2022
REPORT AND ACCOUNTS
EMERGING CITIES | EMERGING WEALTH | EMERGING OPPORTUNITIES
TRUSTED
A closed end fund
focused on long-term
total return
DIVERSIFIED
A diverse portfolio of
operational cash
generative investments
PROVEN
Strong management team
with a long-term record
of outperformance
Utilico Emerging Markets Trust plc’s (“UEM”
or the “Company”) investment objective is to

investment policy that permits UEM to make
investments predominantly in infrastructure, utility
and related sectors, mainly in emerging markets.
Santos Brasil Participacoes S.A. (Brazil)
1
Report and Accounts for the year to 31 March 2022
WHY UTILICO EMERGING MARKETS TRUST PLC?
OPPORTUNITY

up investments spread across jurisdictions and sectors.
The Company seeks to invest in companies most of which

EMERGING MARKETS




investment opportunities for UEM. The EM middle

need for investment in infrastructure and utilities.
HIGH OPERATING LEVERAGE



UTILITIES AND INFRASTRUCTURE ASSETS





UEM is an emerging markets specialist fund
focused on long-term total return predominantly in
infrastructure and utility investments.
2 3
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
CONTENTS
FINANCIAL CALENDAR
Year End
31 March
Annual General Meeting

Half Year

Dividends Payable



consists of investing the pooled
funds of its shareholders in
accordance with its investment

aim of spreading investment
risk and generating a return for
shareholders. The joint portfolio
managers of the Company are
ICM Investment Management
Limited (“ICMIM”) and ICM Limited

“Investment Managers”.
PERFORMANCE
4 Current Year Performance
5 Performance Summary
 
 
12 Top Thirty Companies
 
15 Ten Year Performance
STRATEGIC REPORT AND INVESTMENTS
 
 
24 Our Investment Approach
26 ESG Spotlight
27 Largest Holdings Overview
33 Strategic Report
42 Investment Managers and Team
GOVERNANCE
44 Directors
 
52 Corporate Governance Statement
 
60 Audit & Risk Committee Report
 
FINANCIAL STATEMENTS
 
70 Accounts
74 Notes to the Accounts
ADDITIONAL INFORMATION
94 Notice of Annual General Meeting
98 Company Information
99 Alternative Performance Measures
101 Historical Performance
Rumo S.A. (Brazil)
Front cover image – Alupar Investimento S.A.
(Brazil)
2 3
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
FINANCIAL HIGHLIGHTS
NET ASSET VALUE
(“NAV”) TOTAL RETURN
PER SHARE*
14.9%
(2021: 30.2%)
NAV OF 254.22P
PER SHARE*
11.2%
(2021: 25.7%)
REVENUE EARNINGS
PER SHARE OF
8.17p
(2021: 8.13p)
DIVIDENDS OF 8.00P
PER SHARE
2.9%
(2021: 2.6%)
* See Alternative Performance Measures on pages 99 and 100

Rumo S.A. (Brazil)
UEM turned in a strong performance, delivering
a NAV total return of 14.9% for the year to
31 March 2022.
4 5
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
CURRENT YEAR PERFORMANCE
TOTAL RETURN COMPARATIVE PERFORMANCE
(1)
from 31 March 2021 to 31 March 2022
Source: ICM and Bloomberg
(1)
Rebased to 100 as at 31 March 2021
MSCI EM total return Index (GBP adjusted)
NAV total return per share
Mar 22Feb 22Jan 22Dec 21Nov 21Oct 21Sep 21Aug 21Jul 21Jun 21May 21Apr 21Mar 21
90
95
100
105
110
115
120
DIVIDENDS OF 8.00P
PER SHARE
2.9%
(2021: 2.6%)
INVESTED
£124.5m
(2021: £174.7m)
REALISED
£176.9m
(2021: £142.1m)
DIVIDENDS PAID
£17.5m
(2021: £17.2m)
NAV TOTAL RETURN
PER SHARE*
14.9%
(2021: 30.2%)
SHARE PRICE
TOTAL RETURN
PER SHARE*
17.6%
(2021: 27.3%)
NAV OF 254.22P
PER SHARE*
11.2%
(2021: 25.7%)
SHARE PRICE
OF 224.00P
13.4%
(2021: 22.3%)
6.5M SHARES
BOUGHT BACK
£13.9m
(2021: £12.1m)
TOTAL REVENUE
RETURN INCOME
£22.6m
(2021: £22.8m)
ONGOING CHARGES*
1.4%
(2021: 1.1%)
NET DEBT REDUCED TO
£23.2m
(2021: £53.6m)
* See Alternative Performance Measures on pages 99 and 100
4 5
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
PERFORMANCE SUMMARY
31 March
2022
31 March
2021
% change
2022/21
NAV total return per share
(1)
(annual) (%) 14.9 30.2 n/a
Share price total return per share
(1)
(annual) (%) 17.6 27.3 n/a
Annual compound NAV total return
(1)
 9.7 9.4 n/a
NAV per share
(1)
(pence) 254.22 228.54 11.2
Share price (pence) 224.00 197.50 13.4
Discount
(1)
(%) (11.9) (13.6) n/a
Earnings per share (basic)
- Capital (pence) 24.49 45.73 (46.4)
- Revenue (pence) 8.17 8.13 0.5
Total (pence) 32.66 53.86 (39.4)
Dividends per share
 2.000 1.925 3.9
 2.000 1.925 3.9
 2.000 1.925 3.9
 2.000
(2)
2.000 0.0
Total (pence) 8.000 7.775 2.9
Gross assets
(3)
(£m) 569.6 556.1 2.4
 545.9 505.7 7.9
 13.9 12.1 14.9
Net cash/(overdraft) (£m) 0.5 (3.2) 115.6
Bank loans (£m) (23.7) (50.4) (53.0)
 (23.2) (53.6) (56.7)
Gearing
(1)
(%) (4.3) (10.6) n/a
Management and administration fees and other expenses
 7.3 5.0 46.0
- including performance fee (£m) 7.3 10.1 (27.7)
Ongoing charges figure
(1)
 1.4 1.1
(4)
n/a
- including performance fee (%) 1.4 2.1
(4)
n/a
(1)
See Alternative Performance Measures on pages 99 and 100
(2)

(3)

(4)

page 77)



respect of UEM Bermuda.
6 7
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
The year to 31 March 2022 has


surprise. While we understood
the geopolitical tensions in

unlikely that Russia would invade



Europe. The response from the




dramatically.

importantly delivered a NAV total return of 14.9% for

high of 254.22p. This was ahead of the MSCI EM total


and long-term annual compound NAV total return since
inception to 31 March 2022 was 9.7%. The Investment






portfolio has regained value as a result. As at 31 March


in 2005.
RUSSIAN INVESTMENTS
UEM has found investing in Russia challenging over
the years due to the weak governance and endemic







two-thirds of its holding realising £1.5m in proceeds.

compliance and risk framework and will continue to
ensure UEM complies with any new sanctions as they

residual holding is carried at nil value. UEM has no other

GLOBAL ECONOMY









JOHN RENNOCKS
Chairman
Source: Bloomberg
Financials
Utilities
UEM NAV
total return
per share
Materials Industrials Information
technology
Energy Consumer
staples
Communication
services
Real
estate
Healthcare
16.3%
15.7%
14.9%
8.6% 7.9%
(2.1)%
(2.1)%
(5.4)%
(19.8)%
(23.9)% (24.1)%
MSCI EM SECTOR INDEX TOTAL RETURNS (GBP ADJUSTED)
from 31 March 2021 to 31 March 2022
6 7
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
and they largely remain unresolved. We are witnessing a








resources diverted and reinvested with an urgency and


war has resulted in sharply rising commodity prices



rely on food imports from Ukraine.
Our Investment Managers deserve a note of thanks.
Their approach to seeking out compelling opportunities

the years. A key aspect of their investment approach is
to seek out strong management teams who can deliver

challenges to date very well.
EMERGING MARKETS

to the development of Covid-19 in the individual








Dollar up 4.0% and the Indian Rupee up 1.1%.
Commodities have moved higher during the period



supply following years of under investment in resources



endure in the short term.
UNLISTED INVESTMENTS (LEVEL 3 INVESTMENTS)

at a modest level. This remains true today. The largest

Chinese wind and solar farm developer and operator
in mainland China. At year end this investment was



Source: Bloomberg
Mar
2022
Dec
2021
Sep
2021
Jun
2021
Mar
2021
PSEi – Philippine SE Index
Shanghai SE Composite Index
Brazil Ibovespa Index
Rebased to 100 as at 31 March 2021
60
70
80
90
100
110
120
130
Hang Seng Index
NIFTY 50 Index
INDICES MOVEMENTS
from 31 March 2021 to 31 March 2022
8 9
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022





revolution (through charging infrastructure). UEM




At year end the position was valued at £17.6m and





separately going forward.
REVENUE EARNINGS AND DIVIDEND




invested in the Data Services and Digital Infrastructure


the rest of the portfolio worked harder to deliver this
earnings uplift.






year.


cash-generative companies which have long-duration



SHARE BUYBACKS

13.6% as at 31 March 2021 to 11.9% as at 31 March 2022.

see over the medium term. The Company has continued



cost of £13.9m.
Source: Bloomberg
Hong Kong Dollar
Brazilian Real
Philippine Peso
Romanian Leu
Dec
2021
Sep
2021
Jun
2021
Mar
2021
Rebased to 100 as at 31 March 2021
90
100
110
120
130
Mar
2022
Indian Rupee
CURRENCY MOVEMENTS vs STERLING
from 31 March 2021 to 31 March 2022
(continued)
8 9
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022



shares if the discount widens in normal market



initial IPO capitalisation of UEM Bermuda when it came to

MANAGEMENT AND PERFORMANCE FEES



removed. More details are set out on page 77.

compared to 2.1% (including the performance fee) for the
year to 31 March 2021.
BOARD
Garth Milne retired from the Board at the 2021 annual
general meeting ("AGM") and we announced last year that


2021 the appointment of Mark Bridgeman as a Director





knowledge across EM including Asia. We look forward to

Anthony Muh has indicated his intention to retire
from the Board following the conclusion of UEM's

a tremendous asset to the Board with his insights and



COVID-19 IMPACT ON UEM





move to “living with Covid” policies and achieve “herd
immunity”. The major EM economy which is out of

policy puts their economy at risk as lockdowns destroy
economic activity.

Covid-19. The investee companies' management teams

volumes and margins. It is worth noting that no UEM






headwinds. With additional strong government and


market valuations.

DIVIDEND PER SHARE OF 8.00P, UP BY
2.9%
FOR THE YEAR TO 31 MARCH 2022
10
Utilico Emerging Markets Trust plc
Rumo S.A. (Brazil)
UEM CONTINUATION VOTE
We were pleased with the strong support of shareholders





OUTLOOK

and the zero-Covid policy in China are likely to persist

economies will see heightened volatility as markets





supportive.
Our investee companies are well positioned and well

well in these challenging times.
John Rennocks
Chairman

(continued)
11
Report and Accounts for the year to 31 March 2022
GEOGRAPHICAL INVESTMENT EXPOSURE
AS AT 31 MARCH 2022
Source: ICM

Mexico
4.2%
(2.6%)
Chile
1.8%
(3.3%)
Brazil
20.9%
(18.0%)
Colombia
3.5%
(4.8%)
Other Europe
10.2%
(6.0%)
Romania
2.3%
(3.2%)
China
(including Hong Kong)
15.9%
(17. 8%)
South Korea
5.4%
(6.5%)
The Philippines
4.6%
(6.1%)
India
11.3%
(13.5%)
Malaysia
2.8%
(3.2%)
Middle East/
Africa
5.6%
(5.6%)
Other Asia
4.4%
(4.3%)
20.9% Brazil
15.9% China (inc Hong Kong)
11.3% India
51.9% Other
19.3% Ports & Logistics
15.6% Data Services & Digital Infrastructure
15.5% Electricity
49.6% Other
THREE LARGEST SECTORS:THREE LARGEST GEOGRAPHIES:
Vietnam
7.1%
(5.1%)
12 13
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
TOP THIRTY COMPANIES
1
4.6%
International
Container Terminal
Services, Inc.
Ports and Logistics

management
company

the Philippines.
26,510

6
2.9%
Simpar S.A.
Ports and Logistics
A Brazilian holding

through its


and transportation
sectors.
16,682

5
3.0%
Gujarat State
Petronet Limited
Gas
A natural gas
infrastructure and
gas transmission

India.
17,037

10
2.3%
FPT Corporation
Data Services
and Digital
Infrastructure
An information
technology and
telecommunications
services company in
Vietnam.
13,254

3
3.2%
India Grid Trust
Electricity
An infrastructure
investment trust
with electricity and
transmission assets
listed in India.
18,357

8
2.8%
Ocean Wilsons
Holdings Limited
Ports and Logistics
An investment
company which
operates as a
maritime service


16,210

2
3.7%
Alupar
Investimento S.A.
Electricity
A Brazilian holding
company for energy
assets in the
electricity sector.
21,223

7
2.9%
My E.G. Services
Berhad
Data Services
and Digital
Infrastructure
A provider of
e-government
services in Malaysia.
16,230

4
3.1%
Petalite Limited
Renewables
An electric
vehicle charging
infrastructure

the UK.
17,621

9
2.5%
Rumo S.A.
Road and Rail

operator in Brazil.
14,122

Note: % of total investments

12 13
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
31 March
2022 Company (Country) Description
Fair value
£’000s
% of total
investment
11 CGN Capital Partners Infra Fund 3 (China)  12,543 2.2
12 Power Grid Corporation of India Limited
(India)
Electricity transmission 12,492 2.2
13 Citic Telecom International Holdings
Limited (Hong Kong)
Telecommunications provider 11,918 2.1
14 VinaCapital Vietnam Opportunity Fund Ltd
(Vietnam)
Investment trust 11,107 2.0
15 China Datang Corporation Renewable
Power Co. Limited (China)
Electricity generation 10,998 1.9
16 Corporacion Financiera Colombiana S.A.
(Colombia)
Infrastructure investments 10,394 1.8
17 China Everbright Greentech Limited (China) Biomass and waste treatment 10,384 1.8
18 Telelink Business Services Group (Bulgaria) Information technology service
provider
10,263 1.8
19 Grupo Aeroportuario del Pacifico, S.A.B. de
C.V. (Mexico)
Airport operator 10,253 1.8
20 Societe Nationale des Telecommunications
du Senegal (Senegal)
Telecommunications operator 9,967 1.7
21 KunLun Energy Company Limited (China)  9,921 1.7
22 Santos Brasil Participacoes S.A. (Brazil) Port operator 9,746 1.7
23 Orizon Valorizacao de Resiuos S.A. (Brazil) Waste treatment operator 9,259 1.6
24 Naver Corporation Limited (South Korea) Internet services provider 9,042 1.6
25 KT Corporation (South Korea) Telecommunications operator 8,658 1.5
26 PT Link Net Tbk. (Indonesia) 
television operator
8,515 1.5
27 Grupo Aeroportuario del Centro Norte,
S.A.B. de C.V. (Mexico)
Airport operator 8,225 1.5
28 Korean Internet Neutral Exchange Inc.
(South Korea)
Data centre operator 8,111 1.4
29 Powergrid Infrastructure Investment Trust
(India)
Infrastructure investment trust 8,009 1.4
30 Engie Energia Chile S.A. (Chile) Electricity generation and transmission 7,868 1.4
Other investments 196,767 34.4
Total portfolio 571,686 100.0
14 15
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022

NAV ANNUAL
COMPOUND TOTAL
RETURN*
9.7%
NAV TOTAL RETURN
PER SHARE*
371.7%
SHARE PRICE TOTAL
RETURN PER SHARE*
326.5%
Source: ICM and Bloomberg
Mar
19
Mar
18
Mar
17
Mar
16
Mar
15
Mar
14
Mar
13
Mar
12
Mar
11
Mar
10
Mar
09
Mar
08
Mar
07
Mar
06
Jul
05
Share price total return
(2)
MSCI EM total return
Index (GBP adjusted)
NAV total return per share
(2)
(1)
Rebased to 100 as at 20 July 2005
(2)
Adjusted for the exercise of warrants and subscription shares
50
100
150
200
250
300
350
400
450
500
Mar
22
Mar
20
MSCI EM Utilities total return
Index (GBP adjusted)
Mar
21
HISTORIC NAV AND SHARE PRICE PERFORMANCE (pence)
(1)

