12 January 2024

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 7.6% in December, which was ahead of the FTSE All Share total return Index, up by 4.5% over the month. For the six months to 31 December 2023, UIL's NAV total return increased 4.1%, underperforming the FTSE All Share total return Index which was up 5.2% over the same period.

Global equity markets in December continued to be strong, as expectations that the US Federal Reserve will cut interest rates in 2024 were confirmed, with the Federal Open Market Committee indicating that there could be three rates cuts in 2024 and Colin Powell, Chairman of the Federal Reserve openly echoing this view. Subsequently, the S&P Index was up by 4.4%, and the DXY Dollar Index fell.

In Europe, favourable inflationary news also continued with both the UK and the Eurozone's inflationary levels coming in below expectations. The UK reported November's Consumer Price Indices at 3.9%, the lowest since September 2021, whilst the Euro area fell to 2.4%, the lowest since July 2021. Both the Bank of England and the European Central Bank kept interest rates unchanged. The FTSE 100 was up by 3.7% for the month of December whilst the Eurostoxx Index increased by 3.2%. Sterling's performance in December was mixed, up 0.7% against the US Dollar, but down 0.5% against the Euro and down 2.1% against the Australian Dollar.

This more aggressive policy pivot by the Federal Reserve fuelled a more positive outlook for emerging markets. Within Latam, the Brazilian Bovespa Index was up by 5.4% for the month of December, the Mexican Bolsa Index was up 6.2% and the Chilean IPSA Index was up by 6.5%. Argentina was the outperformer in the region for the month of December, with the Merval Index up by 14.3%, as the new President, Javier Milei, implemented a massive deregulation package to enhance the competitiveness of Argentina which so far has witnessed fewer protests than expected.

Asia followed suit with India's Sensex Index up by 7.8%, the Vietnam Ho Chi Minh Index was up by 3.3%, the Philippines PSEi Index up by 3.6% and the Thai Set Index was up by 2.6%. The outliers for the month were Hong Kong's Hang Seng Index which was flat and the Chinese Shanghai Composite Index was down 1.8%. Purchasing Managers' Index ("PMI") data reported from China was mixed with manufacturing PMI data being in contractionary territory whilst services being expansionary.

In the commodities market, industrial metals were mixed with copper up 1.6% but nickel falling marginally by 0.3%. Precious metals were also mixed with gold up 1.3% in December and silver down 5.8%. Oil continued to be weak, down by 7.0% as global oil demand slowed.

PORTFOLIO

There were no changes to the top ten constituents of the UIL portfolio in December.

Somers' valuation was up 12.5% during the month reflecting the solid share price performance of Resimac which was up 17.5% in December benefitting from market sentiment that the possibility of an additional interest rate increase is waning.

Zeta's share price declined by 8.3% over the month, reflecting underlying portfolio movements with Alliance Nickel's share price falling by 17.6% in December.

UEM's share price increased by 4.1% in December as it delivered a NAV total return of 5.4%, outperforming the MSCI Emerging Market total return Index which was up by 2.7% in Sterling terms during the month. The UEM discount to NAV widened to 14.7% from 13.6%.

The Market Limited's share price was down 17.9%, clawing back some of the strong performance witnessed in November though the continued wide bid-offer spread can result in quite large pricing movements.

West Hamilton Holdings Limited's valuation was down 3.4% and Carebook Technologies' share price climbed by 7.1%

DEBT

Bank debt was reduced to £15.0m from £20.0m over the month, all drawn in Sterling. Other debt rose from £0.6m to £9.8m.

ZDP SHARES

The share prices of the 2024, 2026 and 2028 ZDP shares appreciated by 0.8%, 1.4% and 1.1% respectively, over the month, trading at 127.00p, 108.50p and 89.50p respectively.

OTHER

UIL's ordinary share price increased by 8.1% to 127.00p in December while the discount to NAV narrowed marginally from 37.7% to 37.5%. The first quarterly interim dividend of 2.00p per ordinary share in respect of the year ending 30 June 2024, was paid on 21 December 2023 to shareholders on the register on 1 December 2023.

Name of contact and telephone number for enquiries:

Charles Jillings

ICM Investment Management Limited                                 +44(0)1372 271486