The Trust, which will invest in global emerging markets for long-term capital appreciation, will seek to list its first 100 million shares on the Main Market of the London Stock Exchange.
Acorn Asset Management will be responsible for the discretionary management of the company’s assets and will act as its AIFM. The Company will appoint White Oak Capital Partners as the Trust’s investment adviser.
White Oak, which also manages the £205m Ashoka India Equity Trust, is led by CIO and founder Prashant Khemka, who was CIO and lead PM of Goldman Sachs Global Emerging Markets Equity strategy before founding the firm in 2017. The White Oak team will invest £5million in the IPO.
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With no fixed management fee, White Oak is entitled to an alpha fee based on outperformance against the MSCI Emerging Markets Net Total Return Index over a three-year period.
The Trust will also have a discount control mechanism, allowing shareholders to redeem all or part of their shares on a net asset value basis.
The Trust’s Board of Directors, which will be composed of three non-executive directors, will be led by Martin Shenfield, Managing Director of Strategy at TS Lombard. The Directors will participate in the IPO with a total subscription of £70,000.
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“The Board, along with the Investment Adviser, believe that emerging markets represent a compelling investment opportunity,” said Shenfield.
“With valuations in emerging markets at multi-year lows relative to developed markets, they offer an attractive entry point while also exhibiting generally lower inflation, lower debt and higher growth potential.”
Post-IPO, AWEM may issue additional common shares under a 12-month placement program. The Trust expects to publish the prospectus on April 18th.
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