16 March 2020
UTILICO EMERGING MARKETS TRUST PLC
(LEI Number: 2138005TJMCWR2394O39)
Portfolio and dividend update
The Board of Utilico Emerging Markets Trust plc ("UEM" or the "Company") has noted the significant adverse movements in world stock markets and, in common with other emerging market funds, UEM's portfolio has been impacted as reported through its daily net asset value announcements. The Board would like to re-emphasize that UEM's portfolio is predominantly invested in relatively liquid, cash-generative companies with long-duration assets that the Company's investment managers believe are structurally undervalued and offer excellent total returns.
In light of the current uncertainties created by world events, it is unclear how and to what extent the earnings and dividends of UEM's portfolio companies will be affected. However, the Board appreciates the importance investors place on dividend certainty. As an investment trust, the Company will distribute at least 85% of its distributable income earned, each financial year, by way of dividends. UEM also has the flexibility to pay dividends from capital reserves.
The Board would therefore like to reassure shareholders that, in the event of any short term weakness in portfolio income, the Board intends to maintain its quarterly dividend at the rate of 1.925p per share for the fourth quarter of the current financial year and for the remainder of 2020 calendar year, utilising its revenue reserves and, if necessary, its capital reserves. Four quarterly dividends amount to 7.70p per share per annum and is equivalent to a yield of 4.81% based on a current share price of 160.00p.
Name of contact and telephone number for enquiries:
ICM Investment Management Limited +44(0)1372 271486
Charles Jillings / Alastair Moreton
Gay Collins, Pippa Bailey +44(0)20 3770 7913
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