Utilico Emerging Markets Trust PLC on Friday raised dividends for financial 2025, despite underperforming its benchmark during the 12-month period.
The Surrey, England-based investor in infrastructure and utility sectors increased the total dividend per share for the year ended March 31 by 6.1% to 9.125 pence from 8.60p the year prior.
Utilico’s net asset value total return per share swung to negative 2.9% from positive 12.8% in 2024. This was well below its benchmark, the MSCI Emerging Markets total return index, which rose 5.7%.
The firm’s NAV per share at March 31 was 257.28p, down 6.1% from 274.01p on-year.
Utilico said the past year’s market instability had dragged on performance. The company highlighted Moody’s downgrade of the US debt rating, and suggested US debt levels continued to be fuelled by President Trump’s ‘Big Beautiful Bill’.
However, the firm reported improvement after its 2025 year-end, as trade tensions eased. NAV total return increased by 3.8% in May.
Utilico’s Argentinian portfolio performed well, rising 8.5% in May according to the Merval index. However, the Chinese market continued to perform below the MSCI Emerging Markets index, Utilico said.
The company indicated that the major headwind on the horizon was navigating ‘political noise’ amid international tensions. Utilico insisted that emerging markets will be well-placed in this environment, as investor sentiment drifts away from the US.
‘While short term volatility may persist, the board shares the confidence of the investment managers in the proven ability of the portfolio to outperform the MSCI EM Index over the long term, based on disciplined stock selection, focused on infrastructure megatrends in emerging markets,’ commented Chair Mark Bridgeman.
The company’s shares were 0.3% lower at 240.37p each on Friday afternoon in London.
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