21
June 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
3.8% in May, underperforming the FTSE All Share total return Index
which increased by 2.4% over the month.
Global stock markets were mixed in
May, as inflation in many jurisdictions proved more stubborn than
previously expected. In the US the Federal Reserve kept rates on
hold, notwithstanding which the S&P 500 Index strengthened by
4.8% as consumer spending held up and the rally in AI stocks
continued. European markets were more benign, but also posted
positive performances with the European Central Bank signalling
that policy rates would be cut for the first time since 2019 in the
June meeting. This follows a period of sustained falls in inflation
with concern mounting that the European economy was stagnating. The
Eurostoxx and FTSE 100 Indices were up 1.3% and 1.6% respectively
over the month.
In emerging markets, pre-election
jitters saw the India Sensex ease by 0.3% and the Mexico Bolsa IPC
decline by 2.7%, though both remain close to all-time highs. India
GDP growth again exceeded expectations, coming in at 7.8% in the
quarter ended March 2024. In Brazil, the Bovespa Index fell by 3.0%
after the Central Bank slowed its pace of interest rate cuts. In
China, manufacturing activity unexpectedly contracted in May with
the Shanghai Composite Index declining 0.6% over the month. Vietnam
was a rare bright spot, with the Ho Chi Minh Index up by
4.3%.
Sterling strengthened against most
currencies in May, up 1.7% versus the US Dollar, 3.1% against the
Brazilian Real, and 1.7% against both the Indian Rupee and the
Chinese Renminbi. Sterling was broadly flat against the Euro and
declined by 0.7% versus the Australian Dollar.
In the commodities markets, precious
metals continued to appreciate, with the gold price firming another
1.8% and the silver price soaring by 15.6% over the month.
Industrial metals were also stronger, with the copper price up 0.8%
and nickel price increasing by 2.2% during the month. Concerns over
global growth negatively impacted the oil price, with Brent Crude
oil falling by 7.1% in May.
PORTFOLIO
There was one change to the top ten
constituents of the UIL portfolio in May, with Arria NLG
re-entering and replacing Novareum due to UEM selling half its
shareholding.
Somers, UIL's largest investment, saw
its valuation decline by 0.5%, mainly driven by Resimac's share
price which was down 5.6% over the month. UIL also holds a
significant direct investment in Resimac, which announced the
settlement of an AUD 750m prime Residential Mortgage-Backed
Security transaction, its second for the year. It was pleasing to
note that the merger between Waverton and London & Capital
received FCA approval in early June. Somers is the controlling
shareholder of Waverton and the transaction will provide
substantial liquidity to Somers which will also retain an ongoing
minority position in Waverton.
Zeta's share price was unchanged over
the month, broadly in line with its net tangible assets ("NTA")
which increased by 0.1%. Its discount to NTA was unchanged at
22.1%. In May, the share price of Alliance Nickel increased by
27.3% and Horizon Gold's share price firmed by 1.9%.
Although UEM's NAV total return
declined by 0.3% over the month, it outperformed the MSCI Emerging
Markets total return Index which fell by 1.2% in Sterling terms.
UEM's bid price eased by 0.4% in May, with its discount to NAV
narrowing to 17.2% from 17.5%.
The Market Limited's share price fell
by 13.9% over the month, and Carebook Technologies share price
declined by 8.3%. UIL's other top ten holdings were broadly
unchanged.
Portfolio purchases amounted to £0.15m
and realisations totalled £2.0m.
DEBT
Bank and other debt was unchanged at
£11.1m, all drawn in Sterling.
ZDP
SHARES
In May, the share prices of the 2024
and 2026 ZDP shares were unchanged, while the 2028 ZDP shares
appreciated by 1.0%.
OTHER
UIL's ordinary share price decreased
by 1.0% to 103.50p in May while the discount to NAV narrowed
slightly to 39.8% from 42.2%.
The second quarterly interim dividend
of 2.00p per ordinary share in respect of the year ending 30 June
2024 was paid on 23 May 2024 to shareholders on the register as at
10 May 2024.
Name
of contact and telephone number for enquiries:
Charles Jillings
ICM Investment Management
Limited
+44(0)1372 271486