Ashport Fixed Income Fund Inc.

Financial Statements
June 24, 2016
CONTENTS

INDEPENDENT AUDITORS' REPORT 1-2

FINANCIAL STATEMENTS
Statement of Assets and Liabilities 3
Condensed Schedule of Investments 4-7
Statement of Operations 8
Statement of Changes in Net Assets 9
Statement of Cash Flows 10
Notes to Financial Statements 11 - 16
INDEPENDENT AUDITORS' REPORT

Ashport Fixed Income Fund Inc.

We have audited the accompanying financial statements of Ashport Fixed Income

Fund Inc. (the "Fund"), which comprise the statement of assets and liabilities,
including the condensed schedule of investments, as of June 24, 2016, and the related
statements of operations, changes in net assets and cash flows for the year then ended,
and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United
States of America; this includes the design, implementation, and maintenance of
internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the financial statements. The procedures selected depend on the
auditor's judgment, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Fund's preparation
and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control. Accordingly, we express
no such opinion. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.

1
Opinion
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of Ashport Fixed Income Fund Inc. as of
June 24, 2016, and the results of its operations, changes in its net assets and its cash
flows for the year then ended in accordance with accounting principles generally
accepted in the United States of America.

Kaufman, Rossin & Co., P.A.

September 26, 2016
Miami, Florida

2
ASHPORT FIXED INCOME FUND INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 24, 2016
(EXPRESSED IN U.S. DOLLARS)

ASSETS

INVESTMENTS, at fair value (cost $28,564,933) (Notes 2 and 5) $ 26,726,627

INTEREST RECEIVABLE 416,210
TOTAL ASSETS $ 27,142,837

LIABILITIES AND NET ASSETS

DUE TO BROKER (NOTE 5) $ 5,517,873

ACCRUED LIABILITIES (NOTE 4) 80,758
DUE TO ADMINISTRATOR (NOTE 3) 12,218
DUE TO INVESTMENT MANAGER (NOTE 3) 8,145
TOTAL LIABILITIES $ 5,618,994

NET ASSETS (NOTES 4 AND 7) $ 21,523,843

NET ASSETS APPLICABLE TO:

Class A shares (Note 4) $ 21,523,743

Class O shares (Note 4) 100
TOTAL NET ASSETS $ 21,523,843

NET ASSET VALUE PER SHARE:

Class A shares; based on 1,134,829 shares outstanding (Note 4) $ 18.97

Class O shares; based on 100 shares outstanding (Note 4) $ 1.00

See accompanying notes.

3
ASHPORT FIXED INCOME FUND INC.
CONDENSED SCHEDULE OF INVESTMENTS
JUNE 24, 2016
(EXPRESSED IN U.S. DOLLARS)
PAR VALUE DESCRIPTION* FAIR VALUE

INVESTMENTS (124.17%)
COMMON STOCKS (0.26%) 1
United States
Financial (Cost $118,760) $ 55,260

FIXED INCOME SECURITIES (122.81%) 2

Argentina (0.18%)
Consumer, Cyclical $ 39,700
Australia (0.16%)
Basic Materials 35,051
Azerbaijan (0.02%)
Energy 10,135
Bahamas (0.26%)
Government 56,688
Barbados (0.90%)
Government 195,520
Belgium (0.84%)
Consumer, Non-Cyclical 180,932
Brazil (7.62%)
Basic Materials (3.11%) $ 668,363
Communications (0.16%) 34,500
Consumer, Cyclical (0.08%) 16,600
Consumer, Non-Cyclical (0.21%) 44,325
Energy (1.38%) 296,692
Financial (2.41%) 518,228
Government (0.06%) 13,050
Industrial (0.10%) 20,600
Utilities (0.11%) 23,925 1,636,283
Canada (5.25%)
Basic Materials (0.05%) 9,956
Consumer, Cyclical (0.09%) 19,000
Financial (5.11%) 1,100,184 1,129,140
Chile (2.18%)
Communications (1.31%) 281,072
Consumer, Cyclical (0.12%) 26,706
Consumer, Non-Cyclical (0.61%) 132,109
Financial (0.14%) 30,140 470,027
China (1.00%)
Financial 215,312

See accompanying notes.

