Utilico Emerging Markets Trust PLC GBP · LSE:UEM
Utilico Emerging Markets Trust PLC GBP — Utilico Emerging Markets Trust — Investor Presentation (December 2024)
36 slides from Utilico Emerging Markets Trust PLC GBP's investor presentation, December 2024
Slide 1: Investor Presentation
Investor Presentation December 2024
Slide 2: Important Notice
IMPORTANT NOTICE By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: The information in this document has been prepared by Utilico Emerging Markets Trust plc (“UEM”) solely to give an overview of UEM. Th
Slide 3: Overview
Overview . Introduction . . Why UEM invests in emerging markets . Structural growth drivers . Infrastructure megatrends Valuations remain attractive . . Why UEM . Differentiated EM portfolio . Resilient portfolio . Portfolio construction . Strong performance Attractive dividend . Outlook . Portfolio
Slide 4: Introduction to Utilico Emerging Markets Trust plc
Introduction to Utilico Emerging Markets Trust plc UK listed closed ended investment trust investing in infrastructure and utilities in emerging markets . Targets operational infrastructure and utilities CU S GE OG RA . Emerging markets focused O P assets F H T IC SE AL AS FO CU S Total AuM: £499.8m
Slide 5: Why Emerging Markets and UEM
Why Emerging Markets and UEM
Slide 6: Why UEM invests in Emerging Markets
Why UEM invests in Emerging Markets Long term fundamental pillars driving sustainable and accelerating growth Structural Growth Drivers Positive Increase in Rise of the Strong GDP Demographics Urbanisation Middle Class Growth Page 4
Slide 7: EM Supported by Global Infrastructure Megatrends
EM Supported by Global Infrastructure Megatrends . Need for essential social . Rapid economic development of EM driving . infrastructure . demand Growth of middle-class driving Energy Decarbonisation of the energy . Social need for investment . Growth and matrix Infra Rapid urbanisation Transition I
Slide 8: Emerging Markets Continues to be Attractively Valued
Emerging Markets Continues to be Attractively Valued UEM’s portfolio continues to be attractively valued . UEM is currently on a 22.0% discount1, despite sector leading performance, a dividend yield higher than sector peers at 4.4%1 and low volatility, providing a compelling entry point for new and
Slide 9: Resilient Portfolio
Resilient Portfolio Despite macro volatility and geopolitical uncertainty investment in infrastructure will continue . Inflation Concession contract linked . Energy Prices Energy generation assets . . to inflation benefitting Monopolistic nature / strong Ability to pass through fuel market position
Slide 10: Differentiated Absolute Return Portfolio
Differentiated Absolute Return Portfolio Closed ended, actively managed bottom-up, benchmark agonistic portfolio providing resilience to cyclicality UEM Portfolio MSCI Emerging Markets Index % in UEM's % in MSCI EM Sector in Sector Sector portfolio Index UEM Electricity 15.5% IT 24.2% ✓ Ports 13.8%
Slide 11: Portfolio Construction
Portfolio Construction Risk mitigation through sector and geographical diversification Sector Diversification Sector Portfolio Construction Number of • Approximately 70 holdings – top 30 is holdings 73.3% of portfolio2 • Primarily equity, but unrestricted and can invest in Asset type bonds, converti
Slide 12: Strong NAV and Share Price Performance
Strong NAV and Share Price Performance Fund Performance1 Key Highlights NAV annual compound return 8.9% NAV total return per share 420.8% Share price total return NAV per MSCI EM 324.4% Total return share Index 3 years 19.3% 0.3% 5 years 21.0% 19.0% Share buybacks Inception 420.8% 298.2% totalling £
Slide 13: Attractive Dividend Growth
With strong dividend growth since inception Attractive Dividend Growth Dividends has continued to grow, remains fully covered and paid quarterly 7.5% 4.4% > 80% CAGR: 2007-24 Attractive dividend of UEM’s portfolio yield 4.4% above companies pay a peers1 dividend 2 Past performance is not a guide to
Slide 14: Outlook for 2025
Outlook for 2025 Global economy has resisted recession, but a high degree of uncertainty remains 2024 a year of … . US growth moderating but inflationary concerns remained . China failed to deliver - continued to face deflation, falling property prices and weaking consumer confidence . Elections! Ou
Slide 15: Why UEM?
Why UEM? Unique exposure Real assets Experienced Strong to EM drivers and driving management performance megatrends compelling returns Infrastructure is critical to both today’s needs and tomorrow’s innovations Page 13
Slide 16: Social Infra: Case study TAV
Social Infra Case study: TAV . Description . Operates 15 airports in 8 countries Through its services subsidiaries provides services in all areas of airport operations resulting in a global . footprint in 110 airports in 33 countries . Handled 96m passengers in 2023 . Listed on Istanbul Stock Exchan
Slide 17: Social Infra: Case study TAV (continued)
Social Infra Case study: TAV (continued) Key financials1 . Share price performance2 (TRY) Why we are investors . Share price CAGR 19-24: 59.1% High quality assets with long term concessions Regulated passenger fees denominated in hard . currency . Strong passenger growth Good corporate governance bo
Slide 18: Digital Infra: Case Study Sonatel
Digital Infra Case Study: Sonatel . Description Leading telecoms operator in Senegal, Mali, Guinea, . Guinea Bissau and Sierra Leone 42m mobile customers with rapid growth in mobile . internet users . Listed on the BRVM Exchange, Ivory Coast Market Cap USD 3.8bn1 Mobile Subscribers2 (m) Past perform
Slide 19: Digital Infra: Case Study Sonatel (continued)
Digital Infra Case Study: Sonatel (continued) Key financials1 . Share price performance2 (XOF) Why we are investors Strong growth in 4G data, fibre broadband and mobile Share price CAGR 19-24: 10.1% . money users . Internet penetration remains relatively low Support from largest shareholder, Orange
Slide 20: Energy Growth and Transition: Case Study IndiGrid
Energy Growth and Transition Case Study: IndiGrid . Description An infrastructure investment trust (InvIT) engaging in the development and operation of power . transmission lines and solar generation in India AUM of INR297bn, comprising c.8,700km of transmission lines and 1.1GW of solar generation .
