City Of London Investment Share Discussion Threads

[montyhedge] 08/10/2020 11:51

dave
Superb article. Onwards and upwards.

[skinny] 08/10/2020 09:52

Thanks both for the updates.

[davebowler] 08/10/2020 09:30

Zeus-
1Q trading update
What’s new: City of London Investment Group (“CLIG”) has released an impressive trading update to 30 September 2020, which includes comment on City of London Investment Management (“CLIM”) 1Q post tax profits, client assets (FUM & AUM) at period end and CLIG’s acquisition of KMI that completed last Thursday.

§ 8% rise in CLIM’s FUM to US$5,935m (30/6/20: US$5,503m) which is a 4.5% rise in Sterling value of FUM from £4.4bn to £4.6bn;

§ Outperformance of all CLIM investment strategies, except Frontier (< 3% of FUM) where discounts widened;

§ Net outflows of US$83m were 1.5% of opening CLIM FUM: US$107m flowing out of Frontier and US$39m net inflows to Emerging Market strategies;

§ 17% rise in CLIM’s 1Q post-tax profit before exceptionals to £2.8m (2019: £2.4m) with £1.8m exceptional costs of KMI acquisition PAT are circa £1.0m;

§ Acquisition of KMI with AUM of US$3.6bn completed on 1 October 2020, with 98% of client assets transferred on acquisition;

§ Group manages US$ 9.5bn of client assets, as of 1 October 2020;

CLIG’s 20p final DPS, is subject to approval at AGM on 19 October.

Zeus view: CLIG’s 1Q results are consistent with our forecasts for 2021E and 2022E (see pages 2 to 5), which include the KMI acquisition from 1 October 2020. We draw attention to the following points:

§ Post KMI, only 44% of Group client assets are invested in emerging markets;

§ KMI AuM of US$3.6bn (£2.8bn using $1.29: £1 exchange rate) is ahead of our previous estimate of US$3.4bn (£2.7bn using a $1.25: £1 exchange rate);

§ Sterling has strengthened from US$1.25 = £1 to a high of US$1.33 and is now US$1.29.

In future we expect Client assets will be less sensitive to equity market movements.

In FY22 with a full year from KMI, we see CLIG delivering 47.1p adj EPS and the Group paying a 32p dividend. Our forecasts continue to show CLIG’s net cash of £20m in June 2021 and £30m in June 2022.

Valuation: On our FY21 forecasts, at 435p CLIG shares trade on only 9.6x current year EPS and offer investors a 6.9% dividend yield. With a full year contribution from KMI in FY22 the PER falls to 9.2x and dividend yield rises to 7.4%.

[masurenguy] 07/10/2020 07:54

FUM up by 7.3%. Dividend up by 10%.

As at 30th September 2020, FuM were US$5.9bn (£4.6bn). This compares with US$5.5bn (£4.4bn) at the Company's year-end on 30th June 2020.

IM Performance

Performance was ahead of the benchmark over the quarter in all strategies ex-Frontier. Specifically, in the Emerging Market (EM) strategy NAV performances were positive. In both the International (INTL) and Opportunistic Value (OV) strategies relative returns were driven by strong NAV performance and positive discount effects. The Frontier strategy was negatively impacted via sharply wider discounts. The EM strategy had net inflows of US$39 million, while the Frontier strategy had outflows of US$107 million over the period. Net flows were flat for the INTL and OV strategies.

Operations

The Group's income currently accrues at a weighted average rate of approximately 74 basis points of FuM. "Fixed" costs are c. £1.1mn per month, and accordingly the current run-rate for operating profit, before profit-share of 30% is approximately £1.7m per month based upon current FuM and a US$/£ exchange rate of US$1.29 to £1 as at 30th September 2020. The Group estimates that the post-tax profit before exceptional items of c. £1.8m in relation to the KMI merger for the first three months of the year will be approximately £2.8m (2019: £2.4m) and post-tax profit after charging the exceptional items as detailed above for the first three months of the year will be approximately £1.0m (2019: £2.4m).

Dividends

The final dividend of 20 pence per share, subject to approval at the AGM on 19th October 2020, will be paid on 30th October 2020, bringing the total dividend for the financial year 2019-20 to 30 pence (2018-19: 40.5 pence, including the special dividend of 13.5 pence paid in March 2019).

Update on Merger of CLIG with KMI

As previously announced, CLIG completed the merger with Karpus Management Inc ("KMI") on 1st October 2020 (the "Completion Date"). KMI's client approval process resulted in approximately 98% of client assets being retained. As at 30th September 2020, KMI had US$3.6bn of FuM. On a consolidated basis, as of 1st October 2020, the Group managed client assets of approximately US$9.5bn.

[skinny] 05/10/2020 16:30

I thought that's what I said :-)

"Unchanged" added to make it clearer.

