City of London profits tumble

CITY of London Investment Group, the emerging markets fund manager, has warned investors its pre-tax proffell by half in the year to end May to &pound;5.4m, as &ldquo;significant market declines&rdquo; took their toll.<br /><br />In an unaudited trading update it warned it is likely to report the fall in profits, from &pound;10.7m in the period to May 2008, after funds under management fell to $3.5bn (&pound;2.2bn) compared with $4.71bn a year earlier.<br /><br />But in the &ldquo;exceptionally difficult year&rdquo; this 26 per cent asset fall compares to a fall of 36 per cent in emerging equities, the group added.