Ashmore Emerging Markets Equity Ex China Fund Class A (EMXAX)

Overview

The fund is dedicated to investing in the burgeoning markets of the emerging world, with a strategic focus on equity securities and equity-related investments. Distinctively, it carves out a niche by excluding investment opportunities in China, setting a unique investment strategy within the realm of emerging market funds. This approach is complemented by its openness to investments in various currencies, including those local to the issuers, providing a diversified currency exposure. The fund's operations are spearheaded by an advisory team skilled in deploying derivative instruments and strategies, further expanding its reach and flexibility in achieving its investment objectives.

Products and Services

The fund's offering encompasses a nuanced array of investment vehicles and strategies aimed at navigating the complex landscape of emerging markets. Here are the key components:

• Equity Securities of Emerging Market Issuers: The cornerstone of the fund’s strategy lies in its investments in equity securities. These are shares or stock options in companies based in emerging markets, offering investors a direct stake in the growth prospects of these economies. By focusing on issuers outside of China, the fund carves out a distinctive niche in the emerging markets space, aiming to capture growth in regions that may be overlooked by China-centric investors.
• Equity-Related Investments: Beyond traditional equity securities, the fund diversifies its portfolio with equity-related investments. These can include but are not limited to, convertible securities, warrants, and equity derivatives. This approach allows the fund to adapt its exposure to different market conditions and potential upside opportunities in emerging markets while maintaining a flexible investment strategy.
• Derivative Instruments and Strategies: A notable feature of the fund’s strategy is the use of derivative instruments and related strategies. Derivatives may be used for a variety of purposes, including hedging against currency or market risks, leveraging investment positions, or gaining exposure to certain assets or issuers without direct investment. This component underscores the fund’s proactive and sophisticated approach to navigating the emerging markets.
• Currency Diversification: The fund’s openness to investments denominated in any currency, including the local currency of the issuer, presents a significant advantage. This currency diversification strategy not only mitigates the risk of currency fluctuations but also allows the fund to capture additional gains from currency movements, providing an extra layer of potential return for investors.