4
ASHPORT FIXED INCOME FUND INC.
CONDENSED SCHEDULE OF INVESTMENTS (Continued)
JUNE 24, 2016
(EXPRESSED IN U.S. DOLLARS)
PAR VALUE DESCRIPTION* FAIR VALUE

Colombia (3.64%)
Communications (1.28%) $ 276,023
Energy (0.47%) 101,288
Financial (1.73%) 373,326
Government (0.11%) 22,603
Utilities (0.05%) 11,525 $ 784,765
Costa Rica (1.10%)
Government 244,188
Croatia (1.40%)
Government 306,220
Dominican Republic (0.11%)
Government 24,375
Egypt (0.21%)
Government 45,054
El Salvador (1.04%)
Government 233,163
Guatemala (0.10%)
Consumer, Non-Cyclical 20,500
Hong Kong (0.78%)
Financial 168,945
Israel (0.23%)
Government (0.09%) 20,286
Utilities (0.14%) 30,450 50,736
Kazakhstan (0.05%)
Financial 10,701
Korea (0.09%)
Utilities 20,138
Luxembourg (0.55%)
Basic Materials 118,163
Mexico (5.51%)
Basic Materials (1.55%) 333,845
Communications (0.33%) 70,088
Diversified (1.31%) 280,900
Financial (2.12%) 455,868
Government (0.20%) 42,982 1,183,683
Netherlands (0.54%)
Communications (0.15%) 32,625
Consumer, Non-cyclical (0.21%) 46,073
Financial (0.18%) 39,131 117,829

See accompanying notes.

5
ASHPORT FIXED INCOME FUND INC.
CONDENSED SCHEDULE OF INVESTMENTS (Continued)
JUNE 24, 2016
(EXPRESSED IN U.S. DOLLARS)
PAR VALUE DESCRIPTION* FAIR VALUE

Peru (4.88%)
Basic Materials (1.56%) $ 335,354
Consumer, Non-Cyclical (0.73%) 157,250
Diversified (0.58%) 124,800
Utilities (2.01%) 433,369 $ 1,050,773
Qatar (0.54%)
Communications 116,288
Russia (3.06%)
Communications (1.19%) 256,125
Energy (1.13%) 242,687
Government (0.52%) 112,088
Industrial (0.22%) 47,665 658,565
Senegal (0.05%)
Government 10,701
South Africa (0.87%)
Basic Materials (0.54%) 115,480
Utilities (0.33%) 71,932 187,412
Spain (0.20%)
Consumer, Non-cyclical 3,875
Switzerland (0.24%)
Financial 50,963
Trinidad and Tobago (0.20%)
Energy 43,320
Turkey (2.07%)
Communications (0.41%) 88,861
Financial (1.22%) 262,576
Government (0.44%) 94,914 446,351
United Arab Emirates (1.24%)
Consumer Non-Cyclical 267,138
United Kingdom (0.74%)
Energy (0.00%) 65
Financial (0.74%) 159,692 159,757

See accompanying notes.

6
ASHPORT FIXED INCOME FUND INC.
CONDENSED SCHEDULE OF INVESTMENTS (Continued)
JUNE 24, 2016
(EXPRESSED IN U.S. DOLLARS)
PAR VALUE DESCRIPTION* FAIR VALUE

United States (74.35%)

Basic Materials (10.55%) $ 2,270,397
Communications (10.97%) 2,361,346
Consumer Cyclical (20.39%) 4,388,719
Consumer, Non-cyclical (4.46%) 960,506
Diversified (0.23%) 48,899
Energy (10.44%) 2,248,080
Financial (9.07%) 1,952,036
Industrial (6.09%) 1,311,626
Technology (2.11%) 454,196
Utilities (0.04%) 9,000 $ 16,004,805
Uruguay (0.12%)
Industrial 26,775
Vietnam (0.50%)
Government 110,826

TOTAL FIXED INCOME SECURITIES (AMORTIZED COST $28,214,592) 26,434,797

PREFERRED STOCKS (1.10%) 1

United Kingdom
Financial (Cost $231,581) 236,570

TOTAL INVESTMENTS (COST $28,564,933) $ 26,726,627

* Percent of net assets is parenthetically shown for each category.

1 Denotes Level 1 of the fair value hierarchy, amounting to $291,830 for investments (Note 2).
2 Denotes Level 2 of the fair value hierarchy, amounting to $26,434,797 for investments (Note 2).

See accompanying notes.

7
ASHPORT FIXED INCOME FUND INC.
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 24, 2016
(EXPRESSED IN U.S. DOLLARS)

INVESTMENT INCOME AND EXPENSES:

Dividend and interest income $ 1,714,561
Expenses
Interest expense (Note 5) 334,831
Administration fees (Note 3) 148,520
Distribution and service fees (12b-1) (Note 4) 99,013
Investment management fees (Note 3) 99,013
Professional fees 35,691
Other 783
Total expenses 717,851
INVESTMENT INCOME - NET $ 996,710

REALIZED AND UNREALIZED LOSS ON

INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized loss on investments and foreign currencies ( 837,249)
Net change in unrealized loss on investments and foreign
currencies ( 592,545)
NET LOSS ON INVESTMENTS ( 1,429,794)
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS $( 433,084)

See accompanying notes.

