City Lon Inv Regulatory News (CLIG)

City of London Investment Group PLC

14 January 2020



CITY OF LONDON INVESTMENT GROUP PLC

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

FUNDS UNDER MANAGEMENT AS AT 31 December 2019,

TRADING UPDATE

City of London (LSE: CLIG), a leading specialist asset management group offering a range of institutional products investing in closed-end funds, announces that as at 31 December 2019, FuM were US$6 billion (£4.5 billion). This compares with US$5.4 billion (£4.3 billion) at the Company's year-end on 30 June 2019. A breakdown by strategy follows:

 Excludes seed investments

The EM and International Developed strategies outperformed, driven by narrower discounts, positive country allocation and good NAV performance. The Opportunistic Value Strategy outperformed led by good NAV performance and significant discount narrowing. The Frontier strategy underperformed due primarily to negative country allocation and discount widening.

During the period under review, the Developed strategies recorded net inflows of $272 million. The EM strategies saw net outflows of $118 million. We have to date received notification of circa $200 million of net inflows in aggregate across all strategies, which we expect to fund over the next quarter.

With regard to business development, the Group continues to maintain an active pipeline across all of its major CEF offerings with an increased interest in the diversification CEF strategies. 

Operations

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£1.1 million per month, and accordingly the current run-rate for operating profit, before profit-share of 30% and an EIP charge of 5%, is approximately £1.8 million per month based upon current FuM and a US$/£ exchange rate of US$1.3257 to £1 as at 31 December 2019.

The Group estimates the unaudited profit before taxation for the six months ended 31 December 2019 to be approximately £6.3 million, which compares with £5.2 million for the equivalent period to 31 December 2018.

The Company is currently in a close period which will end with the publication of results for the six months ended 31 December 2019 on 17 February 2020.

Dividend

In recognition of the improved results and having regard to the current dividend cover policy the Board has decided to increase the interim dividend by 1p to 10p per share, which will be paid on 20 March 2020 to shareholders registered at the close of business on 6 March 2020 (2019: 9 pence).

Template

Please see the attached graph which is based on the following assumptions and includes the estimated quarterly cost of the dividend:

http://www.rns-pdf.londonstockexchange.com/rns/6507Z_1-2020-1-13.pdf

Key assumptions:

(June 2019 comparatives in Italics)

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

Tom Griffith, CEO

City of London Investment Group PLC

Tel: 001-610-380-0435

Martin Green

Zeus Capital Limited

Financial Adviser & Broker

Tel: +44 (0)20 3829 5000