City Of London Investment Share Discussion Threads

[masurenguy] 03/10/2023 06:50

The AGM will be held on 23rd October 2023.

[melton john] 28/9/2023 11:29

Greyingsurfer,
I read this explanation years ago and it has helped me remember.
Record day is friday. This gives a weekend without trading to sort the payments.
With standard two day settlement the last opportunity to get the divi is by close of trading the Wednesday before so if you buy on the Thursday it's excluding divi.

[greyingsurfer] 28/9/2023 10:57

Tomorrow, I think. 29th

[skinny] 28/9/2023 10:52

XD today @22p

[masurenguy] 06/9/2023 07:20

City of London Investment Group (CLIG)
Share Price: £3.93
1 Year: -6.3%
90 Days: -11.0%
7 Day: 0.98%

Now 21% undervalued after recent price drop. The fair value is estimated to be UK£5.00, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 23% over the last 3 years, while earnings per share has been flat. Revenue is forecast to decline by 3.8% in 2 years. Earnings is forecast to decline by 9.1% in the next 2 years.

SIMPLY WALL ST: 6 Sept 2023

[masurenguy] 06/8/2023 10:37

Positive markets offset by revenue margins
01 AUG 2023

City of London has announced its pre-close update for FY’23. FUM has grown by 2% over the past year, to $9.42bn, from $9.22bn, albeit it has taken a volatile path in between and the total is slightly down from the end of 3Q’23. Broadly speaking, the rise was due to market and strategy outperformance, with the MSCI Emerging Markets Net TR Index rising 1.7% and the MSCI ACWI ex USA Index increasing 12.7%. This was offset by net outflows across most of the strategies (Opportunistic Value being the exception). Performance was generally strong, with outperformance across most strategies.

Operations: As usual in its pre-close statement, City of London announced its expectations for year-end results. Expected earnings will be £14.8m, compared with £18.1m in 2022, and basic EPS is expected to be 30.4p, 18% lower than 2022’s 36.9p.

Estimates: Decreased FUM, exchange rate movements and changes to tax rates have all affected our own estimates. However, the net result is that our 2024E EPS is unchanged, at 33.9p, while our 2025 estimate is trimmed by 0.3%, to 35.8p. We have also adjusted our dividend forecasts.

Valuation: After the recent performance, the 2024E P/E of 14.8x is roughly in line with that of the peer group. The 2024E dividend yield of 8.4% 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 38% 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 maintained good long-term investment performance and operational control, City of London is well-placed to grow organically. We believe the valuation remains reasonable. Now that the Karpus transaction has settled down, the prospects for future dividend increases may be more dependent on markets and the ability to attract new business.

[johnrxx99] 04/8/2023 09:48

Can't sell on spread. Under pressure.

[masurenguy] 01/8/2023 09:10

PRE-CLOSE TRADING UPDATE for the year to 30 June 2023

City of London (LSE: CLIG), a leading specialist asset management group offering a range of institutional and retail products investing primarily in closed-end funds ("CEFs"), provides a pre-close trading update for its financial year ended 30 June 2023. The numbers that follow are unaudited.

On a consolidated basis, Funds under Management (FuM) were US$9.4 billion (GBP7.4 billion) at 30 June 2023. This compares with US$9.2 billion (GBP7.6 billion) at the Group's year end on 30 June 2022. A breakdown by strategy follows:

FuM ($ million) Strategy Index
Jun-23 Jun-22 % Net %
(estimate) inc/dec Flows inc/dec
EM 3,580 3,703 (3%) (206) MSCI EM Net TR 1.7%
KIM 3,520 3,433 3% (129) Not applicable
INTL 1,983 1,812 9% (51) MSCI ACWI ex US 12.7%
ACWI/Barclays Global
OV 244 193 26% 35 Agg 7.5%
Other* 97 83 17% (6)
9,424 9,224 (357)
----------- ------- ------

* includes Frontier, REIT and seed investments

Although wider discounts were a headwind for all CEF strategies, investment performance was ahead of benchmark for the bulk of CLIM's assets due to strong NAV performance in the Emerging Market strategy. The International strategy was slightly behind benchmark over the period while the Opportunistic Value strategy outperformed. KIM's taxable fixed income, conservative balanced and SPAC strategies outperformed their market indices over the period, while equity strategies lagged their benchmarks. Net investment outflows were US$357 million for the Group over the period as clients reduced exposure to markets due to ongoing volatility, pension fund de-risking and competition from cash products. Attractive discounts across the strategies will be the focus of marketing efforts in the second half of 2023.

Operations

The Group's income currently accrues at a weighted average rate of approximately 71 basis points of FuM, net of third party commissions. The Group's overheads for the year to 30 June 2023 are expected to be GBP22.5 million (2022: GBP19.7 million), primarily as a result of weaker sterling against USD as well as higher employee retention and retirement costs during the year. "Fixed" costs are c.GBP1.9 million per month, and accordingly the run-rate for operating profit, before profit-share and amortisation of intangibles is approximately GBP2.6 million per month based upon current FuM and a US$/GBP exchange rate of US$1.2703 to GBP1 as at 30 June 2023.

