Utilico Emerging Markets Trust reports slight NAV increase

Published 10/01/2025, 15:30
Utilico Emerging Markets Trust reports slight NAV increase

LONDON - Utilico Emerging Markets Trust PLC (LSE:UEM), an investment trust focusing on infrastructure, utility, and related sectors in emerging markets, reported a modest net asset value (NAV) total return increase of 0.7% for December, trailing the MSCI Emerging Markets Index which rose by 1.5% in the same period, as detailed in their monthly factsheet.

The global markets in December were largely influenced by speculation around the potential economic and geopolitical shifts anticipated with the incoming Trump administration in the U.S. The Federal Reserve's decision to cut interest rates by 25 basis points contrasted with the S&P 500 Index's decline of 2.5% and a strengthening U.S. Dollar.

European Central Bank also reduced rates by 25 basis points, with further cuts expected in 2025 amidst economic and political uncertainty in key nations such as Germany and France. The Bank of England maintained its rates, following a rise in UK inflation to 2.6% in November.

In emerging markets, China's interest rates remained unchanged, with high demand for treasury bonds leading to reduced yields. Indices in Asia showed mixed results, with gains in the Shanghai Composite and Hang Seng Indices, and declines in India and the Philippines. Brazil's significant interest rate hike to 12.3% led to a downturn in Brazilian stocks and currency value.

The Trust's portfolio saw a change with PT Medikaloka Hermina, an Indonesian healthcare provider, replacing Colombia's Interconexion Electrica among the top thirty holdings due to relative performance. Additionally, Kunlun Energy and several Vietnamese investments reported strong share price increases.

UEM's debt level rose to £24.4m, drawn in U.S. Dollars and Euros. The company's share price saw a 6.5% increase by the end of December, narrowing the discount to NAV to 17.4%.

The Trust also bought back 167,144 shares in December, contributing to a total of 3.8 million shares repurchased in the nine months leading up to December 31, 2024. On January 2, 2025, Jacqueline Broers was announced as joint portfolio manager alongside Charles Jillings, having been involved in UEM's management since joining ICM in 2010.

This article 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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