City of London Investment Group (CLIG) H1 2025 earnings summary

Executive summary

• Funds under Management (FuM) reached $9.9b as of 31 December 2024, down from $10.2b at 30 June 2024 but up from $9.6b at 31 December 2023, with new Emerging Markets and Listed Private Equity accounts added.

• Long-term investment performance ranked in the first or second quartile for all strategies, with strong absolute and relative performance delivered across most strategies.

• Underlying profit before tax for the six months ended 31 December 2024 was $15.2m, up 14% year-over-year; net fee income rose 10% to $35.3m.

• Interim dividend of 11p per share declared, payable in April 2025.

• Annualised cost reduction of $3m targeted by FY2026.

Financial highlights

• Average FuM for the period was $10.3bn, up 12% from the same period in 2023.

• Underlying earnings per share for the half year were 17.8p; underlying EPS rose 12% to 22.9¢ (17.8p) per share.

• Cash and cash equivalents at period end were $30.2m.

• Administrative expenses increased 6% to $23.6m, mainly due to higher legal, marketing, travel costs, and FX impact.

• Dividend policy maintains a 1.20 coverage ratio over a rolling five-year period.

Outlook and guidance

• Significant product capacity remains, with $6b available in equity, fixed income, and alternatives.

• Management remains constructive on performance outlook, citing wide closed-end fund discounts as attractive entry points.

• Monetary easing in the US and potential shifts in global capital flows may benefit international and emerging markets.

• Group marketing focuses on HNW individuals, family offices, and RIA channels in the US.

• Focus remains on cost reduction, with $3m in annualized savings targeted.