£406.4m market cap
183p last close
Utilico Emerging Markets Trust’s investment objective is to provide long-term total returns by investing predominantly in infrastructure, utility and related equities, mainly in emerging markets.
Utilico Emerging Markets Trust (UEM) is managed by Charles Jillings at ICM Group. While the company has suffered a tough period of absolute and relative performance, Jillings is very encouraged by the prospects for the fund, given attractive valuations and businesses that are ‘delivering good results’. He believes he can be patient, waiting for UEM’s value to be realised, and in the meantime the trust offers an attractive dividend yield. The manager suggests that over time there is potential for UEM’s discount to narrow if sentiment towards emerging markets improves, which could be helped by a weaker US dollar. For these reasons, along with the potential for an uptick in performance, Jillings believes that it is an opportune time to consider an investment in an emerging markets fund.