Utilico Emerging Markets posts positive first-half return

Utilico Emerging Markets posted its unaudited statement of results for the six months to 30 September on Wednesday, reporting its net asset value total return per ordinary share as positive at 13.3% in the half year.

The AIM-traded firm said that since inception in 2005, UEM has achieved an NAV compound total return of 11.9%.

It proposed an increase in third and fourth quarterly dividend payments to 1.70p from 1.625p meaning the total for the year to 31 March 2017 is set to rise to 6.65p from 6.40p, an increase of 3.9%.

The forecast 6.65p distribution represents a yield on the closing share price of 206.75p as at 30 September, of 3.2%.

“The recent US presidential election and the Brexit vote earlier this year have significantly increased uncertainties in the outlook for world markets including the emerging markets,” said chairman John Rennocks on the company’s outlook.

“Depending on the policies pursued by the USA and UK and their trading partners, the outcomes could have positive or negative implications for emerging markets.”

Rennocks said the board does expect the US president to pursue strong domestic infrastructure investment which should be positive for commodities and emerging markets.

“However, we are cautious about protectionist policies which might be adopted.

“The implications of these policy decisions could significantly impact the global economy and financial markets in general and the exchange and interest rates in particular.”