Publication of monthly factsheet

10 May 2024

UTILICO EMERGING MARKETS TRUST PLC

(LEI Number: 2138005TJMCWR2394O39)

Publication of monthly factsheet

The latest monthly factsheet for Utilico Emerging Markets Trust plc ("UEM" or the "Company") will shortly be available through the Company's website at:

https://www.uemtrust.co.uk/investor-relations/factsheet-archive

Monthly commentary

PERFORMANCE

UEM's NAV total return decreased marginally by 0.1% in April, underperforming the MSCI Emerging Markets total return Index which was up by 1.4% in Sterling terms in the month.

Markets in April were mixed with the US market battling against the stronger than expected March inflationary data reported and the US Consumer Price Index increasing by 0.4% pushing annual inflation up to 3.5% compared to 3.2% reported in February. Resilience of the US economy was also evidenced via stronger reported nonfarm payrolls data as well as better than expected retail sales, indicating that inflationary pressures remain and subsequently dampening market expectations of a cut in interest rates in June to potentially only one or two cuts later this year. As a result, the S&P Index was down by 4.2% in April.

The UK and European markets experienced a different story with lower-than-expected inflationary numbers reported for March, resulting in the Bank of England and the European Central Bank expected to now cut rates sooner than the US Federal Reserve. The FTSE 100 was up by 2.4% for April with the European markets mimicking the direction of the US and the Eurostoxx Index was down by 3.2% in the month.

Emerging markets were also mixed. Turkey was the outperformer for the month with the Borsa Istanbul (BIST) Index up by 9.9% as core inflationary pressures eased slightly and the market now expecting headline interest rates peaking in May at 75%. Argentina also performed strongly this month, up by 9.1%, with investor sentiment seeing significant improvement amid structural economic reforms led by Javier Milei, the recently elected president. For the first time since 2008, Argentina achieved a quarterly fiscal surplus in 1Q24, exceeding by a wide margin the targets set by the IMF. The Hong Kong Hang Seng Index and Chinese Shanghai Index also increased by 7.4% and 2.1% respectively, helped by the better than expected 1Q24 GDP result of 5.3%, indicating that growth is on track to meet this year's government target of 5.0%. Chinese GDP growth was boosted by manufacturing and infrastructure investment, despite the property sector continuing to be a drag. The Indian Sensex Index continued on its upward trajectory, up by 1.2% for the month as the country's general elections started.

The Vietnam Ho Chi Minh Index in April was disappointingly down by 5.8%, as the expectation of "higher for longer" US interest rates continues to put pressure on the Vietnamese currency resulting in the Central Bank increasing the 14 day reverse repo rate by 25bp. In Brazil, the Brazilian Bovespa market was down by 1.7%, impacted by the delay in US rate cuts resulting in a re-pricing of the yield curve but was also affected by the perceived increase in fiscal risk caused by the government's decision to revise its 2025-26 fiscal targets.

In April, Sterling's performance was also mixed, up 2.6% versus the Brazilian Real, 1.9% against the Philippine Peso and 1.7% against the Indonesian Rupee but it was down by 3.4% against the Chilean Peso and 0.9% against the US Dollar and Hong Kong Dollar.

PORTFOLIO

There were no changes to the constituents of the top thirty holdings in April. UEM continued to see a number of its investee companies report strong financial results in the month.

TAV's share price was up by 23.6%, benefitting from 1Q24 results being stronger than expected with revenues up 27.8% and EBITDA increasing 96.8%. Manila Water's share price was up by 10.7% as the market continues to see strong momentum following strong results in March. Kunlun Energy's share price was also up by 16.8% resulting from the positive momentum witnessed in the Hong Kong market in April. Power Grid of India's share price was up by 8.8% during the month.

Weaker price performance in April was seen at Serena Energia, down by 12.6% following the release of data showing weak wind resources for the month. Serena was also affected by the higher re-pricing of the Selic rate during the month which also affected Eletrobras which was down by 10.9%. Nuam was also down by 9.6% on the back of investors taking some profit after a strong performance witnessed in March.

The valuation of UEM's unlisted investment, Petalite, was reduced by £2.1m reflecting continued declines in the share prices of listed EV charging peers and a difficult funding environment for early-stage companies. Petalite is valued at £8.0m as at 30 April 2024, representing 1.5% of UEM's portfolio.

Portfolio purchases amounted to £6.4m and realisations totalled £2.1m

DEBT

UEM's debt remained at nil in the month as UEM repaid all amounts outstanding under the £50m committed multicurrency revolving facility from The Bank of Nova Scotia in March. UEM is currently in discussions regarding a replacement revolving facility and a further announcement will be made in due course.

OTHER

UEM's share price ended April at 226.00p, increasing by 2.3% over the month with the discount narrowing to 17.5% from 19.3%. UEM bought back 0.6m shares at an average price of 222.77p in the month.

Name of contact and telephone number for enquiries:

ICM Investment Management Limited                                 +44(0)1372 271486

Charles Jillings / Alastair Moreton

Montfort Communications

Gay Collins, Pippa Bailey                                                       +44(0)20 3770 7913

utilico@montfort.london