Utilico Emerging Markets Trust PLC (UEM) has published its monthly factsheet for October 2026, revealing a net asset value total return decline of 4.8% during the month, which nonetheless outperformed the MSCI Emerging Markets Net Total Return GBP Index, which fell by 8.8%. The trust, which invests primarily in infrastructure and utility-related businesses across emerging markets, faced headwinds from sharp falls in Brazilian, Korean, Indonesian, and Chinese markets. UEM's share price ended October at 270.00p, down 4.3%, with the discount to NAV narrowing slightly to 9.0%, a data point investors in investment trusts typically monitor closely.

Key Points

  • Utilico Emerging Markets Trust PLC (UEM)
  • UEM's NAV total return declined 4.8% in October 2026, outperforming the MSCI Emerging Markets benchmark which fell 8.8%
  • Share price ended October at 270.00p; discount to NAV narrowed to 9.0%; 1.1 million shares bought back at an average of 286.79p during the month
  • Investors should watch the MSCI consultation on Indonesia's potential reclassification, with a final decision expected by 30 June 2027

Brazilian Election Result and Indonesian Reclassification Concern Drive October Emerging Market Losses

October's emerging market performance was shaped by two significant political and regulatory developments. The re-election of Lula da Silva as Brazil's president in a run-off vote wrong-footed markets, sending the Ibovespa Index down 9.9% for the month. UEM's Brazilian holdings — including Axia Energia, which fell 14.2%, alongside Copel, Sabesp, and Orizon — largely reversed strong gains accumulated since mid-August. Separately, MSCI proposed moving Indonesia from emerging market to standalone status on market governance concerns, triggering a 16.7% fall in the Jakarta JCI Index. A consultation is underway, with a final decision expected by 30 June 2027.

Technology Sell-Off Hits GDS, FPT and Korean Holdings While KINX Surges 38.5% on Macquarie Bid

Semiconductor and AI-related stocks faced a broad correction in October, with South Korea's KOSPI falling 16.2% and China's Shenzhen ChiNext Index declining 23.0%. GDS saw its share price drop 30.3% amid weak sentiment towards Chinese technology names, while FPT fell 16.3% despite reporting solid third-quarter results. Piraeus Port reversed most of September's gains, declining 11.0%. Against this backdrop, KINX was UEM's standout performer, rising 38.5% after a Macquarie fund agreed to acquire shares from key shareholders at KRW 190,000 per share, subject to governmental approval, with a concurrent tender offer for minority shareholders if approved.

Magyar Telekom Enters UEM's Top Thirty Holdings, Replacing SUNeVision

UEM made one change to its top thirty holdings in October, with Magyar Telekom replacing Hong Kong-based data centre operator SUNeVision. Magyar Telekom, controlled by Deutsche Telekom, is the largest telecoms operator in Hungary, with operating subsidiaries in North Macedonia, Romania, and Bulgaria. The stock gained 9.8% ahead of its third-quarter results, contributing positively to October's portfolio performance. GAP also rose 16.9% after positive outlook commentary accompanied solid third-quarter results, and Anhui Expressway gained 9.4% as Chinese investors favoured dividend-paying stocks. Portfolio purchases totalled £11.5 million, while total realisations reached £28.5 million.

UEM Buyback Programme Reaches 4.9 Million Shares Over Seven Months to October 2026

The trust's debt facility saw no structural changes during October, though loan exposure decreased by £0.3 million due to foreign exchange movements, ending the month at £21.3 million, drawn as USD 13.5 million, EUR 7.5 million, and GBP 5.0 million. UEM continued its share buyback activity, repurchasing 1.1 million shares during October at an average price of 286.79p. Cumulatively, the trust has bought back 4.9 million shares over the seven months to 31 October 2026, equivalent to 2.8% of share capital as at 31 March 2026, a programme that the announcement suggests has contributed to the modest narrowing of the discount to NAV.