Global turmoil hits asset manager City of London

GLOBAL volatility meant assets run by City of London Investment Group fell by more than a fifth for the four months to the end of September.

City of London said funds under management fell to $4.5bn (£2.9bn) from $5.8bn (£3.5bn), a 22 per cent fall in dollar terms. The firm, which provides emerging market asset management products to institutional investors, has been diversifying into natural resources and developed market closed-end funds. Yesterday it said it had won four mandates for its natural resources product, worth $30m.

In an interim management statement it highlighted turbulence in the emerging markets: “While this clearly impacts revenues adversely, the volatility has provided significant opportunities with respect to investment performance.”