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City of London Investment Group deliver strong performance despite pandemic

City of London Investment Group (LON:CLIG) have published final results for the year to the 30th June 2020.

SUMMARY

Funds under management (FuM) at 30th June 2020 were US$5.5 billion (2019: US$5.4 billion), an increase of 2%. In sterling terms, FuM increased by 5% to £4.4 billion (2019: £4.3 billion).
Revenues, representing the Group’s management charges on FuM, were £33.3 million (2019: £31.9 million). Underlying profit before tax and exceptional items was £10.7 million (2019: £11.4 million). Profit before tax was £9.4 million (2019: £11.4 million). Underlying profit before tax, exceptional items and losses/(gains) on seed investments in REIT funds was £11.5 million (2019: £10.6 million).
Underlying basic earnings per share before exceptional items were 35.3p (2019: 34.9p). Basic earnings per share were 30.3p (2019: 34.9p) after an effective tax charge of 22% (2019: 21%) of pre-tax profits.
A final dividend of 20p per share is recommended, payable on 30th October 2020 to shareholders on the register on 9th October 2020, making a total for the year of 30p (2019: 40.5p including special dividend of 13.5p).

BOARD CHANGE

Susannah Nicklin has advised the Board of her intention not to seek re-election as a Director at the forthcoming AGM on October 19th, due to external commitments. As a consequence, the CLIG Nomination Committee has initiated a search process for a replacement with a view to making an appointment in the near future. This will also involve a replacement appointment for the role of Senior Independent Director. Barry Aling will assume the Chair of the Nomination Committee on an interim basis.

Susannah has been a valued and active member of the Board over the last three years and we would like to extend our sincere thanks for her tireless efforts throughout that period both as a Director and Chair of the Nomination Committee. We wish her well in her future endeavours.

UPDATE ON MERGER OF CLIG WITH KMI

CLIG announced the Proposed Merger with Karpus Management Inc on 9th June 2020 and subsequently a Prospectus to Shareholders was issued on 12th June 2020. The Merger was approved by shareholders on 13th July 2020. Completion of the Merger is on schedule, including KMI’s client approval process, and is expected to be completed on 1st October 2020 (the “Completion Date”).

As at 31st August 2020, KMI had US$3.6 billion of FuM compared with US$3.4 billion at 31st May 2020.

You can read the full report here: CLIG Results

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