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Utilico Emerging Markets celebrates completion of re-domiciliation to UK
Investment trust Utilico Emerging Markets (UEM) announced on Tuesday that it completed the process of re-domiciliation to the United Kingdom following a decision from the Supreme Court of Bermuda.
The company confirmed that 234,508,636 ordinary shares of one penny each in the capital of the company have been admitted to listing on the premium listing segment of the London Stock Exchange, with trading becoming effective at 0800 BST on Tuesday.
UEM had initially announced its intention to change its domicile to the UK on 14 February, stating that the move was in the "best interests" of the trust.
John Rennocks, chairman of UEM, said: "We are pleased to be a UK based investment trust with a premium listing on the main market of the London Stock Exchange, generally considered to be the 'gold standard' for investment companies. We hope that this has the potential to improve investor perception and narrow the discount, which is currently higher than historical averages."
The trust is primarily invested in electricity, gas and ports, and has achieved a NAV total return of 315.4% versus the MSCI Emerging Markets Total Return Index (GBP adjusted) of 244.8% since its inception in 2005.
Furthermore, the trust has increased or maintained its dividend every year since inception, with a current yield of 3.3%.
Charles Jillings, chief executive of UEM's manager ICM Investment Management, said: "There has been no change to the investment objectives or dividend policy and we continue to invest with a long term horizon in well managed, mature, operational investments with strong cashflows. In investment, you've got to have conviction and optimism. That sort of confidence, built up over time, enables us to find investments and makes sure we don't back away from them. And, as of now, we find no shortage of exciting opportunities."
As of 1647 BST, Utilico Emerging Markets' shares were up 1.87% at 215.96p.