Last checked at 8 Mar 2010 07:00
CITY OF LONDON INVESTMENT GROUP PLC
("City of London" or "the Company")
FUNDS UNDER MANAGEMENT AS AT 26 FEBRUARY 2010
City of London Investment Group PLC (AIM: CLIG), a leading emerging market asset management group, announces its total funds under management (FuM) quarterly. As at 26 February 2010, the FuM were US$4.5 billion (£2.9 billion). This compares to US$4.7 billion (£2.9 billion) at the Company's half year end on 30 November 2009, US$3.5 billion (£2.3 billion) at the 31 May 2009 year end and US$2.2 billion (£1.5 billion) on 27 February 2009.
In dollar terms, the quarter on quarter decrease in FuM of 6.7% compares with a fall of 1.8% in the MSCI Emerging Markets Index (MXEF) during the same period, as client rebalancing led to approximately US$223 million of redemption activity, but it is notable that in sterling terms FuM has actually increased by 1.2% over the quarter as a result of sterling weakness. As referenced in the interim statement, this rebalancing was expected as a result of the significant recent outperformance of the emerging markets relative to global developed, and we have a healthy pipeline of potential clients and mandates through which to replace those assets. The year on year FuM increase at 101.0%, again in dollar terms, compares to an 87.4% rise in MXEF. The difference reflects net new mandates and out-performance.
One year ago we said that we were "unfashionably optimistic" regarding our asset class. As of today our view remains the same, though it can perhaps be said that this is now more closely reflected in mainstream opinion and market commentary. That is not to say that we were or have become complacent, and our commitment to growing our business through a cautious diversification program, primarily centered on the development of our established equities expertise, is undiminished. This program is long term, and while the progress that has been made is therefore hard to demonstrate, we are confident that shareholders and employees will be rewarded for their patience.
The interim dividend of 7 pence per share was paid last week, and with one quarter of our financial year to go, we anticipate that our one third/two thirds policy will be consistent with our target cover ratio for the current year, which would be slightly below the long term policy level of 1.5x.
For further information contact:
| Doug Allison | Jeff Keating | Simon Hudson |
| Finance Director | Singer Capital Markets Ltd | Andrew Dunn |
| City of London Investment Group plc | Joint Broker | Tavistock Communications |
| Tel: 020 7711 0771 | Tel: 020 3205 7500 | Tel: 020 7920 3150 |
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| Chris Sim |
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| Evolution Securities Limited |
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| Joint Broker |
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| Tel: 020 7071 4300 |
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