ANNUAL SHAREHOLDER REPORT | October 31, 2024
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
Fund (Class) | Costs of a $10,000 Investment | Costs paid as a percentage of a $10,000 investment |
| Ashmore Emerging Markets Total Return Fund (Class A/EMKAX) | $ | % |
Management’s Discussion of Fund Performance
Over the one-year period ended October 31, 2024, the Ashmore Emerging Markets Total Return Fund (Class A/EMKAX) delivered a total return of 13.38% net of fees, versus a (50% JP Morgan Emerging Markets Bond Index Global Diversified; 25% JP Morgan Emerging Local Markets Index Plus; 25% JP Morgan Government Bond Index-Emerging Markets Global Diversified) benchmark return of 12.81%.
Top Contributors
In Argentina, the election of President Javier Milei in 2023 led to economic “shock therapy” as the government devalued the official exchange rate by 54% and cut public spending by 2.9% of Gross Domestic Product (GDP). The fiscal position, as well as the current account, swung into surplus and the sovereign bond prices more than doubled during the period.
In China, growth has continued to disappoint in the context of slow private consumption and investment. The sovereign credit risk is low in the context of rising trade surpluses, but the country’s sovereign external debt securities screen as expensive relative to the investable universe, so an underweight position has been appropriate.
In Mexico, the sovereign bond index has performed in line with the representative index, but the Fund outperformed thanks to security selection with notable contributions from Petroleos Mexicanos (Pemex).
Top Detractors
In Venezuela, the sovereign bonds were included again in the representative index at their prevailing market value, which led to an increase in benchmark weight. Our overweight position relative to the benchmark led to some under-performance owing to income drag and some volatility in bond prices following last summer’s election.
In Brazil, the local currency debt market under-performed as the government’s primary balanced target was increased, and inflation expectations rose back up, pushing the central bank to increase interest rates.
Finally, the Fund’s underweight position in Ecuadorian sovereign bonds detracted from performance, as the country’s bonds rallied over the year in sympathy with the strong performance of lower-rated bonds spurred by easier financial conditions.
Fund Performance
The following graph and chart show the performance of a hypothetical $10,000 investment in Class A over a ten year period, as compared to the performance of a broad based index and a narrower index reflecting the market segments in which the Fund invests. Performance for other share classes will vary.
The gr
aph and chart do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.www.ashmoregroup.com/en-us/document/ashmore-emerging-markets-total-return-fund-retail-quarterly-fund-card
for the most recent performance information.GROWTH OF $10,000
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2024 | 1 Year | 5 Year | 10 Year |
% | - % | - % | |
% | - % | - % | |
% | % | % | |
% | % | % |
Key Fund Statistics as of
October
31, 2024Fund net assets | $ |
Total number of portfolio holdings | |
Total advisory fees paid (after reimbursements) | $ |
Portfolio turnover rate | % |
Graphical Representation of Holdings
The tables below show the investment makeup of the Fund, representing the
percentage
of the total exposure
of the Fund as of October 31, 2024.ASSET TYPE ALLOCATION
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting information at . You can also request this information by contacting us at
https://connect.rightprospectus.com/Ashmore
866-876-8294
.Householding
In order to reduce expenses, we will deliver a single copy of prospectuses, proxies, financial reports and other communication to shareholders with the same residential address, provided they have the same last name or we reasonably believe them to be members of the same family. Unless we are notified otherwise, we will continue to send recipients only one copy of these materials for as long as they remain a shareholder of the Fund. If you would like to receive individual mailings, please call 866-876-8294 and we will begin sending you separate copies of these materials within 30 days after receiving your request.
For additional information about the Fund, please scan the QR code at left to navigate to additional hosted material at
https://connect.rightprospectus.com/Ashmore
.
