City of London Investment Group PLC SIX MONTH TRADING UPDATE AND DIVIDEND DECLARATION (3692A)

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RNS Number : 3692A

City of London Investment Group PLC

22 January 2024

City of London Investment Group PLC

22 January 2024

CITY OF LONDON INVESTMENT GROUP PLC

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

FUNDS UNDER MANAGEMENT ("FuM") AS AT 31 DECEMBER 2023,

SIX MONTHS TO 31 DECEMBER 2023 TRADING UPDATE AND DIVIDEND DECLARATION

City of London (LSE: CLIG), a leading specialist asset management group offering a range of institutional and retail products investing primarily in closed-end funds (CEFs), announces that on a consolidated basis, as at 31 December 2023, FuM were US$9.6 billion. This compares with US$9.4 billion at the Group's year end on 30 June 2023. A breakdown by strategy follows:

 
                   FuM ($ million)                       Strategy Index 
               Dec-23   Jun-23            %     Net                                   % 
           (estimate)             increase/   Flows                           increase/ 
                                 (decrease)                                  (decrease) 
 EM             3,578    3,580           0%   (171)   MSCI EM Net TR               4.7% 
 KIM            3,618    3,520           3%    (46)   Not applicable 
 INTL           2,004    1,983           1%    (90)   MSCI ACWI ex US              5.6% 
                                                      ACWI/Barclays Global 
 OV               278      244          14%      15    Agg                         5.8% 
 Other*            98       97           1%     (2) 
                9,576    9,424                (294) 
          -----------  -------               ------ 
 
 

* includes Frontier, REIT and seed investments

Funds under Management figures are rounded

IM Performance

Relative investment performance of the Group's strategies was mainly positive over the period, with OV and Fixed Income strategies outperforming, International Equity neutral and EM slightly negative. Significant CEF discount widening through late 2023 was partly reversed in Q4 which helped relative performance into year-end while NAV performance was positive.

Over the six-month period, there were net outflows of circa US$294 million across the Group's strategies, led by EM redemptions at CLIM and required minimum distributions for KIM clients at year end.

Marketing and sales activity has picked up significantly in January as clients and prospects review their investment allocations. We are focused on new mandates in a number of the Group's asset classes with very good long-term performance as CEF discounts are at compelling levels and there is ample capacity.

Operations

The Group's income currently accrues at a weighted average rate of approximately 70 basis points, net of third party commissions. "Fixed" costs are c. US$2.3 million per month, and accordingly the current run-rate for operating profit before profit-share is approximately US$3.2 million per month based upon current FuM.

The Group has proactively undertaken cost reductions as part of normal operations reflecting the current market environment. Based on actions initiated to date, savings of c. US$2.5 million of costs per annum will be fully realised in the next financial year.

The Group estimates the unaudited profit before amortisation and taxation for the six months ended 31 December 2023 to be approximately US$13.9 million (six months ended 31 December 2022: US$13.8 million, restated in USD based on average exchange rate).

Inclusive of our regulatory and statutory capital requirements, cash and cash equivalents stood at US$28.8 million at the end of the calendar year (US$28.6 million as at 30 June 2023, restated in USD based on closing exchange rate), in addition to the seed investments of US$2.4 million. Our cash reserves will allow us to continue managing the business conservatively through volatile markets while following our dividend policy for our shareholders.

The Company is currently in a close period which will end with the publication of results for the six months ended 31 December 2023 on 23 February 2024.

Dividend

The Board declares an interim dividend of 11p per share, which will be paid on 28 March 2024 to shareholders registered at the close of business on 1 March 2024 (2022: 11 pence).

Shareholders may choose to reinvest their dividends using the company's Dividend Reinvestment Plan, to do this please visit www.signalshares.com or if you hold your shares through a broker please contact them. The deadline to lodge your election is 8 March 2024.

The Board confirms the following interim dividend timetable:

 
 -- ex-dividend date:              29 February 2024 
 -- dividend record date:          1 March 2024 
 -- DRIP election date/ deadline   8 March 2024 
  for currency election: 
 -- announcement of USD dividend   14 March 2024 
  conversion rate: 
 -- dividend payment date:         28 March 2024 
 

City of London Investment Group is a UK registered company, listed on the London Stock Exchange and declares its dividends in GBP. Shareholders based in the US can elect to receive dividends in USD, should they wish to do so. The currency conversion rate from GBP to USD will be fixed two weeks before the dividend payment date. The currency election form can be found on our website at https://clig.com/wp-content/uploads/2022/08/Currency-Election-Form-2022.pdf

Alternatively, overseas shareholders may be able to use the International Payment Service (IPS) and receive dividend payments direct to their bank account in local currency. Further information regarding the IPS including terms and conditions, costs and forms for signing up are available from Link Group at https://ww2.linkgroup.eu/ips .

Dividend cover template

Please see dividend cover template attached here.

http://www.rns-pdf.londonstockexchange.com/rns/3692A_1-2024-1-20.pdf

The dividend cover template shows the quarterly estimated cost of dividend against actual post-tax profits for last year, the current six months and the assumed post-tax profit for the remainder of the current year and the next financial year based upon specified assumptions.

For further information, please visit http://www.clig.com/ or contact:

Tom Griffith, CEO

City of London Investment Group PLC

Tel: [phone]

Martin Green / James Hornigold

Zeus Capital Limited

Financial Adviser & Broker

Tel: [phone]

This release includes forward-looking statements, which may differ from actual results. Any forward-looking statements are based on certain factors and assumptions, which may prove incorrect, and are subject to risks, uncertainties and assumptions relating to future events, the Group's operations, results of operations, growth strategy and liquidity.

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January 22, 2024 02:00 ET (07:00 GMT)