REG - City of Lon Inv Grp - Funds Under Management - 30/09/22 - Trading Update

City of London InvestmentAnnouncement

17/10/2022 07:00

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RNS Number : 9880C  City of London Investment Group PLC  17 October 2022



 CITY OF LONDON INVESTMENT GROUP PLC

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

 

FUNDS UNDER MANAGEMENT ("FuM") AS AT 30 September 2022,

TRADING UPDATE

 

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 30 September
2022, FuM were US$8.5 billion (£7.6 billion). This compares with US$9.2
billion (£7.6 billion) as at 30 June 2022.  A breakdown by strategy follows:

 

         FuM ($ million)                             Strategy Index
         Sep-22      Jun-22  %            Net                                      %
         (estimate)          inc/dec      Flows                                    inc/dec
 EM      3,249       3,703   -12%         (31)       MSCI EM Net TR                -11.6%
 KIM     3,309       3,433   -4%          (6)        Not applicable
 INTL    1,642       1,812   -9%          20         MSCI ACWI  ex US              -9.9%
 OV      234         193     21%          57         ACWI/Barclays Global Agg      -6.8%
 Other*  78          83      -6%          -
         8,512       9,224                40

* includes Frontier, REIT and seed investments

FuM figures are rounded

 

Investment performance was slightly behind relevant benchmarks for the EM and
International CEF Strategies at CLIM largely due to wider discounts in very
weak market conditions.  The Opportunistic Value strategy ("OV") outperformed
due to positive allocation effects. KIM's equity and fixed-income strategies
performed well versus their respective benchmarks.

 

Net investment flows were US$40 million for the Group over the period, with
the OV and International CEF strategies posting net gains. Marketing efforts
continue to focus on the long-term outperformance of the Group's strategies
and the value opportunities in closed-end funds across asset classes.

 

Operations

 

For illustrative purposes only, the Group's income currently accrues at a
weighted average rate of approximately 71 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.£1.8 million per month, and accordingly the run-rate for
operating profit, before profit-share is approximately c.£2.7 million per
month based upon current FuM and a US$/£ exchange rate of US$1.117 to £1 as
at 30 September 2022.

 

Dividend

 

The final dividend of 22 pence per share, subject to approval at the AGM on
31 October 2022, will be paid on 4 November 2022, bringing the total dividend
for the financial year 2021-22 to 46.5 pence, including the special dividend
of 13.5 pence paid in March 2022 (2020-21: 33 pence, special dividend nil).

 

 

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

Zeus Capital Limited

Financial Adviser & Broker

Tel: +44 (0)20 3829 5000

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