13 June 2025

UTILICO EMERGING MARKETS TRUST PLC

(LEI Number: 2138005TJMCWR2394O39)

Publication of monthly factsheet

The latest monthly factsheet for Utilico Emerging Markets Trust plc ("UEM" or the "Company") will shortly be available through the Company's website at:

https://www.uemtrust.co.uk/investor-relations/factsheet-archive

Monthly commentary

PERFORMANCE

UEM's NAV total return was up by 3.8% in May, outperforming the MSCI Emerging Markets total return Index which increased by 3.4% in Sterling terms during the month.

Markets in May were much more positive as trade tensions continued to ease, helped by the US and China agreeing to a 90 day pause on escalated trade tariffs. The US materially lowered its tariffs on China from 145% to 30% and China reduced its tariffs on the US from 125% to 10% although question marks remain as to how this will play out in the coming months given the fragility of their relationship. At the end of the month, the US market was also boosted by the US Supreme Court's ruling that President Trump's 'Liberation Day' tariffs announced on the 2 April were illegal (albeit this is now being appealed by the White House) and the US reported better than expected macro-economic data and resilient non farmers payroll. However, concerns around the sustainability of US debt levels continue, fuelled by the 'One Big Beautiful Bill Act' and not helped by Moody's downgrade of US debt rating. The US stock market managed to look through this, with the S&P 500 Index up by 6.2% for the month.

The Chinese market underperformed the MSCI EM Index, with the Shanghai Composite Index up by 2.1% for May, despite rate cuts by the People's Bank of China and the reduction in US tariffs as deflationary pressures continued and reported GDP growth was modest. The Hong Kong Hang Seng Index however was up by 5.3% benefitting from foreign inflows and new listings as well as having a higher weighting of tech and finance stocks in the index which performed well during the month.  Elsewhere in Asia, the Vietnamese Ho Chi Minh Index was up by 8.7%, also benefitting from the US tariff reprieve. In Indonesia, the JCI Index was up by 6.0%, as the central bank also cut interest rates and consumer sentiment improved. India's Sensex Index witnessed a 1.5% increase following two months of strong returns whilst the Philippines' PSEi Index was essentially flat, down by 0.2%, and the Thai Set Index was down by 4.0%.

Within Latam, Argentina again saw strong performance with the Merval Index up by 8.5% for the month, benefitting from President Milei's party achieving strong support in regional elections and inflation continuing to be reduced. The Mexican Bolsa Index was up by 2.8% whilst the Brazilian Ibovespa Index was more subdued up by 1.5% in May.

Within Eastern Europe, performance was mixed; the Greek ASE Index was up by 7.8% due to improved market sentiment whilst the Polish MSCI Index was up only 1.6%, negatively impacted by the political uncertainty ahead of the presidential elections.

Currency wise, the US Dollar continued to weaken across the board, with Sterling appreciating 1.0%. Sterling also appreciated against the Euro by 1.1% and against the Brazilian Real it was up by 2.2%.

PORTFOLIO

There were two changes to the top thirty holdings in May, with Grupo Aeroportuario del Sureste ("ASUR") and Grupo Traxion replacing TAV and Rumo.

Both stocks are not new to the top thirty constituents. ASUR is a Mexican listed airport operator, operating nine airports in the southeastern states of Mexico as well as airports in Colombia and Puerto Rico. Grupo Traxion, also a Mexican listed company, is a leading mobility and logistics solutions company based in Mexico.

Overall, within the top thirty, performance was strong. During the month Grupo Traxion saw the largest share price appreciation of 20.5%, due to positive quarterly results released at the end of April as well as the market benefitting from improved tariff relations with the US.

Two of the top thirty container port operators also witnessed strong share price performance in May. International Container Terminal ("ICT"), the Philippines listed port operator, saw a share price increase of 20.4% whilst Piraeus Port, the Greek listed port operator, was up by 13.4% during the month, both companies reporting better than expected 1Q25 results. Holding Bursatil was up by 19.7% helped by strong results and an improvement in dividend policy, and Serena Energia was up by 18.0% in May, benefitting from a tender offer for the company finally being tabled.

One of the weaker performers during the month was Interconexion Electrica down by 9.0%, partly affected by the overall weaker Colombian market performance and also the stock going ex dividend. Manila Water was down by 2.9%, on the back of some profit taking post a strong share price performance and Eletrobras was down by 2.7% during the month.

Portfolio purchases amounted to £19.0m and total realisations were £18.3m.

DEBT

UEM reduced its debt position overall by 5.1% to £16.9m in May, repaying part of its Euro exposure and increasing its US Dollars borrowings, with the overall debt facility for the month being drawn EUR 7.5m, USD 7.5m and GBP 5.0m.

OTHER

UEM's share price increased by 10.6% in May, ending the month at 241.00p. The discount to NAV decreased from 16.4% to 11.0%.

UEM bought back 647,000 shares at an average price of 227.27p in the month resulting in UEM taking the total shares bought back since its year end to 876,000 shares, equivalent to 0.5% of the share capital as at 31 March 2025.

A fourth quarterly interim dividend of 2.325p per ordinary share in respect of the year ended 31 March 2025 was declared and will be paid on 27 June 2025 to shareholders on the register on 6 June 2025.

UEM's total dividends for the year to 31 March 2025 amounted to 9.125p per share, this represented the tenth year of consecutive annual dividend increases. UEM was recognised by the UK's Association of Investment Companies as one of the next generation of "Dividend Heroes", the only Global Emerging Markets fund to do so.

Name of contact and telephone number for enquiries:

ICM Investment Management Limited                                 +44(0)1372 271486

Charles Jillings, Jacqueline Broers, Alastair Moreton

Montfort Communications

Gay Collins, Nita Shah                                                             +44(0)20 3770 7913

utilico@montfort.london