0001391673 shif:S000017756Member shif:C000049026Member 2011-10-01 2012-09-30 0001391673 shif:S000017755Member shif:C000049024Member 2011-10-01 2012-09-30 0001391673 shif:S000017755Member 2011-10-01 2012-09-30 0001391673 shif:S000017756Member 2011-10-01 2012-09-30 0001391673 shif:S000029052Member shif:C000089234Member 2011-10-01 2012-09-30 0001391673 shif:S000029052Member 2011-10-01 2012-09-30 0001391673 shif:S000017755Member shif:C000049025Member 2011-10-01 2012-09-30 0001391673 shif:S000030472Member 2011-10-01 2012-09-30 0001391673 shif:S000017756Member shif:C000049027Member 2011-10-01 2012-09-30 0001391673 shif:S000029052Member shif:C000089233Member 2011-10-01 2012-09-30 0001391673 shif:S000030472Member shif:C000093626Member 2011-10-01 2012-09-30 0001391673 shif:S000030472Member shif:C000093627Member 2011-10-01 2012-09-30 0001391673 2011-10-01 2012-09-30 0001391673 shif:S000017755Member rr:AfterTaxesOnDistributionsMember shif:C000049024Member 2011-10-01 2012-09-30 0001391673 shif:S000017755Member rr:AfterTaxesOnDistributionsAndSalesMember shif:C000049024Member 2011-10-01 2012-09-30 0001391673 shif:S000017755Member shif:JpMorganEmergingMarketsBondIndexGlobalDiversifiedMember 2011-10-01 2012-09-30 0001391673 shif:S000017756Member rr:AfterTaxesOnDistributionsMember shif:C000049026Member 2011-10-01 2012-09-30 0001391673 shif:S000017756Member rr:AfterTaxesOnDistributionsAndSalesMember shif:C000049026Member 2011-10-01 2012-09-30 0001391673 shif:S000017756Member shif:CitigroupHighYieldMarketCappedIndexMember 2011-10-01 2012-09-30 0001391673 shif:S000029052Member rr:AfterTaxesOnDistributionsMember shif:C000089234Member 2011-10-01 2012-09-30 0001391673 shif:S000029052Member rr:AfterTaxesOnDistributionsAndSalesMember shif:C000089234Member 2011-10-01 2012-09-30 0001391673 shif:S000029052Member shif:JpMorganGlobalBondIndexToEmergingMarketsGlobalDiversifiedIndexMember 2011-10-01 2012-09-30 pure iso4217:USD 2012-06-30 2012-06-30 <div style="display:none">~ http://www.shiplp.com/role/ScheduleShareholderFeesStoneHarborEmergingMarketsDebtFund column period compact * ~</div> <div style="display:none">~ http://www.shiplp.com/role/ScheduleShareholderFeesStoneHarborHighYieldBondFund column period compact * ~</div> 2012-06-30 <div style="display:none">~ http://www.shiplp.com/role/ScheduleShareholderFeesStoneHarborLocalMarketsFund column period compact * ~</div> 400 536 Example 344 Example Example Example <div style="display:none">~ http://www.shiplp.com/role/ScheduleShareholderFeesStoneHarborEmergingMarketsCorporateDebtFund column period compact * ~</div> The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 60% of the average value of its portfolio. Stone Harbor High Yield Bond Fund FUND SUMMARY The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 46% of the average value of its portfolio. 481 Stone Harbor Emerging Markets Debt Fund FUND SUMMARY 0.0695 0.0679 Stone Harbor Local Markets Fund FUND SUMMARY The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 161% of the average value of its portfolio. 498 633 0.0592 Stone Harbor Emerging Markets Corporate Debt Fund FUND SUMMARY The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 51% of the average value of its portfolio. 698 830 0 0 74 99 Shareholder Fees (Fees Paid Directly From Your Investment) Annual Fund Operating Expenses (Expenses That You Pay Each Year as a Percentage of the Value of Your Investment) 0 0 57 83 Shareholder Fees (Fees Paid Directly From Your Investment) Annual Fund Operating Expenses (Expenses That You Pay Each Year as a Percentage of the Value of Your Investment) The bar chart shows changes in the Fund’s performance from year to year for Institutional Class shares. The table shows how the Fund’s performance for the periods indicated compared with a broad measure of market performance. The bar chart shows changes in the Fund’s performance from year to year for Institutional Class shares. The table shows how the Fund’s performance for the periods indicated compared with a broad measure of market performance. <div style="display:none">~ http://www.shiplp.com/role/ScheduleAnnualFundOperatingExpensesStoneHarborEmergingMarketsDebtFund column period compact * ~</div> <div style="display:none">~ http://www.shiplp.com/role/ScheduleAnnualFundOperatingExpensesStoneHarborHighYieldBondFund column period compact * ~</div> The operating expenses in this fee table may not correlate to the expense ratio in the Fund’s financial statements (or the financial highlights in the Prospectus) because the financial statements include only the direct operating expenses incurred by the Fund, not the indirect costs of investing in the Acquired Funds. Shareholder Fees (Fees Paid Directly From Your Investment) Annual Fund Operating Expenses (Expenses That You Pay Each Year as a Percentage of the Value of Your Investment) 0 0 92 117 The bar chart shows changes in the Fund’s performance from year to year for Institutional Class shares. The table shows how the Fund’s performance for the periods indicated compared with a broad measure of market performance. <div style="display:none">~ http://www.shiplp.com/role/ScheduleAnnualFundOperatingExpensesStoneHarborLocalMarketsFund column period compact * ~</div> Shareholder Fees (Fees Paid Directly From Your Investment) Annual Fund Operating Expenses (Expenses That You Pay Each Year as a Percentage of the Value of Your Investment) 0 0 103 128 <div style="display:none">~ http://www.shiplp.com/role/ScheduleAnnualFundOperatingExpensesStoneHarborEmergingMarketsCorporateDebtFund column period compact * ~</div> 485BPOS Stone Harbor Investment Funds 2012-09-28 This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. This example helps you compare the costs of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. After one year, the example does not take into consideration the Adviser’s current agreement to waive fees. