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9 Oct 2019 07:55
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City of London Investment Group PLC
9 October 2019
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9th October 2019
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CITY OF LONDONΒ INVESTMENT GROUP PLC
("City of London", "the Company" or "the Group")
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Trading Update - 1st Quarter Funds under Management (FuM)
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City of LondonΒ (LSE: CLIG), a leading specialist asset management group offering a range of institutional products investing in closed-end funds, announces that as at 30th September 2019, FuM wereΒ US$5.3 billionΒ (Β£4.3 billion). This compares withΒ US$5.4 billionΒ (Β£4.3 billion) at the Company's year-end on 30th June 2019. A breakdown by strategy follows:
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Β | FuM ($mn) | Β | Β | Β | Strategy Index | Β | Β | |||
Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | |
Β | Sep-19 | Jun-19 | % | Β | Net | Β | Β | Β | % | |
Β | (estimate) | inc/dec | Β | Flows | Β | Β | Β | inc/dec | ||
Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | |
EM | 4,058 | 4,221 | -3.9% | Β | -12 | Β | MSCI EM | Β | -4.2% | |
DEV | 849 | 729 | 16.5% | Β | 142 | Β | MSCI ACWI xUS | Β | -1.8% | |
Opportunistic Value | 245 | 233 | 5.2% | Β | 10 | Β | ACWI/Barclays Global Agg | Β | 0.4% | |
Frontier | 186 | 206 | -9.7% | Β | - | Β | S&P Frontier 150 | Β | -5.6% | |
Β | 5,338 | 5,389 | Β | Β | 140 | Β | Β | Β | Β | |
| Β | Β | Β | Β | Β | Β | Β | Β | Β | Β | Β |
Funds under Management excludes seed investments
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IM Performance
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IM performance was ahead of the benchmark over the quarter. Specifically, in the Emerging Market strategy NAV performances were positive and discounts narrowed marginally. In the Developed strategy relative returns were impacted by weak NAV performance from European and UK securities. In the Frontier strategy performance was negative due to exposure to Argentina.
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There were continued flows into the Developed and Opportunistic Value strategies totaling $152 million, while flows were negative in the Emerging strategy and neutral in the Frontier strategy.
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Operations
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The Group's income currently accrues at a weighted average rate of approximately 75 basis points of FuM, net of third party commissions. "Fixed" costs are c.Β Β£1.1 millionΒ per month, and accordingly the current run-rate for operating profit, before profit-share of 30% and an estimated EIP charge of 5%, is approximatelyΒ Β£1.6 millionΒ per month based upon current FuM and a US$/Β£ exchange rate ofΒ US$1.23Β toΒ Β£1Β as at 30th September 2019.
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The Group estimates that the post-tax profit for the first three months of the year will be approximatelyΒ Β£2.4 millionΒ (2018:Β Β£2.2 million).
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Dividends
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The final dividend ofΒ 18 penceΒ per share, subject to approval at the AGM on 21st October 2019, will be paid on the 29th October 2019, bringing the total dividend for the financial year 2018-19 toΒ 40.5 pence, including the special dividend of 13.5 pence paid in MarchΒ (2017-18:Β 27 pence, special dividend : nil).
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Board Change
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City of London Investment Group is pleased to announce that Mr. Carlos M Yuste will be joining the Board as an Executive Director as of 1st January 2020. Carlos is the Head of Business Development. He served on the Board as the Business Development Director from CLIG's initial listing in 2006 through 2015.
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There is no further information required to be disclosed pursuant to paragraph 9.6.13R of the Listing Rules.Β
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For further information, please visit http://www.citlon.co.uk/ or contact:
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Tom Griffith, CEO
City of London Investment Group PLC
Tel: 001-610-380-0435
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Martin Green
Zeus Capital Limited
Financial Adviser & Broker
Tel: +44 (0)20 3829 5000
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