Utilico Emerging Markets Trust (UEM) is managed by Charles Jillings, at specialist value-based investor ICM. He reports that, operationally, the trust’s investee companies are performing extraordinarily well, although this is not being reflected in the market. The manager suggests that investors have multiple distractions including concerns about a US recession, the US presidential election and wars in Ukraine and the Middle East. UEM’s investments in infrastructure and utility assets ensure the fund has a consistently low beta. The use of gearing has resumed following the arrangement of a new £50m debt facility, reflecting Jillings’ bullish outlook. UEM has solidly outperformed the MSCI Emerging Markets (EM) Index over the last three years. Since inception in 2005, the trust’s NAV total return has compounded at 9.2% per year.

Edison’s investment companies team recently published a review on Utilico Emerging Markets (ticker: UEM), which is managed by Charles Jillings at specialist investment firm ICM. He aims to generate strong total returns by investing mainly in emerging market infrastructure and utility assets. The manager is very bullish about the prospects for the trust’s portfolio companies and believes that investors underappreciate the quality of these businesses and the teams that manage them. Jillings has a long-term perspective, avoiding short-term stock market ‘noise’. UEM’s portfolio has a low beta and has outpaced the performance of the MSCI Emerging Markets Index over the last one, three, five and 10 years. Since its launch in 2005, the trust has generated an annual NAV total return of nearly 10%. Read our latest report here.

Utilico Emerging Markets Trust’s (UEM’s) manager Charles Jillings, at specialist investor ICM, is very excited about the prospects for the trust’s investee companies. He believes that investors underappreciate the quality of these businesses and the teams that manage them. Jillings travels extensively, along with deputy portfolio managers Jacqueline Broers and Jonathan Groocock, meeting with current portfolio and other firms and relevant organisations in emerging markets. They report first hand that companies in the fund are performing very well, with robust top-line growth and cost reductions leading to higher margins. Because of the nature of UEM’s holdings in infrastructure and utility assets, the fund has a consistently low beta. Successful stock selection has led to the trust’s NAV outperformance versus the MSCI Emerging Markets Index over the last one, three, five and 10 years – most notably over the last three years. Since inception in 2005, UEM’s NAV total return compounded at 9.5% per year.