City of London Investment Group PLC PRE-CLOSE TRADING UPDATE for year to 30 June 2020 (8817S)
July 14 2020 - 1:00AM
UK Regulatory
TIDMCLIG
RNS Number : 8817S
City of London Investment Group PLC
14 July 2020
City of London Investment Group PLC
14 July 2020
The information contained within this announcement is deemed by
the Group to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
CITY OF LONDON INVESTMENT GROUP PLC
("City of London" or "the Group" or "the Company")
PRE-CLOSE TRADING UPDATE for the year to 30 June 2020
City of London (LSE: CLIG), a leading specialist asset
management group focused on closed-end funds and REITs across
emerging and developed markets, provides a pre-close trading update
for its financial year ended 30 June 2020. The numbers that follow
are unaudited.
Funds under management were US$5.5 billion (GBP4.4 billion) at
30 June 2019 (2019: US$5.4 billion or GBP4.2 billion), representing
a 2% increase in US$ terms for the year. A breakdown by strategy
follows:
FuM ($mn) Strategy Index
Jun-20 Jun-19 % Net %
(estimate) inc/dec Flows inc/dec
EM 3,828 4,221 -9% (275) MSCI EM -3%
DM 1,244 729 71% 551 MSCI ACWI -5%
ACWI/Barclays Global
OV 256 233 10% 46 Agg 4%
Frontier 175 206 -15% 16 MSCI Frontier -11%
5,503 5,389 338
---------- ---------------- -------------- -------- ------- --------------------- --------
Funds under Management excludes seed investments
The Emerging Market (EM) and Developed Strategies (DM)
outperformed over the year, the Opportunistic Value (OV) and
Frontier strategies underperformed. Both the EM and DM strategies
benefitted from good country allocation. The Frontier strategy
suffered from weak NAV performance, particularly impactful among
Argentine holdings while the OV strategy suffered from negative
allocation effects. In addition, as discounts widened significantly
across CEF sectors, most notably in Q1 2020, all the strategies
suffered to some extent from this factor over the 12 month
period.
During the year under review, the OV and DM strategies recorded
combined net inflows of $597 million. The Frontier strategy saw net
inflows of $16 million while the EM strategy saw net outflows of
$275 million.
Operations
Due to the COVID-19 pandemic, our business continuity plan was
enabled with all staff working remotely via audio and secure video
communication and full network connectivity to all critical systems
with security protocols in place to protect client data.
The proposed merger with Karpus Management Inc. (KMI), which was
announced on 9(th) June 2020, was approved overwhelmingly by CLIG
shareholders yesterday with 99% voting in favor. Completion of the
merger, which is expected on or around 1(st) October 2020, will
provide shareholders with growth potential from a more diversified
revenue base and has the potential to be earnings enhancing in the
first full year post-merger.
Further details of the transaction are available in the combined
circular and prospectus, which was published on 12 June 2020 in
relation to the share consideration to be issued to stockholders in
KMI on completion of the merger. The prospectus remains live until
admission of those consideration shares on completion, currently
expected to occur on 1 October 2020. Whilst the prospectus remains
live, the Company is prevented under the Prospectus Regulation from
providing an estimate of its profits for the financial year to 30
June 2020, in the same way as it has done in previous years,
without the approval and publication of a supplementary prospectus.
However, subject to audit, the Board intends to at least maintain
the final dividend at the same level as last year, in line with the
stated dividend policy. The Board is not aware of any material
additional information that Shareholders should be aware of at this
time.
The Board confirms the final dividend timetable for the year to
30 June 2020:
-- ex-dividend date: 08 October 2020
-- dividend record date: 09 October 2020
-- payable: 30 October 2020
City of London expects to announce final results alongside
publication of its Accounts for the year to 30 June 2020 on 14
September 2020. The Group's Annual General Meeting will be held on
19 October 2020.
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 R Green
Zeus Capital Limited
Financial Adviser & Broker
Tel: +44 (0)20 3829 5000
This release includes forward-looking statements, which may
differ from actual results. Any forward-looking statements are
based on certain factors and assumptions, which may prove
incorrect, and are subject to risks, uncertainties and assumptions
relating to future events, the Group's operations, results of
operations, growth strategy and liquidity.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTGPUQUMUPUPUW
(END) Dow Jones Newswires
July 14, 2020 02:00 ET (06:00 GMT)
City Of London Investment (LSE:CLIG)
Historical Stock Chart
From Apr 2024 to May 2024
City Of London Investment (LSE:CLIG)
Historical Stock Chart
From May 2023 to May 2024