LONDON--Utilico Emerging Markets Limited (UEM.LN), the U.K.-based global emerging markets investment arm of Computershare, Ltd (CPU), said Tuesday the reducing interest rate environment in Brazil should, in time, be a positive for its stocks, not only in terms of their financial performance, but also due to their relative attractiveness as high yield investments, given that most of the Company's holdings pay attractive dividends.

MAIN FACTS:

-UEM's net asset value cum income total return was 0.0% in the period April 1 to June 30; good performance when compared to the MSCI Emerging Markets Total Return Index (Sterling adjusted) which was down 7.1%.

-UEM's share price fell by 1.8% during the period and the discount to NAV widened to 7.4%.

-Quarter dividend of 1.375 pence per ordinary share which will be paid on Sep. 7.

-UEM's gross assets less current liabilities (excluding debt) at the beginning of the period under review were GBP382.9 million and increased by GBP5.3 million to GBP388.2 million at the end of June.

-Ordinary shareholders funds decreased by GBP3.8 million to GBP374.7 million.

-During the period under review UEM increased its bank debt from GBP4.4 million to GBP12.2 million.

-UEM's discount to NAV widened from 6.6% at March 31 to 7.4% at June 30.

-The investment environment is challenging and is likely to remain so.

-A great deal of uncertainty surrounds Greece, Italy, Spain and Portugal and the Eurozone.

-However, UEM and emerging markets generally continue to outpace the major developed markets in terms of growth and the Company is positive on the portfolio's long term prospects.

-Write to Mark Shapland at mark.shapland@dowjones.com

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