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LONDON (Alliance News) - Emerging markets fund manager City of London Investment Group PLC on Monday said its funds under management fell in dollar terms in the year to the end of June due to the collapse in the value of the pound after the Brexit vote.
The firm said funds under management fell to USD4.0 billion in the financial year from USD4.2 billion. In sterling terms, funds under management at the end of June totalled GBP3.0 billion, compared to GBP2.7 billion a year earlier. The divergence resulted from sterling's sharp fall in value against the dollar following the UK's vote to leave the European Union.
Investment performance in its emerging markets closed-end fund strategy continued to prove strong, City of London Investment Group said, with results in the first or second quartile against peers in the year for its funds.
Pretax profit, however, is set to fall to GBP8.0 million from GBP8.9 million due to higher costs from the expansion of the business over the course of the year. The company expects to maintain its dividend payout at 16.00 pence.
Shares in the firm were up 0.2% to 318.00 pence Monday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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