62.5M SHARES
BOUGHT BACK
£111.6m
DIVIDENDS PER SHARE
INCREASED FROM
1.50P TO
8.00p
DIVIDENDS PAID
CUMULATIVE
£203.4m
* See Alternative Performance Measures on pages 99 and 100
14 15
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
TEN YEAR PERFORMANCE
202020192018201720162015201420132012
Source: ICM
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
2021 2022
202020192018201720162015201420132012
Source: ICM*Excluding performance fees (see page 101 for
ongoing charges including performance fees)
0.0
0.4
0.8
1.2
1.6
2021
2022
DIVIDENDS PER SHARE (pence)
from March 2012 to March 2022
ONGOING CHARGES* (%)
from March 2012 to March 2022
202020192018201720162015201420132012
Source: ICMPurchases
Realisations
0
50
100
150
200
250
300
2021 2022
Source: ICM
Largest investment
Value of 2–10
Value of 11–20
Value of 21–40 Value of 41 and over
20192018201720162015201420132012 2020
0
100
200
300
400
500
600
700
2021
80
80
79
84
86
92 87
92
81
88
79
2022
INVESTMENT PURCHASES AND REALISATIONS (£m)
from March 2012 to March 2022
PORTFOLIO PROGRESSION (£m) AND NUMBER

from March 2012 to March 2022
UEM invests primarily in companies and sectors
displaying the characteristics of essential services
or monopolies.
16 17
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022

It is pleasing to see UEM deliver

with a NAV total return for the





to 31 March 2022. As previously



which focused on the shift to working from home and




increasingly recognised.




will focus on four topics in particular that we discuss at
length as investors.
INFLATION AND INTEREST RATES




the same time supply was slow to respond and the net

as nations return to normal.

conditions across the world which has led to wage

markets. If left unaddressed this will cause further

economies.


is likely to continue as decades of under-investment

to the Ukraine war will see increased drive for energy



commodities. Structurally we therefore see commodity
demand rising and pricing to remain to the upside.



coming months.
UKRAINE




food shortages are the potential drivers of social unrest.



governments to navigate a way forward for many poorer
nations and societies will lead to sharp social change.
The disruption in commodity supply due to the war has





from energy supply and supply chain security will drive


CHINA’S COVID POLICY

particularly virulent and is likely to see the need for
their heightened Covid restrictions to continue. As the

chains and economic activity. China has two fundamental





a shift to a greener society. We see commodity producers


changes.
CHARLES JILLINGS
Investment Manager
16 17
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”)




employees in discussions around the need to reduce our






investee companies do have a key role to play in reducing




CLIMATE CHANGE





security and green energy supply.
NAV PER SHARE WAS 254.22P, INCREASING BY
11.2%
IN THE YEAR TO 31 MARCH 2022
ORIZON VALORIZACAO DE RESIUOS S.A. (BRAZIL)
(“ORIZON”)
Orizon is a leading waste management company in
Brazil, operating sanitary landfills with specialised
infrastructure to receive waste and process it. Orizon
uses its core waste processing business to offer biogas
extraction, recycling, materials processing, carbon credits
and waste-to-energy services.
PORTFOLIO

increased to £569.6m as at 31 March 2022 from £556.1m


£30.4m.

holdings in its annual report and the monthly factsheet


end the top thirty holdings accounted for 65.6% of the

seven new entries into the top thirty holdings over the




Powergrid Infrastructure Investment Trust.
Falling out of the top thirty are China Gas Holdings





and Starpharma which reduced due to lower market
valuations.
Purchases in the portfolio decreased to £124.5m in the
year ended 31 March 2022 (31 March 2021: £174.7m)
and realisations increased to £176.9m (31 March 2021:

with long-term averages. An active decision was taken




to 31 March 2022 and more detail is set out on page 18.
18 19
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
BRAZIL REMAINS UEM’S LARGEST
COUNTRY EXPOSURE
20.9%
2.9%
CHINA REMAINS UEM’S SECOND
LARGEST COUNTRY EXPOSURE
15.9%
1.9%
INDIA IS UEM'S THIRD LARGEST
COUNTRY EXPOSURE
11.3%
2.2%
LATAM’S EXPOSURE
30.4%
(2021: 28.7%)
ASIA’S EXPOSURE
51.5%
(2021: 56.5%)
REST OF THE WORLD
18.1%
(2021: 14.8%)
IN THE YEAR TO 31 MARCH 2022
Note: increases/decreases refer to the movement in the portfolio percentage of the relevant country
SECTOR SPLIT OF INVESTMENTS
Ports and Logistics
19.3%
(16.3%)
Data Services and
Digital Infrastructure
15.6%
(13.6%)
Electricity
15.5%
(19.2%)

9.7%
(5.1%)
Telecommunications
8.6%
(8.9%)
Gas
8.4%
(11.5%)
Other
5.6%
(8.3%)
Infrastructure
Investment Funds
4.9%
(5.0%)
Airports
4.8%
(3.9%)
Water and Waste
4.0%
(2.1%)
Road and Rail
3.6%
(6.1%)
Source: ICM

(continued)
18 19
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
GRUPO AEROPORTUARIO DEL CENTRO NORTE, S.A.B. DE
C.V. (MEXICO) (“OMA”)
OMA is a Mexican airport operator. Operating thirteen
airports in the central and northern states of Mexico,
including Monterrey, one of Mexico's largest business
and industrial areas.

again and more detail is set out on page 11.
LEVEL 3 INVESTMENTS
UEM ended the year with level 3 investments totalling


investments increased mainly as a result of the revaluation

unlisted investments separately going forward.



BANK DEBT

decreased from £53.6m as at 31 March 2021 to £23.2m




renewed in March 2021 and matures in March 2024.
REVENUE RETURN
Revenue income was almost unchanged at £22.6m as at


shift of the portfolio into the Data Services and Digital
Infrastructure sector which are lower yielding investments.


in the year to 31 March 2021. While the investment
management fee is higher at 1.0% of NAV for assets up


removal of the performance fee (which was previously all

management fees to capital return and 20.0% to revenue

remained modest at £0.1m (prior year £0.3m) given the

unchanged at £1.5m during the year ended 31 March 2022
(31 March 2021: £1.6m).


to 8.17p compared to the prior year of 8.13p due to the



Retained revenue reserves rose to £7.3m as at 31 March

CAPITAL RETURN
The portfolio gained £58.3m on the capital account during

were £1.3m. The resultant total income gain on the capital
account was £59.6m against prior year gains of £112.1m.
Management and administration fees were lower at £4.2m


fee accruing in the current year and the change in
allocating 80.0% of management fees to capital versus
70.0% historically.
Finance costs decreased to £0.5m from £0.6m as a result
of lower interest costs and loans. There was a reduced



March 2021: a gain of £102.4m).

ICM Investment Management Limited
and ICM Limited

20 21
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
GRUPO AEROPORTUARIO DEL PACIFICO, S.A.B. DE C.V.



IN THE YEAR TO 31 DECEMBER 2021,
REVENUES INCREASED
61.7%
AND EBITDA 87.4%
20 21
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
ORIZON VALORIZACAO DE RESIUOS S.A.
Orizon Valorizacao de Resiuos S.A. is a waste treatment




IN THE YEAR TO 31 DECEMBER 2021,
REVENUES INCREASED
11.1%
AND EBITDA 15.7%
FPT CORPORATION
FPT Corporation is the largest information technology service

provision of information and communication technology



IN THE YEAR TO 31 DECEMBER 2021,
REVENUES INCREASED
19.4%
AND EBITDA 21.2%
22 23
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
MACRO TRENDS AFFECTING OUR PORTFOLIO
URBANISATION
• 

especially for the younger population.
• 
and higher income opportunities in manufacturing and service industries.
• 

digital infrastructure.
RISE OF THE MIDDLE CLASS
• 

• Rising income and social characteristics of emerging middle-class populations results


• 


ENVIRONMENTAL POLICY
• 

• Governments and intergovernmental organisations have initiatives in place targeting
reductions in the impact of man-made emissions on climate change.
• 
radical shift away from the most polluting technologies.
• 

COVID-19 DISRUPTION
• 
• There were several leading indicators that suggested a heightened risk of recession
prior to Covid-19.
• 

22 23
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
GEOPOLITICS AND GLOBALISATION
• Increased political tensions and populism is leading to a rising level of nationalism and

• 

• 

• 
transport and logistics value chains and associated infrastructure.
GOVERNANCE AND TRANSPARENCY
• 

• 
attractive for investment and constant monitoring for any changes to these is
necessary.
• Regulation of concessions – critical in the infrastructure sectors – is dependent on a

DIGITALISATION
• 


• 

• 

• 

“smart cities”.
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Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
OUR INVESTMENT APPROACH
ICM is a long-term investor and typically operates focused
portfolios with narrow investment remits. ICM has several
dedicated research teams who have deep knowledge and


 






does not participate in either an IPO or an auction unless
there is compelling value.


industries within the EM sector. New investments usually



the investment process ICM will look to understand the
material ESG factors.
Long Term Deep Value Cash Generative
Bottom Up Approach Investee Relationships
Detailed Company Knowledge Sector Focused
SUPERIOR, CONSISTENT PERFORMANCE
DEEP SECTOR KNOWLEDGE
INDEPENDENCE & INTEGRITY
STABLE & SUPPORTIVE FRAMEWORK
We seek out and make compelling investments
01
UNDERSTANDING
In-depth analysis of the key issues that

well as a deep understanding of the
industry in which they operate.
02
INTEGRATION
Incorporate the output of the


ensure a clear and complete picture of

03
ENGAGEMENT
Engage with investee companies on



gaps in their ESG policy to further
develop and improve their ESG
disclosure and implementation.
ACTIVE
INVESTORS
ICM incorporates ESG factors into the investment process in three key ways:
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Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
ICM works to create
value by harnessing
our experience and
expertise to generate
and grow strong
relationships with
our stakeholders
VALUES


•  
•  
TEAM
We are proud of our diverse and inclusive environment for

communities.
COMMUNITIES



communities. Over the past decade ICM and its


We are focused
on creating
sustainable
long-term
value for our
shareholders,
team and
the broader
community
through our:
PLATFORMS

investment platforms to deliver growth for our
shareholders.
INVESTMENT PRACTICES


markets we invest in moderates our risk and
creates value for our investors. Our status as
a signatory of the United Nations-supported

our commitment to integrating ESG factors into
our investment decision making process.
FINANCIAL


growth and shareholder value.
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Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
Largest railway operator in Brazil,

approximately 13,500 km of lines
and 1,200 locomotives.
ESG ANALYSIS:
Rumo continues to take steps to improve its ESG
transparency and enhance its environmental footprint.
Rumo has set goals to reduce greenhouse gas


2025.
Socially Rumo has improved its safety performance
and has made steps to improve its commitments
to community initiatives and social development.



ICM ESG CONCLUSION:
Pressure continues to focus on improving the
corporate governance of Rumo. Improving emissions
and social policy means Rumo is moving toward a
positive direction on its ESG journey.
A leading e-government service
provider in Malaysia, allowing
citizens to apply, renew and pay

mandatory insurance etc. online.
ESG ANALYSIS:


improved its disclosure in recent years. It has
particularly focussed on reducing its environmental

and CO2 emissions in the past two years. Electricity
consumption in FY21 was also 16.4% lower than in
FY20.
ICM ESG CONCLUSION:



ESG SPOTLIGHT

investments and has asked the Investment Managers to take these into account when investing. Details of how




26 27
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
LARGEST HOLDINGS OVERVIEW
THE VALUE OF THE TEN
LARGEST HOLDINGS
REPRESENTS
31.0%
(2021: 31.3%) OF
TOTAL INVESTMENTS
THE VALUE OF THE
TWENTY LARGEST
HOLDINGS REPRESENTS
50.3%
(2021: 50.4%) OF
TOTAL INVESTMENTS
THE VALUE OF THE
THIRTY LARGEST
HOLDINGS REPRESENTS
65.6%
(2021: 65.9%) OF
TOTAL INVESTMENTS
THE TOTAL NUMBER
OF COMPANIES
INCLUDED IN THE
PORTFOLIO IS
79
(2021: 88)

Ocean Wilsons Holdings Limited (Brazil)
28 29
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
INTERNATIONAL CONTAINER TERMINAL SERVICES, INC. (“ICT”)

and operating container ports and terminals worldwide. ICT operates 34






management implemented during 2020 were also maintained during 2021


management paid out the proportion of 2020 dividend that was retained in the
prior year (in light of the Covid-19 operating environment) and an additional



Country The Philippines
Sector Ports and
Logistics
Fair Value £’000s 
% of total
investments
4.6%
1
ALUPAR INVESTIMENTO S.A. (“ALUPAR”) is a holding company for energy



energy generation projects.


commissioning a new 94MW hydro plant in Peru. The transmission lines

linked concessions and 37.1% for IGPM-linked concessions applied in 2021.

to deliver underlying group revenues and EBITDA growth of 33.9% and 45.1%



Country Brazil
Sector Electricity
Fair Value £’000s 
% of total
investments
3.7%
2
TEN LARGEST HOLDINGS REVIEW
28 29
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
INDIA GRID TRUST (“INDIGRID”) is an infrastructure investment trust listed on


average of 30 years remaining contract life.










Country India
Sector Electricity
Fair Value £’000s 
% of total
investments
3.2%
3
PETALITE 
past eight years Petalite has researched and developed an innovative electric










Petalite is in commercial discussions with several large companies and in


March 2022.
Country UK
Sector 
Fair Value £’000s 
% of total
investments
3.1%
4
30 31
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
GUJARAT STATE PETRONET LIMITED (“GSPL”) is the main gas transmission











declined 4.6%. DPS relating to March 2021 year end was unchanged on the
prior year.


5
SIMPAR S.A. (“SIMPAR”) is a Brazilian holding company that controls seven
independent companies that concentrate primarily on logistics services whilst








strong performance with its full year results reporting net revenues up 41.4%


position unchanged during the period.
6
Country India
Sector Gas
Fair Value £’000s 
% of total
investments
3.0%
Country Brazil
Sector Ports and
Logistics
Fair Value £’000s 
% of total
investments
2.9%
TEN LARGEST HOLDINGS REVIEW (continued)
30 31
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
MY E.G. SERVICES BERHAD (“MyEG”) is a Malaysian provider of e-government








longevity of these services is uncertain.








dividend reinvestment programme.
7
Country Malaysia
Sector Data Services
and Digital
Infrastructure
Fair Value £’000s 
% of total
investments
2.9%
OCEAN WILSONS HOLDINGS LIMITED (“OCEAN WILSONS”) operates one of

and holds a portfolio of investments via Ocean Wilsons Investment Limited

2021 was a year of recovery for Ocean Wilsons with OWIL driving the



containers resulting in container terminals volumes for the twelve months







8
Country Brazil
Sector Ports and
Logistics
Fair Value £’000s 
% of total
investments
2.8%
32 33
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
RUMO S.A. (“RUMO”) 



2021 was another challenging year for Rumo with the corn crop failure in the
second half resulting in Rumo following a strategy of gaining market share to










9
FPT CORPORATION (“FPT”) is a Vietnamese telecommunications and
technology company. FPT provides information technology ("IT") services




colleges and university.





was awarded a USD 40m+ project with the Singaporean Government during
the year and 128 customers signed contracts of over USD 1.0m. The domestic









10
Country Brazil
Sector Road and Rail
Fair Value £’000s 
% of total
investments
2.5%
Country Vietnam
Sector Data Services
and Digital
Infrastructure
Fair Value £’000s 
% of total
investments
2.3%
TEN LARGEST HOLDINGS REVIEW (continued)
32 33
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
STRATEGIC REPORT
PRINCIPAL ACTIVITY

principal activity is portfolio investment.
INVESTMENT OBJECTIVE




STRATEGY AND BUSINESS MODEL


to shareholders for the long-term success of the
Company. Since the Company has no employees
it outsources its activities to third party service

investment managers to deliver investment
performance. The Board oversees and monitors the
activities of the service providers with the Board

with investment limits.


