Edison Releases Report on Utilico Emerging Markets Trust (UEM)

Edison Investment Research Limited has published a new report on Utilico Emerging Markets Trust (UEM), managed by Charles Jillings of ICM, a value-based investment firm. Jillings notes that the trust’s investee companies are performing well operationally, but this is not yet reflected in the market. According to Jillings, investor distractions include concerns over a potential US recession, the upcoming US presidential election, and ongoing conflicts in Ukraine and the Middle East.

UEM focuses on infrastructure and utility assets, which contribute to its consistently low beta. Recently, the trust resumed using gearing after securing a new £50m debt facility, indicating a bullish outlook from Jillings. Notably, UEM has outperformed the MSCI Emerging Markets Index over the past three years. Since its inception in 2005, the trust’s NAV total return has compounded at an annual rate of 9.2%.