Edison issues review on Utilico Emerging Markets
OREANDA-NEWS. Utilico Emerging Markets (UEM) is a closed-end investment company with a focus on infrastructure, utilities and related companies in emerging markets. This specialisation differentiates it from its emerging market peers, while the dividend yield of 3.9% reflects investment in cash-generative businesses. UEM's NAV total return is above the peer group over, one, three, five and 10 years. Investors may wish to consider using UEM to gain exposure to companies that are integral to the long-term growth of emerging markets.
Despite the relative outperformance of UEM versus the peer group, the share price discount to NAV has been on a widening trend since Q415 on the back of heightened macroeconomic concerns. The current c 12% discount is wider than the average of the last one, three, five and 10 years (range of 6.3% to 9.5%). UEM's above-average yield ranks it third in the peer group.
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