[masurenguy] 05/10/2020 16:26

Barry Olliff has not sold any shares. His shareholding has just been diluted by the new shares issued to facilitate the Karpus merger.

[skinny] 05/10/2020 16:20

Post Merger :- .

Still 1,873,536 shares (Unchanged).

[skinny] 02/10/2020 09:36

No - but I've got a whole list of ones to avoid! :-)

[eggbaconandbubble] 02/10/2020 09:35

Well done! Can you tell us the next one? :-)

[skinny] 01/10/2020 14:33

I'm up 85% on my original buying price plus dividends - oh were they all like that!

[montyhedge] 01/10/2020 11:34

A stronger company now, onwards and upwards.

[masurenguy] 01/10/2020 08:05

Merger officially completed.

CITY OF LONDON INVESTMENT GROUP PLC
1 October 2020

Completion of all Share Merger of CLIG with Karpus Management Inc. ("KMI")

The board of CLIG is pleased to announce that the merger of CLIG with Karpus Management Inc (KMI) has been completed. Admission of the 24,118,388 New Shares issued in connection with the Merger occurred at 8.00 a.m. today (1 October 2020). The New Shares have been listed on the premium segment of the Official List and admitted to trading on the premium segment of the main market of the LSE. The issued share capital of the Company following Admission of the New Shares is 50,679,095 Shares. The Company does not hold any Shares in treasury. This figure may be used by Shareholders as the denominator for the calculations by which they will determine whether they are required to notify their voting rights interest, or a change to that interest, in the Company under the FCA's Disclosure Guidance and Transparency Rules.

[skinny] 29/9/2020 07:07

.

Proposed Share issue in respect of all Share Merger of CLIG with Karpus Management Inc. ("KMI")

As announced on 9 June 2020, the consideration due under the proposed merger (the " Merger " ) of CLIG with Karpus Management Inc ( " KMI " ), is to be satisfied through the issue of new shares in the capital of the Company ("New Shares"). As the aggregate assets under management of KMI's clients who have consented to the Merger is greater than US$3.0595 billion as at 28 September 2020, KMI Stockholders will receive, on the terms and subject to the conditions of the Merger Agreement, the maximum share consideration of 79.18 New Shares for every KMI Share, with any fractional entitlement to New Shares forfeited by the KMI Stockholders. Accordingly, after adjustment in respect of fractional entitlements, a total of 24,118,388 New Shares will be issued to KMI Stockholders.

Application has been made for the New Shares to be listed on the premium segment of the Official List and to be admitted to trading on the premium segment of the main market of the LSE, in each case upon Completion, which is expected to be on 1 October 2020.

Immediately following Admission of the New Shares, the Enlarged Share Capital will be 50,679,095 Shares

[masurenguy] 18/9/2020 14:22

The merger with Karpus is due to complete in 2 weeks time, on Ist October.

RNS Number: 4654Z
18th September 2020

Publication of Supplementary Prospectus

Further to the publication of the combined circular and prospectus on 12 June 2020 ("Prospectus") relating to the proposed merger (the "Merger") of CLIG with Karpus Management Inc ("KMI"), the Company announces that it has today published a supplementary prospectus ("Supplementary Prospectus") in relation to the Prospectus. The publication of the Supplementary Prospectus is a regulatory requirement under the Prospectus Regulation Rules, following the publication of the final results of the Company for the year to 30 June 2020 on 14 September 2020. The Supplementary Prospectus is supplemental to, and should be read in conjunction with, the Prospectus. The expected date of completion of the Merger remains 1 October 2020 and may be adjusted by the Company. Any changes will be notified to Shareholders through an RIS.

[skinny] 18/9/2020 08:49

Thanks for the link.

33p spread this morning 🙄

[cockerhoop] 18/9/2020 08:47

Hardman predict meaningful EPS growth in 2021 & 2022 with modest assumptions.

[masurenguy] 17/9/2020 15:30

Latest Hardman report on CLIG.

[montyhedge] 16/9/2020 14:55

Held this for years, probably been one of my best bottom draw investments.Growing dividends not many companies doing that in these markets.

[topvest] 15/9/2020 21:20

Great company. Happy to hold long-term and top-up when a decent opportunity arises. One of the best Annual Reports around for transparency and common-sense value add analysis.

[eggbaconandbubble] 15/9/2020 15:45

I think you will find that all those 'sells' at 407.9 are actually buys.

I got several quotes to buy at various times through the morning all at 407.9.

I finally bought at that price - strangely, as often is the case, my trade has yet to show up!

[skinny] 14/9/2020 13:57

Nice to see buys and sells over £4 again and on decent volume.

[montyhedge] 14/9/2020 08:59

20p dividend, nice.

[robsy2] 14/9/2020 08:52

Indeed. Very classy. Good people.
Solid results as well. This is a good dividend and growth stock.