UIL lags benchmark – UIL achieved a NAV total return per ordinary share of 7.7% for the year to 30 June 2017, underperforming the All Share, which was up by 18.1%. The Board maintained total dividends at 7.50p.
The chairman points out that the majority of the funds ‘platforms’ (the companies that it has established to make investments through) have made significant progress over the last 12 months. However, there is a ‘discount on discount’ problem in that Utilico Emerging Markets’ share price on 30 June 2017 was 219.50p, a discount of 9.3% to the diluted NAV of 241.92p. A look-through valuation of Utilico Emerging Markets, Somers and Zeta would increase UIL’s NAV by 16.7% to 295.01p per share. If some brokers’ look-through valuation for Infratil of NZD 4.00 per share was reflected in UIL’s NAV, this would increase the look-through valuation by a further 3.2% to 303.10p.
UIL made net withdrawals of GBP23.5m, (prior year GBP22.4m) from its platform investments. Key realisations included GBP17.7m from Utilico Emerging, GBP10.1m from Zeta, GBP2.9m from Bermuda First Investment Company Limited (“BFIC”) and GBP2.7m from Infratil. Key investments were GBP21.7m into Somers and GBP3.0m into Allectus Capital Limited (“Allectus”), formerly named Vix Investments Limited. In addition, Allectus distributed its Optal Limited (“Optal”) holding to its shareholders in specie and as a result UIL received Optal shares to the value of GBP13.6m.
The report goes into the portfolio in some detail – we won’t repeat this here but it will be available in the fund’s annual report which should be on our website in due course.
UTL : UIL lags benchmark