Half Year Results and Dividend Declaration

24th February 2026

CITY OF LONDON INVESTMENT GROUP PLC

("City of London", "CLIG", "the Group" or "the Company")

HALF YEAR RESULTS TO 31ST DECEMBER 2025 AND DIVIDEND DECLARATION

City of London (LSE: CLIG) announces that it has today made available on its website, https://www.clig.com/, the Half Year Report and Financial Statements for the six months ended 31st December 2025.

The above document will be uploaded to the National Storage Mechanism, in accordance with UKLR 6.4.1R, and will shortly be available for inspection at:

https://data.fca.org.uk/#/nsm/nationalstoragemechanism

FINANCIAL HIGHLIGHTS

For access to the full interim report, please follow the link below:

http://www.rns-pdf.londonstockexchange.com/rns/0753U_1-2026-2-23.pdf

Dividend

The Board declares an interim dividend of 11 pence per share, which will be paid on 2nd April 2026 to shareholders registered at the close of business on 6th March 2026 (2025: 11 pence).

Shareholders may choose to reinvest their dividends using the Company's Dividend Reinvestment Plan, to do this please visit www.signalshares.com or if you hold your shares through a broker please contact them. The deadline to lodge your election is 13th March 2026.

The Board confirms the following interim dividend timetable:

For further information, please visit www.clig.co.uk or contact:

Cooper Abbott, CEO

City of London Investment Group PLC

Tel: 001-610-380-2110

Martin Green / Louisa Waddell

Zeus Capital Limited

Financial Adviser & Broker

Tel: +44 (0)20 3829 5000

CHAIR'S STATEMENT

Introduction

It has been a busy and productive period for CLIG. The six months ending 31st December 2025 saw continued improvements for your Company: funds under management grew, performance for our clients was strong, and your team implemented new processes to improve productivity and generate savings. Our efforts over the past year to instil greater empowerment of our teams, a broader leadership structure and a sharper focus on efficiency are producing tangible results. Client engagement is a key focus and there is much greater outreach. As our team stepped forward to lead these initiatives, your Board and Nomination Committee conducted an extensive search for our next CEO.

Welcome Cooper Abbott, CLIG's new CEO

As announced in January, we are delighted to welcome Cooper Abbott. Cooper has an investor's mindset, a proven ability to develop high-quality investment businesses, and a firm commitment to upholding CLIG's exacting fiduciary standards. His depth of experience across asset classes, markets, and client types aligns well with our long-term strategy. He brings sound judgment and a keen focus on empowering teams to deliver outperformance for our clients.

We were fortunate to meet Cooper early in our search and have gotten to know him over the past six months. Importantly, he has had the opportunity to study CLIG and to visit our team across geographies to get to know us. I am happy to report that early indications are positive - Cooper is digging in with enthusiasm. Now to the important elements of strategic planning and building on the strong foundation we have in place.

Cooper's first CEO statement on page 7 of the full interim report begins to outline our priorities going forward.

Assets

Funds under management (FuM) averaged $11.2 billion in the period from 1st July 2025 to 31st December 2025, approximately 13% higher than the same period in 2024. Our investment teams delivered measurable alpha across multiple strategies, which has offset the effect of outflows during the first half of the financial year. FuM increased by 4% to $11.2 billion as of 31st December 2025 as compared to $10.8 billion as of 30th June 2025. FuM growth has continued into 2026 with assets totalling $11.9 billion as of 18th February 2026.

Market overview

Equities built on gains from the first half of the year as the MSCI ACWI TR Index delivered an 11.4% return for the six months ending 31st December 2025. Bonds were broadly flat with the Bloomberg Global Aggregate Total Return Index gaining just 0.8% during the period. Commodities provided divergent performance with gold surging 30.7% while Brent oil lagged with a fall of 4.6%.

Your Board

Cooper Abbott joined the CLIG Board as an Executive Director with effect from 21st January 2026. Peter Roth continues as Senior Independent Director and Chair of our Audit and Risk Committee, Sarah Ing is Chair of our Remuneration Committee and Ben Stocks is Chair of the Nomination Committee. Ben had a particularly active start to his tenure on the Board and ably guided us in our CEO selection process - thank you, Ben! Our working relationship among the Board members and with our employees remains constructive and enjoyable. Our focus continues to be on ensuring a stable and supportive environment for our teams and efficient management of the business for all stakeholders. The Board took a particularly active role engaging with CLIM and KIM this year during our CEO search. This gave us a deeper feel for the business and reminded us of the high-quality team we have at CLIG. The Board had an extremely busy year, and I want to thank my colleagues for their dedication.