Slide 21: Energy Growth and Transition: IndiGrid (continued)
Energy Growth and Transition Case Study: IndiGrid (continued) Key financials1 . Share price performance2 (INR) Why we are investors Well positioned to benefit from India’s rising power . Share price CAGR 19-24: 9.2% demand and green transition Excellent operator consistently achieving near 100% . av
Slide 22: Global Trade: Case study ICT
Global Trade Case study: International Container Terminal Services . Description International Container Terminal Services (“ICT”) acquires, develops, manages and operates small to . medium sized container ports and terminals Operates 33 terminals in 20 countries, primarily origin and destination po
Slide 23: Global Trade: Case study ICT (continued)
Global Trade Case study: ICT (continued) Key financials1 . Share price performance2 (PHP) Why we are investors Long term concession agreements capturing Share price CAGR 19-24: 44.1% economic growth of EM driven by the increasing . consumption of the growing middle class Unique strategy focused on a
Slide 24: UEM's Unique and Attractive Investment Case
UEM’s Unique and Attractive Investment Case Actively managed infrastructure megatrends investment trust focused on EMl for enduring growth that transcends interest rate cycles, inflation trends and market volatility. Portfolio Emerging market infra megatrends Performance Long term Cash generative N
Slide 25: Appendix
Appendix At ©2022 Andre S. Prietsch
Slide 26: UEM Top Twenty as at 30 November 2024
UEM Top Twenty as at 30 November 2024 Diversified portfolio Company Country Sector Megatrend % of UEM 1 FPT Corporation Data Services and Digital Infrastructure 5.6% 2 International Container Terminal Services, Inc. (ICT) Ports 5.0% 3 Alupar Investimento S.A. Electricity 3.8% 4 Orizon Valorizacao de
Slide 27: Investment Approach
Investment Approach Detailed analysis generates a high conviction, benchmark agnostic portfolio UEM Portfolio Portfolio Construction - Competition for inclusion - Trade timing and allocation - Portfolio monitoring and review Investment Analysis - Fundamental analysis and financial forecasting of inv
Slide 28: ESG Investment Approach
ESG Investment Approach UEM has an embedded ESG into the investment framework ESG approach % of UEM’s top 30 disclosing ESG factors In-depth analysis of the key 57% issues that face potential and conducted a climate current holdings, as well as a 71% risk assessment 75% Understanding deep understand
Slide 29: UEM benefitting from EM Structural Growth Drivers
UEM benefitting from EM Structural Growth Drivers Fundamental pillars driving sustainable and accelerating growth in EM Positive demographics1 Increase in urbanisation2 Median age (Years) Rise of the middle class3 Strong GDP growth4 Growth 2015-2030 60.6% 25.0% 10.5% 2.9% -0.4% 153.0% Underlying dri
Slide 30: Megatrends Driving Upside in Emerging Markets
Megatrends Driving Upside in Emerging Markets Infrastructure related investments are the key drivers of global ‘megatrends’ Rapid economic development requires Emerging market economies offer significant investment in energy strong GDP growth increasing their infrastructure importance in the share o
Slide 31: Energy Growth and Transition
Energy Growth and Transition Decarbonisation and investment in energy to support economic growth . Megatrend drivers Portfolio investments Rapid economic development requires significant . investment in energy infrastructure Lower or net zero emissions targets to combat climate . change require deca
Slide 32: Global Trade
Global Trade Trade being fuelled by structural growth drivers, geopolitical dynamics and shifting supply chains . Mega trend drivers Portfolio investments EM economies offering strong GDP growth increasing . their importance in the share of world trade Supply chain disruptions, geopolitical tensions
Slide 33: Digital Infra
Digital Infra Rapid digital adoption accelerating demand for digital infrastructure . Megatrend drivers Portfolio investments Advantageous demographics of EM populations typically . are more tech savvy driving demand for digital infra Affordable IT drives innovation, knowledge and accountability dri
Slide 34: Social Infra
Social Infra Urbanisation and rising of the middle class driving demand for better social infra . Megatrend drivers Portfolio investments Most emerging market countries lack adequate . essential social infrastructure The growth of the middle class is increasing . demand for better quality services a
Slide 35: ICM Investment Team
ICM Investment Team Dedicated investment team with over 100 years of experience Charles Jillings Jacqueline Broers Investment Manager Deputy Portfolio Manager CEO, ICM Transportation & Utilities Mark Lebbell Eduardo Greca George Velikov Senior Analyst Investment Strategist Investment Strategist Digi
Slide 36: Fund Facts
Fund Facts . . Fund size as at 30 November 2024 £499.8m . UEM Trading on the Main Market of the London Stock Exchange Ordinary shares in issue as at 30 November 2024 187.2m Management Fee . 1.0% of NAV up to and including £500m; 0.9% of NAV exceeding £500m up to and including £750m; 0.85% of NAV exc
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