City of London Investment Group share price up despite drop in profit and funds under management because of turbulence in emerging markets

 
Hayley Kirton
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"As shareholders will be aware this has been a difficult time for fund managers who invest in emerging markets." (Source: Getty)

Share price in City of London Investment Group rose today despite the company announcing a fall in profits at its half-year results.

The fund manager reported profit before tax of £3.6m for the six months ended December 2015, down from £4.3m for the same period the year before, while funds under management dropped to $3.8bn (£2.6bn), down from $4bn for the prior year.

However, share price for the company rose after the results were released, trading up 4.7 per cent at 300.5p at around 3pm.

Chairman David Cardale blamed turmoil in the global economy, particularly in emerging markets, for the downturn in the results.

In his review, chief executive Barry Olliff added: "As shareholders will be aware this has been a difficult time for fund managers who invest in emerging markets. It is only fund managers who are outperforming, providing clients with useful solutions and managing their businesses efficiently that will survive and prosper."

However, Cardale added that he felt positive about the company's future, remarking: "I am confident that we will continue to make the best of very uncertain markets and that we will again weather the storms just as we have in previous downturns."

Analysts at Canaccord Genuity said poor market conditions had caused results that were "considerably below [their] expectations".

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