(“FCA”) as an alternative investment fund manager







for the decisions relating to the day to day running of


of the Company. Other service providers include

34 35
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022



and Computershare Investor Services which acts as

Secretary.
INVESTMENT POLICY




with essential service or monopolistic characteristics
and any new infrastructure or utilities which may
arise mainly in emerging markets. The Company may


related sectors.
The Company focuses on the under-developed and


markets worldwide. The Company generally seeks
to invest in emerging market countries where the



attitude to foreign investment.



unlisted securities.
The Company may also use derivative instruments






portfolio and Statement of Financial Position from

eliminating investment risks in its investments. These

INVESTMENT RESTRICTIONS


investment unless otherwise stated:
• 


• 

• 


• 
50.0% of gross assets at the time of investment (and


relevant investee company reports that it carries out


• Not more than 10.0% in aggregate of the value
of the total assets of the Company at the time

closed-ended investment funds which are listed

investment funds have stated investment policies
to invest no more than 15.0% of their total assets in
other investment companies which are listed on the

• Regardless of the investment policy of other closed-


Company shall not invest in such funds more than
15.0% in aggregate of the value of the total assets of
the Company at the time the investment is made.




decreases in the valuation of the particular assets



complied with.
BORROWING AND GEARING POLICY



investment purposes.
STRATEGIC REPORT (continued)
34 35
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022




currency for which there are corresponding assets
within the portfolio (at the time of drawdown the value

in the portfolio).
The Company has a £50.0m committed multicurrency

Branch until 15 March 2024. Further details on the

accounts.
INVESTMENT APPROACH
UEM seeks to identify and invest in undervalued
investments predominantly in the infrastructure and

aim to identify securities where underlying value and






in companies and sectors displaying the characteristics





generally seeks to invest in companies with strong
management who have the potential to grow their




while at the same time maintaining an active
and constructive shareholder approach through


contact with the investee companies and UEM is often
among the largest international shareholders.


securities and investing through instruments
appropriate to the particular situation. UEM is prepared
to hold investments in unlisted securities when the





analysis of the fundamentals of investee companies

with any particular stock. The portfolio is typically
made up of 60 to 90 stocks.
RESULTS AND DIVIDENDS


year ended 31 March 2022 are set out in the attached


four interim dividends.
DIVIDEND POLICY




the Board will take account of factors such as


in order to maintain its approval as an investment



to pay dividends from capital reserves and special
reserve.
KEY PERFORMANCE INDICATORS
Delivery of shareholder value is achieved through the



Indicators (“KPIs”) that include the following:
• NAV total return relative to the MSCI EM total return

• Share price
• Discount to NAV
• Revenue earnings
• 
36 37
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
While some elements of performance against KPIs are





the European Securities and Markets Authority and

calculated is set out on pages 99 and 100.
Year ended 31 March 2022 2021
NAV total return per share (%) 14.9 30.2

(GBP adjusted) (%) (6.9) 42.3
Share price (pence) 224.00 197.50
Discount to NAV (%) (11.9) (13.6)


capital) (%) 3.0 2.9
Revenue earnings per share (pence) 8.17 8.13
Ongoing charges figure (%) 1.4 1.1*
*excluding performance fee
A graph showing the NAV total return performance

found on page 4. The ten-year record on page 101
shows historic data for the Company and its

Discount to NAV: The Board monitors the premium/


shares traded at a discount relative to NAV in a range
of 9.0% to 14.2% and an average discount of 12.1%.
The Board and Investment Managers closely monitor



the discount over the long term is to continue to
generate good performance and to create natural


its philosophy and management style. The Board

Company. The Board continues to seek authority from

assist in the management of the discount and/or any
premium at which the shares trade to their NAV. A total


opening issued share capital.
Earnings and dividends per share: As referred to

maintain or increase the total annual dividend. The
Board and the Investment Managers attach great
importance to maintaining dividends per share since
dividends form a key component of the total return to
shareholders.




2022. The total dividend for the year was 8.00p per
share (2021: 7.775p per share).
Ongoing charges: These are calculated in accordance
with the industry measure of costs as a percentage


costs incurred and their impact on performance. The



from 1 April 2021). This ratio is sensitive to the size of

PRINCIPAL RISKS AND RISK MITIGATION







the principal risks facing the Company. It seeks to





During the year the Audit & Risk Committee also



STRATEGIC REPORT (continued)
36 37
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
climate change risk. The Audit & Risk Committee has


are considered within investment risk and market


worldwide and this was also taken into account as part
of the assessment of risks to the Company.

the Company and the controls and actions to mitigate


KEY RISK FACTORS
INVESTMENT
RISK:
The risk that the investment strategy
does not achieve long-term positive
total returns for the Company’s
shareholders.
The Board monitors the performance of the Company and has





relevant countries with stock selection. Fundamental analysis




selecting and retaining investments and political risks associated
with investing in EM are also assessed. The Investment Managers



fund management approach and the Board monitors the
implementation and results of the investment process with the
Investment Managers.
MARKET RISK: The Company’s assets consist mainly
of listed securities and its principal
risks are therefore market related and
adverse market conditions could lead
to a fall in NAV.

foreign currency risk. Adverse market conditions may result from




of gearing and has set investment restrictions and guidelines

Managers.

majority of its assets are priced in foreign currencies and


the control of the Board and the Investment Managers and may
give rise to distortions in the reported returns to shareholders. It

KEY STAFF RISK: Loss by the Investment Managers
of key staff could affect investment
returns.

factor in delivering good performance. There are training
and development programs in place for employees and the

key staff. Any material changes to the management team are

succession planning with the Investment Managers at regular
intervals.
38 39
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
DISCOUNT RISK: The Company’s shares may trade at a
discount to their NAV and a widening
discount may undermine investor
confidence in the Company.

to their NAV and the premium/discount at which they trade.


of 10% and the Investment Managers agree that it is a good
investment decision.
OPERATIONAL
RISK:
Failure by any service provider to carry
out its obligations to the Company
in accordance with the terms of its
appointment could have a materially
detrimental impact on the operation
of the Company and could affect the
ability of the Company to successfully
pursue its investment policy.

The Audit & Risk Committee monitors the performance and

providers at regular intervals.
All listed and most unlisted investments are held in custody for








technology services.
The Board reviews the overall performance of the Investment



Managers and other service providers on the preventative steps
that they are taking to reduce this risk.
GEARING RISK: Whilst the use of borrowings should
enhance total return where the
return on the Company’s underlying
securities is rising and exceeds the
cost of borrowing, it will have the
opposite effect where the underlying
return is falling.
Gearing levels may change from time to time in accordance with



when each drawdown is made and at the end of each month.

each Board meeting.
REGULATORY
RISK:
Failure to comply with applicable
legal and regulatory requirements
such as the tax rules for investment
companies, the FCA’s Listing Rules and
the Companies Act 2006 could lead to
suspension of the Company’s Stock
Exchange listing, financial penalties, a
qualified audit report or the Company
being subject to tax on capital gains.

advisers monitor developments in relevant laws and regulations
and provide regular reports to the Board in respect of the

VIABILITY STATEMENT
The Board makes an assessment of the longer-term



the principal risks it faces. The Company is a long-term


long-term horizon. For the purposes of assessing the





strategy of the Company.





STRATEGIC REPORT (continued)
38 39
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022

outsourced to third party providers and it is considered

short notice if necessary. The Directors have also






continues to consider the uncertainty surrounding the




of the Company.
As part of this assessment the Board considered a


impact of severe stock market and currency volatility


material reduction in the value of its investments in





further fall in the market values of its investments. The






years.
SECTION 172 STATEMENT

Directors have a duty to promote the success of

whole. This includes having regard (amongst other

stakeholders and maintaining a reputation for high







providers and maintain a reputation for high standards




promotion of the success of the Company for the




assets in order to achieve its stated investment

relationship with them. Whilst strong long term

recognises that to provide an investment vehicle that

Investment Managers must have regard to ethical and

ESG considerations are an important part of the


The Board seeks to engage with its Investment



evaluation conducted. The aim of this approach is to
enhance service levels and strengthen relationships






shareholder relations is summarised in the Corporate
Governance Statement on pages 52 to 56. As part of

Investment Managers to present to shareholders on
the performance of UEM and its future prospects.
It also allows shareholders the opportunity to meet
with the Board and Investment Managers and to


and the Investment Managers meet regularly with


40 41
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
may also communicate with the Company at any time


communication opportunities help inform the Board


the long term.




• the appointment to the Board of two new

independent recruitment consultancy to conduct a

• 

in normal market conditions if they are trading at a

• the recommendation that shareholders vote in


• the recommendation that shareholders vote in

authorities as set out in the notice of AGM.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
POLICY

interests to consider ESG factors when selecting and

Managers to take these into account when investing.

a core component of the investment process and the
Investment Managers employ a disciplined investment




to understand the relevant ESG issues in conjunction


ESG framework due to lack of appropriate coverage



of ESG issues forms part of the integrated research



governance within a company ensures that minority
shareholder interests are aligned with other







then apply an aggregated weighting towards “G” in

corporate governance and performance.
The “E” and “S” are also focal points for the Investment


model. The Investment Managers identify the most

each sector and companies are then assessed against
each risk. The results from this analysis feed into an




to manage such risk.
Where a portfolio company is assessed as having a

is to engage with the company to see improvements
over time. ESG considerations provide a way to identify
and review the long-term drivers of an investment that




portfolio companies are set out on page 26.

visit companies to access an in-person opportunity
to ask management teams what they perceive to




or consistently disclosed. The Investment Managers

STRATEGIC REPORT (continued)
40 41
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022



understanding of any challenges and opportunities.
Given the Investment Managers are long term

will remain paramount to the investment approach.

Managers work actively with investee companies to
incorporate stronger ESG principles and vote in a
considered manner (including against resolutions)


are fundamental to an investment.
ICM is a signatory to the United Nations-supported

international network of investors working together


Association which is focused on the implementation of



with its philosophy to protect and increase the value of
its investments.
MODERN SLAVERY ACT










GENDER DIVERSITY
The Board consists of four male directors and two
female directors. The Company has no employees
and therefore there is nothing further to report in
respect of gender representation within the Company.

Corporate Governance Statement on page 55.
GREENHOUSE GAS EMISSIONS AND STREAMLINED
ENERGY AND CARBON REPORTING ("SECR")

parties. The Company therefore has no greenhouse gas




BRIBERY ACT
The Company has a zero-tolerance policy towards


also adopt a zero-tolerance approach and have policies

CRIMINAL FINANCES ACT
The Company has a commitment to zero tolerance

SOCIAL, HUMAN RIGHTS AND COMMUNITY MATTERS

Company does not have any employees or maintain any

the environment or any particular community and the

social or community policies. The Board however notes


OUTLOOK


return and the future of the Company is dependent
upon the success of its investment strategy. The

Statement and the main trends and factors likely to





By order of the Board
ICM Investment Management Limited
Company Secretary

42 43
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
INVESTMENT MANAGERS AND TEAM








long-term value. Their investment approach is to have

of each investment and its environment versus its
intrinsic value. The Investment Managers are long

assets.
ICM MANAGES OVER
USD 2.6bn
IN FUNDS DIRECTLY AND IS RESPONSIBLE INDIRECTLY FOR A FURTHER USD 24.0BN OF ASSETS IN SUBSIDIARY


CHARLES JILLINGS






Limited.
DUNCAN SAVILLE





Group Limited and Allectus Capital Limited.

42 43
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
SENIOR CORE TEAM ASSISTING ON UEM INCLUDE:
COMPANY SECRETARY – ICM INVESTMENT MANAGEMENT LIMITED
The Investment Managers’ approach is to
have a deep understanding of the business
fundamentals of each investment and its
environment versus its intrinsic value.
Jacqueline Broers



accountant.
Alastair Moreton



Jonathan Groocock

on emerging markets. Prior to joining the investment team Mr Groocock had nine years of


Mark Lebbell
was involved with Utilico Investment Trust plc and The Special Utilities Investment Trust PLC since


44 45
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
DIRECTORS
JOHN RENNOCKS (CHAIRMAN)*






Fellow of the Institute of Chartered Accountants of England and Wales.
MARK BRIDGEMAN*
Mark Bridgeman joined the Board in 2021. 




SUSAN HANSEN
Susan Hansen joined the Board in 2013. She is a chartered accountant and MBA graduate and has





44 45
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
ISABEL LIU*








ANTHONY MUH*
Anthony Muh joined the Board in 2010 and has indicated his intention to retire from the Board





of the Asia Corporate Governance Association.
ERIC STOBART*






is a chartered accountant with an MBA from London Business School.
46 47
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
The Directors present the Annual Report and Accounts
of the Company for the year ended 31 March 2022.
STATUS OF THE COMPANY




Bermuda for shares in the Company on a one for one


Bermuda were transferred to the Company and UEM


the Financial Conduct Authority and traded on the main



investment trust in accordance with sections 1158 and


The Directors are of the opinion that the Company has

conditions for continued approval.
UEM is domiciled in the UK as an investment company
within the meaning of section 833 of the Companies Act
2006. It is not a close company and has no employees.

THE ALTERNATIVE INVESTMENT FUND MANAGERS
DIRECTIVE (“AIFMD”)
The Company is an Alternative Investment Fund





jointly to provide portfolio management services.



disclosed in the annual report of each AIF. An Investor





www.uemtrust.co.uk.


oversight over the issue and cancellation of the





FUND MANAGEMENT ARRANGEMENTS
In accordance with the Investment Management






replaced the previous arrangement which comprised a
management fee of 0.65% per annum of NAV together
with a performance related fee. The management fee is




ICMIM and ICM are disclosed in note 4 to the accounts.

Secretary.
The Board continually reviews the policies and
performance of the Investment Managers. The

approach are that the portfolio should consist of shares
considered attractive irrespective of their inclusion or




of sharp underperformance or outperformance





ICMIM and ICM on the terms agreed is in the interests
of shareholders as a whole.

