Ashoka WhiteOak Emerging Markets (AWEM)

Ashoka WhiteOak Emerging Markets (AWEM) passed its third anniversary in May 2026, and there was much to celebrate, as the trust has outperformed its benchmark since launch. Reflective of the emphasis on bottom-up stock picking of WhiteOak Capital, the trust’s investment advisor, stock selection has been the key driver of Performance. This has been particularly evident in the Indian market, where the team has deep knowledge and significant resources on the ground, and within small and mid caps (SMIDs).

In fact, AWEM’s bias to SMID stocks is a distinctive feature of the trust, currently accounting for approximately 30% of the Portfolio. One example of a SMID stock currently held is Benefit Systems, a Polish business that sells employee benefits packages to corporates. The company dominates its home market and could grow further as it expands into Eastern Europe and Turkey.

However, whether in large caps or SMIDs, WhiteOak’s approach is invariably about investing in attractively valued ‘great businesses’. These are companies capable of sustaining superior returns on incremental capital and scaling over time, led by management teams that execute well and demonstrate strong governance. For that purpose, the team employs two proprietary analysis frameworks: OpcoFinco, which focuses on companies’ cash flows and the sustainability of their excess returns, and ABLEx, used to assess businesses’ ESG practices. This is because the team believes that companies with strong ESG credentials can justify higher terminal valuation multiples.

It is also worth noting that AWEM has consistently traded close to par since launch, with the trust’s Discount currently standing at 0.4%. AWEM benefits from several features designed to manage premiums and discounts, including an active share issuance programme and an annual redemption facility.