | | | 328,428 | | | | 268,940 | | | | 216,973 | | | | 814,341 | |
Ashmore Emerging Markets Frontier Equity Fund | | | 298,073 | | | | 243,042 | | | | 266,211 | | | | 807,326 | |
Ashmore Emerging Markets Value Fund | | | 217,452 | | | | 187,166 | | | | 131,748 | | | | 536,366 | |
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 | | Subadviser Fee |
Ashmore Emerging Markets Small-Cap Equity Fund | | 1.20% |
Ashmore Emerging Markets Frontier Equity Fund | | 1.20% |
Ashmore Emerging Markets Value Fund | | 0.92% |
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 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% |
Cross Trades
The 1940 Act prohibits the Funds and their affiliates from knowingly selling any security or other property to the Funds (other than securities of which the buyer is the issuer), or buying any security (other than securities of which the seller is the issuer) or other property from the Funds. Rule 17a-7 under the 1940 Act provides relief from these prohibitions for various types of “cross trades” and similar transactions that may benefit shareholders by allowing the participating funds or accounts to avoid brokerage commissions and other transaction costs of trades.
138
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
During the year ended October 31, 2016, the following Funds bought and/or sold securities from an account or accounts that were also advised by the Trust’s investment adviser or its affiliates:
| | | | | | | | |
| Fund | | Purchases | | | Sales | |
Ashmore Emerging Markets Total Return Fund | | $ | - | | | $ | 251,577 | |
Ashmore Emerging Markets Corporate Debt Fund | | | 2,495,641 | | | | 1,786,725 | |
Ashmore Emerging Markets Short Duration Fund | | | 2,077,925 | | | | - | |
Investor Ownership
On November 19, 2010, Ashmore Emerging Markets Total Return Fund, Ashmore Emerging Markets Hard Currency Debt Fund, Ashmore Emerging Markets Local Currency Bond Fund, and Ashmore Emerging Markets Corporate Debt Fund were seeded. On June 22, 2011, Ashmore Emerging Markets Value 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. On November 22, 2015, Ashmore Emerging Markets Equity Opportunities 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, which was seeded with $20 million, and the Ashmore Emerging Markets Equity Opportunities Fund and the Ashmore Emerging Markets Frontier Equity Fund, which were seeded with $5 million, respectively.
As of October 31, 2016, Ashmore Investments UK Limited owned the following percentages of the outstanding shares of each Fund:
| | | | | | | | |
| Fund | | Class A | | | Class C | |
Ashmore Emerging Markets Equity Opportunites Fund | | | 100.00 | % | | | 100.00 | % |
| | | | | | | | |
| Fund | | Institutional
Class | | | | |
Ashmore Emerging Markets Hard Currency Debt Fund | | | 96.67 | % | | | | |
Ashmore Emerging Markets Short Duration Fund | | | 48.54 | % | | | | |
Ashmore Emerging Markets Equity Opportunities Fund | | | 97.89 | % | | | | |
Ashmore Emerging Markets Frontier Equity Fund | | | 36.91 | % | | | | |
Ashmore Emerging Markets Value Fund | | | 63.13 | % | | | | |
In addition to the Ashmore Investments UK Limited ownership, shown in the table above, the following Funds had other investors owning of record or known by the Funds to own beneficially greater than 5% of the outstanding shares of such Funds:
| | | | | | |
| Fund | | Class | | # of Investors
Owning > 5%
of outstanding
Shares | | % of Ownership by
Investor |
Ashmore Emerging Markets Total Return Fund | | Class A | | 3 | | 19.63%, 15.26%, 12.66% |
| | Class C | | 1 | | 67.03% |
| | Class I | | 5 | | 8.87%, 7.71%, 7.19%, 5.77%, 5.40% |
139
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
| | | | | | |
| Fund | | Class | | # of Investors
Owning > 5%
of outstanding
Shares | | % of Ownership by
Investor |
