Ashmore Emerging Markets Short Duration Fund Institutional Class (ESFIX)

Overview

This fund primarily focuses on generating returns by investing in a mix of short-term debt and derivative instruments. These investments are associated with Sovereign, Quasi-Sovereign, and corporate issuers from Emerging Market Countries but are distinct in being denominated exclusively in Hard Currencies. Hard Currencies are defined as the U.S. dollar or the currencies of nations within the G-7, which includes the world's largest IMF advanced economies. The fund strives to maintain a balance, ensuring its portfolio has a weighted average duration of between one and three years. Despite this objective, there is flexibility in the duration of individual securities, allowing the fund to adapt to changing market conditions. It operates as a non-diversified fund, indicating it may concentrate its investments in a smaller number of issuers compared to diversified funds.

Products and Services

• Short-term Debt Instruments Investment

  The fund invests primarily in short-term debt instruments issued by Sovereign, Quasi-Sovereign, and corporate entities in Emerging Market Countries. These instruments offer investors exposure to foreign markets while attempting to mitigate risk through their short-term nature.

• Derivative Instruments Related to Emerging Markets

  Derivative instruments, which may include futures, options, and swaps, are used to gain exposure to the emerging market sectors. These instruments are related to the debt issuances of Sovereign, Quasi-Sovereign, and corporate entities and are denominated in hard currencies. This strategy seeks to enhance returns or provide a hedge against currency or interest rate movements.

• Hard Currency Denomination

  The exclusive investment in hard currency-denominated instruments shields investors from the currency volatility often associated with emerging markets. Focusing on the U.S. dollar and G-7 nation currencies, the fund aims to provide more stable returns in environments of local currency depreciation.

• Portfolio Duration Management

  The fund actively manages its portfolio to maintain a weighted average duration of between one and three years. This approach aims to balance the interest rate risk with the potential for return, aligning with the fund's short-term investment strategy.

• Non-Diversified Status

  As a non-diversified fund, it may invest a larger portion of its assets in fewer issuers than a diversified fund. This strategy can lead to higher volatility and risk; however, it allows the fund to take advantage of significant opportunities within the emerging markets sector.