46 47
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
ADMINISTRATION
The provision of accounting and administration services

London Branch (the “Administrator”). The Administrator








to provide certain support services (including middle

support services). Waverton is entitled to receive an


incurred in relation to this agreement.


the Company and assesses the services provided.
SAFE CUSTODY OF ASSETS

most unlisted investments were held in custody for

Branch (the “Custodian”). Operational matters with the

ICMIM and the Administrator in accordance with the
IMA and the Administration Agreement. The Custodian

trades transacted and the location of the securities


FINANCIAL INSTRUMENTS



its operations such as sales and purchases awaiting



to risk are disclosed in note 26 to the accounts.
DIVIDENDS
Dividends of 2.00p per share were paid on 24

2022. A dividend of 2.00p per share was declared on

ISA AND NMPI

Individual Savings Account (ISA) regulations and it
is the intention of the Board to continue to satisfy




mainstream pooled investments and intends to

GOING CONCERN




within a short timescale. The Board has considered
the impact of Covid-19 and performed a detailed



which considered the impact of severe stock market
and currency volatility. This is set out in note 25 to

material uncertainties related to events or conditions








the accounts.
DIRECTORS

directors who oversee and monitor the activities of
the Investment Managers and other service providers







48 49
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022


relevant to the direction and control of the Company.

are shown on pages 44 and 45. All the Directors
are independent other than Ms Hansen who is also

associated with the Investment Managers.
All appointments to the Board and re-elections of
Directors are carried out in accordance with the


provide that all the Directors retire each year. The



DIRECTORS’ INDEMNITY AND INSURANCE


Directors under which the Company has agreed to


carrying out his/her role as a Director of the Company.

defending any criminal or civil proceedings or any claim

provided that where the defence is unsuccessful the
Director must repay those defence costs to the Company.

provisions for the purposes of the Companies Act 2006.

insurance which provides appropriate cover for any legal

DIRECTORS’ INTERESTS


Report on page 59.

any contract or arrangement with the Company at any
time during the year or at the year end. There are no








the Company Secretary and/or Chairman as soon as

SHARE CAPITAL
As at 31 March 2022 the issued share capital of the



shares. There are no restrictions on the transfer of
securities in the Company and there are no special
rights attached to any of the shares.
SHARE ISSUES AND REPURCHASES
UEM has the authority to purchase shares in the

issue new shares for cash. During the year ended

shares for cancellation. The current authority to
repurchase shares was granted to Directors on 21





renewed at the forthcoming AGM.
TENDER FACILITY



in circumstances where the annual compound










Bermuda.
(continued)
48 49
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
CONTINUATION OF THE COMPANY




AGM held in 2021 and shareholders will therefore have
further opportunities to vote on the continuation of the

SUBSTANTIAL SHARE INTERESTS


Number of
shares held % held
UIL Limited  15.0
City of London Investment
Management Company Limited  12.5
Lazard Asset Management LLC  8.9

Management Limited  5.1
Investec Wealth & Investment
Limited  4.9
THE COMMON REPORTING STANDARD

Economic Co-operation and Development) Common

Financial Account Information (the “Common Reporting











information.



this information.
AUDIT INFORMATION AND AUDITOR





has taken all the steps that they ought to have taken as
a Director to make themselves aware of any relevant

auditor is aware of that information.
LISTING RULE 9.8.4R

to make disclosures in respect of Listing Rule 9.8.4R

accounts).
ARTICLES OF ASSOCIATION


ANNUAL GENERAL MEETING






Services and Markets Act 2000 (as amended).
If you have sold or transferred all of your shares in the

with any other accompanying documents including the



transmission to the purchaser or transferee.



proposed as special resolutions.
Ordinary Resolution 1 – Annual Report and
Financial Statements
This resolution seeks shareholder approval to receive


thereon.
50 51
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
Ordinary Resolution 2 – Approval of the Directors’
Remuneration Policy




of not more than three years.
Ordinary Resolution 3 – Approval of the Directors’
Remuneration Report

Remuneration Report.
Ordinary Resolution 4 – Approval of the Company’s
dividend policy
This resolution seeks shareholder approval of the



payment of interim dividends without the need for


relating to the payment of interim dividends without


approval from shareholders of its dividend policy to pay
four interim dividends per year. If this resolution is not

authorising any further interim dividends until such

its shareholders.
Ordinary Resolutions 5 to 9 (inclusive) – Election
and re-election of the Directors


reference.
Resolution 5 relates to the election of Mr Mark


management industry and with other investment

investment matters to his role on the Board.
Resolution 6



Director.
Resolution 7



and investment companies. His focus is on long-

discussion.
Resolution 8 relates to the re-election of Ms Susan



constructively challenge the Investment Managers.
Resolution 9 relates to the re-election of Mr Eric





Chairman.
Ordinary Resolutions 10 and 11 – Appointment
of the external Auditor and the Auditor’s
Remuneration
These resolutions relate to the appointment and




independent. Further information in relation to the


(continued)
50 51
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Resolutions relating to the following items of special

Ordinary Resolution 12 – Authority to allot shares
The Directors may only allot shares for cash if

meeting. This resolution seeks authority for the
Directors to allot shares for cash up to an aggregate
 





held in 2023 unless renewed prior to that date at an
earlier general meeting.
Special Resolution 13 – Authority to disapply pre-
emption rights




holdings. This resolution empowers the Directors




 ordinary shares of 1p each and represents



made at prices greater than NAV and would therefore
increase the assets underlying each share. This


prior to that date at an earlier general meeting.
Special Resolution 14 – Authority to buy back shares
This resolution seeks to renew the authority granted

shares. The Directors will only consider repurchasing




The Directors are seeking authority to purchase up


shares as at the date of the Notice of the AGM). This



Any shares purchased pursuant to this resolution


dealt with as treasury shares in accordance with the
provisions of the Companies Act 2006.
RECOMMENDATION

proposed at the AGM is likely to promote the success


its shareholders as a whole. The Directors unanimously
recommend that shareholders vote in favour of all the
resolutions as they intend to do in respect of their own

By order of the Board
ICM Investment Management Limited, Secretary

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Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
THE COMPANY‘S CORPORATE GOVERNANCE
FRAMEWORK








for good governance lies with the Board. The Board

integral part of the way it manages the Company and




time employees and outsources its activities to third
party service providers.
CORPORATE GOVERNANCE STATEMENT
Six non-executive directors (NEDs)
CHAIRMAN: John Rennocks
SENIOR INDEPENDENT DIRECTOR: Mark Bridgeman
AUDIT & RISK
COMMITTEE
MANAGEMENT
ENGAGEMENT
COMMITTEE
NOMINATION
COMMITTEE
REMUNERATION
COMMITTEE
All independent NEDs
CHAIRMAN:
Eric Stobart
KEY OBJECTIVE:
• to oversee the

control environment.
All independent NEDs
CHAIRMAN:
John Rennocks
KEY OBJECTIVES:
• to review the
performance of
the Investment
Managers and the

• to review the
performance of other
service providers.
The Board as a whole
performs this function
KEY OBJECTIVES:
• to regularly review


• to consider any new
appointments.
All independent NEDs
CHAIRMAN:
Mark Bridgeman
KEY OBJECTIVE:
• to set the
remuneration policy
for the Directors of
the Company.
THE BOARD
KEY OBJECTIVES:
• 

• to provide leadership within
a framework of prudent



• to constructively challenge
and scrutinise performance
of all outsourced activities.
52 53
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
THE AIC CODE OF CORPORATE GOVERNANCE


Corporate Governance Code (the “UK Code”) issued


have special circumstances which have an impact
on their governance arrangements. An investment
company typically has no employees and the roles of


third party. The AIC has therefore drawn up its own
set of guidelines known as the AIC Code of Corporate

which recognises the nature of investment companies

and the review of management and other third party
contracts. The FRC has endorsed the AIC Code and




principles and recommendations of the AIC Code will




www.theaic.co.uk.
COMPLIANCE WITH THE AIC CODE

complied with the recommendations of the AIC Code

those relating to:
• 
• 
• the need for an internal audit function
• 
Chairman of the Board
For the reasons set out in the AIC Code and as

provisions are not relevant to the position of the




Code.
Information on how the Company has applied the
principles of the AIC Code and the UK Code is set out

THE BOARD

overall stewardship of the Company. A formal schedule
of matters reserved for the decision of the Board has







timely access to relevant information.



Key representatives of the Investment Managers

there is regular contact with the Investment Managers.
Board meetings are sometimes held in countries
where the Company holds investments and the Board

The Board has direct access to the advice and




and Committee procedures are followed and that


Board for ensuring timely delivery of information

the Company are met. The company secretary is





Chairman.
54 55
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022



discharge their duties.


Committee meeting and one Remuneration Committee
meeting held during the year ended 31 March 2022 and

Board
Audit & Risk
Committee
Management
Engagement
Committee
Remuneration
Committee
 4 3 1 1
 4 3 1 1
 2/2 2/2 0/0 0/0
Susan Hansen 4 n/a n/a n/a
 1/1 1/1 0/0 0/0
 2/2 1/1 1 1
Anthony Muh 4 3 1 1
 4 3 1 1



other ad hoc items.
AUDIT & RISK COMMITTEE
The Audit & Risk Committee comprises all the
independent Directors of the Company and is chaired

Committee are provided in its report starting on
page 60.
MANAGEMENT ENGAGEMENT COMMITTEE


independent Directors of the Company and meets at
least once a year.



The Board received detailed reports and views from




in the intervening period.
The Management Engagement Committee also


Administrator and the performance of other third
party service providers. In this regard the Committee



REMUNERATION COMMITTEE


Directors of the Company. Further details are provided

INTERNAL CONTROLS

for ensuring that the Company maintains a sound




to manage rather than eliminate risk of failure to


or investment limits. The system can therefore only

against material misstatement or loss.

Custodian maintain their own systems of internal
CORPORATE GOVERNANCE STATEMENT (continued)
54 55
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
controls and the Board and the Audit & Risk
Committee receive regular reports from these service
providers.











occurred during the year ended 31 March 2022 or

BOARD DIVERSITY, APPOINTMENT, RE-ELECTION
AND TENURE


committee. It considers the size and structure of the




Board as a whole at least annually. The Board also





the recruitment process. Any new appointment is









currently consists of four men and two woman. As

has indicated his intention to retire from the Board


The Board is of the view that length of service does
not necessarily compromise the independence or




No limit on the overall length of service of any of the


The Board reviews succession planning at least



and other relevant selection criteria and the methods



prior to formal appointment. An induction process


processes of the Company and the management of the

the company secretary and other appropriate


BOARD, COMMITTEE AND DIRECTORS’
PERFORMANCE APPRAISAL
The Directors recognise the importance of the AIC

56 57
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022



including:
• 
• 
• 



• 


The Board opted to conduct performance evaluation



the Chairman reviewing individually with each of



Independent Director reviews the performance of

account the views of the Investment Managers. The
relevant points arising from these meetings are then





of the Board and the Directors individually were all
assessed to have performed satisfactorily. No follow-

It is not felt appropriate currently to employ the




RELATIONS WITH SHAREHOLDERS
UEM welcomes the views of shareholders and
places great importance on communication with
shareholders. All shareholders have the opportunity









communicates with shareholders is through the

provide shareholders with a full understanding of the












and to listen to shareholder views in order to help
develop an understanding of their issues and
concerns. General presentations to institutional


Managers and institutional and other shareholders



and shareholders may communicate with the Company


By order of the Board
ICM Investment Management Limited
Company Secretary

CORPORATE GOVERNANCE STATEMENT (continued)
56 57
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022

STATEMENT OF THE
CHAIRMAN
As Chairman of the

I am pleased to present the

to shareholders. The report
comprises a remuneration









parts of the disclosures provided. Where disclosures


page 64.

reviewing and making recommendations to the Board in


remuneration policy and the individual remuneration of

and in comparison with other companies of a similar


consideration. Following recommendations from the


were no changes to the remuneration policy during the
year.
All the Directors invest the full amount of their fees

respect of the year ending 31 March 2023 has resulted


Year ending 31 March
2023
£’000s
2022*
£’000s
Chairman 50.0 47.6
Chairman of the Audit & Risk Committee 46.7 44.5
Directors 37.0 35.2
*Actual
DIRECTORS’ REMUNERATION POLICY


at least annually. The Board determines the level of



per annum.







chairman of the Audit & Risk Committee are taken into







of their duties and attendance at Board and general
meetings and Committee meetings. Directors are not


Directors are provided with a letter of appointment
when they join the Board. There is no provision for
compensation upon early termination of appointment.


VOTING AT ANNUAL GENERAL MEETING
A resolution to approve the Remuneration Report was
put to shareholders at the AGM of the Company held on


to shareholders again this year. In accordance with the

shareholder approval for its remuneration policy on a



against. A resolution to approve the remuneration policy

MARK BRIDGEMAN
Chairman of the
Remuneration Committee
58 59
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
Director
2021/22
Shares
purchased
(1)
2021/22
Entitlement
£
(2)
2021/22
Taxable
benefits
£
(3)
2021/22
Total
£
2020/21
Shares
purchased
(1)
2020/21
Entitlement
£
(2)
2020/21


£
(3)
2020/21
Total
£

(Chairman) 11,855 47,600 – 47,600   – 
Mark Bridgeman
(4)
5,200 18,548 413 18,961
Susan Hansen 15,721 35,200 850 36,050   850 

(5)
4,129 12,681 18 12,699
Garth Milne
(6)
4,050 16,697 – 16,697   – 
Anthony Muh 15,721 35,200 850 36,050   850 
 10,841 44,500 – 44,500   – 
Totals 67,517 210,426 2,131 212,557    
(1)

to the accounts
(2)

(3)

(4)

(5)

(6)

(7)


DIRECTORS’ ANNUAL REPORT ON REMUNERATION (AUDITED)


RELATIVE IMPORTANCE OF SPEND ON PAY


shareholders relating to the year ended 31 March
2022 and the prior year. Although this disclosure is




performance as an investment company with an

total return.
Year ended 31 March
2022
£’000s
2021
£’000s
Change
£’000s

emoluments 210 191 19
Aggregate dividends   109
   
ANNUAL PERCENTAGE CHANGE IN DIRECTORS’
REMUNERATION


previous year.
Year ended 31 March
2022
Fees
%
2022
Taxable
expenses
%
2021
Fees
%
2021
Taxable
expenses
%
 3.5 n/a 0.0 n/a
Mark Bridgeman n/a n/a n/a n/a
Susan Hansen 3.5 0.0 0.0 (2.9)
 n/a n/a n/a n/a
Garth Milne 3.5 n/a 0.0 n/a
Anthony Muh 3.5 0.0 0.0 (2.9)
 3.5 n/a 0.0 n/a
(continued)
58 59
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
TOTAL RETURN COMPARATIVE PERFORMANCE
from 31 March 2012 to 31 March 2022
Source: ICM and BloombergRebased to 100 as at 31 March 2012
MSCI EM total return Index (GBP adjusted)
UEM ordinary share price total return adjusted
for the exercise of subscription shares
Mar 22Mar 21Mar 20Mar 19Mar 18Mar 17Mar 16Mar 15Mar 14Mar 13Mar 12
0
50
100
150
200
250
DIRECTORS’ BENEFICIAL SHARE INTERESTS (AUDITED)


As at 31 March
17 June
2022
31 March
2022
31 March
2021

(1)
  
Mark Bridgeman   n/a
Susan Hansen   
   n/a
Anthony Muh   

(2)
  
(1)

(2)

COMPANY PERFORMANCE



all dividends are reinvested and adjusted for the




markets.

Mark Bridgeman
Chairman of the Remuneration Committee

60 61
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
As Chairman of the Audit & Risk


to shareholders for the year
ended 31 March 2022.
ROLE AND RESPONSIBILITIES

separately chaired Audit &
Risk Committee whose duties
include considering and
recommending to the Board
for approval the contents of

providing an opinion as to whether the annual report











systems and standards.
The Audit & Risk Committee meets at least three times
a year. Two of the planned meetings are held prior to
the Board meetings to approve the half yearly and
annual results. Representatives of the Investment
Managers attend all meetings.
COMPOSITION

Committee consisted of all the independent Directors
of the Company. It is considered that there is a range of






Audit & Risk Committee considers it appropriate that

RESPONSIBILITIES AND REVIEW OF THE EXTERNAL
AUDIT
During the year the principal activities of the Audit &
Risk Committee included:
• considering and recommending to the Board for
approval the contents of the half yearly and annual


• 



• 


of the appropriateness of the level of audit

• reviewing and recommending to the Board for


• 


• 
and making a recommendation to the Board with


• 
control and risk management systems including
reports received on the operational controls of the


• 

• monitoring developments in accounting and



AUDITOR AND AUDIT TENURE


AUDIT & RISK COMMITTEE REPORT
ERIC STOBART, FCA
Chairman of the Audit & Risk
Committee
60 61
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
SIGNIFICANT AREA HOW ADDRESSED
Value of the level 1
investments

pricing vendors. The Audit & Risk Committee regularly reviews the portfolio. The Audit & Risk


securities.
Value of the level 3
investments

 1(c) 
Audit & Risk Committee with the Investment Managers.
The Audit & Risk Committee receives detailed information on all level 3 investments and it discusses

discusses any proposed revaluations with the Investment Managers.


auditor at least every twenty years. The Company

than for the year ending 31 March 2028. The audit

appointed the lead audit partner in 2020. The Audit
& Risk Committee has considered the independence


shareholders as independent auditor to the Company.


review of the half-yearly report as the Board considers




auditor. Non-audit fees paid to KPMG amounted to £nil
for the year ended 31 March 2022 (2021: £nil).
The partner and manager of the audit team at
KPMG presented their audit plan to the Audit & Risk


particular attention during the audit process. KPMG
reported to the Audit & Risk Committee on these


and discussed with KPMG and the Investment

report.
 in
camera
ACCOUNTING MATTERS AND SIGNIFICANT AREAS
For the year ended 31 March 2022 the accounting

the Audit & Risk Committee were as follows:



misstatements.