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 230 309 0.0568 INVESTMENT OBJECTIVE PRINCIPAL INVESTMENT STRATEGIES OF THE FUND Best Quarter – Ended June 30, 2009 – 12.07% Worst Quarter – Ended December 31, 2008 – -13.85% The Fund’s Institutional Class calendar year-to-date return as of June 30, 2012 was 6.95%. Average Annual Total Returns For the periods ended December 31, 2011 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Because Distributor Class shares were not outstanding during the periods shown, performance for that class is not shown. This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. This example helps you compare the costs of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. After one year, the example does not take into consideration the Adviser’s current agreement to waive fees. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 0 0 0 0 -0.0007 -0.0007 195 274 0.0339 2007-08-16 PRINCIPAL INVESTMENT STRATEGIES OF THE FUND Best Quarter – Ended June 30, 2009 – 17.64% Worst Quarter – Ended December 31, 2008 – -12.89% The Fund’s Institutional Class calendar year-to-date return as of June 30, 2012 was 6.79%. Average Annual Total Returns For the periods ended December 31, 2011 After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Because Distributor Class shares were not outstanding during the periods shown, performance for that class is not shown. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. 0.1207 0.1764 Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. <div style="display:none">~ http://www.shiplp.com/role/ScheduleAnnualTotalReturnsStoneHarborEmergingMarketsDebtFundBarChart column period compact * ~</div> <div style="display:none">~ http://www.shiplp.com/role/ScheduleAnnualTotalReturnsStoneHarborHighYieldBondFundBarChart column period compact * ~</div> 2012-05-31 Non-Diversification Risk – Being non-diversified may magnify the Fund’s losses from adverse events affecting a particular issuer. This example helps you compare the costs of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. After one year, the example does not take into consideration the Adviser’s current agreement to waive fees. Although your actual costs may be higher or lower, based on these assumptions your costs would be: PRINCIPAL INVESTMENT STRATEGIES OF THE FUND Best Quarter – Ended June 30, 2011 – 0.52% Worst Quarter – Ended September 30, 2011 – -8.76% The Fund’s Institutional Class calendar year-to-date return as of June 30, 2012 was 5.92%. Average Annual Total Returns For the periods ended December 31, 2011 This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. 0 0 287 365 -0.0146 2010-06-30 Non-Diversification Risk – Being non-diversified may magnify the Fund’s losses from adverse events affecting a particular issuer. The operating expenses in this fee table may not correlate to the expense ratio in the Fund’s financial statements (or the financial highlights in the Prospectus) because the financial statements include only the direct operating expenses incurred by the Fund, not the indirect costs of investing in the Acquired Funds. 0.0052 <div style="display:none">~ http://www.shiplp.com/role/ScheduleAnnualTotalReturnsStoneHarborLocalMarketsFundBarChart column period compact * ~</div> PRINCIPAL INVESTMENT STRATEGIES OF THE FUND This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. This example helps you compare the costs of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. After one year, the example does not take into consideration the Adviser’s current agreement to waive fees. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 0 0 -0.0032 -0.0032 390 467 The operating expenses in this fee table may not correlate to the expense ratio in the Fund’s financial statements (or the financial highlights in the Prospectus) because the financial statements include only the direct operating expenses incurred by the Fund, not the indirect costs of investing in the Acquired Funds. Non-Diversification Risk – Being non-diversified may magnify the Fund’s losses from adverse events affecting a particular issuer. 