Publication of monthly factsheet
8 April 2022
UIL LIMITED
(LEI Number: 213800CTZ7TEIE7YM468)
Publication of monthly factsheet
The latest monthly factsheet for UIL Limited ("UIL" or the "Company") will shortly be available through the Company's website at:
https://www.uil.limited/investor-relations/factsheet-archive
Monthly commentary
PERFORMANCE
UIL's NAV total return increased by 7.0% during March, ahead of the FTSE All-Share total return Index which was up by 1.3% over the month.
Volatility in global markets remains elevated, as the stalled Russian invasion of Ukraine drags on with no clear resolution in sight. China continues to enforce its zero-COVID policy, with lockdowns resulting in the composite PMI collapsing to 43.9 in March from 50.1, the sharpest decline in activity since the start of the pandemic. The Federal Bank approved its first interest rate increase in more than three years and indicated further rate rises ahead and shrinking of its balance sheet, tightening policy as CPI inflation hit a 40-year high.
Developed markets were mostly positive in March, with the S&P 500 up 3.6%, the Australian ASX 200 up 6.4%, the Japanese Nikkei up 4.9% and the FTSE 100 up 0.8%. Eurozone indices were weaker, with the Eurostoxx down 0.6%. Emerging markets was more mixed, with notable weakness in the Shanghai Composite falling 6.1%, whilst Latam markets were more buoyant, with Brazil's Bovespa Index up 6.1% and the Chilean IPSA recovering by 8.9%.
Sterling depreciated against most major currencies in March, declining by 1.9% against the US Dollar, falling 5.2% versus the Australian Dollar and down by 0.9% against the Euro. The carry trade strengthened the Brazilian Real, which was up 10.5% against Sterling.
Commodities continued to strengthen in March, with Brent Crude Oil gaining 6.9% in March, ending the month at USD 107.91/bbl. Copper was also up 6.9%, while gold briefly traded above USD 2,000/oz early in the month, before dropping back and ending up by 1.5% over the period, at USD 1,937.44/oz.
PORTFOLIO
There was one change to UIL's top ten holdings in March, with Orbital replacing Sindoh due to relative performance and realisations. Orbital was previously a top ten position but the termination of the third engine development program under its long-term supply agreement with customer Insitu saw its share price drop. However, shares rebounded 59.1% in March following the announcement that Orbital is to manufacture and supply propulsion systems for the Australian Army's next generation of Tactical Uncrewed Aerial Systems under the LAND129 Phase 3 program.
In the commodities sector, Resolute Mining's share price was up 36.0% following the successful completion of maintenance works at the Syama sulphide plant, its principal gold processing facility and the extension of its revolving credit facility. Zeta's share price was up by 4.8%, bolstered by broader commodity strength and good underlying performance of share prices in its two largest investments, Copper Mountain Mining and Panoramic Resources up 5.7% and 13.7% in March respectively.
UEM's share price was up 4.3% while Somers' valuation was modestly up by 0.8% during the month. Allectus Capital's valuation was up by 2.9% while the value of Nautilus Data Tech and ICM Mobility were both unchanged. Assetco's share price was down by 9.6% in March.
Purchases during the month for the portfolio totalled £0.9m and realisations amounted to £14.8m.
DEBT
Bank debt positions were slightly reduced in underlying foreign currency terms in March, though Sterling weakness resulted in the overall liability increasing to £51.4m from £50.2m. The facility was drawn as AUD 34.1m, USD 30.3m and EUR 10.6m.
Foreign exchange hedge positions were maintained at the same levels as at the end of February, at USD 61.3m, AUD 60.6m, CAD 57.8m and EUR 9.0m. The AUD hedge against USD was also unchanged at AUD 10.0m.
OTHER
UIL's ordinary share price increased by 4.8% to 240.00p. The discount to NAV widened slightly to 35.1% as at 31 March 2022 from 34.1% as at 28 February 2022.
The share prices of the 2022 and 2024 ZDP shares were unchanged. The price of the 2026 ZDP shares declined by 1.7% over the month, whilst the 2028 ZDP share price fell by 1.0%.
UIL declared a second quarterly interim dividend of 2.00p per ordinary share in respect of the year ending 30 June 2022, which was paid on 31 March 2022 to shareholders on the register on 4 March 2022.
Name of contact and telephone number for enquiries:
Charles Jillings
ICM Investment Management Limited and ICM Limited
Telephone: 01372 271486
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