TIDMLFI 
 
29 November 2011 
 
                   London Finance & Investment Group P.L.C. 
 
                           ("LFIG" or the "Company") 
 
                Posting of Class 1 Circular in connection with 
 
                   Proposed Disposal of Investment Property 
 
Further to the announcement made on 4 November 2011, the Company is pleased to 
announce that it has posted a Class 1 Circular to Shareholders (the "Circular") 
on Monday 28th November 2011 seeking Shareholder approval for the disposal of 
the Company's property in Rutland Gate, Knightsbridge, London (the `Property') 
for a cash consideration of GBP2.625 million (the "Disposal"). A notice of 
General Meeting is set out at the end of the Circular convening a General 
Meeting of the Company to be held at 30 City Road, London EC1Y 2AG at 3.30 p.m. 
on 21 December 2011. 
 
The Circular is available from the offices of the Company and from its website, 
www.city-group.com. 
 
The Circular includes the following additional disclosure in relation to the 
financial effects of the Disposal and also clearly sets out the Investment 
Policy. 
 
Subject to Shareholder approval, the expected cash proceeds of the Disposal, 
net of transaction costs and tax will be GBP2,397,000, representing 34.9 per 
cent. of the Company's market capitalisation as at 25 November 2011, the last 
practicable date prior to the publication of this Document. The cash proceeds 
of the Disposal will be held on the Company's balance sheet as cash and cash 
equivalents pending reinvestment in line with the Company's investment policy, 
as set out below. The effect on earnings will be that the Company will no 
longer receive annual rental income from the Property of GBP53,000 per annum; 
this will be offset to the extent that a return can be made on new investments 
and the Net Cash Proceeds pending investment. 
 
Investment Policy 
 
The Company's investment policy is to invest in a range of "strategic" 
investments, a "general portfolio" consisting primarily of highly liquid stock 
market investments, both in equity instruments and bonds, and, at the Board's 
discretion, `other investments', typically property and other physical assets. 
This investment policy is designed to achieve the Company's objectives of 
capital growth in real terms over the medium term, while maintaining a 
progressive dividend policy. 
 
Both "strategic" and "general portfolio" investments can be in any industry 
sector. "Strategic" investments are significant minority positions in UK small 
cap companies which can be either quoted or unquoted; to diversify risk, the 
policy is to maintain a number of such investments. Most such investments will 
be in shares of companies that are publicly traded but investments can also be 
made in publicly traded and untraded debt or equity instruments of companies 
that are strategic investments. The "general portfolio" aims to further 
diversify risk through a spread of investments and a target of between 20 and 
30 holdings in some of the largest European quoted companies. 
 
The intention is for between 30 per cent. and 70 per cent. of the overall 
investment portfolio with a maximum limit of 80 per cent. to be in "strategic" 
investments at the point of investment, with the balance of the portfolio, net 
of "other investments", to be in the "general portfolio". "Other investments" 
will be limited to 20 per cent. of the overall value of the investment 
portfolio, measured at the point of investment. No one "strategic investment" 
or "other investment" will represent more than 30 per cent. and 20 per cent. 
respectively of the value of all investments at the time of making such 
investment and no one "general portfolio" investment will represent more than 
10 per cent. of the value of the "general portfolio" at the time of such 
investment. 
 
Within these parameters, changes in strategic and other investments are decided 
on by the Board and changes to the general portfolio are decided on by the 
Board or, between Board meetings, by an Investment Committee of the Board. The 
investment guidelines within which the Investment Committee operates allow the 
Investment Committee discretion within the parameters set by the Investment 
Policy. The investment mix and level of borrowings are reviewed at each board 
meeting. 
 
The Company's gearing is limited at or below 70 per cent. of the total value of 
investments. 
 
Enquiries: 
 
London Finance & Investment Group P.L.C. 
 
Lloyd Marshall 
 
Tel: 020 7448 8950 
 
Beaumont Cornish Limited, Sponsor 
 
Roland Cornish 
 
Tel: 0207 628 3396 
 
 
 
END
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