17
October 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
3.5% in September, underperforming the FTSE All Share total return
Index which decreased by 1.3% over the month.
Global markets in September ended the
month on the whole in positive territory. The US market (the
S&P Index) ended the month up by 2.0%, despite witnessing a
slow start on the back of softer macro data. Retail sales and new
home sales weakened, nonfarm payrolls rose less than expected and
private consumption expenditure growth was revised lower. The
market however was driven by the long anticipated start of the US
Federal Reserve rate cutting cycle. The outsized interest rate cut
of 50bps, the first rate cut since 2020 bringing rates to
4.75-5.0%, helped to push the US market higher. The European
central bank also lowered its interest rate by 25bps as the
European economic outlook deteriorated whilst the Bank of England
held rates.
The Chinese market started the month
sluggishly as retail sales and industrial production all continued
to slow. However, on 24 September the Chinese central bank, the
PBoC, announced a number of measures to revive growth. These
included lowering the seven day reverse repo rate and lowering
mortgage rates as part of its stimulus measures. The epic stimulus
package helped to boost the markets with the Hang Seng and Shanghai
Composite Index both recovering at the end of the month, up by
17.5% and 17.4% respectively.
The easing of the US and Chinese
monetary policy helped many other markets deliver solid market
performances during the month. The Philippines PSEi Index was up by
5.4%, benefitting from the Philippines central bank cutting
interest rates as inflationary pressure continue to trend
downwards, whilst the Thailand Set Index was up by 6.6%. The Indian
Sensex Index was up by 2.3% as macro conditions remain
favourable.
Brazil was one of the outliers for the
month with the Bovespa Index down by 3.1%. The Brazilian central
bank bucked the trend witnessed in most countries and raised
interest rates - the first time in over two years - to 10.75% with
the central bank indicating that there are more increases ahead
Further, the Brazilian market was not helped by concerns around the
government loosening fiscal discipline.
In the commodities markets, Brent
Crude oil further declined by 8.9% in September, on the back of
continued expectation of slower global demand, albeit since the
month end, oil prices have increased as geopolitical tension in the
Middle East has driven prices upwards again. Copper prices for
September were up by 9.8%, hitting a two month high during the
month, helped by the US interest rate cut and the Chinese stimulus
measures. Gold also continued its rally upwards exceeding USD
2,600/oz, yet again another all-time high.
PORTFOLIO
There were no changes to the top ten
constituents of the UIL portfolio in September.
Somers' valuation for the month
increased marginally by 0.7% whilst Carebook Technologies was the
strongest performer in the top ten, up by 27.3% on the back of more
positive 2Q24 results. The Australian listed companies had mixed
performances with WT Financial up by 8.1% and The Market Limited
down by 15.6%. Resimac was also down by 4.4% in
September.
Allectus Quantum was down by 10.1%
whilst Allectus Capital was up by 12.9%.
UEM's NAV total return for the month
was down marginally by 0.1% whilst UEM's share price decreased by
2.7% and the discount widened to 18.4%.
There were realisations of £0.3m
during the month and purchases of £0.7m.
Subsequent to the month end, Zeta
announced that it would receive approximately USD 41.0m from its
investment in Koumbia Bauxite Investments Limited ("KBI"), an
unlisted, Bermuda based company which had terminated its
commercialisation deed with Alliance Mining Commodities. UIL
also announced that it had acquired the Zeta shares held by General
Provincial Life Pension Fund ("GPLPF") at NAV (£28.7m in
aggregate), satisfied through the transfer to GPLPF of UIL's
investment in Allectus Capital at its latest valuation and the
issue of new UIL ordinary shares at NAV. As a result, UIL held over
95% of Zeta and gave notice to acquire the remaining Zeta shares by
compulsory acquisition at NAV. The compulsory acquisition completed
on 16 October 2024. Zeta thereby became a 100% subsidiary of UIL
and enables the KBI proceeds to be distributed to UIL in
full.
DEBT
Debt was at £7.3m as at 30 September
2024, drawn in Sterling and US Dollars. UIL also had cash balances
of £4.9m at month end.
ZDP
SHARES
In September, the share price of the
2024 ZDP shares appreciated by 1.1%. The price of the 2026 ZDP
shares was unchanged and the 2028 ZDP shares increased by
0.5%.
UIL Finance Limited announced in
October that the 2024 ZDP shares will be redeemed on 31 October
2024. The capital repayment amount for the 2024 ZDP Shares is
138.35p per share.
OTHER
UIL's ordinary share price decreased
by 6.8% from 103.00p to 96.00p in September and the discount to NAV
widened from 34.8% to 36.2%.
In September, UIL declared a fourth
quarterly interim dividend of 2.00p per ordinary share in respect
of the year ended 30 June 2024, which will be paid on 8 November
2024 to shareholders on the register as at 27 September
2024.
On 8 October 2024, UIL published its
report and accounts for the year ended 30 June 2024.
Name
of contact and telephone number for enquiries:
Charles Jillings
ICM Investment Management
Limited
+44(0)1372 271486