City Of London Investment Share Discussion Threads

[aleman] 28/6/2016 00:54

I have several income trusts that have seen NAV jump on Friday as the £ fell (and so their NAVs might have risen again today, pushing them towards a 10% rise in NAV two days). Shares have not really responded but they haven't fallen like everything else. Interestingly, they are obliged to pay out income as dividends and that will jump too. The question is, will the uncertain affects on the UK, European and global economy counter that? Will they see the benefits of sterling translation eaten up as dividends get cut by 10% due to economic problems in China and the Far East, N+S America, Europe - or not? I don't know - but it gives a bit of relief to see NAVs jump and wonder if dividends might actually increase.

[vfast] 27/6/2016 18:37

I'am I right in thinking the weak pound against the dollar helps FUM or is there more to it than that?

The rest of my investments have falling off a cliff edge!

[mister md] 24/6/2016 19:52

Glad to be holding this one in my portfolio. ALAI is also recovering nicely

[garycook] 24/6/2016 03:26

It shows Barry Olliff,s commitment and confidence in CLIG. Basicially stated that CLIG will reach at least 400p and 450p, by the year 2020. Hold take the near 8%,and get paid for the future growth.

[my retirement fund] 23/6/2016 23:47

Given the yeild on offet its certainly a hell of a lot better than leaving such a large sum of cash in a banks savings account.

[asmodeus] 23/6/2016 23:15

A small top-up? It looks like £428,208 to me and my calculator !

[speedsgh] 23/6/2016 21:22

Doubt it. Just a small top up at what he presumably views an attractive level. Must've found a few notes stuffed down the back of the sofa...

from Final Results (Sept 2015):
"Continuing in the vein of transparency, I would like to restate my intention regarding potential future sales of shares in the Company. I founded CLIG as an asset management business in 1991 and from the outset, I have always sought to align my interests with those of the Group's shareholders, both before and subsequent to the public listing in 2006.

The consequence of this is that, as the largest shareholder and the Chief Executive of CLIG, close to all of my investible wealth remains in CLIG shares and I believe it is appropriate and prudent, for both the Company and me personally, that I gradually reduce my holding prior to my retirement in 2020.

Accordingly, I propose:

• Selling 500,000 at £4.00 and 500,000 at £4.50. These intentions are the same as were communicated to shareholders, and specifically subsequent to my previous sale of 500,000 shares at £3.50 earlier this year."

[my retirement fund] 23/6/2016 21:16

Looks like he's changed his mind.

[speedsgh] 23/6/2016 21:10

Yes, especially as he is in the process of selling down his shareholding in an open and orderly fashion. I will take today's purchase as a positive.

[my retirement fund] 23/6/2016 18:48

A very interestingly timed purchase I think

[masurenguy] 23/6/2016 18:32

A vote of confidence !

[vfast] 23/6/2016 18:30

RNS Number : 1421C
City of London Investment Group PLC 23 June 2016

23 June 2016

Notification of Transactions of Persons Discharging Managerial Responsibilities

The Company would like to advise that Barry Olliff, Chief Executive Officer, today purchased 145,186 ordinary shares of 1p each ("Ordinary shares"), at a price of 295p per share.

Mr Olliff's resultant shareholding in the Company following the transaction is 2,775,186 Ordinary Shares, constituting 10.3% of the Company's issued share capital.

[tmfmayn] 06/5/2016 15:45

Updated FUM for April:
hxxp://citlon.co.uk/shareholders/announcements.php

Looks to be about $4.0bn and up about $0.1bn since the end of March.

[jaws6] 18/4/2016 12:08

12 normal new auction at that time

[aleman] 18/4/2016 12:02

Backwardation. Bid 290. Offer 286.25. Something afoot?

Edit - Offer back to 310.0p now but a small UT trade went though at 290/286.25. Maybe one of the MMs has a fat finger.

[robsy2] 14/4/2016 17:09

Thanks Masureguy, much appreciated.
Good effort
R2

[vfast] 14/4/2016 15:40

Thanks for the information Masurenguy.

