29 April 2024
Ashoka
WhiteOak Emerging Markets Trust plc
(the
"Company")
Quarterly
Update – March
2024
The
Company's factsheet as at 31 March
2024 is now available: https://awemtrust.com/factsheet/
The
Company has delivered a NAV total return of 11.5% since inception
to 31 March 2024, outperforming the
benchmark MSCI EM1
(in
sterling terms) by 359bps over the same period. Among
other factors, stock selection within the small and mid-cap segment
has been a key driver of this outperformance. For the first quarter
of 2024, the NAV was up 3.9%, outperforming the benchmark by
85bps.
Key
contributors for Q1 2024 include DOMS Industries (+25.4%, a leading
stationery brand in India), ASML
Holding (+29.4%, leading semiconductor capital equipment
manufacturer), and Benefit Systems (+44.4%, Poland’s largest
wellness company).
Notable
detractors include Hong Kong Exchanges (-13.1%, world’s leading
stock and commodity exchange), Budweiser Brewing (-20.7%, leading
premium brewer in China) and Orion
Corp (-23.6%, one of Korea’s leading food companies).
Market
Review
In Q1
2024, the MSCI EM index was up 3.0%. It underperformed other global
indices like US equities (S&P 500) and MSCI World which were up
11.6% and 10.0%, respectively.
For the
quarter, Information Technology and Energy outperformed, while Real
Estate and Materials underperformed. Large caps outperformed mid
and small caps this quarter. Among major EM markets, Taiwan and India outperformed, while China and Brazil underperformed.
Top
10 Holdings
Top
10 holdings (as at 31 Mar, 2024)
|
Country
|
%
of NAV
|
1.
TSMC
|
Taiwan
|
6.4
|
2.
Samsung
Electronics
|
Korea
|
5.2
|
3.
Hermes
Intl
|
France
|
2.4
|
4.
Rashi
Peripherals
|
India
|
2.1
|
5.
Hong Kong
Exchanges & Clearing
|
China/HK
|
1.9
|
6.
SK
Hynix
|
South
Korea
|
1.7
|
7.
DOMS
Industries
|
India
|
1.6
|
8.
Prosus
NV
|
Netherlands
|
1.6
|
9.
DBS Group
Holdings
|
Singapore
|
1.6
|
10. LVMH
Moet Hennessy
|
France
|
1.5
|
Total
|
|
26.0%
|
Key
Contributors
31
Dec 2023 – 31 Mar 2024
Key
Contributors
|
Ending
Weight
(%)
|
Total
Return
(%)
|
Contribution
to
Return
(bps)
|
DOMS
Industries Limited
|
1.6
|
+25.4
|
+73
|
Hermes
International SCA
|
2.4
|
+21.9
|
+37
|
Disco
Corporation
|
0.4
|
+54.2
|
+37
|
ASML
Holding NV
|
1.5
|
+29.4
|
+33
|
Benefit
Systems S.A.
|
1.1
|
+44.4
|
+32
|
Key
Detractors
31
Dec 2023 – 31 Mar 2024
Key
Detractors
|
Ending
Weight
(%)
|
Total
Return
(%)
|
Contribution
to
Return
(bps)
|
Hong Kong
Exchanges
|
1.9
|
-13.1
|
-38
|
Innova
Captab
|
0.3
|
-17.2
|
-35
|
Budweiser
Brewing Co.
|
0.6
|
-20.7
|
-18
|
AIA
Group
|
0.5
|
-22.2
|
-17
|
ORION
CORP.
|
0.0
|
-23.6
|
-15
|
Source:
Factset. Past performance does not predict future returns. The
performance calculation is based on GBP. Currency fluctuations will
also affect the value of an investment.
1 Benchmark
index - MSCI Emerging Markets Net Return Sterling (Bloomberg
MGEF)
Past
performance cannot be relied on as a guide to future
performance.
About Ashoka
WhiteOak Emerging Markets Trust plc
Ashoka
WhiteOak Emerging Markets Trust plc (AWEMT) is a UK investment
trust seeking to achieve long-term capital appreciation primarily
through investing in a multi-cap portfolio of equities that provide
exposure to global emerging markets. AWEMT is advised by White Oak
Capital Partners Pte. Ltd, founded by Prashant Khemka with leading Emerging Markets
investment experience. WhiteOak Capital Group has delivered an
exceptional track record for its other strategies and has £5.3
billion in assets under management or advisory4.
The Adviser’s analytical approach is integral to disciplined
research process underpinned by proprietary frameworks
OpcoFinco™ for
valuation and ABLExTM for
ESG research. The team at WhiteOak believes that emerging
markets present potential for higher alpha, given that they remain
under-researched and inefficient. AWEMT leverages WhiteOak's
investment approach to capture the higher alpha potential in these
markets. There is no fixed management fee and manager remuneration
is aligned with alpha generation and hence shareholders' interest.
The Investment Manager is remunerated solely as a function of
outperformance over the benchmark.
4 Data
as at 31st
Mar 2024. AUM data refers
to aggregate assets under management or investment advisory for
WhiteOak Group.
Further
Information
For
further information on the Company's investment strategy and
portfolio construction approach as well as details of the portfolio
market cap, regional and sector composition please refer to the
latest factsheet.
Investment
Objective
To achieve
long-term capital appreciation, primarily investing in equity and
equity-related securities that provide exposure to global emerging
markets.
Summary
of Investment Policy
The
Company shall invest primarily in securities admitted to trading on
any stock exchange (which may include stock exchanges in Developed
Markets) that provide exposure to companies that are domiciled in
Global Emerging Markets (EMs), or that are domiciled in Developed
Markets but at the time of investment, derive a majority of their
economic value, revenues or profits from, or whose assets or cost
base are mainly located in EMs.
The
Company's LEI
is 254900Z4X5Y7NTODRI75
For
further information:
Company
Secretary
AWEMT.Cosec@jtcgroup.com
|
+44 207
409 0181
|
|
|
WhiteOak
Capital Partners Pte Ltd.
Prashant
Khemka
|
Via
Buchanan
|
Fadrique
Balmaseda
|
|
Ben
Hayward
|
|
Ellora
Partners
Mark
Thompson
|
+44 (0) 20
7016 6711
|
Eddie
Nissen
|
+44 (0) 20
7016 6713
|
Oliver
Kenyon
|
+44 (0) 20
7016 6704
|
Buchanan
Henry
Harrison-Topham
|
+44 (0) 20
7466 5000
|
Henry
Wilson
|
AWEM@buchanancomms.co.uk
|
George
Beale
|
|