3 Month Review

Premier Utilities Trust PLC
10 March 2005

                            Premier Utilities Trust

                   3 Month Review (unaudited) to March 2005


                                       28.02.05   1 month    3 months   6 months  27.02.04 - Since launch*
                                                                                   28.02.05

    PUT Total Assets (£m)               45.98      0.68%      3.14%      12.32%     17.70%     24.95%
    PUT Ords Price                      119.75     1.70%      16.26%     45.15%     44.28%     19.8%
    PUT Ords NAV                        137.99     0.82%      4.40%      21.03%     28.46%     41.8%
    PUT ZDP Price                       116.63     -1.99%     0.98%      12.41%     11.20%     16.6%
    PUT ZDP NAV                         109.42     0.52%      1.68%      3.42%      7.08%       9.4%
    FTSE 100 Index                     4968.50     2.39%      5.64%      11.42%     10.60%     15.9%
    FTSE World Index GBP                299.67     2.34%      5.83%      11.73%     10.81%     16.2%
    FTSE Utilities Index               4226.39     -1.14%     5.32%      9.03%      21.08%     33.9%
    FTSE Global Utilities GBP          2444.30     -0.68%     5.53%      10.85%     17.61%     24.8%
    PUT Unit** Price                    118.15     -0.19%     8.42%      28.34%     27.30%     18.1%
    PUT Unit** NAV                      123.32

    PUT Ords Shares                     -13.2%              discount
    PUT ZDP Shares                       6.6%               premium
    PUT Units**                         -4.2%               discount

                                         Hurdle Rate***              Terminal Cover
    PUT Ords                             2.5%                   -
    PUT ZDP                             -6.4%                 1.47x

               5.6% yield

    *launch: 03.11.03

    **Unit calculated as weighted average of Ords + ZDP shares in issue

    ***Rate at which company's gross assets must rise to repay stated mid-market share
        price on wind-up


With continued tightening of monetary policy from generational lows in the US,
Europe and UK, the strong advances of stock markets in the final quarter of 2004
were contrary to our expectations. Utilities continued to perform well over this
period, although this may have been more to do with investors' general wariness
over the sustainability of the broader market rally, than the value on offer
within the UK Utility sector.


Perhaps the most prominent development in the European utility sector was the
successful conclusion of the quinquennial water review and the resultant bid
speculation surrounding the stocks such as Pennon group and AWG.  This was
amplified by the power of veto on UK water mergers passing to the EU competition
commission on December 29th.


In the event the Final Determination from OFWAT was broadly favourable to equity
investors. Average household bills will rise over the five years to 2010 by 18%,
whilst average annual price limits have been set at 4.2%. This is a little
better than previously indicated. Also of benefit was industry capital
expenditure which at £16.8bn over the period was slightly more accommodating to
water company balance sheets than previously feared. The cost of capital was
left unchanged at 5.1% post tax real return. This will ensure a slightly greater
growth in companies' regulated asset bases which in turn will increase equity
valuations over time.


To this end we have sold the portfolio's investment in East Surrey Holdings,
although we have maintained our holding of AWG as management undertake positive
steps to improve and realise value from its non-regulated assets.


We have generally tried to find some new investment opportunities selling some
of our overvalued assets whilst doing so. This was evidenced from the disposal
of our holdings in Macquarie Airports (Australian airport operator) and Sias
(Italian toll roads). These were timely disposals with both stocks having fallen
subsequently.


We also sold the holding in PPC during the period as regulatory and political
uncertainty weighed on the valuation, and Korea Electric Power as the sustained
rise in oil price is likely to hurt earnings considerably for this year. We have
redeployed the capital into Canada with the purchase of two Canadian Income
Trust's. These provide an excellent play on the growth of the global renewable
energy market whilst providing a yield of approximately 10%.


As confidence has grown on the power price outlook in Germany and anticipation
that the incoming regulator will prove toothless, we have re-purchased the
utility RWE to compliment our existing holding of E.On. Both companies shares
trade at reasonable multiples versus the European utility average whilst
offering strong free cash flow and dividend growth.


In the short term the sector is likely to remain volatile as a result of rising
bond yields and a general return to favour of the technology sectors. In this
regard the Trust is reasonably well positioned having about 25% of its assets in
telecoms shares and only a small exposure to the highly regulated utilities
which we feel are vulnerable, at least in the short term, to a sell off in the
bond markets.


7th March 2005

Premier Fund Managers              
Source: Premier Fund Managers Limited as at 28/02/05. MAF3487


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