City of London Investment Group PLC Interim Management Statement/Trading Update

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City of London Investment Group PLC (LON:CLIG), a leading specialist asset management group focused on emerging markets and closed-end funds, has provided a third quarter trading update for the period 1 January 2018 to 31 March 2018. Total funds under management (FuM) at 31 March 2018 were US$5.4 billion (£3.9 billion). This compares with US$5.3 billion (£3.9 billion) at the Company’s half-year on 31 December 2017. A breakdown by strategy follows:

	FuM ($mn)				Strategy Index

	Dec-17	Mar-18	% inc /	Net		% inc /
		(estimate)	dec	Flows		dec

EM	4,660	4,634	-1%	(38)	MSCI EM	1%
DEV	337	433	28%	102	MSCI ACWI	-1%
GTAA	139	150	8%	13	ACWI/Barclays Global Agg	0%
Frontier	193	202	5%	–	MSCI Frontier	5%
	5,329	5,419		77

Positive relative investment performance was recorded in the Developed strategy, whilst the EM, GTAA and Frontier strategies underperformed. Sharply wider discount movements, driven by increased volatility, drove relative performance, whilst the Developed strategy benefitted from strong NAV performance. Net flows were positive in aggregate over the period, particularly in the Developed strategy which continues to benefit from a focused marketing strategy and excellent long term investment results.

With regards to business development, the Group continues to maintain an active pipeline across all of its major CEF offerings with an increased interest in the diversification CEF strategies. In total the active pipeline is in excess of US$400 million, these include opportunities that are spread across Emerging and Developed Markets, Global Tactical Asset Allocation, Tactical Income, and Frontier CEF strategies.

Operations

The Group’s income accrues at a weighted average rate of approximately 80 basis points, net of commissions and custody charges. “Fixed” costs are c£1.0 million per month, and accordingly the current run-rate for operating profit, before profit-share at 30%, and an estimated EIP charge of 2%, is approximately £1.5 million per month based upon current FuM and a US$/£ exchange rate of US$1.42 to £1.

Further to the City of London Investment Management press release of 12th April, the Group received notice of an appeal on 16th April. The City of London Investment Group would estimate that at the present time the effect on the Group P&L will not be material.

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Dividends

The interim dividend of 9 pence per share was paid on 16 March 2018. The Board will announce the final dividend on Tuesday 17 July 2018 in its pre-close trading update.