Poland - The Economic Tiger of CEE

Poland is a textbook example of how to escape the middle-income trap. In the last 24 years the Polish economy has grown at an average of 3.6% per annum, nearly twice the pace of global advanced economies over the same period and reached “high-income” classification by the World Bank in 2009 – just 19 years after the fall of communism. It has done so with impressive consistency, registering growth in all but one of those years (2020), and reaching €744bn last year – the 6th largest in the EU. There are many reasons for the country’s success, including its reintegration into the European economic space since 1990 and the successful political reforms of its institutions. This has led to an explosive growth of exports, large amounts of FDI and, critically, Poland has been the largest net recipient of EU funds which has boosted the country’s infrastructure. Since joining the EU in 2004, Poland has received €232bn, while contributing €77bn over the period.


Hear from our Deputy Portfolio Manager, Jonathan Groocock, as he provides a market overview and a portfolio update on UEM's performance for May.


In May, the US economy took two steps forward and one step back from that elusive pivot. Jobless claims and the Institute of Supply Management suggested weakness in the US, but nonfarm payrolls were much stronger than expected. The US 10 year yield was four basis points lower on June 10th than on May 10th. Our outlook synopsis remains that the disinflation trend is still intact, at least for now. We expect core PCE to drop to 2.5% from 2.8% as lower shelter costs and declining wage costs feed into the year-over-year measure. We expect the jobs market to continue to slow and rebalance. The recent JOLTs report points to this loosening in the jobs market. However, getting inflation much lower than 2.5% could be a struggle as the economy and business cycle still looks resilient.

Why El Nino & La Nina are important investment indicators for UEM

In this video, our Latam Investment Strategist Eduardo Greca has outlined the key considerations of El Nino & La Nina impacts for the region, and why these are important investment indicators for UEM


Hear from our Deputy Portfolio Manager, Jacqueline Broers, as she provides a market overview and a portfolio update on UEM's performance for April.

Weathering the Market: El Niño and La Niña

El Niño and La Niña are critical climate phenomena that significantly influence global weather patterns, impacting economies and industries worldwide. UEM has over 30% AUM exposure to South America, and as our Latam Investment Strategist, Eduardo Greca, CFA discusses, understanding these climate phenomena is crucial for anticipating the economic implications and how disruptive or beneficial they can be for some companies. Understanding the impacts of these climate phenomena and the potential for share price dislocations they can create opens up opportunities for UEM - find out more in our latest Insight.

Serena Energia Overview

Our Deputy Portfolio Manager, Jonathan Groocock, shares an insight into one of UEM's top holdings, Serene Energia. Serena operates wind and solar assets mainly in Brazil, and Jonathan covers current projects and future initiatives for this company.

International Container Terminal Services Overview

Hear from our Deputy Portfolio Manager, Jacqueline Broers, as she shares an insight into one of UEM's top holdings, International Container Terminal Services Inc (ICT). ICT operates a global port management company headquartered in the Philippines. It acquires, develops, manages and operates small to medium-sized container terminals worldwide with a focus on origin and destination ports.

Serena Energia – Brazilian Energy Transition Growth Engine

Brazil is one of the largest emerging markets economies thanks to its enormous agricultural and mineral resources. But it is often overlooked that it is highly exposed to the Energy Transition Megatrend, being blessed with another extremely valuable resource – renewable energy. One company which has been driving incredible growth in wind and solar assets is Serena Energia, a top 30 investment at Utilico Emerging Markets Trust Plc. Founded in 2008, Serena Energia was established by CEO Antonio Bastos who had a vision of the abundant opportunity for hydro, wind and solar developments in Brazil.


Hear from our Deputy Portfolio Manager, Jonathan Groocock, as he provides a market overview and a portfolio update on UEM's performance for March.

KINX video overview

Our Senior Analyst, Mark Lebbell, has provided an insight into one of UEM's top holdings, KINX Inc. KINX operates Korea’s leading internet exchange, as well as number of interconnection data centres.

