Last checked at 9 Oct 2017 07:00
9th October 2017
CITY OF LONDON INVESTMENT GROUP PLC
("City of London", "the Company" or "the Group")
AGM Trading Update - 1st Quarter Funds under Management (FuM)
City of London (LSE: CLIG), a leading specialist asset management group focused on emerging markets and closed-end funds, announces that as at 30th September 2017, FuM were US$5.0 billion (£3.7 billion). This compares with US$4.7 billion (£3.6 billion) at the Company's year-end on 30th June 2017. In US dollar terms, this represents an increase over the 3 month period of 6% as compared with the MSCI EM T/R Index which rose by 8% and the MSCI World T/R index which rose 5% over the same period.
As a result of rebalancing, the Group continues to see some redemption requests but, by way of offset, it has a robust pipeline of potential business.
Operations
The Group's income currently accrues at a weighted average rate of approximately 84 basis points of FuM, net of third party commissions. "Fixed" costs are c. £1.0 million per month, and accordingly the current run-rate for operating profit, before profit-share of 30% and an estimated EIP charge of 2%, is approximately £1.6 million per month based upon current FuM and a US$/£ exchange rate of US$1.34 to £1 as at 30th September 2017.
The Group estimates that the post-tax profit for the first three months of the year will be approximately £2.5 million (2016: £2.3 million, after an unrealised profit on seed investments of £0.2 million).
Dividends
The final dividend of 17 pence per share, subject to approval at the AGM on 23rd October 2017, will be paid on 31st October 2017, bringing the total dividend for the financial year 2016-17 to 25 pence (2015-16: 24 pence).
Investor Afternoon
The Group will be hosting an investor afternoon at the London Stock Exchange on 23rd October 2017 from 2pm for investors, analysts and any other interested parties. For further details and to register, please email: investorrelations@citlon.co.uk
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