City Of London Investment Share Discussion Threads

[buy2sell1] 03/3/2022 15:59

Worth keeping an eye on, for sure.

[masurenguy] 03/3/2022 15:51

Shares went XD last Friday and the 24.5p dividend is due to be paid on 25 March. The subsequent fall in the shareprice this week - circa 25p to date - largely reflects this.

[nobbyx] 26/2/2022 13:11

There is not much connection between the CLIG day-to-day share price and actual company events.
On another day the share price may drop (or rise) by, say, 20p, for no apparent reason only to correct in the opposite direction, again for no apparent reason, a few days later. It's in the nature of the beast - a small company with a large proportion of loyal long-term shareholders and small daily share churn.

[warrior boy] 26/2/2022 09:21

Down 10p when we went ex-div of 24.5p not too bad.

[montyhedge] 23/2/2022 09:50

One thing I like about this stock, gives cash to shareholders, then every now an then a special dividend.

[montyhedge] 22/2/2022 16:21

Yes analysts are about useful as a chocolate teapot.

[eggbaconandbubble] 22/2/2022 10:55

That analyst says absolutely nothing other than the facts that have already been put out.
Do these guys get paid for that ?

[ga_dti] 22/2/2022 10:31

Latest analyst interview discussing the key points from the half year report for the six months ended 31st December 2021:

[montyhedge] 18/2/2022 12:07

With special and interim dividend 24.5p, I think Sept final will be 24p, that will do me in my tax free Isa bag.

[masurenguy] 18/2/2022 07:38

Difficult to take a perceptive view on the 2.6% fall in FUM which appears to largely be down to Chinese equities. Still ahead of the year end by 2% and the other metrics look good. Going forward a lot will depend on broad market trends this year and I wouldn't like to try to second guess them other than there will probably be some volatility ahead.

HALF YEAR SUMMARY

- Funds under Management (FuM) of US$11.1 billion (GBP8.2 billion) at 31st December 2021. This compares with US$11.4 billion (GBP8.3 billion) at the beginning of this financial year on 1st July 2021 and US$10.9 billion (GBP8.0 billion) at 31st December 2020.
- FuM at 31st January 2022 of US$10.8 billion (GBP8.0 billion)
- Net fee income representing the Group's management fees on FuM was GBP29.8 million (31st December 2020: GBP22.6 million)
- Underlying profit before tax* was GBP15.5 million (31st December 2020: GBP11.2 million). Profit before tax was GBP13.6 million (31st December 2020: GBP8.8 mllion)
- Maintained interim dividend of 11p per share (31st December 2020: 11p) payable on 25th March 2022 to shareholders on the register on 25th February 2022
- Special dividend of 13.5p per share (31st December 2020: nil) payable on 25th March 2022 to shareholders on the register on 25th February 2022

Assets and performance

Funds under Management (FuM) fell by 2.6% in the six months ended 31st December 2021 to US$11.1 billion due to mixed conditions across the Group's products but were still 2% ahead of the comparable figure at the end of 2020. Although the more defensive, value-driven characteristics of closed-end funds (CEFs) provided positive attribution for the Emerging Markets (EM) strategy in the half year, the 23% fall in Chinese equities, which accounts for around one-third of the index, proved a major drag on both the benchmark and FuM, with an 11% fall over the period to US$4.8 billion. Despite lacklustre markets in the International strategy, this product has continued to attract impressive inflows. The strategy FuM stands at US$2.1 billion, a 14.2% increase in FuM as compared to 30th June 2021 and a 26.3% increase in FuM as compared to 31st December 2020. While the aggregate FuM numbers at CLIM were little changed over the half-year period at US$7.2 billion, each of the major strategies recorded robust outperformance against their respective benchmarks. Looking forward, the combination of this strong relative performance and an ability to re-commence face-to-face meetings with clients and consultants are anticipated to translate into further inflows in the coming months.

KIM's FuM grew by c.1% to US$3.9 billion as compared to 30th June 2021 despite the normal seasonal withdrawals that arise in the final weeks of the calendar year. In comparison with 31st December 2020, however, FuM was 7% higher, thanks mainly to very strong relative performance, particularly in the dominant fixed income space. The issuance of approximately 250 Special Purpose Acquisition Companies (SPACs), represents an addition of US$54 billion to KIM's investable universe. SPACs can offer a fixed income return profile with lower risk, and potential for upside. Pre-merger SPAC investments were an important contributor to returns for KIM in the first half of the financial year. With c.60% of KIM's assets invested in fixed income securities, it is very encouraging to note that they have been able to show strong performance through a period of rising inflation and interest rate expectations and this bodes well for both client retention and new business potential in the coming year.

Cash and dividends

The CLIG Board reviews its cash position and overall distribution policy on a regular basis and believes that our policy of a rolling five year dividend cover of 1.2x remains appropriate. Our cash position has grown to GBP24.5 million at calendar year end in addition to the seed investments of GBP6.1 million (including GBP4.0 million in REITs and GBP1.9 million in the Global product funded in December 2021). After considering the alternatives for returning a portion of this cash to shareholders, the Board has announced an interim dividend of 11p per share in line with last year amounting to c.GBP5.4 million and a 13.5p special dividend amounting to c.GBP6.6 million.

