Ashoka WhiteOak Emerging Markets (AWEM)

Ashoka WhiteOak Emerging Markets (AWEM) provides differentiated exposure to emerging market equities through a high-conviction, bottom-up strategy with a clear emphasis on under-researched small- and mid-cap companies (SMIDs). Since launch in May 2023, the trust has navigated a difficult period for the asset class, notably 2023 and 2024, yet outperformed its benchmark, with returns driven primarily by stock selection. SMIDs have been a key source of alpha over this time (see Performance), highlighting the strength of WhiteOak’s research platform in less efficiently covered areas of the market.

The team are fundamental stock pickers. Company selection is driven by detailed research supported by two in-house proprietary analysis frameworks: the first, being OpcoFinco, focusses on economic cash flow and the sustainability of excess returns; whilst the second, ABLEx, integrates the analysis of governance and business longevity into valuation. Together these steer the portfolio towards cash-generative, well-governed businesses with durable returns on capital.

Portfolio positioning is therefore a by-product of this stock-led approach rather than macro views. Relative to the benchmark, AWEM maintains a higher allocation to SMIDs and lower exposure to large-cap index constituents, areas where the team’s expertise has added meaningful alpha since inception. Regionally, allocations reflect where opportunities are strongest. India has been a key source of alpha and remains a notable weight, supported by the team’s experience and access to harder-to-reach investments, including IPO-anchor and pre-IPO opportunities. In China, where opportunities are broad but risks higher, the team is selective, investing directly in long-term prospects whilst also gaining indirect exposure through South Africa–listed Naspers and global luxury brands with significant Chinese demand.

Structurally, the trust stands out for its performance-fee-only model (see Charges), aligning manager rewards with relative outperformance, alongside controlled issuance and an annual redemption facility aimed at supporting the share rating. AWEM, as of January 2026, traded on a 1.5% premium (see Discount section).