2007-08-16 0001391673 false 2012-09-30 2012-09-30 0 0.0025 0.0012 0.0012 0.0072 0.0097 -0.2021 0.4319 0.1569 FEES AND EXPENSES OF THE FUND 0.0568 0.0331 0.037 0.0735 0.1021 0.0729 0.0703 0.0935 Portfolio Turnover The Fund will normally invest at least 80% of its net assets (plus any borrowings made for investment purposes) in High Yield Debt Securities. “High Yield Debt Securities” include fixed income securities and derivative instruments (including, but not limited to, spot and currency contracts, futures, options and swaps) rated below investment grade (or, if unrated, of comparable quality as determined by Stone Harbor Investment Partners LP, the Fund’s investment adviser (the “Adviser”)). These types of securities and instruments are commonly referred to as “high yield” securities or “junk bonds” and may include, among other things, bonds, debentures, notes, equipment trust certificates, commercial paper, commercial loans, preferred stock and other obligations of U.S. and non-U.S. issuers. High Yield Debt Securities also include securities or other instruments whose return is based on the return of high yield securities, including derivative instruments and instruments created to hedge or gain exposure to the high yield markets. The Fund may invest in High Yield Debt Securities of any credit rating (including unrated securities). The Fund’s investments may include, among other things, asset-backed securities, depositary receipts, mortgage-related securities (including transferable private issuer mortgage-backed securities), non-publicly traded securities, payment-in-kind bonds, securities issued by supranational organizations, structured notes, convertible securities, inflation-protected and other index-linked securities, interest-only securities, step-up securities and zero coupon bonds. Although the Fund is not limited in the types of derivatives it can use, the Fund currently expects that its derivatives investments will consist primarily of the following instruments and transactions: futures, options, swaps, credit linked notes and credit default swaps. The Fund may use derivatives to a significant extent. The Fund seeks capital appreciation through industry selection, sector selection and security selection. Maturity and Duration. The Adviser normally maintains an average portfolio duration of between 3 and 7 years. However, the Fund’s average duration may be outside this range, and the Fund may invest in securities of any duration and maturity. PRINCIPAL RISKS OF INVESTING IN THE FUND The following is a description of the principal risks of the Fund’s portfolio, which may adversely affect its net asset value, yield and total return. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. As with any mutual fund, there is no guarantee that the Fund will achieve its investment objective. You may lose money by investing in the Fund. <ul type="square"><li style="margin-left:-20px">Credit Risk – The issuers of the securities in which the Fund invests or the Fund’s counterparties may have their credit rating down graded, fail financially or be unwilling or unable to make timely payments of interest, principal or other amounts owed to the Fund, thereby reducing the value of the Fund’s portfolio and its income. </li><li style="margin-left:-20px">Interest Rate Risk – The value of the Fund’s investments may fall if interest rates rise. </li><li style="margin-left:-20px">High Yield Securities Risk – High yield securities and securities of similar quality (whether or not rated), because of their speculative nature, price sensitivity, potential illiquidity and greater risk of default, present added risks compared to investing in other types of securities. </li><li style="margin-left:-20px">Non-U.S. Securities Risk – Non-U.S. securities are subject to the risks of foreign currency fluctuations, generally higher volatility and lower liquidity than U.S. securities, less developed securities markets and economic systems and political and economic instability. </li><li style="margin-left:-20px">Derivatives Risk – The value of the Fund’s derivative investments may fall because of pricing difficulties or lack of correlation with the underlying investment. </li><li style="margin-left:-20px">Managed Portfolio Risk – The Adviser’s investment strategies or choice of specific securities may be unsuccessful and may cause the Fund to incur losses. </li></ul> PERFORMANCE INFORMATION Institutional Share Class Annual Returns 0 0.0012 0.0012 0.0063 0.0088 0.0056 0.0081 0.0025 -0.2006 0.3846 0.1251 0.0339 -0.0001 0.0273 0.0575 0.0683 0.037 0.0403 0.0838 September 30, 2013 You may lose money by investing in the Fund. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. INVESTMENT OBJECTIVE FEES AND EXPENSES OF THE FUND Portfolio Turnover PRINCIPAL RISKS OF INVESTING IN THE FUND PERFORMANCE INFORMATION Institutional Share Class Annual Returns The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. 2009-06-30 Worst Quarter 2008-12-31 calendar year-to-date return September 30, 2013 An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. You may lose money by investing in the Fund. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. 