TO READ the press and, indeed, the comments of many analysts, economic Armageddon is upon us. An economist contact of mine is especially depressing. He thinks we are facing a deeper trough than many believe, with more banks getting into even deeper
trouble. He is particularly uneasy about Icelandic financial institutions and, indeed, some of our brethren across the Atlantic. He also thinks inflation is going to get worse.
His opinions are by no means unique. Certainly, it is now a question of just how deep a recession we are facing, not if we are heading that way.
In the circumstances, where there seem few hiding places, City of London Investment Group might be worth considering.
An emerging markets fund manager, it was formed in 1991 to specialise in "closed" investments funds, investment trusts rather than unit trusts. Its first emerging product, The Emerging Markets Country Trust, was launched in September 1991 and City now has a portfolio of such funds, catering for institutional and individual clients.
It does not manage hedge funds nor charge performance fees, and now has something in the region of $5 billion (£2.5bn) of assets under management.
As a result, management fees have risen from £4 million in 2004 to £18.3m last year and are forecast to double again by 2010. The shares offer a yield of 4 per cent and have been almost immune to the blood-letting over the past few months.
Quoted on AIM, the stock is hard to acquire but taking advantage of dull days could prove rewarding in the longer-term.
• The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.
The full article contains 316 words and appears in The Scotsman newspaper.
