Formal review concluded. This Super 60 Fund is retained. Find out more
| Asset Group | Asset Sub-Group | Investment Category |
| Equities | Emerging Markets | Income |
The trust is managed by Charles Jillings who has over 30 years’ investment experience and is supported by a dedicated team of seven investment specialists comprising of two additional portfolio managers, four analysts and a strategist. While the trust’s primary aim is to deliver long term capital growth, it also provides a quarterly income and as at the end of November 2022 had an annual yield of 3.9%, with over 75% of the trust’s assets paying a dividend. The trust invests predominantly in infrastructure projects in the emerging markets and is managed as a high conviction, benchmark agnostic portfolio. The investment universe is largely made up of companies and sectors that display monopolistic characteristics and are found in the utilities, transport infrastructure and communications sectors and have a unique product or market position. From a stock selection perspective, the team focus on identifying companies that offer strong growth prospects, which are not yet fully reflected in the share price. The resultant portfolio differs significantly from the average global emerging markets fund and tends to outperform strongly during periods of market weakness and lag during market rallies. Opinion Its investments typically exclude more cyclical sectors and companies, thereby making the underlying income stream more stable. The benchmark agnostic approach means that from time-to-time returns may deviate significantly from those of the benchmark. February 2023 | ||
In line with our stated methodology, Utilico Emerging Markets Investment Trust was put under formal review on 5 August 2020 due to performance concerns.
Our formal review included performance and risk analysis, portfolio positioning and robustness of the investment process. We have also been actively communicating with the manager on various additional aspects including the shape of the capital reserves, stability of the prospective yield and discount management. Our findings led us to the conclusion that the trust has clearly managed to provide capital protection features over the long term, while offering one of the most attractive yields in the sector. Following the market shock earlier this year, the trust continues its recovery and has significantly improved its short-term return profile, while long-term numbers remain strong. Last but not least, the managers were very open and transparent in discussing major performance detractors and their outlook for the trust has provided all the information we required to retain our conviction. Therefore, we decided to maintain our rating and remove the trust from under formal review.
(30 October 2020)
Risk warnings
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