Ashmore Emerging Markets Hard Currency Debt Fund | | Class A | | 6 | | 28.85%, 13.86%, 6.63%, 5.73%, 5.16%, 5.05% |
| | Class C | | 2 | | 63.38%, 36.62% |
Ashmore Emerging Markets Local Currency Bond Fund | | Class A | | 5 | | 46.51%, 25.35%, 8.23%, 5.72%, 5.11% |
| | Class C | | 4 | | 54.41%, 26.67%, 8.11%, 6.76% |
| | Class I | | 3 | | 45.48%, 25.65%, 22.46% |
Ashmore Emerging Markets Corporate Debt Fund | | Class A | | 1 | | 31.16% |
| | Class C | | 1 | | 45.77% |
| | Class I | | 1 | | 5.23% |
| | | | |
Ashmore Emerging Markets Short Duration Fund | | Class A | | 1 | | 95.43% |
| | Class I | | 1 | | 43.45%* |
Ashmore Emerging Markets Small-Cap Equity Fund | | Class A | | 5 | | 60.15%, 6.71%, 6.29%, 5.53%, 5.19% |
| | Class C | | 5 | | 37.73%, 18.10%, 8.00%, 6.15%, 5.26% |
| | Class I | | 5 | | 17.47%, 17.31%, 9.24%, 8.92%, 7.31% |
Ashmore Emerging Markets Frontier Equity Fund | | Class A | | 1 | | 96.67% |
| | Class C | | 5 | | 32.16%, 28.64%, 25.46%, 7.80%, 5.94% |
| | Class I | | 1 | | 55.93% |
| * | Ownership is by an affiliate of the Fund. |
140
ASHMORE FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
As of October 31, 2016
| | | | | | |
| Fund | | Class | | # of Investors
Owning > 5%
of outstanding
Shares | | % of Ownership by
Investor |
Ashmore Emerging Markets Value Fund | | Class A | | 5 | | 33.65%, 27.53%, 24.31%, 7.36%, 7.15% |
| | Class I | | 2 | | 20.65%, 15.10% |
12. Commitments
In relation to its investments, some of the Funds of the Trust may from time to time agree to indemnify and/or pre-fund trustees or other agents, either solely or alongside other creditors on a several basis. Generally, such agreements do not have a termination date. The Trustees are not aware of and do not currently expect any claims to be made against the Funds under any such indemnity or pre-funding agreements.
13. Subsequent events
On November 1, 2016, the Trust launched the Ashmore Emerging Markets Active Equity Fund by offering Class A, Class C and Institutional Class shares of the Fund.
Effective November 1, 2016, the Ashmore Emerging Markets Local Currency Bond Fund will declare and pay distributions on net investment income on at least a quarterly basis.
The Trust 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, other than the items mentioned above.
141
ASHMORE FUNDS
ADVISORY AND SUBADVISORY AGREEMENT APPROVAL
As of April 30, 2016 (Unaudited)
ADVISORY AND SUBADVISORY AGREEMENT APPROVAL
At an in-person meeting of the Board of Trustees of Ashmore Funds (the “Trust”) held on September 23, 2015, 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 Advisors Limited (“AIAL”) and the Trust, on behalf of Ashmore Emerging Markets Equity Opportunities Fund (the “Fund”) and the Sub-Advisory Agreement between AIAL and Ashmore Equities Investment Management (US) LLC, an affiliate of AIAL (“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 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 AIAL had provided, certain information the Independent Trustees considered relevant to their evaluation. The Contracts Review Committee of the Board, which is comprised of all of the Independent Trustees, discussed the information over the course of multiple occasions, without representatives of AIAL or AEIM present.
Among the information and factors considered by the Board in evaluating the Agreements were the following:
NATURE, QUALITY AND EXTENT OF INVESTMENTMANAGEMENT SERVICES
The Board considered that the Fund would be structured as a “fund of funds” and would normally invest substantially all of its assets in affiliated underlying funds, which are also managed by AIAL and subadvised by AEIM (the “Underlying Funds”). Therefore, the Board examined the nature, quality and extent of the services expected to be provided by AIAL and AEIM to the Fund and Underlying Funds.
