12th Jan 2016 10:03
LONDON (Alliance News) - City of London Investment Group PLC on Tuesday said funds under management fell to USD3.8 billion from USD4.2 billion over the course of the second half of 2015.
The drop measured up against a 17% fall in the MSCI Emerging Markets TR Index, according to the investment manager, which said it was "pleased to report continued net inflows and outperformance" despite the fall in the index.
With "wins of just under" USD200.0 million expected to fund over the next three to six months, Chief Executive Barry Olliff said the group is in a "good place" versus peers and from the perspective of "client stability".
"Therefore," Olliff said, "we are increasing the net new money assumption for our emerging markets closed-end funds strategy to USD500.0 million for the next financial year. In addition, recent mandates are spread across Global Tactical Asset Allocation, Frontier also EM and three specialist China mandates. This level of asset allocation diversity is not something that we have experienced in the past."
As of the end of December, the group said, the monthly "run-rate" for operating profit, before profit-share of about 30%, is roughly GBP900,000 per month based upon current funds under management. The group estimated unaudited pretax profit for the six months ended December 31, 2015 to be about GBP3.6 million, which compares to GBP4.3 million for the equivalent period the prior year, as adjusted for new accounting rules.
Shares in City of London Investment Group were up 0.9% at 333.0 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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