20
November 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 net asset value ("NAV") total
return increased 11.6% in October outperforming the FTSE All Share
total return Index which decreased by 1.6% over the
month.
Markets in October were volatile with
the US election looming and the race for the White House between
Donald Trump and Kamala Harris continuing to be close. Uncertainty
surrounding potential post-election policy shifts continued to
resonate especially as the markets began to consider the impact on
inflation and interest rates of a highly expansionary fiscal policy
signalled by Trump in his election campaign. The US Dollar for the
month therefore appreciated against all major currencies in
October, appreciating against Sterling by 4.3% and 1.5% against the
Euro. However, the S&P 500 Index ended down by 1.0% despite
reaching an all time high during the month.
The European markets reflected the
uncertainty arising from the US Presidential election as the
Eurostoxx Index was down by 3.5% and the Deutsche Boerse was down
1.3% despite economic growth data accelerating from 0.2% in 2Q24 to
0.4% in 3Q24. The European Central Bank cut interest rates 25bps in
October.
In the UK, the FTSE 100 was down 1.5%
for the month as concerns over the economic outlook continued to
simmer. The first Labour budget since 2010 added to these concerns
with questions arising over long term economic growth despite
Rachel Reeves, the UK Chancellor, announcing a £70bn boost to
spending, as it is unclear how the UK's productivity will be
affected long term. Inflationary concerns therefore persisted with
UK gilt rates increasing over the month.
Emerging markets on the whole were
down during October, reflecting the concerns of a potential
expansionary fiscal policy arising if Trump wins and what a
potentially stronger dollar will mean. The Chinese market, the Hang
Seng Index and Shanghai Composite Index were also down by 3.9% and
1.7% respectively as the strong market optimism that was witnessed
in September dissipated as clarity around the stimulus package
announced in September failed to materialise.
In the commodities markets, Brent
Crude oil was up 1.9% for the month, despite increasing earlier in
the month on the back of escalating tension in the Middle East
which by the end of month cooled slightly. Copper was down 4.7% as
persistent demand concerns and a strengthened dollar continue to
weigh on the sector whilst gold was up 4.2% reaching yet again
another all time high.
PORTFOLIO UPDATE
During the month, UIL acquired the
shares in Zeta Resources Limited ("Zeta") held by General
Provincial Life Pension Fund Limited ("GPLPF") at NAV (£28.7m in
aggregate), satisfied through the transfer to GPLPF of UIL's
investment in Allectus Capital at its latest valuation and the
issue of new UIL ordinary shares at NAV. As a result, UIL held over
95% of Zeta and gave notice to acquire the remaining Zeta shares by
compulsory acquisition at NAV. The compulsory acquisition completed
on 16 October 2024 and Zeta thereby became a 100% subsidiary of
UIL.
UIL's top ten holdings are now
disclosed on a look through basis, taking into account the
underlying investments of Somers Limited ("Somers") and Zeta.
Horizon Gold Limited held through Zeta, is a gold exploration
company based in Perth, Australia. L&C Waverton held through
Somers, is a UK wealth manager. Kumarina Resources Limited held
through Zeta, is an exploration company identifying, acquiring and
developing gold and base metal projects in Australia.
ZDP
SHARES
The 2024 ZDP shares were redeemed on
31 October 2024. The capital repayment amount for the 2024 ZDP
shares was 138.35p per share. The total redemption payment was
£41.5m.
The share price of the 2026 ZDP shares
was up by 2.5% and the 2028 ZDP shares increased by 3.6% during the
month.
Name
of contact and telephone number for enquiries:
Charles Jillings
ICM Investment Management
Limited
+44(0)1372 271486