2009-06-30 Worst Quarter 2008-12-31 calendar year-to-date return After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. The Fund normally will invest at least 80% of its net assets (plus any borrowings made for investment purposes) in Emerging Markets Fixed Income Securities. “Emerging Markets Fixed Income Securities” include fixed income securities and derivative instruments (including, but not limited to, spot and currency contracts, futures, options and swaps) that economically are tied to countries with emerging securities markets or whose performance is linked to those countries’ markets, economies or ability to repay loans. Emerging Markets Fixed Income Securities may be denominated in non-U.S. currencies or the U.S. dollar. A security or instrument is economically tied to an emerging market country if it is principally traded on the country’s securities markets or the issuer is organized or principally operates in the country, derives a majority of its income from its operations within the country or has a majority of its assets within the country. Emerging Markets Fixed Income Securities also include derivatives and other instruments used to hedge or gain exposure to emerging securities markets (for example, futures or other derivatives whose return is based on specific emerging markets securities or indices). Although the Fund is not limited in the types of derivatives it can use, the Fund currently expects that its derivatives investments will consist primarily of the following instruments and transactions: futures, options, swaps, credit linked notes and credit default swaps. The Fund may use derivatives to a significant extent. The Fund’s investment adviser, Stone Harbor Investment Partners LP (the “Adviser”), has broad discretion to identify and invest in countries that it considers to be emerging securities markets. The Fund considers “emerging market countries” to include countries identified by the World Bank Group as being “low income countries” or which are included in a J.P. Morgan emerging market bond index. It is anticipated that the Fund will focus most of its investments in Asia, Africa, the Middle East, Latin America and/or the developing countries of Europe. The Fund’s investments may include, among other things, sovereign debt securities, corporate debt securities, structured notes, convertible securities, securities issued by supranational organizations, floating rate commercial loans, securitized loan participations, Rule 144A securities and derivatives related to these types of securities. The Fund seeks capital appreciation through country selection, sector selection and security selection. The Fund is “non-diversified,” which means that it can invest a higher percentage of its assets in any one issuer or in a smaller number of issuers than a diversified fund. Credit Quality. The Fund may invest in securities of any credit rating (including unrated securities) and may invest without limit in higher risk, below-investment grade debt securities, commonly referred to as “high yield” securities or “junk bonds.” Maturity and Duration. The Adviser normally maintains an average portfolio duration of between 2 and 7 years. However, the Fund’s average duration may be outside this range, and the Fund may invest in securities of any duration and maturity. The following is a description of the principal risks of the Fund’s portfolio, which may adversely affect its net asset value, yield and total return. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. As with any mutual fund, there is no guarantee that the Fund will achieve its investment objective. You may lose money by investing in the Fund. <ul type="square"><li style="margin-left:-20px">Emerging Markets Securities Risk – In addition to the risks of investing in non-U.S. securities generally, emerging markets securities are subject to greater risks arising from political or economic instability, nationalization or confiscatory taxation, currency exchange restrictions and an issuer’s unwillingness or inability to make principal or interest payments on its obligations. </li><li style="margin-left:-20px">Non-U.S. Securities Risk – Non-U.S. securities are subject to the risks of foreign currency fluctuations, generally higher volatility and lower liquidity than U.S. securities, less developed securities markets and economic systems and political and economic instability. </li><li style="margin-left:-20px">Currency Risk – The value of the Fund’s investments may fall as a result of changes in exchange rates. Because the Fund may invest a portion of its assets in investments denominated in non-U.S. currencies or whose return is linked to those currencies, it is especially susceptible to this risk. </li><li style="margin-left:-20px">Interest Rate Risk – The value of the Fund’s investments may fall if interest rates rise. </li><li style="margin-left:-20px">Derivatives Risk – The value of the Fund’s derivative investments may fall because of pricing difficulties or lack of correlation with the underlying investment. </li><li style="margin-left:-20px">Credit Risk – The issuers of the securities in which the Fund invests or the Fund’s counterparties may have their credit rating down graded, fail financially or be unwilling or unable to make timely payments of interest, principal or other amounts owed to the Fund, thereby reducing the value of the Fund’s portfolio and its income. </li><li style="margin-left:-20px">High Yield Securities Risk – High yield securities and securities of similar quality (whether or not rated), because of their speculative nature, price sensitivity, potential illiquidity and greater risk of default, present added risks compared to investing in other types of securities. </li><li style="margin-left:-20px">Managed Portfolio