Utilico Emerging Markets Ltd

Emerging Markets

Rated Fund 2014-20. Provides exposure to emerging market infrastructure

Utilico Emerging Markets has outperformed its peers over one, three and five years, and returned 300% since its inception in 2005. It won Money Observer’s Best Emerging Markets Trust award in 2013 and was highly commended from 2014-16.

We see it as a lower-risk way to gain exposure to infrastructure, and we like its progressive dividend. Although its main aim is to produce a good total return, it pays a quarterly income and has yielded 3.1% over the past 12 months.

Charles Jillings leads the management team. He believes the infrastructure sector is far more dynamic and less mundane than people realise. His investment universe consists of companies and sectors that display the characteristics of essential services or monopolies – such as utilities, transport infrastructure and communications firms – as well as companies with a unique product or market position. This gives the portfolio strong defensive qualities. In selecting stocks, he aims to identify companies that have underlying value and growth prospects not reflected in their share prices.

The trust focuses on both underdeveloped and developing markets in Asia, Latin America, emerging Europe and Africa. It has the flexibility to invest in markets worldwide and favours countries with political stability, economic development, an acceptable legal framework and an encouraging attitude to foreign investment. At the end of 2019 its largest sector allocations were electricity (20%) followed by ports (14%) and road and rail (12%). Its largest geographical allocations were to Brazil and China, which together account for half of assets.

“It’s niche, but offers differentiation from other funds in the emerging market space, so it could work well as a satellite holding in the area,” says Rob Morgan, an investment analyst at Charles Stanley.

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
Utilico Emerging Markets Ltd
Manager
ICM Ltd.
Type
Closed Ended Investment Company
ISIN
GB00BD45S967
Sector
Global Emerging Markets
Launched
20/07/2005
OCF
1.09 %
Risk Rating
5
3 Year Sharpe
-0.13
3 Year Alpha
-6.40
Yield
3.6 %
Benchmark
MSCI EM GR USD
Fund Size
£ 411.42 million
NAV
216
Gearing
101
Discount Premium
-15
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. May also invest in businesses which supply services to, or otherwise support, the infrastructure, utility and related sectors. Focuses on the under-developed and developing markets of Asia, Latin America, Emerging Europe and Africa but has the flexibility to invest in markets worldwide. 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.
Holding %
International Container Terminal Services Inc 6.14 %
CIA de Gas de Sao Paulo - COMGAS Participating Preferred 4.29 %
Alupar Investimento SA 3.96 %
Ocean Wilsons Holdings Ltd 3.86 %
China Resources Gas Group Ltd 3.65 %
Energisa SA 3.57 %
Rumo SA 3.10 %
Engie Energia Chile SA 2.88 %
Yuexiu Transport Infrastructure Ltd 2.76 %
Companhia De Saneamento Basico Do Estado De Sao Paulo ADR 2.67 %
Region %
Latin America 49.80 %
Asia - Emerging 43.73 %
Europe - Emerging 6.47 %
Sector %
Utilities 46.37 %
Industrials 43.72 %
Communication Services 6.79 %
Name
ICM Ltd.
Address
HM11, Hamilton, Bermuda
Legal Structure
Closed Ended Investment Company

Managers

Charles Jillings
Joined 06/01/2011
Duncan Saville
Joined 06/01/2011

Data provided by Morningstar.

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