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City of Lon Inv Grp (CLIG)

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Wednesday 18 April, 2018

City of Lon Inv Grp

Interim Management Statement / Trading Update

RNS Number : 2493L
City of London Investment Group PLC
18 April 2018
 

City of London Investment Group PLC

18 April 2018

 

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 focused on emerging markets and closed-end funds, provides a third quarter trading update for the period 1 January 2018 to 31 March 2018.  Total funds under management (FuM) at 31 March 2018 were US$5.4 billion (£3.9 billion).  This compares with US$5.3 billion (£3.9 billion) at the Company's half-year on 31 December 2017.  A breakdown by strategy follows:

 


FuM ($mn)




Strategy Index












Dec-17

Mar-18

% inc /


Net



% inc /



(estimate)

dec


Flows



dec










EM

4,660

4,634

-1%


(38)


MSCI EM

1%

DEV

337

433

28%


102


MSCI ACWI

-1%

GTAA

139

150

8%


13


ACWI/Barclays Global Agg

0%

Frontier

193

202

5%



MSCI Frontier

5%


5,329

5,419



77




 

Positive relative investment performance was recorded in the Developed strategy, whilst the EM, GTAA and Frontier strategies underperformed. Sharply wider discount movements, driven by increased volatility, drove relative performance, whilst the Developed strategy benefitted from strong NAV performance.  Net flows were positive in aggregate over the period, particularly in the Developed strategy which continues to benefit from a focused marketing strategy and excellent long term investment results.

 

With regards to business development, the Group continues to maintain an active pipeline across all of its major CEF offerings with an increased interest in the diversification CEF strategies. In total the active pipeline is in excess of US$400 million, these include opportunities that are spread across Emerging and Developed Markets, Global Tactical Asset Allocation, Tactical Income, and Frontier CEF strategies.   

 

Operations

 

The Group's income accrues at a weighted average rate of approximately 80 basis points, net of commissions and custody charges. "Fixed" costs are c£1.0 million per month, and accordingly the current run-rate for operating profit, before profit-share at 30%, and an estimated EIP charge of 2%,  is approximately £1.5 million per month based upon current FuM and a US$/£ exchange rate of US$1.42 to £1.

 

Further to the City of London Investment Management press release of 12th April (see link below), the Group received notice of an appeal on 16th April. The City of London Investment Group would estimate that at the present time the effect on the Group P&L will not be material.

A link to that press release follows:

https://www.prnewswire.com/news-releases/city-of-london-issues-open-letter-to-stockholders-of-the-china-fund-300629156.html

 

 

Dividends

 

The interim dividend of 9 pence per share was paid on 16 March 2018. The Board will announce the final dividend on Tuesday 17 July 2018 in its pre-close trading update.

 

-ends-

 

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

 

Barry Olliff (CEO)            

City of London Investment Group PLC

 

Tel: 001 215 313 3774

Martin Green    

Zeus Capital Limited

Financial Adviser & Broker

Tel: +44 (0)20 3829 5000

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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