Vietnam video overview

Jacqueline Broers, our Deputy Portfolio Manager, has shared an update from her trip to Vietnam, where she highlights why the population dynamics should bring investment opportunities across the telecom, utilities and infrastructure sectors.


Hear from our Deputy Portfolio Manager, Jacqueline Broers, as she provides a market overview and a portfolio update on UEM's performance for February.

Korea Internet Neutral Exchange Inc. – a transformative year ahead

Korea Internet Neutral Exchange Inc. (“KINX”), a key digital infra holding of Utilico Emerging Markets Trust plc, is a leading provider of neutral internet infrastructure services in South Korea. It operates Korea’s leading internet exchange as well as number of interconnection data centres. It has doubled revenues and net profits since 2018. UEM has been following KINX for over a decade and it has been part of UEM’s portfolio for the last five years. UEM now holds over 5% of the company, which has a market cap of £300m and it is now one of UEM’s top 10 holdings.

Vietnam – the darling of Asia?

In 2024, Vietnam is expected to be one of the world’s top 20 highest growing economies with forecasted GDP growth of 5.8%. This surpasses the global average of 2.3% and is higher than regional peers. So, what is driving this growth? Vietnam has strong underlying fundamentals, with solid demographics driving their median to long term GDP growth. As the increase in GDP per capita will drive the prospects of a better quality of life and higher wages, Vietnam is expected to reach higher urbanisation levels for the region by 2030. Increased urbanisation typically results in improved productivity and subsequently improved economies of scale, in turn providing growing investment opportunities within the utility, infrastructure and telecom sectors that support it.

Emerging Markets and the Decarbonisation Challenge

Societies have often impacted environments, with adverse consequences for themselves and the rest of nature. Phenomena such as rapid population growth and innovation in the 20th century resulted in increased consumerism, urban sprawl, and globalisation, bringing a first wave of environmentalism. Successful implementation of environmental policy requires an alignment of governments and businesses, as well as broad support from local populations. For individual countries, policy adjustment must balance the pace of transition to net zero with the various levels of economic and social development, whilst factoring in the particular resource base which will be unique to each country and region. What might be appropriate for advanced economies such as the UK, which targets net zero by 2050, may be unachievable for developing nations such as India, which instead is targeting net zero by 2070.


Last month we stated "We are now ready to say that 2024 will be the year that this bull market grows up" when covering the section on market implication in our last edition. Given the rally we have seen in equities already, we have not been disappointed. We remain confident that US financial markets will continue to perform strongly this year, thanks to growing corporate profits, continuing disinflation, and easing monetary conditions in the second half of the year. Equity markets are not priced to reflect any material probability of a recession. Any meaningful economic slowdown would weigh on corporate profits, but we believe the Federal Reserve has the levers to re-stimulate growth if unemployment or deflation become problems.


Hear from our Deputy Portfolio Manager, Jonathan Groocock, as he provides a market overview and a portfolio update on UEM's performance for January.

Megatrend Update: Energy Transition

Jonathan Groocock, Deputy Fund Manager, discusses his key findings of Energy Transition Megatrend experienced during 2023 and his outlook for 2024. Jonathan discusses his key findings of the Energy Transition megatrend experienced during 2023, and his outlook for 2024 covers: renewable energy capacity growth; improving competitiveness of solar PV energy; and, further investment in grid infrastructure and energy storage solutions.

Megatrend Update: Global Trade

Jacqueline Broers, Deputy Portfolio Manager, provides an update on one of the key megatrends for UEM, Global Trade. In this update, she covers the macro challenges for Global Trade experienced in 2023, how global supply disruptions have been dealt with across emerging markets post the destocking phase following Covid-19, and higher inflation and interest rates leading to slowing global demand for goods. The report highlights two underlying themes for FY24: the continuing shift in global trade towards EM; and, further diversification of supply chains including geopolitical and climate factors.