(Alliance News) - City of London Investment Group PLC on Monday reported a rise in funds under management over the first half, on a strong performance from the company's Developed funds.
At December 31, the company's total funds under management stood at USD6.02 billion, compared to USD5.40 billion at June 30, an 11% rise. At January 31, funds under management totaled USD5.8 billion.
CLIG's Emerging Markets funds ended the first half at USD4.43 billion, which represents a 5.0% rise over the six-month period.
The company's Developed funds grew by 52% to USD1.11 billion. Frontier funds were flat at USD206 million and Opportunistic Value/Tactical added 16% to USD270 million.
CLIG said its Emerging Markets strategies outperformed its benchmark, the MSCI EM Index, by an average of 0.8%, with the Developed strategies outperforming by an average of 3.5%.
Chair Barry Aling said: "Having established a successful platform as a manager of emerging market assets over many years, the group has been engaged for some time in the expansion and diversification of its asset base beyond the capacity-constrained EM universe. To do so organically is a slow process as management teams need to build a track record in the newer strategies while ensuring no dilution or weakening in the management of the core product."
The asset manager recorded USD182.0 million in net inflows in the six months to the end of December, with the company's Developed funds adding USD272.0 million which was partially offset by the USD118.0 million net outflows from its Emerging Markets funds.
CLIG declared an interim dividend of 10 pence, up from 9p the year before.
Pretax profit rose 21% year-on-year to GBP6.3 million from GBP5.2 million, as revenue grew 11% to GBP17.3 million from GBP15.6 million.
Looking ahead, Aling said: "Despite an increasingly fractious and polarised political world, equity markets made solid gains through much of 2019 and have entered the new decade in a similarly buoyant fashion."
Shares in City of London Investment Group were 0.1% lower in London on Monday morning at 462.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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City Lon Inv (CLIG)