REG - Utilico Emerging Mkt - Publication of monthly factsheet

Utilico Emerging Markets TrustAnnouncement

17/09/2024 07:00

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RNS Number : 3997E  Utilico Emerging Markets Trust PLC  17 September 2024

17 September 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 marginally up in August, a slightly better
performance than the MSCI Emerging Markets total return Index which was down
by 0.6% in Sterling terms in the month.

 

August started with a sharp sell-off in many markets, triggered by the first
rise in Japanese interest rates for 17 years and fears over the US going into
recession, after weak employment numbers at the end of July. Economic
indicators released during August were more mixed and most markets not only
recovered the losses in the early days of August but ended up positive for the
month as a whole. It is now consensus that the first long-awaited rate cut by
the Federal Reserve will be announced at its September meeting. For UK based
investors, the 2.3% gain in Sterling against the US Dollar during the month
was a headwind for Sterling valuations of many international assets.

 

In the US, the S&P500 Index advanced by 2.4% during the month, with the
NASDAQ Composite underperforming the S&P500 Index with a 0.6% gain. In
Europe, the Eurostoxx Index gained 1.7% and the FTSE 100 was up by a modest
0.1%.

 

Many emerging markets also gained in August, supported by the anticipation of
interest rate cuts in the US. In Brazil, the Ibovespa Index increased by 6.5%,
the Philippines PSEi Index was up by 4.2% and Vietnam's Ho Chi Minh Index rose
by 2.6%. There was a more modest gain of 0.8% for India's SENSEX Index.
Mexico's Bolsa IPC Index continued to decline, falling by 2.1% in the month,
ahead of Claudia Sheinbaum's inauguration on 1 October 2024.

 

The Hang Seng Index also increased by 3.7% during August but mainland China
remained weak with the Shanghai Composite falling by 3.3% and approaching
levels not seen since the Covid-19 crisis of early 2020. Business and consumer
confidence in China remains weak, as does the housing market and there are
increasing concerns about deflation. China's export growth remained strong,
but with more countries imposing or increasing tariffs on Chinese products,
the recent higher shipping volumes may be as a result of orders being bought
forward prior to these potential tariff increases.

 

PORTFOLIO

There were two changes to the top thirty holdings in August. Sunevision
Holdings and Interconexion Electrica (ISA) replaced Kaspi and Pertamina
Geothermal Energy primarily due to relative price performance. Sunevision is
Hong Kong's leading data centre operator. Its full year results to June 2024
and upbeat management outlook were well received by the market. ISA, which is
headquartered in Colombia, operates electricity transmission assets and toll
road concessions across Latin America.

 

The portfolio had mixed performances in August. Strong performers included
Sunevision, up by 22.6% on results and outlook, Ocean Wilsons up by 17.5%
after the company confirmed it was in talks with I Squared Capital Advisors
over a potential sale of its stake in Brazilian port operator Wilson Sons and
International Container Terminals was up by 11.9% after it released yet
another set of strong results. Hong Kong's Citic Telecom recovered by 10.6% in
August, after falling sharply in July due to a profit warning. Shares of
Brazilian waste management company Orizon extended last month's rally, rising
by 8.3% this month. The increase was fuelled by the announcement of carbon
credit sales following the certification of the Gold Standard at one of their
landfills.

 

Shares that posted a negative share price movement in August included China
Gas which declined by 7.0% and KINX, the Korean data centre operator who
announced that it had completed its new data centre near Seoul but its share
price was down by 6.3% in August. Serena Energia, the Brazilian renewable
energy generator declined by 5.9% due to weaker than expected wind resources
in July.

 

Portfolio purchases amounted to £10.0m and total realisations were £8.4m.

 

DEBT

UEM's debt at the end of August was nil. During the month UEM announced it had
entered into a £50m multi-currency facility with Barclays Bank PLC on a
secured basis. The initial term is one year and it is expected that the first
drawing on the facility will be in September.

 

OTHER

UEM's share price was unchanged for the month ending August at 223.00p. The
discount to NAV was also unchanged at 16.9%. UEM bought back 0.4m shares at an
average price of 222.13p in the month, taking the total shares bought back in
the five months to 31 August 2024 to 2.6m, equivalent to 1.4% of the share
capital as at 31 March 2024.

 

During August, the Board of UEM declared a first quarterly interim dividend of
2.15p per ordinary share in respect of the year ending 31 March 2025, which
will be paid on 27 September 2024 to shareholders on the register on 6
September 2024. The ex-dividend date was 5 September 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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