City Lon Inv Regulatory News (CLIG)

26 Oct 2009 07:00



26 October 2009

CITY OF LONDON INVESTMENT GROUP PLC

("City of London", "the Company" or "the Group")

Annual General Meeting

Trading Update

The MSCI Emerging Markets Index (MXEF) has appreciated from 870 at the time that our Report and Accounts were prepared to around 960 at 22nd October. During this period funds under management ("FUM") have increased from $4.0 billion to $4.8 billion. This growth reflects the funding of around $350 million of the $500 million new mandates that were referred to by the Company's chief executive, Barry Olliff, in the Report and Accounts. We are still to receive slightly in excess of $150 million. Against this, however, it is likely that rebalancing activity may increase in the event that the emerging markets continue to outperform at the rate they have recently achieved.

With FuM rising from $3.5 billion at the start of the financial year to $4.7 billion at the end of September, unaudited profit before taxation for the first four months of the year stands at £2.9 million, matching that of the equivalent period last year. In sterling terms FuM now stands at £2.9 billion, some 20% above the previous peak in late 2007, and unaudited profit as measured in terms of monthly run-rate has also advanced to a new high. Clearly it is to be hoped that the coming months do not see a return to the volatility experienced last year, and that the steady growth enjoyed in the year to date is sustained.

We have continued to defer our intended upgrade to a full listing, determining that this should be reviewed following the end of the financial year within the context of full year profit and prospective dividend.

As the founding and largest shareholder, Barry Olliff has a stated policy of transparency about his intentions regarding his shareholding, and this is an approach which the Board considers to be very helpful. Barry increased his holding of Company shares in the previous year by 231,103 shares, through a mix of market purchases and option exercises, to the current level of 5,243,683 shares. Now, in the event that the Company's share price achieves 310p he intends to sell 500,000 shares, and he would intend, subject to close period restrictions and other regulatory requirements, to undertake the same at 350p and 400p. Should these intentions alter, perhaps as a result of a material change in market conditions, Barry has undertaken to inform the Board promptly, and an appropriate announcement will be released forthwith.

For the benefit of shareholders a recent shareholder presentation has today been added to our web site.

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