Utilico Emerging Markets Trust plc (“UEM”) is a UK closed-end investment trust.
UEM’s investment objective is to provide long-term total return through a flexible investment policy that permits it to make investments predominantly in infrastructure, utility and related sectors, mainly in emerging markets.
UEM's investment policy is flexible. It can make investments predominantly in infrastructure, utility and related sectors, mainly in emerging markets, including (but not limited to) water, sewerage, waste, electricity, gas, telecommunications, ports, airports, service companies, rail, roads, any business with essential service and/or monopolistic characteristics and in any new infrastructure or utility which may arise mainly in emerging markets. UEM may also invest in businesses which supply services to, or otherwise support, the infrastructure, utilities and related sectors.
UEM focuses on the under-developed and developing markets of Asia, Latin America, Emerging Europe and Africa but has the flexibility to invest in markets world-wide. UEM generally seeks to invest in emerging market countries where the Directors believe that there are attributes such as political stability, economic development, an acceptable legal framework and an encouraging attitude to foreign investment.
UEM has the flexibility to invest in shares, bonds, convertibles and other types of securities including non-investment grade bonds, and to invest in unlisted securities. UEM may also use derivative instruments such as American Depositary Receipts, promissory notes, contracts for difference, financial futures, call and put options and warrants for investment purposes and efficient portfolio management. UEM may from time to time actively seek to protect UEM’s portfolio and balance sheet from major corrections. This would include foreign currency hedges, interest rate hedges, stock market index put and call options and similar instruments.
The Board has prescribed the following restrictions on the investment policy, all of which are at the time of investment unless otherwise stated:
- Unquoted and untraded investments (excluding UEM's subsidiary UEM (Mauritius) and UEM's investment in a segregated account of Global Equity Risk Protection Limited ("GERP"), an unquoted Bermuda segregated accounts company), must not exceed 10 per cent of UEM's gross assets at the time of investment;
- No single investment (including any investment in GERP) may exceed 20 per cent of gross assets at the time of investment;
- Investments other than in infrastructure, utility and related companies (including GERP) must not exceed 20 per cent of gross assets at the time of investment;
- Investments in a single country must not exceed 50 per cent of gross assets at the time of investment;
- Not more than 10 per cent in aggregate of the value of the total assets of UEM at the time the investment is made will be invested in other closed-ended investment funds which are listed on the Official List maintained by the UK Listing Authority (except to the extent that those investment funds have stated investment policies to invest no more than 15 per cent of their total assets in other investment funds which are listed on the Official List); and
- Regardless of the investment policy of other closed-ended investment funds listed on the Official List and which are invested in by UEM, UEM shall not invest in such funds more than 15 per cent in aggregate of the value of the total assets of UEM at the time the investment is made.
- GERP may not hold more than 50 per cent of the value of UEM's segregated portfolio in index options and GERP may not hold more that 100 per cent of the relevant debt or of the relevant market value in foreign currency by way of foreign exchange options or forwards.
Borrowing and Gearing Policy
UEM may, from time to time, use bank borrowings for short-term liquidity purposes. In addition, the Directors may gear UEM by borrowing on a longer term basis for investment purposes. Borrowings at the time of drawdown must not result in gearing (being total borrowings measured against gross assets) exceeding 25 per cent. Borrowings may be drawn down in Sterling, US Dollars or any currency for which there is a corresponding asset within UEM's portfolio (at the time of draw down the value drawn must not exceed the value of the corresponding asset in the portfolio).
ICM Investment Management Limited (‘ICMIM’) is the Alternative Investment Fund Manager of UEM and joint portfolio manager alongside ICM Limited. ICMIM is also the secretary. Accounting and administration services are provided to UEM by JP Morgan Chase Bank, N.A., London Branch and ICMIM has appointed Waverton Investment Management Limited to provide support services (including middle office, market dealing and information technology support services) to ICMIM in relation to the provision of its services to UEM.
UEM's capital structure is comprised of Ordinary Shares.
UEM's Ordinary Shares are listed on the Premium Segment of the Official List maintained by the UK Listing Authority and traded on the Main Market of the London Stock Exchange.
UEM publishes the Net Asset Value (NAV) for its Ordinary Shares daily via the Regulatory News Service (RNS) of the London Stock Exchange. The news section of this website contains an archive of RNS announcements relating to UEM.
Delayed pricing of UEM's Ordinary Shares are available in the prices section of this website and from various other sources online. Closing mid prices are also published daily in the Financial Times and the Daily Telegraph.
UEM does not have a main country of operation, since it is a global investment company and the weighting of investments will be subject to changes. A summary of the geographic weightings of investments is contained in the monthly factsheet.