City of London Investment Group plc (LON:CLIG), a leading specialist asset management group offering a range of institutional and retail products investing primarily in closed-end funds, has announced that on a consolidated basis, as at 30 September 2021, FuM were US$10.9 billion (£8.1 billion). This compares with US$11.4 billion (£8.3 billion) as at 30 June 2021. A breakdown by strategy follows:
|FuM ($ million)||Strategy Index|
|EM||4,937||5,393||(8%)||(130)||MSCI EM Net TR||(8.1%)|
|INTL||1,840||1,880||(2%)||(34)||MSCI ACWI ex US||(3.0%)|
|OV||229||231||(1%)||(3)||ACWI/Barclays Global Agg||(0.9%)|
* includes Frontier, REIT and seed investments
Funds under Management figures are rounded
Solid performance across CLIG’s investment strategies resulted from positive country allocation and good NAV performance at the underlying closed end funds. Discount effects were slightly negative.
Over the period, there were net outflows of circa US$172 million across the Group’s strategies, primarily due to ongoing client rebalancing in the emerging markets strategies after strong gains last year.
Business development will focus on EM, International, Opportunistic Value strategies, and KIM balanced mandates, where additional capacity is now available for prospects.
The Group’s income currently accrues at a weighted average rate of approximately 73 basis points of CLIM’s FuM and at approximately 76 basis points of KIM’s FuM, net of third party commissions. “Fixed” costs are c. £1.6 million per month, and accordingly the current run-rate for operating profit, before profit-share is approximately £3.3 million per month based upon current FuM and a US$/£ exchange rate of US$1.3474 to £1 as at 30 September 2021.
The final dividend of 22 pence per share, subject to approval at the AGM on 18 October 2021, will be paid on 29 October 2021, bringing the total dividend for the financial year 2020-21 to 33 pence (2019-20: 30 pence).