City of London Investment Group PLC Trading Update 1st Quarter Funds under Management (2981B)
October 07 2020 - 1:00AM
UK Regulatory
TIDMCLIG
RNS Number : 2981B
City of London Investment Group PLC
07 October 2020
City of London Investment Group PLC
7 October 2020
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 specialist asset
management group offering a range of institutional products
investing in closed-end funds, announces that as at 30th September
2020, FuM were US$5.9 billion (GBP4.6 billion). This compares with
US$5.5 billion (GBP4.4 billion) at the Company's year-end on 30th
June 2020. A breakdown by strategy follows:
FuM ($mn) Strategy Index
Sep-20 Jun-20 % Net %
(estimate) inc/dec Flows inc/dec
EM 4,240 3,828 11% 39 MSCI EM 10%
INTL 1,355 1,244 9% -10 MSCI ACWI xUS 6%
ACWI/Barclays
OV 268 256 5% -5 Global Agg 5%
Frontier 72 175 -59% -107 S&P Frontier 150 8%
------
5,935 5,503 -83
---------- ----------- ------- -------- ------ ----------------- --------
Funds under Management figures are rounded and exclude seed
investments
IM Performance
Performance was ahead of the benchmark over the quarter in all
strategies ex-Frontier. Specifically, in the Emerging Market (EM)
strategy NAV performances were positive. In both the International
(INTL) and Opportunistic Value (OV) strategies relative returns
were driven by strong NAV performance and positive discount
effects. The Frontier strategy was negatively impacted via sharply
wider discounts.
The EM strategy had net inflows of US$39 million, while the
Frontier strategy had outflows of US$107 million over the period.
Net flows were flat for the INTL and OV strategies.
Operations
The Group's income currently accrues at a weighted average rate
of approximately 74 basis points of FuM. "Fixed" costs are c.
GBP1.1 million per month, and accordingly the current run-rate for
operating profit, before profit-share of 30% is approximately
GBP1.7 million per month based upon current FuM and a US$/GBP
exchange rate of US$1.29 to GBP1 as at 30th September 2020.
The Group estimates that the post-tax profit before exceptional
items of c. GBP1.8 million in relation to the KMI merger for the
first three months of the year will be approximately GBP2.8 million
(2019: GBP2.4 million) and post-tax profit after charging the
exceptional items as detailed above for the first three months of
the year will be approximately GBP1.0 million (2019: GBP2.4
million).
Dividends
The final dividend of 20 pence per share, subject to approval at
the AGM on 19th October 2020, will be paid on 30th October 2020,
bringing the total dividend for the financial year 2019-20 to 30
pence (2018-19: 40.5 pence, including the special dividend of 13.5
pence paid in March 2019).
Update on Merger of CLIG with KMI
As previously announced, CLIG completed the merger with Karpus
Management Inc ("KMI") on 1st October 2020 (the "Completion Date").
KMI's client approval process resulted in approximately 98% of
client assets being retained. As at 30th September 2020, KMI had
US$3.6 billion of FuM. On a consolidated basis, as of 1st October
2020, the Group managed client assets of approximately US$9.5
billion.
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
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