Former Goldman Sachs manager Prashant Khemka has announced plans to launch his own investment trust focusing on Indian equities, which will not charge an annual management fee.
The Ashoka India Equity investment trust has announced its intention to launch its initial public offering (IPO) on the premium segment of the main market of the London Stock Exchange, targeting an issue of £100m.
It will be a high conviction, long-only investment trust, investing mainly in stocks listed in India and listed stocks of companies with a significant presence in India.
The trust will take a benchmark-agnostic approach and expects to hold between 20 and 40 companies that can make a secular and steady long-term return for investors.
The issue will be achieved by means of a placing, offer for subscription and intermediaries offer of ordinary shares. In addition, pursuant to the prospectus, a share issuance programme will allow the trust to issue up to 200 million further ordinary shares and/or C shares during the 12 months following publication.
The trust will be managed by a team led by the company's founder Prashant Khemka who most recently worked at Goldman Sachs Asset Management, where he was CIO and manager of its India Equity fund for a decade.
He also managed the GS Global Emerging Markets (GEM) Equity fund from 2013 to 2017.
There will be a 'performance first' investment culture that is aligned with the company's shareholders meaning there will be no charge an annual management fee but instead a performance fee, paid in shares subject to delivering outperformance versus the MSCI India IMI Index total return over the medium-term.
The trust will also have an annual redemption facility in order to assist with discount control. Director fees will also be paid in shares.
The team believe the economic evolution of India is at a stage where it presents a "multi-generational investment opportunity".
It said: "India not only offers strong domestically driven growth led by attractive demographics, domestic consumption and investment, but also has the institutional infrastructure of a mature democracy evident by an independent central bank, election commission and judiciary.
"The Indian economy has been growing at approximately 7% per annum for more than a decade and is expected to grow at similar pace going forward.
"This growth is driven by a number of structural factors such as improving demographics and domestic consumption demand for goods and services, infrastructure developments, and increasing liberalisation of the economy."
Peel Hunt is acting as sole sponsor, placing agent and intermediaries offer adviser to the company and following the IPO, will act as its corporate broker.
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