Outlook

Global markets will be confronted this year with progressive reductions in monetary stimulus as pandemic support measures are gradually withdrawn and this is likely to create headwinds for both equity and debt markets. Indeed, benchmarks such as the tech-heavy NASDAQ, which rose by c.130% in the 20 months to November 2021, have appeared more vulnerable to a correction recently with a 9% fall over the last two months. While international equity markets may be less vulnerable to these tech valuation bubbles, the tapering of monetary support, ongoing supply disruptions and geopolitical tensions each have the capacity to destabilise markets in the months ahead and point to the need for a cautious stance. Within the EM space, China will continue to exert a strong influence and the recent tightening of the regulatory environment, coupled with large-scale mobility restrictions arising from China's zero-tolerance COVID policy will constrain both the pace and timing of an economic recovery.

It is now 15 months since the merger with KIM and we believe that the results during this period demonstrate the benefits of a more diversified revenue base in terms of both clients and market segments. Thus, despite the clear challenges ahead, we remain optimistic that the value-driven characteristics of CEFs, supported by a macro-economic research focus, will continue to offer enhanced relative performance for our clients and shareholders over the longer term.
Efforts to diversify from CLIM's EM-centric strategy via development of the INTL strategy proved timely with the underperformance of EM equities over the past five years relative to other equity asset classes. We believe that ongoing growth via diversification, including the merger with KIM, will continue to benefit all stakeholders by reducing the volatility of earnings and broadening our client base. The support of our stakeholders is appreciated as we continue to grow the combined business.

[johnrxx99] 18/2/2022 07:19

I was a holder and thinking of getting back in. Can I please ask what are your views on the fairly stagnant FUM? I appreciate on all other metrics it look good.

[skinny] 18/2/2022 07:03

.

HALF YEAR SUMMARY


- Funds under Management (FuM) of US$11.1 billion (GBP8.2
billion) at 31st December 2021. This compares with US$11.4
billion (GBP8.3 billion) at the beginning of this financial
year on 1st July 2021 and US$10.9 billion (GBP8.0 billion)
at 31st December 2020.
- FuM at 31st January 2022 of US$10.8 billion (GBP8.0 billion)
- Net fee income representing the Group's management fees
on FuM was GBP29.8 million (31st December 2020: GBP22.6
million)
- Underlying profit before tax* was GBP15.5 million (31st
December 2020: GBP11.2 million). Profit before tax was
GBP13.6 million (31st December 2020: GBP8.8 million)
- Maintained interim dividend of 11p per share (31st December
2020: 11p) payable on 25th March 2022 to shareholders
on the register on 25th February 2022
- Special dividend of 13.5p per share (31st December 2020:
nil) payable on 25th March 2022 to shareholders on the
register on 25th February 2022

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


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

[eggbaconandbubble] 18/2/2022 06:35

Earnings grew by 124.5%. Not the eps.!

[masurenguy] 18/2/2022 00:45

Simply Wall St

CLIG Stock Overview

City of London Investment Group PLC is a publically owned investment manager.
About the company

REWARDS

Trading at 31% below our estimate of its fair value

Earnings are forecast to grow 9.2% per year

Earnings grew by 124.5% over the past year

Pays a high and reliable dividend of 6.37%

Flawless balance sheet 6 star dividend payer.

RISK ANALYSIS: CLIG passed our risk checks.

[montyhedge] 17/2/2022 12:43

Ex Div 24.5p next Thursday, another big dividend in the ISA tax free bag.

[2wild] 15/2/2022 14:04

Added at 514.14p. These go Ex 24.5p next week and with an unchanged 22p final paid in October, that's a 9% cash return over 8 months. Bonkers!

[stun12] 10/2/2022 12:21

Agreed. Picked a few more up yesterday at 514p.

[montyhedge] 08/2/2022 14:33

Must admit with the dividend plus the special and good news, thought might be trading around 525p to 550p.

[masurenguy] 23/1/2022 13:16

"Having maintained good investment performance and operational control, City of London is well placed to grow organically. The valuation remains reasonable. After special dividends in FY19 and FY22, dividend increases in FY20 and FY21, and with the EPS boost from Karpus, the prospects for future dividend increases look very good."

[montyhedge] 21/1/2022 14:40

I may be wrong but special dividend costing 7m they have 24.5m cash in bank. Do you think could see another special 2023 or I'm I being greedy.

[skinny] 21/1/2022 13:53

One of only a handful of blues for me today.

[masurenguy] 21/1/2022 13:47

Nice rise today when the FTSE 100 & 250 are down by 1.2% and 1.8% respectively.

[montyhedge] 21/1/2022 12:10

Must admit I thought this be nearer 550p, it seems a cash cow, that keeps on giving.

[masurenguy] 21/1/2022 08:24

Thanks for the link ga_dti