Dividends

Your Board is declaring an unchanged interim dividend of 11p per share. We continue to believe that the 1.2 times dividend cover policy based on a rolling five-year period provides a prudent template that serves to protect shareholders from volatility that can affect profits of asset management companies. The Board applies this policy using Underlying Profits†. The interim dividend will be paid on 2nd April 2026 to those shareholders registered at the close of business on 6th March 2026.

Shareholder engagement

We were highly engaged with shareholders this year to provide clarity during the transition period between CEOs as well as to project our message of staff empowerment and heightening accountability. Our Investor Meet Company sessions have been productive and well-attended. We plan to continue these. Lastly, we improved the format and content of our Annual General Meeting last October and were gratified with the attendance and engagement from our shareholders and prospects. We are in the planning phase for a roadshow and an investor day to introduce our new CEO to our stakeholders.

Outlook

We have witnessed heightened news flow and volatility throughout the past year, coinciding with the new US Presidency. At the same time, inflation has substantially subsided allowing for lower interest rates and a pick-up in economic growth rates across many economies. With the US dollar exhibiting weakness, investors have been rewarded for venturing out of the S&P 500 and the Magnificent Seven that had been stealing the show in recent years. With International and Emerging Markets making up 57% of CLIG's FuM, this has been very welcome. Our FuM stood at $11.9 billion as at 18th February 2026, an all-time high for CLIG and a happy contrast with the $8.4 billion in FuM as of our recent lows in October 2022. Excellent performance by our investment teams continues supporting client outcomes and profits for your Company. We continue to note a rising level of interest in the markets in which we invest.

Conclusion

2025 was a good year for our clients as our performance across strategies was strong. It was also a year of significant transition as we welcome a talented new CEO to lead CLIG and take us to the next level. Our focus now shifts to pushing into the current: modernising how we work while also navigating new rapids; looking for better ways to operate, exposing CLIG to other best-in-breed players and extending our reach.

Thank you to our teams at CLIM and KIM for their steadfast support and for stepping up over the period. Change is not easy, but you were patient and remained highly focused on our core objective: performing for our clients.

Sincerely yours,

Rian Dartnell

Chair

23rd February 2026

†This is an Alternative Performance Measure (APM). Please refer to the Financial review for more details on APMs

CHIEF EXECUTIVE OFFICER'S REVIEW

Dear shareholders & clients:

It is my pleasure to join City of London Investment Group, and I am honoured to serve as your Chief Executive Officer and Board Member. I have long admired CLIG's unique value proposition, with deep investment and allocation expertise, and commitment to delivering outstanding client service.

Our two affiliates, City of London Investment Management (CLIM) and Karpus Investment Management (KIM), have long records of helping sophisticated investors achieve financial outcomes and of putting the needs of clients foremost. This has provided a basis for partnership and long-term relationships that have both compounded over time.

A firm becomes truly distinctive when its people and purpose are anchored in guiding capital through changing cycles with a clarity of mission. CLIG exemplifies this by maintaining a disciplined, shareholder‑aligned framework that supports long‑term value creation rather than short‑term noise. That stability allows our subsidiaries to operate with independence of thought and unity of principle: clients come first, integrity governs decisions, and judgment - not fashion - sets the strategic horizon.

My goal is to build on the combined heritage of CLIM and KIM, creating an environment where talent can flourish in a flexible, entrepreneurial, and transparent culture.

Deep investment capabilities offer distinct and successful approaches to active management. These research-based levers include portfolio allocation, security and fund selection, management of discount volatility, security level engagement, and trading - active approaches that have delivered results across a range of market environments and cycles. This important experience in challenging and volatile markets, is likely to continue to be well rewarded.

Investment management performance

Performance of investment strategies at CLIM and KIM are noted below, along with observations.

