Utilico Emerging Markets Trust — Well positioned to ride out the US tariff storm

Utilico Emerging Markets Trusts (UEM) now has two portfolio managers: Charles Jillings (since launch) and Jacqueline Broers (former deputy manager) following her promotion at the beginning of 2025. They are both highly impressed with the quality of the trust’s portfolio companies and their management teams. However, the managers consider it wise to take a cautiously optimistic shorter-term view given the risks to global growth from US President Trump’s trade policies. In an uncertain macroeconomic environment, UEM looks relatively well positioned given its focus on high-quality, cash-generative utility and infrastructure assets. The favourable prospects for emerging markets remain intact with above-average growth potential and equity valuations that are at a substantial discount to those in developed markets. UEM has a long-term record of outperformance versus the MSCI Emerging Markets Index, which is used as a reference and, since inception in 2005 until the end of March 2025, the trust’s NAV total return has compounded at 8.8% per year.