InvestmentsSep 17 2018

City of London Group plans emerging market property fund

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City of London Group plans emerging market property fund

Specialist emerging market investment house City of London Group plans to launch a real estate investment trust (REIT) to diversify away from equities.

As part of its results statement covering the year to the end of June 2018, the company said it recruited two people in July to help launch an investment trust focused on emerging market property.

Company chief executive and founder Barry Olliff said he believed there were considerable returns to be had from the asset class.

He said diversification was an important part of the strategy of the company, as he aims to keep each product operated by the company a "relatively small" part of the overall business.

Mr Olliff is to retire as City of London Group chief executive in early 20149, a move he had indicated would happen when he appointed Tom Griffith as deputy chief executive in early 2018.

The company reported profits of £12.8m before tax, an increase on the £11.8m reported for the year before. Assets under management were £3.9bn, compared with £3.6bn for the previous year.

Mr Olliff said the company had a lot of cash on its balance sheet "which will need to find a good home".

david.thorpe@ft.com