Ashmore : launches three new China Funds (01 Sep 2014)

PRESS RELEASE Chinese domestic markets open to investors as Ashmore unveils new funds

Ashmore uses RQFII status to give investors greater and more flexible access to China securities

London, Monday 1 September 2014 -Investors are being offered greater access to one of the world's most compelling investment opportunities, as Ashmore announces the launch of a trio of China focused funds.

The launches follow the historic award of Ashmore's RMB Qualified Foreign Institutional Investors (RQFII) status by the China Securities Regulatory Commission (CSRC) in January this year. Ashmore was the first manager outside of Greater China to be awarded this status, a development that reflects its position as one of the world's most established Emerging Market investors.
The launch of these three new SICAV structured funds signifies another milestone for the firm, offering unprecedented access to local Chinese markets. The new funds offer a range of investment opportunities:

 Ashmore Chinese Debt Fund: seeks to access returns available from a strategy of Chinese debt securities issued by Sovereigns, Quasi Sovereigns and public and private sector Corporates denominated in RMB and traded on the China Interbank Bond market and or the China exchange traded bond market

 Ashmore Chinese Equity Fund: investing in Chinese A-shares listed on the Shanghai and / or

Shenzhen stock exchanges

 Ashmore Chinese Multi-Strategy Fund: generating returns from a balanced strategy of the two above strategies

Christoph Hofmann, Ashmore's Global Head of Distribution comments, "China is not only the world's second largest economy, it is also one of the most difficult to access, with local markets having been largely inaccessible to foreign investors. The launch of these funds changes this dramatically. Investors now have unparalleled access to local Chinese securities and these funds provide investors the opportunity to invest in one of the most dynamic markets in the world.

"Domestic Chinese equities and fixed income assets are significantly under-represented in most global portfolios and these funds will allow our clients to make dedicated investments in China and suitably diversify their asset allocation."

Jan Dehn, Head of Research, discusses, "China is in the midst of a storming change as it transforms itself from an export to a domestic-led economy. We believe China's aggressive appetite for reform and forward-looking policies will place the country in a very strong position to grow in the future. We think the transformation of the Chinese economy will be especially positive for the domestic bond market which will play a central role macroeconomic policy. China's domestic bond market is one of the largest in the world and is set to become increasingly accessible to investors outside of China."

"Local Chinese equities have been hit by poor investor sentiment amidst slower growth but we believe this has created a buying opportunity. Valuations are depressed, Chinese indices remain around 75% lower on a price-to-earnings basis compared to pre-crisis peaks and P/BV multiples are at near decade lows. This is despite a strong expected earnings recovery and the country's strong fiscal position which means there's huge firepower to stimulate growth if necessary."
The launch of the new funds has relied on Ashmore's close relationship with both Northern Trust, who provide all aspects of Fund Administration in Luxembourg, and HSBC who will act as the onshore sub custodian. A strong, tri-party relationship was essential to the successful delivery of this unique proposition.

ENDS Notes to Editors

In October 2013, China allocated a RMB80 billion RQFII quota for London, after a decision was taken to expand the pilot scheme beyond Asia, within which Hong Kong, Taiwan and Singapore are approved for RQFII, respectively.

For further information contact: FTI Consulting

Zaman Toleafoa [phone] / [phone]
Laura Hudson [phone] / [phone]
Email: [e-mail]

About Ashmore Group plc

Ashmore is one of the world's leading investment management groups dedicated to Emerging Markets. The business was founded in 1992 as part of the Australia and New Zealand Banking Group. In 1999, Ashmore became independent and manages US$75 billion (as at 30 June 2014) in pooled funds, segregated accounts and structured products. Ashmore focuses on a number of Emerging Markets investment themes including external debt, local currency, corporate debt, blended debt, equity, alternatives (special situations, infrastructure and real estate), overlay / liquidity, and multi- strategy products.
Ashmore Group plc (ASHM:LN) is listed on the London Stock Exchange and is a member of the FTSE
250 Index. The company has significant employee ownership. Ashmore is headquartered in London, England and has offices in Brazil, China, Colombia, India, Indonesia, Japan, Russia, Singapore, Turkey, and the United States.
Website: www.ashmoregroup.com

This document is issued by Ashmore Investment Management Limited (Ashmore), which is authorised and regulated by the UK Financial Conduct Authority. The information and any opinions contained in this document have been compiled in good faith, but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. Save to the extent (if any) that exclusion of liability is prohibited by any applicable law or regulation, Ashmore, its officers, employees, representatives and agents expressly advise that they shall not be liable in any respect whatsoever for any loss or damage, whether direct, indirect, consequential or otherwise however arising (whether in negligence or otherwise) out of or in connection with the contents of or any omissions from this document. This document does not constitute an offer to sell, purchase, subscribe for or otherwise invest in units or shares of any Fund referred to in this document. The value of any investment in any such Fund may fall as well as rise and investors may not get back the amount originally invested. Past performance is not a reliable indicator of future results. All prospective investors must obtain a copy of the final Scheme Particulars or (if applicable) other offering document relating to the relevant Fund prior to making any decision to invest in any such Fund. This document does not constitute and may not be relied upon as constituting any form of investment advice and prospective

investors are advised to ensure that they obtain appropriate independent professional advice before making any investment in any such Fund.