Ashoka WhiteOak Emerging Markets Trust plc (AWEM) has announced the opening of its annual voluntary redemption facility, allowing shareholders to redeem all or part of their ordinary shares for cash at the 31 December 2026 Redemption Point. The trust, which has delivered a NAV total return of 73.1% and a share price total return of 68.5% since its IPO on 3 May 2023, confirms that none of its directors will be participating in the redemption. Shareholders wishing to submit valid redemption requests must do so by 1 December 2026, with redemption monies expected to be dispatched on or before 15 January 2027.

Key Points

  • Ashoka WhiteOak Emerging Markets Trust plc (AWEM) — an emerging markets-focused investment trust listed in the UK
  • The company has activated its annual voluntary redemption facility, with the Redemption Point set at 6 p.m. on 31 December 2026
  • Since IPO on 3 May 2023, AWEM has outperformed the MSCI Emerging Markets Net Total Return GBP Index by 10.0 percentage points on a NAV total return basis
  • Investors should note the 1 December 2026 deadline for submitting redemption requests and the potential income tax implications of using the facility

AWEM's Redemption Facility Structure and December 2026 Key Dates

The voluntary redemption facility operates annually on the last Business Day of December. Shareholders seeking to redeem certificated ordinary shares of 1p each must deliver a completed Redemption Request form together with their share certificate to the company's registrar, Computershare Investor Services PLC, by 1 December 2026. For uncertificated shares held via CREST, a Transfer to Escrow instruction must be received by 1 p.m. on 1 December 2026. The company states it will notify shareholders of the Redemption Price and dispatch redemption monies on or before 15 January 2027, with balance certificates sent by the same date.

How the Redemption Price Will Be Calculated for the December 2026 Point

The announcement confirms that directors retain discretion over how the Redemption Price is calculated. It may be set equal to the Dealing Value per ordinary share at the relevant Valuation Point, or alternatively by reference to the proceeds generated from a Redemption Pool created specifically to fund the redemptions. The announcement states that in either scenario the Redemption Price will represent a discount to the company's NAV at the Redemption Point. Directors have indicated they are minded to approve all valid redemption requests unless exceptional circumstances would make doing so contrary to shareholders' interests.

AWEM's NAV Performance and Near-Par Trading Record Since May 2023 IPO

Since its IPO on 3 May 2023, AWEM has traded at an average discount to NAV of just 0.15%, which the company describes as reflecting a consistently strong rating. Over the 12 months to 2 November 2026, that average discount widened marginally to 0.3%, still considered close to NAV. The trust has delivered NAV and share price total returns of 73.1% and 68.5% respectively since IPO, outperforming the MSCI Emerging Markets Net Total Return GBP Index return of 63.1% over the same period by 10.0 percentage points.

Tax Implications Shareholders Should Consider Before Redeeming AWEM Shares

The announcement highlights a material tax consideration for private shareholders using the redemption mechanism. Gains realised through the redemption facility could be subject to income tax rather than capital gains tax, which may apply had shares been sold on the open market instead. The company notes that individual circumstances vary and strongly encourages shareholders who are uncertain about the tax or other implications of redemption to seek independent professional advice before submitting a request. Redemption Request forms are available from the company's website at awemtrust.com or directly from Computershare Investor Services PLC.