18 August 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 was up by 1.1% in July, underperforming the FTSE All Share total return Index which rose by 2.6% over the same period.

Equity markets continued to be positive in July with most markets ending in encouraging territory supported by global inflation which appears to be slowing. The US Federal Reserve increased interest rates by 25 basis points to 5.5% as expected; however, it remained non-committal as to whether or not there would be a further rise in September. Market expectations are also growing that the US is heading for a soft landing through controlling inflation without slowing economic growth. For example, July's US consumer price index data was lower than expected, whilst reported US second-quarter GDP growth was above expectations.

The European Central Bank also followed suit increasing the deposit rate in July, in line with expectations by 25bps to 3.75% with Christine Lagarde, the European Central Bank president, indicating that the central bank might be close to the end of the rate rising cycle as inflationary pressures continue to ease. In the UK and in Australia, there was a pause on rate increases in July.

The S&P 500 Index was up by 3.1% over the month whilst the Eurostoxx Index rose by 1.6%. In Australia, the ASX-200 advanced by 2.9%.

The majority of emerging markets in July outperformed the developed markets with eyes closely focused on China. In July, the Chinese Shanghai Composite Index was up by 2.8% and the Hong Kong Hang Seng Index up by 6.1% as the Chinese government announced new measures to revive consumption. In addition, the Chinese central bank, the People's Bank of China, pledged to support the development of the Chinese real estate market by reducing housing loan interest rates and down payment ratios.

In the currency markets Sterling strengthened against the Euro and the US Dollar by 0.1% and 1.2% respectively whilst it remained flat against the Australian Dollar.

Sterling was mixed against the emerging market currencies, appreciating 1.5% against the Indian Rupee but depreciating 0.2% against the Brazilian Real, 1.4.% against the Mexican Peso and 0.4% against the Chinese Renminbi.

Commodities saw strong performance in July, with oil prices up by 14.2% to USD 85.56 per barrel, on the back of tightening global supply and rising demand through the rest of the year. Copper and nickel both continued their recovery in July, up by 7.1% and 8.5% respectively. Wheat prices also climbed in July to USD 6.66, up 6.5% after Russia withdrew from the Black Sea Grain initiative.

PORTFOLIO

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

Somers' valuation increased by 4.2%, reflecting the Resimac share price which increased by 5.7% in July and benefitting from the slowing rate of inflation. Resimac is also a top ten direct shareholding for UIL.

Zeta Resources' NAV rose by 0.5% in July with the discount at 20.0%.  Zeta Resources' share price was down by 1.6% in July.

DEBT

Bank and other debt decreased over the month to £42.6m drawn in Sterling and US Dollars. There were no foreign exchange hedges as at the end of July 2023.

ZDP SHARES

The share prices of the 2024, 2026 and 2028 ZDP shares all decreased over the month by 0.4% to 123.00p, by 1.7% to 112.50p and 5.2% to 91.50p respectively. 

OTHER

UIL's ordinary share price increased by 0.3% to 145.50p in July and the discount to NAV widened slightly to 27.8% from 27.2%.

Name of contact and telephone number for enquiries:

Charles Jillings

ICM Investment Management Limited                                  +44(0)1372 271486