Quarterly Funds under Management Update

RNS Number : 0919Z

City of London Investment Group PLC

04 March 2013

 



4 March 2013

 

CITY OF LONDON INVESTMENT GROUP PLC

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

INTERIM MANAGEMENT STATEMENT

Quarterly Funds under Management ("FuM") Update

City of London (LSE: CLIG), a leading emerging markets asset management group, provides an Interim Management Statement for the period 1 December 2012 to 28 February 2013.

Funds under Management

As at 28 February 2013, FuM were US$4.0 billion (£2.6 billion). This compares to US$3.9 billion (£2.4 billion) at the half-year end on 30 November 2012. In US dollar terms, the MSCI Emerging Markets Index has risen by 4.9% over the same period, but this increase has been largely offset by net client redemptions of $203 million. As at the date of this announcement the company has been notified of further net redemptions totalling $195 million, which will be processed within the next three months. Thereafter we would hope to see stability return to the client base on the back of improving investment performance.

Operations

The Group's net fee margin has increased to around 92 basis points, reflecting the changing mix of client accounts and the run off of third party commissions. "Fixed" costs have declined towards £0.8 million per month, reflecting recently implemented cost reductions (which in sterling terms are partially offset by currency weakness), and this reduction should be consolidated as the pipeline of savings crystallises. Accordingly, the current run-rate for operating profit, before profit-share, is approximately £1.1 million per month based upon current FuM and a US$/£ exchange rate of US$1.52 to £1.

Dividends

The interim dividend of 8 pence per share, was paid on 28 December 2012, signaling the board's current intention to recommend a final dividend of not less than 16 pence, subject to relatively stable markets and profitability in the final quarter of the financial year.

The pre-close trading update will be released on 17 June 2013.

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

Doug Allison, Chief Executive Officer	Martin Green
City of London Investment Group PLC	Canaccord Genuity Limited
Tel: [phone]	Broker and Financial Adviser
	Tel: [phone]

This announcement contains forward-looking statements with respect to the financial condition, results and business of City of London Investment Group PLC. By their nature, forward looking statements involve risk and uncertainty and there may be subsequent variations to estimates. City of London Investment Group PLC's actual future results may differ materially from the results expressed or implied in these forward-looking statements. Nothing in this announcement should be construed as or is intended to be a solicitation for or an offer to provide investment advisory services.

 

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