Utilico Emerging Markets Trust (UEM) is managed by Charles Jillings at ICM Group. It is a specialist fund focusing on infrastructure and utility assets in emerging markets. The manager is encouraged by the prospects for UEM’s investee companies, supported by urbanisation and significant growth in the regions’ middle classes. He also suggests that it ‘is a very interesting time in the world’, with issues such as climate change and the shift to renewable energy high up on the global agenda, which should be beneficial for UEM’s investments. While not used as a formal benchmark, as shown in the chart below, the trust’s NAV has markedly outperformed the MSCI Emerging Markets Index over the last decade.
Emerging markets offer the prospect of higher growth than developed economies, supported by urbanisation and an expanding middle class, which is expected to double in the next 10 years. This is a powerful positive demand driver for the development of infrastructure and utility assets.
Specialist emerging markets fund offering a 3.2% dividend yield.
Diversified portfolio of high-quality infrastructure and utility investments.
Since inception, UEM has generated an average NAV total return of 10.9% pa. Long-term outperformance versus the MSCI Emerging Markets Index.
Highly experienced investment team that has strong, supportive relationships with investee companies.
UEM’s current 12.5% discount to cum-income NAV compares with the 10.9% to 11.8% range of discounts over the last one, three and five years, and is meaningfully narrower than the 16.9% 10-year widest point in late October 2018. UEM has a progressive dividend policy; its annual distributions have been increased or maintained since the fund was launched in 2005, and it currently offers a 3.2% yield.