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

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