Publication of monthly factsheet

8 July 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

Monthly commentary

PERFORMANCE

UEM's NAV total return was up by 2.8% in June, underperforming the MSCI Emerging Markets total return Index which increased by 4.1% in Sterling terms during the month. For the first quarter of UEM's financial year to 31 March 2026, the NAV total return was up by 8.2% significantly outperforming the MSCI Emerging Markets total return Index which increased by 5.4% in Sterling terms for the quarter.

June was another month of heightened political tensions, with Israel launching attacks on Iranian nuclear and military facilities, reprisals from Iran and on 21 June 2025, a US strike on three Iranian nuclear sites. This caused the oil price to surge temporarily as traders feared further escalation of the conflict and possible disruption to shipping in the Strait of Hormuz. However, hours after a carefully choreographed attempted attack on the U.S.'s Al Udeid Air Base in Qatar, President Trump announced a ceasefire, defusing tensions. The oil price declined from its peak level and stock markets witnessed a relief rally, with the S&P 500 Index ending the month up 5.0%.

On 26 June 2025, President Trump announced that the US had signed a trade deal with China following talks in London, but details were not forthcoming. The Shanghai Composite Index gained 2.9% and Hong Kong's Hang Seng Index rose by 3.4% in June. President Trump's "Liberation Day" tariffs on other countries, having been postponed in April, are now due to be implemented on 9 July 2025, but details remained elusive during the month and further news may trigger more market volatility as the day nears.

The Federal Reserve continued to hold US interest rates in June, as did the Bank of England, but the European Central Bank cut rates by 25bps at the beginning of the month. India cut interest rates by a deeper than expected 50bps to 5.5% and India's SENSEX Index responded positively with a 2.6% gain.

In contrast to cuts elsewhere, the Central Bank of Brazil raised the SELIC interest rate by 25bps to 15.0% and the committee signalled that rates may remain at this level for "a very prolonged" period. The Brazilian Real strengthened by 3.4% against Sterling and the Ibovespa Index advanced by 1.3%.

Other notable stock market moves included Korea's KOSPI Index which surged 13.9%, on a post-election, technology led rally with hopes of positive reforms to corporate governance in the country. Turkey's BIST Index increased by 10.3% in June following four consecutive months of decline but the Turkish Lira lost 3.0% of its value against Sterling in June. Declining markets included Argentina where the MERVAL Index fell by 12.5% in June. Political instability in Thailand resulted in a 5.2% fall in the SET Index and sentiment in Indonesia continues to remain weak with the Jakarta JCI Index declining by 3.5% during the month.

Currency wise, recent trends continued with the US Dollar weakening further, and European and some Latin American currencies continuing to strengthen. Sterling gained 1.6% against the US Dollar but fell by 1.7% against the Euro. The Philippine Peso was noticeably weak, declining by 2.5% against Sterling.

PORTFOLIO

There were two changes to the top thirty holdings in June, with Brazilian rail freight operator Rumo and Turkish airports operator TAV returning to the top thirty, replacing Serena Energia and Grupo Taxion. Serena is in the process of being taken private and subsequently UEM reduced its holding in the month.

Overall, the performance of portfolio holdings was generally positive. UEM's data centre investments had a strong month, reflecting positive sentiment towards the sector after a number of peers upgraded their guidance. KINX was up by 27.4%, also benefitting from Korea's post-election rally and SUNeVision's share price advanced by 12.4%. Manila Water's share price was up by 19.0% as its peer Maynilad Water filed for an IPO, driving interest in the sector. TAV increased by 21.6% reflecting the strength in the Turkish stock market. Ocean Wilsons gained 8.3% as it launched a tender offer and potential merger with Hansa Investment Company. CTP was up by 6.5% as it benefits from lower Euro interest rates.

There was only one stock in the top thirty holdings that declined more than 5.0% during the month, Eletrobras, which declined by 5.4%.

Portfolio purchases amounted to £14.4m and total realisations were £20.5m.

DEBT

UEM's debt position was unchanged with the overall debt facility for the month remaining drawn as EUR 7.5m, USD 7.5m and GBP 5.0m. The unrealised FX gain in Sterling terms due to the weaker US Dollar was offset by a similar loss due to the stronger Euro, with the liability in Sterling terms remaining at £16.9m. 

OTHER

UEM's share price increased by 1.2% in June, ending the month at 244.00p and a fourth quarterly interim dividend of 2.325p per ordinary share in respect of the year ended 31 March 2025, was paid on 27 June 2025 to shareholders on the register on 6 June 2025. The discount to NAV increased from 11.0% to 11.6%.

UEM bought back 1.7m shares at an average price of 239.73p in the month taking the total shares bought back since its year end to 2.6m shares, equivalent to 1.4% of the share capital as at 31 March 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

[email protected]