London, UK, 16 March 2017

Edison issues review on Utilico Emerging Markets (UEM)

Utilico Emerging Markets (UEM) aims to generate long-term total returns from a portfolio invested primarily in operational and cash generative companies in emerging markets infrastructure and utility sectors. UEM typically holds about 60 to 90 high-conviction positions and is broadly diversified by both sector and geography; the manager has a long-term investment approach and aims to generate a 15% pa total return from each holding. More than 95% of the portfolio is invested in well-established businesses with 75% comprising companies paying a dividend. UEM has increased or maintained its dividend every year since launch in 2005.

UEM's current 10.6% share price discount to cum-income NAV is broadly in line with the one-year average and wider than the averages of the last three, five and 10 years (range of 8.1% to 9.1%). There is a control mechanism in place aiming to limit the discount to 10% and UEM has been actively repurchasing shares during FY17. While primarily focused on total return, the board aims to pay a stable to rising annual dividend and has proposed a 3.9% increase in the dividend to 6.65p, giving UEM a yield of 3.1%, significantly higher than emerging market peers.

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