City of London Investment Group PLC Interim Management Statement / Trading Update (2493L)
April 18 2018 - 1:00AM
UK Regulatory
TIDMCLIG
RNS Number : 2493L
City of London Investment Group PLC
18 April 2018
City of London Investment Group PLC
18 April 2018
CITY OF LONDON INVESTMENT GROUP PLC
("City of London", "the Group" or "the Company")
INTERIM MANAGEMENT STATEMENT
QUARTERLY FUNDS UNDER MANAGEMENT ("FUM") UPDATE
City of London (LSE: CLIG), a leading specialist asset
management group focused on emerging markets and closed-end funds,
provides a third quarter trading update for the period 1 January
2018 to 31 March 2018. Total funds under management (FuM) at 31
March 2018 were US$5.4 billion (GBP3.9 billion). This compares with
US$5.3 billion (GBP3.9 billion) at the Company's half-year on 31
December 2017. A breakdown by strategy follows:
FuM ($mn) Strategy Index
% inc % inc
Dec-17 Mar-18 / Net /
(estimate) dec Flows dec
EM 4,660 4,634 -1% (38) MSCI EM 1%
DEV 337 433 28% 102 MSCI ACWI -1%
ACWI/Barclays
GTAA 139 150 8% 13 Global Agg 0%
Frontier 193 202 5% - MSCI Frontier 5%
5,329 5,419 77
---------- ------- ----------- ------ ------ --------------- ------
Positive relative investment performance was recorded in the
Developed strategy, whilst the EM, GTAA and Frontier strategies
underperformed. Sharply wider discount movements, driven by
increased volatility, drove relative performance, whilst the
Developed strategy benefitted from strong NAV performance. Net
flows were positive in aggregate over the period, particularly in
the Developed strategy which continues to benefit from a focused
marketing strategy and excellent long term investment results.
With regards 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.
In total the active pipeline is in excess of US$400 million, these
include opportunities that are spread across Emerging and Developed
Markets, Global Tactical Asset Allocation, Tactical Income, and
Frontier CEF strategies.
Operations
The Group's income accrues at a weighted average rate of
approximately 80 basis points, net of commissions and custody
charges. "Fixed" costs are cGBP1.0 million per month, and
accordingly the current run-rate for operating profit, before
profit-share at 30%, and an estimated EIP charge of 2%, is
approximately GBP1.5 million per month based upon current FuM and a
US$/GBP exchange rate of US$1.42 to GBP1.
Further to the City of London Investment Management press
release of 12th April (see link below), the Group received notice
of an appeal on 16th April. The City of London Investment Group
would estimate that at the present time the effect on the Group
P&L will not be material.
A link to that press release follows:
https://www.prnewswire.com/news-releases/city-of-london-issues-open-letter-to-stockholders-of-the-china-fund-300629156.html
Dividends
The interim dividend of 9 pence per share was paid on 16 March
2018. The Board will announce the final dividend on Tuesday 17 July
2018 in its pre-close trading update.
-ends-
For further information, please visit www.citlon.co.uk or
contact:
Barry Olliff (CEO) Tel: 001 215 313 3774
City of London Investment
Group PLC
Martin Green Tel: +44 (0)20 3829 5000
Zeus Capital Limited
Financial Adviser & Broker
This information is provided by RNS
The company news service from the London Stock Exchange
END
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