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(Alliance News) - City of London Investment Group PLC on Monday hiked its dividend following a rise in funds under management due to inflows from its Developed Market strategies.
As at June 30, City of London Investment's funds under management totaled USD5.4 billion, up 6% from USD5.1 billion the year before, due to net inflows of USD253 million in Developed Markets strategies and USD48 billion in Opportunistic Value strategies.
This strong performance more than offset net outflows of USD205 million in Emerging Markets and Frontier strategies as clients rebalanced their equity exposure.
In sterling terms, funds under management rose by 10% to GBP4.3 billion from GBP3.9 billion.
However, City of London's pretax profit for the year to June 30 fell by 11% to GBP11.4 million from GBP12.8 million the prior year, on revenue that also declined by 5.9% to GBP31.9 million from GBP33.9 million.
The revenue fall was due to an erosion in general fees and the current business mix, with non-Emerging Market strategies, which attract lower fees now representing 22% of funds under management, compared to 18% the year before.
City of London Investment recommended a final dividend of 18 pence per share, leading to a total payout of 40.5p, up 50% from 27p the prior year.
"Notwithstanding the more benign market conditions of recent months, it is clear that equity markets remain highly susceptible to geopolitical influences, be it growing protectionism or ongoing tensions in the Middle East, for example. Suffice it to say that we remain cautiously optimistic that our commitment to deliver above average performance, via the defensive benefits of closed-end fund instruments, to a loyal client base is unwavering and will, we believe, continue to serve their interests over the longer term," said Chair Barry Aling.
Shares in City of London Investment Group were down 0.5% at 417.89 pence on Monday.
