Edison Investment Research Highlights The Undervalued Assets of Utilico Emerging Markets Trust

Edison Investment Research recently reviewed Utilico Emerging Markets Trust (UEM), managed by Charles Jillings of ICM, and found that the quality of the trust's assets might be underappreciated. Jillings, alongside deputies Jacqueline Broers and Jonathan Groocock, acknowledges the robust performance of companies within UEM’s portfolio, which focuses on infrastructure and utilities in emerging markets. Their investments have showcased strong top-line growth and improved cost efficiency, contributing to superior margins.

The team's dedication to thorough due diligence and strategic stock selection has driven UEM’s net asset value (NAV) to outperform the MSCI Emerging Markets Index consistently over various periods, highlighting notable success over the last three years. Since its inception in 2005, UEM has achieved an annual compounded NAV total return of 9.5%.

Jillings points out the undervaluation of the trust’s portfolio despite the investee companies’ leading performances in their respective sectors. With most of these companies paying dividends, and the trust offering an attractive 3.8% yield, they suggest that it might be an opportune time for investors to consider this high-quality, asset-backed portfolio.