Uzbekistan’s National Investment Fund reports over $170mn profit in first half of 2026

The National Investment Fund of the Republic of Uzbekistan (UzNIF) announced a profit exceeding $174 million (UZS 2.06 trillion) for the first half of 2026. This financial gain was primarily driven by unrealized profits from its equity investments and dividend payouts from companies within its portfolio. These unaudited results, covering the six months ending June 30, 2026, mark the Fund's initial financial disclosure since its May initial public offerings (IPOs) on both the London Stock Exchange and the Republican Stock Exchange “Toshkent.”

During this period, UzNIF recorded net unrealized gains on equity investments totaling over $183 million (UZS 2.17 trillion), while gross dividend income reached approximately $29 million (UZS 341 billion). It is important to note that these condensed interim financial statements are unaudited and have not undergone review by the Fund's independent auditor.

UzNIF's total net asset value (NAV) saw a 6.1% increase in UZS, reaching over $2.67 billion (UZS 31.67 trillion) by June 30, up from over $2.48 billion (UZS 29.86 trillion) at the close of 2025. The NAV per share was UZS 6.2659 at the end of June. When adjusted for the five-for-one share consolidation in April 2026, the NAV per share demonstrated an approximate 6.1% rise from UZS 5.9082.

The Fund attributed this growth primarily to an updated valuation of its portfolio in June. Several companies in the energy sector experienced substantial increases in their assessed fair values. Specifically, JSC Thermal Power Plants' fair value surged by approximately 114%, the National Electric Grid of Uzbekistan's by around 81%, and Regional Electric Networks' by roughly 50%.

UzNIF linked these changes to regulatory advancements within Uzbekistan's electricity generation and distribution sector, including the implementation of the Regulatory Asset Base (RAB) framework. Outside the electricity sector, Uzbektelecom's fair value increased by approximately 30%, and SQB saw an increase of about 9%. The Fund stated that stronger operating performance and an improved macroeconomic outlook supported these changes.

As of June 30, UzNIF's ordinary shares were trading at UZS 5.65, representing a 21.5% increase from their IPO offer price of UZS 4.65. The Fund's global depositary receipts (GDRs) were priced at $31.60, which was 26.4% above their IPO offer price of $25. UzNIF completed its IPOs on the London Stock Exchange and the Republican Stock Exchange “Toshkent” in May 2026.

For the six months ending June 30, the Fund reported gross dividend income of over $28.8 million (UZS 340.996 billion) from three portfolio companies: Thermal Power Plants, Uzbek Commodity Exchange, and Uzbektelecom. UzNIF also disclosed several developments that occurred after the reporting period concluded.

The Interdepartmental Tariff Commission approved revised regulated tariffs for electricity generation, transmission, distribution, and supply, as well as natural gas transportation and supply services. These revised tariffs became effective on August 1 and were publicly announced by Uzbekistan’s Ministry of Economy and Finance on August 7.

These changes apply to financial settlements among regulated energy-sector entities and do not impact tariffs paid by households, businesses, or other final consumers. Since the tariff revisions took place after the reporting date, they were not incorporated into UzNIF’s portfolio valuations as of June 30. The Fund stated that the impact of these changes on individual portfolio companies is still being assessed.

On August 13, UzNIF’s Supervisory Board called an Extraordinary General Meeting of Shareholders for September 16, 2026. A key agenda item is the proposed election of Hugh van Cutsem as an independent member of the Fund’s Supervisory Board. Shareholders will also consider the proposed remuneration and contractual arrangements related to this appointment.

UzNIF also reported a change in its ownership interest in Uzbekhydroenergo. Following an additional share issue by the company, the Fund’s interest in Uzbekhydroenergo was 37% as of June 30. After the reporting date and prior to the publication of the semi-annual report, UzNIF’s stake reverted to 40%. Separately, on August 11, the Supervisory Board of JSC Temiryo'linfratuzilma approved the appointment of a new chief financial officer. This candidate was recommended by UzNIF and is expected to commence work in early September.

UzNIF stated that it continued to implement governance changes across its portfolio during the first half of 2026. As of June 30, independent non-executive directors and directors appointed by Franklin Templeton constituted a majority on the supervisory boards of 11 out of UzNIF’s 13 portfolio companies. Marius Dan, General Director of Franklin Templeton Asset Management, which serves as the Fund's trustee, noted that UzNIF's focus during this period was on governance, operational discipline, and longer-term changes throughout its portfolio.

He highlighted that these first-half results were the Fund's first since its IPO completion in May and indicated that further transformation work across the portfolio remains. UzNIF’s complete Semi-Annual Report for the six months ending June 30, 2026, including its unaudited condensed interim financial statements, is anticipated to be published on the Fund’s website.