City of Lon Inv Grp

QUARTERLY FUNDS UNDER MANAGEMENT ("FUM") UPDATE

RNS Number : 2678W
City of London Investment Group PLC
16 April 2019
 

City of London Investment Group PLC

16 April 2019



 CITY OF LONDON INVESTMENT GROUP PLC

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

 

INTERIM MANAGEMENT STATEMENT

QUARTERLY FUNDS UNDER MANAGEMENT ("FUM") UPDATE

 

City of London (LSE: CLIG), a leading specialist asset management group offering a range of institutional products investing in closed-end funds, announces that as at 31 March 2019, FuM were US$5.3 billion (£4.1 billion). This compares with US$4.6 billion (£3.6 billion) at the Company's half-year on 31 December 2018. A breakdown by strategy follows:

 

 

FuM ($mn)

 

 

 

Strategy Index

 

 

 

 

 

 

 

 

 

 

 

 

 

Mar-19

Dec-18

%

 

Net

 

 

 

%

 

(estimate)

inc/dec

 

Flows

 

 

 

inc/dec

 

 

 

 

 

 

 

 

 

 

EM

4,180

3,732

12%

 

45

 

MSCI EM

 

10%

DEV

660

495

33%

 

101

 

MSCI ACWI

 

12%

Frontier

201

197

2%

 

-

 

MSCI Frontier

 

7%

Opportunistic Value

227

199

14%

 

7

 

ACWI/Barclays Global Agg

 

7%

 

5,268

4,623

 

 

153

 

 

 

 

                     

 

The Emerging Market, Developed and Opportunistic Value Strategies outperformed due to narrowing discounts and to a lesser extent, positive NAV performance.  The Frontier Strategy underperformed largely due to unfavourable NAV performance.

 

During the period under review, the Developed and EM strategies recorded net inflows of US$101 million and US$45 million, respectively. Net flows in the Opportunistic Value and Frontier strategies were essentially flat.

 

With regard to business development, the Group continues to maintain an active pipeline across all of its major CEF offerings, with increased interest continuing to be seen in the non-Emerging Market CEF strategies (i.e. Developed, Opportunistic Value).

 

Operations

The Group's income currently accrues at a weighted average rate of approximately 76 basis points of FuM, net of third party commissions. "Fixed" costs are c£1.1 million per month, and accordingly the current run-rate for operating profit, before profit-share of 30% and an estimated EIP charge of 5%, is approximately £1.5 million per month based upon current FuM and a US$/£ exchange rate of US$1.3 to £1 as at 31 March 2019.

 

 

Dividends

An interim dividend of 9 pence per share plus a special dividend of 13.5 pence per share was paid on 22 March 2019. The Board will announce the final dividend on Tuesday 16 July 2019 in its pre-close trading update.

 

                                                                                                                           

 

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

 

Tom Griffith, CEO

City of London Investment Group PLC

Tel: 001-610-380-0435

 

Martin Green

Zeus Capital Limited

Financial Adviser & Broker

Tel: +44 (0)20 3829 5000


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