Utilico Emerging Markets Trust PLC GBP · LSE:UEM
Utilico Emerging Markets Trust PLC GBP — Utilico Emerging Markets Trust — Investor Presentation (September 2023)
28 slides from Utilico Emerging Markets Trust PLC GBP's investor presentation, September 2023
Slide 1: Investor Presentation
Investor Presentation September 2023 Alupar Investimento - Andre S Prietsch
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: Introduction to Utilico Emerging Markets Trust plc
Introduction to Utilico Emerging Markets Trust plc UK closed-ended investment trust focused on global infrastructure megatrends in emerging markets . Invests primarily in operational infrastructure GE . Predominately focused on emerging markets OG and utilities assets S RA CU P benefiting from the l
Slide 4: Unique Features of Utilico Emerging Markets Trust plc
Unique Features of Utilico Emerging Markets Trust plc Only UK listed fund focused on global infrastructure megatrends in emerging markets Unique exposure ✓ Key emerging markets (“EM”) megatrends provide attractive and resilient to EM investment opportunities megatrends ✓ Uniquely dedicated to emergi
Slide 5: Diversified Portfolio Across a Range of Infra Megatrends
Diversified Portfolio Across a Range of Infra Megatrends Megatrends providing potential for sustainable and defendable growth UEM Portfolio as at 31 August 2023 Energy Transition Social Infra Digital Infra Global Trade “A megatrend is a long-term change that affects governments, societies and econom
Slide 6: Energy Transition
Energy Transition Electrification, decarbonisation and the shift to renewables . Megatrend drivers Portfolio investments Lower or net zero emissions targets to combat climate . change requires decarbonisation of energy matrix Geopolitical concerns driving energy security higher . up the agenda, look
Slide 7: Energy Transition: Case Study: Power Grid Corp of India
Energy Transition Case Study: Power Grid Corp of India . Description Share price performance(2) (INR) Builds, owns and operates transmission line assets in Share price CAGR 18-23: 3.9% . India, transmitting 45% of the country’s electricity One of the largest operators in the world with . 170,000km n
Slide 8: Digital Infra
Digital Infra Transformational integration of digital technologies across society . Megatrend drivers Portfolio investments Data drives innovation, enables personalisation and enhances decision-making driving social and . commercial returns Technology allowing EM companies to market and deliver good
Slide 9: Digital Infra: Case Study: FPT Corporation
Digital Infra Case Study: FPT Corporation . Description Share price performance(2) (VND) . IT & Telecoms Group with three core segments: Share price CAGR 18-23: 34.4% Provides IT Services to global multinationals . and Vietnamese institutions One of Vietnam's largest fibre broadband and . data centr
Slide 10: Global Trade
Global Trade Growth in global trade providing opportunities in transportation and logistics . Mega trend drivers Portfolio investments EM economies offer strong domestically driven growth as well as a growing share of world exports . driving international trade The increasingly multi-polar world and
Slide 11: Global Trade: Case Study: International Container Terminal Services
Global Trade Case study: International Container Terminal Services . Description Share price performance(2) (PHP) Share price CAGR 18-23: 17.2% International Container Terminals (“ICT”) acquires, develops, manages and operates small to medium . sized container ports and terminals Operates 33 termina
Slide 12: Social Infra
Social Infra Increasing demand for infrastructure assets driven by societal changes . Megatrend drivers Portfolio investments Most emerging market countries lack adequate . essential social infrastructure The growth of the middle class demanding better . quality services and infrastructure Rapid urb
Slide 13: Social Infra: Case Study: Orizon
Social Infra Case study: Orizon . Description Share price performance(2) (BRL) Leader in waste management in Brazil, operating 15 Share price CAGR 21-23: 9.1% . sanitary landfill sites These sites are sophisticated complexes to safely process waste that includes sorting facilities to remove recyclab
Slide 14: Resilient Portfolio in the Current Macro and Geopolitical Environment
Resilient Portfolio in the Current Macro and Geopolitical Environment UEM’s investments offer protection rends offer the potential for enduring growth that transcends interest rate cycles, inflation trends and market volatility. . . A number of UEM’s investee companies have concession contracts link
Slide 15: Valuations at Multi-year Lows
Valuations at Multi-year Lows UEM’s portfolio continues to be attractively valued . . EM valuations continue to be low in absolute and relative terms . EM equities are trading on 12.0x cyclically adjusted P/E ratio compared to the 10 years’ average of 13.1x . US equities trade on multiple of 30.8x,
Slide 16: 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 17: 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 18: Differentiated Emerging Market Infrastructure Portfolio
Differentiated Emerging Market Infrastructure Portfolio Actively managed portfolio, offering a unique and diverse investment opportunity UEM Portfolio MSCI Emerging Markets Index % in UEM's % in MSCI EM Sector in UEM Sector portfolio Sector Index Electricity 19.8% Financials 1.8% Ports and Logisti
Slide 19: Strong Historic NAV and Share Price Performance
Strong Historic NAV and Share Price Performance(1) Strong performance since inception with annualised total return of 9.3% Key highlights since inception: • NAV annual compound total return of 9.3% • NAV total return per share of 398.8% • Share price total return of 344.1% • Share buybacks of £145.8
Slide 20: Attractive Dividend Growth
Attractive Dividend Growth . Dividend has continued to grow since inception . Dividend per share has continued to grow, increasing from 1.50p to 8.45p . Dividend remains fully covered and paid quarterly . UEM offers an attractive dividend yield of 3.9%(1) above sector peers Over 80% of UEM’s portfol
Slide 21: 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 ou
Slide 22: Appendix
Appendix International Container Terminal Services, Inc
Slide 23: Megatrends Driving Upside in Emerging Markets
Megatrends Driving Upside in Emerging Markets Infrastructure related investments are the key drivers of global ‘megatrends’ Lower or net zero emissions targets to Emerging market economies offer combat climate change requires strong domestically driven growth as decarbonisation of energy matrix well
Slide 24: Portfolio Construction
Portfolio Construction Risk mitigation through sector and geographical diversification Sector Diversification Sector Portfolio Construction Number of • Approximately 80 holdings holdings • Primarily equity, but unrestricted and can invest in Asset type bonds, convertibles and other types of securiti
Slide 25: UEM Top Twenty as at 31 August 2023
UEM Top Twenty as at 31 August 2023 Diversified portfolio Company Country Sector Megatrend % of UEM 1 Petalite Limited Renewables 5.5% 2 International Container Terminal Services, Inc. (ICT) Ports and Logistics 4.6% 3 Alupar Investimento S.A. Electricity 4.3% 4 Orizon Valorizacao de Residuos S.A. Wa
Slide 26: ICM Investment Team
ICM Investment Team Dedicated investment team with over 100 years of experience Charles Jillings Jacqueline Broers Jonathan Groocock Investment Manager Deputy Portfolio Manager Deputy Portfolio Manager CEO, ICM Transportation Utilities Mark Lebbell Eduardo Greca George Velikov Henry Beck Gillian Zha
Slide 27: Fund Facts
Fund Facts . . Fund size as at 31 August 2023 £522.1m . UEM Trading on the Main Market of the London Stock Exchange Ordinary shares in issue as at 31 August 2023 198.9m 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 exceedi
Slide 28: Energy Transition: Case Study: Petalite
Energy Transition Case Study: Petalite . Description Next generation electric vehicle charging technology . company based in the UK Developed and patented revolutionary SDC . (Sinusoidal Direct Current) charging technology Unlisted company in which UEM were early investors . with small initial fundi
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