Pre-Close Trading Update

City of London Investment Group PLC (LSE: CLIG) is an active, alpha-driven global asset management group with more than three decades of experience. The firm manages assets on behalf of sophisticated institutional and wealth management clients worldwide across a diverse range of asset classes and strategies. CLIG provides a pre-close trading update for its financial year ended 30 June 2026 ("FY26"). The numbers that follow are unaudited.

Flows & Performance

Total FuM grew 13.9% year-on-year to $12.3 billion, a strong result that reflects the resilience of our platform and the value of our differentiated investment approaches. While the year saw net outflows of $1.3 billion, levels improved in the second half of FY26 to net outflows of $483 million as compared to net outflows of $853 million in the first half of FY26. The increase in FuM was underpinned by favourable market effects and robust relative performance, both of which reflect CLIG's long-term positioning and the enduring confidence clients place in our strategies.

Gross inflows remained healthy across the platform, totalling $342 million within CLIM, led by International Equity, and $224 million within KIM, with notable strength in Growth Balanced and Taxable Fixed Income. These inflows reflect selective but sustained demand, validating the breadth and diversity of our product suite and the continued relevance of our capabilities across market cycles.

Net outflows of $1.3 billion were driven primarily by client rebalancing activity, pension de-risking, and liquidity needs - dynamics largely tied to broader industry trends rather than strategy-specific concerns. Outflows at CLIM were concentrated in Emerging Markets and International Equity, while KIM outflows were most pronounced in Growth Balanced.

Market and investment performance contributed meaningfully to FuM growth over FY26, adding $2.8 billion in aggregate. While the second half of FY26 brought heightened volatility and a sharp March drawdown that offset some of the earlier gains, the full-year contribution underscores the strength of our investment teams' performance and the durability of our approach through changing conditions.

Looking ahead, the Group is in a strong investment and financial position. Investment outcomes at Karpus and CLIM reflect the highly active approach we take to portfolio management, underpinned by deep experience and manager insight. Recent market volatility has created fresh opportunities for our teams to add value, while our robust cash position provides both stability and strategic flexibility for the future.

Over the past six months we have reaffirmed our investment-led culture, strengthened collaboration across our portfolio teams, and encouraged greater empowerment and accountability throughout the Group. We have actively engaged with stakeholders, including clients, to better understand areas where we can improve, grow, and bring our insights to help solve portfolio challenges.

Continued marketing and sales initiatives are reinforcing engagement across our core equity and fixed income strategies, positioning the Group to convert renewed interest into sustainable growth as market conditions stabilise. We look ahead with confidence as we explore new ways to deploy our investment expertise and global perspective in the service of client portfolios.

FuM ($ million)

* Includes Frontier and alternatives

Funds under Management figures are rounded

Dividend

The Board expects the final dividend for the year ended 30 June 2026 to be in line with the previous year.

Following the completion of the year-end audit, the Board will announce the final dividend and results alongside publication of its Accounts for the year ended 30 June 2026 on 15 September 2026.

The Group's Annual General Meeting will be held on 26 October 2026 and the Group expects the dividend payment date to be in November 2026 similar to last year's timing.

Past performance is no guarantee of future results.