Price (GBX)
98.50 -%
Open / Last close
- / 98.50
High / Low
99.50 / 97.50
Bid / Offer
97.00 / 100.00
Special Condition: -
Trading Status: Post-Close
As at 05.06.20 16:39:05 - All data delayed at least 15 minutes

Ashoka India Equity Investment Trust PLC instruments

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Equity (1)
Code Instrument name Price Change Type Documentation
AIEORD 1P98.50

Price information

What's this?
Open price
Previous close price / date
98.50 / 05 June 2020
52 week range
70.00 / 119.50
YTD return
1 year return

Instrument information

What's this?
Instrument market cap (£m)
Earnings per share
Dividend (yield)
- %
Issue date
06 July 2018
Market identifier code (MIC)
Country of share register
Market segment
Trading service
Date Time Price CurrencyVolume Trade ValueTrade type Trade flag MIC
05.06.20 15:13:43 96.00 GBX 13,429 12,891.84 Off-Book - XLON
05.06.20 13:19:13 97.00 GBX 2,800 2,716.00 Off-Book - XLON
05.06.20 12:51:50 97.00 GBX 8,952 8,683.44 Off-Book - XLON
05.06.20 12:36:48 100.00 GBX 1 1.00 Off-Book - XLON
05.06.20 12:05:38 97.00 GBX 5,000 4,850.00 Off-Book - XLON

Equity Research

from Ashoka India Equity Investment Trust PLC
Don't panic: the case for investing in Asia this ISA season

The coronavirus outbreak in China has developed from a humanitarian catastrophe to a stock market panic. While the short-term economic impact of the virus could well be severe, there are still fundamental reasons to be invested in developing Asia for long-term investors. Historically one reason investors have been encouraged to invest in emerging Asian markets is to benefit from the region’s greater GDP growth. The OECD forecasts that UK real GDP, that is adjusted for inflation, will grow by 2.2% a year between 2020 and 2060, and the USA by 1.9%, whereas China is projected to grow by 2.4% and India by as much as 4.5%.1 Thanks to the power of compounding, this increase amounts to growing 1.1 and 1.3 times larger in the case of the US and UK, 1.5 times in the case of China and 4.5 times in the case of India. Economic theory posits that the long-run return from a stock market should be equal to the long-run growth in corporate earnings, which is determined by long-run GDP growth. On that basis China and India should see much greater stock market gains. This theory has a poor record in practice, and it is now common knowledge that GDP growth and stock market returns are generally not correlated. Indeed, it is possible that the correlation is weakening over time, given the propensity for companies to list in countries outside of their main areas of business. This doesn’t mean that GDP growth potential in emerging markets is irrelevant, however. We would argue that the underlying drivers of GDP growth are very relevant to the earnings potential in individual companies, which means that GDP growth can be valuable information for a stock-picking manager. In fact, we would argue that understanding the reasons behind GDP growth gives a better comprehension of how to invest in developing countries – such as those in Asia – and the advantages they really have. We consider why you might add to your Asia exposure in your ISA this year, despite the short-term issues, and look at some stock-picking trusts set up to generate alpha from the region’s advantages.

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Ashoka India Equity - Overview

Ashoka India Equity’s (AIE) management team uses detailed cash-flow analysis to pick a concentrated portfolio of what they view as the most attractive Indian equities, aiming to outperform the market in all macro environments thanks to stock selection. The team looks for the most compelling investment opportunities across the market capitalisation spectrum, with over 50% of the current AIE portfolio invested in mid caps and small caps. This stock selection process uses a unique approach to cashflow analysis developed by Prashant Khemka, the founder of the management company, and former head of India and global emerging market equities at Goldman Sachs. The team believes this approach is superior to the standard valuation metrics fund managers use as it properly captures the cash generative qualities of a business. The performance of the strategy suggests there may be value in this approach: since launch in July 2018, AIE has strongly outperformed the market thanks to stock selection, as we discuss in full in the Performance section. It has done so with steady outperformance in rising and falling markets too. The track record of the investment approach itself is longer, both in other funds run by the adviser company White Oak Capital Management, and in Prashant’s time at Goldman Sachs. AIE offers access to a process which has taken years to hone, and the track record indicates success in making stock selection the source of returns rather than sector or market cap weight. Another key element to the process is the focus on corporate governance and forensic accounting. This has so far helped the team avoid various frauds and irregular accounting blow-ups that have affected some Indian companies and mainstream funds exposed to them. The White Oak Capital teams focus on finding companies where management’s interests and those of any controlling shareholders are strongly aligned with those of minority shareholders. The team are locally based in Mumbai, and as such bring local knowledge to this endeavour. AIE has been constructed with similar ideas in mind about aligning interests. At the portfolio level, the analysts are compensated predominantly based on an attribution analysis of their sectors’ contribution to the portfolio performance. At the trust level, there is no management fee but only a performance fee worth 30% of the outperformance of the benchmark, the full details of which are in the Charges section. There is also an annual redemption facility which allows investors to exit in full at NAV less costs. AIE has only £69m in net assets, although it has been growing steadily thanks to strong performance leading to demand for issuing shares – the trust has mainly traded on a premium since launch. Last November the board announced a one-year issuance programme which allows it to issue up to 125 million shares (at a premium) over the course of the next year through a variety of means (see the Discount section).

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Class of 2018... Update

Last year set new records for the investment trust sector, with launches from Baillie Gifford, Fundsmith and Mobius Capital Partners amongst others adding to assets which reached a record of £189bn by the autumn. We look at the new funds which came to market and examine the progress of the most interesting so far…

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