Risk – The Adviser’s investment strategies or choice of specific securities may be unsuccessful and may cause the Fund to incur losses. </li><li style="margin-left:-20px">Non-Diversification Risk – Being non-diversified may magnify the Fund’s losses from adverse events affecting a particular issuer. </li></ul> <div style="display:none">~ http://www.shiplp.com/role/ScheduleExpenseExampleTransposedStoneHarborEmergingMarketsDebtFund column period compact * ~</div> <div style="display:none">~ http://www.shiplp.com/role/ScheduleExpenseExampleTransposedStoneHarborHighYieldBondFund column period compact * ~</div> <div style="display:none">~ http://www.shiplp.com/role/ScheduleAverageAnnualTotalReturnsTransposedStoneHarborEmergingMarketsDebtFund column period compact * ~</div> <div style="display:none">~ http://www.shiplp.com/role/ScheduleAverageAnnualTotalReturnsTransposedStoneHarborHighYieldBondFund column period compact * ~</div> INVESTMENT OBJECTIVE FEES AND EXPENSES OF THE FUND Portfolio Turnover The Fund normally will invest at least 80% of its net assets (plus any borrowings made for investment purposes) in Emerging Markets Investments. “Emerging Markets Investments” include fixed income securities and derivative instruments (including, but not limited to, spot and currency contracts, futures, options and swaps) that economically are tied to an emerging market country, which are denominated in the predominant currency of the local market of an emerging market country (an “Emerging Markets Currency”) or whose performance is linked to those countries’ currencies, markets, economies or ability to repay loans. Although under normal circumstances a significant portion of the Fund’s investments will be denominated in Emerging Markets Currencies, Emerging Markets Investments may be denominated in non-Emerging Markets Currencies, including the U.S. dollar. A security or instrument is economically tied to an emerging market country if it is principally traded on the country’s securities markets or the issuer is organized or principally operates in the country, derives a majority of its income from its operations within the country or has a majority of its assets within the country. Emerging Markets Investments also include Emerging Markets Currencies and derivatives and other instruments used to hedge or gain exposure to emerging securities markets or Emerging Markets Currencies (for example, futures or other derivatives whose return is based on specific emerging markets securities, emerging markets indices or Emerging Markets Currencies). The Fund may use derivatives to a significant extent. The Fund considers “emerging market countries” to include countries identified by the World Bank Group as being “low income countries” or which are included in a J.P. Morgan emerging market bond index. It is anticipated that the Fund will focus most of its investments in Asia, Africa, the Middle East, Latin America and/or the developing countries of Europe. The Fund’s investments may include, among other things, sovereign debt securities, corporate debt securities, structured notes, convertible securities, securities issued by supranational organizations, floating rate commercial loans, securitized loan participations, Rule 144A securities, non-U.S. currencies, forward currency contracts and other foreign currency transactions and derivatives related to these types of investments. The Fund seeks capital appreciation through country selection, sector selection, security selection and currency selection. In selecting Emerging Markets Investments for investment, Stone Harbor Investment Partners LP (the “Adviser”) will apply a market risk analysis contemplating the assessment of various factors, such as liquidity, volatility, tax implications, interest rate sensitivity, counterparty risks, economic factors, currency exchange rates and technical market considerations. The Fund is “non-diversified,” which means that it can invest a higher percentage of its assets in any one issuer or in a smaller number of issuers than a diversified fund. Credit Quality. The Fund may invest in securities of any credit rating (including unrated securities) and may invest without limit in higher risk, below-investment grade debt securities, commonly referred to as “high yield” securities or “junk bonds.” Maturity and Duration. The Adviser normally maintains an average portfolio duration of between 2 and 7 years. However, the Fund’s average duration may be outside this range, and the Fund may invest in securities of any duration and maturity. PRINCIPAL RISKS OF INVESTING IN THE FUND The following is a description of the principal risks of the Fund’s portfolio, which may adversely affect its net asset value, yield and total return. