Util Regulatory News (UTL)

14 December 2023

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 declined by 1.0% in November, which was behind the FTSE All Share total return Index which was up 3.0% over the month.

Global stock markets rallied in November as financial conditions loosened in major economies. In the US, inflation fell to 3.2% and the Federal Reserve held its target rate steady for the second time in a row. The downward trend in inflation led to optimism that interest rates have peaked and the Federal Reserve will soon start cutting rates. This resulted in the yield on 10-year US Treasury bonds falling sharply and the S&P 500 Index climbed 8.9%, while the DXY Dollar Index fell.

In Europe, inflation also dropped more than expected, hitting 2.4% in November, the lowest level in two years. The European Central Bank also looked to pause rates as evidence mounts that the EU economy will contract again this quarter on weakness in the consumer and manufacturing sectors. The Eurostoxx Index climbed by 7.9% in the month. In the UK, the Monetary Policy Committee stopped rate increases for the second time in a row, with inflation dropping to 4.6% in October from 6.7% the month previous; the FTSE 100 was up 1.8%. Sterling strengthened against most currencies, up 4.3% against the US Dollar and 1.1% versus the Euro. The Australian Dollar was one of the few currencies against which Sterling weakened, declining by 0.4%.

This risk-on environment was positive for emerging markets. In Latam, the Brazil Bovespa Index soared by 12.5% and Mexico's Bolsa Index was up 10.2%. In Asia, Vietnam's Ho Chi Minh Index was up 6.4%, and the India Sensex Index appreciated by 4.9% following remarkably robust GDP growth. A notable exception to the broad market strength was China, where the Hang Seng Index declined by 0.4% and the Shanghai Composite had a 0.4% gain; it was notable that the country reported its first-ever quarterly deficit in foreign direct investment since records began in 1998.

In the commodities markets, industrial metals were mixed in November, with copper up 4.9% but nickel falling 8.0%. Precious metals strengthened, with the gold price up 2.6% and the silver price climbing by 10.6%. Oil prices softened, down 5.2% on concerns over global growth.

PORTFOLIO

There were no changes to the top ten constituents of the UIL portfolio in November.

In the month, The Market Herald was re-branded to The Market Ltd following the transformational acquisition of Gumtree Group. The Market's share price was up by 40.0% over November, though the continued wide bid-offer spread can result in misleading movements on a month-to-month basis. Carebook Technologies' share price climbed by 16.7% following the release of Q3 results showing record revenues, improving annual recurring revenues and narrowing losses.

Resimac's share price eased by 2.7% as the Australian property market appeared to start losing momentum in the face of higher interest rates. Meanwhile Somers' valuation increased by 3.2%. West Hamilton Holdings realised a significant asset in its property portfolio and distributed some USD 23.0m to its shareholders including UIL.

Zeta's share price declined by 3.2% over the month, reflecting underlying portfolio moves of its listed investments. Horizon Gold's share price was down 5.0% and Alliance Nickel fell by 15.0%.

UEM's share price increased by 5.3% in November, as it delivered a NAV total return of 3.0%, slightly behind the MSCI Emerging Markets total return Index which was up 4.0% in Sterling terms in the month. The UEM discount to NAV narrowed to 13.6% from 16.2%.

DEBT

Bank and other debt was unchanged at £20.0m over the month, drawn in Sterling. There were no foreign exchange hedges as at the end of November 2023.

ZDP SHARES

The share prices of the 2024 and 2028 ZDP shares appreciated by 0.4% and 0.6% respectively, over the month, trading at 126.00p and 88.50p respectively. The 2026 ZDP share price declined by 2.3% to 107.00p.

OTHER

UIL's ordinary share price decreased by 2.1% to 117.50p in November while the discount to NAV was unchanged at 37.7%. The first quarterly interim dividend of 2.00p per ordinary share in respect of the year ending 30 June 2024, was declared and will be paid on 21 December 2023 to shareholders on the register on 1 December 2023.

Name of contact and telephone number for enquiries:

Charles Jillings

ICM Investment Management Limited +44(0)1372 271486