UIL Limited (UTL), a Bermuda-based closed-ended investment company, published its monthly factsheet for October 2026, revealing a net asset value total return of 7.3% — significantly outpacing the FTSE All Share Total Return Index, which rose 1.1% over the same period. The company also completed the redemption of its 2026 ZDP shares at 151.50p per share on 30 October 2026, a structural milestone that materially reduced gearing. Following the redemption, UIL's gearing fell from 28.6% to 20.8%, whilst the 2028 ZDP cover improved substantially from 3.52x to 4.87x. Investors will be watching portfolio concentration and ZDP liability management as key indicators of balance sheet direction.

Key Points

  • UIL Limited (UTL) — closed-ended investment company managed by ICM Investment Management Limited
  • NAV total return increased 7.3% in October 2026, against a 1.1% rise in the FTSE All Share Total Return Index
  • 2026 ZDP shares redeemed at 151.50p per share on 30 October 2026 and cancelled from the London Stock Exchange on 3 November 2026
  • Investors should monitor the 2028 ZDP cover ratio, gearing trajectory, and W1M's growing weighting within gross assets

W1M Valuation Rises 19.2% and Now Represents 29.7% of UIL's Gross Assets

The most significant portfolio development in October was the continued strong operating performance of W1M, whose valuation increased by a further 19.2% during the month. Following the repayment of the 2026 ZDP shares, which reduced UIL's gross assets, W1M's weighting rose to 29.7% of gross assets, making it the dominant single holding in the portfolio. The factsheet also notes one change to the top ten holdings, with Mimosa Resources replaced by the 2028 ZDP shares that UIL holds as an investment. Alliance Nickel posted a 12.0% share price gain, while MoneyMe Limited declined 10.8% and WT Financial Group fell 6.7%.

UIL Ordinary Share Price Rises 4.4% but Discount to NAV Widens to 25.7%

UIL's ordinary share price closed October at 213.00p, representing a 4.4% increase during the month. Despite the strong NAV performance, the discount to NAV widened from 23.6% to 25.7% as at 31 October 2026, indicating that the market price did not fully track the underlying asset growth. A persistently wide discount is a characteristic risk for closed-ended investment companies and may remain a focus for shareholders evaluating the fund's capital efficiency. The company did not disclose any share buyback activity in relation to the ordinary shares within this announcement.

2028 ZDP Shares Yield 7.0% as UIL Sells 1.1 Million Shares at 133.11p Average

UIL sold 1.1 million 2028 ZDP shares issued by its subsidiary UIL Finance in the open market during October at an average price of 133.11p per share. Following these disposals, UIL holds 3.9 million 2028 ZDP shares as at 31 October 2026, and the month-end price of 133.00p implies a gross redemption yield of 7.0%. The 2028 ZDP cover ratio strengthened considerably to 4.87x after the 2026 ZDP redemption removed that liability. Additionally, UIL drew down £9.8 million under its loan facility provided by General Provincial Life Pension Fund Limited during the month.