REG - Utilico Emerging Mkt - Publication of monthly factsheet

Utilico Emerging Markets TrustAnnouncement

10/10/2025 10:15

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RNS Number : 9343C  Utilico Emerging Markets Trust PLC  10 October 2025

10 October 2025

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

In September, UEM's NAV total return was up by 1.3% underperforming the MSCI
Emerging Markets total return Index which was up by 7.5% in Sterling terms.
Given UEM's focus on infrastructure and utility stocks, the underexposure to
AI investments, as explained below, is the prime reason for UEM's
underperformance this month. For the first six months of UEM's financial year
to 31 March 2026, UEM's total return was up 12.7% versus a gain of 18.8% in
the MSCI EM total return Index in Sterling terms.

 

September turned out to be another positive month for markets driven primarily
by the Chinese Hong Kong Hang Seng Index which was up by 7.1%, fuelled by the
ongoing (albeit fragile) extension of the US-Chinese trade truce and continued
AI optimism. The AI euphoria was clearly reflected in Alibaba's Hong Kong
listed share price which was up by 53.0% for the month on the back of the
company announcing an increase in AI capital expenditure and a new partnership
with Nvidia. The US market also reflected this positive AI sentiment, as the
S&P 500 Index was up by 3.5% and the Nasdaq up by 5.6%. The US market was
also helped by the US Federal Reserve Bank cutting interest rates by 25 bps
for the first time in 2025 despite inflation ticking up from 2.7% to 2.9%, as
the labour market has begun to show some signs of softening. The US Dollar
appreciated against Sterling by 0.4%.

 

Elsewhere in Asia, the Taiwan Stock Exchange was up 6.6%, again boosted by its
exposure to technology stocks which are benefitting from the AI party. In the
Indonesian market, the JCI Index was up by 2.9%, whilst Thailand's Thai Set
Index was up by 3.0%. The Philippines' PSEi Index was down by 3.3% on the back
of weaker macro economic data and fears of a more hawkish US Federal Reserve.
India was up marginally for the month, with the Nifty Index up by 0.8% as the
stock market continues to see an outflow of foreign capital, despite the
implementation of the GST cut at the end of the month and improved sentiment.

 

Within LatAm, performance was positive although it was overshadowed by the AI
drive seen in other regions. The Brazilian Ibovespa Index was up by 3.4%, with
the Brazilian Central Bank in September keeping the Selic rate at 15%,
signalling a pause in the tightening cycle. The Brazilian Real strengthened
against Sterling by 2.3%. In the Colombian market, the COLCAP Index was up
1.4% and Chilean IPSA Index was up 0.8%. The Mexican Mexbol Index was the best
performer in the region, up by 7.2%, benefitting from Pemex's credit upgrade
and government support. Conversely, the Argentine Merval Index was down by
10.7% on the back of President Milei's worse than expected electoral result in
the Province of Buenos Aires.

 

PORTFOLIO

There was one change to the top thirty holdings in September, with Celsia
replacing Rumo. Celsia is an integrated utilities company listed in Colombia
operating across the Americas.

 

Performance across the portfolio was mixed in September, with the final few
companies reporting results for the period ended 30 June 2025. Most of UEM's
Brazilian investments in the top thirty saw share price appreciation, with
Eletrobras continuing its upward streak, up by 16.3% on the back of announcing
a capital allocation strategy expected to boost dividends and an improvement
of long term power prices in Brazil. Sabesp was up by 7.9% during the month,
and Alupar and Copel were both up by 7.1%.  Other top performers were Kinx
which was up by 15.8%, benefitting from positive AI market sentiment as well
as two shareholders increasing their position within the company. Helios
Towers also increased by 13.7% benefitting from interest rates reductions,
whilst NHPC, the Indian hydro power company, was up by 11.6% as it commenced
work on a 2.9GW project.

 

Four companies within the top thirty saw share price weakness of more than 5%
during the month. Inpost was down by 15.9% despite its 2Q25 results being in
line with expectations, due to mounting concerns about its future relationship
with one of its key clients, Allegro in Poland and teething issues with the
integration of Yodel into its UK business. SUNevision was also down by 10.1%,
despite reasonable 2Q25 results, as a lack of new orders announced was
disappointing. Manilla Water was down by 8.8% as investors took some profit on
the back of strong share price performance whilst FPT was down by 8.5% as
foreign shareholders continue to sell, despite the improvement in its order
book.

 

Portfolio purchases amounted to £16.6m and total realisations were £20.3m.

 

DEBT

UEM's debt position rose during the month with the total debt exposure in
Sterling terms increasing from £17.1m to £21.6m. This was drawn down as GBP
5.0m, EUR 7.5m and USD 13.5m.

 

OTHER

UEM's share price increased by 2.0% in September, ending the month at 255.00p
with the discount to NAV narrowing from 11.9% to 10.5%.

 

During the month, UEM held its AGM and a GM where 97.6% voted in favour to
amend the Articles of Association and to approve the continuation of UEM for
another five years until the AGM in 2030.

 

UEM bought back 1.1m shares at an average price of 250.82p in the month taking
the total number of shares bought back since its year end to 5.8m shares,
equivalent to 3.1% of its share capital as at 31 March 2025.

 

UEM paid its first quarterly dividend of 2.325p per ordinary share in respect
to the year ending 31 March 2026, on 26 September 2025 to shareholders on the
register on 5 September 2025.

 

 

Name of contact and telephone number for enquiries:

ICM Investment Management
Limited
+44(0)1372 271486

Charles Jillings, Jacqueline Broers, Alastair Moreton

 

Montfort Communications

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

utilico@montfort.london

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