Interim Management Statement

RNS Number : 3976C

City of London Investment Group PLC

07 March 2011

 



7 March 2011

 

 

CITY OF LONDON INVESTMENT GROUP PLC

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

INTERIM MANAGEMENT STATEMENT

Funds under Management as at 28 February 2011

Funds under Management

City of London Investment Group PLC (LSE: CLIG), a leading emerging market asset management group, announces total funds under management (FuM) quarterly. As at 28 February 2011, FuM were US$5.7 billion (£3.5 billion). This compares to US$5.5 billion (£3.6 billion) at the Company's half year end on 30 November 2010, US$4.4 billion (£3.0 billion) at the 31 May 2010 year end and US$4.5 billion (£2.9 billion) on 26 February 2010.

In US dollar terms, the quarter on quarter increase in FuM of 3.3% compares with a rise of 3.2% in the MSCI Emerging Markets Index over the same period. Confirmed new client assets that are expected to fund by 30 June 2011 total approximately US$100 million.

Markets have been sensitive in recent weeks initially because of inflationary risks and more recently because of the uncertain situation in the Middle East.

Operations

The Group's income accrues at a weighted average rate of approximately 85 basis points on FuM, net of commissions payable to third party marketers. "Fixed" costs remain in line with budget at just over £0.8 million per month, and accordingly the current run-rate for operating profit, before profit-share at 30%, is approximately £1.6 million per month.

The Group has reviewed its marketing resources, particularly with regard to the diversification strategies (natural resource and emerging market equities and global closed end funds), and is in the process of recruiting two further experienced marketing executives. One will broaden our reach in the US and the other will focus on European markets.

Dividends

The interim dividend of 8 pence per share was paid last week, and with one quarter of the financial year to go, the directors anticipate that our one third/two thirds policy will be compatible with the Group's stated intention to return towards annual dividends being 1.5 times covered by earnings per share.

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

Doug Allison (Finance Director)	Simon Hudson / Lydia Eades
City of London Investment Group Plc	Tavistock Communications
Tel: [phone]	Tel: [phone]
Jeff Keating	Simon Bridges
Singer Capital Markets Limited	Cannacord Genuity Limited
Financial Adviser & Joint Broker	Joint Broker
Tel: [phone]	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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