AIAL’s and AEIM’s Services
The Board considered information regarding the overall organization and resources of AIAL, including information regarding senior management, portfolio managers and other personnel expected to provide investment management, administrative and other services to the Fund and Underlying Funds. The Board reviewed AIAL’s key personnel who were expected to provide services to the Fund and Underlying Funds, as well as the fact that, under the Agreements, AIAL 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 AIAL’s or its delegates’ duties would include: (i) investment research and selection, (ii) adherence to (and monitoring compliance with) the Fund’s and Underlying Funds’ respective investment policies and restrictions, the 1940 Act and other relevant laws; (iii) supervision of the investment management and other services provided by AEIM to the Fund and applicable Underlying Funds; and (iv) 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 AIAL (except to the extent such salaries, fees and expenses are paid by another AIAL affiliate other than the Trust or a Fund). The Board also evaluated the significant compliance resources available to and utilized by AIAL and AEIM.
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 and applicable Underlying Funds, its investment philosophy, style and processes, its approach to controlling
142
ASHMORE FUNDS
ADVISORY AND SUBADVISORY AGREEMENT APPROVAL (CONTINUED)
As of April 30, 2016 (Unaudited)
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 AIAL’s affiliated relationship with AEIM. The Board reviewed information concerning the back-tested investment results of the proposed strategy as compared with the Fund’s proposed performance benchmark index. The Board noted that the back-tested results were favorable in comparison to the performance benchmark index over the trailing two-, three- and four-year periods ended June 30, 2015.
The Board concluded that it was satisfied with the nature, extent and quality of services expected to be provided by AIAL to the Fund and Underlying Funds and that there was a reasonable basis on which to conclude that the Fund would benefit from the services provided by AIAL. The Board separately concluded that it was satisfied with the nature, extent and quality of services expected to be provided to the Fund and applicable Underlying Funds 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 contractual and actual investment management fees to be paid by the Fund to AIAL. The Board observed that, as a fund of funds, the Fund would not pay investment management fees directly to AIAL. The Board considered that AIAL would instead benefit from the payment of investment advisory fees by the applicable Underlying Funds in proportion to the Fund’s investments in the Underlying Funds, and that it had previously approved those fees. The Board further considered that AIAL had contractually agreed to waive its fees or reimburse the Fund to the extent the Fund’s total annual operating expenses exceed five basis points (excluding Rule 12b-1 fees and acquired fund fees and expenses).
The Board further observed that AIAL would not pay investment subadvisory fees to AEIM separately from those paid in connection with AEIM’s investment management services provided to the applicable Underlying Funds.
The Board reviewed AIAL’s projected costs and profitability as presented by it in serving as investment adviser to the Fund.
In evaluating the terms of the Agreements, the Board also considered the other benefits that may inure to AIAL and AEIM as a result of their relationship with the Fund, such as the reputational benefit derived from serving as investment adviser or subadviser to the Fund.
In light of the information provided and the quality of the services rendered and anticipated to be rendered, the Board concluded that the investment management fees to be paid indirectly to the Fund by AIAL through its investment in the applicable Underlying Funds, and the fees to be paid by AIAL to AEIM in connection with the investment advisory services provided by AEIM to applicable Underlying Funds were appropriate.
ECONOMIES OF SCALE
The Board observed that the Fund will not directly pay investment management fees, and therefore considered that any economies of scale the Fund may benefit from would occur at the Underlying Fund level. The Board noted that it had previously considered the existence of any economies of scale experienced by the applicable Underlying Funds and intends to monitor the Underlying Funds’ asset growth in connection with future reviews of the Underlying Funds’ investment advisory agreements.
* * *
The Board concluded that the fees to be paid indirectly to AIAL by the Fund through its investment in the applicable Underlying Funds, and the fees to be paid by AIAL to AEIM in connection with the investment advisory services provided by AEIM to applicable Underlying Funds, were appropriate in light of the services to be provided by AIAL and AEIM, respectively and the expected costs to AIAL of operating the Fund, and determined that the Agreements should, therefore, be approved.
143
ASHMORE FUNDS
SUPPLEMENTARY INFORMATION
As of October 31, 2016 (Unaudited)
REMUNERATION DISCLOSURE
Ashmore Investment Advisors Limited (“AIAL”) is a full-scope UK Alternative Investment Fund Manager (“AIFM”) that manages many alternative investment funds (“AIFs”). These AIFs implement a number of investment strategies including equity, fixed income and alternatives investment strategies and invest in many different regions and industry sectors. AIAL manages both open-ended and closed-ended AIFs. Many of its AIFs are leveraged and some are listed on regulated markets. Its assets under management was approximately US 8.5bn as of October 31, 2016. AIAL’s parent company (“Ashmore”) is listed on a regulated market, counts fourteen offices worldwide and has a number of subsidiaries both in the UK and abroad. Taking into account guidance from the UK Financial Conduct Authority (“FCA”), AIAL has complied with the full AIFM Remuneration Code.
