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CLIG City Of London Investment Group Plc

316.00
0.00 (0.00%)
Last Updated: 08:43:50
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
City Of London Investment Group Plc LSE:CLIG London Ordinary Share GB00B104RS51 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 316.00 307.00 325.00 - 7,390 08:43:50
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Finance Services 58.48M 14.74M 0.2908 10.87 160.15M
City Of London Investment Group Plc is listed in the Finance Services sector of the London Stock Exchange with ticker CLIG. The last closing price for City Of London Investment was 316p. Over the last year, City Of London Investment shares have traded in a share price range of 300.00p to 462.00p.

City Of London Investment currently has 50,679,095 shares in issue. The market capitalisation of City Of London Investment is £160.15 million. City Of London Investment has a price to earnings ratio (PE ratio) of 10.87.

City Of London Investment Share Discussion Threads

Showing 1676 to 1699 of 3400 messages
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DateSubjectAuthorDiscuss
17/9/2015
07:55
M - CLIG's declared dividend policy is based on an average dividend cover over a specific cycle (I know you know this). I do not think that the current dividend going forward will have the required cover and so will need to be cut.
rcturner2
17/9/2015
07:50
Barry Olliff stated that he is selling a further 1m shares (500,000 at £4, 500,000 at £4.50) not 1.5m as stated by the article.
cockerhoop
17/9/2015
07:38
RCTurner2 - everyone has to make their own judgement call on any investment but I'm not quite sure why you think that the current dividend is "not sustainable" since CLIG has plenty of cash on their balance sheet. CLIG has also outperformed their MSCI benchmark index over the past year.

CLIG maintained a dividend of 24p in the year ending June 2014, despite the eps having fallen to 20.6p in that year and at a time when the dividend cover was 1.5 x eps. They have subsequently announced a further reduction in this cover. If FUM and/or profits were to slip back again, due to a further downturn in emerging markets, I think that one could be reasonably optimistic that they would continue to subsidise the dividend out of reserves, unless there was a really significant decline with perhaps the eps falling below 20p.

masurenguy
17/9/2015
07:28
I'm not quite sure how Canaccord Genuity get to EPS of 32p for the current FY. It would require a significant uplift in FUM or appreciation of the USD from the current respective positions of $3.5bn FUM and $/£ of 1.55.
cockerhoop
17/9/2015
07:23
I am happy with my decision to sell. I think the outlook for EM right now is very suspect and the specific of CLIG make me think that the current dividend is not sustainable.
rcturner2
17/9/2015
07:18
Update in the Investors Chronicle last Monday.

City of London shrugs off bears

TIP UPDATE: City of London Investment Group PLC (CLIG)
INCOME - MEDIUM RISK

Our previous tip
WE SAID: Buy
WHEN: 11 August 2015
PRICE: 359p
TIP PERFORMANCE TO DATE: -5%

"Every time there is a swing in emerging markets, we in the West tend to exaggerate the difference," says City of London Investment Group (CLIG) chief executive Barry Olliff, referring to concerns surrounding a slowdown in Chinese growth. Since the asset manager has neither lost nor gained any clients since the end of its financial year in June, Mr Olliff has some reason to be confident.

Funds under management, which stood at $4.2bn (£2.7bn) on 30 June 2015, have averaged $3.8bn in the new financial year so far. But given the long-term approach of the investors in City's closed-end fund strategies - particularly coupled with the fund manager's consistent track record of benchmark outperformance - a decline in the value of client assets shouldn't alarm shareholders too much.

Of greater concern is the imminent departure of board member Carlos Yuste, who manages many of the firm's US clients. City is dividing up his responsibilities internally rather than seeking a replacement. Mr Olliff also plans to step down - albeit not until 2020 - and used the results to announce his sale of a further 1.5m shares priced between 400p and 450p.

Analysts at Canaccord Genuity are forecasting adjusted pre-tax profits of £10.7m and EPS of 32p for the 2015-16 financial year, up from £8.8m and 25.7p for FY2015.

During a period when the MSCI Emerging Markets Index fell 5 per cent, City increased net funds by 8 per cent. That ability to attract money in tough times is vindication of a strategy from which revenues, cash and stronger dividend cover should flow. Buy.

masurenguy
16/9/2015
08:10
They have been holding up remarkably well to say the least. Spread seems worse than ever though. £3.41 to buy versus £3.26 to sell in any modest amount.
my retirement fund
16/9/2015
08:03
In their post year end results update on September 14th, Cannacord Genuity made a few small alterations to their forecasts:

* Adjusted PBT reduced for FY16 by 1.5% and for FY17 by 1.6%
* Diluted EPS reduced for FY16 by 3.4% and for FY17 by 5.4% to reflect the
increased free float as the CEO continues to sell shares as already indicated.
* No change to Dividend per Share forecasts

These minor changes reflect a more conservative view by CLIG's management on market conditions, given the current problems in Russia, China & Brazil. However, they remain positive about the company's prospects for FuM growth both via investment performance and by winning new business.

