TIDMCLIG
RNS Number : 8856S
City of London Investment Group PLC
19 July 2022
City of London Investment Group PLC
19 July 2022
The information contained within this announcement is deemed by
the Group to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
CITY OF LONDON INVESTMENT GROUP PLC
("City of London" or "the Group" or "the Company" or "CLIG")
PRE-CLOSE TRADING UPDATE for the year to 30 June 2022
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"), provides
a pre-close trading update for its financial year ended 30 June
2022. The numbers that follow are unaudited.
On a consolidated basis, Funds under Management (FuM) were
US$9.2 billion (GBP7.6 billion) at 30 June 2022. This compares with
US$11.4 billion (GBP8.3 billion) at the Group's year end on 30 June
2021. A breakdown by strategy follows:
FuM ($ million) Strategy Index
Jun-22 Jun-21 % Net %
(estimate) inc/dec Flows inc/dec
EM 3,703 5,393 (31%) (316) MSCI EM Net TR (25.3%)
KIM 3,433 3,919 (12%) (110) Not applicable
INTL 1,812 1,880 (4%) 453 MSCI ACWI ex US (19.4%)
ACWI/Barclays Global
OV 193 231 (16%) 1 Agg (15.2%)
Other* 83 26 218% 74
9,224 11,449 102
----------- ------- ------
* includes Frontier, REIT and seed investments
Investment performance was behind relevant benchmarks for the
bulk of CLIM's assets due to a combination of country allocation in
the Emerging Market strategy and NAV performance at the underlying
closed-end funds in the International and Opportunistic Value
strategies. KIM's equity and fixed-income strategies outperformed
their market indices over the period, while US equity lagged its
benchmark.
Net investment flows were US$102 million for the Group over the
period, with CLIM posting net gains, while KIM saw net outflows as
clients reduced exposure to markets due to ongoing volatility in
the second half of the year. After a pause in 2020 a renewed
marketing emphasis over the period, combined with the excellent
long term track record was rewarded for the International CEF
Strategy.
With regard to business development, the Group continues to
develop an active pipeline across all of its major CEF
offerings.
Operations
The Group's income currently accrues at a weighted average rate
of approximately 73 basis points of FuM, net of third party
commissions.
The Group's overheads for the year to 30 June 2022 are expected
to be GBP19.7 million (2021: GBP16.8 million). "Fixed" costs are
c.GBP1.7 million per month, and accordingly the run-rate for
operating profit, before profit-share and amortisation of
intangibles is approximately GBP2.8 million per month based upon
current FuM and a US$/GBP exchange rate of US$1.2178 to GBP1 as at
30 June 2022.
For the year to 30 June 2022, the Group estimates that the
unaudited profit before amortisation of intangibles and taxation to
be approximately GBP27.2 million, including non-controlling
interest ("NCI") loss of GBP0.1 million (2021: GBP27.2 million
profit before amortisation of intangibles, exceptional merger costs
of c. GBP1.7 million and taxation, NCI profit of nil) (2021:
GBP25.5 million profit before amortisation and taxation).
Profits after an anticipated tax charge of GBP5.0 million
(representing 22% of profits before taxation) will be approximately
GBP18.1 million (2021: profits of GBP17.0 million after a tax
charge of GBP5.3 million, representing 19% of profits before
exceptional merger costs and taxation). Basic and fully diluted
earnings per share are expected to be 37.1p and 36.6p respectively
(2021: 39.4p and 38.8p).
Dividend
The Board is proposing to recommend a final dividend of 22p per
share (2021: 22p), subject to approval by shareholders at the
Company's Annual General Meeting to be held on 31 October 2022.
This would bring the total dividend payment for the year to 46.5p,
including the special dividend of 13.5p paid in March (2021: 33p,
special dividend nil). Rolling five-year dividend cover, excluding
the special dividend equates to 1.22 times (2021: 1.29 times).
The Board confirms the final dividend timetable for the year to
30 June 2022:
-- ex-dividend date: 29 September 2022
-- dividend record date: 30 September 2022
-- DRIP election date/ deadline 7 October 2022
for currency election:
-- announcement of USD dividend 21 October 2022
conversion rate:
-- dividend payment date: 4 November 4 November 2022
2022
City of London expects to announce its final results alongside
publication of its Accounts for the year to 30 June 2022 on 19
September 2022. The Group's Annual General Meeting will be held on
31 October 2022.
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 now 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://www.clig.com/investor-reports/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/8856S_1-2022-7-18.pdf
The dividend cover template shows the quarterly estimated cost
of dividend against actual post-tax profits for last year, the
current year and the assumed post-tax profit for next financial
year based upon specified assumptions.
For further information, please visit https://www.clig.com/ or
contact:
Tom Griffith, CEO
City of London Investment Group PLC
Tel: 001-610-380-0435
Martin Green
Zeus Capital Limited
Financial Adviser & Broker
Tel: +44 (0)20-3829-5000
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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END
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July 19, 2022 02:00 ET (06:00 GMT)
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