REG - City of Lon Inv Grp - Trading update

City of London InvestmentAnnouncement

25/04/2023 07:00

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RNS Number : 2857X  City of London Investment Group PLC  25 April 2023

City of London Investment Group PLC

25 April 2023



 CITY OF LONDON INVESTMENT GROUP PLC

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

 

FUNDS UNDER MANAGEMENT ("FuM") AS AT 31 March 2023,

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 2023,
FuM were US$9.5 billion (£7.7 billion). This compares with US$9.2 billion
(£7.6 billion) as at 31 December 2022.  A breakdown by strategy follows:

 

         FuM ($ million)                             Strategy Index
         Mar-23      Dec-22  %            Net                                      %
         (estimate)          inc/dec      Flows                                    inc/dec
 EM      3,661       3,571   3%           (14)       MSCI EM Net TR                4.0%
 KIM     3,494       3,369   4%           1          Not applicable
 INTL    1,984       1,894   5%           (23)       MSCI ACWI ex US               6.9%
 OV      237         240     -1%          (12)       ACWI/Barclays Global Agg      5.2%
 Other*  91          77      19%          -
         9,467       9,151                (48)

* includes Frontier, REIT and seed investments

Funds under Management figures are rounded

 

IM Performance

 

The returns from CLIG's investment strategies were positive in Q1.  Relative
performance was slightly behind relevant benchmark indices.  Above average
volatility and equity market declines from late January weakened investment
sentiment pushing closed-end fund discounts wider.  This was the primary
driver of relative investment performance over the period.

 

Over the period, there were inflows of circa US$125 million, outpaced by
redemptions, resulting in net outflows of circa US$48 million across the
Group's 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 71 basis points of FuM, net of third-party commissions. "Fixed"
costs are c.£2.0 million per month, and accordingly the current run-rate for
operating profit before profit-share is approximately £2.5 million per month
based upon current FuM and a US$/£ exchange rate of US$1.2337 to £1 as at 31
March 2023.

 

Chair change

 

City of London announces that Barry Aling, Non-Executive Chair, is to retire
from the Board with effect from the end of the Company's AGM on 23 October
2023.  Barry joined the Company as an independent Non-Executive Director in
August 2013 and was appointed as Chair in October 2018.

 

The Board is pleased to announce that Rian Dartnell, currently a Non-Executive
Director, will be appointed as Chair, effective 23 October 2023, subject to
his re-election as a Director by the shareholders at the AGM.

 

Upon becoming Chair, Rian will cease to be the Chair of the Remuneration
Committee and a member of the Audit & Risk Committee.

 

Peter Roth, Senior Independent Director, said: "On behalf of the Board I would
like to thank Barry for the contribution he has made to City of London.  His
experience, knowledge and leadership have been greatly valued by us all and we
wish him the very best for the future.  We are delighted that Rian has agreed
to succeed Barry as Chair.  His in-depth knowledge of City of London and his
international investment and wealth management experience will be vital in
ensuring the smooth transition of the Chair role."

 

Dividend

 

The interim dividend of 11 pence per share was paid on 31 March 2023. The
Board will announce the final dividend on Tuesday 25 July 2023 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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