Figure 1. Long-term performance for CLIM strategies

The above returns are presented as net of fees performance figures. The CLIM Global Emerging Markets Strategy is shown against the S&P Emerging Frontier Super Composite BMI Net TR Index, the CLIM Global Developed CEF International Equity Strategy is shown against the MSCI ACWI ex-US Net TR Index, the CLIM Opportunistic Value Strategy is shown against the Blended 50/50 MSCI AWCI/Bloomberg Global Aggregate Bond Index, and the CLIM Listed Private Equity Strategy is compared to an 8% annual hurdle rate. The CLIM Global Developed CEF Global Equity Strategy is shown against the MSCI ACWI Net TR Index. Data is as of 31st December 2025. Past performance is no guarantee of future results.

CLIM's Emerging Markets strategy outperformed the benchmark by an impressive 540 basis points (bps) for the six-month period, and delivered 41.9% returns for 2025.

· Performance was aided by strong country allocation, including overexposure to Vietnam and underweighting the underperforming Indian market.

· The strategy also managed discount volatility and benefited from corporate initiatives within the investment universe.

· Strong net asset value (NAV) performances over the period from several of our largest portfolio holdings.

CLIM's International Equity and Opportunistic Value strategies posted modest underperformance of 40 bps and 90 bps for the six-month period, and generated solid annual results of 36.4% and 17.7% respectively.

· International Equity's market-cap exposure to UK and European smaller companies detracted from returns, but benefitted from country allocation decisions, and management of discount volatility.

· Opportunistic Value captured significant upside from discount volatility, but this was offset by weakness in several alternative funds' NAV performance and an underweight to equities relative to its benchmark.

CLIM's Listed Private Equity strategy performed strongly, with 1620 bps of outperformance for the six-month period, and total returns of 24.2% for 2025.

· Performance was meaningfully boosted by a corporate action from a key holding which resulted in a significant uplift.

· Investee funds continue to deliver from a NAV perspective and are beginning to benefit from an increased level of realisations among the private equity universe generally.

CLIM's Global Equity strategy continued to build on its track record since its launch at the end of 2021. It outperformed its benchmark by 300 bps over the six-month period and returned 29.6% in 2025.

· Discount volatility capture was the primary source of outperformance aided by some additional returns from its positioning with a modest underweight to the US market and overweights to the UK, Japan and Emerging Markets.

Figure 2. Long-term performance for KIM strategies

The KIM Fixed Income Strategy is shown against the Bloomberg Government/Credit Bond Index, the KIM Tax-Sensitive Fixed Income Strategy is shown against the Bloomberg Municipal Bond Index, the KIM Growth Balanced Strategy is shown against the Blended 40% Bloomberg Government/Credit Bond Index/39% Russell 3000 Index/21% MSCI ACWI ex USA Net TR Index. The KIM Conservative Balanced Strategy is shown against the Blended 60% Bloomberg Government/Credit Bond Index/26% Russell 3000 Index/14% MSCI ACWI ex USA Net TR Index. The KIM Equities Strategy is shown against the Blended 65% Russell 3000 Index/35% MSCI ACWI ex USA Net TR Index. The KIM Cash Management Strategy is shown against the ICE BofA 1-3 Year US Treasury Index. Data is as of 31st December 2025. Past performance is no guarantee of future results.

Fixed Income Commentary

· During the six-month period, the 10-year US Treasury yield declined by 6 bps, while the yield on 10-year AAA municipal bonds fell by 48 bps.

· Within fixed income, key performance drivers included municipal bond CEFs, which benefited from strong NAV appreciation and narrowing discounts, as well as preferred securities and senior notes issued by CEFs and business development companies (BDCs).

· Conversely, while performing in line with our expectations, pre-acquisition SPACs detracted from performance due to their shorter duration relative to the benchmark.

· Additional performance tailwinds came from significant tender offers executed near NAV and liquidations of CEFs.

· While short-term results are important, KIM's long-term performance remains standout and over the past five years, the Taxable Fixed Income and Tax-Sensitive Fixed Income strategies have outperformed their respective benchmarks by 4.9% and 2.8% annually.

Equity Commentary

· International equities returned 12.3% over the second half of 2025, outpacing US equities which returned 10.8%.

· Equity CEFs modestly underperformed primarily due to poor NAV performance. A modest overweight to US stocks also detracted from performance relative to the benchmark.

Funds under Management & flows

Figure 3. Current year movement in FuM by strategy ($m)

* Includes Frontier and alternatives

Funds under Management figures are rounded

Client rebalancing, asset allocation changes, and capital needs led to net outflows of $853 million for the Group over the period, led by CLIM Emerging Markets (EM), International Equity and KIM Growth Balanced strategies.

Most client outflows were driven by two primary factors:

· Portfolio rebalancing, where strong performance and asset allocation reviews prompted shifts back to target weights.

· Strategic or structural changes, such as pension funds reaching funded status and moving to liability matching strategies; consultant changes, particularly for Outsourced Chief Investment Officer (OCIO) clients, which often catalyse pre-determined manager changes; and withdrawals to meet funding or cash flow needs for capital projects.

The majority of strategies are currently reporting higher FuM levels than at the year end, reflecting the impact of favourable market conditions and investment team performance. These results highlight the stability of the portfolios during a period of mixed flow activity.

Investment teams have delivered measurable alpha across multiple strategies.

CLIM recorded $100 million in gross inflows, driven primarily by continued demand for EM and International Equity strategies. KIM recorded $147 million in gross inflows predominantly across the Taxable Fixed Income, Tax Sensitive Fixed Income and Growth Balanced strategies.

Persistent volatility and strong longer-term outperformance of the Group's strategies continue to shape our marketing efforts, supported by what appears to be an increased level of interest in the asset class strategies we offer.

Figure 4. FuM by strategy

Share price KPI

CLIG targets a total return (share price plus dividends) to compound annually in a range of 7.5% to 12.5% over a five-year period. For the five years ended 31st December 2025, the total return was 31.4%, or 5.6% annualised (source, Bloomberg).

CLIG's total return since listing in April 2006 is an annualised return of 11.8%.

Figure 5. CLIG's total return since listing in April 2006 v/s UK Small Cap indices (annualised)

Sustainability / ESG

We secure renewable energy for our London, West Chester, PA and Rochester, NY offices in an effort to minimise negative environmental impact. Business travel increased during the period with growth in our marketing efforts as the team met clients and prospects. The Group will continue to offset the carbon emitted by business travel in the 2025/2026 financial year. Our Annual Report & Accounts in 2026 will provide additional reporting on environmental initiatives and data.

All employees regularly receive training to promote an inclusive work environment. To reinforce vigilance in protecting our network infrastructure, all employees receive monthly training on the critical issue of cybersecurity.

The Group is strongly committed to regular workforce engagement sessions to develop a closer relationship between employees and the Non-Executive Directors (NEDs). We had a series of meetings and Town Halls with employees over the past six months to provide continuity and transparency.

Outlook

We can expect the second half of our financial year to present challenges and volatility, creating opportunities for our active management strategies. I know that our talented investment teams will work diligently to help achieve results.

In a world where complexity grows but trust remains scarce, our firm's role is simple but profound: serve with transparency, invest with prudence for results, and earn confidence one relationship at a time.

I welcome the opportunity to serve you, the Board, and to work with the talented group of professionals at the Group. Together, we will strive to deliver great outcomes and meaningful value for our clients, shareholders, and colleagues.

Cooper Abbott, CFA, CAIA

Chief Executive Officer

23rd February 2026

FINANCIAL REVIEW

Financial results

Net fee income rose by 6% in the first six months of FY2026 to $37.3 million compared to the same period in FY2025 ($35.3 million) due to higher average FuM of $11.2 billion over the current period compared to $10.3 billion in the first six months of FY2025.

The Group's profit before tax increased c.11% for the six months ended 31st December 2025 to $13.9 million as compared to $12.6 million for the six months ended 31st December 2024. Underlying profit before tax† for the six months ended 31st December 2025 was also higher by c.7% at $16.2 million as compared to $15.2 million for the six months ended 31st December 2024.

EPS for the six months ended 31st December 2025 increased by c.14% to 21.6¢ (16.1p†) per share from 19.0¢ (14.7p†) per share for the six months ended 31st December 2024. Underlying EPS† for the six months ended 31st December 2025 increased by c.10% to 25.1¢ (19.5p) per share from 22.9¢ (17.8p) per share for the six months ended 31st December 2024.

The Group's fee income and the bulk of expenses are incurred in US dollars; however, c.33% of Group overheads are incurred in sterling that are subject to USD/GBP currency rate fluctuations. On average, the dollar weakened by c.4% against sterling to 1.339 for the six months ended 31st December 2025 from 1.287 for the six months ended 31st December 2024. The weaker dollar meant that our sterling-denominated expenses cost more in US dollar terms.