AIAL does not have any direct employees, and as such the amount of remuneration paid to staff by AIAL is zero. All AIAL AIFM Remuneration Code Staff are employed and paid by Ashmore. Ashmore’s remuneration principles have remained unchanged since it was listed, and are designed to align all employees’ incentives with the long-term success of the business. These include significant levels of remuneration deferral, a clear link between performance and levels of remuneration and strong alignment of executive directors and employees with shareholders and clients through significant employee share ownership.
Executive directors, members of the investment team, and indeed all other employees, participate in a single capped incentive pool and are paid under a similar structure, with an annual cash bonus and share award. This remuneration structure allows employees to become long-term shareholders in the business.
The policy includes:
–– A capped basic salary to contain the fixed cost base;
–– A cap on the total variable compensation including any awards made under Ashmore’s share plan, available for all employees at 25% of profits, which to date has not been fully utilized; and
–– A deferral for five years of a substantial portion of variable compensation paid in Ashmore shares (or equivalent), which, in the case of executive directors in lieu of a separate long term investment plan, is also partly subject to additional performance conditions measured over five years.
AIAL’s board of directors reviews the general principles of the remuneration policy and is responsible for its implementation with regard to AIAL’s AIFM Remuneration Code Staff. Ashmore’s Remuneration Committee periodically reviews the ongoing appropriateness and relevance of the remuneration policy, including in connection with the provision of services to AIAL. Ashmore employs the services of McLagan to provide advice on remuneration benchmarking. Deloitte provides advice on tax compliance and share plan design and administration. Hewitt New Bridge Street serves as advisors to the Remuneration Committee. The Remuneration Committee’s terms of reference can be found here:
http://www.ashmoregroup.com/investor-relations/corporate-governance.
Performance assessment for AIAL’s AIFM Remuneration Code Staff for their work relating to AIAL is based on a combination of quantitative and qualitative criteria related to the performance of AIAL, the performance of relevant AIF(s) or business units and the performance of the individual. Qualitative criteria include adherence to Ashmore Group plc’s risk and compliance policies. This performance assessment is adjusted for relevant current and future risks related to the AIFs managed by AIAL.
The compensation of control function staff is based on function specific objectives and is independent from the performance of AIAL and/or the AIFs managed by AIAL. The remuneration of the senior officers in AIAL’s control functions is directly overseen by the Remuneration Committee.
144
ASHMORE FUNDS
SUPPLEMENTARY INFORMATION (CONTINUED)
As of October 31, 2016 (Unaudited)
Variable remuneration awarded to AIAL’s Remuneration Code Staff in respect of the Alternative Investment Fund Managers Directive 2011/61/EU (AIFMD) is subject to performance adjustment which allows Ashmore to reduce the deferred amount, including to zero, in light of the ongoing financial situation and/or performance of Ashmore, AIAL, the AIFs that AIAL manages and the individual concerned.
The total contribution of AIAL’s AIFM Remuneration Code Staff to the business of Ashmore is apportioned between work carried out for AIAL and work carried out for the other businesses and subsidiaries of Ashmore. Their remuneration is similarly apportioned between AIAL and the other businesses and subsidiaries where required.
