City of London Investment Group (CLIG) H2 2025 earnings summary

Executive summary

• Specialist asset manager with over 30 years of experience, managing $10.8 billion FuM as of June 30, 2025, and offering both equity and fixed income strategies through City of London and Karpus divisions.

• Strong recurring cash flow, high dividend payout history, and a global, experienced team.

• Diverse revenue streams and significant capacity for new funds under management, enhanced by the 2020 merger with Karpus.

• Strong, enduring client relationships, primarily with U.S. institutional clients, but expanding internationally.

Financial highlights

• Underlying EPS grew 9.6% to 36.7p, and by 13% in dollar terms despite a 3% weaker dollar.

• Funds under management increased 5.6% year-over-year to $10.8 billion, with average AUM up 7%.

• Net fee income for the year was $69.8 million; profit before tax rose 13% to GBP 30.8 million.

• Cost-income ratio improved from 42% to 40%, and employee costs fell 2%.

• Proposed dividend of 22p per share, with total dividends since listing amounting to 520.1p per share.

Outlook and guidance

• Positive outlook for emerging and international markets, representing 57% of AUM, with renewed client interest as the U.S. dollar weakens.

• Significant available capacity in core strategies: GBP 2.5 billion in emerging/international equities, $1 billion each in opportunistic value, listed private equity, and global equity.

• Ongoing product innovation and strategy evolution, including new strategies like emerging markets ex-China.