Business
AGM Trading Update - 1st Qtr Funds under Mgmt
AGM Trading Update - 1st Qtr Funds under Mgmt.
About this update from City Of London Investment Group Plc
[{"type":"text","content":"\n \nRNS Number : 0832M City of London Investment Group PLC 10 October 2016 \n\n10th October 2016\n \nCITY OF LONDON INVESTMENT GROUP PLC\n(\"City of London\", \"the Company\" or \"the Group\")\n \n \nAGM Trading Update - 1st Quarter Funds under Management (FuM)\n \nCity of London (LSE: CLIG), a leading emerging markets asset management group, announces that as at 30th September 2016, FuM were US$4.3 billion (£3.4 billion). This compares with US$4.0 billion (£3.0 billion) at the Company's year-end on 30th June 2016. In US dollar terms, this represents an increase of c9% (based on actuals not rounded figures) in-line with the MSCI Emerging Markets Net TR Index (US dollar based), which also rose by c9% over the same period. \n \nMonthly updates of FuM are available on our website www.citlon.co.uk.\n \n \nBREXIT\n \nIt is worth reiterating CLIG's experience with regard to BREXIT:\n \n· Virtually all CLIM income is USD based - our fees are sourced from US Institutions\n· No adverse effects on FuM since the referendum result\n· Over 90% of CLIM income on a see through basis is effectively derived from the Emerging Markets\n· Approximately 40% of Group costs are in GBP\n· Only 2.5% of CLIM assets are UCIT'S - very little fall out from BREXIT\n \n \nOperations\n \nThe Group's income currently accrues at a weighted average rate of approximately 86 basis points of FuM, net of third party commissions. \"Fixed\" costs for the quarter were c£0.9 million per month, and accordingly the current run-rate for operating profit, before profit-share of 30%, is approximately £1.4 million per month based upon current FuM and a US$/£ exchange rate of US$1.3 to £1 as at 30th September 2016. With sterling falling significantly against the dollar in recent days, using a rate of 1.24 would result in an operating profit run-rate of c£1.5 million per month.\n \nAlthough the operating profit run-rate is greatly improved from last year (2015: c£1.0 million per month), the Group is committed to containing costs in order to maximise shareholder returns.\n \nThe Group estimates that the post-tax profit for the first three months of the year will be approximately £2.3 mi...