Alternative Performance Measures

The Directors use the following Alternative Performance Measures (APMs) to evaluate the performance of the Group as a whole:

Earnings per share in pence - Earnings per share in US dollars as per the income statement is converted to sterling using the average exchange rate for the period. Refer to note 6 in the financial statements.

Underlying profit before tax - Profit before tax, adjusted for gain/loss on investments and amortisation of intangibles. This provides a measure of the profitability of the Group for management's decision-making.

Underlying earnings per share in pence - CLIG's shares are quoted on the London Stock Exchange therefore the dividend is declared in sterling. Underlying profit before tax, adjusted for tax as per the income statement and the tax effect of adjustments is used to calculate underlying profit after tax. This figure is then divided by the weighted average number of shares in issue as at the period end. Underlying earnings per share is converted to sterling using the average exchange rate for the period. Refer to the reconciliation on note 6 in the financial statements.

†This is an Alternative Performance Measure (APM).

CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 31ST DECEMBER 2025

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31ST DECEMBER 2025

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31ST DECEMBER 2025

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 31ST DECEMBER 2025

CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 31ST DECEMBER 2025

NOTES

1 BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

The financial information contained herein is unaudited and does not comprise statutory financial information within the meaning of section 434 of the Companies Act 2006. The information for the year ended 30th June 2025 has been extracted from the latest published audited accounts which have been delivered to the Registrar of Companies. The report of the independent auditor on those financial statements contained no qualification or statement under s498(2) or (3) of the Companies Act 2006.

These interim financial statements have been prepared in accordance with the International Accounting Standard 34, "Interim Financial Reporting" as contained in UK-adopted International Accounting Standards and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority. The accounting policies adopted and the estimates and judgements used in the preparation of the unaudited consolidated financial statements are consistent with those set out and applied in the statutory accounts of the Group for the year ended 30th June 2025, which were prepared in accordance with UK-adopted International Accounting Standards.

The consolidated financial information contained within this report incorporates the results, cash flows and financial position of the Company and its subsidiaries for the period to 31st December 2025.

Group companies are regulated and perform annual capital adequacy and liquidity assessments, which incorporates stress testing based on loss of revenue on the Group's financial position over a three-year period. The Group has performed additional stress tests using several different scenario levels, over a three-year period on the Group's financial position from 31st December 2025.

The Group's financial projections, capital adequacy and liquidity assessments provide comfort that the Group has adequate financial and regulatory resources to continue in operational existence for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis of accounting in preparing the interim financial statements.

New or amended accounting standards and interpretations adopted

The Group has adopted all the new or amended accounting standards and interpretations issued by the International Accounting Standards Board (IASB) that are mandatory for the current reporting period. Any new or amended accounting standards that are not mandatory have not been early adopted. None of the standards not yet effective are expected to have a material impact on the Group's financial statements.

2 SEGMENTAL ANALYSIS

The Directors consider that the Group has only one reportable segment, namely asset management, and hence only analysis by geographical location is given.

 3 FINANCE INCOME

4 FINANCE EXPENSE

5 GAIN ON INVESTMENTS

6 EARNINGS PER SHARE

The calculation of earnings per share is based on the profit for the period attributable to the equity shareholders of the parent divided by the weighted average number of ordinary shares in issue for the six months ended 31st December 2025.

As set out in note 8 the Employee Benefit Trust held 1,306,367 ordinary shares in the Company as at 31st December 2025. The Trustees of the Trust have waived all rights to dividends associated with these shares. In accordance with IAS 33 "Earnings per share", the ordinary shares held by the Employee Benefit Trust have been excluded from the calculation of the weighted average number of ordinary shares in issue.

The calculation of diluted earnings per share is based on the profit for the period attributable to the equity shareholders of the parent divided by the diluted weighted average number of ordinary shares in issue for the six months ended 31st December 2025.

Reported earnings per share

Underlying earnings per share*

Underlying earnings per share is based on the underlying profit after tax*, where profit after tax is adjusted for gain/loss on investments, amortisation of acquired intangibles and their related tax impact.

Underlying profit for calculating underlying earnings per share

^ Converted to sterling using the average exchange rate for the relevant period.

* This is an Alternative Performance Measure (APM). Please refer to the Financial review for more details on APMs.

 7 INTANGIBLE ASSETS