Important Risk Warnings
All investment products will put your capital at risk and any associated tax benefits depend on individual circumstances and may be subject to change in the future. Past performance is not a guide to future performance. Investment returns may increase or decrease because of currency fluctuations. Funds that invest in emerging or frontier market securities carry a greater degree of risk than those that invest in securities of issuers based in more developed countries. This is because emerging and frontier markets may subject such funds to risks such as: inadequate investor protection, contradictory legislation incomplete, unclear and changing laws, ignorance or breaches of regulations on the part of other market participants, lack of established or effective avenues for legal redress, lack of standard practices and confidentiality customs characteristic of developed markets and lack of enforcement of existing regulations.
This video has been approved as a financial promotion by White Oak Capital Management (UK) Ltd[AS1] [JC2] (“White Oak Capital“) on [●] 2023 solely for the purposes of section 21(2)(b) of the Financial Services and Markets Act 2000 (as amended). White Oak Capital is authorised and regulated by the Financial Conduct Authority (“FCA“) with reference number 829693. White Oak Capital does not give investment advice so you need to decide if an investment is suitable for you. If you are unsure whether to invest, you should consult a financial adviser who specialises in advising on shares or other securities and who is regulated by the FCA.
The information in this video is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this video or its accuracy or completeness. This video should not be considered a recommendation by White Oak Capital or its affiliates to invest in Ashoka WhiteOak Emerging Markets Trust plc (the “Fund“) or any other fund or venture with which White Oak Capital and/or its affiliates is or may become involved, or in relation to any subscription for securities, whether actual or in the future.[JC3]
This video is not for release, publication or distribution, directly or indirectly, in or into the Unites States (including its territories and possessions, any state of the United States and the District of Columbia, collectively, the “United States“), Australia, Canada, the Republic of South Africa, New Zealand, Japan, India or any other jurisdiction where such distribution is unlawful, or to US persons, as defined in Regulation S (“Regulation S“) under the US Securities Act of 1933, as amended (the “US Securities Act“). The distribution of this video may be restricted by law in certain jurisdictions and any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
This video is for information purposes only and does not contain or constitute an offer for sale of, or the solicitation of an offer or an invitation to buy or subscribe for, securities to any person in the United States, Australia, Canada, the Republic of South Africa, New Zealand, Japan, India or any other jurisdiction.[JC4]
This video may contain statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”, “may”, “will” or “should” or, in each case, their negative or other variations or comparable terminology. Forward-looking statements are subject to risks and uncertainties and, accordingly, the Fund’s actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These forward-looking statements speak only as at the date of this announcement and cannot be relied upon as a guide to future performance. The Fund, Acorn Asset Management Ltd (the “Investment Manager“), White Oak Capital Partners Pte. Ltd. (the “Investment Adviser“) and White Oak Capital expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by applicable law.
You should read the prospectus relating to the Fund before investing, especially the risk factors set out therein. In addition, you should ensure that you understand and accept fully the risks disclosed under the heading “Key Risks” following this notice, any of which can reasonably be expected to be relevant to an investment in the Fund.
The following risks may reasonably be expected to be relevant to any investment in the Fund and should be considered carefully.
There can be no guarantee that the Fund will achieve its investment objective or that investors will get back the full amount of their original investment. The Fund has a limited operating history and investors have a limited basis on which to evaluate the Fund’s ability to achieve its investment objective. Investor returns will be dependent on the performance of the Fund’s portfolio and the Fund may experience fluctuations in its operating results. The past performance of other investments managed or advised by the Investment Manager, the Investment Adviser or their affiliates cannot be relied upon as an indicator of the future performance of the Fund.
The value of the Fund’s shares and the income derived from those shares (if any) can fluctuate and may go down as well as up. The market price of the Fund’s shares may fluctuate independently of their underlying net asset value and may trade at a discount or premium at different times.
Investor returns will be dependent upon the performance of the portfolio and the Fund may experience fluctuations on its operating results. An investment in the Fund is unsuitable for those who seek investments that are correlated to a stock market index.
