City of London Investment Group reports fall in FuM

17th Jun 2013 10:12

City of London Investment Group's shares dropped Monday after the company reported a fall in its funds under management (FuM).In a trading update for the financial year to May 31st, the group said FuM declined 17% to $3.7bn at the end of the period.The emerging markets asset management business expects pre-tax profits to decrease to £8.9m from the prior year's £11.5m.Basic and fully diluted earnings per share are estimated at 24.9p and 24.6p respectively, compared to 33.8p and 32.8p in 2012. The figures partly reflect a £0.7m compromise settlement with two former executives.The group is, nevertheless, recommending a final dividend of 16p per share in line with the previous year due to a strong cash position and positive outlook. "As reported in our half year results, released January 21st, we continue to focus on reducing costs and this has been achieved, resulting in an annualised saving of £1.0m," the firm said.RD