Open main menu
Home
Random
Donate
Recent changes
Special pages
Community portal
Preferences
About Stockhub
Disclaimers
Search
User menu
Talk
Contributions
Create account
Log in
Editing
Utilico Emerging Markets Trust
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
==Summary== Utilico Emerging Markets Trust (UEM) is managed by Charles Jillings at specialist investment firm ICM Group. He strongly believes the trust’s portfolio is undervalued and is encouraged by the recent earnings reports from the majority of UEM’s investee companies. The trust has generated robust absolute and relative performance compared with the MSCI Emerging Markets Index over the last 12 months. Jillings continues to invest for the medium to long term in companies with attractive business models and avoids short-term ‘noise’ in global stock markets. UEM’s dividend is more than fully covered by portfolio income and the manager says his confidence in the trust’s prospects is reinforced by the board’s regular repurchases of UEM’s shares. '''The analyst’s view''' The positive relative growth prospects and attractive valuations of emerging compared with developed markets remains intact. UEM offers investors unique exposure to the relatively stable business models of infrastructure and utility companies in emerging regions. They generally have high operating leverage, with long-term assets operating under established regulatory frameworks, which should continue to deliver predictable and sustainable income streams. UEM has a covered dividend, and the annual distribution has grown or held steady every year since the fund was launched in July 2005, while Jillings remains very confident that the trust’s portfolio is undervalued. ESG considerations are becoming an increasingly important element to UEM’s investment process. However, if a potential investment has a high total return potential but a low ESG score, it will not automatically be disregarded as an addition to the trust’s portfolio, as ESG is part of the investment process, not the driver. '''Outperformance may warrant a higher valuation''' UEM’s discount remains higher than the board’s desired sub-10%. One may argue that the trust’s solid absolute and relative performance over the last 12 months could warrant a higher valuation. UEM’s shares are currently trading at a 14.5% discount to cum-income NAV, which compares with the 12.1% to 12.4% range of average discounts over the last one, three and five years.
Summary:
Please note that all contributions to Stockhub may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here.
You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see
Stockhub:Copyrights
for details).
Do not submit copyrighted work without permission!
Cancel
Editing help
(opens in new window)