(Alliance News) - Asset manager City of London Investment Group PLC on Tuesday said it ended the first half with more funds under management than it opened the period with, thanks to its Developed funds segment seeing strong growth.
At December 31, CLIG's funds under management stood at USD6.01 billion, up 12% from the USD5.39 billion recorded at the end of June.
The asset manager's Emerging Markets funds added 5.0% over the first half to end the period at USD4.43 billion, while International Developed grew 54% to USD1.12 billion. Opportunistic Value funds added 16% and Frontier funds were flat at period-end.
CLIG noted its Emerging Market funds underperformed the MSCI EM Index, which grew 7% in the six month period, but its Developed Funds sharply outperformed the MSCI ACWI Index, which added 7%. Opportunistic Value also outperformed its benchmark and Frontier matched its comparative index.
"During the period under review, the Developed strategies recorded net inflows of USD272 million. The EM strategies saw net outflows of USD118 million. We have to date received notification of circa USD200 million of net inflows in aggregate across all strategies, which we expect to fund over the next quarter," CLIG said.
In total, CLIG saw USD182 million of net inflows in the first half.
The asset manager expects its pretax profit for the first half to be about GBP6.3 million, which would represent a 21% increase on the GBP5.2 million reported the year before.
As a result, CLIG is increasing its interim dividend by 11% to 10 pence.
CLIG expects to report its interim results on February 17.
Shares in City of London Investment Group were 3.3% higher in London on Tuesday at 457.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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City Lon Inv (CLIG)