16 February 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 was 0.2% in January, ahead of the FTSE All Share total return Index which declined by 1.3% over the month.

Global stock markets were mixed in January, as the continued downward trend in inflation led to the US Federal Reserve removing its tightening bias but pushing back on hopes of imminent rate cuts. The S&P 500 Index firmed by 1.6%, reflecting continued performance which has been heavily concentrated in the "Mag 7" (Amazon, Apple, Google, etc). It was notable within this group that Tesla warned on slowing EV demand and intense competition from Chinese EV manufacturers. China exporting deflation and undercutting global rivals in targeted sectors is a developing trend worth watching. The DXY Dollar Index firmed.

In Europe, inflation fell to 2.8% in January, adding further pressure on the European Central Bank to cut rates, though core inflation remained sticky at 3.3%. The Eurostoxx Index climbed by 2.8% over the month. In the UK, the Monetary Policy Committee is holding policy rates flat with consumer price inflation remaining unchanged at 4.0%. Sterling strengthened against most currencies, up 3.1% against the Australian Dollar and 1.6% versus the Euro, while easing very slightly against the US Dollar.

In emerging markets, China continued to disappoint, with the Hang Seng Index plunging by 9.2% over the month, not helped by the bankruptcy filing of a major player in China's USD 3 trillion shadow banking sector. The Sensex Index hit an all-time high during the month as the bull run in India continued, though profit-taking saw it end the month down 0.7%. Meanwhile, the Brazilian Bovespa Index was more subdued, retracing by 4.8% after a very strong run to an all-time high at the end of 2023.

In the commodities markets, industrial metals were mixed in January, with copper up 0.4% but nickel continuing to slide, down by 2.2% over the month. Precious metals softened, with the gold price easing by 1.1% and the silver price declining 3.5%. Heightened geopolitical tensions in the Middle East following the Houthi attacks on shipping in the Red Sea saw the Brent oil price rise by 6.1%.

PORTFOLIO

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

Somers' valuation increased by 3.0%, mainly driven by its second-largest holding, Resimac, whose share price was up by 12.5% over the month. This followed receding concerns that the Reserve Bank of Australia would increase rates again after reports that consumer price inflation fell to a two-year low of 4.1% in the December quarter. UIL also holds a significant direct investment in Resimac.

Zeta's share price declined by 5.5% over the month, reflecting broad softening of its underlying portfolio of listed investments and the wider commodity markets. Horizon Gold's share price was down 5.2% and Alliance Nickel fell by 19.0% during the month.

UEM's share price declined by 0.2% in January, as it delivered a NAV total return of 0.5%, outperforming the MSCI Emerging Markets total return Index which fell by 4.3% in Sterling terms over the month. UEM's discount to NAV narrowed slightly from 14.7% to 14.5%.

Carebook Technologies' share price fell by 20.0% over the month, while the share prices of UIL's other top ten holdings were broadly unchanged.

DEBT

Bank debt was unchanged at £15.0m over the month, drawn in Sterling. Other debt decreased from £9.8m to £7.2m in January.

ZDP SHARES

In January, the share prices of the 2024, 2026 and 2028 ZDP shares appreciated by 0.8%, 5.1% and 7.8% respectively, trading at 128.00p, 114.00p and 96.50p respectively.

OTHER

UIL's ordinary share price decreased by 3.1% to 123.00p in January while the discount to NAV widened to 39.6% from 37.5%.

Name of contact and telephone number for enquiries:

Charles Jillings

ICM Investment Management Limited                                 +44(0)1372 271486