62 63
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
EXTERNAL AUDIT, REVIEW OF ITS EFFECTIVENESS
AND AUDITOR REAPPOINTMENT
The Audit & Risk Committee advises the Board on the






Committee and relevant personnel at the Investment


• 

• 


• 



• 


audit results and recommendations on corporate

• ethical standards including independence and


and
• 



Resolutions proposing the reappointment of KPMG as


shareholders at the forthcoming AGM.
INTERNAL CONTROLS AND RISK MANAGEMENT


for the Audit & Risk Committee. Work here was




Administrator and other service providers. These




of which are provided in the Strategic Report on pages


relation to the operational controls of the Investment


WHISTLEBLOWING POLICY
The Committee has also reviewed and accepted the





INTERNAL AUDIT



internal audit function. The Committee and the Board
have concluded that there is no current need for such


Eric Stobart
Chairman of the Audit & Risk Committee

AUDIT & RISK COMMITTEE REPORT (continued)
62 63
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022






statements in accordance with UK adopted
International Accounting Standards and the
Companies Act 2006.
Under company law the Directors must not approve





• 

• 

• 
accordance with UK adopted International
Accounting Standards and of the Companies Act

• 


• 


to do so.












of the Company and to prevent and detect fraud and
other irregularities.



Corporate Governance Statement that complies with
that law and those regulations.
In accordance with Disclosure Guidance and


using the single electronic reporting format under


ESEF format.




Legislation in the UK governing the preparation and

legislation in other jurisdictions.
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN
RESPECT OF THE ANNUAL FINANCIAL REPORT

• 



• 
a fair review of the development and performance

together with a description of the principal risks and
uncertainties that it faces.


provides the information necessary for shareholders




John Rennocks
Chairman

in respect of the Annual Report and the Financial Statements
64
1. Our opinion is unmodified
We have audited the financial statements of Utilico
Emerging Markets Trust (“the Company”) for the year
ended 31 March 2022 which comprise the Statement of
Comprehensive Income, Statement of Changes in Equity,
Statement of Financial Position, Statement of Cash
Flows and the related notes, including the accounting
policies in note 1.
In our opinion the financial statements:
— give a true and fair view of the state of the
Company’s affairs as at 31 March 2022 and of its
return for the year then ended;
— have been properly prepared in accordance with UK-
adopted international accounting standards; and
— have been prepared in accordance with the
requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (UK) (“ISAs (UK)”)
and applicable law. Our responsibilities are described
below. We believe that the audit evidence we have
obtained is a sufficient and appropriate basis for our
opinion. Our audit opinion is consistent with our report
to the Audit and Risk Committee.
We were first appointed as auditor by Directors on 7
February 2018. The period of total uninterrupted
engagement is for the four financial years ended 31
March 2022. We have fulfilled our ethical
responsibilities under, and we remain independent of
the Company in accordance with, UK ethical
requirements including the FRC Ethical Standard as
applied to listed public interest entities. No non-audit
services prohibited by that standard were provided.
Independent
auditor’s report
to the members of Utilico Emerging Markets Trust plc
Overview
Materiality:
financial
statements as a
whole
£5.7m (2021:£5.6m)
1% (2021: 1%) of total assets
Key audit matters vs 2021
Recurring risks Valuation of certain
Level 3 investments
Carrying amount of non
– derivative level 1
investments
65
2. Key audit matters: our assessment of risks of material misstatement
Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the financial statements
and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us, including those
which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the
engagement team. We summarise below the key audit matters (unchanged from 2021), in decreasing order of audit significance, in
arriving at our audit opinion above, together with our key audit procedures to address those matters and, as required for public interest
entities, our results from those procedures. These matters were addressed, and our results are based on procedures undertaken, in the
context of, and solely for the purpose of, our audit of the financial statements as a whole, and in forming our opinion thereon, and
consequently are incidental to that opinion, and we do not provide a separate opinion on these matters.
The risk Our response
Valuation of certain level 3
investments
(£48.1 million; 2021: £20.9
million)
Refer to page 61 (Audit and
Risk Committee Report),
page 74 (accounting policy)
and pages 80 and 89 to 92
(financial disclosures).
Subjective Valuation
8.4% (2021: 3.7%) of the company’s
total assets (by value) is held in
investments where no quoted market
price is available. Level 3 investments
are measured at fair value, which is
established in accordance with the
International Private Equity and
Venture Capital Valuation Guidelines
by using measurements of value such
as prices of recent orderly transactions,
milestone analysis and revenue
multiples, and valuing fund interests.
We assessed that the level of risk
associated with this matter has
increased in the year as both the
quantum of the balance, and the level
of judgement associated with certain
unobservable inputs have increased.
There is a significant risk over the
judgements and estimates inherent in
the valuation and therefore this is one
of the key areas that our audit has
focused on.
The effect of these matters is that, as
part of our risk assessment, we
determined that the valuation of
certain Level 3 investments has a high
degree of estimation uncertainty, with
a potential range of reasonable
outcomes greater than our materiality
for the financial statements as a whole.
We performed the detailed tests below rather than seeking to rely
on controls, because the nature of the balance is such that we
would expect to obtain audit evidence primarily through the
detailed procedures described:
Our procedures included:
— Historical comparisons: We assessed investment realisations
in the period, comparing actual sales proceeds to prior year
end valuations to understand the reasons for significant
variances and determine whether they are indicative of bias or
error in the company’s approach to valuations;
— Methodology choice: In the context of observed industry best
practice and the provisions of the International Private Equity
and Venture Capital Valuation Guidelines, we challenged the
appropriateness of the valuation basis selected;
— Our valuations experience: We challenged the investment
manager on key judgements affecting investee company
valuations, such as discount factors and the choice of
benchmark for revenue multiples and probability applied to
milestone scenarios. We compared key underlying financial
data inputs to external sources, investee company audited
accounts and management information as applicable. We
challenged the assumptions around sustainability of revenue
based on the plans of the investee companies and whether
these are achievable and we obtained understanding of
milestones completed during the year and compared them to
the investee company plan prepared in the prior year. We also
obtained an understanding of existing and prospective
investee company cash flows to understand whether
borrowings can be serviced or whether refinancing may be
required. Our work included consideration of events which
occurred subsequent to the year end up until the date of this
audit report;
— Comparing valuations: Where a recent transaction has been
used to value a holding, we obtained an understanding of the
circumstances surrounding the transaction and vouched the
price to supporting documentation. We also assessed whether
subsequent changes or events such as market or entity specific
factors would imply a change in value. For the valuation of
fund interests, we obtained and agreed the latest reported net
asset values from the fund managers; and
— Assessing transparency: Consideration of the appropriateness,
in accordance with relevant accounting standards, of the
disclosures in respect of certain Level 3 investments and the
effect of changing one or more inputs to reasonably possible
alternative valuation assumptions.
Our results: We found the Company’s valuation of certain Level 3
investments to be acceptable (2021: acceptable).
66
2. Key audit matters: our assessment of risks of material misstatement (continued)
The risk Our response
Carrying amount of non-derivative
Level 1 investments
(£519.9m; 2021: £534.7m)
Refer to page 61 (Audit and Risk
Committee Report), page 74
(accounting policy) and pages 80, and
91 (financial disclosures).
Low risk, high value
The Company’s portfolio of non-derivative
Level 1 investments makes up 90.5% (2021:
94.0%) of the Company’s total assets by
value and is considered to be one of the key
drivers of results. We do not consider these
investments to be at a high risk of significant
misstatement, or to be subject to a
significant level of judgement because they
comprise liquid, quoted investments.
However, due to their materiality in the
context of the financial statements as a
whole, they are considered to be one of the
areas which had the greatest effect on our
overall audit strategy and allocation of
resources in planning and completing our
audit.
We performed the detailed tests below rather than
seeking to rely on controls, because the nature of
the balance is such that detailed testing is
determined to be the most effective manner of
obtaining audit evidence.
Our procedure included
— Tests of detail: Agreed the valuation of 100% of
non-derivative Level 1 investments in the
portfolio to externally quoted prices; and
— Enquiry of custodians: All investments in non-
derivative level 1 investments were agreed to
independently received third party
confirmations from investment custodians or we
performed alternate procedures on
unconfirmed balances.
Our results:
We found the carrying amount of non-derivative
Level 1 investments to be acceptable (2021:
acceptable).
3. Our application of materiality and an overview of the
scope of our audit
Materiality for the financial statements as a whole was set at
£5.7m (2021: £5.6m), determined with reference to a
benchmark of total assets, of which it represents 1% (2021:
1%).
In line with our audit methodology, our procedures on
individual account balances and disclosures were performed
to a lower threshold, performance materiality, so as to
reduce to an acceptable level the risk that individually
immaterial misstatements in individual account balances add
up to a material amount across the financial statements as a
whole. Performance materiality was set at 75% (2021: 75%) of
materiality for the financial statements as a whole, which
equates to £4.3m (2021 : £4.2m). We applied this percentage
in our determination of performance materiality because we
did not identify any factors indicating an elevated level of
risk.
In addition, we applied materiality of £0.9m (2021: £0.9m)
and performance materiality of £0.7m (2021: £0.6m) to
investment and other income, for which we believe
misstatements of lesser amounts than materiality for the
financial statements as a whole could reasonably be expected
to influence the Company’s members’ assessment of the
financial performance of the Company.
We agreed to report to the Audit and Risk Committee any
corrected or uncorrected identified misstatements exceeding
£0.28m (2021: £0.28m) or £0.09m in relation to investment
and other income (2021: £0.09m) in addition to other
identified misstatements that warranted reporting on
qualitative grounds.
Our audit of the Company was undertaken to the materiality
and performance materiality levels specified above and was
performed by a single audit team.
The scope of the audit work performed was fully substantive
as we did not rely upon the Company’s internal control over
financial reporting.
Total Assets
£574.2m (2021: £568.3m)
Materiality
£5.7m (2021: £5.6m)
Total Assets
4. Going concern
The Directors have prepared the financial statements on the going
concern basis as they do not intend to liquidate the Company or to
cease its operations, and as they have concluded that the Company’s
financial position means that this is realistic. They have also concluded
that there are no material uncertainties that could have cast significant
doubt over its ability to continue as a going concern for at least a year
from the date of approval of the financial statements (“the going
concern period”).
£5.7m
Whole financial
statements materiality
(2021: £5.6m)
£4.3m
Performance materiality
(2021: £4.2m)
£0.9m
Investment and other
income materiality
(2021: £0.9m)
£0.28m
Misstatements reported to
the Audit and Risk
Committee (2021: £0.28m)
67
Report and Accounts for the year to 31 March 2022
4. Going concern (continued)
We used our knowledge of the Company, its industry, and
the general economic environment to identify the inherent
risks to its business model and analysed how those risks
might affect the Company’s financial resources or ability to
continue operations over the going concern period. The
risks that we considered most likely to adversely affect the
Company’s available financial resources and its ability to
operate over this period were:
— The impact of a significant reduction in the valuation of
investments and the implications for the Company’s
debt covenants;
— The liquidity of the investment portfolio and its ability
to meet the liabilities of the Company as and when they
fall due;
— The operational resilience of key service organisations;
and
We considered whether these risks could plausibly affect
the liquidity in the going concern period by assessing the
degree of downside assumption that, individually and
collectively, could result in a liquidity issue, taking into
account the Company’s liquid investment position (and the
results of their reverse stress testing).
We considered whether the going concern disclosure in
note 1 and note 25 to the financial statements gives a full
and accurate description of the Directors’ assessment of
going concern, including the identified risks and related
sensitivities.
Our conclusions based on this work:
— we consider that the Directors’ use of the going concern
basis of accounting in the preparation of the financial
statements is appropriate;
— we have not identified, and concur with the directors’
assessment that there is not, a material uncertainty
related to events or conditions that, individually or
collectively, may cast significant doubt on the
Company's ability to continue as a going concern for the
going concern period;
— we have nothing material to add or draw attention to in
relation to the Directors’ statement in note 1 and note
25 to the financial statements on the use of the going
concern basis of accounting with no material
uncertainties that may cast significant doubt over the
Company’s use of that basis for the going concern
period, and we found the going concern disclosure in
note 1 and note 25 to be acceptable; and
— the related statement under the Listing Rules set out on
page 47 is materially consistent with the financial
statements and our audit knowledge.
However, as we cannot predict all future events or
conditions and as subsequent events may result in
outcomes that are inconsistent with judgements that were
reasonable at the time they were made, the above
conclusions are not a guarantee that the Company will
continue in operation.
5. Fraud and breaches of laws and regulations – ability to detect
Identifying and responding to risks of material misstatement
due to fraud
To identify risks of material misstatement due to fraud (“fraud
risks”) we assessed events or conditions that could indicate an
incentive or pressure to commit fraud or provide an opportunity to
commit fraud. Our risk assessment procedures included:
— Enquiring of Directors as to the Company’s high-level policies
and procedures to prevent and detect fraud, as well as
whether they have knowledge of any actual, suspected or
alleged fraud;
— Assessing the segregation of duties in place between the
Directors, the Administrator and the Company’s Investment
Manager; and
— Reading Board and Audit and Risk Committee minutes.
As required by auditing standards, we perform procedures to
address the risk of management override of controls, in particular
to the risk that management may be in a position to make
inappropriate accounting entries. We evaluated the design and
implementation of the controls over journal entries and other
adjustments and made inquiries of the Administrator about
inappropriate or unusual activity relating to the processing of
journal entries and other adjustments. We substantively tested all
material post-closing entries and, based on the results of our risk
assessment procedures and understanding of the process,
including the segregation of duties between the Directors and the
Administrator, no further high-risk journal entries or other
adjustments were identified.
On this audit we have rebutted the fraud risk related to revenue
recognition because the revenue is non-judgemental and
straightforward, with limited opportunity for manipulation. We did
not identify any significant unusual transactions or additional fraud
risks.
Identifying and responding to risks of material misstatement due to
non-compliance with laws and regulations
We identified areas of laws and regulations that could reasonably
be expected to have a material effect on the financial statements
from our general commercial and sector experience and through
discussion with the Directors, the Investment Manager and the
Administrator (as required by auditing standards) and discussed
with the Directors the policies and procedures regarding
compliance with laws and regulations. As the Company is
regulated, our assessment of risks involved gaining an
understanding of the control environment including the entity’s
procedures for complying with regulatory requirements.
The potential effect of these laws and regulations on the financial
statements varies considerably.
68
6. We have nothing to report on the other information in the
Annual Report (continued)
We are also required to review the Viability statement, set out
on page 38 under the Listing Rules. Based on the above
procedures, we have concluded that the above disclosures are
materially consistent with the financial statements and our audit
knowledge.
Our work is limited to assessing these matters in the context of
only the knowledge acquired during our financial statements
audit. As we cannot predict all future events or conditions and as
subsequent events may result in outcomes that are inconsistent
with judgements that were reasonable at the time they were
made, the absence of anything to report on these statements is
not a guarantee as to the Company’s longer-term viability.
Corporate governance disclosures
We are required to perform procedures to identify whether
there is a material inconsistency between the Directors’
corporate governance disclosures and the financial statements
and our audit knowledge.
Based on those procedures, we have concluded that each of the
following is materially consistent with the financial statements
and our audit knowledge:
— the Directors’ statement that they consider that the annual
report and financial statements taken as a whole is fair,
balanced and understandable, and provides the information
necessary for shareholders to assess the Company’s position
and performance, business model and strategy;
— the section of the annual report describing the work of the
Audit and Risk Committee, including the significant issues
that the Audit and Risk Committee considered in relation to
the financial statements, and how these issues were
addressed; and
— the section of the annual report that describes the review of
the effectiveness of the Company’s risk management and
internal control systems.
We are required to review the part of the Corporate Governance
Statement relating to the Company’s compliance with the
provisions of the UK Corporate Governance Code specified by the
Listing Rules for our review. We have nothing to report in this
respect.
7. We have nothing to report on the other matters on which
we are required to report by exception
Under the Companies Act 2006, we are required to report to you
if, in our opinion:
— adequate accounting records have not been kept, or returns
adequate for our audit have not been received from
branches not visited by us; or
— the financial statements and the part of the Directors’
Remuneration Report to be audited are not in agreement
with the accounting records and
returns; or
— certain disclosures of directors’ remuneration specified by
law are not made; or
— we have not received all the information and explanations
we require for our audit.
We have nothing to report in these respects.
8. Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page 63,
the directors are responsible for: the preparation of the financial
statements including being satisfied that they give a true and fair
view; such internal control as they determine is necessary to
enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error; assessing
the Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern; and using the
going concern basis of accounting unless they either intend to
liquidate the Company or to cease operations, or have no
realistic alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue our
opinion in an auditor’s report. Reasonable assurance is a high
level of assurance, but does not guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or
in aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the financial
statements.
A fuller description of our responsibilities is provided on the
FRC’s website at www.frc.org.uk/auditorsresponsibilities.
In accordance with Disclosure Guidance and Transparency Rule
4.1.14R, the financial statements will form part of the annual
financial report prepared using the single electronic reporting
format under the TD ESEF Regulation. The auditor's report on
these financial statements provides no assurance over the ESEF
format
9. The purpose of our audit work and to whom we owe our
responsibilities
This report is made solely to the Company’s members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might
state to the Company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the
Company’s members, as a body, for our audit work, for this
report, or for the opinions we have formed.
John Waterson (Senior Statutory Auditor)
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
Saltire Court
20 Castle Terrace
Edinburgh
EH1 2EG
17 June 2022
5. Fraud and breaches of laws and regulations – ability to detect
(continued)
Identifying and responding to risks of material misstatement
due to non-compliance with laws and regulations (continued)
Firstly, the Company is subject to laws and regulations that directly
affect the financial statements including financial reporting
legislation (including related companies legislation), distributable
profits legislation, and its qualification as an Investment Trust
under UK taxation legislation, any breach of which could lead to the
Company losing various deductions and exemptions from UK
corporation tax, and we assessed the extent of compliance with
these laws and regulations as part of our procedures on the related
financial statement items.
Secondly, the Company is subject to many other laws and
regulations where the consequences of non-compliance could have
a material effect on amounts or disclosures in the financial
statements, for instance through the imposition of fines or
litigation. We identified the following areas as those most likely to
have such an effect: money laundering, data protection, bribery
and corruption legislation and certain aspects of company
legislation recognising the financial and regulated nature of the
Company’s activities and its legal form. Auditing standards limit the
required audit procedures to identify non-compliance with these
laws and regulations to enquiry of the Directors and the
Administrator and inspection of regulatory and legal
correspondence, if any. Therefore if a breach of operational
regulations is not disclosed to us or evident from relevant
correspondence, an audit will not detect that breach.
Context of the ability of the audit to detect fraud or breaches of
law or regulation
Owing to the inherent limitations of an audit, there is an
unavoidable risk that we may not have detected some material
misstatements in the financial statements, even though we have
properly planned and performed our audit in accordance with
auditing standards. For example, the further removed non-
compliance with laws and regulations is from the events and
transactions reflected in the financial statements, the less likely the
inherently limited procedures required by auditing standards
would identify it.
In addition, as with any audit, there remained a higher risk of non-
detection of fraud, as these may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of
internal controls. Our audit procedures are designed to detect
material misstatement. We are not responsible for preventing non-
compliance or fraud and cannot be expected to detect non-
compliance with all laws and regulations.
6. We have nothing to report on the other information in the
Annual Report
The Directors are responsible for the other information
presented in the Annual Report together with the financial
statements. Our opinion on the financial statements does not
cover the other information and, accordingly, we do not express
an audit opinion or, except as explicitly stated below, any form of
assurance conclusion thereon.
Our responsibility is to read the other information and, in doing
so, consider whether, based on our financial statements audit
work, the information therein is materially misstated or
inconsistent with the financial statements or our audit
knowledge. Based solely on that work we have not identified
material misstatements in the other information.
Strategic report and directors’ report
Based solely on our work on the other information:
— we have not identified material misstatements in the
strategic report and the Directors’ report;
— in our opinion the information given in those reports for the
financial year is consistent with the financial statements; and
— in our opinion those reports have been prepared in
accordance with the Companies Act 2006.
Directors’ remuneration report
In our opinion the part of the Directors’ Remuneration Report to
be audited has been properly prepared in accordance with the
Companies Act 2006.
Disclosures of emerging and principal risks and longer-term
viability
We are required to perform procedures to identify whether
there is a material inconsistency between the Directors’
disclosures in respect of emerging and principal risks and the
viability statement, and the financial statements and our audit
knowledge.
Based on those procedures, we have nothing material to add or
draw attention to in relation to:
— the Directors’ confirmation within the Strategic Report on
page 36 that they have carried out a robust assessment of
the emerging and principal risks facing the Company,
including those that would threaten its business model,
future performance, solvency and liquidity;
— the Principal Risks and Risk Mitigation disclosures describing
these risks and how emerging risks are identified, and
explaining how they are being managed and mitigated; and
— the Directors’ explanation in the Viability Statement of how
they have assessed the prospects of the Company, over what
period they have done so and why they considered that
period to be appropriate, and their statement as to whether
they have a reasonable expectation that the Company will be
able to continue in operation and meet its liabilities as they
fall due over the period of their assessment, including any
related disclosures drawing attention to any necessary
qualifications or assumptions.
69
6. We have nothing to report on the other information in the
Annual Report (continued)
We are also required to review the Viability statement, set out
on page 38 under the Listing Rules. Based on the above
procedures, we have concluded that the above disclosures are
materially consistent with the financial statements and our audit
knowledge.
Our work is limited to assessing these matters in the context of
only the knowledge acquired during our financial statements
audit. As we cannot predict all future events or conditions and as
subsequent events may result in outcomes that are inconsistent
with judgements that were reasonable at the time they were
made, the absence of anything to report on these statements is
not a guarantee as to the Company’s longer-term viability.
Corporate governance disclosures
We are required to perform procedures to identify whether
there is a material inconsistency between the Directors’
corporate governance disclosures and the financial statements
and our audit knowledge.
Based on those procedures, we have concluded that each of the
following is materially consistent with the financial statements
and our audit knowledge:
— the Directors’ statement that they consider that the annual
report and financial statements taken as a whole is fair,
balanced and understandable, and provides the information
necessary for shareholders to assess the Company’s position
and performance, business model and strategy;
— the section of the annual report describing the work of the
Audit and Risk Committee, including the significant issues
that the Audit and Risk Committee considered in relation to
the financial statements, and how these issues were
addressed; and
— the section of the annual report that describes the review of
the effectiveness of the Company’s risk management and
internal control systems.
We are required to review the part of the Corporate Governance
Statement relating to the Company’s compliance with the
provisions of the UK Corporate Governance Code specified by the
Listing Rules for our review. We have nothing to report in this
respect.
7. We have nothing to report on the other matters on which
we are required to report by exception
Under the Companies Act 2006, we are required to report to you
if, in our opinion:
— adequate accounting records have not been kept, or returns
adequate for our audit have not been received from
branches not visited by us; or
— the financial statements and the part of the Directors’
Remuneration Report to be audited are not in agreement
with the accounting records and
returns; or
— certain disclosures of directors’ remuneration specified by
law are not made; or
— we have not received all the information and explanations
we require for our audit.
We have nothing to report in these respects.
8. Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page 63,
the directors are responsible for: the preparation of the financial
statements including being satisfied that they give a true and fair
view; such internal control as they determine is necessary to
enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error; assessing
the Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern; and using the
going concern basis of accounting unless they either intend to
liquidate the Company or to cease operations, or have no
realistic alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue our
opinion in an auditor’s report. Reasonable assurance is a high
level of assurance, but does not guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or
in aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the financial
statements.
A fuller description of our responsibilities is provided on the
FRC’s website at www.frc.org.uk/auditorsresponsibilities
.
In accordance with Disclosure Guidance and Transparency Rule
4.1.14R, the financial statements will form part of the annual
financial report prepared using the single electronic reporting
format under the TD ESEF Regulation. The auditor's report on
these financial statements provides no assurance over the ESEF
format
9. The purpose of our audit work and to whom we owe our
responsibilities
This report is made solely to the Company’s members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might
state to the Company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the
Company’s members, as a body, for our audit work, for this
report, or for the opinions we have formed.
John Waterson (Senior Statutory Auditor)
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
Saltire Court
20 Castle Terrace
Edinburgh
EH1 2EG
17 June 2022
70 71
Utilico Emerging Markets Trust plc Report and Accounts for the period to 31 March 2022
STATEMENT OF COMPREHENSIVE INCOME
for the year to
31 March 2022
for the year to
31 March 2021
Notes
Revenue
return
£’000s
Capital
return
£’000s
Total
return
£’000s
Revenue
return

