City of London Investment Group PLC on Monday noted improvement across its investment portfolio and announced an 11 pence shareholder dividend.
The investor in London-listed equities reported that, as of December 31, its funds under management stood at $9.6 billion, up slightly from $9.4 billion at the group’s year-end on June 30.
Profit before taxation and amortisation is expected to be around $13.9 million for the half-year, up from $13.8 million in the six months to December 2022.
The group said its investment performance over the six months was ‘mainly positive’ with OV and fixed income strategies outperforming. OV was estimated at $278 million as of December 31, up from $244 million at the end of June.
International Equity was rose to $2.00 billion from $1.98 billion over the six months, while emerging markets were down less than 1% to $3.58 billion.
Over the six months, net outflows of $294 million were due to emerging market redemptions at City of London Investment Management Co Ltd, and required ‘minimum distributions’ for Karpus Investment Management clients at the end of the year.
The group said that marketing and sales activity picked up ‘significantly’ in January, and the group said it will focus on ‘new mandates in a number of the group’s asset classes’. These promise strong long-term performance, according to CLIG, as closed-end fund discounts are at ‘compelling levels’.
The group said it continues to ‘proactively undertake’ cost reductions given the current market environment, and expects to realise savings of around $2.5 million of costs per annum in the next financial year.
As of December 31, the group had $28.8 million in cash, up from USd28.6 million as at June 30. CLIG said that the cash reserves will allow it to ‘continue managing the business conservatively through volatile markets while following our dividend policy for our shareholders’.
ClIG also declared an interim dividend of 11p per share, due to be paid on March 28.
The group is currently in a close period, which will end with the publication of the interim results on February 23.
Shares in CLIG were up 6.3% at 340.20 pence each in London on Monday afternoon.
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