Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

City of London profits fall almost 20%

City of London profits fall almost 20%

Profits at City of London Investment Group fell almost a fifth over the 13 months to the end of June, a period which left it exposed to the biggest period of volatility in several years and big currency moves.  

Factoring in a £2.9 million unanticipated tax charge profits after tax fell 17% from £6.3 million to £5.2 million. By 8.40 shares in the group had dropped 2.84% to 290p. 

‘With revenues mainly in US$ whilst a substantial proportion of our costs are in GBP, the strengthening of the currency over the period resulted in a headwind of some £500,000,’ it said in a statement.

Funds under management rose 5.4% in dollar terms over the period while falling 4.2% in sterling as the currency cross moved from $1.52 to $1.71.   

The company said it will nonetheless maintain its full-year dividend at 24p, with cover falling from 1.04 times to 0.83 times. It noted that it was reviewing its historic target of 1.5 times dividend cover, ‘and has in recent years applied it flexibly’.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Taxicab Tenner: AXA IM's Nicolas Trindade

Taxicab Tenner: AXA IM's Nicolas Trindade

After a summer break, it is the turn of AXA Investment Manager's Nicolas Trindade to give a £10 view of how fixed income is faring.

Play Wealth Manager Olympics: the Relay

Wealth Manager Olympics: the Relay

In the final round of the Wealth Manager Olympics, our intrepid athletes team up for the relay.

Play Wealth Manager Olympics: the Shot Put

Wealth Manager Olympics: the Shot Put

After busting a gut in the 100m sprint, our wealth manager Olympians displayed their brute strength in the shot-put.

Read More
Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter