REG - Utilico Emerging Mkt - Publication of monthly factsheet

Utilico Emerging Markets TrustAnnouncement

16/07/2024 11:45

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RNS Number : 6176W  Utilico Emerging Markets Trust PLC  16 July 2024

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
(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

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