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18/08/2023 11:15

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RNS Number : 8057J  UIL Limited  18 August 2023

18 August 2023

 

UIL LIMITED

(LEI Number: 213800CTZ7TEIE7YM468)

 

Publication of monthly factsheet

 

The latest monthly factsheet for UIL Limited ("UIL" or the "Company") will
shortly be available through the Company's website at:

https://www.uil.limited/investor-relations/factsheet-archive
(https://www.uil.limited/investor-relations/factsheet-archive)

 

Monthly commentary

 

PERFORMANCE

UIL's NAV total return was up by 1.1% in July, underperforming the FTSE All
Share total return Index which rose by 2.6% over the same period.

 

Equity markets continued to be positive in July with most markets ending in
encouraging territory supported by global inflation which appears to be
slowing. The US Federal Reserve increased interest rates by 25 basis points to
5.5% as expected; however, it remained non-committal as to whether or not
there would be a further rise in September. Market expectations are also
growing that the US is heading for a soft landing through controlling
inflation without slowing economic growth. For example, July's US consumer
price index data was lower than expected, whilst reported US second-quarter
GDP growth was above expectations.

 

The European Central Bank also followed suit increasing the deposit rate in
July, in line with expectations by 25bps to 3.75% with Christine Lagarde, the
European Central Bank president, indicating that the central bank might be
close to the end of the rate rising cycle as inflationary pressures continue
to ease. In the UK and in Australia, there was a pause on rate increases in
July.

 

The S&P 500 Index was up by 3.1% over the month whilst the Eurostoxx Index
rose by 1.6%. In Australia, the ASX-200 advanced by 2.9%.

 

The majority of emerging markets in July outperformed the developed markets
with eyes closely focused on China. In July, the Chinese Shanghai Composite
Index was up by 2.8% and the Hong Kong Hang Seng Index up by 6.1% as the
Chinese government announced new measures to revive consumption. In addition,
the Chinese central bank, the People's Bank of China, pledged to support the
development of the Chinese real estate market by reducing housing loan
interest rates and down payment ratios.

 

In the currency markets Sterling strengthened against the Euro and the US
Dollar by 0.1% and 1.2% respectively whilst it remained flat against the
Australian Dollar.

 

Sterling was mixed against the emerging market currencies, appreciating 1.5%
against the Indian Rupee but depreciating 0.2% against the Brazilian Real,
1.4.% against the Mexican Peso and 0.4% against the Chinese Renminbi.

 

Commodities saw strong performance in July, with oil prices up by 14.2% to USD
85.56 per barrel, on the back of tightening global supply and rising demand
through the rest of the year. Copper and nickel both continued their recovery
in July, up by 7.1% and 8.5% respectively. Wheat prices also climbed in July
to USD 6.66, up 6.5% after Russia withdrew from the Black Sea Grain
initiative.

 

PORTFOLIO

There were no changes to the top ten constituents of the UIL portfolio in
July.

 

Somers' valuation increased by 4.2%, reflecting the Resimac share price which
increased by 5.7% in July and benefitting from the slowing rate of inflation.
Resimac is also a top ten direct shareholding for UIL.

 

Zeta Resources' NAV rose by 0.5% in July with the discount at 20.0%.  Zeta
Resources' share price was down by 1.6% in July.

 

DEBT

Bank and other debt decreased over the month to £42.6m drawn in Sterling and
US Dollars. There were no foreign exchange hedges as at the end of July 2023.

 

ZDP SHARES

The share prices of the 2024, 2026 and 2028 ZDP shares all decreased over the
month by 0.4% to 123.00p, by 1.7% to 112.50p and 5.2% to 91.50p
respectively.

 

OTHER

UIL's ordinary share price increased by 0.3% to 145.50p in July and the
discount to NAV widened slightly to 27.8% from 27.2%.

 

 

Name of contact and telephone number for enquiries:

 

Charles Jillings

ICM Investment Management
Limited
+44(0)1372 271486

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