REG - Utilico Emerging Mkt - Publication of monthly factsheet

Utilico Emerging Markets TrustAnnouncement

10/04/2026 12:30

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260410:nRSJ0364Aa&default-theme=true

RNS Number : 0364A  Utilico Emerging Markets Trust PLC  10 April 2026

10 April 2026

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 declined by 4.4% in March, a resilient performance,
strongly outperforming the MSCI Emerging Markets total return Index, which was
down by 11.5% in Sterling terms. For the year to 31 March 2026, UEM's NAV
total return was also strong at 25.9%, broadly in-line with the 26.5% gain in
the MSCI EM Index but achieved with much lower volatility. UEM's income for
the year was especially strong with increases in dividend payouts from many
investee companies, including accelerated distributions from some Brazilian
investments ahead of 2026 tax changes.

 

In March, markets reacted negatively to the increased escalation in
geopolitical tensions with the US-Israeli strikes on Iran ("Operation Epic
Fury") and Iran's strikes on its neighbours and shipping in the Persian Gulf.
Despite notable assassinations, swift regime change in Iran did not
materialise and the conflict escalated throughout the month. Marine traffic in
the Strait of Hormuz was severely disrupted, impacting the flow of oil, gas
and their derivatives globally. Energy prices surged with the Brent Crude oil
price rising 63.3% in the month.

 

The steep rise in the price of oil and worries about supply shortages fuelled
renewed inflationary concerns, interest rate expectations and growth
prospects, especially in net energy dependant importing countries in Asia.
Indonesia's JCI Index was down 14.4%, India's Nifty 50 Index was down 11.3%,
Vietnam's Ho Chi Minh Index was down 10.9% and the PSEi Index in the
Philippines was down 10.0%. In Korea, the KOSPI Index declined by 19.1%,
although the index did still gain 19.9% for the first quarter of 2026.  The
S&P 500 Index declined 5.1%, seemingly modest given the circumstances have
affected interest rate policy expectations. The US Dollar regained strength
during the month supported by its "safe-haven" demand due to higher oil prices
being US Dollar denominated, to the detriment of several emerging markets'
currencies.

 

China is seen as somewhat better positioned due to its closer relationship to
Iran, domestic renewable energy infrastructure and large strategic oil
reserves, but its markets also declined with the Shanghai Composite Index down
by 6.5% and the Hang Seng Index down by 6.9%. Latin American markets were seen
as safer havens, with Brazil's Ibovespa Index down by 0.7% as the Central Bank
made a modest 25bps cut to the SELIC rate - albeit the first cut in nearly two
years and potentially indicates the start of an interest rate easing cycle.
Mexico's Bolsa Index declined by 3.9% and Argentina's Merval Index surged
13.5%.

 

PORTFOLIO

UEM's direct exposure to the Middle East remains relatively modest but we
remain mindful of the global impact from a prolonged disruption to oil
supplies and shipping and the knock-on impact on inflation and interest rates.
UEM's portfolio is largely positioned in relatively defensive names with
inflation protection and modest gearing but during the month some adjustments
were made. This resulted in three changes to the top thirty holdings, with
transport related stocks TAV, Motiva and ASUR being replaced by Enerjisa
Enerji, GDS Holdings and Umeme.

 

Enerji Enerjisa is the largest power distribution company in Turkey, serving
12.2m customers across three major concession areas. GDS Holdings is a
Chinese data centre owner and developer using modular construction techniques
to rapidly build cloud and AI data centres for clients such as Alibaba. Umeme,
which formerly held the electricity distribution concession in Uganda,
re-entered the top thirty due to relative valuation.

 

In March, there were four stocks which increased by more than 5%.

 

Celsia's share price gained 7.5% after the announcement of a share buyback
programme and China's Anhui Expressway rose 6.8% on another solid quarterly
result with dividend increase, supported by broader market rotation into
higher yielding, defensive stocks. Enerji Enerjisa's share price gained 6.6%
on good 4Q25 results, which reaffirmed the positive outlook for 2026. Copel
was up 5.3% after solid 4Q25 results and a successful participation in the
2026 reserve capacity auction.

 

Five stocks declined more than 10% during the month. CTP declined 19.8% on
increased risks to the EU's economy, with the potential for higher inflation
and interest rates. Sunevision also declined 19.8% seemingly for similar
reasons relating to macro-outlook and interest rates. FPT Corp and Telelink
Business Services declined, with continuing weak sentiment towards the IT
sector despite solid FY25 results from both companies. KINX declined 15.7%
despite signing an agreement in March to develop new datacentres in
conjunction with Macquarie Asset Management and its parent, Gabia.

 

Portfolio purchases for the month totalled £19.4m and total realisations
amounted to £36.4m.

 

DEBT

UEM's total debt exposure in Sterling terms went up from £16.6m to £21.8m,
as a further £5.0m was drawn down in GBP on the facility at the beginning of
the month, adding to the existing EUR 7.5m and USD 13.5m loans. Following
portfolio realisations, UEM held a cash balance of £14.1m resulting in a
£7.7m net debt position at the end of March.

 

OTHER

UEM's share price ended the month at 271.00p, down 8.4%, with the discount to
NAV increasing from 10.5% to 13.6% as at 31 March 2026.

 

UEM bought back 1.4m shares at an average price of 280.19p in the month taking
the total number of shares bought back in the year to 31 March 2026 to 10.8m
shares, equivalent to 5.8% of its share capital as at 31 March 2025.

 

UEM's gross income has been strong for the year to 31 March 2026,
significantly ahead of expectations. This is primarily due a number of
Brazilian listed companies bringing forward their ex-dividend dates and
distributing excess cash before the increase in Brazilian dividend withholding
tax rates on 1 January 2026 and also due to a higher dividend distribution
from Umeme Limited.

 

The third quarterly interim dividend of 2.42p per ordinary share in respect of
the year ending 31 March 2026, was paid on 27 March 2026 to shareholders on
the register on 6 March 2026.

 

 

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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DOCSFMFFSEMSEEL



            Copyright 2019 Regulatory News Service, all rights reserved