Utilico Emerging Markets (UEM)

Utilico Emerging Markets (UEM) is managed by ICM Investment Management Limited and ICM Limited (together ICM), with joint portfolio managers Charles Jillings and Jacqueline Broers responsible for day-to-day management. The trust follows a specialist strategy, investing in infrastructure and utilities across emerging markets, a relatively niche mandate. Whilst in recent years the global emerging markets sector has traded on a double-digit discount, UEM has tended to trade at a discount a few percentage points wider. This persistent discount has drawn the attention of US activist investor Saba Capital, which has built a near 6% stake at the time of writing.

Seemingly in response to this, in August 2025, the board announced a series of measures aimed at enhancing shareholder value. These included a buyback programme, a continued progressive dividend policy and more active efforts to manage the discount. The shares currently trade on a 12.3% Discount versus a five-year average of 14.6%.Whilst it is too early to judge the lasting impact of these steps, the initiatives signal a clear intent to enhance shareholder value and increase demand for the trust’s shares.

The strategy centres on investing in essential service providers such as energy and transport operators, water companies, and digital infrastructure firms, businesses that align with the long-term trends that the managers believe are crucial to developing nations. This results in a Portfolio and performance profile distinct from most emerging market peers, alongside a growing income and competitive Dividend yield, the third highest in the sector.

Performance has been resilient over the long run, with a NAV total return of 60.8% over five years, over double the MSCI EM Index’s 25.6%. More recently, results have been mixed, with UEM outperforming year-to-date but lagging over 12 months given its weaker end to 2024.

UEM has been awarded a Kepler Income Rating for 2025.