In the medium term I'm more than happy with the 24p dividend.

[masurenguy] 14/4/2016 13:03

Latest report on CLIG from Hardman, which can be accessed through the link below. They project a 25% increase in FUM over the next 3 years and the maintenance of the 24p dividend over that period. "City of London has continued to show robust performance in challenging market conditions. The valuation remains reasonable. Unless the market surges suddenly the dividend will probably be uncovered in 2016 but with over £8m of cash the company can easily cover the gap that current market levels imply"

The report goes onto to say that although the dividend looks like being uncovered in the current financial year "it would be covered on a run-rate basis in the 4th quarter"

[aleman] 13/4/2016 14:36

Brasilian stockmarket up another 3% taking it back to the highest level for 10 months.

[robsy2] 12/4/2016 10:00

Thanks fellas
So my reading is taht we are sort of OK and nicely placed if AUM increases from here.

[cockerhoop] 12/4/2016 08:39

Robsy2, Masurenguy

CLIG use a tax rate of 27% in their key assumptions.

[masurenguy] 12/4/2016 07:50

Good summary Robsy - the only thing that you missed was tax, circa 25%, which would result in post tax profits of around £6.3m and therefore an eps of circa 23p. As you have stated above, based on this level of performance the full year dividend of 24p should therefore be quite safe.

RNS Number : 8571U
City of London Investment Group PLC
12 April 2016

INTERIM MANAGEMENT STATEMENT
QUARTERLY FUNDS UNDER MANAGEMENT ("FUM") UPDATE

City of London (LSE: CLIG), a leading emerging markets asset management group, provides a third quarter trading update for the period 1 January 2016 to 31 March 2016.

Funds under Management

As at 31 March 2016 FuM were US$3.9bn (£2.7bn), up approximately 3% from US$3.8bn (£2.6bn) at 31 December 2015. The MSCI Emerging Markets TR Index (NDUEEGF) rose c6% over the same period. Over the past three months inflows have marginally exceeded outflows. As referenced in the recent Interim Statement, the Group maintains a robust pipeline of potential business. This pipeline includes all three business lines. Investment Performance for the quarter has been disappointing with approximate underperformance of 3%. This has been due to discount widening and also greater exposure to small cap via the Closed End Funds in which the Group invests. Investment performance remains in the 1st or 2nd quartile for all annualised periods.

Operations

The Group's income accrues at a weighted average rate of approximately 85 basis points, net of commissions and custody charges. "Fixed" costs are c£0.9m per month, and accordingly the current run-rate for operating profit, before profit-share at 30%, is approximately £1.0m per month based upon current FuM and a US$/GBP exchange rate of US$1.44 to £1.

Dividends

The interim dividend of 8 pence per share was paid on 11 March 2016. The Board will announce the final dividend on Monday 18 July 2016.

[robsy2] 12/4/2016 07:28

The trading update indicates that the dividend is safe and just about covered by earnings so that's good news. Bit of a mixed picture on AUM and performance but as they say themselves they are always 1 or 2 quartile , which is excellent. My feeling is that EM are slowly moving back into favour again and these guys know what they are doing . I love the clear language they use.my understanding is that they turnover 22.95m GBP , have running costs of 10.8m, leaving operating profit at 12.05m , take off the 30% profit share of 3.615m and you get a net 8.4mGBP a year , which is pretty much 25-26p EPS , divi costs 24p so we are all ok?
If I have missed something please correct me.
R2

[aleman] 11/4/2016 08:07

The USA looks more of a problem. Lots of bad trade and corporate numbers and job losses last week that caused the Atlanta Fed to revise Q1 growth forecast down to a mere 0.1% annualised. China has actually been producing some better numbers recently. The bad US news didn't get much coverage due to Mossack Fonseca. China does not appear to be slowing where the US is skirting with recession. The media seeme to be exhibitting US bias again, as it did in early 2008 when China was also demonised in an election year full of economic problems for the US.