4th Mar 2014 10:50
LONDON (Alliance News) - City of London Investment Group PLC Tuesday said its funds under management fell by 2.9% in the third-quarter, but added that net inflows have since been confirmed for funding during March 2014.
In a statement, City of London Investment Group said funds under management fell to USD3.4 billion on February 28, from USD3.5 billion on December 1, 2013. The 2.9% fall compares with a 5% fall in the MSCI Emerging Markets Index over the same period, according to the company.
It said net inflows of USD55.0 million have since been confirmed for funding during March.
The company said its income is currently accruing at a weighted average rate of approximately 86 basis points, net of commissions.
It said that accrual is consistent with the forward guidance provided in the half year report.
Fixed costs are running to budget at GBP800,000 per month, the company said. The current run rate for operating profit, before profit share, is approximately GBP600,000 per month based upon current funds under management and a sterling exchange rate of USD1.67.
"Additional cost efficiencies in excess of GBP500,000 are currently being implemented, some of which will accrue in this financial year and some of which will accrue next year," the company said.
The investment firm also said it expects to extend Chief Executive Barry Olliff's employment agreement until 2019.
The company will publish its pre-close trading update on July 15.
City of London Investment Group shares were Tuesday quoted up 4.6% at 251.23 pence.
By Samuel Agini; [email protected]; @samuelagini
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