8
ASHPORT FIXED INCOME FUND INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JUNE 24, 2016
(EXPRESSED IN U.S. DOLLARS)

INCREASE (DECREASE) IN NET ASSETS

RESULTING FROM OPERATIONS:
Investment income - net $ 996,710
Net realized loss on investments and foreign currencies ( 837,249)
Net change in unrealized loss on investments and foreign currencies ( 592,545)
Net decrease in net assets resulting from operations ( 433,084)

INCREASE (DECREASE) IN NET ASSETS

RESULTING FROM CAPITAL SHARE ACTIVITY:
Capital shares issued - Class A (65,003 shares) 1,167,132
Capital shares redeemed - Class A (7,872 shares) ( 143,177)
Net increase in net assets resulting from capital share activity 1,023,955
NET INCREASE IN NET ASSETS 590,871
NET ASSETS - BEGINNING 20,932,972
NET ASSETS - ENDING $ 21,523,843

See accompanying notes.

9
ASHPORT FIXED INCOME FUND INC.
STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 24, 2016
(EXPRESSED IN U.S. DOLLARS)

CASH FLOWS FROM OPERATING AND INVESTING ACTIVITIES:

Net decrease in net assets resulting from operations $( 433,084)
Adjustments to reconcile net decrease in net assets resulting from operations to
net cash provided by operating and investing activities:
Purchases of investments ( 7,364,684)
Proceeds on sales of investments 6,918,297
Amortization of investments 187,657
Net realized loss on investments 837,249
Net change in unrealized loss on investments 592,545
Changes in operating and investing assets and liabilities:
Interest receivable 33,745
Dividends receivable 20,931
Accrued liabilities 4,344
Due to administrator 145
Due to investment manager 96
Total adjustments 1,230,325
Net cash provided by operating and investing activities 797,241
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in amount due to broker ( 1,993,644)
Capital shares issued 1,339,580
Capital shares redeemed ( 143,177)
Net cash used in financing activities ( 797,241)
NET CHANGE IN CASH AND CASH EQUIVALENTS -
CASH AND CASH EQUIVALENTS - BEGINNING -
CASH AND CASH EQUIVALENTS - ENDING $ -

Supplemental Disclosures of Cash Flow Information:

Interest paid $ 334,831

Income taxes paid $ -

See accompanying notes.

10
ASHPORT FIXED INCOME FUND INC.
NOTES TO FINANCIAL STATEMENTS
(EXPRESSED IN U.S. DOLLARS)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Business

Ashport Fixed Income Fund, Inc. (the "Fund") is an open-ended investment fund
incorporated in the British Virgin Islands ("BVI") as a BVI business company with
limited liability. The Fund is a Private Mutual Fund under the provisions of the
Securities and Investment Business Act ("SIBA") and the Mutual Funds Regulations,
2010, and is regulated under the auspices of the Director of Investment Business of the
BVI Financial Services Commission ("Regulators"). The Fund commenced operations
on October 15, 2001. StateTrust Life and Annuities, Ltd. ("STL"), a related company
by virtue of common management, is the sole investor in the Fund. Investment in the
Fund is directed by STL for the benefit of its customers.

The fiscal year of the Fund ends on the last Friday of June.

The primary objective of the Fund is to achieve high income and capital appreciation
consistent with risk control and diversification of investments.

The Fund is an Investment Company and is applying the guidance in Topic 946 of the
Accounting Standards Codification.

Use of Estimates
The accompanying financial statements are prepared in conformity with accounting
principles generally accepted in the United States of America. These principles require
that management make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

Valuation of Investments in Securities at Fair Value - Definition and Hierarchy

Fair value is defined by the Accounting Standards Codification as the price that the
Fund would receive to sell an investment or pay to transfer a liability in an orderly
transaction with an independent counter-party in the principal market or in the absence
of a principal market, the most advantageous market for the investment or liability.
These accounting rules establish a three-tier hierarchy to distinguish between (1)
inputs that reflect the assumptions market participants would use in pricing an asset or
liability developed based on market data obtained from sources independent of the
reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s
own assumptions about the assumptions market participants would use in pricing an
asset or liability developed based on the best information available in the
circumstances (unobservable inputs); and establishes a classification of fair value
measurements for disclosure purposes. Various inputs are used in determining the
value of the Fund’s investments.