For the year to 30 June 2023, the Group estimates that the unaudited profit before amortisation of intangibles and taxation to be approximately GBP23.4 million (2022: GBP27.2 million profit before amortisation of intangibles). Profits after an anticipated tax charge of GBP3.9 million (representing 21% of profits before taxation) will be approximately GBP14.8 million (2022: profits of GBP18.1 million after a tax charge of GBP5.0 million, representing 22% of profits before taxation). Basic and fully diluted earnings per share are expected to be 30.4p and 29.8p respectively (2022: 36.9p and 36.4p).

Dividend

The Board is proposing to recommend a final dividend of 22p per share (2022: 22p), subject to approval by shareholders at the Company's Annual General Meeting to be held on 23 October 2023. This would bring the total dividend payment for the year to 33p (2022: 33p, special dividend 13.5p). Rolling five-year dividend cover based on underlying profits, excluding the special dividend equates to 1.24 times (2022: 1.34 times).

[johnrxx99] 31/7/2023 06:14

Quite amazing and glad I didn't sell, I think.

[mister md] 28/7/2023 18:27

Price unchanged on week, not bad considering trading update day action ;-)

[masurenguy] 25/7/2023 12:12

Quite agree Monty. Some earlier ill-informed and rather specious comments.

[montyhedge] 25/7/2023 11:59

22p dividend eases the pain. Must be me, I thought not to bad considering fund managers having a tough time.

[mister md] 25/7/2023 10:41

Phew, price recovering a little. Still yields 8%+. I'm holding on to my investment.

[creme de menthe] 25/7/2023 08:48

Trading and share price is following a similar pattern to other asset managers. Clig has done well to maintain AuM but costs increasing. Look at PMI and POLR and others all suffering similarly. I have held here for at least 15 years and share price is down to my original buy price, yet I have had my money back with dividends. Anyway, I want to see what they can do to reduce costs and increase margin before making any decision about selling. In the meantime another 22p is nice whilst waiting.

[owenski] 25/7/2023 08:27

Barry's hand not on the tiller anymore I guess.

[johnrxx99] 25/7/2023 08:01

I guess someone may buy it but with the staff taking most of the earnings, unlikely.

[p49b] 25/7/2023 07:43

I have held these for a few years, but sold out today as CLIG seems to be going nowhere.
Costs keep rising,they keep promising to grow the AUM but never do, and the profits are reducing. It’s a shame but IMO they can’t keep promising better results and not deliver.

[blackfinance] 25/7/2023 07:41

Utter disgrace.

[masurenguy] 25/7/2023 07:11

PRE-CLOSE TRADING UPDATE for the year to 30 June 2023

On a consolidated basis, Funds under Management (FuM) were US$9.4 billion (£7.4 billion) at 30 June 2023. This compares with US$9.2 billion (£7.6 billion) at the Group's year end on 30 June 2022.

Although wider discounts were a headwind for all CEF strategies, investment performance was ahead of benchmark for the bulk of CLIM's assets due to strong NAV performance in the Emerging Market strategy. The International strategy was slightly behind benchmark over the period while the Opportunistic Value strategy outperformed. KIM's taxable fixed income, conservative balanced and SPAC strategies outperformed their market indices over the period, while equity strategies lagged their benchmarks. Net investment outflows were US$357 million for the Group over the period as clients reduced exposure to markets due to ongoing volatility, pension fund de-risking and competition from cash products. Attractive discounts across the strategies will be the focus of marketing efforts in the second half of 2023.

Operations

The Group's income currently accrues at a weighted average rate of approximately 71 basis points of FuM, net of third party commissions. The Group's overheads for the year to 30 June 2023 are expected to be £22.5 million (2022: £19.7 million), primarily as a result of weaker sterling against USD as well as higher employee retention and retirement costs during the year. "Fixed" costs are c£P1.9 million per month, and accordingly the run-rate for operating profit, before profit-share and amortisation of intangibles is approximately £2.6 million per month based upon current FuM and a US$/£ exchange rate of US$1.2703 to £1 as at 30 June 2023.

For the year to 30 June 2023, the Group estimates that the unaudited profit before amortisation of intangibles and taxation to be approximately £23.4 million (2022: £27.2 million profit before amortisation of intangibles). Profits after an anticipated tax charge of £3.9 million (representing 21% of profits before taxation) will be approximately £14.8 million (2022: profits of £18.1 million after a tax charge of £5.0 million, representing 22% of profits before taxation). Basic and fully diluted earnings per share are expected to be 30.4p and 29.8p respectively (2022: 36.9p and 36.4p).

Dividend

The Board is proposing to recommend a final dividend of 22p per share (2022: 22p), subject to approval by shareholders at the Company's Annual General Meeting to be held on 23 October 2023. This would bring the total dividend payment for the year to 33p (2022: 33p, special dividend 13.5p). Rolling five-year dividend cover based on underlying profits, excluding the special dividend equates to 1.24 times (2022: 1.34 times).

[eggbaconandbubble] 17/7/2023 17:43

This share price must be doin' his 'ead in!