Utilico Emerging Markets Trust reports March performance dip

LONDON - Utilico Emerging Markets Trust PLC (UEM), an investment company focusing on infrastructure, utility, and related sectors in emerging markets, has reported a decline in its net asset value (NAV) total return for March. The NAV decreased by 3.1%, underperforming the MSCI Emerging Markets total return Index, which saw a decline of 1.8% in Sterling terms for the same month.

The company’s performance for the financial year ending March 31, 2025, also saw a downturn, with the NAV total return falling by 2.9%. This contrasted with the MSCI Index, which rose by 5.7% in Sterling terms over the same period.

The decline in UEM’s performance comes amid increased volatility in global markets, largely due to uncertainty surrounding US trade tariffs. The US announced several tariffs during March, affecting various countries and sectors, which led to a general reduction in risk appetite among investors. In response to this uncertain environment, the US Federal Reserve held interest rates steady, though it raised inflation expectations.

Despite the broader market challenges, some emerging markets showed resilience. Asian markets like the Hong Kong Hang Seng Index and the Chinese Shanghai Composite Index saw modest gains, attributed to China’s new consumption plan and fiscal policy adjustments. India’s Sensex Index notably outperformed with a 5.8% increase, benefiting from its lower exposure to US trade and the prospect of further interest rate cuts by the Indian Central Bank.

In Latin America, the Brazilian Bovespa Index and Argentina’s Merval Index both recovered from previous losses, posting increases of 6.1% and 6.0%, respectively. The Polish market also experienced a positive month, gaining 3.7%, reacting to favorable developments in the European Union and Germany.

The British Pound strengthened against most currencies, gaining 2.5% against the US Dollar and appreciating against other emerging market currencies.

UEM’s portfolio performance was mixed, with no new entries into the top thirty holdings. Some companies, such as Aguas Andinas and Ocean Wilsons, reported positive results, while others like Sunevision and Inpost saw share prices decline.

UEM’s debt marginally increased to £17.6m, and the company’s share price decreased by 3.1%, closing the month at 216.00p. The discount to NAV narrowed from 16.8% to 16.0%. During March, UEM repurchased 156,000 shares, and a third quarterly interim dividend of 2.325p per ordinary share was paid on March 28, 2025.

The latest monthly factsheet detailing these results will be available on the company’s website, providing investors with further insights into UEM’s performance and market movements. This article is based on a press release statement from Utilico Emerging Markets Trust PLC.

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