City Of London Investment Share Discussion Threads

[tmfmayn] 19/8/2015 16:24

Specuvestor - July FUM on citlon.com was $4bn, down from $4.2bn at June. So yes, a bit odd the share price has held up I suppose. The tip in the Chronic last week may have lent support. Plus divi remains attractive, if just about covered if FUM stays at $4bn.

[specuvestor] 19/8/2015 15:57

I am a long term holder but don't understand why the share price is not being impacted by the emerging markets rout. For example, other emerging market funds such as Charlemagne Capital & J P Morgan Emerging markets have taken a pounding.

Any opinions?

[my retirement fund] 14/8/2015 17:40

Still stupidly cheap though, despite the small rise on the day.

[skinny] 14/8/2015 16:19

Well that's a 3+ year high @370p.

[masurenguy] 14/8/2015 13:32

Thanks for the heads up on that penpoint. It most probably explains the rash of small buys today - at an average of 650 shares costing around £2400 - and why the spread has also widened to almost 20p.

[penpont] 14/8/2015 12:49

One of the main buy tips in the IC today.

[my retirement fund] 10/8/2015 11:32

£3.70 paid today

[my retirement fund] 03/8/2015 13:02

£3.65 on the offer today. The time for topping up around the present levels must surely be running out.

[aishah] 19/7/2015 15:40

City Of London Investment: 7% Income Confirmed In Double-Quick Time


Yield of over 10% for some of us who bought in the 200s a while back :-)

[masurenguy] 16/7/2015 19:35

Mark Slater really likes CLIG and also highly rates the management team.

[my retirement fund] 16/7/2015 16:36

Cancord and Singer both sharing a £4.00 price target. That would certainly be silly if the forward DPS target was 29.5p

[masurenguy] 16/7/2015 16:33

Canaccord have raised their 12 month target shareprice from 369p to 400p while N+1 Singer have reiterated their 12 month target of 394p.

[aleman] 16/7/2015 16:29

Interesting divergence in dividend forecasts. For 2015-2017, you can have 24,24,25 or 24,24,25 from Hardman and Canaccord - or it's just possible you might prefer the 24,29.5,33.7 from N+1 Singer!

[cockerhoop] 16/7/2015 16:16

Also new notes from N+1 Singer and Canaccord on the CLIG website.

[masurenguy] 16/7/2015 15:30

Hardman & Co issues research report on City of London Investment Group

Leaving dividend concerns behind: The trading update gives a solid set of figures for the full year despite difficult market conditions in Q4. Profit after tax came in at £6.5m and, as expected, an unchanged full year dividend of 24p is once again covered by earnings. Emerging equity markets have been weak since the last update in April, but a combination of new business and good performance has kept funds under management at $4.2bn with mixed news on new business. On the key issue of the dividend earnings have covered the rate each quarter this year and the full year cover was 1.1 times.

Full report:

[asmodeus] 16/7/2015 09:57

I do. That's how I realised my holding had reached about 15% !

[asmodeus] 16/7/2015 08:42

So am I. Is this wise, I keep wondering?

[my retirement fund] 15/7/2015 22:49

I'm probably about 15% invested here

[scottishfield] 15/7/2015 16:54

topped up today, but hate (the process of) buying this one, so hard to predict the spread etc. anyway got a few more.

[my retirement fund] 15/7/2015 09:31

Still able to buy for silly money. How long before the market wakes up?

[masurenguy] 15/7/2015 09:21

For the very first time in 5 years there is now a real potential prospect of an increase in the dividend next year, based upon future AUM growth and the recently adopted revised cover of 1.2 x eps.

[aishah] 15/7/2015 08:55

Yield of over 7% :-)

[asmodeus] 15/7/2015 08:13

I have doubled up my ISA holding.

[masurenguy] 15/7/2015 08:10

Excellent performance especially when compared with the benchmark MSCI. As expected, the dividend is being maintained. The key metrics from the year end trading update are as follows:

Funds under management were US$4.2bn (£2.7bn) at 30 June 2015 (2014: US$3.9bn or £2.3bn), representing an 8% increase in US$ terms and a 17% increase in GBP terms as a result of the cross rate moving from 1.71 to 1.57 over the period. Over the same period the MSCI Emerging Markets Index (MXEF) fell by 5% in US$ terms.

For the year to 30 June 2015, City of London expects that pre-tax profits will be approximately £8.8mn (2014: £7.2m, 13 months), and that profits after an anticipated tax charge of £2.3m (26% of pre-tax profits) will be approximately £6.5mn (2014: profits of £5.2m after a tax charge of £2.0m, representing 28% of pre-tax profit). Basic and fully diluted earnings per share are expected to be 26.1p and 25.7p respectively (2014: 20.7p and 20.6p).

The Board is recommending a final dividend of 16p per share (2014: 16p). This would bring the total for the year to 30 June 2015 to 24p (2014: 24p), making cover 1.1 times earnings per share (2014: 0.86 times). As previously announced the Board's dividend policy is based around a cover of 1.2 times earnings on a rolling five year average. The proposed dividend is in-line with this policy. The overheads for the year to 30 June 2015 are expected to be £9.4mn (2014: £10.3m, 13 months) and the current monthly run-rate is slightly in excess of £0.8m.

Pretax is up by 32% on a LFL basis as last year was based upon 13 months trading