18
July 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
4.9% in June, underperforming the FTSE All Share total return Index
which declined by 1.2% over the month.
Global stock markets were mixed in
June. In the US, the Federal Reserve kept rates on hold and US
markets continued to appreciate, with the S&P 500 gaining 3.5%
in June. The European Central Bank did cut rates as expected in
early June and European markets were generally weaker with the
Eurostoxx and FTSE 100 down 1.8% and 1.3% respectively over the
month, ahead of French and UK elections in early July. In
Australia, the ASX-200 advanced by 0.9%.
In emerging markets, there were strong
technology sector driven rallies in the Taiwanese and Korean
markets. Both markets are large constituents of the MSCI EM Index,
which was up 4.7% in Sterling terms over the month. India's SENSEX
Index gained 6.9% in response to the re-election of Narendra Modi
as Prime Minister in a coalition government which many commentators
saw as a "Goldilocks outcome". In contrast, Claudia Sheinbaum's
stronger than expected majority in Mexico's presidential election
was taken negatively by the market, with a 5.0% decline in the
MEXBOL Index in June accompanied by a 6.7% decline in the value of
the Mexican Peso versus the US Dollar. Chinese equity markets were
also weaker, with the Shanghai Composite down by 3.9% and the Hang
Seng Index down by 2.0%.
Sterling weakened by 0.7% against the
US Dollar and 1.1% against the Australian Dollar, whilst gaining
0.6% against the Euro in June. There were significant moves in
Latin American currencies, with the Mexican Peso declining by 6.1%
against Sterling and the Brazilian Real weaker by 4.9%.
In the commodities markets, Brent
Crude oil bounced back, rising 5.9% for the month after weakness in
May. The nickel price declined by 12.5% and copper was down by
4.6%. The gold price was stable.
PORTFOLIO
There was one change to the top ten
constituents of the UIL portfolio in May, with WT Financial
replacing Arria NLG due to a write-down in Arria's carrying
valuation.
The merger between Waverton and London
& Capital completed at the end of June with the cash proceeds
allowing Somers to make a substantial dividend distribution to its
shareholders, including UIL. Adjusted for this distribution,
Somers' NAV declined by 1.6% in the month, principally due to a
7.5% decline in the share price of Resimac, which is also held
directly by UIL.
Zeta's share price rose by 4.2% over
the month, with its net tangible assets ("NTA") increasing by 1.2%.
Subsequent to the month end, Zeta announced that it has received a
non-binding letter of notice from its major shareholders, UIL and
General Provincial Life Pension Fund, who together hold 95% of the
Zeta shares in issue, that they are considering acquiring the
shares in Zeta that they do not currently own by compulsory
acquisition.
A periodic review of the valuation of
Allectus Capital's portfolio resulted in a 21.2% decline in its
NAV.
UEM's NAV total return for the month
was 0.2%. UEM's share price total return eased by 1.3% in June,
with its discount to NAV rising to 18.6% from 17.2%. The Market
Limited's share price fell by 3.2% over the month whilst Carebook
Technologies' share price was unchanged. WT Financial's share price
was up 8.6% in June.
Realisations totalled £1.0m and there
were no material purchases during the month.
DEBT
Bank and other debt reduced to £2.9m
from £11.1m, all drawn in Sterling.
ZDP
SHARES
In June, the share prices of the 2024,
2026 and 2028 ZDP shares appreciated by 0.8%, 2.1% and 1.6%
respectively.
OTHER
UIL's ordinary share price was
unchanged at 103.50p in June while the discount to NAV narrowed
from 39.8% to 36.6%.
The third quarterly interim dividend
of 2.00p per ordinary share in respect of the year ending 30 June
2024 was declared and will be paid on 31 July 2024 to shareholders
on the register as at 5 July 2024.
Name
of contact and telephone number for enquiries:
Charles Jillings
ICM Investment Management
Limited
+44(0)1372 271486