About Us
Utilico Investments Limited's objective is to maximise shareholder returns by identifying and investing in investments where the underlying value is not reflected in the market price.
Utilico Investments Limited (formerly Utilico Limited) is an exempted closed-ended Bermuda incorporated investment company, established as a successor company to Utilico Investment Trust plc. Trading in the Company's shares and warrants commenced on 20 June 2007. A change of name from Utilico Limited became effective on 18 January 2011.
The company's investment policy is to invest in undervalued investments and will have the flexibility to make investments in a wide range of sectors and markets.
The Company aims to identify and invest in opportunities where the underlying value is not reflected in the market price. This perceived undervaluation may arise from any number of factors including technological, market motivation, prospective financial engineering opportunities, competition or shareholder apathy.
In the short to medium term it is anticipated that the Company will continue to have a significant proportion of its Gross Assets invested in developed markets in existing utilities and related stocks, including (but not limited to) water and sewerage companies, waste, electricity, gas, telecommunications, ports, airports, service companies, rail, roads, any business with essential service or monopolistic characteristics and in any new utilities which may arise. The Company may also invest this segment of its portfolio in businesses which supply services to or otherwise support the utilities and related sectors.
Subject to compliance with the Listing Rules in force from time to time, Utilico may invest in other investment companies or vehicles, including any managed by the Manager, where such investment would be complementary to the Company's investment objectives and policy.
The Company has the flexibility to invest in any instrument appropriate to the particular opportunity under consideration, including shares, bonds, convertibles, options, warrants, futures and debt securities and to invest in unlisted securities. The Company may use derivative instruments for the purposes of efficient portfolio management and to obtain investment exposure, such as contracts for difference, financial futures, call and put options and warrants. The Company may from time to time seek to actively protect the Company's portfolio and balance sheet from major market corrections. This may include foreign currency hedges, interest rate hedges, stock market index options and similar instruments.
The Company has the flexibility to invest in markets worldwide although investments in the utilities and infrastructure sectors will principally be made in the developed markets of Australasia, Western Europe and North America, as Utilico's exposure to the emerging markets utilities and infrastructure sectors will primarily be through its holding in Utilico Emerging Markets Limited. Utilico will have the flexibility to invest directly in these sectors in emerging markets with the prior agreement of Utilico Emerging Markets Limited.
The Company believes it is appropriate to support investee companies with their capital requirements while at the same time maintaining an active and constructive shareholder approach through encouraging the organisation of capital structure and business efficiencies. The Manager's investment team maintains regular contact with investee companies and Utilico may often be among the largest shareholders. There are no limits on the proportion of an investee company that Utilico may hold and Utilico may take legal or management control of a company from time to time.
The Company aims to maximise value for Shareholders through a relatively concentrated portfolio of investments. There will be no fixed limits on the allocation of investments between sectors and markets, however, the following investment limits will apply:
- investments in unlisted companies will in aggregate not exceed 20% of Gross Assets at time that any new investment is made; and
- no single investment will exceed 30% of Gross Assets at the time such investment is made, save that this limit shall not prevent the exercise of warrants, options or similar convertible instruments acquired prior to the relevant investment reaching the 30% limit.
Under the bye-laws, the Group is permitted to borrow an aggregate amount equal to 100% of the Group's Gross Assets. Borrowings will be drawn down in any currency appropriate for the portfolio. However, the Board has set a current limit on gearing (being total borrowings measured against gross assets) not exceeding 33.3% at the time of draw down. Borrowings will be drawn down in Sterling, US Dollars or any currency for which there is a corresponding asset within the portfolio (at the time of draw down, the value drawn must not exceed the value of the relevant asset in the portfolio).
As required by the Listing Rules, there will be no material change to the investment policy without prior approval of Shareholders. Any such change would also require the consent of the ZDP Shareholders in accordance with the Subscription Agreement.
The Directors are responsible for the determination of Utilico's investment policy and have overall responsibility for the Group's day-to-day activities. Utilico has, however, entered into an Investment Management Agreement with ICM Limited ('ICM') under which ICM has been appointed with responsibility for the discretionary management of the Company's portfolio and the provision of various other management services to it, subject to the overriding supervision of the Directors. Administration and secretarial services are provided by F&C Management Ltd.
The Group's capital structure is comprised of bank debt, ordinary shares, warrants and three classes of ZDP shares, which are all listed on the London Stock Exchange.
The Group publishes the Net Asset Value (NAV) for its ordinary and ZDP shares weekly via the Regulatory News Service (RNS) of the London Stock Exchange. The news section of this website contains an archive of RNS announcements relating to the Company.
Delayed Pricing of the Company's LSE listed securities are available in the prices section of this website and from various other sources online. Closing mid prices are also published daily in the Financial Times under Investment Companies and in the Daily Telegraph under Investment Trusts.
Utilico Investments Limited is registered in Bermuda. Company registration number: 39480.
Utilico Finance Limited is also an exempted closed-ended Bermuda incorporated investment company and is a wholly owned subsidiary of Utilico Investments Limited. Utilico Finance's ZDP share capital comprises three classes of Utilico Finance ZDP Shares (with different maturity dates ranging from 31 October 2012 to 31 October 2016). Trading in the ZDP Shares also commenced on 20 June 2007.
Utilico Finance Limited is registered in Bermuda. Company registration number: 39479.
