City Of London Investment Share Discussion Threads

[masurenguy] 02/10/2021 11:28

Barry Olliff will be 77 this year, is now in semi-retirement and his current share sales have absolutely nothing to do with being "savvy" !

He has scrupulously announced his planned share sales and trigger price points in advance over the past 7 years as he wound down to retirement. Following the gradual reduction in his shareholding, from 15.5% ten years ago to under 2.5%, it was announced that he would no longer give advanced notice of residual share sales after he retired from CLIG and became an NXD at the end of last year. I'm also sure that he is perfectly cogniscent of efficient tax management of his disposals.

Investors in this company are extremely fortunate to have had him at the helm for so long, not only in terms of the outstanding financial performance of this company, but also for his transparency, honesty and integrity which were such very rare traits in the shark infested waters of the City of London. His successors at CLIG have a great role model to emulate and also a lot to live up to !

[eggbaconandbubble] 02/10/2021 10:10

With circa 1.2 million to go - zzzzzzzzzz!

One way or another, him selling them as he is doesnt appear to be very savvy to me.

There must be far better ways for him to raise cash, and possibly with a far better tax liability situation.

Still, WDIK!!!

[otemple3] 01/10/2021 18:01

He's stopped selling at fixed price points I think, he now can just sell when he feels like. RNS states how many to go and will continue to hold this back but we get a nice Divi whilst we wait for a re-rate....

[eggbaconandbubble] 01/10/2021 17:45

It would be useful if CLIG could give everyone a rundown on how many shares etc. B.O. has left to sell at which previously agreed price etc.etc.

If its available somewhere please let me know, Cheers!

[montyhedge] 27/9/2021 14:15

7th Oct ex div date for our 22p dividend, I know it will probably drop the div amount. But always nice to get in the ISA tax free dividend bag.Last special div, 2019, 13.5p, I reckon 2022 could we see a 20p special, then the shares would rocket to new trading range 650p to 675p. They have the cash.

[johnroger] 27/9/2021 14:15

Sudden jump to a new high!

[montyhedge] 20/9/2021 17:39

Good report, with all that cash could another special dividend be on the cards next year. If they do 650p my target.

[masurenguy] 20/9/2021 16:41

Results full of cash
Hardman & Co: 20 Sep 2021

City of London has issued its annual report for FY’21. While the headline figures remain impressive after the Karpus transaction last October, it is some of the underlying figures that are the news here. The most eye-catching one for most investors will be the rise in the cash balance, at £25.5m, 75% more than the £14.6m from a year ago. Both the businesses are strongly cash-generative and, unless markets have a strong correction, this will increase further over the next year. At the very least, this will provide a robust balance sheet in the event of any market downturns, but may also provide options for further cash returns.

ESG: With ESG rising in investors’ minds, we take a look at City of London’s improved disclosure in this area. It has long had a strong governance approach in its investment process, but it is broadening out its perspective. Corporately, there is a commitment to review the board composition over the next year.

Estimates: The main changes to our estimates reflect City of London’s ongoing excellent cost control, with small reductions to our assumed future expenses. The net result is small upgrades to our forecasts, with both our 2022E and 2023E EPS increasing by 1%.

Valuation: Despite the recent good performance, the 2022E P/E of 12.1x remains at a discount to the peer group. The 2022E yield of 6.9% is attractive, in our view, and should, at the very least, provide support for the shares in the current markets.

Risks: Although City of London has reduced its relative emerging markets exposure, it is still 47% of assets. It has proved to be more robust than some other fund managers, aided by its good performance and strong client servicing. Market volatility remains a risk, 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, dividend increases in FY’20 and FY’21, and with the EPS boost from Karpus, the prospects for future dividend increases look very good.

[montyhedge] 17/9/2021 12:46

Do you think on these figures, they should be re-rated ? Surely 625p range.

[topvest] 13/9/2021 20:45

A great company indeed. More than happy to hold. Only negative was the net outflows. EM net outflows for a few years. They are reopening the International Strategy which should help this year though. Be nice to see some EM and FM net inflows as well. Overall, their strategy works though and so the net flows should arrive in the medium term as they have done in the past.

[montyhedge] 13/9/2021 16:27

New trading range 625p would put them on a p.e 13 that's not unreasonable for a well run company.

[montyhedge] 13/9/2021 08:06

P.e at 520p. 10.81. Would be surprised if shareprice does not move up to a new trading range.

