TIDMCLIG
RNS Number : 3692A
City of London Investment Group PLC
22 January 2024
City of London Investment Group PLC
22 January 2024
CITY OF LONDON INVESTMENT GROUP PLC
("City of London", "the Group" or "the Company")
FUNDS UNDER MANAGEMENT ("FuM") AS AT 31 DECEMBER 2023,
SIX MONTHS TO 31 DECEMBER 2023 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 (CEFs), announces
that on a consolidated basis, as at 31 December 2023, FuM were
US$9.6 billion. This compares with US$9.4 billion at the Group's
year end on 30 June 2023. A breakdown by strategy follows:
FuM ($ million) Strategy Index
Dec-23 Jun-23 % Net %
(estimate) increase/ Flows increase/
(decrease) (decrease)
EM 3,578 3,580 0% (171) MSCI EM Net TR 4.7%
KIM 3,618 3,520 3% (46) Not applicable
INTL 2,004 1,983 1% (90) MSCI ACWI ex US 5.6%
ACWI/Barclays Global
OV 278 244 14% 15 Agg 5.8%
Other* 98 97 1% (2)
9,576 9,424 (294)
----------- ------- ------
* includes Frontier, REIT and seed investments
Funds under Management figures are rounded
IM Performance
Relative investment performance of the Group's strategies was
mainly positive over the period, with OV and Fixed Income
strategies outperforming, International Equity neutral and EM
slightly negative. Significant CEF discount widening through late
2023 was partly reversed in Q4 which helped relative performance
into year-end while NAV performance was positive.
Over the six-month period, there were net outflows of circa
US$294 million across the Group's strategies, led by EM redemptions
at CLIM and required minimum distributions for KIM clients at year
end.
Marketing and sales activity has picked up significantly in
January as clients and prospects review their investment
allocations. We are focused on new mandates in a number of the
Group's asset classes with very good long-term performance as CEF
discounts are at compelling levels and there is ample capacity.
Operations
The Group's income currently accrues at a weighted average rate
of approximately 70 basis points, net of third party commissions.
"Fixed" costs are c. US$2.3 million per month, and accordingly the
current run-rate for operating profit before profit-share is
approximately US$3.2 million per month based upon current FuM.
The Group has proactively undertaken cost reductions as part of
normal operations reflecting the current market environment. Based
on actions initiated to date, savings of c. US$2.5 million of costs
per annum will be fully realised in the next financial year.
The Group estimates the unaudited profit before amortisation and
taxation for the six months ended 31 December 2023 to be
approximately US$13.9 million (six months ended 31 December 2022:
US$13.8 million, restated in USD based on average exchange
rate).
Inclusive of our regulatory and statutory capital requirements,
cash and cash equivalents stood at US$28.8 million at the end of
the calendar year (US$28.6 million as at 30 June 2023, restated in
USD based on closing exchange rate), in addition to the seed
investments of US$2.4 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
2023 on 23 February 2024.
Dividend
The Board declares an interim dividend of 11p per share, which
will be paid on 28 March 2024 to shareholders registered at the
close of business on 1 March 2024 (2022: 11 pence).
Shareholders may choose to reinvest their dividends using the
company's Dividend Reinvestment Plan, to do this please visit
www.signalshares.com or if you hold your shares through a broker
please contact them. The deadline to lodge your election is 8 March
2024.
The Board confirms the following interim dividend timetable:
-- ex-dividend date: 29 February 2024
-- dividend record date: 1 March 2024
-- DRIP election date/ deadline 8 March 2024
for currency election:
-- announcement of USD dividend 14 March 2024
conversion rate:
-- dividend payment date: 28 March 2024
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
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 .
Dividend cover template
Please see dividend cover template attached here.
http://www.rns-pdf.londonstockexchange.com/rns/3692A_1-2024-1-20.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/ or
contact:
Tom Griffith, CEO
City of London Investment Group PLC
Tel: 001-610-380-0435
Martin Green / James Hornigold
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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END
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