LONDON - Utilico Emerging Markets Trust PLC (UEM) reported that its net asset value (NAV) total return increased by 1.4% in April, significantly outperforming the MSCI Emerging Markets Total Return Index, which declined by 2.0% in Sterling terms. This performance comes during a period of heightened market volatility, largely spurred by new tariff announcements from the US President.
April’s financial landscape was rocked by the US’s introduction of "discounted reciprocal tariffs" on imported goods, with rates varying by country. The tariffs led to a retaliatory increase by China and contributed to uncertainty in global trade policies. Amidst these developments, commodity prices fell, suggesting market anticipation of a global economic slowdown.
Investors reacted to the shifting landscape by favoring markets perceived to be less impacted by the tariffs. Notable stock market gains were seen in Brazil, Mexico, Chile, India, the Philippines, and Indonesia, while declines were observed in Vietnam, Hong Kong, China, Argentina, and Turkey.
Currency markets also experienced significant movement, with Sterling strengthening against the US Dollar but weakening against the Euro and Mexican Peso. Conversely, currencies such as the Vietnamese Dong, Turkish Lira, Indian Rupee, and Argentine Peso weakened against Sterling.
UEM’s portfolio underwent changes, with NHPC (NSE:NHPC), CTP, and Helios Towers entering the top thirty holdings. These companies demonstrated positive operational developments, with NHPC focusing on hydropower and Helios Towers on telecom infrastructure. CTP, returning to the top thirty, is active in industrial property development in Central and Eastern Europe.
Despite the broader market challenges, UEM’s share price saw a modest increase of 0.9% to 218.00p by the end of April, although the discount to NAV widened slightly from 16.0% to 16.4%. The company also repurchased 229,000 shares at an average price of 212.38p during the month.
UEM’s debt level saw a marginal increase to £17.8 million, influenced by a stronger Euro, with the facility remaining drawn as EUR 15.0 million and GBP 5.0 million.
The latest monthly factsheet detailing UEM’s performance and portfolio changes will be available on the company’s website. This article is based on a press release statement from Utilico Emerging Markets Trust PLC.
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