Quarterly Funds under Management ("FuM") Update

RNS Number : 3991B

City of London Investment Group PLC

04 March 2014

 



4 March 2014

CITY OF LONDON INVESTMENT GROUP PLC

("City of London" or "the Group")

INTERIM MANAGEMENT STATEMENT

Quarterly Funds under Management ("FuM") Update

City of London (LSE: CLIG), a leading emerging markets asset management group, provides an Interim Management Statement for the period 1 December 2013 to 28 February 2014.

Funds under Management

As at 28 February 2014, FuM were US$3.4 billion (£2.0 billion). This compares to US$3.5 billion (£2.1 billion) at the end of the first six months of the year on 30 November 2013. In US dollar terms, this represents a fall of 3%, as compared to a 5% fall in the MSCI Emerging Markets Index over the same period. Net inflows of $55 million have been confirmed for funding during March 2014.

Operations

The Group's income is currently accruing at a weighted average rate of approximately 86 basis points, net of commissions, which is consistent with the forward guidance provided in the half year report. "Fixed" costs are running to budget at £0.8 million per month, accordingly, the current run-rate for operating profit, before profit-share, is approximately £0.6 million per month based upon current FuM and a US$/£ exchange rate of US$1.67 to £1. Additional cost efficiencies in excess of £0.5 million are currently being implemented, some of which will accrue in this financial year and some of which will accrue next year.

Subject to final agreement, the Board expects to extend Chief Executive Barry Olliff's employment agreement until 2019. This follows the previously announced handing over of his Emerging Market CIO responsibilities to Mark Dwyer by September 2015.

Dividends

The interim dividend of 8 pence per share was paid on 28 February 2014; the Board has not revised its position on the final dividend as communicated to shareholders in the Interim Statement released on 20 January 2014.

Due to the change in year end from 31 May to 30 June the Group's pre-close trading update will now be released on 15 July 2014.

For further information, please visit www.citlon.co.uk or contact:

Barry Olliff, Chief Executive Officer	Martin Green
City of London Investment Group PLC	Canaccord Genuity Limited
Tel: [phone]	Broker and Financial Adviser
	Tel: [phone]

This announcement contains forward-looking statements with respect to the financial condition, results and business of City of London Investment Group PLC. By their nature, forward looking statements involve risk and uncertainty and there may be subsequent variations to estimates. City of London Investment Group PLC's actual future results may differ materially from the results expressed or implied in these forward-looking statements. Nothing in this announcement should be construed as or is intended to be a solicitation for or an offer to provide investment advisory services.

 

END

 

 

MSCBLGDXSXGBGSX