City of London ends ‘year of major challenge’ with 21.2% fall in pre-tax profits
City of London Investment Group PLC saw its total funds under management (FuM) fall 9% during H2 2018, impacting revenues and pre-tax profits.
For the six months to 31st December 2018, the company had £3.6bn in FuM, compared with £3.9bn at the end of 2017.
Consequently, revenues generated from FuM slid to £15.6m for the period, a year-on-year decrease of 8.8%, while pre-tax profit fell 21.2% to £5.2m.
City of London attributed the decrease in FuM to weakness across the emerging and frontier market sectors, along with a degree of “ongoing asset re-balancing” by some of its clients.
The reduction, it said, masks gains made in attracting new funds to the firm’s developed and opportunistic value products, which now account for 15% of its total asset base.
Barry Aling, chairman of City of London Investment Group, said of the results: “2018 proved to be a year of major challenge across the emerging markets, particularly in the half year just ended.
“Nevertheless, CLIG has faced many similar if not greater challenges over the years since first becoming a listed company in 2006.”
He continued: “Throughout that period, we have adhered strictly to a value-driven process in the management of our clients’ assets and a prudent policy with regard to cost and operational management of the business.
“Taken together, we believe that these twin tenets will continue to serve the interests of both clients and shareholders in the form of enhanced returns and I would like to thank our loyal and hard-working employees for their efforts in sustaining this ethos during this challenging period.”
Looking to promote your product or service? Bdaily Marketing can help you reach a regional business audience. Request our latest Media Pack →