City of London Investment Group (CLIG) Investor update summary

Business Overview and Strategy

• Focuses exclusively on active investment management, specializing in exploiting discount volatility in closed-end funds for institutional and high-net-worth clients.

• Operates through City of London Investment Management (CLIM) and Karpus Investment Management (KIM), covering equity, fixed income, and alternative strategies.

• Diversified offerings post-2009, including developed markets, opportunistic value, and listed private equity strategies.

• Merger with Karpus in 2020 expanded client base and product mix, enhancing stability and growth potential.

• Emphasizes a team-based culture with no star managers, leveraging proprietary research and trading databases.

Financial Performance and Dividend Policy

• Assets under management (AUM) reached $10.7 billion as of September 30, 2024, with new Emerging Markets and Listed Private Equity accounts added.

• Underlying profit before tax for the year ended June 30, 2024, was $27.2 million.

• Maintains a strong cash position, with $34 million at June 2024 and $6 million in seed capital, even after a $14 million dividend payout.

• Dividend remains at 33p per share, with a disciplined policy and coverage ratio of 1.20 over five years.

• Annualized total return since listing is 11.8%.

Growth Opportunities and Market Positioning

• Sees renewed interest in international and emerging market strategies in 2024, with wide closed-end fund discounts providing attractive entry points.

• Technology enables scalable growth with low incremental costs.

• Listed private equity strategy gaining traction and becoming a core focus.

• Marketing targets high-net-worth individuals, family offices, RIAs, and third-party consultants.

• Capacity for new assets is estimated at $6 billion across various strategies.