City Of London Investment Share Discussion Threads

[rcturner2] 08/4/2015 07:46

Yep, good quarterly performance FUM +5%.

[envirovision] 08/4/2015 07:16

A rather robust performance with a screaming rider at the end about what a stonking dividend this company likes to be committed to.

[skinny] 08/4/2015 07:05

QUARTERLY FUNDS UNDER MANAGEMENT ("FUM") UPDATE

City of London (LSE: CLIG), a leading emerging markets asset management group, provides an Interim Management Statement for the period 1 January 2015 to 31 March 2015.
Funds under Management
As at 31 March 2015 FuM were US$4.2 billion (£2.8 billion). This compares with US$4.0 billion (£2.6 billion) at 31 December 2014.
FuM rose 5% over the quarter, while the MSCI Emerging Markets TR Index (NDUEEGF) rose 2.2% over the same period.
Operations

The Group's income accrues at a weighted average rate of approximately 85 basis points, net of commissions and custody charges. "Fixed" costs are in line with budget at £0.8 million per month, and accordingly the current run-rate for operating profit, before profit-share at 30%, is approximately £1.2 million per month based upon current FuM and a US$/£ exchange rate of US$1.48 to £1.

Dividends

The interim dividend of 8 pence per share was paid on 6 March 2015, signalling the board's current intention to recommend a final dividend of not less than 16 pence, subject to no marked deterioration in our markets and our continuing current profitability.


-ends-

[masurenguy] 05/4/2015 13:53

You'll be in very good company since Mark Slater has also increased his Funds stake in CLIG by 29% over the past 15 weeks, adding circa 200,000 since mid-December. He now holds 3.4%

[littleminx247] 05/4/2015 12:12

Would like to pop some in my sip this week.

[cockerhoop] 24/3/2015 21:02

The plan announced was to sell 500,000 at £3.50, 500,000 at £4 and 500,000 at £4.50.

[s0lis] 24/3/2015 20:58

Barry sold 250K @3.50 on the 18th Feb. Is he going to sell another 250K ?

[envirovision] 24/3/2015 11:25

Once snapped up a break out should ensue imo

[masurenguy] 23/3/2015 11:27

The Offer is now just a fraction below 350p. Barry Olliff is still scheduled to sell another 250,000 @350p so he could be back in action again quite soon !

[cockerhoop] 12/3/2015 08:32

Typo corrected :-)

[cockerhoop] 12/3/2015 08:22

FUM approx £4.15bn at the end of Feb 2015. Up about £150m.

[masurenguy] 12/3/2015 08:17

Barry Olliff has been reducing his stake in the company over the past 5 years in the run up to his planned retirement in 2017. He has always announced his intended schedule well in advance both in volume and at the crossing of various price thresholds.

There is absolutely no evidence to substantiate the assertion that his recent disposal of 250,000 @350p "spooked some investors". Just another in a long series of idiotic posts on this thread from this poster !

"I would like to restate my intention regarding potential future sales of shares in the Company. I founded CLIG as an asset management business in 1991 and from the outset, I have always sought to align my interests with those of the Group's shareholders, both before and subsequent to the public listing in 2006. The consequence of this is that, as the largest shareholder and the Chief Executive of CLIG, a significant proportion of my personal resources remain invested in the Company and I believe it is appropriate and prudent, for both the Company and me personally, that I should gradually reduce my holding. Accordingly, I propose selling 500,000 at £3.50; 500,000 at £4.00 and 500,000 at £4.50." Barry Olliff - 2014 Final Results 15th September - RNS6051R

"Having announced his intention to sell shares at given price levels, Barry Olliff has since the start of 2010 sold 500,000 shares at 310p, 500,000 at 350p and 500,000 at 400p. In December 2010 he gifted 500,000 shares to The Newlin Foundation, which subsequently sold 27,793 of those shares. It is now intended that a further 472,207 shares will be made available for sale at 450p, and then 500,000 at 500p, with these sales being satisfied out of the combined holdings of Mr Olliff and the Newlin Foundation." RNS Number : 5197F. 18 June 2012

[bullsvbears] 11/3/2015 18:24

The intention so to do had been flagged up well in advance.

[montyhedge] 09/3/2015 16:36

Its a shame Barry sold a few shares, spooked some investors.

[rcturner2] 02/3/2015 21:03

Cheers M, a much better answer than mine. An average of 1.2 times cover effectively means about 83% of earnings will be returned as a dividend.

[dgwinterbottom] 02/3/2015 17:23

Many thanks once again - your prompt response is much appreciated.

[masurenguy] 02/3/2015 17:06

"It the earnings rise so will the dividend. If earnings fall they will lower the dividend accordingly."

That has not been the case over the past 2 years. The BoD maintained the dividend @24p despite the eps declining from 32.8p in 2012 to 24.6p & 20.6p respectively over the past 2 years. In doing so, they waived their prior policy of basing the dividend cover on 1.5 x earnings. They were able to do this as they have a strong balance sheet with cash reserves of circa £10m, no pension scheme deficits and confidence in both the future recovery of their EM market sector and their own investment strategy.

Going forward they recently stated their revised dividend policy as follows: "It is recognised by your Board that for many of our shareholders a strong and consistent dividend is particularly important. For this reason we have endeavoured over the recent more difficult years to at least maintain the dividend, whilst ensuring that our finances have remained sound. In view of the improvement in profitability, your Board has no difficulty at this time in paying a maintained 8p interim dividend on 6th March 2015 to shareholders on the register on 20th February 2015. It remains your Board's policy that over a rolling five year period the intention is to achieve an average dividend cover of circa 1.2 times."
Interim Results Statement 11/02/2015.

[rcturner2] 02/3/2015 15:52

DGW, this business is one where essentially they return most of the profit as a dividend, so cover doesn't come into it. It the earnings rise so will the dividend. If earnings fall they will lower the dividend accordingly. Quite a few "finance" businesses operate this way, they have a stated policy of returning 80% (or whatever) of earnings as a dividend.

[dgwinterbottom] 02/3/2015 15:39

Many thanks for that, taking things a stage further would the dividend cover be comfortable to ensure the dividend is safe?

[aleman] 02/3/2015 10:53

Or 8.55% @ 345p for next year according to N+1 Singer.

N+1 Singer 12/02/15 BUY 9.74 27.40 24.00 12.69 35.50 29.50
Canaccord Genuity Ltd 11/02/15 BUY 8.70 25.20 24.0 11.20 32.00 24.00
Hardman & Co 11/02/15 None 9.06 26.50 24.00 11.38 33.30 24.0

[skinny] 02/3/2015 10:28

6.85% @350p

[dgwinterbottom] 02/3/2015 10:25

Would be most grateful if anyone could confirm the dividend yield please?

Thanks