City of London plans Main Market move

13th Sep 2010 16:52

Asset manager City of London Investment Group has reiterated its intention to switch from AIM to the Main Market. City of London first mentioned a possible move in September 2008. Management believes that a move to the Main Market will enhance the brand of the group. Shareholders have already voted in favour of the switch which should happen in October. Funds under management increased by one-quarter to $4.38bn at the end of May 2010 - the sterling increase was 39%. They had risen further to $4.86bn by the end of August 2010. The investment focus has been on natural resources and developed closed-end fund products. Pre-tax profit was 93% higher at £10.4m in the year to May 2010. There is £4.78m in the bank. The final dividend has been increased from 10p to 15p a share, taking the total for the year from 15p to 22p a share. City of London is taking its US marketing in-house. Chief executive Barry Oliff intends to sell 375,000 shares at 310p a share, 500,000 at 350p a share and 500,000 at 400p a share. The shares are trading at 302.5p each, up 13.5p on the day.