The remuneration attributable to AIAL for its AIFMD identified staff for the financial year ended October 31, 2016 was as follows:
| | | | | | | | | | | | | | |
| Fund | | Number of Beneficiaries | | Variable
Remuneration | | | Fixed
Remuneration | | | Total
Remuneration | |
Ashmore Emerging Markets Total Return Fund | | 20 | | $ | 246,723 | | | $ | 42,949 | | | $ | 289,672 | |
Ashmore Emerging Markets Hard Currency Debt Fund | | 20 | | | 1,814 | | | | 327 | | | | 2,141 | |
Ashmore Emerging Markets Local Currency Bond Fund | | 20 | | | 18,544 | | | | 3,612 | | | | 22,156 | |
Ashmore Emerging Markets Corporate Debt Fund | | 20 | | | 78,006 | | | | 14,371 | | | | 92,377 | |
Ashmore Emerging Markets Short Duration Fund | | 20 | | | 25,883 | | | | 4,769 | | | | 30,652 | |
Ashmore Emerging Markets Equity Opportunities Fund | | 20 | | | 812 | | | | 239 | | | | 1,051 | |
Ashmore Emerging Markets Small-Cap Equity Fund | | 20 | | | 4,777 | | | | 1,405 | | | | 6,182 | |
Ashmore Emerging Markets Frontier Equity Fund | | 20 | | | 7,988 | | | | 2,349 | | | | 10,337 | |
Ashmore Emerging Markets Value Fund | | 20 | | | 1,415 | | | | 416 | | | | 1,831 | |
Total AIAL | | 20 | | $ | 1,584,014 | | | $ | 298,617 | | | $ | 1,882,631 | |
All of the remuneration above was attributable to senior management who have a material impact on the Funds’ risk profile. The Funds’ allocation of the AIAL remuneration has been made on the basis of each Fund’s NAV.
145
ASHMORE FUNDS
FOR MORE INFORMATION
As of October 31, 2016
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. In addition, no later than thirty calendar days after the end of each calendar quarter, a list of all portfolio holdings in each Fund as of the end of such calendar quarter is made available at www.ashmoregroup.com.
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.
146
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.
147
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 Small-Cap Equity Fund,
Ashmore Emerging Markets Frontier Equity Fund
and Ashmore Emerging Markets Value Fund
Ashmore Equities Investment Management (US) L.L.C.
475 Fifth Avenue
15th Floor
New York, New York 10017
212-661-0061
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
475 Fifth Avenue
15th Floor
New York, New York 10017
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
148
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 58) | | Trustee; Lead Independent Trustee | | Indefinite term; Trustee since inception in 2010 | | Freshfields Bruckhaus Deringer (a law firm) from 1982 to 2009 (Partner from 1999). | | 9 | | Non-executive director August 2010 – October 2015, Jasper Investments Limited; Non-executive director from May 2010 - February 2012, Pacnet Limited(1). |
Michael Chamberlin (Age 67) | | Trustee | | Indefinite term; Trustee since 2012 | | Executive Director, Emerging Markets Traders Association(2). | | 9 | | None |
Joseph Grainger (Age 62) | | 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 have controlled Jasper Investments Limited through September 2015 and Pacnet Limited through April 2015. Employees and officers of affiliates of the Investment Manager have served 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’s parent company, Ashmore Group, is a member of the EMTA. Mr. Coombs is the Investment Manager’s Chief Executive Officer. |
149
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 53) | | 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 56) | | Trustee | | Indefinite term; Trustee since 2014 | | CCO of Trinity Street Asset Management LLP, a UK private asset manager, 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. | | 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, the parent company of Ashmore Investment Advisors Limited. 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. |
150
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 53) | | 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 59) | | Secretary | | Indefinite term; since inception | | Company Secretary since March 2008, Ashmore Group plc. |
Alexandra Autrey (Age 40) | | 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. |
Christopher Tsutsui (Age 52) | | 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 plc, from July 2012 - June 2014. |
Brian Rowe (Age 50) | | Chief Compliance Officer | | Indefinite term; since November 2015 | | Group Head of Compliance, Ashmore Group plc, since January 2014; Global Head of Compliance, Henderson Global Investors from 2006 - 2013. |
Owen Meacham (Age 45) | | 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 43) | | 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. |
151
Item 2. Code of Ethics.
| (a) | As of October 31, 2016, 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. |
| (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 $217,620 in 2016 and $213,000 in 2015.
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 $37,800 in 2016 and $49,050 in 2015.
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 $37,800 for 2016 and $49,050 for 2015.
Item 4(h): Non-Audit Services and Independent Accountant’s Independence
3
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. |
| (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 |
4
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. |
| |
| (a)(3) | | Not applicable. |
| |
| (b) | | Exhibit 99.906 CERT: Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
5
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: April 6, 2017
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: April 6, 2017
| | |
| By | | /s/ Chris Tsutsui |
| | Chris Tsutsui, Treasurer (Principal Financial and Accounting Officer) |
Date: April 6, 2017
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