RCS - Utilico Emerging Mkt - UEM celebrates its 20 year anniversary

Utilico Emerging Markets TrustAnnouncement

21/07/2025 07:00

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RNS Number : 7565R  Utilico Emerging Markets Trust PLC  21 July 2025

21 July 2025

UTILICO EMERGING MARKETS TRUST PLC

(LEI Number: 2138005TJMCWR2394O39)

 

Utilico Emerging Markets significantly outperforms MSCI Emerging Markets Index

as it celebrates 20-year anniversary

 

Utilico Emerging Markets Trust plc ("UEM" or the "Company"), a UK listed
investment company focused on global infrastructure and utilities megatrends
in emerging markets, celebrates its 20(th) anniversary as a public company,
having listed on the London Stock Exchange on 20 July 2005.

 

UEM's 20 Year anniversary highlights include:

·  Aggregate NAV total return of 471.7%, outperforming the MSCI Emerging
Markets Index, outperformance driven by decades of experience across the ICM
team;

·    The only emerging markets trust to have increased annual dividends in
each of the last ten years, joining the AIC's next generation of "dividend
heroes";

·   The Portfolio Managers' enthusiasm is as strong as it has ever been
about the potential for the portfolio; and

·   This conviction is further demonstrated through the Company's long-term
approach to buying back shares, being accretive to NAV and beneficial to
shareholders; a total of £179.8m has been bought back since inception

 

The four global growth megatrends on which the managers and their team focus
are: social infrastructure, energy growth & transition, digital
infrastructure and global trade. Regardless of the macro volatility and
geopolitical noise, these megatrends remain fundamental in light of the
infrastructure investment required for both today's needs and tomorrow's
innovation.

 

Since inception to 30 June 2025, UEM has achieved a NAV total return of 9.1%
per annum or 471.1% in aggregate, significantly outperforming the MSCI
Emerging Markets Index which was up by 325.3% over that period. Despite
significant macroeconomic volatility, UEM's investment strategy has also
delivered significant outperformance for shareholders over the medium term.
UEM's net asset value total return for the three- and five-year periods to 30
June 2025 increased by 26.9% and 54.7% respectively, significantly
outperforming the MSCI Emerging Markets Index which was up by 17.2% and 25.5%
respectively.

 

Portfolio managers Charles Jillings and Jacqueline Broers, and the ICM
research team, have decades of experience in stringently researched bottom-up
investing in emerging markets. Charles Jillings has been managing the trust
since its IPO in 2005, and at the start of this year, ICM appointed Jacqueline
Broers as joint portfolio manager alongside Charles. Jacqueline was previously
deputy portfolio manager having joined ICM in 2010. The Portfolio Managers are
as enthusiastic about the potential for the portfolio as they were in 2005, if
not more, given the opportunities they are seeing.

 

Every year for the last ten years, UEM has been able to increase the annual
dividend per share for shareholders, most recently, in the year to 31 March
2025, increasing distributions to 9.125p for the year, a rise of 6.1% from the
previous year. This resulted in the Company joining the Association of
Investment Companies' next generation of "dividend heroes", the only Global
Emerging Markets trust to do so. Given the volatility of emerging market
currencies and the Company's reporting currency in Sterling, this is a
significant accomplishment.

 

The Company has been actively buying back shares, benefitting shareholders as
it increases the NAV per share. Over the past 5 years to 30 June 2025, UEM
bought back 40.9m shares at a cost of £88.8m and since inception, the Company
has bought back 93.1m shares at a cost of £179.8m, some 34% of the current
fund size.

 

 

Mark Bridgeman, Chairman of UEM said: "UEM's focus on infrastructure and
utilities in emerging markets is highly differentiated from both the MSCI
Emerging Markets Index and the Global Emerging Markets AIC peer group and is
expertly managed by a disciplined, bottom-up approach from its Investment
Manager, ICM.

 

"The defensive nature of UEM's infrastructure and utilities portfolio,
supported by global infrastructure megatrends and the manager's disciplined
stock selection, demonstrate the clear differentiation of this investment
strategy. This investment approach aims to generate consistent total returns
for shareholders with typically lower volatility than the index while
providing an attractive dividend income.

 

"With President Trump's focus on tariffs, emerging markets are expected to be
well placed as investors look to capitalise on this dislocation in the
markets. Foreign investors are beginning to look for alternatives to the US in
which to invest, which can only be positive for the asset class. With emerging
markets valuations remaining relatively cheap, these markets are likely to
benefit from increasing investor demand playing very well to our core
investment thesis."

 

 

Charles Jillings & Jacqueline Broers, co-Portfolio Managers of UEM added:
"For 20 years, UEM has focused on well researched, carefully targeted,
bottom-up investing in emerging market infrastructure and utilities companies
which are well placed to benefit from the global infrastructure megatrends.
Whilst we have seen high levels of economic and political uncertainty,
especially in recent years, we have remained focused on our investment
strategy, which we believe will continue to deliver significant value for
shareholders.

 

"This approach has remained consistent since the Company's IPO in 2005 and we
are proud that over two decades our NAV and share price total returns have
significantly outperformed the MSCI Emerging Markets Index.

 

"Emerging markets are widely expected to benefit from a rotation in investor
sentiment away from the US market that is gaining momentum. Whilst macro
volatility remains, this often provides investment opportunities to secure
attractive long-term holdings at compelling valuations. We therefore continue
to remain highly confident that the investment strategy is well placed to
continue its 20-year track record of long-term outperformance."

 

ENDS

 

Name of contact and telephone number for enquiries

 

Montfort Communications

Gay Collins, Alex Everett
            +44 (0) 7798 626282

utilico@montfort.london

 

 

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