Utilico Emerging Markets Trust PLC on Tuesday announced a higher interim dividend as its net asset value improved.
The Surrey-based investment trust said its NAV as at September 30 rose 7.5% to 261.58 pence per share from 243.29p a year prior and 4.3% from 250.91p at March 31.
The company swung to a NAV total return per share of 6.0% from negative 2.8% a year ago.
Utilico Emerging declared an interim dividend of 4.30p per share, up 3.6% from 4.15p.
Chair John Rennocks said that the half-year was challenging, amid global conflicts, ‘geopolitical friction’, rising interest rates and robust inflation.
‘The anticipated recovery in the Chinese economy post Covid-19 has not met expectations and continues to be a drag on global GDP. Understandably, volatility in most markets has been elevated,’ Rennocks added.
Looking ahead, Rennocks expects the ‘megatrends’ in most emerging economies to continue and accelerate in the coming year.
‘The need to have resilient and diversified supply chains, energy security, green energy and increased defence capabilities will see resources diverted and reinvested with an urgency and scale not previously witnessed in our lifetime. This shift will give rise to new opportunities for investors, including UEM. There are a number of megatrends that should provide many of UEM’s investment strong tailwinds,’ Rennocks said.
Utilico Emerging shares were down 0.2% at 219.60p each on Tuesday afternoon in London.
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