City of London Investment Group assets reach £4.1bn

City of London Investment Group assets reach £4.1bn

Funds under management for the City of London Investment Group have reached £4.1bn at the end of the first quarter of 2019 after climbing 14 per cent.

From January to March the firm's developed and emerging market strategies recorded a profit of $101m (£77.23m) and $45m (£34.41m) respectively, while net flows in frontier strategies were essentially flat.

By far the biggest driver of asset growth were the company’s developed market products which had a 33 per cent increase in assets under management.

The specialist asset management group said its emerging and developed market strategies had outperformed while the frontier market strategy underperformed due to unfavourable net asset value performance.

Fixed costs incurred by the firm are approximately £1.1m per month, and accordingly the current run-rate for operating profit is approximately £1.5m a month based upon current funds under management and the dollar-sterling exchange rate.

The company paid an interim dividend of 9 pence per share plus a special dividend of 13.5 pence per share on March 22, 2019.

The board will announce the final dividend on Tuesday July 16, 2019 in its pre-close trading update.