15
May 2024
UIL
LIMITED
(LEI
Number: 213800CTZ7TEIE7YM468)
Publication of monthly factsheet
The latest monthly factsheet for UIL
Limited ("UIL" or the "Company") will shortly be available through
the Company's website at:
https://www.uil.limited/investor-relations/factsheet-archive
Monthly commentary
PERFORMANCE
UIL's NAV total return declined by
3.0% in April, which underperformed the FTSE All Share total return
Index which increased by 2.5% over 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
European markets mimicking the direction of the US and the
Eurostoxx Index down by 3.2% in the month. Sterling was mixed
versus major currencies, being up 0.1% against the Euro but down
0.9% against the US Dollar and down 0.4% against the Australian
Dollar.
Emerging markets were also mixed.
China witnessed a better performance with the Hong Kong Hang Seng
Index and Chinese Shanghai Index increasing 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 1.1% for the month, as the
country's general election 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. The Brazilian Bovespa Index was down by
1.7%, also affected by the delay in US rate cuts and by the
perceived increase in fiscal risk caused by the government's
decision to revise its 2025-26 fiscal targets.
In the commodities market, industrial
metals were strong during the month, with copper up by 13.9% and
nickel up 15.1%, fuelled by supply risks, as well as improving
demand. Precious metals were also up with gold up by 2.5% for the
month and silver up 5.3%. Brent oil crept up marginally by 0.4% as
geopolitical tensions in the Middle East remain.
PORTFOLIO
There was one change to the top ten
constituents of UIL's portfolio in April, with Orbital Corporation
being replaced by Novareum Blockchain Asset Fund, on relative
performance.
Novareum is an open-ended mutual fund
that invests in a diversified portfolio of blockchain assets, such
as cryptocurrencies, platform protocols and application tokens. In
April 2024, Novareum's valuation increased by 83.8% due to a large
increase in the value of its crypto portfolio holdings.
UEM's share price was up by 2.3% with
its discount to NAV narrowing to 17.5% from 19.3% despite UEM's NAV
total return decreasing 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.
Somers, UIL's largest investment, saw
its valuation decrease by 1.4%, mainly driven by Resimac whose
share price was down 5.7% in the month on the back of the
expectation that interest rates will stay higher for
longer.
Zeta's share price fell by 7.7% over
the month, although its Net Tangible Assets ("NTA") increased by
0.5% and its discount to NTA widening to 22.1%. In April, the share
price of Horizon Gold continued to firm, increasing by 4.2% whilst
Alliance Nickel decreased by 10.8%.
The Market Limited's share price
increased by 16.1% over the month, while Allectus Capital was down
by 16.3%.
Portfolio purchases amounted to £0.2m
and there were no realisations during the month.
DEBT
Bank and other debt increased to
£11.1m from £10.8m over the month, drawn in Sterling.
ZDP
SHARES
In April, the share prices of the
2024, 2026 and 2028 ZDP shares appreciated by 0.4%, 0.9% and 1.6%
respectively.
OTHER
UIL's ordinary share price decreased
by 6.7% to 104.50p in April while the discount to NAV widened to
42.2% from 39.9%.
Name
of contact and telephone number for enquiries:
Charles Jillings
ICM Investment Management
Limited
+44(0)1372 271486