City Of London Investment Share Discussion Threads

[skinny] 23/2/2024 07:00

HALF YEAR SUMMARY



- Funds under Management (FuM) of $9.6 billion at 31st December 2023. This compares with $9.4 billion at the beginning of this financial year on 1st July 2023 and $9.2 billion at 31st December 2022

- FuM at 31st January 2024 of $9.5 billion

- Net fee income representing the Group's management fees on FuM was $32.6 million (31st December 2022: $31.9 million)

- Underlying profit before tax* was $13.3 million (31st December 2022: $13.6 million). Profit before tax was $11.1 million (31st December 2022: $11.0 million)

- Maintained interim dividend of 11p per share (31st December 2022: 11p) payable on 28th March 2024 to shareholders on the register on 1st March 2024

[covid 19 deal] 22/2/2024 21:30

Whose cash ...who will enjoy investors cash ..time will tell in these ponzy schemes

[montyhedge] 20/2/2024 10:16

These must be a takeover target, plenty of cash as well.

[skinny] 14/2/2024 17:15

Certainly a strong possibility.

Half Year results on the 23rd.

[pvb] 14/2/2024 16:56

On the turn?

[masurenguy] 31/1/2024 12:49

SIX MONTHS TO 31 DECEMBER 2023: TRADING UPDATE AND DIVIDEND DECLARATION

City of London (CLIG) announces that on a consolidated basis, as at 31 Dec 2023, FuM were US$9.6bn. This compares with US$9.4bn at the Group's year end on 30 June 2023. A breakdown by strategy:

FuM ($m)
Dec-23: Jun-23
EM 3,578: 3,580
KIM 3,618: 3,520
INTL 2,004: 1,983
OV 278: 244
Other* 98: 97
Total 9,576: 9,424: +1.6%

IM Performance

Relative investment performance of the Group's strategies was mainly positive over the period, with OV and Fixed Income strategies outperforming, International Equity neutral and EM slightly negative. Significant CEF discount widening through late 2023 was partly reversed in Q4 which helped relative performance into year-end while NAV performance was positive. Over the six-month period, there were net outflows of circa US$294m across the Group's strategies, led by EM redemptions at CLIM and required minimum distributions for KIM clients at year end. Marketing and sales activity has picked up significantly in January as clients and prospects review their investment allocations. We are focused on new mandates in a number of the Group's asset classes with very good long-term performance as CEF discounts are at compelling levels and there is ample capacity.

Operations

The Group's income currently accrues at a weighted average rate of approximately 70 basis points, net of third party commissions. "Fixed" costs are c. US$2.3m per month, and accordingly the current run-rate for operating profit before profit-share is approximately US$3.2m per month based upon current FuM. The Group has proactively undertaken cost reductions as part of normal operations reflecting the current market environment. Based on actions initiated to date, savings of c. US$2.5m of costs per annum will be fully realised in the next financial year.

The Group estimates the unaudited profit before amortisation and taxation for the six months ended 31 December 2023 to be approximately US$13.9m (six months ended 31 December 2022: US$13.8m, restated in USD based on average exchange rate). Inclusive of our regulatory and statutory capital requirements, cash and cash equivalents stood at US$28.8m at the end of the calendar year (US$28.6m as at 30 June 2023, restated in USD based on closing exchange rate), in addition to the seed investments of US$2.4m. Our cash reserves will allow us to continue managing the business conservatively through volatile markets while following our dividend policy for our shareholders. The Company is currently in a close period which will end with the publication of results for the six months ended 31 December 2023 on 23 February 2024.

Dividend

The Board declares an interim dividend of 11p per share, which will be paid on 28 March 2024 to shareholders registered at the close of business on 1 March 2024 (2022: 11p).

The Board confirms the following interim dividend timetable:

-- ex-dividend date: 29 February 2024
-- dividend record date: 1 March 2024
-- DRIP election date/ deadline 8 March 2024
-- announcement of USD dividend 14 March 2024
-- dividend payment date: 28 March 2024

[mister md] 29/1/2024 14:29

Only 50m shares in issue, which probably means it's easy to miss the boat if on the sidelines here as sentiment improves and the shareprice recovery picks up speed. (i.e. a reversal of what happened on the way down!).

