City of London Investment Group PLC (LSE:CLIG) reported a decline in funds under management (FuM) to $11.5 billion for the quarter ended 30 September 2026, reflecting net client outflows and adverse market movements across its investment portfolios.
The asset management group recorded net outflows of $667 million during the three-month period, while market movements reduced assets by a further $127 million.
The company attributed much of the outflow activity to portfolio rebalancing by clients following investment performance, particularly within its emerging markets and international equity strategies.
Both of the group’s principal investment management businesses, City of London Investment Management (CLIM) and Karpus Investment Management (KIM), reported reductions in funds under management during the quarter.
Separately, the group has proposed increasing its total dividend for the 2026 financial year to 34 pence per share.
Client Withdrawals and Market Movements Reduce Assets
City of London Investment Group reported combined net client outflows of $667 million during the quarter, alongside a $127 million reduction attributable to market movements.
The company said client portfolio adjustments were a principal factor behind the withdrawals, with investors rebalancing allocations following previous investment performance.
The activity was particularly evident in emerging markets and international equity portfolios, which form part of the group’s investment management offering.
The combined impact of client withdrawals and market movements reduced total funds under management to $11.5 billion at 30 September 2026.
The group manages investments across equity, fixed income and balanced portfolio strategies for institutional and wealth management clients.
CLIM Funds Under Management Decline to $7.4 Billion
City of London Investment Management, the group’s investment management division, reported a reduction in funds under management from $8.1 billion to $7.4 billion during the quarter.
The decline reflected client withdrawals and market-related changes, with emerging markets and international equity strategies particularly affected by portfolio rebalancing.
CLIM provides investment management services across a range of equity strategies, including emerging markets and international portfolios.
The company said client allocation decisions following investment performance contributed to the reduction in assets.
The division continues to operate within the group’s broader investment management structure, which serves institutional investors and other professional clients.
Karpus Investment Management Assets Fall to $4.1 Billion
Karpus Investment Management, the group’s US-based investment management business, reported funds under management of $4.1 billion at the end of September, compared with $4.3 billion at the beginning of the quarter.
The reduction reflected changes in client allocations within balanced investment mandates, together with modestly negative market movements.
KIM provides investment management services that include balanced portfolios and tax-sensitive fixed income strategies.
The division’s quarterly asset movements contributed to the overall reduction in group funds under management.
Group Plans Additional Sales and Marketing Activity
City of London Investment Group said it is increasing sales, marketing and investment research-related communications to support awareness of its investment capabilities.
The initiatives are intended to increase recognition of the group’s fixed income and equity strategies among existing and prospective clients.
The company continues to offer investment products across emerging markets, international equities, balanced portfolios and fixed income.
Management also highlighted the group’s long-term investment performance record and the range of strategies available through CLIM and KIM.
The planned commercial activity forms part of its efforts to develop client relationships and attract additional investment allocations.
Proposed FY2026 Dividend Increased to 34 Pence Per Share
Despite the reduction in funds under management during the September quarter, City of London Investment Group has proposed a total dividend of 34 pence per share for the 2026 financial year.
The proposed distribution represents an increase in the group’s annual dividend, although the supplied update does not specify the previous year’s total payment.
The dividend proposal comes alongside the group’s quarterly funds under management update and its plans to expand marketing and client development activities.
City of London Investment Group ended September 2026 with $11.5 billion in funds under management across its two investment management businesses.
Future asset levels will depend on client subscriptions and withdrawals, investment portfolio valuations and market movements, while the group continues implementing its sales and marketing initiatives.
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