Ashmore Emerging Markets Short Duration Fund Class A (ESFAX)

Overview

The fund focuses on investing primarily in short-term debt and derivative instruments tied to sovereign, quasi-sovereign, and corporate issuers from emerging markets. These investments are unique in that they are denominated exclusively in hard currencies, such as the U.S. dollar or currencies from G-7 nations. The objective is to strike a balance in the portfolio, maintaining a weighted average duration of between one to three years. This strategic approach allows for flexibility, as there are no restrictions on the duration of individual securities within the fund. Additionally, it operates under a non-diversified status, indicating a targeted investment strategy focused on maximizing returns from select financial instruments and markets.

Products and Services

The fund offers a specialized investment strategy focusing on short-term debt and derivative instruments within emerging markets, centered around various services and investment avenues:

• Investment in Short-term Debt Instruments

  This service involves the allocation of assets into short-term debt securities issued by sovereign, quasi-sovereign, and corporate entities from emerging market countries. The unique aspect of these investments is their denomination in hard currencies, offering a potentially more stable investment in fluctuating markets.

• Derivative Instruments Related to Emerging Markets

  The fund engages in derivative transactions that are specifically related to the financial instruments of emerging market countries. These derivatives are used as tools for both hedging risks and speculating on future changes in market prices, denominated in hard currencies to align with the fund’s primary focus.

• Maintenance of Weighted Average Portfolio Duration

  An essential part of the fund's strategy is its disciplined approach to maintaining a weighted average portfolio duration of between one and three years. This approach limits exposure to interest rate risk while aiming to provide investors with higher liquidity compared to longer-duration investments.

• Flexibility in Security Duration

  Despite the overall strategy to maintain a specific portfolio duration, the fund offers flexibility in terms of the duration of individual securities. This means that there is no upper or lower limit on how long any given security can remain in the portfolio, allowing for strategic adjustments based on market conditions and opportunities.

• Non-Diversified Investment Approach

  As a non-diversified fund, this investment vehicle does not spread its investments across a wide range of issuers. Instead, it focuses on a select group of issuers and instruments, potentially allowing for more significant individual investments and, consequently, higher risk and return profiles.