11
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Valuation of Investments in Securities at Fair Value -

Definition and Hierarchy (continued)
The hierarchy is summarized in the three broad levels listed below.

Level 1 - quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including quoted prices for similar
investments, interest rates, credit risk, etc.)

Level 3 - significant unobservable inputs (including the Fund’s own assumptions in

determining the fair value of investments)

In applying the provisions of these accounting rules to the Fund’s portfolio activities
during the year, the following valuation techniques have been employed:

Corporate Bonds and Sovereign Debt

The fair value of corporate bonds and sovereign debt is estimated using recently
executed transactions, market price quotations (where observable), bond spreads or
credit default swap spreads. The spread data used are for the same maturity as the
bond. If the spread data does not reference the issuer, then data that references a
comparable issuer is used. When observable price quotations are not available, fair
value is determined based on cash flow models with yield curves, bond, or single-
name credit default swap spreads and recovery rates based on collateral values as key
inputs. These securities are generally categorized in Level 2 of the fair value
hierarchy.

Exchange Traded Securities

Securities and other investments traded on a national exchange or on the national
market system of NASDAQ are valued at their last reported sale price or, if there has
been no sale on that date, at the closing "bid" price if long, or closing "ask" price if
short. Other securities or investments for which over-the-counter market quotations
are available are valued at their last reported sale price or, if there had been no sale on
that date, at closing "bid" price if long, or closing "ask" price if short as reported by a
reputable source selected by the Investment Manager or the Investment Manager
Designee. The Investment Manager or the Investment Manager Designee has sole and
absolute discretion in valuing any positions for which market quotations are not
readily available or in adjusting the valuation of any other positions. Exchange traded
securities are generally categorized in Level 1 of the fair value hierarchy.

12
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Revenue Recognition
The Fund records all security transactions on a trade-date basis, and realized gains or
losses from security transactions are determined using the specific identification
method.

Dividend income is recognized on an accrual basis as determined by the ex-dividend

date. Interest income is recognized on an accrual basis. Premiums or discounts on
fixed income investments owned or sold short are amortized or accreted over the life
of the fixed income investment on an effective yield basis.

Cash and Cash Equivalents

The Fund considers all money market funds and highly liquid debt instruments with a
purchased maturity of three months or less, to be cash equivalents. From time to time,
the Fund may maintain cash balances with financial institutions in excess of insured
limits.

Taxation
Under current laws of the British Virgin Islands, there are no income, estate, sales or
other British Virgin Islands taxes payable by the Fund, or withholding taxes applicable
to distributions by the Fund, or the payment of net asset value upon redemptions. The
Fund, however, is subject to a 30% withholding tax on United States dividends.

The Fund assesses its tax positions in accordance with "Accounting for Uncertainties
in Income Taxes" as prescribed by the Accounting Standards Codification, which
provides guidance for financial statement recognition and measurement of uncertain
tax positions taken or expected to be taken in a tax return for open tax years (generally
a period of three years from the later of each return's due date or the date filed) that
remain subject to examination by the Fund's major tax jurisdictions. The Fund is
subject to income examination by its major taxing authorities since inception.

The Fund assesses its tax positions and determines whether it has any material
unrecognized liabilities for uncertain tax positions. The Fund records these liabilities
to the extent it deems them more likely than not to be incurred. Interest and penalties
related to uncertain tax positions, if any, would be classified as a component of income
tax expense.

The Fund believes that it does not have any significant uncertain tax positions
requiring recognition or measurement in the accompanying financial statements.

13
NOTE 2. FAIR VALUE MEASUREMENT

The following table presents information about the Fund’s assets measured at fair
value as of June 24, 2016:
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
ASSETS, at fair value (Level 1) (Level 2) (Level 3) Total

Common stocks $ 55,260 $ - $ - $ 55,260

Preferred stocks 236,570 - - 236,570
Fixed Income Securities - 26,434,797 - 26,434,797
$ 291,830 $ 26,434,797 $ - $ 26,726,627

NOTE 3. RELATED PARTY TRANSACTIONS

Investment Management Fees

The Investment Management Agreement (the "Agreement") provides for management
fees equal to 0.50% per annum of the net asset value as of each valuation date, payable
monthly in arrears to the Investment Manager, Advisors International Corp. ("AIC"),
for management and advisory services. The Agreement may be terminated upon at
least ten days written notice by either party. The Agreement is automatically
renewable annually. For the year ended June 24, 2016, investment management fees
amounted to $99,013 of which $8,145 is payable at year-end and are included in due to
investment manager.

