14th Sep 2015 09:56
LONDON (Alliance News) - City of London Investment Group PLC on Monday reported higher full-year pretax profit, as revenue grew on the back of an increase in funds under management.
Pretax profit increased to GBP8.9 million in the year to June 30, from GBP7.4 million the prior financial year, and the company maintained its annual dividend at 24 pence per share.
Funds under management increased to GBP4.2 billion from USD3.9 billion, bolstered by good investment performance relative to peers for the company's emerging markets closed-end fund strategy, as well as fundraising for its diversification products, driving revenue to GBP25.4 million from GBP24.2 million.
Chairman David Cardale said that average funds under management at the end of a given month during the recent year was USD4.1 billion, with the corresponding figure in the current year to date at USD3.8 billion.
"Costs have been contained but clearly the outcome for the year will be determined by the direction of markets (on which I am not expressing an opinion but note our proactive stance in ensuring that our cost base responds to adverse movements), our investment performance and client wins and redemptions," Cardale said in a statement.
"As regards the latter we are grateful to the loyalty shown by clients during a period when Emerging Markets have fallen out of favour. I have every reason to believe that our well-honed investment process for our core products will continue to deliver returns superior to our peer group and thereby reward both longstanding and new clients for putting their trust in this firm," Cardale said.
City of London Investment Group said that marketing efforts will be targeted at investment consultants, foundations, endowments and pension funds.
It has opened an office in Seattle to better cover the US institutional marketplace, as well adding a new marketing resource on order to focus on the US West Coast.
"We will also continue to introduce our capabilities to family offices, outsourced CIO firms and alternative consultants. Our Developed, Global Tactical Asset Allocation, and Frontier Emerging Market capability will be the focus of our product diversification and business development activities," the company said.
Shares in City of London Investment Group were down 0.8% at 337.25 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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