REG - City of Lon Inv Grp - SIX MONTH TRADING UPDATE AND DIVIDEND DECLARATION

City of London InvestmentAnnouncement

20/01/2023 07:00

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RNS Number : 3233N  City of London Investment Group PLC  20 January 2023

City of London Investment Group PLC

20 January 2023



 

 CITY OF LONDON INVESTMENT GROUP PLC

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

 

FUNDS UNDER MANAGEMENT ("FuM") AS AT 31 December 2022,

SIX MONTHS TO 31 DECEMBER 2022 TRADING UPDATE AND 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
2022, FuM were US$9.2 billion (£7.6 billion). This compares with US$9.2
billion (£7.6 billion) at the Group's year end on 30 June 2022.  A breakdown
by strategy follows:

 

 

         FuM ($ million)                                Strategy Index
         Dec-22      Jun-22  %               Net                                      %
         (estimate)          increase/       Flows                                    increase/
                             (decrease)                                               (decrease)
 EM      3,570       3,703   (4%)            (65)       MSCI EM Net TR                (3.0%)
 KIM     3,369       3,433   (2%)            (103)      Not applicable
 INTL    1,894       1,812   5%              13         MSCI ACWI  ex US              3.0%
 OV      240         193     25%             48         ACWI/Barclays Global Agg      (0.1%)
 Other*  77          83      (7%)            -
         9,150       9,224                   (107)

* 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.

 

Over the period, there were inflows of circa US$295 million, outpaced by
outflows resulting in net outflows of circa US$107 million across the Group's
strategies, led by EM redemptions and required minimum distributions for
Karpus Investment Management ("KIM") strategies at year end.

 

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 73 basis points of FuM, net of third party commissions. "Fixed"
costs are c. £1.9 million per month, and accordingly the current run-rate
for operating profit before profit-share is approximately £2.7 million per
month based upon current FuM and a US$/£ exchange rate
of US$1.2083 to £1 as at 31 December 2022.

 

The Group estimates the unaudited profit before amortisation and taxation for
the six months ended 31 December 2022 to be approximately £11.9 million (six
months ended 31 December 2021: £15.5 million).

Inclusive of our regulatory and statutory capital requirements, cash and cash
equivalents stood at £19.1 million at the end of the calendar year (£22.7
million as at 30 June 2022), in addition to the seed investments of £7.6
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 2022 on 22 February 2023.

 

Dividend

 

The Board declares an interim dividend of 11p per share, which will be paid on
31 March 2023 to shareholders registered at the close of business on 3 March
2023 (2021: 11 pence).

 

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 10 March 2023.

 

The Board confirms the final dividend timetable for the year to 30 June 2023:

 

 ·     ex-dividend date:                                         2 March 2023
 ·     dividend record date:                                     3 March 2023
 ·     DRIP election date/ deadline for currency election:       10 March 2023
 ·     announcement of USD dividend conversion rate:             17 March 2023
 ·     dividend payment date:                                    31 March 2023

 

City of London Investment Group is a UK registered company, listed on the
London Stock Exchange and declares its dividends in GBP.  Shareholders based
in the US can elect to receive dividends in USD, should they wish to do so.
The currency conversion rate from GBP to USD will be fixed two weeks before
the dividend payment date. The currency election form can be found on our
website at
https://clig.com/wp-content/uploads/2022/08/Currency-Election-Form-2022.pdf
(https://clig.com/wp-content/uploads/2022/08/Currency-Election-Form-2022.pdf)

 

Alternatively, overseas shareholders may be able to use the International
Payment Service (IPS) and receive dividend payments direct to their bank
account in local currency. Further information regarding the IPS including
terms and conditions, costs and forms for signing up are available from Link
Group at https://ww2.linkgroup.eu/ips (https://ww2.linkgroup.eu/ips) .

 

Dividend cover template

 

Please see dividend cover template attached
here. http://www.rns-pdf.londonstockexchange.com/rns/3233N_1-2023-1-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3233N_1-2023-1-19.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.com/
(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

 

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.

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