16
February 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 was 0.2% in
January, ahead of the FTSE All Share total return Index which
declined by 1.3% over the month.
Global stock markets were mixed in
January, as the continued downward trend in inflation led to the US
Federal Reserve removing its tightening bias but pushing back on
hopes of imminent rate cuts. The S&P 500 Index firmed by 1.6%,
reflecting continued performance which has been heavily
concentrated in the "Mag 7" (Amazon, Apple, Google, etc). It was
notable within this group that Tesla warned on slowing EV demand
and intense competition from Chinese EV manufacturers. China
exporting deflation and undercutting global rivals in targeted
sectors is a developing trend worth watching. The DXY Dollar Index
firmed.
In Europe, inflation fell to 2.8% in
January, adding further pressure on the European Central Bank to
cut rates, though core inflation remained sticky at 3.3%. The
Eurostoxx Index climbed by 2.8% over the month. In the UK, the
Monetary Policy Committee is holding policy rates flat with
consumer price inflation remaining unchanged at 4.0%. Sterling
strengthened against most currencies, up 3.1% against the
Australian Dollar and 1.6% versus the Euro, while easing very
slightly against the US Dollar.
In emerging markets, China continued
to disappoint, with the Hang Seng Index plunging by 9.2% over the
month, not helped by the bankruptcy filing of a major player in
China's USD 3 trillion shadow banking sector. The Sensex Index hit
an all-time high during the month as the bull run in India
continued, though profit-taking saw it end the month down 0.7%.
Meanwhile, the Brazilian Bovespa Index was more subdued, retracing
by 4.8% after a very strong run to an all-time high at the end of
2023.
In the commodities markets, industrial
metals were mixed in January, with copper up 0.4% but nickel
continuing to slide, down by 2.2% over the month. Precious metals
softened, with the gold price easing by 1.1% and the silver price
declining 3.5%. Heightened geopolitical tensions in the Middle East
following the Houthi attacks on shipping in the Red Sea saw the
Brent oil price rise by 6.1%.
PORTFOLIO
There were no changes to the top ten
constituents of the UIL portfolio in January.
Somers' valuation increased by 3.0%,
mainly driven by its second-largest holding, Resimac, whose share
price was up by 12.5% over the month. This followed receding
concerns that the Reserve Bank of Australia would increase rates
again after reports that consumer price inflation fell to a
two-year low of 4.1% in the December quarter. UIL also holds a
significant direct investment in Resimac.
Zeta's share price declined by 5.5%
over the month, reflecting broad softening of its underlying
portfolio of listed investments and the wider commodity markets.
Horizon Gold's share price was down 5.2% and Alliance Nickel fell
by 19.0% during the month.
UEM's share price declined by 0.2% in
January, as it delivered a NAV total return of 0.5%, outperforming
the MSCI Emerging Markets total return Index which fell by 4.3% in
Sterling terms over the month. UEM's discount to NAV narrowed
slightly from 14.7% to 14.5%.
Carebook Technologies' share price
fell by 20.0% over the month, while the share prices of UIL's other
top ten holdings were broadly unchanged.
DEBT
Bank debt was unchanged at £15.0m over
the month, drawn in Sterling. Other debt decreased from £9.8m to
£7.2m in January.
ZDP
SHARES
In January, the share prices of the
2024, 2026 and 2028 ZDP shares appreciated by 0.8%, 5.1% and 7.8%
respectively, trading at 128.00p, 114.00p and 96.50p
respectively.
OTHER
UIL's ordinary share price decreased
by 3.1% to 123.00p in January while the discount to NAV widened to
39.6% from 37.5%.
Name
of contact and telephone number for enquiries:
Charles Jillings
ICM Investment Management
Limited
+44(0)1372 271486