City Of London Investment Share Discussion Threads

[skinny] 15/2/2021 10:28

Profit taking / Barry?


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[davebowler] 15/2/2021 10:27

Zeus-


Organic & acquisitive growth
What’s new: Interims confirm strong organic growth, with substantial contribution from the Karpus Investment Management (“KIM”) acquisition from 1 October.

§ Group consolidated FuM of US$10.9bn (£8.0bn) on 31/12/2020, included record FuM for City of London Investment Management (“CLIM”) of US$7.2bn (Dec 2019: US$ 6.0bn) and KIM of US$3.7bn (acquired 1 October 2020);

§ At end January 2021 consolidated FuM was US$11.1bn (£8.1bn);

§ Net fee income rose 38% to £22.6m, with £5.1m contribution from KIM acquisition and £17.5m from CLIM (i.e. 6% organic growth); gross of commissions and custody fees revenue rose 37% to £23.7m;

§ Underlying PBT rose 81% to £11.2m (pre £1.7m exceptional merger costs, £1.1m of amortisation of acquired intangibles and £0.4m investment gain), with £3.4m from KIM and £7.8m from CLIM (i.e 26% organic growth);

§ 22% rise in underlying EPS to 23.8p (1H20: 19.4p);

§ 20% rise in net cash to £17.5m (30 June 2020: £14.6m);

§ 10% rise in interim DPS to 11p (1H20: 10p) with ex date of 5 March 2021.

Performance: “The rebound in CLIM assets from March 2020 lows continued apace … The emerging market product posted a relative gain of 6.4%, developed 14.6% and opportunistic value 11.6% against their respective benchmarks … with the result that more than 95% of CLIM’s FuM achieved above average performance for 2020 as a whole.” Low asset volatility of KIM’s FuM “represents a central positive factor in the long-term benefits that should derive from the merger.”

Zeus view: With higher FuM and a £3.4m monthly run-rate for operating profit, on 20 January, in the absence of full interim accounts, we raised our 2021 adj EPS by 8% to 48.7p and our 2022 adj EPS by 4% to 49.0p. Using management’s new KPI “underlying profit and underlying EPS”, we forecast underlying PBT for FY21E of £26.2m, and for FY22E of £30.8m, and underlying EPS for FY21E of 47.6p (2% cut) and for FY22E of 49.0p (unchanged). Our DPS forecasts are unchanged.

Year to date the Emerging Markets Index is up 10%. Our forecasts prudently assume no further market rise.

Valuation: At 556p CLIG shares are trading on 11.5x PER and 5.9% dividend yield, with 2.0% yield on the interim dividend alone

[cockerhoop] 15/2/2021 09:26

Not sure how you get to that conclusion johnrxx99?

CLIG did 50% of underlying forecasts in H1 with only 3 months contribution from Karpus. Current AUM higher than 31st December 2020 which in itself was higher than the H1 average AUM.

Forecasts look light to me assuming current AUM continues.

[johnrxx99] 15/2/2021 09:18

Have a lot to do in order to get annual forecasts. Just saying.

[mach100] 15/2/2021 09:07

Well tamemetooz one could ask for JAYZ to light your cigarette after you have given Beyonce a good seeing too I suppose but yeah strictly around shares I suppose today's update doesn't leave many questions but true a good deal of satisfaction.

[masurenguy] 15/2/2021 08:53

Good set of results and 10% uplift on the dividend. Some investors are 'taking profits on the news', which is not an unusual activity !

[takemetooz] 15/2/2021 07:40

Increased divi, increased growth, consistent, what more can one ask for.

[skinny] 15/2/2021 07:38

.

HALF YEAR SUMMARY


- Funds under Management (FuM) of US$10.9 billion (GBP8.0
billion) at 31st December 2020 (post-merger). This compares with US$5.5 billion (GBP4.4 billion) at the beginning of this financial year on 1st July 2020 and US$6.0 billion (GBP4.5 billion) at 31st December 2019 (pre-merger).

- FuM at 31st January 2021 of US$11.1 billion (GBP8.1 billion) - Net fee income representing the Group's management fees on FuM was GBP22.6 million (31st December 2019: GBP16.4 million)

- Underlying profit before tax* was GBP11.2 million (31stDecember 2019: GBP6.2 million). Profit before tax was GBP8.8 million (31st December 2019: GBP6.3 million)

- Increased interim dividend to 11p per share (31st December 2019: 10p) payable on 19th March 2021 to shareholders on the register on 5th March 2021 *This is an Alternative Performance Measure (APM).

Please refer to CEO statement for more details on APMs.

For access to the full interim report, please follow the link below:



This release includes forward-looking statements, which may differ from actual results. Any forward-looking statements are based on certain factors and assumptions, which may prove incorrect, and are subject to risks, uncertainties and assumptions relating to future events, the Group's operations, results of operations, growth strategy and liquidity .

