UEM posts January gains, outpaces emerging markets index

Published 12/02/2025, 16:24
UEM posts January gains, outpaces emerging markets index

LONDON - Utilico Emerging Markets Trust PLC (UEM), a closed-end investment company, reported a net asset value (NAV) total return increase of 3.0% for January, outperforming the MSCI Emerging Markets total return Index, which saw a rise of 2.3% in Sterling terms. This information will be detailed in the company’s monthly factsheet, which is set to be available on the UEM website.

In a broader market context, developed markets showed positive trends in January, with significant gains in European indices such as the FTSE 100 and the DAX. The S&P 500 Index in the United States also advanced, while the Federal Reserve maintained interest rates. Emerging markets, however, presented a mixed picture with varying performances across different regions.

UEM’s portfolio experienced shifts with Interconexion Electrica (ISA), Corficolombiana, and Anhui Expressway entering the top thirty holdings, replacing China Gas, Medikaloka Hermina, and Power Grid Infrastructure. The changes were attributed to relative performance within the month. Latin American holdings in UEM’s portfolio, particularly in Brazil and Colombia, saw considerable gains. Conversely, Asian holdings were generally weaker, with notable declines in the Philippines and Chinese markets.

The company’s debt structure remained stable, with borrowings in US dollars and Euros, although the Sterling equivalent increased slightly due to exchange rate movements. UEM’s share price stayed unchanged at the end of January, but the discount to NAV widened from 17.4% to 19.8%.

During January, UEM repurchased 302,454 shares, contributing to a total of 4.1 million shares bought back over the ten months leading up to January 31, 2025. This equates to 2.2% of the share capital as of March 31, 2024.

The performance of UEM, particularly its outperformance against the MSCI Emerging Markets Index, along with the portfolio adjustments and share buybacks, are key points of interest for investors and market observers. This news is based on a press release statement from Utilico Emerging Markets Trust PLC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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