Capital
return

Total
return

10
Gains on investments – 58,293 58,293 –  
20
Losses on derivative instruments – – – –  
20
 – 1,333 1,333 –  
3
Investment and other income 22,593 – 22,593  – 
Total income 22,593 59,626 82,219   
4
Management and administration fees (1,451) (4,240) (5,691)   
5
 (1,590) – (1,590)  – 
Profit before finance costs and taxation 19,552 55,386 74,938   
6
Finance costs (119) (469) (588) (261) (609) (870)
Profit before taxation 19,433 54,917 74,350   
7
 (1,500) (1,188) (2,688)   
Profit for the year 17,933 53,729 71,662   
8
Earnings per share (basic) – pence 8.17 24.49 32.66 8.13 45.73 53.86







70 71
Utilico Emerging Markets Trust plc Report and Accounts for the period to 31 March 2022
STATEMENT OF CHANGES IN EQUITY
for the year to 31 March 2022
Notes
Ordinary
share
capital
£’000s
Merger
reserves
£’000s
Capital
redemption
reserve
£’000s
Special
reserve
£’000s
Retained earnings
Total
£’000s
Capital
reserves
£’000s
Revenue
reserve
£’000s
Balance as at 31 March 2021 2,213 76,706 132 473,634 (53,868) 6,879 505,696

19

Company and cancelled (65) – 65 (13,898) – – (13,898)

Profit for the year – – – – 53,729 17,933 71,662
9
Dividends paid in the year – – – – – (17,544) (17,544)
Balance as at 31 March 2022 2,148 76,706 197 459,736 (139) 7,268 545,916
for the year to 31 March 2021
Notes
Ordinary
share
capital

Merger
reserves

Capital
redemption
reserve

Special
reserve

Retained earnings
Total

Capital
reserves

Revenue
reserve

Balance as at 31 March 2020   67    

19

Company and cancelled (65)  65    

Profit for the year       
9
Dividends paid in the year       
Balance as at 31 March 2021   132    

72 73
Utilico Emerging Markets Trust plc Report and Accounts for the period to 31 March 2022
Notes as at 31 March
2022
£’000s
2021

Non-current assets
10 Investments 571,686 
Current assets
11  1,477 
 1,104 
2,581 
Current liabilities
12  (2,799) 
Net current liabilities (218) 
Total assets less current liabilities 571,468 
Non-current liabilities
13 Bank loans (23,662) 
14  (1,890) 
Net assets 545,916 
Equity attributable to equity holders
16 Ordinary share capital 2,148 
17 Merger reserve 76,706 
18 Capital redemption reserve 197 132
19 Special reserve 459,736 
20 Capital reserves (139) 
21 Revenue reserve 7,268 
Total attributable to equity holders 545,916 
22 Net asset value per share
Basic – pence 254.22 228.54


John Rennocks
Chairman
Utilico Emerging Markets Trust plc

STATEMENT OF FINANCIAL POSITION
72 73
Utilico Emerging Markets Trust plc Report and Accounts for the period to 31 March 2022
Year to 31 March
2022
£’000s
2021

Operating activities
 74,350 
Deduct investment income – dividends (21,604) 
Deduct investment income – interest (988) 
 (1) (7)
 588 870
 (58,293) 
Deduct losses on derivative instruments – 
 (1,333) 
 (16) 5
 (4,701) 
Net cash outflow from operating activities before dividends and interest (11,998) 
Interest paid (600) (852)
Dividends received 21,556 
Bank interest received 1 7
Investment income – interest 190 –
 (2,465) 
Net cash inflow from operating activities 6,684 
Investing activities
Purchase of investments (122,600) 
Sales of investments 176,372 
Purchase of derivatives – 
Sales of derivatives – 733
Net cash inflow/(outflow) from investing activities 53,772 
Financing activities
Repurchase of shares for cancellation (13,898) 
Dividends paid (17,544) 
 52,101 
 (77,576) 
Net cash outflow from financing activities (56,917) 
Increase/(decrease) in cash and cash equivalents 3,539 
 (3,184) 
 97 
Cash and cash equivalents as at the end of the year 452 
Comprised of:
Cash 1,104 
Bank overdraft (652) 
Total 452 

STATEMENT OF CASH FLOWS
74 75
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
1. ACCOUNTING POLICIES
The Company is an investment company incorporated in the
United Kingdom with a premium listing on the London Stock

(a) Basis of accounting

(see note 25) in accordance with UK adopted International


Accounting Standards and Standing Interpretations








the functional and reporting currency.
Where presentational recommendations set out in the
Statement of Recommended Practice “Financial Statements
of Investment Trust Companies and Venture Capital Trusts”




the SORP.


revenue return (dealing with items of a revenue nature) and a
capital return (relating to items of a capital nature). Revenue




via the revenue return to the Revenue Reserve. Capital






to Capital Reserves.
Following the change to the investment management fee


costs are allocated 80% to capital return and 20% to revenue
return (prior to 1 April 2021: 70% to capital return and 30% to
revenue return).

Capital Reserves and Revenue Reserve.




accounts of the Company.
(b) Financial instruments


instruments. Accounting Standards recognise a hierarchy
of fair value measurements for Financial Instruments which





(c) Valuation of investments and derivative instruments
Investment purchases and sales are accounted for on the










on initial recognition. Derivatives comprising forward foreign



the performance of these investments and derivatives



management personnel. Gains and losses on investments
and on derivatives are analysed within the Statement
of Comprehensive Income as capital return. Quoted


the Board in accordance with IFRS and International Private






and other relevant factors.
NOTES TO THE ACCOUNTS
74 75
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
(d) Subsidiary undertakings



(e) Cash and cash equivalents


an original maturity of three months or less. Bank overdrafts


(f) Debt instruments





(g) Foreign currency


Position date. Foreign currency transactions are translated at


or charged to the Statement of Comprehensive Income and
analysed as capital or revenue as appropriate. Forward foreign

market rates.
(h) Investment and other income

and are analysed as revenue return within the Statement of





receive its dividends in the form of additional shares rather

allocated as revenue in the Statement of Comprehensive

the amount of the cash dividend foregone is allocated as
capital in the Statement of Comprehensive Income. Interest on

interest rate method. Bank and short-term deposit interest is

(i) Expenses

are charged through the Statement of Comprehensive Income



return and 20% to revenue return (31 March 2021: 70% to
capital return and 30% to revenue return).