SENIOR MANAGEMENT CHANGES

City of London Investment Group is pleased to announce that Deepranjan Agrawal has been appointed as the Chief Financial Officer (CFO) and Alan Hoyt has been appointed as the Chief Technology Officer (CTO) with immediate effect. Both individuals will continue to report to Tom Griffith, Chief Executive Officer of the Group.

Deep Agrawal joined the Company in January 2020 and has been managing the Group's finance function. Deep's experience includes over sixteen years in public practice with Deloitte and, more recently, three years with RSM, serving clients within the asset management industry. Deep has a wealth of relevant knowledge having served a range of asset management companies including large and small investment managers, Investment Trusts and UK authorised funds. Deep completed his Master of Commerce degree from the University of Pune, India and is a Chartered Accountant.

Alan Hoyt joined the Company in 2009 and has over 25 years of experience in the IT industry. Prior to joining CLIM, Alan worked as the Chief Technology Officer for PLANCO, a Hartford Life Company, where his role was expanded to include Vice President. Before PLANCO, Alan held positions at The Vanguard Group, New York Life Benefit Services, and as a Technology Consultant in Boston. Alan holds a Masters in Computer Information Services from Bentley College and a Bachelors in Science from the University of Massachusetts as well as certificates from the Wharton Executive Management program.

Barry Aling, Chairman of City of London Investment Group, said: "In the wake of our merger with Karpus Management Inc. towards the end of 2020, the integration of the Group finance and IT functions is a key element to realising the benefits of the transaction. In that regard, both Deep and Alan's contribution take on additional importance and we welcome them in their new roles."

[mister md] 12/2/2021 19:42

yes one to buy and hold, superb combination of both dividend yield and capital appreciation. Just wonder if there is anything in particular driving the latest move ?

[montyhedge] 12/2/2021 17:42

I'm holding, been in since 280p, fantastic dividends all the way up, I'm looking for 1000p+ in 3 to 4 years, getting paid to wait as well.

[2wild] 12/2/2021 14:24

Spread 522-550p
Top-sliced at 537.4p, 5% above my purchase yesterday at 511.97p.

[montyhedge] 11/2/2021 18:47

Totally agree with you.

[2wild] 11/2/2021 15:37

USA seems to be hitting new all time highs on a near daily basis and the valuations on some loss making tech stocks are insane. However a lot of the gains are in the FANGS which are now all makeing increasingly obscene amouts of money. With the fed printing money like it's going out of fashion and their willingness to buy shed loads of equities on any sell off, there's negligible risk of a major US correction, in my view. Can see the yield on CLIG falling to 5% in the medium term. Giving a share price of 660p on 33p div and 720p on 36p. Other opinions are available.

[dangersimpson2] 11/2/2021 11:48

The MSCI index is up around 10.5% so far in 2021, and although the company is less dependent on EM with KMI in the picture, this bodes very well for future profit & dividend levels if EM's remain at current levels.

EM's also appear to be pretty much the only place where recent gains are due to real underlying earnings growth rather than speculative re-rating:



No guarantee that EMs don't crash with the rest of markets if the US takes a tumble but EMs at least appears to be mostly responding to fundamentals not memes.

[2wild] 11/2/2021 11:32

Top sliced at just over 525p yesterday, a nice 19% profit on my previous purchase at 441p on 18th Jan.

Brought back twice as much at just under 512p, this morning. Currenly you have to pay near the offer price to purchase but can sell at mid-price, which suggests market makers are very short of stock.

[montyhedge] 10/2/2021 13:07

500p was always resistance level, now it's support level.New trading range should be 525p - 550p.

[skinny] 08/2/2021 17:27

Hardly smashed through - but all going in the right direction.


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[robsy2] 08/2/2021 17:17

Nice to smash through 500p. 550p next.

[montyhedge] 08/2/2021 16:53

Lol if I had the dosh, I would buy the lot off him.

[2wild] 08/2/2021 16:49

Closed at 518p, less than 1.5% below Barry O's upper 525p target. He can start selling from 16th, following final tesults. Will be interesting to see if he drip feeds the 750K into the market or sells to a few institutional investors.

[dangersimpson2] 08/2/2021 16:44

UT trade at 518, resistance broken? Not sure I've seen enough volume to have clear Oliff's 500p sale yet, although may have gone through off-market.

[montyhedge] 08/2/2021 14:23

This has been one of my biggest winners, growth plus rising dividends.
Could we be at 1000p three to fours years time? 500p resistance level though.

[deanowls] 08/2/2021 08:52

A lot of money will flow through to emerging markets so hopefully should be beneficial

[eggbaconandbubble] 07/2/2021 19:04

Impending inflation when we pull out of the present situation will have some effect on increasing share price Won't it?