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Emerging Market Closed-End Fund (CEF) Strategy

Overview

The Emerging Market Closed-End Fund (CEF) Strategy seeks to provide long-term capital growth via stock selection and active country allocation. We believe that closed-end funds offer an efficient way to invest in emerging markets. Our "alpha" is generated by capitalizing on discount changes and pricing anomalies that arise in closed-end funds. We specialize in identifying and capitalizing on discount movements and pricing anomalies to provide above average, long-term outperformance versus the appropriate benchmark while maintaining a lower level of volatility than the benchmark.

Global EM Composite Performance Ending 31-Mar-19*

Returns are shown net of fees. Past performance is no guarantee of future results. Periods over one year are annualized.

*Composite Description: The Global Emerging Markets Composite is an international equity composite focused on emerging countries, managed by City of London Investment Management. The strategy strives to outperform the S&P Emerging Frontier Super Composite Net Total Return Broad Market Index (S&P Super BMI) with controlled risk. It utilizes fundamental investment principles and quantitative approaches to provide broad emerging market equity exposure. It uses both top-down and bottom-up valuation methodologies to value asset classes, countries and closed-end funds to determine under or over valued opportunities. The strategy has a strong value bias relative to other emerging market strategies. The composite is managed to the S&P Emerging Frontier Super Composite Net Total Return Broad Market Index. The benchmark was changed from the S&P Emerging BMI Plus on January 1, 2009 to better reflect the investment strategy of the Composite. The S&P Emerging BMI Plus was the successor index to the S&P/IFC Global Composite Index, the benchmark for the Composite prior to September 1, 2008, which has been discontinued. Benchmark changes have not been applied retroactively and therefore historical benchmark performance is a blend of the BMI and IFC indices. As of June 2013, City of London switched to the net total return series of the S&P Emerging Frontier Super Composite BMI (from the gross total return series). Net total return indices reinvest dividends after the deduction of withholding taxes and provide a better comparison with the performance of the Funds in the Composite.

**Index Description: The S&P Emerging Frontier Super Composite BMI encompasses the S&P Emerging BMI Plus and the S&P Frontier BMI. The S&P Emerging BMI Plus is a sub-set of the S&P Global BMI Index, which was created to measure global stock market performance and contains publicly listed equities with float-adjusted market values of $100 million or more and a minimum value traded of $50 million in the last 12 months. The S&P Frontier BMI contains publicly listed equities representing in aggregate at least 80% of the market capitalization available in each market; there is no minimum traded requirement for this index. The S&P Emerging BMI Plus and the S&P Frontier BMI include 24 and 33 markets, respectively, for a total of 57 markets in the S&P Emerging Frontier Super Composite BMI as at 31 December 2018.

Source: City of London Investment Management

Definition of the Firm

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, registered as an Investment Advisor with the United States Securities and Exchange Commission (SEC) and regulated by the Dubai Financial Services Authority (DFSA).

CLIM claims compliance with the Global Investment Performance Standards (GIPS®)

To receive a complete list and description of CLIM composites and/or a presentation that adheres to the GIPS standards contact us.

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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.

© 2019 City of London Investment Group PLC.
All rights reserved.

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.

© 2019 City of London Investment Group PLC. All rights reserved.