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. As with any mutual fund, there is no guarantee that the Fund will achieve its investment objective. You may lose money by investing in the Fund. <ul type="square"><li style="margin-left:-20px">Emerging Markets Securities Risk – In addition to the risks of investing in non-U.S. securities generally, emerging markets securities are subject to greater risks arising from political or economic instability, nationalization or confiscatory taxation, currency exchange restrictions and an issuer’s unwillingness or inability to make principal or interest payments on its obligations. </li><li style="margin-left:-20px">Non-U.S. Securities Risk – Non-U.S. securities are subject to the risks of foreign currency fluctuations, generally higher volatility and lower liquidity than U.S. securities, less developed securities markets and economic systems and political and economic instability. </li><li style="margin-left:-20px">Currency Risk – The value of the Fund’s investments may fall as a result of changes in exchange rates. Because the Fund will normally invest a significant portion of its assets in investments denominated in Emerging Markets Currencies or whose return is linked to those currencies, it is especially susceptible to this risk. </li><li style="margin-left:-20px">Interest Rate Risk – The value of the Fund’s investments may fall if interest rates rise. </li><li style="margin-left:-20px">Derivatives Risk – The value of the Fund’s derivative investments may fall because of pricing difficulties or lack of correlation with the underlying investment. </li><li style="margin-left:-20px">Credit Risk – The issuers of the securities in which the Fund invests or the Fund’s counterparties may have their credit rating down graded, fail financially or be unwilling or unable to make timely payments of interest, principal or other amounts owed to the Fund, thereby reducing the value of the Fund’s portfolio and its income. </li><li style="margin-left:-20px">High Yield Securities Risk – High yield securities and securities of similar quality (whether or not rated), because of their speculative nature, price sensitivity, potential illiquidity and greater risk of default, present added risks compared to investing in other types of securities. </li><li style="margin-left:-20px">Managed Portfolio Risk – The Adviser’s investment strategies or choice of specific securities may be unsuccessful and may cause the Fund to incur losses. </li><li style="margin-left:-20px">Non-Diversification Risk – Being non-diversified may magnify the Fund’s losses from adverse events affecting a particular issuer. </li></ul> PERFORMANCE INFORMATION Institutional Share Class Annual Returns 0.0025 0 0.0014 0.0014 0.009 0.0115 -0.0146 -0.0308 -0.0091 -0.0176 0.0582 0.0407 0.0396 0.0651 September 30, 2013 You may lose money by investing in the Fund. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. calendar year-to-date return 2011-06-30 Worst Quarter 2011-09-30 <div style="display:none">~ http://www.shiplp.com/role/ScheduleExpenseExampleTransposedStoneHarborLocalMarketsFund column period compact * ~</div> <div style="display:none">~ http://www.shiplp.com/role/ScheduleAverageAnnualTotalReturnsTransposedStoneHarborLocalMarketsFund column period compact * ~</div> INVESTMENT OBJECTIVE FEES AND EXPENSES OF THE FUND Portfolio Turnover The Fund normally will invest at least 80% of its net assets (plus any borrowings made for investment purposes) in Emerging Markets Corporate Debt Investments. “Emerging Markets Corporate Debt Investments” are debt instruments, including loans, issued by corporations or other business organizations that are economically tied to an emerging market country. A corporation or other business organization is economically tied to an emerging market country if it issues securities that are principally traded on the country’s securities markets or if it is organized or principally operates in the country, derives a majority of its income from its operations within the country or has a majority of its assets within the country. Emerging Markets Corporate Debt Investments also include derivative instruments used for hedging purposes or to otherwise gain or reduce long or short exposure to Emerging Markets Corporate Debt Investments. For example, the Fund may utilize futures or other derivatives whose return is based on specific Emerging Markets Corporate Debt Investments or indices of such investments. Although the Fund is not limited in the types of derivatives it can use, the Fund currently expects that its derivatives investments will consist primarily of the following instruments and transactions: futures, options, swaps, credit linked notes and credit default swaps. The Fund may use derivatives to a significant extent. The Fund may also invest in sovereign debt securities. The Fund’s investments may be denominated in non-U.S. currencies or in the U.S. dollar. The Fund considers “emerging market countries” to include countries identified by the World Bank Group as being “low income countries” or which are included in a J.P. Morgan emerging market bond index. It is anticipated that the Fund will focus most of its investments in Asia, Africa, the Middle East, Latin America and/or the developing countries of Europe. The Fund’s investments may include, among other things, corporate debt securities, sovereign debt securities, structured notes, convertible securities, securities issued by supranational organizations, fixed and floating rate commercial loans, loan participations and assignments, private placements, Rule 144A securities, non-U.S. currencies, forward currency contracts and other foreign currency transactions