REG - City of Lon Inv Grp - FuM 31/12/21, Trading, Dividend & Special Dividend

City of London InvestmentAnnouncement

19/01/2022 07:05

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RNS Number : 8718Y  City of London Investment Group PLC  19 January 2022

 

City of London Investment Group PLC

19 January 2022





 

 CITY OF LONDON INVESTMENT GROUP PLC

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

 

FUNDS UNDER MANAGEMENT ("FuM") AS AT 31 December 2021,

SIX MONTHS TO 31 DECEMBER 2021 TRADING UPDATE, DIVIDEND AND SPECIAL DIVIDEND
DECLARATION

 

City of London (LSE: CLIG), a leading specialist asset management group
offering a range of institutional and retail products investing primarily in
closed-end funds, announces that on a consolidated basis, as at 31 December
2021, FuM were US$11.1 billion (£8.2 billion). This compares with US$11.4
billion (£8.3 billion) at the Group's year end on 30 June 2021.  A breakdown
by strategy follows:

 

 

         FuM ($ million)                                Strategy Index
         Dec-21      Sep-21  %               Net                                      %
         (estimate)          increase/       Flows                                    increase/
                             (decrease)                                               (decrease)
 EM      4,800       4,937   (3%)            (149)      MSCI EM Net TR                (1.3%)
 KIM     3,949       3,890   2%              (53)       Not applicable
 INTL    2,147       1,840   17%             265        MSCI ACWI  ex US              1.8%
 OV      232         229     1%              (4)        ACWI/Barclays Global Agg      2.0%
 Other*  22          22      0%              -
         11,150      10,918                  59

* includes Frontier, REIT and seed investments

Funds under Management figures are rounded

 

IM Performance

 

Solid relative performance across CLIG's investment strategies resulted from
good NAV performance at the underlying closed end funds and positive discount
effects.

 

Over the period, there were net inflows of circa US$59 million across the
Group's strategies, due to asset raising for the International Equity
strategy. Year-end rebalancing and tax planning led to outflows from the EM
and KIM strategies.

 

Business development will focus on EM, International, and Opportunistic Value
strategies, and KIM balanced mandates, where additional capacity is now
available for prospects.

 

Operations

 

The Group's income currently accrues at a weighted average rate of
approximately 72 basis points of CLIM's FuM and at approximately 76 basis
points of KIM's FuM, net of third party commissions. "Fixed" costs are
c. £1.6 million per month, and accordingly the current run-rate for
operating profit, before profit-share is approximately £3.3 million per
month based upon current FuM and a US$/£ exchange rate
of US$1.3532 to £1 as at 31 December 2021.

 

The Group estimates the unaudited profit before amortisation and taxation for
the six months ended 31 December 2021 to be approximately £15.5 million
(2020: £9.9 million).

 

Inclusive of our regulatory and statutory capital requirements, cash in the
bank stood at £24.5 million at the end of the calendar year (£25.5 million
as at 30 June 2021), in addition to the seed investments of £6.1 million. Our
cash reserves will allow us to continue managing the business conservatively
through volatile markets while following our dividend policy for our
shareholders.

 

The Company is currently in a close period which will end with the publication
of results for the six months ended 31 December 2021 on 18 February 2022.

 

Dividend

 

The Board declares an interim dividend of 11p per share, which will be paid on
25 March 2022 to shareholders registered at the close of business on 25
February 2022 (2021: 11 pence).

 

In addition, the Board announces a special dividend of 13.5p per share, which
will also be paid on 25 March 2022 to shareholders registered at the close of
business on 25 February 2022 (2021: Nil).

 

Shareholders may choose to reinvest their dividends using the company's
Dividend Reinvestment Plan, to do this please visit www.signalshares.com
(http://www.signalshares.com) or if you hold your shares through a broker
please contact them. The deadline to lodge your election is 4 March 2022.

 

Dividend cover template

 

Please see dividend cover template attached here.

http://www.rns-pdf.londonstockexchange.com/rns/8718Y_1-2022-1-18.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8718Y_1-2022-1-18.pdf)

 

The dividend cover template shows the quarterly estimated cost of dividend
against actual post-tax profits for last year, the current six months and the
assumed post-tax profit for the remainder of the current year and the next
financial year based upon specified assumptions.

 

 

 

For further information, please visit http://www.clig.co.uk/
(http://www.clig.co.uk/) or contact:

 

Tom Griffith, CEO

City of London Investment Group PLC

Tel: 001-610-380-0435

 

Martin Green/Pippa Hamnett

Zeus Capital Limited

Financial Adviser & Broker

Tel: +44 (0)20 3829 5000

 

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