City Of London Investment Share Discussion Threads

[montyhedge] 05/1/2021 15:36

Lower dollar good for emerging markets.

[frazboy] 30/12/2020 13:48

Strong today. Emerging markets strong too which is supporting the rise. It appears to me that this should be at or perhaps a little higher than the pre Covid price.

[luderitz] 18/12/2020 09:02

Usually a sign of confidence eh?

[masurenguy] 17/12/2020 13:35

Chairman invests £86,000 to increase his shareholding by 17.5%

[riverman77] 15/12/2020 11:22

FUM up strongly from 9.5bn to 10.5bn in November. Worth noting that this is already in line with Hardman's estimated FUM for 2022 which they think will equate to 50.5p eps. In other words this is trading at 8x earnings if FUM merely stays at current level. This has very clearly lagged the market rally over the past few weeks.

[frazboy] 14/12/2020 19:21

Well, someone's spouse thought the shares were good value - £85k purchase. I think thats a good thing.

[frazboy] 10/12/2020 17:11

Livingstone, if they meet the dividend targets referred to in the Hardman reports I think the stock overhang from BO won't be an issue.

[frazboy] 10/12/2020 17:02

Interesting to see this a little weak. I thought it would be a good no-deal hedge.... what am I missing?

[livingstone20] 04/12/2020 18:20

I quite like the look of this opportunity but from the annual report there is a substantial overhang to get through before material upside given Oliff’s declared retirement planning will sell 500k at 450, 500k at 475 and 500k at 500? Thoughts?

[montyhedge] 02/12/2020 12:48

Looks like seller out the way. Onwards and upwards.

[masurenguy] 24/11/2020 16:29

APQ Global have sold their 1.67m stake (3.3%) over the past 3 weeks and are no longer shareholders in CLIG. Interesting to see that this disposal has had absolutely no negative impact on the shareprice, which has actually increased by 10% during this period.

The book value of APQ shares crashed by 66% during the first half of 2020, from $72.9m on 1/1/20 to $24.8m at 30 June 2020. Their share price also declined pro rata from 68p to 17.5p at yesterdays close. Their motive for this disposal may therefore have been a requirement to increase their cash position in order to deal with investor redemptions.

[montyhedge] 23/11/2020 11:25

That would be superb.

[cockerhoop] 11/11/2020 08:41

Hardman forecast 33p dividend for 2021. 36p for 2022. Easily supported by figures above.

[skinny] 11/11/2020 08:32

That's the way it reads :-

[stun12] 11/11/2020 08:18

Indeed. They are expecting to retain an ever-increasing amount of earnings based on a steady dividend. In the past, this has triggered either a higher divi or a return of retained earnings via a special dividend.

[robsy2] 11/11/2020 07:42

I had a look at the template. I couldn't work out what the divi was likely to rise by but can see that is profits come out as forecast and they should do with markets like this , then 30p divi looks good for this year with headroom for further rises going forwards.

[skinny] 11/11/2020 07:05

.

City of London Investment Group (LSE: CLIG), is pleased to announce that following the completion of the merger with Karpus Management Inc ("KMI") on 1st October 2020 (the "Completion Date"), the Company has re-instated its dividend cover template on its website The dividend cover template shows the quarterly estimated cost of a maintained dividend against actual post-tax profits for last year, the current year and the assumed post-tax profit for next financial year based upon specified assumptions.

On a consolidated basis, as of 31st October 2020, the Group managed client assets of approximately US$9.5 billion. The integration of operational areas such as Finance and Information Technology is underway and progressing on schedule.

[montyhedge] 30/10/2020 08:18

Yes dividend payed today, don't know if in broker account until later. Just going to reinvest City.

[frazboy] 30/10/2020 07:37

Good to see. With this market wobble I was hoping to add to my position in the mid to high 300s but nae luck yet.

[masurenguy] 30/10/2020 07:14

A £117K share purchase at under 400p shows some insider confidence !

Rian Dartnell, a Non-Executive Director, a person discharging managerial responsibilities ("PDMR"), has purchased 30,000 ordinary shares of GBP0.01 each in the Company ("Ordinary Shares") at a price of GBP3.91956 per share. Following the purchase, Mr. Dartnell's beneficial interest is 50,000 Ordinary Shares, representing approximately 0.1% of the Company's issued share capital.

[montyhedge] 20/10/2020 12:52

Been waiting for below 400p for top up, looking doubtful now. Good article.

[masurenguy] 18/10/2020 10:34

Latest Hardman report.

CITY OF LONDON INVESTMENT GROUP
Boost from positive markets and deal completion

City of London has announced a trading statement covering its first quarter FUM and financial performance. With the Karpus merger taking place on 1 October, all figures refer to the pre-transaction entity. Markets were very supportive over the quarter, with a smaller offset from net outflows. At the quarter-end, FUM were $5.94bn, an increase of 8% on the $5.50bn at the financial year-end. Fund
performance was good in the main strategies, with Frontier being the exception. It was also the source of the majority of the outflows, as the largest client reallocated away from the sector.

► Operations: Operational performance was slightly above our expectations, with revenue margin constant at 74bps and “fixed” costs still at £1.1m per month. The balance of the £1.8m exceptional expenses for Karpus (which are not tax deductible) reduced profit after tax to £1.0m for the quarter.

► Karpus completion: As expected, completion was on 1 October. Karpus client servicing has done a good job of getting approvals and 98% of client assets have been retained. The net result is that FUM at completion were $3.6bn, bringing the group total to $9.5bn.

► Valuation: The 2021E P/E of 9.5x is at a discount to the peer group. The underlying 2021E yield of 8.1% is attractive in our view and should provide support for the shares in the current markets.

► Risks: Although emerging markets can be volatile, City of London has proved to be more robust than some other EM fund managers, aided by its good performance and strong client servicing. Further EM volatility could raise the risk of such outflows, although increasing diversification is also mitigating this.

► Investment summary: Having shown robust performance in challenging market conditions, City of London is now reaping the benefits in a more supportive environment. The valuation remains reasonable. After a special dividend in FY’19, FY’20 saw another dividend increase. With the expected EPS boost from Karpus in 2021, the prospects for future dividend increases look very good.

[masurenguy] 16/10/2020 16:28

Agreed - I also topped up under 400p this afternoon.

[stun12] 16/10/2020 16:24

Unusual in recent times to be able to pick stock up under £4. In for a few again given recent performance.