15 May 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 2.3% in April, underperforming the FTSE All Share total return Index which was up by 3.4% over the same period.

In April, the markets continued to be mixed. The US, Europe, Australia, and the UK witnessed modest gains, on the back of more resilient economic data as the S&P 500 was up by 1.5%, the Eurostoxx was up by 1.0%, the ASX 200 up by 1.8%, and the FTSE 100 was up by 3.1%. However positive investment sentiment was tapered as the Federal Reserve continued to indicate that the rolling over of interest rates is unlikely to happen this year and economic growth is likely to soften. Cracks within the banking sector also continued to appear as the banking crisis of 2023 claimed its largest US victim to date as the First Republic Bank collapsed.

In emerging markets, China was one of the worst performing markets in April, with the Hang Seng down by 2.5%. This was despite reporting strong export data of 14.8% and low inflation, with CPI of +0.7% for March, as well as better than expected 1Q23 GDP growth of 4.5%. Ongoing US-China tensions continued to weigh on market sentiment and comments from the Politburo meeting at the end of the month raised concerns about the government's plans to support economic growth. Thailand also saw negative returns for the month, with the SET Index down 5.0% as investors removed some risk before the upcoming elections in mid-May. Indonesia's and India's markets performed well, up by 1.6% and 4.1% respectively. Latam also saw positive performance in April, with the Bovespa Index up by 2.5%, the Chilean IPSA up 1.7% and the Mexican Mexbol Index up by 2.3%.

During April, Sterling broadly strengthened against most currencies, appreciating by 1.7% against the US Dollar, 3.0% against the Australian Dollar and 2.5% against the Chinese Renminbi. Sterling was flat against the Euro. In the commodities market, precious metals continued their solid performance as gold was up 1.1% for the month, continuing to be seen as the safe haven and perhaps is being helped by central banks that are looking to diversify currency holdings away from the US Dollar. Silver was up 3.6%. Industrial metals were mixed, with nickel increasing by 2.3% whilst copper was down by 5.5%, affected by concerns about a global slow down. Brent crude oil was essentially flat, down marginally by 0.3% as the announcement of further production cuts by OPEC and other oil producers only temporarily supported the oil price before broader concerns about global growth increased.

PORTFOLIO

There were no changes to UIL's top ten holdings in April. Resimac witnessed an increase in share price in April, up by 6.1%, partly helped by the Reserve Bank of Australia pausing on rate increases during the month and indicating that rates will likely remain to be on hold in May. Given Resimac is a holding of Somers, Somers' valuation in April increased by 1.7%.

Zeta's share price in April was up by 3.4% partly boosted by the strong share price performance of Copper Mountain which was up by 16.4% on the back of the announcement that Hudbay Minerals Inc. will acquire Copper Mountain at a 23% premium. Zeta's performance was slightly tapered by Panoramic Resources, also directly owned by UIL, whose share price was down 3.3% in April on the back of challenging 3Q23 results that highlighted operations were impacted by server weather. Overall, Zeta's net tangible assets increased by 7.3% which widened Zeta's discount from 21.1% to 25.2%. 

UEM's share price was up for April by 1.4% with UEM's NAV total return of 0.9% outperforming the MSCI EM Index which was down 2.9%.

DEBT

Over the month, bank borrowings remained at £37.5m all drawn in Sterling. There were no foreign exchange hedges in place during the month and as at 30 April 2023.

ZDP SHARES

The share prices of the 2024 and 2026 ZDP shares remained unchanged at 123.50p and 114.00p respectively and the 2026 ZDP shares decreased by 0.5% to 98.00p.

OTHER

UIL's ordinary share price increased by 9.3% to 140.50p in April and the discount to NAV decreased from 40.0% to 32.8%. 

Name of contact and telephone number for enquiries:

Charles Jillings

ICM Investment Management Limited                                 +44(0)1372 271486