and derivatives related to the types of investments listed herein. The Fund seeks capital appreciation through country selection, issuer selection, industry selection, security selection and currency selection. The Fund is “non-diversified,” which means that it can invest a higher percentage of its assets in any one issuer or in a smaller number of issuers than a diversified fund. Credit Quality. The Fund may invest in securities of any credit rating (including unrated securities) and may invest without limit in higher risk, below-investment grade debt securities, commonly referred to as “high yield” securities or “junk bonds.” Such securities may include those that are in default with respect to the payment of principal or interest. Maturity and Duration. Stone Harbor Investment Partners LP (the “Adviser”) normally maintains an average portfolio duration of between 2 and 7 years. However, the Fund’s average duration may be outside this range, and the Fund may invest in securities of any duration and maturity. PRINCIPAL RISKS OF INVESTING IN THE FUND The following is a description of the principal risks of the Fund’s portfolio, which may adversely affect its net asset value, yield and total return. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. As with any mutual fund, there is no guarantee that the Fund will achieve its investment objective. You may lose money by investing in the Fund. <ul type="square"><li style="margin-left:-20px">Emerging Markets Securities Risk – In addition to the risks of investing in non-U.S. securities generally, emerging markets securities are subject to greater risks arising from political or economic instability, nationalization or confiscatory taxation, currency exchange restrictions and an issuer’s unwillingness or inability to make principal or interest payments on its obligations. </li><li style="margin-left:-20px">Non-U.S. Securities Risk – Non-U.S. securities are subject to the risks of foreign currency fluctuations, generally higher volatility and lower liquidity than U.S. securities, less developed securities markets and economic systems and political and economic instability. </li><li style="margin-left:-20px">Currency Risk – The value of the Fund’s investments may fall as a result of changes in exchange rates. Because the Fund may invest a portion of its assets in investments denominated in non-U.S. currencies or whose return is linked to those currencies, it is especially susceptible to this risk. </li><li style="margin-left:-20px">Interest Rate Risk – The value of the Fund’s investments may fall if interest rates rise. </li><li style="margin-left:-20px">Derivatives Risk – The value of the Fund’s derivative investments may fall because of pricing difficulties or lack of correlation with the underlying investment. </li><li style="margin-left:-20px">Credit Risk – The issuers of the securities in which the Fund invests or the Fund’s counterparties may have their credit rating downgraded, fail financially or be unwilling or unable to make timely payments of interest, principal or other amounts owed to the Fund, thereby reducing the value of the Fund’s portfolio and its income. </li><li style="margin-left:-20px">High Yield Securities Risk – High yield securities and securities of similar quality (whether or not rated), because of their speculative nature, price sensitivity, potential illiquidity and greater risk of default, present added risks compared to investing in other types of securities. </li><li style="margin-left:-20px">Managed Portfolio Risk – The Adviser’s investment strategies or choice of specific securities may be unsuccessful and may cause the Fund to incur losses. </li><li style="margin-left:-20px">Non-Diversification Risk – Being non-diversified may magnify the Fund’s losses from adverse events affecting a particular issuer. </li></ul> PERFORMANCE INFORMATION 0.0025 0 0.0047 0.0047 0.0133 0.0158 0.0101 0.0126 September 30, 2013 You may lose money by investing in the Fund. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. <div style="display:none">~ http://www.shiplp.com/role/ScheduleExpenseExampleTransposedStoneHarborEmergingMarketsCorporateDebtFund column period compact * ~</div> The Fund seeks to maximize total return, which consists of income on its investments and capital appreciation. The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund’s performance from year to year for Institutional Class shares. The table shows how the Fund’s performance for the periods indicated compared with a broad measure of market performance. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. 0 0 0.006 0.006 894 1189 The Fund seeks to maximize total return, which consists of income on its investments and capital appreciation. 0 0.005 0.005 0 0.0001 0.0001 779 1077 0.46 Best Quarter -0.1385 0.6 Best Quarter -0.1289 The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund’s performance from year to year for Institutional Class shares. The table shows how the Fund’s performance for the periods indicated compared with a broad measure of market performance. