City Lon Inv Regulatory News (CLIG)

8 Dec 2008 07:00



8 December 2008

CITY OF LONDON INVESTMENT GROUP PLC

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

FUNDS UNDER MANAGEMENT AS AT 30 NOVEMBER 2008

City of London Investment Group PLC (AIM: CLIG), a leading emerging market asset management group, announces its total funds under management (FUM) quarterly. At the Company's half year end on 30 November 2008 the FUM were US$2.1 billion (£1.38 billion). This compares to US$3.9 billion (£2.2 billion) at the end of the first quarter in August 2008, US$4.7 billion (£2.4 billion) at the May 2008 year end and US$4.6 billion (£2.2 billion) at the end of November 2007.

The quarter on quarter decline in FUM of 46% is approximately in line with the 45% fall in the MSCI Emerging Markets Index (MXEF) during the same period. The year on year FUM decline, at 54%, compares with a 57% fall in MXEF.

In what has proven to be a difficult market environment, CLIG continues to adhere to its core values. Emphasis is placed upon delivering superior investment performance to its clients' accounts, thereby enabling CLIG to maintain its strong record of client retention whilst benefitting from significant inflows. Rebalancing by existing clients in favour of their emerging market investments, together with future subscriptions from new clients, total c. $400m over the next quarter, including a subscription of c. $300m which would represent CLIG's largest client to date. While profitability has been significantly reduced as a result of global market conditions, current trading is broadly in line with market expectations, and the Company's balance sheet continues to demonstrate strong liquidity free of any leverage or discernible counterparty risk.

City of London expects to announce interim results for the six months ended 30 November 2007 on 29 January 2008.

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