[janeann] 13/9/2021 07:47

Very pleased - well done CLIG

[robsy2] 13/9/2021 07:44

Looks good. FX has been a headwind and they have suffered some outflows but overall the merger has been a success.
As they say "CLIG finished the year in rude health with assets, revenues and profits at the highest levels in the Group's history."

[rogerbridge] 13/9/2021 07:32

Nice uplift to the dividend.

[montyhedge] 13/9/2021 07:23

Superb, just read the rns.

[skinny] 13/9/2021 07:14

Thanks Masurenguy.

[masurenguy] 13/9/2021 07:10

Outstanding results !

CHAIR'S STATEMENT

Most businesses are well prepared for interruptions to working practices with sophisticated disaster recovery contingencies but few, if any, could have foreseen dislocation on the scale and for as long a period as that witnessed over the last 18 months. I am very pleased to report, therefore, that both operating entities, CLIM and KIM, have sustained full and uninterrupted remote working functionality throughout the COVID-19 pandemic and, as I will detail later, CLIG finished the year in rude health with assets, revenues and profits at the highest levels in the Group's history.

Combined Funds under Management (FuM) rose nearly 5% to US$11.4 billion in the six months to 30th June 2021 and by 20% since the merger closing date of 1st October 2020. For the year as a whole, CLIM funds grew by c.37% to US$7.5 billion while KIM's FuM grew by c.9% to US$3.9 billion from the date of the merger, an impressive rate of growth given that c.60% of KIM's client assets are invested in fixed income securities.

Group statutory pre-tax profits rose by 137% in the year ending 30th June 2021 to GBP22.2 million (2020: GBP9.4 million), which include a first-time post-merger contribution from KIM. In order to present a more accurate picture of our financial performance, however, I propose to focus on an Alternative Performance Measure of 'Underlying' profits and earnings per share (EPS), which exclude exceptional or non-recurrent items, mainly associated with the KIM merger. On this basis, underlying pre-tax profits were GBP26.7 million, (2020: GBP11.5 million), with CLIM contributing GBP16.6 million, a 44% YOY increase, and KIM contributing GBP10.1 million in the nine months to 30th June 2021.

The Board is able to recommend a final dividend to shareholders of 22p per share. Taken together with the increased interim payment, this brings total dividends for the year to 33p, equivalent to a 10% increase YOY. While these payments will result in dividend cover of 1.2 for the year based on our statutory results, that figure rises to 1.29 on a rolling five-year basis, compared with a target cover of 1.2. Having regard to the buoyancy of markets over the last year, the Board believes that a modest degree of headroom above the target level is prudent. The final dividend of 22p will be paid on 29th October 2021 to those shareholders on the register at 8th October 2021.

SUMMARY

- Funds under Management (FuM) of US$11.4 billion (GBP8.3 billion) at 30th June 2021. This compares with US$5.5 billion (GBP4.4 billion) at the beginning of this financial year on 1st July 2020 (pre-merger)

- Net fee income was GBP52.5 million (2020: GBP31.7 million)

- Underlying profit before tax* was GBP26.7 million (2020: GBP11.5 million). Profit before tax was GBP22.2 million (2020: GBP9.4 million)

- Underlying basic earnings per share* were 48.1p (2020: 38.2p). Basic earnings per share were 39.4p (2020: 30.3p) after an effective tax charge of 24% (2020: 22%) of profit before taxation

- Increased final dividend to 22p per share (2020: 20p) payable on 29th October 2021 to shareholders on the register on 8th October 2021, making a total for the year of 33p (2020: 30p)

*This is an Alternative Performance Measure (APM). Please refer to the Financial Review for more details on APMs.

[chrisb1103] 10/9/2021 09:45

Results day Monday!

[eggbaconandbubble] 10/9/2021 07:25

St. Leger day tomorrow!

[montyhedge] 06/9/2021 09:47

I know he wanted to know where to park cash, you don't park cash in shares, really only fix income. But of course everything a risk.

[luderitz] 04/9/2021 17:51

Wrong thread MH this is the CLIG thread.

[johnrxx99] 23/8/2021 09:58

Maz, sell high and all that for 10+%. I don't bother to park cash for the reason you state.

Anyway, gla.

[luderitz] 23/8/2021 09:54

Agreed, also if your not in then you can’t win.