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13/03/2024 10:15

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RNS Number : 6958G  UIL Limited  13 March 2024

13 March 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 down by 6.5% in February, behind the FTSE All Share
total return Index which increased marginally by 0.2% over the month.

 

Global markets were fairly strong in February despite the more hawkish message
from the US Federal Reserve that interest rates are likely to remain higher
for longer as economic data from the US continued to be resilient. The US
composite Purchasing Managers' Index (PMI) remained in expansionary territory
and January's US nonfarm payroll data was ahead of expectations. The US market
was also supported by the positive 4Q 2023 earnings reported (five of the
'Magnificent Seven' released results broadly meeting or exceeding
expectations), helping to drive the S&P Index up by 5.2% over period and
reaching a new all-time high in February.

 

The Eurostoxx Index followed suit up 4.9% over the period as data for February
indicated that there was a pick-up in economic activity with the flash
eurozone PMI up to 48.9 from 47.9 in January. Further inflationary pressures
reduced with the eurozone CPI reducing to 2.6%. Market performance in the UK
was essentially flat, despite data pointing to an improving outlook, as GDP
fell in the final quarter of 2023 by 0.3% dragging the UK into technical
recession.

 

Sterling's performance was mixed in February - down 0.7% against the US
Dollar, down 0.3% against the Euro but up 0.8% against the Australian Dollar.

 

In emerging markets, the Chinese Shanghai Composite Index ended the month
where it started the year, up by 8.1% for February. The market was boosted by
more positive activity data over the Lunar New Year period as well as more
supportive economic and financial measures being announced by the government
such as cutting the five-year loan prime rates (benchmark for mortgage rates)
by 25bps and banning short selling. The Hang Seng Index was also up by 6.6%.
Elsewhere in Asia the markets were also positive with the Vietnamese Ho Chi
Minh Index up by 7.6%, the Philippines market up by 4.5% whilst India saw a
more modest increase, with the Sensex Index up by 1.2%.

 

In Latam, the outperformer for the month was Chile, with the IPSA Index up by
7.7% whist in Brazil the market remained subdued, with the Bovespa Index up by
1.0%, slowing down after its strong rally at the end of 2023. The Mexican
market was down by 3.4% hampered partly by January's inflationary figures
which were reported higher than expected resulting in Banxico (Mexico's
central bank) keeping interest rates at 11.25%. Further, Mexico's President
Andrés Manuel López Obrador recently proposed reforms created additional
noise in the market.

 

In the commodities markets, industrial metals were mixed in February, with
copper down by 1.8% but nickel seeing a rebound in pricing, up 10.3%. Precious
metals were also mixed with gold up marginally by 0.2% but silver down 1.2%.
Oil prices continued to creep up, increasing by 2.3% for the month.

 

PORTFOLIO

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

 

Somers' valuation decreased by 6.3%. The fall in price was mainly the result
of Somers' second largest holding, Resimac, whose share price fell by 12.8%
over the month as investors took some profit on the back of the recent strong
rally in the sector based around rate cut expectations providing a soft
landing in mid 2024. During February, one of Australia's largest mortgage
lenders also warned of the increasing financial strain on consumers.  UIL
also holds a significant direct investment in Resimac.

 

Somers entered into an agreement which resulted in the merger of Waverton
Investment Management Limited ("Waverton") with London & Capital Group.
UIL owns 41.7% of Somers and Waverton is Somers' largest holding. Waverton is
an independent investment management business with over £10bn in assets under
management. The transaction will result in Somers receiving two thirds of its
consideration in cash on completion together with a significant shareholding
in the combined new business. The transaction is subject to various
conditions, including regulatory approvals and is expected to complete in mid
2024.

 

Zeta's share price increased by 1.9% over the month.

 

UEM's share price declined by 2.4% in February, as it delivered a NAV total
return of 0.6%, underperforming the MSCI Emerging Markets total return Index
which was up by 5.6% in Sterling terms in the month. UEM's discount to NAV
widened from 14.5% to 17.0%.

 

DEBT

Bank debt was reduced by £5.0m to £10.0m over the month all drawn in
Sterling. Other debt increased from £7.2m to £9.9m in February.

 

ZDP SHARES

In February, the share price of the 2024 ZDP shares appreciated by 1.6% whilst
the 2026 ZDP shares remained flat and the 2028 ZDP shares fell 1.0%.

 

OTHER

UIL's ordinary share price decreased by 6.1% to 115.50p in February while the
discount to NAV was broadly unchanged from 39.6% to 39.3%. The second
quarterly interim dividend of 2.00p per ordinary share in respect of the year
ending 30 June 2024, was declared and will be paid on 4 June 2024 to
shareholders on the register on 10 May 2024.

 

 

 

Name of contact and telephone number for enquiries:

 

Charles Jillings

ICM Investment Management
Limited
+44(0)1372 271486

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