It may be difficult for investors to realise their investment and there may not be a liquid market in the Fund’s shares. The operation of the Fund’s discount control mechanism and redemption facility may lead to a more concentrated and less liquid portfolio, which may adversely affect the Fund’s performance and value. Further, buybacks and redemptions may also adversely affect the secondary market liquidity of the Fund’s shares.
The Fund invests in securities that provide exposure to emerging and frontier markets. Where the Fund holds or acquires securities of issuers based in certain emerging or frontier markets, this may carry a greater degree of risk than an acquisition of securities of issuers based in more developed countries.
The Fund’s exposure to emerging and frontier markets may subject it to a number of unusual risks, including inadequate investor protection, contradictory legislation, incomplete, unclear and changing laws, ignorance or breaches of regulations on the part of other market participants, lack of established or effective avenues for legal redress, lack of standard practices and confidentiality customs characteristic of developed markets and lack of enforcement of existing regulations. There can be no assurance that difficulties in protecting and enforcing rights will not have a material adverse effect on the Fund and its operations.
As the Fund will invest in securities that provide exposure to emerging and frontier markets, it may invest in securities that are denominated in a currency other than sterling, the Fund’s base currency, and in companies whose operations are conducted in currencies other than sterling. The Fund is therefore likely to have an exposure to foreign exchange rate risk which may increase the volatility of its share price.
The Fund may use gearing to seek to enhance investment returns. Whilst the use of gearing should enhance the total return on the Fund’s shares where the return on the Fund’s underlying assets is rising and exceeds the cost of gearing, it will have the opposite effect where the return on the Fund’s underlying assets is rising at a lower rate than the cost of gearing or where such return is falling.
The Fund may utilise derivative instruments for gearing and investment purposes and may also use derivative instruments for efficient portfolio management. Such instruments inherently contain much greater leverage than a non-margined purchase of the underlying security or instrument. As a result, small changes in the value of the underlying assets may cause a relatively large change in the net asset value of the Fund. Derivative transactions may also expose the Fund to the creditworthiness of counterparties and their ability to satisfy the terms of such contracts.
The Fund has no employees and is reliant on the performance of third-party service providers. In particular, the Investment Manager and the Investment Adviser perform services which are integral to the activities of the Fund. A failure by the Investment Manager or the Investment Adviser to perform in accordance with their appointment, or to retain key personnel, may have a material adverse effect on the Fund’s profitability, net asset value and the price of its shares.
Any change in the Fund’s tax status or in taxation legislation or practice generally could affect the value of the investments held by it, affect the Fund’s ability to provide returns to investors, or alter the post-tax returns to investors.
Compliance code: 270720231057
[AS1]Please note that White Oak UK will need to be satisfied that it is complying with COBS 4 in approving the video as a financial promotion. In particular, please note the requirements of COBS 4.2 (Fair, clear and not misleading communications), COBS 4.10 (Approving and confirming compliance of financial promotions) and COBS 4.11 (Record keeping: financial promotion).
[JC2]@Pranita Would you be able to confirm this?
[JC3]In GD-28, we have similar disclosure language. This disclosure differs is that it does not mention ‘Views and Opinions’.
As this current disclosure is more relevant to the video disclosure. Do you prefer to include GD-28 below this disclosure or is the current one sufficient?
Views and Opinions
Disclosure on the slide/page
Views and opinions expressed are for informational purposes only and do not constitute a recommendation by White Oak to buy, sell, or hold any security. Views and opinions are current as of the date of this page and may be subject to change, they should not be construed as investment advice.i
[JC4]It appears that this disclosure also covers GD-29 in our disclosure database, which initially I considered adding.
Thus, I have nothing further to add to this point. Please let me know if you have any other thoughts.
In the disclosure section
This press release is not an offer or solicitation to buy or sell any securities.
If AUS is part of the PR
Assets Under Supervision (AUS) includes assets under management and other client assets for which WO does not have full discretion.
[JC5]It appears that this disclosure also covers GD-18 in our disclosure database, which initially I considered adding.
Thus, I have nothing further to add to this point. Please let me know if you have any other thoughts.
In the disclosure section of the material
Emerging markets securities may be less liquid and more volatile and are subject to a number of additional risks, including but not limited to currency fluctuations and political instability.