Last checked at 8 Oct 2015 07:00
CITY OF LONDON INVESTMENT GROUP PLC
("City of London", "the Company" or "the Group")
Trading Update - 1st Quarter Funds under management (FuM)
City of London (LSE: CLIG), a leading emerging markets asset management group, announces that as at 30th September 2015, FuM were US$3.6 billion (£2.4 billion). This compares with US$4.2 billion (£2.7 billion) at the Company's year-end on 30th June 2015. In US dollar terms, this represents a fall of c14% compared to the MSCI Emerging Markets Index (US dollar based), which fell by c18% over the same period.
Despite the recent market volatility, the Board is encouraged by the diversity in the current pipeline of potential mandates, with c$750 million spread across EM, Frontier, Developed and Tactical Asset Allocation asset classes. As a result the Company is hopeful that at least a net $250 million of additional FuM should be achievable over the next 6-9 months.
Monthly updates of FuM are available on our website -www.citlon.co.uk.
Operations
The Group's income currently accrues at a weighted average rate of approximately 85 basis points, net of third party commissions. "Fixed" costs for the quarter were a little over £0.8 million per month, and accordingly the current run-rate for operating profit, before profit-share at 30%, is approximately £0.8 million per month based upon current FuM and a US$/£ exchange rate of US$1.52 to £1. The Group estimates that the post-tax profit for the first three months of the year will be approximately £1.2 million, after an unrealised loss on seed investments of £0.2 million.
Appropriate steps are being taken to reduce the firm's overhead.
Having provided shareholders with both a template and assumptions via which they can determine their own estimate of CLIG's profitability, shareholders can accordingly adjust their estimates based on the recent fall in markets.
Dividends
The final dividend of 16 pence per share, subject to approval at the AGM on 19th October, will be paid on 30th October 2015, bringing the total dividend for the financial year 2014-15 to 24 pence.
Investor afternoon
Shareholders and other interested parties are invited to attend our investor afternoon starting at 3pm on 19th October at the offices of Canaccord Genuity Limited, 88 Wood Street, London EC2V 7QR.
Presentations will include: Managing the P&L through a difficult market environment, Core values, EM CEF strategy, EM-What could go right?, Diversification CEF strategies and US marketing initiatives.
If you would like to attend then please email investorrelations@citlon.co.uk as spaces are limited.
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
Roger Lambert
Canaccord Genuity Limited
Financial Adviser & Broker
Tel: +44 (0)20 7523 8000