Investments  

City of London AUM down despite £87m net inflows

City of London AUM down despite £87m net inflows

City of London Investment Group has seen a drop in its assets under management (AUM) due to the strengthening of the dollar.

The emerging market specialist said the AUM over the 12 months to June 30 2016 fell 5 per cent in dollar terms to $4bn from $4.2bn, much due to the currency’s strength against invested markets.

However, the figure rose 11 per cent in sterling terms as the currency weakened around the EU referendum. Assets rose from £2.7bn to £3bn.

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The firm saw net inflows in the year which it attributed to a “product of both positive investment performance and new and exisiting client inflows”.

It reported net inflows of $115m (£87m) into its “core emering market strategies” which the firm put down to significant value on offer by the widening discount of its investment trust vehicles.

Its “diversification products” saw net inflows of $10m – with these strategies share of the company’s AUM rising to 9.1 per cent from 8.5 per cent.

Chief executive Barry Olliff said the firm had taken full advantage of the rebound in emerging market sentiment seen in the year.

Mr Oliff added: “Investment performance in our core product, the Emerging Markets closed-end fund strategy, continued to perform well with results in the first or second quartile versus manager peers for the year...[with] clients encouraged by our strong relative performance ensured that we received a net increase in our [AUM].”