Utilico Emerging Markets Ltd (LON:UEM) is a specialist fund focusing on infrastructure and utility investment in emerging market equities. In April 2018, UEM completed its re-domicile from a Bermuda-based investment company to a UK-based investment trust, in order to benefit from the UK’s increasingly supportive regulatory and tax environment. There is no change to UEM’s investment approach or dividend policy. Also, following the final exercise of its subscription shares, UEM now has a simpler capital structure. The board believes that these changes have potential to improve investor perception and, over time, lead to a narrower discount.
Investment strategy: Long-term approach
UEM is managed by Charles Jillings at ICM Group. He adopts a long-term approach to investing in high-quality emerging market infrastructure, utility and related equities, which have the potential to generate total shareholder returns of 15% pa. The investible universe is made up of c 900 companies and is screened to determine which are worthy of in-depth fundamental research, including financial modelling and valuation targets. The manager conducts regular site visits and stresses the importance of having close relationships with investee companies, which may involve participation in a firm’s fund-raising activities.
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