Utilico Emerging Markets Ltd

Emerging Markets

Rated Fund 2014-19. Provides exposure to emerging market infrastructure

Utilico Emerging Markets won Money Observer’s Best Emerging Markets Trust award in 2013 and was highly commended from 2014 to 2016. The trust marginally outperformed peers during 2018 and has returned almost 300% since its inception in 2007.

We like it as a lower-risk way to gain exposure to infrastructure and its progressive dividend. Although its main aim is to produce a good total return, one of its attractions is that it pays a quarterly income and has a yield of 3.4%. It invests predominantly in listed companies involved in infrastructure, utilities and related sectors operating in emerging markets. This gives it considerable defensive qualities.

Charles Jillings leads the management team. He believes the infrastructure sector is far more dynamic and less mundane than people realise. His investment universe is companies and sectors displaying the characteristics of essential services or monopolies, such as utilities, transportation infrastructure, communications or companies with a unique product or market position. In selecting stocks, he aims to identify companies where underlying value and growth

The trust focuses on both underdeveloped and developing markets of Asia, Latin America, emerging Europe and Africa. It has the flexibility to invest in markets worldwide providing the managers believe that the country has attributes such as political stability, economic development, an acceptable legal framework and an encouraging attitude to foreign investment.

At the end of 2018, its largest sector allocations were electricity and gas, which collectively accounted for 40% of assets. Its largest geographical allocations were to Brazil and China. 

Narrative and ratings content all as of January 2019.

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
1.07 %
Risk Rating
1
3 Year Sharpe
0.50
3 Year Alpha
2.15
Yield
2.1 %
Benchmark
MSCI EM GR USD
Fund Size
£ 533.65 million
NAV
263
Gearing
112
Discount Premium
-11
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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