TIDMCLIG
RNS Number : 9932E
City of London Investment Group PLC
13 July 2021
City of London Investment Group PLC
13 July 2021
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 2021
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 ("CEF"), provides
a pre-close trading update for its financial year ended 30 June
2021. The numbers that follow are unaudited.
On a consolidated basis, Funds under Management (FuM) were
US$11.4 billion (GBP8.3 billion) at 30 June 2021. This compares
with US$5.5 billion (GBP4.4 billion) at the Group's year end on 30
June 2020, which was before the merger with Karpus Management Inc.
("KIM") on 1 October 2020 (the "Completion Date"). A breakdown by
strategy follows:
FuM ($ million) Strategy Index
Jun-21 Jun-20 % Net %
(estimate) inc/dec Flows inc/dec
EM 5,393 3,828 41% (275) MSCI EM Net TR 40.9%
KIM 3,919 3,578 10% (213) Not applicable
INTL 1,938 1,244 56% (14) MSCI ACWI ex US 35.7%
ACWI/Barclays Global
OV 173 256 (32%) (103) Agg 19.8%
Other* 26 175 (85%) (169)
11,449 9,081 (774)
----------- ------- ------
* includes Frontier, REIT and seed investments
KIM FuM as at 1 October 2020 (date of merger)
Strong investment performance across CLIG's investment
strategies resulted from strong NAV performance at the underlying
closed end funds and positive discount effects.
At year end, both CLIG operating subsidiaries hit all-time FuM
highs following the significant equity market gains of recent
months and strong relative performance. This was tempered by the
high levels of client rebalancing and liquidations, leading to net
outflows of circa US$774 million across the Group's strategies.
With regard to business development, the Group continues to
develop an active pipeline across all of its major CEF
offerings.
Operations
The Group's income currently accrues at a weighted average rate
of approximately 74 basis points of FuM, net of third party
commissions.
The Group's overheads for the year to 30 June 2021 are expected
to be GBP16.8 million (2020: GBP13.0 million). "Fixed" costs are
c.GBP1.6 million per month, and accordingly the run-rate for
operating profit, before profit-share and amortisation of
intangibles is approximately GBP3.3 million per month based upon
current FuM and a US$/GBP exchange rate of US$1.3831 to GBP1 as at
30 June 2021.
For the year to 30 June 2021, the Group estimates that the
unaudited profit before amortisation of intangibles, exceptional
merger costs and taxation to be approximately GBP27.2 million,
including non-controlling interest ("NCI") profit of nil (2020:
GBP10.7 million, NCI loss of GBP0.2 million).
Profits after an anticipated tax charge of GBP5.3 million
(representing 22% of profits before exceptional merger costs and
taxation) will be approximately GBP17.0m (2020: profits of
GBP7.6million after a tax charge of GBP2.0 million, representing
19% of profits before exceptional merger costs and taxation). Basic
and fully diluted earnings per share are expected to be 39.4p and
38.8p respectively (2020: 30.3p and 29.5p).
Dividend
The Board is proposing to recommend a final dividend of 22p per
share (2020: 20p), subject to approval by shareholders at the
Company's Annual General Meeting to be held on 18 October 2021.
This would bring the total dividend payment for the year to 33p
(2020: 30p). Rolling five-year dividend cover equates to 1.29 times
(2020: 1.24 times).
The Board confirms the final dividend timetable for the year to
30 June 2021:
-- ex-dividend date: 7 October 2021
-- dividend record date: 8 October
2021
-- payable: 29 October 2021
City of London expects to announce its final results alongside
publication of its Accounts for the year to 30 June 2021 on 13
September 2021. The Group's Annual General Meeting will be held on
18 October 2021.
Dividend cover template
Please see dividend cover template attached here.
http://www.rns-pdf.londonstockexchange.com/rns/9932E_1-2021-7-12.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/Pippa Hamnett
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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