Util Regulatory News (UTL)

12 April 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 declined by 2.1% in March, which was weaker than the FTSE All Share total return Index which increased by 4.8% over the month.

Global stock markets were mostly positive in March, as core measures of inflation in many markets continue to ease and economic growth and job data in several countries proved remarkably resilient. In the US the S&P 500 Index strengthened by 3.1% with the US workforce expanding by the largest amount in almost a year. Inflation in the US is proving more sticky with Consumer Price Index (CPI) rising from 3.2% in February to 3.5% in March, pushing out expectations on the timings and number of rate cuts by the US Federal Reserve.

In Europe, inflation fell to 2.4% in March from 2.6% in February, fuelling expectations that the European Central Bank will start a rate-cutting cycle in June. The Eurostoxx Index increased by 4.2% over the month. In the UK, the Monetary Policy Committee continued to hold policy rates flat at 5.25% with consumer price inflation easing further to 3.4%. Sterling was broadly flat versus major currencies, being up 0.1% against Euro but down 0.1% against the US Dollar and 0.3% against the Australian Dollar.

In emerging markets, there was some impressive economic data from some economies. India reported that GDP growth accelerated to 8.4% in the quarter to December 2023, and the Sensex Index hit another all-time high, up 1.6% in March. The exports boom helped bolster Vietnam GDP growth to 5.7% in the quarter to March 2024, and its upgrade to emerging markets status by FTSE took a step closer, helping propel the Ho Chi Minh Index up by 2.5%. While the real estate market in China is still weighing on the economy, service and manufacturing PMIs as well as exports growth data indicates a tentative recovery with the Shanghai Composite Index consolidating gains of 0.9% over March.

In the commodities markets, precious metals were strong, with the gold price increasing by 9.1% and the silver price by 10.1% over the month. Industrial metals were mixed, with copper firming by 4.5% but nickel declining by 6.3% over the month. Continued geopolitical tensions in the Middle East and firmer economic data supported the oil price, with Brent Crude oil up by 4.6% in March.

PORTFOLIO

There was one change to the top ten constituents of the UIL portfolio in March, with Orbital Corporation ("Orbital") replacing Arria on relative performance. Orbital is listed in Australia and is a manufacturer of propulsion systems for unmanned aerial vehicles and has previously been one of UIL's top ten holdings. Orbital's share price was up by 23.8% in March after reporting narrowing losses in its half-year results to end-December 2023.

Somers, UIL's largest investment, saw its valuation increase by 1.8%, mainly driven by Resimac's share price which was up by 2.5% over the month. UIL also holds a significant direct investment in Resimac, which announced the settlement of an inaugural asset-backed securities transaction of AUD 350m backed by commercial auto and equipment receivables.

Zeta's share price declined by 1.9% over the month, notwithstanding its Net Tangible Assets (NTA) increasing by 1.2%, with its discount to NTA widening to 15.1%. In March the share price of Alliance Nickel increased by 15.6%, Horizon Gold's share price firmed by 4.2%, while Star Royalties' share price was down 3.7%.

UEM's share price declined by 0.9% in March, with its discount to NAV disappointingly widening to 19.3% as it delivered a NAV total return of 2.8% over the month, outperforming the MSCI Emerging Markets total return Index (MSCI) which was up 2.5% in Sterling terms. In its financial year ended 31 March 2024 UEM delivered a NAV total return of 12.8% significantly ahead of the MSCI which was up 5.8% in Sterling terms over the same period. UIL realised some of its investment in UEM during the month and UIL's shareholding in UEM decreased to 4.9% as at 31 March 2024.

The Market Limited's (formerly The Market Herald) share price fell by 32.6% over the month, while the share prices of UIL's other top ten holdings were broadly unchanged.

Portfolio purchases amounted to £0.04m and realisations totalled £8.4m as UIL raised cash to repay its loan facility.

DEBT

Bank and other debt fell to £10.8m from £19.9m over the month, drawn in Sterling. In the month UIL repaid its multicurrency loan facility with Bank of Nova Scotia.

ZDP SHARES

In March, the share prices of the 2024 and 2026 ZDP shares appreciated by 1.2% and 1.3% respectively, while the 2028 ZDP shares declined by 1.6%.

OTHER

UIL's ordinary share price decreased by 3.0% to 112.00p in March while the discount to NAV widened slightly to 39.9% from 39.3%.

Name of contact and telephone number for enquiries:

Charles Jillings

ICM Investment Management Limited +44(0)1372 271486