City Of London Investment Share Discussion Threads

[melton john] 09/4/2024 23:19

If you check the trades you'll see some trades are AT. This means automatic trades entered on the order book by such as brokers and institutions and cutting out the market makers and trading with each other. This is different to the majority of AIM shares which, to guarantee liquidity are quoted for a certain size at an advertised price and prices will move within the advertised spread according to supply and demand and competing market makers bidding against each other. Compare with the car trade, retail investing is like buying and selling with a garage, institutions and brokers are like going to car auctions or off market trades like private trades.

[robsy2] 09/4/2024 22:45

Clig is not an easy share to own. I have been here for years and it has provided dividend income only which has been enough to date , almost.

[2wild] 09/4/2024 19:58

Had limit order at 314p and pay just over 306p today. Still amazes me how spread can gho from around 25p to 2p minutes full stop

[alter ego] 09/4/2024 12:35

what puts me off is the spread. Why so big?

[brucie5] 09/4/2024 12:29

CLIG is part of the Roland Head portfolio, which is not always a guarantee! But Roland does supply useful commentary on results.
I believe dividend cover is touch and go and dependent on whether penciled in growth in earnings can be achieved. He writes:

"Updated forecasts from house broker Zeus available on Research Tree suggest earnings per share of 33.4p per share in FY24, rising to 34.8p per share in FY25. Given the group's cash position, I would guess that hitting these targets would protect the dividend from a cut."

His conclusion is that it represents good value, and he would consider topping up.

Personally, I think that rising investment activity must be something of a rising tide as we see with LIO. The chart on CLIG suggests a large extended bottom - and it's not far off from where it fell in 2020. I imagine that the bod will do what they can to continue maintaining the div even if it eats somewhat into their fairly strong reserves.

[my retirement fund] 08/4/2024 10:04

Nit looked here for a while. Is the dividend now covered ?

[skinny] 28/3/2024 14:18

No dividend payment as yet with HL.

[brucie5] 23/3/2024 13:13

Well obviously I could wrong but it seems to me like this yet another annuity type opportunity, stuck at the bottom of the range. With dividend sustained at >10%. Fact that their EBT is willing to be sat at >2% of the register is surely reassuring?

[masurenguy] 23/3/2024 09:19

The EBT has acquired 50K shares over the past 3 days.

[luderitz] 14/3/2024 18:05

What a dive in share price for City of London since the last time I looked 😕

Thankfully I’m not holding.

[masurenguy] 14/3/2024 16:19

INTERIM DIVIDEND

The dividend of 11p per share (equivalent to 14.1 cents per share) will be paid on 28 March 2024.

[montyhedge] 23/2/2024 08:47

I thought decent figures in a tough market. Finals could we get a special?

[skinny] 23/2/2024 07:18

Yes - quite an enlightening Chairman's Statement.

[deanowls] 23/2/2024 07:14

It seems me Karpus is getting his points across on cash management.

Very strange that they hadn’t had a strategy meeting in three years.

[skinny] 23/2/2024 07:00

HALF YEAR SUMMARY



- Funds under Management (FuM) of $9.6 billion at 31st December 2023. This compares with $9.4 billion at the beginning of this financial year on 1st July 2023 and $9.2 billion at 31st December 2022

- FuM at 31st January 2024 of $9.5 billion

- Net fee income representing the Group's management fees on FuM was $32.6 million (31st December 2022: $31.9 million)

- Underlying profit before tax* was $13.3 million (31st December 2022: $13.6 million). Profit before tax was $11.1 million (31st December 2022: $11.0 million)

- Maintained interim dividend of 11p per share (31st December 2022: 11p) payable on 28th March 2024 to shareholders on the register on 1st March 2024

[covid 19 deal] 22/2/2024 21:30

Whose cash ...who will enjoy investors cash ..time will tell in these ponzy schemes

[montyhedge] 20/2/2024 10:16

These must be a takeover target, plenty of cash as well.

