| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 371.73 | 132 |
| Intrinsic value (DCF) | 39.84 | -75 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
UIL Limited (UTL.L) is a Bermuda-domiciled, closed-ended equity mutual fund listed on the London Stock Exchange, specializing in global infrastructure and utility investments. Managed by ICM Limited, the fund targets value stocks in essential service sectors such as water, electricity, gas, telecommunications, and transportation, leveraging monopolistic or high-barrier-to-entry business models. UIL employs a fundamental investment strategy, prioritizing companies with strong balance sheets, sustainable dividends, and robust cash flows. The fund benchmarks against indices like the FTSE Utilities Index and Dow Jones World Utilities Index, reflecting its sector focus. Formerly known as Utilico Investments Limited, UIL has operated since 2003, offering investors exposure to defensive, cash-generative assets. With a market cap of approximately £102 million, the fund appeals to income-seeking investors, underscored by its 8p dividend per share, despite recent net income challenges.
UIL Limited presents a niche investment opportunity in global infrastructure and utilities, sectors known for resilience and stable cash flows. The fund’s focus on value stocks with monopolistic characteristics may appeal to defensive investors, particularly given its 8p dividend yield. However, recent financials show a net loss of £25 million and negative revenue, raising concerns about portfolio performance and leverage (total debt of £102.6 million against £1.5 million cash). The low beta (0.67) suggests lower volatility relative to the market, but the fund’s concentrated sector exposure could limit upside in bullish equity markets. Investors should weigh the dividend sustainability against its debt levels and operational cash flow (£7.7 million).
UIL Limited’s competitive edge lies in its specialized focus on infrastructure and utility equities, a segment less saturated than broader equity funds. Its value-oriented approach and emphasis on dividend sustainability differentiate it from growth-focused peers. However, the fund’s small size (£102 million market cap) limits its ability to diversify broadly or compete with larger, more diversified asset managers. The reliance on ICM Limited for management may also pose key-person risk. While its benchmarks align with sector performance, UIL’s active strategy hasn’t shielded it from recent losses, suggesting potential inefficiencies in stock selection or timing. The fund’s closed-ended structure provides stability in capital deployment but reduces liquidity options for investors. Competitively, UIL must contend with larger, lower-cost passive funds tracking similar indices, as well as global infrastructure-focused ETFs offering greater liquidity and diversification.