Edison issues update on UIL (UTL): Investing for long-term value creation

London, UK, 4 October 2023

Edison issues update on UIL (UTL): Investing for long-term value creation

UIL Limiteds (UILs) value-focused manager, Charles Jillings, is supported by a seasoned global team of sector specialists. The company has experienced a difficult spell of relative performance during a period of economic uncertainty and stock market volatility. Also, growth stock valuation multiples have come under pressure due to rising interest rates. However, the manager has high conviction that over the longer term significant value can be realised from UILs portfolio companies. Financial companies Resimac and Waverton Investment Management are the two largest exposures in the fund. Despite robust fundamentals, Resimacs share price has languished and Jillings considers its 5.6x P/E multiple and 8.7% dividend yield to be very appealing.

Not only is UIL trading at a wide discount, an investor in the company also effectively receives a double discount. As examples, at end-August 2023, number two holding, Zeta Resources (17.0% of the fund), was trading at a 21.8% discount to net tangible assets, while number three holding, Utilico Emerging Markets Trust (12.3% of the fund), was trading at a 13.9% discount to NAV. Generally, investment company discounts across the board have widened in an environment of higher-than-average investor risk aversion. Therefore, a positive change in sentiment, maybe in response to less economic uncertainty in global markets, could lead to a material uplift in UILs share price.

 
Click here to view the full report.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached across institutions, family offices, wealth managers and retail investors Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edisons reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Mel Jenner +44 (0)20 3077 5700 investmenttrusts@edisongroup.com

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn www.linkedin.com/company/edison-group-/

Twitter  www.twitter.com/Edison_Inv_Res

YouTube www.youtube.com/edisonitv