UEM (UEM) delivered a resilient performance in March, with NAV total return declining by 4.4%, significantly outperforming the MSCI Emerging Markets Index, which fell 11.5% (Sterling terms), Jaqueline Broers, Joint Portfolio Manager provides a full insight into the portfolio.

Year-to-Date Strength

Despite March volatility, UEM’s NAV total return stands at +25.9% for the year to 31 March 2026, broadly in line with the MSCI EM Index (+26.5%) — achieved with meaningfully lower volatility.

Market Backdrop

Global markets were pressured by escalating geopolitical tensions, including:

- US-Israeli strikes on Iran

- Iranian retaliation across the region and key shipping routes

These developments drove:

- Higher energy prices

- Renewed inflation concerns

- Rising interest rate expectations

- Weaker global growth sentiment

Regional Impact

Energy-importing Asian markets were hardest hit:

- Indonesia: -14.4%

- India (Nifty 50): -11.3%

- Vietnam: -10.9%

- Philippines: -10.0%

- Korea (KOSPI): -19.1% (still +19.9% Q1)

Meanwhile:

- S&P 500: -5.1%

- US Dollar strengthened on safe-haven demand

China & Latin America Divergence

- China showed relative resilience (Shanghai -6.5%, Hang Seng -6.9%)

- Latin America outperformed (Brazil: -0.7%, Mexico: -3.9%, Argentina: +13.5%)

Portfolio Positioning & Changes

UEM remains defensively positioned with inflation protection and modest gearing.

- Added: Enerjisa Enerji, GDS Holdings, Umeme

- Removed: TAV, Motiva, ASUR

Top Performers

- Celsia: +7.5% (share buyback)

- Anhui Expressway: +6.8% (strong results, dividend increase)

- Enerjisa Enerji: +6.6%

- Copel: +5.3%

Top Fallers

- CTP & Sunevision: -19.8% (macro concerns)

- KINX: -15.7%

- Telelink Serv. Corp.: -15.8%

- FPT Corp: -19.5%

Shareholder Update

- Share price: 271p (-8.4% in March)

- Discount to NAV widened to 13.6%

- Dividend: 2.42p per share (third interim paid)

- Continued share buybacks

Outlook

While UEM has limited direct exposure to the Middle East, the team remains cautious on the broader impact of sustained disruption to oil supply and shipping — particularly on inflation and interest rates.