TIDMCLIG

RNS Number : 2678W

City of London Investment Group PLC

16 April 2019

City of London Investment Group PLC

16 April 2019

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 specialist asset management group offering a range of institutional products investing in closed-end funds, announces that as at 31 March 2019, FuM were US$5.3 billion (GBP4.1 billion). This compares with US$4.6 billion (GBP3.6 billion) at the Company's half-year on 31 December 2018. A breakdown by strategy follows:

 
  FuM ($mn)                                           Strategy Index 
 
                  Mar-19   Dec-18         %     Net                          % 
  (estimate)                        inc/dec   Flows                    inc/dec 
 
 EM                4,180    3,732       12%      45   MSCI EM              10% 
 DEV                 660      495       33%     101   MSCI ACWI            12% 
 Frontier            201      197        2%       -   MSCI Frontier         7% 
 Opportunistic                                        ACWI/Barclays 
 Value               227      199       14%       7    Global Agg           7% 
                                             ------ 
                   5,268    4,623               153 
----------------  ------  -------  --------  ------  ---------------  --------

The Emerging Market, Developed and Opportunistic Value Strategies outperformed due to narrowing discounts and to a lesser extent, positive NAV performance. The Frontier Strategy underperformed largely due to unfavourable NAV performance.

During the period under review, the Developed and EM strategies recorded net inflows of US$101 million and US$45 million, respectively. Net flows in the Opportunistic Value and Frontier strategies were essentially flat.

With regard to business development, the Group continues to maintain an active pipeline across all of its major CEF offerings, with increased interest continuing to be seen in the non-Emerging Market CEF strategies (i.e. Developed, Opportunistic Value).

Operations

The Group's income currently accrues at a weighted average rate of approximately 76 basis points of FuM, net of third party commissions. "Fixed" costs are cGBP1.1 million per month, and accordingly the current run-rate for operating profit, before profit-share of 30% and an estimated EIP charge of 5%, is approximately GBP1.5 million per month based upon current FuM and a US$/GBP exchange rate of US$1.3 to GBP1 as at 31 March 2019.

Dividends

An interim dividend of 9 pence per share plus a special dividend of 13.5 pence per share was paid on 22 March 2019. The Board will announce the final dividend on Tuesday 16 July 2019 in its pre-close trading update.

For further information, please visit http://www.citlon.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 information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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April 16, 2019 02:00 ET (06:00 GMT)

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