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Emerging Market Closed-End Fund (CEF) Strategy

Overview

The Emerging Market Closed-End Fund (CEF) Strategy seeks to provide long-term capital growth via stock selection and active country allocation. We believe that closed-end funds offer an efficient way to invest in emerging markets. Our "alpha" is generated by capitalizing on discount changes and pricing anomalies that arise in closed-end funds. We specialize in identifying and capitalizing on discount movements and pricing anomalies to provide above average, long-term outperformance versus the appropriate benchmark while maintaining a lower level of volatility than the benchmark.

Global EM Composite Performance Ending 30-Sep-20*

Returns are shown net of fees. Past performance is no guarantee of future results. Periods over one year are annualized.

*Composite Description: The Global Emerging Markets Composite is an international equity composite focused on emerging countries, managed by City of London Investment Management. The strategy strives to outperform the S&P Emerging Frontier Super Composite Net Total Return Broad Market Index (S&P Super BMI) with controlled risk. It utilizes fundamental investment principles and quantitative approaches to provide broad emerging market equity exposure. It uses both top-down and bottom-up valuation methodologies to value asset classes, countries and closed-end funds to determine under or over valued opportunities. The strategy has a strong value bias relative to other emerging market strategies. The composite is managed to the S&P Emerging Frontier Super Composite Net Total Return Broad Market Index. The benchmark was changed from the S&P Emerging BMI Plus on January 1, 2009 to better reflect the investment strategy of the Composite. The S&P Emerging BMI Plus was the successor index to the S&P/IFC Global Composite Index, the benchmark for the Composite prior to September 1, 2008, which has been discontinued. Benchmark changes have not been applied retroactively and therefore historical benchmark performance is a blend of the BMI and IFC indices. As of June 2013, City of London switched to the net total return series of the S&P Emerging Frontier Super Composite BMI (from the gross total return series). Net total return indices reinvest dividends after the deduction of withholding taxes and provide a better comparison with the performance of the Funds in the Composite.

**Index Description: The Benchmark Index encompasses both the S&P Emerging Plus BMI and the S&P Frontier BMI. The S&P Emerging Plus BMI is a sub-set of the S&P Global BMI, containing over 3800 stocks domiciled in emerging markets plus South Korea, with float-adjusted market values of USD 100 million or more. The S&P Frontier BMI contains over 500 stocks from small and illiquid markets that have not yet reached emerging market status. The S&P Emerging Plus BMI and the S&P Frontier BMI include 26 and 31 markets, respectively, for a total of 57 markets represented in the Benchmark Index as at 31 December 2019.

Source: City of London Investment Management

Definition of the Firm

City of London Investment Management Company Limited is authorised and regulated for the conduct of investment business within the UK by the Financial Conduct Authority, registered as an Investment Advisor with the United States Securities and Exchange Commission (SEC) and regulated by the Dubai Financial Services Authority (DFSA).

CLIM claims compliance with the Global Investment Performance Standards (GIPS®)

To receive a complete list and description of CLIM composites and/or a presentation that adheres to the GIPS standards contact us.

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City of London Investment Management Company Limited (“CLIM”) is authorised and regulated for the conduct of investment business within the UK by the Financial Conduct Authority (FCA), registered as an Investment Advisor with the United States Securities and Exchange Commission (SEC) and regulated by the Dubai Financial Services Authority (DFSA).
Registered in England and Wales No. 2851236. Registered Office: 77 Gracechurch Street, London, EC3V 0AS, England.

© 2020 City of London Investment Management Company Limited.
All rights reserved.

City of London Investment Management Company Limited (“CLIM”) is authorised and regulated for the conduct of investment business within the UK by the Financial Conduct Authority (FCA), registered as an Investment Advisor with the United States Securities and Exchange Commission (SEC) and regulated by the Dubai Financial Services Authority (DFSA). Registered in England and Wales No. 2851236. Registered Office: 77 Gracechurch Street, London, EC3V 0AS, England.

© 2020 City of London Investment Management Company Limited. All rights reserved.