LONDON (ShareCast) - Emerging markets asset management group City of London Investment Group saw pre-tax profit virtually halve in what it termed an exceptionally difficult year.
Funds under management at the end of May 2009 had fallen
to $3.5bn from $4.71bn, a decline of 26% which, the company observed, compares favourably with the 36% slide in the MSCI Emerging Markets Index over the same period.
With funds under management ‘at significantly lower levels through the second and third quarters’ the group’s fee income tumbled to £20.25m from £24.88m a year earlier.
Turnover plus investment income dipped to £20.4m from £25.7m, while pre-tax profit fell to £5.4m to £10.7m.
Ordinarily the company recommends dividend payments that are covered 1.5 times by full year earnings per share, but has relaxed that rule this year to recommend a full-year dividend that is covered just 1.06 times, in recognition of exceptional market conditions and with regard to the company’s strong cash position and its improving outlook.
A final dividend of 10p has been proposed, taking full-year dividend payments up to 15p, down from 19.5p last year.
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