Publication of monthly factsheet

UIL Limited

15 May 2024

 

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                                  [phone]

 

END