14th Jun 2019 09:52
(Alliance News) - Utilico Emerging Markets Trust PLC on Friday said it delivered a "positive" performance in "difficult markets" in financial 2019, outperforming its benchmark.
At March 31, the emerging market infrastructure and utility investor's NAV per share stood at 249.84 pence compared to 247.22p at the same point the year prior, a 1.1% rise.
The trust declared a total dividend of 7.2p for the period, 2.9% higher than the 7.0p distributed the year before.
Utilico Emerging Markets' NAV total return in the period was 3.5%, ahead of its benchmark - the MSCI Emerging Markets Total Return Index - which was unchanged.
"I am pleased to report that, in difficult markets, UEM has continued to deliver a positive performance. Although UEM's share price discount remains above the levels the board would wish to see, it has narrowed from 14.2% last March to 13.6% at September 30 and narrowed further to 12.8% as at the end of the period," said Chair John Rennocks.
The trust bought back 4.7 million shares in the period to continue to narrow the price discount.
Investment Manager Charles Jillings said: "Emerging markets in the year to March 31 were mixed with most EM indices in negative territory. Notable exceptions were Brazil, up 11.8% and India up 17.3%. The net result was the MSCI remaining largely unchanged. In contrast the EM currency markets were mostly positive against sterling although the Brazilian real declined 8.1% versus sterling."
He continued: "UEM was relatively active during the year, increasing the weight of its top twenty investments, particularly those in Latin America. Over the past two years UEM's Latam exposure has increased from 34.8% to 41.4%. Latam typically offers investments that trade on more attractive valuation metrics, including higher yields."
Gross assets edged higher in the period, rising to GBP581.9 million from GBP579.8 million, with GBP574.2 million in net assets.
"UEM's portfolio is well positioned with a diverse portfolio and an ungeared balance sheet. The management team continues to travel extensively in order to seek out compelling investments that offer excellent returns. As such, it is notable that UEM's portfolio consists of a diverse range of companies that are often under-represented in the MSCI. Our focus remains on delivering positive long-term absolute returns. During the year 80.0% of our investments declared or paid a dividend," added Jillings.
Separately, the trust said Non-Executive Director Garry Madeiros will retire from the board following the company's annual general meeting on September 17.
He will be replaced by Eric Stobart, who is currently a non-executive director of fellow listed Utilico investment company UIL Ltd. Stobart will step down from UIL and join Utilico Emerging Markets in September.
Shares in Utilico Emerging Markets were untraded Friday but last closed at 231.00 pence each.
Related Shares:
Utilico Emerging Markets