Steady as She Goes in Choppy Waters
In a quarter where many asset managers resembled deckhands scrambling during a squall, City of London Investment Group has managed to keep its ship remarkably steady. The latest RNS shows FuM holding firm at $9.9 billion as of March 2025 – no mean feat given the market’s obsession with US tariff policy twists and the resulting risk asset jitters.
The Numbers Game
FuM Breakdown: Winners and Weathervanes
- Emerging Markets: Took a $170m outflow hit (we’ll get to why shortly) but salvaged pride with $105m market performance gains
- Listed Private Equity: The new darling, attracting $20m inflows while being rehomed from Emerging Markets
- International Equity: Quietly impressive $87m market gains despite benchmark underperformance
- Opportunistic Value: Showing why patience pays with a neat 3.5% organic growth
Performance Punch-Up
Three-month rolling returns tell a story of selective excellence:
- 📈 Outperformers: EM, Opportunistic Value, US Equity, Tax-Sensitive Fixed Income
- 📉 Benchmarked Bruises: International Equity, Taxable Fixed Income, Listed PE
The Flow Frontier
That $170m EM outflow sticks out like a sore thumb – classic risk-off behaviour as investors eye Biden’s latest tariff salvo. But here’s the kicker: CLIG’s response shows strategic nous. They’re doubling down on marketing efforts where closed-end fund discounts sit at tempting levels, particularly outside US markets. The $20m Listed PE inflow suggests this pivot’s already bearing early fruit.
Dividend Delights
While not earth-shattering, the maintained 11p interim dividend (paid 3 April) reinforces CLIG’s reputation as a reliable income generator. In a sector where yield often plays second fiddle to growth narratives, this remains a key differentiator for income-focused investors.
The Takeaway
CLIG’s real achievement here isn’t just maintaining FuM – it’s demonstrating portfolio resilience through smart strategy realignment. The Listed PE shift and international distribution push suggest management isn’t just reacting to market winds, but anticipating them. As closed-end fund discounts remain wide, could this be CLIG’s moment to play the contrarian card?
Key question for investors: Does holding steady in stormy markets signal cautious strength… or missed opportunities to capitalise on volatility? The next quarter’s flows might just tell that tale.
