12
April 2024
UIL
LIMITED
(LEI
Number: 213800CTZ7TEIE7YM468)
Publication of monthly factsheet
The latest monthly factsheet for UIL
Limited ("UIL" or the "Company") will shortly be available through
the Company's website at:
https://www.uil.limited/investor-relations/factsheet-archive
Monthly commentary
PERFORMANCE
UIL's NAV total return declined by
2.1% in March, which was weaker than the FTSE All Share total
return Index which increased by 4.8% over the month.
Global stock markets were mostly
positive in March, as core measures of inflation in many markets
continue to ease and economic growth and job data in several
countries proved remarkably resilient. In the US the S&P 500
Index strengthened by 3.1% with the US workforce expanding by the
largest amount in almost a year. Inflation in the US is proving
more sticky with Consumer Price Index (CPI) rising from 3.2% in
February to 3.5% in March, pushing out expectations on the timings
and number of rate cuts by the US Federal Reserve.
In Europe, inflation fell to 2.4% in
March from 2.6% in February, fuelling expectations that the
European Central Bank will start a rate-cutting cycle in June. The
Eurostoxx Index increased by 4.2% over the month. In the UK, the
Monetary Policy Committee continued to hold policy rates flat at
5.25% with consumer price inflation easing further to 3.4%.
Sterling was broadly flat versus major currencies, being up 0.1%
against Euro but down 0.1% against the US Dollar and 0.3% against
the Australian Dollar.
In emerging markets, there was some
impressive economic data from some economies. India reported that
GDP growth accelerated to 8.4% in the quarter to December 2023, and
the Sensex Index hit another all-time high, up 1.6% in March. The
exports boom helped bolster Vietnam GDP growth to 5.7% in the
quarter to March 2024, and its upgrade to emerging markets status
by FTSE took a step closer, helping propel the Ho Chi Minh Index up
by 2.5%. While the real estate market in China is still weighing on
the economy, service and manufacturing PMIs as well as exports
growth data indicates a tentative recovery with the Shanghai
Composite Index consolidating gains of 0.9% over March.
In the commodities markets, precious
metals were strong, with the gold price increasing by 9.1% and the
silver price by 10.1% over the month. Industrial metals were mixed,
with copper firming by 4.5% but nickel declining by 6.3% over the
month. Continued geopolitical tensions in the Middle East and
firmer economic data supported the oil price, with Brent Crude oil
up by 4.6% in March.
PORTFOLIO
There was one change to the top ten
constituents of the UIL portfolio in March, with Orbital
Corporation ("Orbital") replacing Arria on relative performance.
Orbital is listed in Australia and is a manufacturer of propulsion
systems for unmanned aerial vehicles and has previously been one of
UIL's top ten holdings. Orbital's share price was up by 23.8% in
March after reporting narrowing losses in its half-year results to
end-December 2023.
Somers, UIL's largest investment, saw
its valuation increase by 1.8%, mainly driven by Resimac's share
price which was up by 2.5% over the month. UIL also holds a
significant direct investment in Resimac, which announced the
settlement of an inaugural asset-backed securities transaction of
AUD 350m backed by commercial auto and equipment
receivables.
Zeta's share price declined by 1.9%
over the month, notwithstanding its Net Tangible Assets (NTA)
increasing by 1.2%, with its discount to NTA widening to 15.1%. In
March the share price of Alliance Nickel increased by 15.6%,
Horizon Gold's share price firmed by 4.2%, while Star Royalties'
share price was down 3.7%.
UEM's share price declined by 0.9% in
March, with its discount to NAV disappointingly widening to 19.3%
as it delivered a NAV total return of 2.8% over the month,
outperforming the MSCI Emerging Markets total return Index (MSCI)
which was up 2.5% in Sterling terms. In its financial year ended 31
March 2024 UEM delivered a NAV total return of 12.8% significantly
ahead of the MSCI which was up 5.8% in Sterling terms over the same
period. UIL realised some of its investment in UEM during the month
and UIL's shareholding in UEM decreased to 4.9% as at 31 March
2024.
The Market Limited's (formerly The
Market Herald) share price fell by 32.6% over the month, while the
share prices of UIL's other top ten holdings were broadly
unchanged.
Portfolio purchases amounted to £0.04m
and realisations totalled £8.4m as UIL raised cash to repay its
loan facility.
DEBT
Bank and other debt fell to £10.8m
from £19.9m over the month, drawn in Sterling. In the month UIL
repaid its multicurrency loan facility with Bank of Nova
Scotia.
ZDP
SHARES
In March, the share prices of the 2024
and 2026 ZDP shares appreciated by 1.2% and 1.3% respectively,
while the 2028 ZDP shares declined by 1.6%.
OTHER
UIL's ordinary share price decreased
by 3.0% to 112.00p in March while the discount to NAV widened
slightly to 39.9% from 39.3%.
Name
of contact and telephone number for enquiries:
Charles Jillings
ICM Investment Management
Limited
+44(0)1372 271486