City of London Investment Group (LSE:CLIG) reported a 4% increase in funds under management to approximately $11.2 billion for the six months ended 31 December 2025. Assets continued to rise into the new year, reaching around $11.6 billion by mid-January 2026, supported by favourable market conditions and solid underlying investment performance.
Within the group, CLIM’s emerging markets and listed private equity strategies delivered strong outperformance versus their benchmarks. Performance was aided by effective country allocation, narrowing discounts across closed-end funds and value uplift from corporate actions. International equity and opportunistic value strategies recorded more modest underperformance over the period. At KIM, balanced and fixed income strategies broadly matched or slightly exceeded benchmarks, underpinned by robust long-term performance in fixed income portfolios.
Despite positive market returns, the group experienced net outflows of $853 million during the period. Management said these were largely driven by client portfolio rebalancing, shifts toward liability-matching and passive investment strategies, and funding-related requirements. These outflows were partly offset by $247 million of gross inflows across emerging markets, international equity and fixed income strategies.
Overall, the majority of strategies are now reporting higher asset levels than at the start of the period, highlighting the resilience of client portfolios and continued interest in the group’s offerings, even amid mixed flows and ongoing volatility in closed-end fund discounts.
From an investment perspective, City of London Investment Group benefits from strong financial performance and supportive corporate developments. The shares also offer a reasonable valuation and an attractive dividend yield. However, technical indicators point to a more cautious near-term outlook, with bearish trends and subdued momentum suggesting potential volatility.
More about City of London Investment
City of London Investment Group is a specialist asset management firm listed in London, providing institutional and retail investment products through its CLIM and KIM platforms. The group manages strategies across emerging markets, international equities, listed private equity, balanced mandates and taxable and tax-sensitive fixed income, with a particular focus on closed-end fund structures and active management in global markets.
Leave a Reply