London Stock Exchange today welcomes Utilico Emerging Markets Trust plc
London Stock Exchange today welcomes Utilico Emerging Markets Trust plc (UEM), an investment trust that invests in listed utility and infrastructure companies in emerging markets, to trading on the Main Market. UEM’s shares will be admitted to trading on the Premium Listing segment of the Official List, at 8:00am on Tuesday 3rd April 2018.
UEM has changed its domicile from Bermuda to the UK and believes that a UK based investment trust with a premium listing on the London Stock Exchange has the potential to improve investor perceptions and support greater awareness and take up of the shares, which in turn may lead to a narrower discount. No new money has been raised during this process, and UEM starts its first day of trading with a market capitalisation of over £500 million.
The ICM investment team, led by Charles Jillings, aims to provide long-term total return by investing in well-managed cash generative companies predominantly in infrastructure, utility and related sectors, mainly in emerging markets. They focus on companies with facilities such as road tolls, electricity, gas and water utilities, ports, stock exchanges, railways, telecoms and satellites with a target investee return of 15% a year.
The company’s portfolio usually comprises 60 to 90 stocks and aims to invest in them over the long-term and typically has low portfolio turnover in a given year. Its largest investment is International Container Terminal Services Inc (ICTSI), a leading global port operator, with terminals in 20 countries. UEM has invested in ICTSI for over 10 years. UEM has strong contacts in its sector, which provide it with relevant country and sector intelligence and new investment opportunities, including access to IPOs and share placings. Rumo S.A., a Brazilian rail-based logistics operator, has risen over 500% since UEM first invested in its capital raise in April 2016 to become one of UEM’s Top 20 positions.
Since inception in 2005, UEM has produced compound growth of 12.1% a year, delivering a NAV total return of 313.9%, against 245.5% from its MSCI Emerging Markets benchmark, while offering an attractive yield of 3.1%
Charles Jillings, chief executive of UEM’s manager ICM Investment Management said: “The Company is well positioned to capitalise on the demand for total return and for exposure to emerging markets. We will continue to invest with a long term horizon in well managed, mature, operational investments with strong cashflows. In investment, you’ve got to have conviction and optimism. That sort of confidence, built up over time, enables us to find investments, and makes sure we don’t back away from them. Our heads are up, not down. And, as of now, we find no shortage of exciting opportunities.”
Dickson Minto is acting as Sponsor to the Group, Norton Rose Fulbright as Legal Adviser, Stockdale Securities as Broker and Montfort Communications as PR Adviser.