RNS Number : 6606Y
City of London Investment Group PLC
05 March 2012
5 March 2012
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 2011 to 29 February 2012.
Funds under Management
Markets in general, and Emerging Markets in particular, have performed strongly since the turn of the year, recovering some of the declines experienced in the second half of 2011, and there seems good reason to believe that the recent trend should be maintained, at least in the short term. Clients have continued to maintain their Emerging Market allocations, with rebalancing of assets being substantially offset by a significant pipeline of existing investor top ups. As at 29 February 2012, FuM were US$5.4 billion (GBP3.4 billion). This compares to US$5.8 billion (GBP3.5 billion) at the Company's year end on 31 May 2011 and US$4.8 billion (GBP3.0 billion) at the half-year end on 30 November 2011. In US dollar terms, the decrease of 7.6% since 31 May 2011 compares with a fall of 5.8% in the MSCI Emerging Markets Index over the same period.
The Group's income accrues at a weighted average rate of approximately 86 basis points, net of commissions. "Fixed" costs remain in line with budget at GBP0.9 million per month, and accordingly the current run-rate for operating profit, before profit-share at 30%, is approximately GBP1.5 million per month based upon current FuM and a US$/GBP exchange rate of US$1.59 to GBP1.
The interim dividend of 8 pence per share was paid on 27 February 2012, signalling the board's current intention to recommend a final dividend of not less than 16 pence, subject to no marked deterioration in our markets and our continuing current profitability.
The pre-close trading update will be released on 18 June 2012.
For further information, please visit www.citlon.co.uk or contact:
Doug Allison (Finance Director) Simon Hudson / Andrew Dunn
City of London Investment Group Tavistock Communications
Tel: +44 (0) 20 7860 8347 Tel: +44 (0)20 7920 3150
Claes Spang Martin Green
Singer Capital Markets Limited Canaccord Genuity Limited
Financial Adviser & Joint Broker Joint Broker
Tel: +44 (0)20 3205 7500 Tel: +44 (0)20 7050 6500
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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