City Lon Inv Regulatory News (CLIG)

CITY OF LONDON INVESTMENT GROUP PLC

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

INTERIM MANAGEMENT STATEMENT

AGM Trading Update

City of London (LSE: CLIG), a leading emerging markets asset management group, provides an Interim Management Statement for the period 31st May 2012 to 30th September 2012. City of London's Annual General Meeting is being held today.

The European debt crisis and slowing economic growth in China have continued to affect institutional appetite for risk assets, including emerging markets. Net client withdrawals since 31st May 2012 totalled $360 million. As noted in the Final Results announcement of 3rd September 2012, these were largely prompted by rebalancing of risk assets by asset allocators, although in some instances recent underperformance of the underlying NAVs and some discount widening was a factor. Approximately $120 million of net withdrawals is anticipated for the final quarter of the calendar year, based upon client instructions received.

Funds under Management

As at 30th September 2012, FuM were US$4.5 billion (£2.8 billion). This compares to US$4.5 billion (£2.9 billion) at the Company's year-end on 31st May 2012. In US dollar terms, allowing for client withdrawals, this represents marginal underperformance against the MSCI Emerging Markets Index, which increased by 12% over the same period.

Operations

The Group's income accrues at a weighted average rate of approximately 86 basis points, net of commissions. "Fixed" costs remain in line with budget at £0.9 million per month, and accordingly the current run-rate for operating profit, before profit-share at 30%, is approximately £1.2 million per month based upon current FuM and a US$/£ exchange rate of US$1.62 to £1. The Group estimates that post-tax profit for the first four months of the year will be approximately £2.2 million.

In a difficult marketing environment, we continue to raise profile for the Developed Closed-End Fund product and the Frontier Emerging Markets product. In addition, as the firm now has its own US$100 million Qualified Foreign Institutional Investor quota, the China A Share Closed-End Fund strategy is beginning to attract interest from prospects.

Dividends

The final dividend of 16 pence per share, subject to approval at today's AGM, will be paid on 19th October 2012, bringing the total dividend for the financial year 2011-12 to 24 pence. The Board expects to maintain the dividend during the current year. This may require a relaxation of the Group's 1.5x dividend cover policy, which the Group is well placed to accommodate in terms of both capital adequacy and liquidity.

Board composition

As previously announced, David Cardale will replace Andrew Davison as Chairman at the conclusion of the AGM. Lynn Ruddick will take over from David Cardale as the Senior Independent Director, and Allan Bufferd will become chairman of the Remuneration Committee.

Half year results for the six months to 30th November 2012 will be announced on 23rd January 2013.

For further information please visit www.citlon.co.uk or contact:

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