[robsy2] 29/1/2024 07:26

Nice post! It has perked up a bit of late.There are so many UK fund management groups that look good value that sometimes I wonder why I stay here year in year out . The divis is the answer but one can get those elsewhere as well . Takeover ? No idea. I am thinking out loud here and wondering if there might be large divis and stronger takeover possibiities elsewhere in the UK fund manager space?

[masurenguy] 29/1/2024 07:11

Investor sentiment improves as stock rises 15%

After last week's 15% share price gain to £3.69, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 16x in the Capital Markets industry in the UK. Total returns to shareholders of 1.2% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at £4.71 per share.

[brucie5] 22/1/2024 10:19

Yes indeed, class act for dividend seekers. I have only added on the way down, though I am still... Down...

[robsy2] 22/1/2024 07:25

Steady as she goes.I’ve held CLIG for years and it has given me 7% a year returns , more or less the dividend.

[masurenguy] 22/1/2024 07:14

6 MONTHS TO 31 DEC 2023 TRADING UPDATE AND DIVIDEND DECLARATION

City of London (LSE: CLIG) announces that on a consolidated basis, as at 31 December 2023, FuM were US$9.6bn. This compares with US$9.4bn at the Group's year end on 30 June 2023. Relative investment performance of the Group's strategies was mainly positive over the period, with OV and Fixed Income strategies outperforming, International Equity neutral and EM slightly negative. The Group estimates the unaudited profit before amortisation and taxation for the six months ended 31 December 2023 to be approximately US$13.9m (six months ended 31 December 2022: US$13.8m, restated in USD based on average exchange rate).

The Board declares an interim dividend of 11p per share, which will be paid on 28 March 2024 to shareholders registered at the close of business on 1 March 2024 (2022: 11 pence).

[montyhedge] 09/1/2024 10:30

I have no position, sold out 426p, but always have a look now and then, it's a good dividend payer though, I think these will be taken over at some point.

[dudishes] 09/1/2024 08:16

Good to see it turning a corner?

During the final quarter of 2023, I closed all positions (long/short).

Of 14 positions, various sections/outfits, I had 13 wins.

My only loss was yes, you guessed it, CLIG to the tune of £3K3.

Follow your research not BB noise.

ie WIX (some controversy), but who that uses Wicks cares?

In and out, shake it all about! Closed long for £75024.

There's more! VSVS, another quiet one. In/out +£29516.

I'm a spread better not a divi chaser and in that vein, I believe long termers here

have faired well, good luck to them.

I hope CLIG has turned a corner, not followed.

Good luck.

cheers

[brucie5] 03/1/2024 14:08

Looks like a large basing pattern. And happy to see that Maynard is a fan. I hold.

[mister md] 03/1/2024 12:32

Finally seems to be breaking out of 300-320 range ... ?

[2wild] 17/11/2023 12:46

Ticking up nicely now. Hopefully we'll get A Santa rally.

[montyhedge] 01/11/2023 15:51

Yes plenty of cash, at least getting a good rate on their cash.

[2wild] 27/10/2023 09:03

Sold out here at 401p a few days before going Ex dividend. Back in today at 303.5p, yield of 10.87%.

Although Div cover is low, they have little to no debt, so should be secure.

[mister md] 23/10/2023 07:59

Shareprice in free-fall. Added a few more at 308p this morning but not sure how much further it could drop ? Re: the dividend / dividend cover, from RNS:

"... your Board believes that the use of a dividend cover policy based on rolling five-year periods provides a prudent template that serves to protect shareholders from the market volatility that can affect profits of asset management companies. The beneficial effects of this policy are illustrated clearly in the year to 30th June 2023 when underlying fully diluted EPS have fallen by 18%. On the basis of unchanged dividend payments totalling 33p for the year as a whole, the cover ratio for the single year is 1.09, whereas the rolling five-year cover ratio, at 1.24, will remain marginally ahead of the 1.2 target level. Accordingly, your Board is recommending the payment of a final dividend of 22p per share, to be paid on 27th October 2023 to those shareholders on the register at 29th September 2023. This brings total distributions for the year to 33p, the same level as the previous year, excluding the 13.5p special dividend paid in March 2022."

[melton john] 19/10/2023 11:17

Money where mouth is, a few more this morning.

[melton john] 18/10/2023 22:38

You haven't a clue have you?