16 July
2024
UTILICO EMERGING MARKETS
TRUST PLC
(LEI Number:
2138005TJMCWR2394O39)
Publication of monthly
factsheet
The latest monthly factsheet for
Utilico Emerging Markets Trust plc ("UEM" or the "Company") will
shortly be available through the Company's website at:
https://www.uemtrust.co.uk/investor-relations/factsheet-archive
Monthly commentary
PERFORMANCE
UEM's NAV total return was 0.2% in
June, underperforming the MSCI Emerging Markets total return Index
which gained 4.7% in Sterling terms in the month.
Global stock markets were mixed in
June. In the US, the Federal Reserve kept rates on hold, and US
markets continued to appreciate, with the S&P 500 gaining 3.5%
in June. The European Central Bank did cut rates as expected in
early June and European markets were generally weaker with the
Eurostoxx and FTSE 100 down 1.8% and 1.3% respectively over the
month ahead of French and UK elections in early July.
In emerging markets, there were
strong technology sector driven rallies in the Taiwanese and Korean
markets. The TAIEX Index gained 8.8% and the KOSPI Index was up
6.1% in June. Both markets are large constituents of the MSCI EM
Index. India's SENSEX Index gained 6.9% in response to the
re-election of Narenda Modi as Prime Minister in a coalition
government which many commentators saw as a "Goldilocks outcome".
In contrast, Claudia Sheinbaum's stronger than expected majority in
Mexico's presidential election was taken negatively by the market,
with a 5.0% decline in the MEXBOL Index in June accompanied by a
6.7% decline in the value of the Mexican Peso versus the US Dollar.
Chinese equity markets were also weaker, with the Shanghai
Composite down by 3.9% and the Hang Seng Index down by 2.0%.
Chile's ISPA Index declined by 3.3% but Brazil's BOVESPA Index
posted a positive return of 1.5% for June in local currency
terms.
Sterling weakened slightly against
the US Dollar and gained marginally against the Euro in June, but
there were significant moves in Latin American currencies, with the
Mexican Peso declining by 6.1% against Sterling, the Brazilian Real
weaker by 4.9% and the Chilean Peso down by 2.0%.
PORTFOLIO
There were three changes to the top
thirty holdings, with Kaspi, Vietnam Holding and Telelink Business
Services re-entering. These three holdings replaced Power Grid of
India and TTS, due to share sales and Grupo Traxion due to relative
valuation. Kaspi is the leading financial services, payments and
e-commerce marketplace provider in Kazakhstan and has seen a strong
appreciation in its share price since moving its international
listing from London to the NASDAQ market in March. Vietnam Holding
is a London Stock Exchange listed closed end fund investing in
Vietnam. Telelink Business Services is a Bulgarian provider of
managed IT services. All three companies have been long term
investments within UEM's portfolio.
In Vietnam, FPT's share price rose
by 11.5% (adjusted for a bonus issue during June) and there were
gains of 3.6% and 4.2% for the Vietnam Opportunity Fund and Vietnam
Holding respectively. In the Philippines, ICT's share price
advanced by 2.5% and Manila Water's share price was up by
1.1%.
There were mixed performances in
China, with China Datang Renewable Power's share price gaining 6.9%
and Citic International Telecom up by 2.3%, whilst Shanghai
Airport's share price was down by 7.2% and China Gas was lower by
5.3%.
Santos bounced back strongly after
its steep share price fall in May, gaining 18.5% in June. Rumo was
up by 4.9% but JSL declined by 10.6% and Orizon's share price was
down by 5.2%. Elsewhere in Latin America, Chile's Aguas Andinas'
share price fell by 4.8% and the Santiago listed Holding Bursatil
Regional declined by 7.0%.
Other significant movements in the
top thirty included Turkish airport operator, TAV, which was up by
7.8% in June, Kaspi's share price was up by 4.8% and KINX was up
3.6%.
Portfolio purchases amounted to
£12.4m and total realisations were £7.9m.
DEBT
UEM's debt remained at nil in June
and discussions for a replacement bank facility are
continuing.
OTHER
UEM's share price total return for
the month was -1.3% with the share price ending June at 221.00p.
The discount to NAV widened to 18.6% from 17.2%. UEM bought back
0.5m shares at an average price of 221.87p in the month, taking the
total shares bought back in the three months to 30 June 2024 to
1.8m, equivalent to 0.9% of the share capital as at 31 March
2024.
A fourth quarterly interim dividend
of 2.15p per ordinary share in respect of the year ended 31 March
2024 was paid on 28 June 2024 to shareholders on the register on 7
June 2024.
Name of contact and telephone number for
enquiries:
ICM Investment Management
Limited
+44(0)1372 271486
Charles Jillings / Alastair
Moreton
Montfort Communications
Gay Collins, Pippa
Bailey
+44(0)20 3770 7913
utilico@montfort.london