Investments are allocated to capital return.
– performance related management fees (calculated under the
terms of the Investment Management Agreement prior to 1
April 2021) are allocated to capital return.
(j) Directors’ fees

column of the Statement of Comprehensive Income. The





net asset value on the date of allotment.
(k) Finance costs


Income.
Finance costs are allocated 80% to capital return and 20% to
revenue return (31 March 2021: 70% to capital return and 30%
to revenue return).
(l) Taxation











assets are only recognised if it is considered more likely than







account.
(m) Dividends payable



NOTES TO THE ACCOUNTS (continued)
76 77
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
(n) Merger reserve
The surplus of the net assets of UEM Bermuda received
from the issue of new ordinary shares over the nominal
value of such shares was credited to this account which is

recognised in called up share capital.
(o) Capital reserves


The following items are accounted for through the Statement
of Comprehensive Income as capital returns and transferred
to capital reserves:
Capital reserve – arising on investments sold
– gains and losses on disposal of investments and derivative
instruments


Capital reserve – arising on investments held
– increases and decreases in the valuation of investments
and derivative instruments held at the year end.
2. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES
AND ASSUMPTIONS








estimates.




note 1(c) to the accounts and further information on Board
procedures is contained in the Audit & Risk Committee
Report and note 26(d) to the accounts. The fair value of


March 2022 (3.9% of total investments as at 31 March 2021).
3. INVESTMENT AND OTHER INCOME
Year to 31 March 2022 2021
Revenue
£’000s
Capital
£’000s
Total
£’000s
Revenue

Capital

Total

Investment income
Dividends* 21,604  21,604   
Interest 988  988   
Total investment income 22,592  22,592   
Other income
Bank interest 1  1 7  7
Total income 22,593  22,593   

4. MANAGEMENT AND ADMINISTRATION FEES
Year to 31 March 2022 2021
Revenue
£’000s
Capital
£’000s
Total
£’000s
Revenue

Capital

Total



research fees 1,124 4,496 5,620   
– performance fee adjustment in
respect of prior year  (256) (256)   
Administration fees 327  327 279  279
1,451 4,240 5,691   
76 77
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
The Company has appointed ICMIM as its Alternative
Investment Fund Manager and joint portfolio manager with





Investment Fund Managers Directive as it forms part of UK



Conduct Authority
From 1 April 2021 the annual management fee is a tiered





The management fee is allocated 80% to capital return (31
March 2021: 70% to capital return) and 20% to revenue return
(31 March 2021: 30% to revenue return). The investment


Prior to 1 April 2021 the Investment Managers were entitled












that date. A performance fee was paid in respect of the year


were purchased in the market at a cost to the Company of


recognised in the accounts for the year to 31 March 2022.
ICMIM also provides company secretarial services to the




These charges are allocated 80% to capital return (31 March
2021: 70% to capital) and 20% to revenue return (31 March
2021: 30% to revenue).

appointed Administrator and ICMIM has appointed Waverton

market dealing and information technology support services).
5. OTHER EXPENSES
Year to 31 March 2022 2021
Revenue
£’000s
Capital
£’000s
Total
£’000s
Revenue

Capital

Total

Auditor's remuneration:
for audit services
(1)
86  86 84  84
Broker and consultancy fees 128  128 129  129
Custody fees 648  648 571  571
Depositary fees 138  138 119  119

 210  210 191  191
 5  5 11  11
Professional fees 118  118 82  82
 257  257 238  238
1,590  1,590   

(1)


the year to 31 March 2020).
NOTES TO THE ACCOUNTS (continued)
78 79
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
6. FINANCE COSTS
Year to 31 March 2022 2021
Revenue
£’000s
Capital
£’000s
Total
£’000s
Revenue

Capital

Total

 119 469 588 261 609 870
7. TAXATION
(a) Analysis of charge in the year :
Year to 31 March 2022 2021
Tax on ordinary activities
Revenue
£’000s
Capital
£’000s
Total
£’000s
Revenue

Capital

Total

    – – –
 1,500  1,500  – 
  822 822 – 61 61
  366 366 –  
 1,500 1,188 2,688   




Year to 31 March 2022 2021
Revenue
£’000s
Capital
£’000s
Total
£’000s
Revenue

Capital

Total

 19,433 54,917 74,350   
 3,692 10,434 14,126   
Effects of:
 (3,476)  (3,476)  – 
  (11,329) (11,329) –  
 1,500  1,500  – 
 694  694  – 

to capital (895) 895    –
 (15)  (15) (24) – (24)
  1,188 1,188 –  
Total tax charge for the year 1,500 1,188 2,688   




78 79
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
8. EARNINGS PER SHARE
Year to 31 March
2022
£’000s
2021

Revenue return 17,933 
Capital return 53,729 
Total return 71,662 
Number 
 219,416,396 
Pence Pence
Revenue return per share 8.17 8.13
Capital return per share 24.49 45.73
Total profit per share 32.66 53.86
9. DIVIDENDS
Year to 31 March Record date Payment date
2022
£’000s
2021

 05-Jun-20 19-Jun-20  
 04-Sep-20 18-Sep-20  
 03-Dec-20 18-Dec-20  
 05-Mar-21 24-Mar-21  
 04-Jun-21 23-Jun-21 4,415 
 03-Sep-21 24-Sep-21 4,393 
 03-Dec-21 17-Dec-21 4,385 
 04-Mar-22 25-Mar-22 4,351 
17,544 



NOTES TO THE ACCOUNTS (continued)
80 81
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
10. INVESTMENTS
Year to 31 March
2022
£’000s
2021

 576,074 
 (10,323) 
 565,751 
Purchases at cost 124,508 
Sales proceeds (176,916) 
Profits on investments 58,343 
Valuation as at 31 March 571,686 
Analysed as at 31 March
Cost of investments 523,644 
Net unrealised gains/(losses) on investments 48,042 
Valuation 571,686 


were sold any unrealised gains/losses were included in the fair value of the investments.
Year to 31 March
Gains/(losses) on investments
2022
£'000
2021
£'000
Net (loss)/gain on investments sold (22) 
Other capital charges (50) (68)
Movement in unrealised gains 58,365 
Total gains on investments 58,293 
Subsidiary undertakings



Country of
registration and
incorporation
Number and class of
shares held
Holding
and voting
rights
2022
Fair
value
£’000s
2021
Fair
value

UEM (HK) Limited
(1)
Hong Kong  100 – –
UEM Mauritius Holdings Limited
(2)
Bermuda Loan 100 – –
(1)

transactions).
(2)




80 81
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
Associated undertakings



East Balkan Properties plc Petalite Limited Pitch Hero Holdings Limited
Country of incorporation Isle of Man United Kingdom United Kingdom
Country of listing Unlisted Unlisted Unlisted
Country of operations Bulgaria & Romania United Kingdom United Kingdom
 155  
Percentage of ordinary shares held 25.3% 29.4% 36.7%

Transactions with associated undertaking were as follows:
East Balkan Properties plc ("East Balkan")
East Balkan completed a 10-for-1 and 100-for-1 consolidation on the voting and non-voting shares respectively. UEM paid GBP

Petalite Limited (“Petalite”)




Pitch Hero Holdings Limited (“Pitch Hero”)







Country of
registration and incorporation
Class of
shares held
2022
% of class of
instruments
held
2021
% of class of
instruments
held
  Ordinary shares 6.6 7.4
 South Korea Ordinary shares 4.8 4.8
Ocean Wilsons Bermuda Ordinary shares 4.6 6.1
Telelink Business Services Group Bulgaria Ordinary shares 13.9 10.0
11. CURRENT ASSETS
Other receivables
2022
£’000s
2021

Accrued income 796 
Sales for future settlement 607 126
 29 73
 45 30
1,477 
NOTES TO THE ACCOUNTS (continued)
82 83
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
12. CURRENT LIABILITIES
Other payables
2022
£’000s
2021

Bank overdraft 652 
 24 35
Other creditors and accruals 1,834 
Purchases awaiting settlement 289 –
2,799 
13. BANK LOANS – NON-CURRENT LIABILITIES
2022
£’000s
2021

 23,662 –
USD 69.5m repaid – 
23,662 






14. PROVISION FOR CAPITAL GAINS TAX
2022
£’000s
2021

 1,524 –
 366 
Balance as at 31 March 1,890 

15. OPERATING SEGMENTS


16. ORDINARY SHARE CAPITAL
Number
2022
£'000 
2021
£'000
Issued, called up and fully paid
Ordinary shares of 1p each
 221,273,374 2,213  
 (6,529,307) (65)  (65)
Balance as at 31 March 214,744,067 2,148  



82 83
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
17. MERGER RESERVE
2022
£’000s
2021

Balance brought forward and carried forward 76,706 
18. CAPITAL REDEMPTION RESERVE
2022
£’000s
2021

 132 67
 65 65
Balance as at 31 March 197 132
19. SPECIAL RESERVE
2022
£’000s
2021

 473,634 
 (13,898) 
Balance as at 31 March 459,736 
20. CAPITAL RESERVES
2022 2021
Realised
£’000s
Investment
holding
gains
£’000s
Total
£’000s
Realised

Investment
holding
gains

Total

Realised gains on investments (22) – (22)  – 
Unrealised gains on investments – 58,365 58,365 –  
Realised losses on derivative
instruments – – –  – 
Unrealised gains on derivative
instruments – – – – 54 54
 1,333 – 1,333  – 
Finance costs charged to capital (469) – (469) (609) – (609)
 (4,240) – (4,240)  – 
 (1,188) – (1,188)  – 
Other capital charges (50) – (50) (68) – (68)
(4,636) 58,365 53,729   
 (43,545) (10,323) (53,868)   
Balance as at 31 March (48,181) 48,042 (139)   


transaction costs on sales of investments.
NOTES TO THE ACCOUNTS (continued)
84 85
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
21. REVENUE RESERVE
2022
£’000s
2021

 6,879 
Revenue profit for the year 17,933 
Dividend paid in the year (17,544) 
Balance as at 31 March 7,268 
22. NET ASSET VALUE PER SHARE


23. RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
2022 Balance as at
31 March 2021
£’000s
Transactions in
the year
£’000s
Net
cashflow
£’000s
Foreign
exchange loss
£’000s
Balance as at
31 March 2022
£’000s
Bank loans 50,373 – (25,475) (1,236) 23,662
Repurchase of shares for cancellation – 13,898 (13,898) – –
Dividends paid – 17,544 (17,544) – –
50,373 31,442 (56,917) (1,236) 23,662
2021 Balance as at
31 March 2020

Transactions in
the year

Net
cashflow

Foreign


Balance as at
31 March 2021

Bank loans  –   
Repurchase of shares for cancellation –   – –
Dividends paid –   – –
    
24. RELATED PARTY TRANSACTIONS
The following are considered related parties of the Company:




During the year the Company did not receive from or make




As at 31 March 2022 the fair value of the loan held with UEM (HK)


undertakings and the Company other than transactions in the








respect of their shareholdings in the Company. There were no
further transactions with the Board during the year.
There were no transactions with ICM or ICMIM other than

and in the prior year to 31 March 2021 the performance fee as





as at 31 March 2021 remained outstanding in respect of the
performance fee.




transactions with Mr Saville in the year.
84 85
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
25. GOING CONCERN
Notwithstanding that the Company has reported net current





of the Company for at least twelve months from the date of




portfolio as at 31 March 2022. As part of this assessment




accompanying currency volatility.
The Board also considered reverse stress testing to identify











26. FINANCIAL RISK MANAGEMENT






the underlying portfolio of investments. The Company has











The accounting policies which govern the reported Statement






Company does not make use of hedge accounting rules.
(a) Market risks





future risks. The Board sets policies for managing these risks



to market risks when making each investment decision
and monitors on-going market risk within the portfolio of



and the Board regularly monitor these risks. The Company

are limited to amounts and currencies commensurate with




of the countries and markets in which it is invested without


earned on deposits and paid on gearing.
NOTES TO THE ACCOUNTS (continued)
86 87
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
Currency exposure


2022 Average 2021
BRL Brazilian Real 6.2567 7.2936 7.7856
HKD Hong Kong Dollar 10.3112 10.6379 10.7264
INR Indian Rupee 99.7692 101.7883 100.8750
PHP Philippine Peso 68.1301 68.4618 66.9672
KRW South Korea Won 1595.8456 1594.8615 1561.4754
USD United States Dollar 1.3166 1.3666 1.3797


2022
BRL
£’000s
HKD
£’000s
INR
£’000s
KRW
£’000s
PHP
£’000s
USD
£’000s
Other
£’000s
Total
£’000s
Current assets 179 – 146 445 – 97 1,514 2,381
Creditors – – (9) – – (652) (24,011) (24,672)
 179 – 137 445 – (555) (22,497) (22,291)
Investments 109,839 69,722 64,347 31,022 26,510 28,054 183,708 513,202
Total net foreign currency exposure 110,018 69,722 64,484 31,467 26,510 27,499 161,211 490,911
Percentage of net exposures (%) 22.4 14.2 13.1 6.4 5.4 5.6 32.9 100.0
2021
BRL

HKD

INR

KRW

PHP

USD

Other

Total

Current assets 277 – 358 379 469 205 876 
Creditors – – – – –  – 
 277 – 358 379 469  876 
Investments        
        
 19.6 18.8 16.3 7.9 7.4 (6.8) 36.8 100.0
86 87
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022



2022 2021
Weakening of
Sterling
BRL
£’000s
HKD
£’000s
INR
£’000s
KRW
£’000s
PHP
£’000s
USD
£’000s
BRL

HKD

INR

KRW

PHP

USD


Revenue return 266 222 441 64 – – 244 217 431 54 83 6
Capital return 12,204 7,747 7,150 3,447 2,946 3,117      
Total return 12,470 7,969 7,591 3,511 2,946 3,117      
NAV per share
Basic – pence 5.68 3.63 3.46 1.60 1.40 1.42 4.66 4.49 3.99 1.85 1.73 1.12
Strengthening of
Sterling
BRL
£’000s
HKD
£’000s
INR
£’000s
KRW
£’000s
PHP
£’000s
USD
£’000s
BRL

HKD

INR

KRW

PHP

USD


Revenue return (266) (222) (441) (64) – – (244) (217) (431) (54) (83) (6)
Capital return (12,204) (7,747) (7,150) (3,447) (2,946) (3,117)      
Total return (12,470) (7,969) (7,591) (3,511) (2,946) (3,117)      
NAV per share
Basic – pence (5.68) (3.63) (3.46) (1.60) (1.40) (1.42) (4.66) (4.49) (3.99) (1.85) (1.73) (1.12)
Interest rate exposure
2022 2021
Within
one year
£’000s
More than
one year
£’000s
Total
£’000s
Within
one year

More than
one year

Total


Cash 1,104 – 1,104  – 
Bank overdrafts (652) – (652)  – 
Loans – (23,662) (23,662) –  
452 (23,662) (23,210)   

changes in the make-up of the net assets of the Company
arising out of the investment and risk management processes.


net assets are sensitive to changes in interest rates on cash and

and the interest rates pertaining at each Statement of Financial



and on the NAV per share.
2% increase
in rate
£’000s
2022
2% decrease
in rate
£’000s
2% increase
in rate

2021
2% decrease
in rate

Revenue return (86) 86 (366) 366
Capital return (379) 379 (705) 705
Net assets (465) 465  
NOTES TO THE ACCOUNTS (continued)
88 89
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
Other market risk exposures


changes.
Based on the portfolio of investments at the Statement of
Financial Position date and assuming other factors remain




Increase
in value
2022
Decrease in
value
Increase
in value
2021
Decrease in
value
 113,743 (113,743)  
NAV per share
Basic – pence 52.97 (52.97) 49.16 (48.61)
(b) Liquidity risk exposure


raised either through the realisation of assets or through






15 March 2024.




at each meeting. The Company has a loan facility of £50m as
set out in note 13. The remaining contractual maturities of the


2022
Three
months
or less
£’000
More than three
months but less
than one year
£’000
More than
one year
£’000
Total
£’000
Creditors:
Bank overdrafts 652 – – 652
Bank loans and interest 112 267 24,002 24,381
 730 – – 730
1,494 267 24,002 25,763
2021
Three
months
or less

More than three

than one year

More than
one year

Total

Creditors:
Bank overdrafts  – – 
Bank loans and interest 212 635  
 625 – – 625
 635  
88 89
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
(c) Credit risk and counterparty exposure


for securities which the Company has delivered. The Board



permit). A list of pre-approved counterparties is maintained and






The Company has an on-going contract with its custodians for
the provision of custody services. The contracts are reviewed
regularly.