Administration Fees
The Administrative Services Agreement provides for administration fees equal to
0.75% per annum of the net asset value as of each valuation date subject to a minimum
monthly charge of $750, payable monthly in arrears to the administrator, AIC, for
financial, accounting and administrative services. For the year ended June 24, 2016,
administration fees amounted to $148,520, of which $12,218 is payable at year-end
and are included in due to administrator.

AIC has a director in common with the Fund and is the owner of the Class O shares.

State Trust Capital, LLC

In December 2015, the Fund purchased a ten year, $500,000 promissory note issued by
State Trust Capital, LLC (STC). The note required interest-only payments during the
first three years at a rate of 3.80%, with principal and interest payments thereafter.
The note was collateralized by certain real property owned by STC. In April 2016, the
loan was sold to an international bank that is related to STC by virtue of common
ownership. Interest income on this promissory note amounted to $6,069 for the year
ended June 24, 2016. STC is related to the Fund via its ownership of AIC.

14
NOTE 3. RELATED PARTY TRANSACTIONS (Continued)

Excess Expense Reimbursement Due from Investment Manager

Pursuant to the Investment Agreement, if the sum of all fees, charges and expenses
(excluding upfront sales charges, sales distribution & service (12b-1) charges,
brokerage commission charges, and margin interest expense) is more than 2.50% of
the net asset value of the Fund, the Investment Manager shall reimburse the Fund such
that the total expenses of the Fund minus the reimbursement are equal to 2.50%,
annualized, of the average net asset value of the Fund. Accordingly, the result of the
excess expense reimbursement is to defer payment to unlimited future periods and
reimburse to Investment Manager when, and to the extent that, the total expense ratio
falls within the permitted maximum.

As of June 24, 2016, there was no excess expense reimbursement required.

NOTE 4. SHARE CAPITAL

The Fund has authorized share capital consisting of 100 Non-Participating Class "O"
voting Shares having a par value of US $1.00 per share, and 50,000,000 Participating
Redeemable Preference Class "A" and Class "C" non-voting Shares, each having no
par value.

The Class A and Class C shares are subject to a front-end sales load based on the
subscription amount at time of subscription. The Class A and Class C front-end sales
load percentages are 2.5% and 1.0%, respectively. Additionally, the Class A and Class
C shares are subject to a distribution and service fee (12b-1) which is a recurrent fee
charged every time a net asset value is calculated and payable on a quarterly basis.
The 12b-1 fees for Class A and Class C shares are 0.50% and 1.00%, respectively. For
the year ended June 24, 2016, 12b-1 fees for Class A shares amounted to $99,013, of
which $25,799 was payable at year-end and are included in accrued liabilities. There
were no Class C shares outstanding at any time during the year. The Fund has waived
the front-end sales load for its sole investor into Class A shares, prospectively.

NOTE 5. RISK CONCENTRATIONS

Clearing and Depository Concentration

The Fund's securities transactions and depository operations are provided by COR
Clearing, LLC whose principal office is in Omaha, Nebraska. At year-end, all
investments and amounts due to broker are held by and due to this broker.
Additionally, the investments serve as collateral for the amounts due to broker, and the
Fund incurred $334,831 of interest expense related to this borrowing, for the year.

15
NOTE 6. FINANCIAL HIGHLIGHTS

Financial highlights for the issued, participating share classes for the year ended June
24, 2016 are as follows:
Class A

Per Share Operating Performance:1

Beginning net asset value $ 19.42
Income (loss) from investment operations:
Investment income - net 2 0.90
Net realized and unrealized loss 3 ( 1.35)
Total from investment operations ( 0.45)
Distributions -
Ending net asset value $ 18.97
Total return ( 2.32)%

Supplemental Data:
Ratios to average net assets:
Total operating expenses before margin interest and 12b-1 fees 1.42 %
Margin interest 1.68 %
12b-1 fees 0.50 %
Total net expenses 3.60 %
Investment income - net 5.00 %
1 For a share of capital stock outstanding throughout the year.
2 Calculated by dividing investment income - net by the average shares outstanding during the year.
3 The amount in this caption may not agree to the aggregate gains and losses for the year, as these
figures are balancing amounts necessary to reconcile the change in net asset value per share.

NOTE 7. SUBSEQUENT EVENTS

The Fund has evaluated subsequent events through September 26, 2016, which is the
date the accompanying financial statements were available to be issued.

16