City of London Investment Group PLC Interim Management Statement (8571U)

TIDMCLIG

RNS Number : 8571U

City of London Investment Group PLC

12 April 2016

City of London Investment Group PLC

12 April 2016

CITY OF LONDON INVESTMENT GROUP PLC

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

INTERIM MANAGEMENT STATEMENT

QUARTERLY FUNDS UNDER MANAGEMENT ("FUM") UPDATE

City of London (LSE: CLIG), a leading emerging markets asset management group, provides a third quarter trading update for the period 1 January 2016 to 31 March 2016.

Funds under Management

As at 31 March 2016 FuM were US$3.9 billion (GBP2.7 billion), up approximately 3% from US$3.8 billion (GBP2.6 billion) at 31 December 2015. The MSCI Emerging Markets TR Index (NDUEEGF) rose c6% over the same period.

Over the past three months inflows have marginally exceeded outflows. As referenced in the recent Interim Statement, the Group maintains a robust pipeline of potential business. This pipeline includes all three business lines. Investment Performance for the quarter has been disappointing with approximate underperformance of 3%. This has been due to discount widening and also greater exposure to small cap via the Closed End Funds in which the Group invests.

Investment performance remains in the 1st or 2nd quartile for all annualised periods.

Operations

The Group's income accrues at a weighted average rate of approximately 85 basis points, net of commissions and custody charges. "Fixed" costs are cGBP0.9 million per month, and accordingly the current run-rate for operating profit, before profit-share at 30%, is approximately GBP1.0 million per month based upon current FuM and a US$/GBP exchange rate of US$1.44 to GBP1.

Dividends

The interim dividend of 8 pence per share was paid on 11 March 2016. The Board will announce the final dividend on Monday 18 July 2016.

-ends-

For further information, please visit www.citlon.co.uk or contact:

 
 Barry Olliff (CEO) 
 City of London Investment 
  Group PLC 
 Tel: 001 215 313 3774 
 
 
   Martin Green 
 Zeus Capital Limited 
 Financial Adviser & 
  Broker 
 Tel: +44 (0)20 3829 
  5000

This information is provided by RNS

The company news service from the London Stock Exchange

END

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April 12, 2016 02:01 ET (06:01 GMT)

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