#London #United Kingdom #Asset Management #City of London #CLIG

City of London Investment Group PLC Sees Promising Growth

City of London Investment Group PLC, commonly known as CLIG, released its pre-close trading update for the financial year that concluded on June 30, 2025. The company, recognized as a specialist in asset management, reported a substantial 5.6% increase in funds under management (FuM) from $10.2 billion the previous year, bringing the total to $10.8 billion.

Investment Performance Overview

The investment strategies of CLIG have thrived amid favorable market conditions, with all strategies exceeding their designated benchmarks considerably. For instance, the Emerging Markets strategy recorded a remarkable return of 20.3%, well above its benchmark of 14.8%. Similarly, the International Equity strategy outperformed its benchmark by 500 basis points, achieving 22.7% returns.

Summary of Strategies Performance

The detailed performance metrics of CLIG’s main strategies are as follows:

• - Emerging Markets: +20.3% vs +14.8% (Benchmark)
• - International Equity: +22.7% vs +17.7%
• - Opportunistic Value: +17.5% vs +12.8%
• - Listed Private Equity: +16.6% vs +8.0%

These figures underscore the effectiveness of CLIG’s strategic positions in various markets, notably benefitting from improved corporate governance and narrowed discounts in closed-end funds (CEFs). This advantageous environment has allowed CLIG to acquire positions in undervalued assets and effectively engage with boards to mitigate discounts through actions such as share buybacks and restructuring.

Market Volatility and Strategic Success

The heightened market volatility that surfaced post the 2024 election of President Trump also created additional opportunities for CLIG. The firm saw substantial flows into its International Equities and Emerging Markets strategies, particularly as non-US equities began to demonstrate stronger performance compared to US stocks.

The increased interest in international equities has been spurred by demand for European and UK large-cap stocks, along with smaller caps that benefited from renewed investor focus. On the other side, the Emerging Markets strategy thrived, particularly due to holdings in South Korean companies that have gained traction from government reforms aimed at enhancing corporate governance and shareholder returns.

Performance Highlights of KIM Strategies

Beyond the CLIM strategies, the KIM division also demonstrated robust performance. It recorded figures such as a 12.71% return for its Growth Balanced strategy, exceeding its benchmark by 55 basis points. Performance across various KIM strategies showcases consistent strength, especially in fixed income, where the Tax-Sensitive Fixed Income and Taxable Fixed Income strategies surpassed benchmarks significantly over the past five years.

Assessment of Financial Flows

Despite net outflows of $974 million for the financial year, largely attributed to initial macroeconomic uncertainties and profit-taking following strong performance, CLIG managed to secure new mandates for key strategies. Notably, they received significant inflows of $60 million into the Listed Private Equity strategy and an additional $70 million into the Emerging Markets strategy.

Leadership Developments

In a leadership update, Mike Edmonds was appointed Chief Investment Officer of CLIM, bringing a wealth of experience to the role. Also, Rian Dartnell continues to guide the firm’s vision as Chairman as they search for a new CEO to suit the Group’s future leadership needs.

Conclusion and Forward Outlook

The Board's expectation of maintaining dividends in line with the previous year indicates a position of strength for the firm. As operations continue to focus on enhancing client service and stakeholder engagement, CLIG is strategically poised for sustainable long-term success. Investors and stakeholders can look forward to the final dividend announcement on September 16, 2025, alongside the full financial results.

For further information, visit CLIG’s official website or contact the company directly.