[skinny] 14/2/2024 17:15

Certainly a strong possibility.

Half Year results on the 23rd.

[pvb] 14/2/2024 16:56

On the turn?

[masurenguy] 31/1/2024 12:49

SIX MONTHS TO 31 DECEMBER 2023: TRADING UPDATE AND DIVIDEND DECLARATION

City of London (CLIG) announces that on a consolidated basis, as at 31 Dec 2023, FuM were US$9.6bn. This compares with US$9.4bn at the Group's year end on 30 June 2023. A breakdown by strategy:

FuM ($m)
Dec-23: Jun-23
EM 3,578: 3,580
KIM 3,618: 3,520
INTL 2,004: 1,983
OV 278: 244
Other* 98: 97
Total 9,576: 9,424: +1.6%

IM Performance

Relative investment performance of the Group's strategies was mainly positive over the period, with OV and Fixed Income strategies outperforming, International Equity neutral and EM slightly negative. Significant CEF discount widening through late 2023 was partly reversed in Q4 which helped relative performance into year-end while NAV performance was positive. Over the six-month period, there were net outflows of circa US$294m across the Group's strategies, led by EM redemptions at CLIM and required minimum distributions for KIM clients at year end. Marketing and sales activity has picked up significantly in January as clients and prospects review their investment allocations. We are focused on new mandates in a number of the Group's asset classes with very good long-term performance as CEF discounts are at compelling levels and there is ample capacity.

Operations

The Group's income currently accrues at a weighted average rate of approximately 70 basis points, net of third party commissions. "Fixed" costs are c. US$2.3m per month, and accordingly the current run-rate for operating profit before profit-share is approximately US$3.2m per month based upon current FuM. The Group has proactively undertaken cost reductions as part of normal operations reflecting the current market environment. Based on actions initiated to date, savings of c. US$2.5m of costs per annum will be fully realised in the next financial year.

The Group estimates the unaudited profit before amortisation and taxation for the six months ended 31 December 2023 to be approximately US$13.9m (six months ended 31 December 2022: US$13.8m, restated in USD based on average exchange rate). Inclusive of our regulatory and statutory capital requirements, cash and cash equivalents stood at US$28.8m at the end of the calendar year (US$28.6m as at 30 June 2023, restated in USD based on closing exchange rate), in addition to the seed investments of US$2.4m. Our cash reserves will allow us to continue managing the business conservatively through volatile markets while following our dividend policy for our shareholders. The Company is currently in a close period which will end with the publication of results for the six months ended 31 December 2023 on 23 February 2024.

Dividend

The Board declares an interim dividend of 11p per share, which will be paid on 28 March 2024 to shareholders registered at the close of business on 1 March 2024 (2022: 11p).

The Board confirms the following interim dividend timetable:

-- ex-dividend date: 29 February 2024
-- dividend record date: 1 March 2024
-- DRIP election date/ deadline 8 March 2024
-- announcement of USD dividend 14 March 2024
-- dividend payment date: 28 March 2024

[mister md] 29/1/2024 14:29

Only 50m shares in issue, which probably means it's easy to miss the boat if on the sidelines here as sentiment improves and the shareprice recovery picks up speed. (i.e. a reversal of what happened on the way down!).

[robsy2] 29/1/2024 07:26

Nice post! It has perked up a bit of late.There are so many UK fund management groups that look good value that sometimes I wonder why I stay here year in year out . The divis is the answer but one can get those elsewhere as well . Takeover ? No idea. I am thinking out loud here and wondering if there might be large divis and stronger takeover possibiities elsewhere in the UK fund manager space?

[masurenguy] 29/1/2024 07:11

Investor sentiment improves as stock rises 15%

After last week's 15% share price gain to £3.69, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 16x in the Capital Markets industry in the UK. Total returns to shareholders of 1.2% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at £4.71 per share.

[brucie5] 22/1/2024 10:19

Yes indeed, class act for dividend seekers. I have only added on the way down, though I am still... Down...