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City of London Investment Group

July 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • CLIG
  • Price:
  • 434p
Ahead of results on 5 September, CLIG has provided a trading update for the year to 31 May. Funds under management  at the year end were up 33% year-on-year from US$4.4 billion to US$5.82 billion helped by a strong increase in emerging market indices during the year as well as new money coming into its funds. The company expects pretax profits will be ahead by 27% to £13.2m and earnings per share will be up 23% to 35.1p. The company also continues to pay most of its income in dividends, which will rise from 22p to 24p.CLIG said that it has recently won a number of new mandates in natural resources and also a “significant contract†in its developed market closed end funds. Offsetting this, one client has moved away US$150m ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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