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. The Fund seeks to maximize total return, which consists of income on its investments and capital appreciation. The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund’s performance from year to year for Institutional Class shares. The table shows how the Fund’s performance for the periods indicated compared with a broad measure of market performance. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. 0 0 0.0075 0.0075 0.0001 0.0001 1107 1396 1.61 Best Quarter -0.0876 The Fund seeks to maximize total return, which consists of income on its investments and capital appreciation. Because the Fund has not yet completed a full calendar year of operations as of the date of this Prospectus, performance information for the Fund, including a bar chart showing annual returns, has not been included. 0 0 0.0085 0.0085 0.0001 0.0001 1572 1849 0.51 Because the Fund has not yet completed a full calendar year of operations as of the date of this Prospectus, performance information for the Fund, including a bar chart showing annual returns, has not been included. Pursuant to a Distribution and Services (12b-1) Plan for Distributor Class shares, the Fund may pay 12b-1 fees at an annual rate of up to 0.50% of the average daily net asset value of Distributor Class shares. The Fund's Board of Trustees has approved fees at an annual rate of 0.25% of the average daily net asset value for the current fiscal year. However, that rate may be increased up to 0.50% in subsequent years without shareholder approval. The Fund's shareholders indirectly bear the expenses of the other funds in which the Fund invests (Acquired Funds). The operating expenses in this fee table may not correlate to the expense ratio in the Fund's financial statements (or the financial highlights in the Prospectus) because the financial statements include only the direct operating expenses incurred by the Fund, not the indirect costs of investing in the Acquired Funds. Stone Harbor Investment Partners LP, the Fund's investment adviser (the "Adviser"), has agreed to limit the amount of the Fund's total annual expenses, exclusive of Acquired Fund Fees and Expenses, brokerage expenses, interest expense, taxes and extraordinary expenses, to 0.55% and 0.80% of the Fund's average daily net assets for Institutional Class shares and Distributor Class shares, respectively. This agreement is in effect through September 30, 2013, may only be terminated before then by the Board of Trustees, and is reevaluated on an annual basis. The Adviser will be permitted to recover, on a class-by-class basis, fees and expenses it has borne through the agreement described above to the extent that the Fund's expenses in later periods fall below the annual rates set forth in the relevant agreement. The Fund will not be obligated to pay any such reduced fees and expenses more than three years after the end of the fiscal year in which the fee and expense was reduced. Pursuant to a Distribution and Services (12b-1) Plan for Distributor Class shares, the Fund may pay 12b-1 fees at an annual rate of up to 0.50% of the average daily net asset value of Distributor Class shares. The Fund's Board of Trustees has approved fees at an annual rate of 0.25% of the average daily net asset value for the current fiscal year. However, that rate may be increased up to 0.50% in subsequent years without shareholder approval. Stone Harbor Investment Partners LP, the Fund's investment adviser (the "Adviser"), has agreed to limit the amount of the Fund's total annual expenses, exclusive of Acquired Fund Fees and Expenses, brokerage expenses, interest expense, taxes and extraordinary expenses, to 0.75% and 1.00% of the Fund's average daily net assets for Institutional Class shares and Distributor Class shares, respectively. This agreement is in effect through September 30, 2013, may only be terminated before then by the Board of Trustees, and is reevaluated on an annual basis. The Adviser will be permitted to recover, on a class-by-class basis, fees and expenses it has borne through the agreement described above to the extent that the Fund's expenses in later periods fall below the annual rates set forth in the relevant agreement. The Fund will not be obligated to pay any such reduced fees and expenses more than three years after the end of the fiscal year in which the fee and expense was reduced. Stone Harbor Investment Partners LP, the Fund's investment adviser (the "Adviser"), has agreed to limit the amount of the Fund's total annual expenses, exclusive of Acquired Fund Fees and Expenses, brokerage expenses, interest expense, taxes and extraordinary expenses, to 1.00% and 1.25% of the Fund's average daily net assets for Institutional Class shares and Distributor Class shares, respectively. This agreement is in effect through September 30, 2013, may only be terminated before then by the Board of Trustees, and is reevaluated on an annual basis. The Adviser will be permitted to recover, on a class-by-class basis, fees and expenses it has borne through the agreement described above to the extent that the Fund's expenses in later periods fall below the annual rates set forth in the relevant agreement. The Fund will not be obligated to pay any such reduced fees and expenses more than three years after the end of the fiscal year in which the fee and expense was reduced.