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16/02/2024 10:00

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RNS Number : 4446D  UIL Limited  16 February 2024

16 February 2024

 

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 0.2% in January, ahead of the FTSE All Share total
return Index which declined by 1.3% over the month.

 

Global stock markets were mixed in January, as the continued downward trend in
inflation led to the US Federal Reserve removing its tightening bias but
pushing back on hopes of imminent rate cuts. The S&P 500 Index firmed by
1.6%, reflecting continued performance which has been heavily concentrated in
the "Mag 7" (Amazon, Apple, Google, etc). It was notable within this group
that Tesla warned on slowing EV demand and intense competition from Chinese EV
manufacturers. China exporting deflation and undercutting global rivals in
targeted sectors is a developing trend worth watching. The DXY Dollar Index
firmed.

 

In Europe, inflation fell to 2.8% in January, adding further pressure on the
European Central Bank to cut rates, though core inflation remained sticky at
3.3%. The Eurostoxx Index climbed by 2.8% over the month. In the UK, the
Monetary Policy Committee is holding policy rates flat with consumer price
inflation remaining unchanged at 4.0%. Sterling strengthened against most
currencies, up 3.1% against the Australian Dollar and 1.6% versus the Euro,
while easing very slightly against the US Dollar.

 

In emerging markets, China continued to disappoint, with the Hang Seng Index
plunging by 9.2% over the month, not helped by the bankruptcy filing of a
major player in China's USD 3 trillion shadow banking sector. The Sensex Index
hit an all-time high during the month as the bull run in India continued,
though profit-taking saw it end the month down 0.7%. Meanwhile, the Brazilian
Bovespa Index was more subdued, retracing by 4.8% after a very strong run to
an all-time high at the end of 2023.

 

In the commodities markets, industrial metals were mixed in January, with
copper up 0.4% but nickel continuing to slide, down by 2.2% over the month.
Precious metals softened, with the gold price easing by 1.1% and the silver
price declining 3.5%. Heightened geopolitical tensions in the Middle East
following the Houthi attacks on shipping in the Red Sea saw the Brent oil
price rise by 6.1%.

 

PORTFOLIO

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

 

Somers' valuation increased by 3.0%, mainly driven by its second-largest
holding, Resimac, whose share price was up by 12.5% over the month. This
followed receding concerns that the Reserve Bank of Australia would increase
rates again after reports that consumer price inflation fell to a two-year low
of 4.1% in the December quarter. UIL also holds a significant direct
investment in Resimac.

 

Zeta's share price declined by 5.5% over the month, reflecting broad softening
of its underlying portfolio of listed investments and the wider commodity
markets. Horizon Gold's share price was down 5.2% and Alliance Nickel fell by
19.0% during the month.

 

UEM's share price declined by 0.2% in January, as it delivered a NAV total
return of 0.5%, outperforming the MSCI Emerging Markets total return Index
which fell by 4.3% in Sterling terms over the month. UEM's discount to NAV
narrowed slightly from 14.7% to 14.5%.

 

Carebook Technologies' share price fell by 20.0% over the month, while the
share prices of UIL's other top ten holdings were broadly unchanged.

 

DEBT

Bank debt was unchanged at £15.0m over the month, drawn in Sterling. Other
debt decreased from £9.8m to £7.2m in January.

 

ZDP SHARES

In January, the share prices of the 2024, 2026 and 2028 ZDP shares appreciated
by 0.8%, 5.1% and 7.8% respectively, trading at 128.00p, 114.00p and 96.50p
respectively.

 

OTHER

UIL's ordinary share price decreased by 3.1% to 123.00p in January while the
discount to NAV widened to 39.6% from 37.5%.

 

 

Name of contact and telephone number for enquiries:

 

Charles Jillings

ICM Investment Management
Limited
+44(0)1372 271486

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