City of London Investment Group (AIM:CLIG) has reported stagnant profits over the first half of the year, though funds under management increased marginally.
Pre-tax profit climbed marginally from US$11.0 million (£8.7 million) to US$11.1 million over the six months to December, while funds under management increased by US$0.2 billion to US$9.6 billion.
However, on an underlying basis, pre-tax profit slipped from US$13.6 million to US$13.3 million due to adjustment of higher gains on investments.
Net fee income climbed from US$31.9 million to US$32.6 million.
“Relative valuations are much lower in the markets where the group has the majority of its assets under management,” chair Rian Dartnell commented.
This presents opportunities, he added, suggesting uncertainty from high inflation and interest recently was covering up “value below”.
“Discounts in our closed-ended fund portfolios are at compelling levels,” he said, with emerging and international markets having lagged the US recently.
City of London maintained a flat dividend of 11p per share.
Shares climbed 4.4% to 358p.