City of Lon Inv Grp

Trading Update 1st Quarter Funds under Management

RNS Number : 2626P
City of London Investment Group PLC
09 October 2019
 

 

City of London Investment Group PLC

9 October 2019





9th October 2019

 

CITY OF LONDON INVESTMENT GROUP PLC

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

 

Trading Update - 1st Quarter Funds under Management (FuM)

 

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 30th September 2019, FuM were US$5.3 billion (£4.3 billion). This compares with US$5.4 billion (£4.3 billion) at the Company's year-end on 30th June 2019. A breakdown by strategy follows:

 

 

FuM ($mn)

 

 

 

Strategy Index

 

 

 

 

 

 

 

 

 

 

 

 

 

Sep-19

Jun-19

%

 

Net

 

 

 

%

 

(estimate)

inc/dec

 

Flows

 

 

 

inc/dec

 

 

 

 

 

 

 

 

 

 

EM

4,058

4,221

-3.9%

 

-12

 

MSCI EM

 

-4.2%

DEV

849

729

16.5%

 

142

 

MSCI ACWI xUS

 

-1.8%

Opportunistic Value

245

233

5.2%

 

10

 

ACWI/Barclays Global Agg

 

0.4%

Frontier

186

206

-9.7%

 

-

 

S&P Frontier 150

 

-5.6%

 

5,338

5,389

 

 

140

 

 

 

 

                     

Funds under Management excludes seed investments

 

IM Performance

 

IM performance was ahead of the benchmark over the quarter.  Specifically, in the Emerging Market strategy NAV performances were positive and discounts narrowed marginally.  In the Developed strategy relative returns were impacted by weak NAV performance from European and UK securities. In the Frontier strategy performance was negative due to exposure to Argentina.

 

There were continued flows into the Developed and Opportunistic Value strategies totaling $152 million, while flows were negative in the Emerging strategy and neutral in the Frontier strategy.

 

Operations

 

The Group's income currently accrues at a weighted average rate of approximately 75 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 £1.6 million per month based upon current FuM and a US$/£ exchange rate of US$1.23 to £1 as at 30th September 2019.

 

The Group estimates that the post-tax profit for the first three months of the year will be approximately £2.4 million (2018: £2.2 million).

 

Dividends

 

The final dividend of 18 pence per share, subject to approval at the AGM on 21st October 2019, will be paid on the 29th October 2019, bringing the total dividend for the financial year 2018-19 to 40.5 pence, including the special dividend of 13.5 pence paid in March (2017-18: 27 pence, special dividend : nil).

 

Board Change

 

City of London Investment Group is pleased to announce that Mr. Carlos M Yuste will be joining the Board as an Executive Director as of 1st January 2020.  Carlos is the Head of Business Development. He served on the Board as the Business Development Director from CLIG's initial listing in 2006 through 2015.     

 

There is no further information required to be disclosed pursuant to paragraph 9.6.13R of the Listing Rules. 

 

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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