Investment Managers and Waverton carry out duties (or


risk. The Board assesses this risk continuously through regular
meetings with the Investment Managers.





thereof. Borrowings under the loan facility do not have

amounts. Borrowings in foreign currencies are converted into




market data. The Directors make use of recognised valuation

transactions in the same or similar investments. The

Investment Managers to those valuations to ensure they

value principles.





measurement date.

compliant with IPEV guidelines and IFRS 13 and which are






estimation in the determination of fair value. Management





and selection of appropriate discount rates.





take them into account in pricing a transaction.








comparison or peer group multiple or milestone analysis as





fair value to changes in key assumptions.
Level 3 inputs are sensitive to assumptions made when



measurements of fair value. The sensitivities shown in





of investments also considered the impact of Covid-19 on






NOTES TO THE ACCOUNTS (continued)
90 91
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022

As at 31 March 2022
Investment
Investment
type
Valuation
methodology
Risk
weighting
Sensitivity
+/-
Carrying
amount
£’000s
Sensitivity
£’000s
Petalite Equity
Milestone
analysis* High 40% 17,621 7,048
UEM (HK) Limited
- CGN Capital
Partners Infra
Fund 3 Loan NAV Low 10% 12,543 1,254
Conversant Pte Ltd Equity
Last funding
round Medium 20% 7,267 1,453
Other investments Equity Various Medium 20% 6,547 1,309
Other investments Equity Various Low 10% 3,632 363
Other investments Equity
Last funding
round High 30% 350 105
Other investments Loans Various High 30% 150 45
Total 48,110 11,577
As at 31 March 2021
Investment
Investment
type
Valuation
methodology
Risk
weighting
Sensitivity
+/-
Carrying
amount

Sensitivity

UEM (HK) Limited
- CGN Capital
Partners Infra
Fund 3  NAV Low 10%  872
Conversant Pte Ltd 
Last funding
round High 30%  
East Balkan 
Fair value of
net assets High 30%  856
Other investments  Various Medium 20% 828 166
Other investments  Various High 30%  
Other investments Loans Various High 30% 550 165
Total  
* Valuation of investment in Petalite












90 91
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022



March 2022 carrying value.
(e) Capital risk management







note 16. Dividend payments are set out in note 9. Loans are set out in note 13.
27. FAIR VALUE HIERARCHY





markets.




follows:
As at 31 March 2022
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Investments 519,853 3,723 48,110 571,686
As at 31 March 2021
Level 1

Level 2

Level 3

Total

Investments    
During the year one stock with value of £1.7m was transferred from level 1 to level 2 due to the investee company shares trading





NOTES TO THE ACCOUNTS (continued)
92 93
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022

2022
£’000
2021

 20,869 
Transfer to level 1 (828) –
Purchases 7,205 
Sales (255) 
(Losses)/gains on investments sold in the year (1,764) 524
Gains/(losses) on investments held at end of year 22,883 (341)
Balance as at 31 March 48,110 
Analysed as at 31 March
Cost of investments 28,456 
Gains/(losses) on investments 19,654 
Valuation 48,110 



92 93
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
ALTERNATIVE INVESTMENT FUND MANAGERS DIRECTIVE
(“AIFMD”)









2022
Leverage
exposure
Gross
method
Commitment
method
 300% 300%
Actual 105% 105%
2021
Leverage

Gross
method
Commitment
method
 300% 300%
Actual 110% 110%



SECURITIES FINANCING TRANSACTIONS (“SFT”)





disclosure to make in satisfaction of the UK version of the EU
regulation 2015/2365 on transparency of SFT which forms


OTHER FINANCIAL INFORMATION (UNAUDITED)
94 95
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022









ORDINARY BUSINESS
1. To receive and adopt the report of the Directors


report of the auditor thereon.
2. 
3. 
for the year ended 31 March 2022.
4. 
four interim dividends per year.
5. To elect Mr Mark Bridgeman as a Director.
6. 
7. 
8. To re-elect Ms Susan Hansen as a Director.
9. 
10. To re-appoint KPMG LLP as auditor to the


11. To authorise the Directors to determine the

SPECIAL BUSINESS
Ordinary resolution
12. 

generally and unconditionally authorised pursuant
to section 551 of the Companies Act 2006 (the

to allot shares in the Company and to grant rights

shares in the Company (“Securities”) up to an

of the aggregate nominal amount of the issued

Company as at the date of this notice) provided








Special Resolutions
13. 


empowered pursuant to sections 570 and 573 of








 








 

held in treasury for cash up to an aggregate

5% of the aggregate nominal amount of the


and
 

held in treasury at a price of not less than
the net asset value per share as close as

14. 
authority to make market purchases of ordinary


accordance with section 701 of the Companies
NOTICE OF ANNUAL GENERAL MEETING
94 95
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
Act 2006 (the “Act”) to make market purchases of
Shares (within the meaning of section 693 of the



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
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



days immediately preceding the date of






amended and supplemented from time to time







into a contract to purchase Shares which will


may purchase Shares pursuant to any such
contract or contracts as if the authority



or otherwise dealt with as treasury shares in

cancelled immediately upon completion of the
purchase.
By order of the Board
ICM Investment Management Limited
Company Secretary



The Ridge

NOTES:
1. 








2. 


authority (if any) under which it is signed or a notarial


in accordance with the instructions printed thereon as












helpline on +44 (0370) 707 1375 or you may photocopy






together in the same envelope.
3. 
prevent you from attending the meeting and voting in


automatically terminated.
4. Any person receiving a copy of this Notice as a person

under section 146 of the Companies Act 2006 (a
“Nominated Person”) should note that the provisions
96 97
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022








for the meeting. If a Nominated Person has no such

he/she may have a right under such agreement to give

rights at the meeting.
5. 
main point of contact in terms of their investment in

Nominated Person to enjoy the information rights (or





interest in the Company (including any administrative


Person.
6. 
Securities Regulations 2001 and for the purposes of









to attend and vote at the adjourned meeting is 6.00 p.m.
two days prior to the time of adjournment. Changes to

disregarded in determining the rights of any person to
attend and vote at the meeting.
7. 





holding.
8. Shareholders who hold their shares electronically may

appropriate and authenticated CREST message so as to



manual via www.euroclear.com. Shareholders are advised


9. If you are a CREST system user (including a CREST


CREST message transmitted. To appoint one or more









should contact their CREST sponsor for assistance with


please refer to the CREST manual. The Company may

the circumstances set out in Regulation 35(5)(a) of The

10. 















Financial Conduct Authority. Any such person holding 3%
or more of the voting rights in the Company who appoints



Disclosure Guidance and Transparency Rules.
11. 

speak at the meeting. A shareholder may alternatively
NOTICE OF ANNUAL GENERAL MEETING (continued)
96 97
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022






interfere unduly with the preparation for the meeting



in the interests of the Company or the good order of the

12. 



does not do so in relation to the same shares.
13. 






connected with an auditor of the Company ceasing to

accounts and reports were laid in accordance with
section 437 of the Companies Act 2006.


complying with sections 527 or 528 of the Companies









14. 



shares held in treasury. Each ordinary share carries
the right to one vote and therefore the total voting
rights in the Company as at the date of this report are

15. Further information regarding the meeting which the



16. 

letters of appointment and the Articles of Association.
17. Copies of the letters of the appointment and deeds of

copy of the Articles of Association of the Company and




the meeting and also on the date of the meeting from
15 minutes prior to commencement of the meeting until
the conclusion thereof.
18. Under sections 338 and 338A of the Companies







any matter (other than a proposed resolution) which



 



 
 









19. Any electronic address provided either in this Notice or



98 99
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
DIRECTORS

Mark Bridgeman
Susan Hansen

Anthony Muh

REGISTERED OFFICE
The Cottage
Ridge Court
The Ridge
Epsom
Surrey KT18 7EP



COMPANY SECRETARY
ICM Investment Management Limited

Epsom
Surrey KT18 7YF
Telephone +44 (0)1372 271486

JOINT PORTFOLIO MANAGER
ICM Limited
34 Bermudiana Road
Hamilton HM 11
Bermuda
ADMINISTRATOR AND CUSTODIAN

25 Bank Street
Canary Wharf


BROKER
Shore Capital and Corporate Limited

London SW1A 1LD

LEGAL ADVISER TO THE COMPANY

3 More London Riverside
London SE1 2AQ
AUDITOR
KPMG LLP

London E14 5GL

DEPOSITARY SERVICES PROVIDER

25 Bank Street
Canary Wharf


Financial Conduct Authority and the Prudential Regulation Authority
REGISTRAR
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS13 8AE
Telephone +44 (0370) 707 1375
COMPANY BANKER


London EC2M 3NS

PUBLIC RELATIONS
Montford Communications Limited


Mayfair

Telephone + 44 (0)20 7887 6287
COMPANY INFORMATION
98 99
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
ALTERNATIVE PERFORMANCE MEASURES
The European Securities and Markets Authority





uses the following Alternative Performance Measures:
Discount/Premium – if the share price is lower than



price was 224.00p (2021: 197.50p) and the NAV per

therefore 11.9% (2021: 13.6%).
Gearing – 
cash of the Company to its net assets.
Year to 31 March page
2022
£’000s
2021

Bank overdrafts 82 652 
Bank loans 72 23,662 
Cash 72 (1,104) 
 23,210 
 72 545,916 
Gearing (%) 4.3 10.6
NAV per share – 

note 22 to the accounts).
NAV/share price total return – the return to

dividends paid in the year to the increase or decrease
in the NAV or share price in the year. The dividends are


dividends were paid.
Year to 31 March 2022
Dividend
rate
(pence)
NAV
(pence)
Share
price
(pence)
31 March 2021 n/a 228.54 197.50
 2.000 250.93 224.00
 2.000 248.92 220.00
 2.000 243.91 216.00
25 March 2022 2.000 247.03 214.00
31 March 2022 n/a 254.22 224.00
Total return (%) 14.9 17.6
Year to 31 March 2021
Dividend
rate
(pence)
NAV
(pence)
Share
price
(pence)
31 March 2020 n/a 181.84 161.50
 1.925 214.19 182.50
 1.925 212.40 183.50
 1.925 222.48 194.00
24 March 2021 1.925 228.07 199.50
31 March 2021 n/a 228.54 197.50
Total return (%) 30.2 27.3
NAV/share price total return since inception – the



year to the increase or decrease in the NAV/share price

re-invested in the form of net assets or shares on the
date on which the dividends were paid. The adjustment



100 101
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
Total return since inception
NAV
31 March 2022
Share price
31 March 2022
NAV
31 March 2021
Share price
31 March 2021

(1)
98.36 100.00 98.36 100.00

shares adjustment factor 1.82499 1.90409 1.76721 1.83592
NAV/Share price at year end (pence) 254.22 224.00 228.54 197.50
Adjusted NAV/Share price at year end
(pence) 463.95 426.52 403.88 362.59
Total return (%) 371.7 326.5 310.6 262.6
(1)
Date of admission to trading on the Alternative Investment Market of UEM Bermuda.
Annual compound NAV total return since inception – the annual return to shareholders calculated on the

Annual compound 31 March 2022 31 March 2021
Annual compound NAV total return since inception (%) 9.7 9.4
Ongoing charges – 




Ongoing charges calculation (excluding performance fee) Page
31 March 2022*
£’000s
31 March 2021

Management and administration fees 76 5,947 
 77 1,590 
 7,537 
Average net asset values of the Company 532,661 
Ongoing Charges (%) 1.4 1.1
Ongoing charges calculation (including performance fee) Page
31 March 2022*
£’000s
31 March 2021

Management and administration fees 76 5,947 
 77 1,590 
 7,537 
Average net asset values of the Company 532,661 
Ongoing Charges (%) 1.4 2.1
* changes to the management fee are set out in note 4 to the accounts
ALTERNATIVE PERFORMANCE MEASURES (continued)
100 101
Utilico Emerging Markets Trust plc Report and Accounts for the year to 31 March 2022
as at 31 March 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
NAV total return per
ordinary share
(1)
(annual) (%) 14.9 30.2 (24.9) 3.5 6.6 26.2 1.7 12.4 (3.4) 20.9 3.4
Share price total return per
ordinary share
(1)
(annual) (%) 17.6 27.3 (23.2) 5.4 7.1 24.9 (1.8) 8.2 (2.6) 20.8 7.4
Annual compound NAV total
return
(1)
(since inception) (%) 9.7 9.4 8.1 11.0 11.7 12.1 10.9 11.9 11.8 13.9 12.9
Undiluted NAV per ordinary
share
(1)
(pence) 254.22 228.54 181.84 249.84 247.22 251.72 206.45 209.79 192.38 205.49 175.60
Diluted NAV per ordinary
share (pence) 254.22
(2)
228.54
(2)
181.84
(2)
249.84
(2)
247.22
(2)
241.29 202.52 209.79
(2)
192.38
(2)
205.49
(2)
175.60
(2)
Ordinary share price (pence) 224.00 197.50 161.50 217.90 212.00 214.50 178.50 188.50 180.00 191.20 164.00
Discount
(3)
(%) (11.9) (13.6) (11.2) (12.8) (14.2) (11.1) (11.9) (10.1) (6.4) (7.0) (6.6)
Earnings per ordinary share

- Capital (pence) 24.49 45.73 (68.29) (0.12) 4.66 44.46 (5.50) 18.53 (12.13) 30.71 1.19
- Revenue (pence) 8.17 8.13 7.88 7.47 9.27 7.80 8.23 4.98 4.80 5.20 4.12
Total (pence) 32.66 53.86 (60.41) 7.35 13.93 52.26 2.73 23.51 (7.33) 35.91 5.31
Dividends per ordinary
share (pence) 8.000 7.775 7.575 7.200 7.000 6.650 6.400 6.100 6.100 5.800 5.500
Gross assets
(4)
(£m) 569.6 556.1 461.4 581.9 579.8 579.0 455.2 479.2 433.4 452.1 382.9
 545.9 505.7 414.3 574.2 579.8 532.2 436.6 447.4 410.2 442.9 378.5

(£m) 13.9 12.1 4.8 9.5 21.9 10.0 3.0 – 3.9 – 4.9
Net cash/(overdraft) (£m) 0.5 (3.2) 39.5 11.7 8.1 15.3 12.6 0.5 (0.9) 2.6 (1.8)
Bank loans (£m) (23.7) (50.4) (47.1) (7.8) 0.0 (46.8) (18.7) (31.9) (23.1) (9.2) (4.4)
 (23.2) (53.6) (7.6) 3.9 8.1 (31.5) (6.1) (31.4) (24.0) (6.6) (6.2)
Net (gearing)/cash on net
assets (%) (4.3) (10.6) (1.8) 0.7 1.4 (5.9) (1.4) (7.0) (5.9) (1.5) (1.6)
Management and
administration fees and


fee
(5)
(£m) 7.3 5.0 6.4 5.9 5.7 5.2 4.5 4.6 3.7 3.4 3.9
- including performance
fee
(5)
(£m) 7.3 10.1 6.4 5.9 5.7 14.3 4.5 7.7 3.7 12.9 3.6
Ongoing charges figure
(1)

fee
(5)
(%) 1.4 1.1 1.1 1.0 1.0 1.1 1.1 1.1 0.9 0.8 0.9
- including performance
fee
(5)
(%) 1.4 2.1 1.1 1.0 1.0 2.9 1.1 1.8 0.9 3.2 0.9
(1)
See Alternative Performance Measures on pages 99 and 100
(2)
There was no dilution
(3)
Based on diluted NAV
(4)

(5)
Investment Management Agreement amended from 1 April 2021 and the performance fee discontinued
HISTORICAL PERFORMANCE
UK CONTACT

Epsom Surrey
KT18 7YF
Telephone: +44 (0)1372 271486
www.uemtrust.co.uk
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