REG - City of Lon Inv Grp - Funds Under Management - 31/3/22 - Trading Update

City of London InvestmentAnnouncement

26/04/2022 07:00

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RNS Number : 2764J  City of London Investment Group PLC  26 April 2022

City of London Investment Group PLC

26 April 2022



 CITY OF LONDON INVESTMENT GROUP PLC

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

 

FUNDS UNDER MANAGEMENT ("FuM") AS AT 31 March 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 31 March 2022,
FuM were US$10.3 billion (£7.8 billion). This compares with US$11.1 billion
(£8.2 billion) as at 31 December 2021.  A breakdown by strategy follows:

 

         FuM ($ million)                         Strategy Index
         Mar-22      Dec-21  %          Net                                  %
         (estimate)          inc/dec    Flows                                inc/dec
 EM      4,221       4,800   -12%       31       MSCI EM Net TR              -7.0%
 KIM     3,766       3,949   -5%        (13)     Not applicable
 INTL    1,950       2,147   -9%        39       MSCI ACWI  ex US            -5.4%
 OV      225         232     -3%        11       ACWI/Barclays Global Agg    -5.7%
 Other*  103         22      361%       79
         10,265      11,150             147

* includes Frontier, REIT and seed investments

FuM figures are rounded

 

During the period under review, CLIG flows were positive with net inflows of
circa US$147 million across the Group's strategies.  With regard to business
development, the Group continues to maintain an active pipeline across all of
its major Closed-End Fund ("CEF") offerings with an increased interest in the
diversification CEF strategies.

 

IM Performance

 

Both absolute and relative performance was weak across CLIM's investment
strategies during the period. The EM strategy was impacted by the Russian
invasion of Ukraine and both country allocation and NAV performance detracted
in this regard. The CLIM International strategy underperformed due to poor NAV
performance and widening discounts. KIM's investment strategies had positive
relative performance.

 

Operations

 

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.£1.6
million per month, and accordingly the post-merger run-rate for operating
profit, before profit-share is approximately £3.0 million per month based
upon current FuM and a US$/£ exchange rate of US$1.3138 to £1 as at 31 March
2022.

 

Dividend

 

Interim dividend of 11 pence per share and a special dividend of 13.5p per
share were paid on 25 March 2022. The Board will announce the final dividend
on Tuesday 19 July 2022 in its pre-close trading update. 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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