UzNIF increased net assets by 6.1% in the first half of the year

UzNIF Increased Net Assets by 6.1% in the First Half

The National Investment Fund of the Republic of Uzbekistan (UzNIF) announced a 6.1% increase in net asset value (NAV) for the first half of 2026, reaching 31.67 billion soums (US$2.63 billion) as of June 30. The Fund's press release was published on August 28 in London and Tashkent.

The Fund, whose shares are listed on the London Stock Exchange and the Tashkent Stock Exchange, presented unaudited financial results for the six-month period ending June 30, 2026. Net asset value per share amounted to 6.2659 soums. Taking into account the five-for-one share consolidation conducted in April 2026, the comparable NAV per share increased by approximately 6.1% compared to UZS 5.9082 as of December 31, 2025. The Fund cited the portfolio revaluation in June 2026 as the main driver of this growth.

Since its listing on May 18, 2026, the UzNIF share price has increased by 21.5%, from UZS 4.65 to UZS 5.65, while the price of global depositary receipts (GDRs) has increased by 26.4%, from USD 25.00 to USD 31.60.

The Fund cited shares of Thermal Power Plants JSC (+114%), National Electric Grids of Uzbekistan JSC (+81%), and Regional Electric Grids JSC (+50%) as the key drivers of portfolio growth. The growth of these companies is driven by positive regulatory changes in the electricity generation and distribution sector, including the introduction of the regulated asset base (RAB) mechanism. Uzbektelecom JSC (+30%) and SQB JSCB (+9%) also saw growth in value, driven by improved operating performance and a favorable macroeconomic outlook.

During the reporting period, the Fund received gross dividends of 340,996 million soums from three portfolio companies: Thermal Power Plants JSC, Uzbek Republican Commodity Exchange JSC, and Uzbektelecom JSC.

Events after the reporting date

After June 30, the Interdepartmental Tariff Commission approved revised regulated tariffs for electricity generation, transmission, distribution, and supply, as well as for natural gas transportation and supply services. The new tariffs came into effect on August 1 and were published by the Ministry of Economy and Finance on August 7. They apply to settlements between entities in the regulated energy sector and do not affect tariffs for households, businesses, and other end consumers. These tariffs were not included in the Fund's financial statements as of June 30; their impact on portfolio companies is currently being assessed.

On August 13, the Supervisory Board of UzNIF convened an extraordinary general meeting of shareholders, which will take place on September 16. The agenda includes a proposal to elect Hugh van Cutsem as an independent member of the Supervisory Board and the approval of his remuneration terms.

UzNIF's stake in Uzbekhydroenergo JSC temporarily decreased to 37% following the issue of additional shares, but after the reporting date and before the publication of the semi-annual report, it rebounded to 40%.

On August 11, the Supervisory Board of Temiryulinfratuzilma JSC approved the appointment of a new CFO, recommended by UzNIF. He is expected to assume his duties in early September.

Trustee Commentary

Marius Dan, CEO of Franklin Templeton Asset Management LLC and the Fund's trustee, noted that the first half of 2026 was a period of strengthening corporate governance and laying the foundation for portfolio company value growth following the Fund's successful IPO in May 2026. He noted that as of June 30, independent non-executive directors and directors appointed by Franklin Templeton constituted a majority on the supervisory boards of eleven of the Fund's thirteen portfolio companies, including ten recently elected independent non-executive directors.

Dan added that significant work remains to be done to transform the portfolio companies, but the Fund is already recording positive momentum and remains focused on creating long-term value for shareholders.

UzNIF was established in accordance with Presidential Resolution No. PP-303 of August 27, 2024, as part of Uzbekistan's economic reform program. The Fund's diversified portfolio includes stakes ranging from 25% to 40% in 13 state-owned enterprises operating in the areas of transportation, financial services, energy, public utilities, and telecommunications.