City of London Investment Group PLC is an established asset management group which has built its reputation, with an institutional client focus, by specialising in emerging market closed-end fund investment. In recent years the Group has by way of diversification successfully added a developed market strategy to its product range. City of London operates its business from offices in London, the US, Singapore and Dubai.
A closed-end fund (or an investment trust or company) is one with a fixed number of shares outstanding, and one which does not redeem shares in the way an open-ended one (such as a mutual fund or unit trust) does. The price of a share in a publicly traded closedend fund is determined entirely by supply and demand, so shares can either trade below their net asset value ("at a discount") or above it ("at a premium"). It is this characteristic that we seek to exploit, buying those shares we consider cheap, generally at what we believe to be an unjustifiable discount, and selling those we consider expensive, those at an unwarranted small discount or at a premium.
Emerging Markets as a description of young high growth economies first appeared in 1981 when only six such markets (Hong Kong, Malaysia, Mexico, the Philippines, Singapore and Thailand) could be accessed by foreign investors. Today there are almost 60, including the 'frontier' markets that are at earlier stages of development, with the largest being the socalled BRIC's economies – those of Brazil, Russia, India and China. City of London realised early on that institutional investors were struggling to access these markets in a professionally managed, risk-diversified way and that a product focused on the closed-end funds run by specialist managers could hold great appeal.
The Tactical Income Closed-End Fund Strategy seeks to provide a high-level of after-tax total return for US taxable investors. Our multi-sector tactical asset allocation approach results in a cross-asset diversified income stream that is tax–advantaged. We believe that a customizable, multi-asset class approach provides the greatest flexibility to exploit closed-end fund opportunities. We specialize in identifying and capitalizing on discount movements and pricing anomalies to provide above average, long-term outperformance versus the appropriate index whilst seeking to manage exposure to realized short term capital gains.
The Global Tactical Asset Allocation Closed-End Fund Strategy seeks to provide long-term capital growth via a value-driven, “go-anywhere” approach. We believe that a customizable, global multi-asset class approach provides the greatest flexibility to exploit closed-end fund opportunities for non-taxable investors. We specialize in identifying and capitalizing on closed-end fund pricing anomalies across the world to provide above average, long-term outperformance versus an appropriate index, with differentiated alpha capture from CEF discounts.
City of London Investment Management Company Limited is authorised and regulated for the conduct of investment business within the UK by the Financial Conduct Authority (FCA), registered as an Investment Advisor with the United States Securities and Exchange Commission (SEC) and regulated by the Dubai Financial Services Authority (DFSA).
Registered in England and Wales No. 2851236. Registered Office: 77 Gracechurch Street, London, EC3V 0AS, England.
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