Following the pre-close statement on 14th July, they had increased their target price to 400p, based upon a 6.0% dividend yield and the projected full year 2016 PER of 12.5. With CLIG shares trading at 340p on 14th September, the potential yield on the final 16p DPS is 4.7% and they see prospects for a 7.1% dividend yield for FY ending 2016. This yield, together with the projected overall shareholder return of 24.7%, resulted in them retaining their existing BUY investment recommendation with a target shareprice of 400p.

masurenguy
14/9/2015
07:47
Canaccord Genuity Buy 335.00 369.00 400.00 Retains
skinny
14/9/2015
06:31
It is also worth highlighting the strength of their balance sheet.

The Group's financial position remains strong with no borrowings and net assets of £13.7m (2014: £13.9m), excluding the non-controlling interest, the major part of that being cash of £10.2m (2014: £10.2m). Net cash generated from operating activities was £7.0m (2014: £3.7m), illustrating that there are relatively few significant timing differences that would cause cash flow to deviate materially from profits. As noted earlier, the Group spent £6.0m (2014: £6.0m) on dividend payments and a net £1.0m (2014: nil) on share transactions. The Group operates defined contribution pension schemes covering the majority of its employees. The costs of the pension schemes are charged to the income statement as incurred. Any amounts unpaid at the end of the period are reflected in other creditors.

Also worth noting that Barry Olliff has reconfirmed his own target share disposal prices in the run up to his projected retirement in 5 years time.

"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, close to all of my investible wealth remains in CLIG shares and I believe it is appropriate and prudent, for both the Company and me personally, that I gradually reduce my holding prior to my retirement in 2020. Accordingly, I propose: Selling 500,000 at £4.00 and 500,000 at £4.50. These intentions are the same as were communicated to shareholders, and specifically subsequent to my previous sale of 500,000 shares at £3.50 earlier this year."

masurenguy
14/9/2015
06:11
SUMMARY

•Funds under management (FuM) at 30th June 2015 were US$4.2 billion (2014: US$3.9 billion), an increase of 8%. In sterling terms, FuM increased by 17% to £2.7 billion (2014: £2.3 billion) as a result of the cross rate moving from1.71 to 1.57 over the period. The MSCI Emerging Markets TR Net Index fell 5% over the same period.

•Revenues, representing the Group's management charges on FuM, were £25.4 million (2014: £24.2 million). Profit before tax was £8.9 million (2014: £7.4 million).

•Basic earnings per share were 26.4p (2014: 21.1p) after a tax charge of 26% (2014: 28%) of pre-tax profits.

•A maintained final dividend of 16p per share is recommended, payable on 30th October 2015 to shareholders on the register on 9th October 2015, making a total for the year of 24p (2014: 24p).

•Opened new office in Seattle, May 2015.

skinny
08/9/2015
08:48
8th October
cockerhoop
08/9/2015
08:48
8 Oct 2015
brancho
08/9/2015
08:44
When's the ex div date , anyone know , thanks
casino444
04/9/2015
09:30
Maynard,

I reckon it's at $3.6bn down from $3.95bn at the end of July. Since it's recent peak ($4.4bn at end of April) FUM are down approx 18% compared to about 24% in it's benchmark index. Agree that with no recovery in Emerging Markets (or significant new investment mandates) EPS will struggle to meet current forecasts.

cockerhoop
04/9/2015
07:37
hxxp://citlon.co.uk/shareholders/announcements.php

end of Aug FUM down to $3.6 or $3.5bn.

using the FUM/profit table in annual report, I reckon such FUM translates into an EPS run-rate of about 20p were there to be no recovery.

tmfmayn
02/9/2015
08:01
Looks interesting but the spread has put me off. 23p spread does away with one of my reasons for buying the stock , the 16p divi at the end of next month. Good reason to hold though if you are already in.
R2

robsy2
31/8/2015
08:57
Fund managers eye emerging markets after crash

Fund managers see value in emerging markets as beaten-up currencies throw up 'once in a decade' opportunity after Black Monday.

Fund managers are seeing increasing signs of value in embattled emerging markets, which were hit hard in the Black Monday stock market crash. Many emerging markets mounted a strong recovery from last Monday's tumble, with the MSCI Emerging Markets index up 2% over the week to Thursday.

While emerging markets stand to be worst affected by China's slowing economic growth and stock market volatility, they rallied strongly after the world's second largest economy cut interest rates and on hints that the US Federal Reserve may delay an interest rate hike expected next month. John Chatfeild-Roberts, manager of Jupiter's Merlin range of fund-of-funds, said that value was 'now starting to appear' in the developing world. He currently holds only a minimal exposure to emerging markets in his funds. ‘Once the dust has settled, the main impact for investors will be on holdings in emerging markets, where value seems to be now starting to appear, and commodities,’ he said. ‘Overall, the bull market in shares is getting long in the tooth but quantitative easing is still a major factor for markets in Europe, the US and Japan and will remain so while concerns at central banks about the debt burden remain. Policy makers are also likely to defer planned rises in interest rates.’

Michael Hasenstab, who runs a range of bond funds for Franklin Templeton, argued that the downturn in global markets that culminated in Black Monday's crash had presented 'once in a decade' opportunities in beaten-up emerging market currencies. ‘The new opportunity that has come about over, really, the past month is one of those once a decade opportunities where you’ve seen in places like the Mexican peso, the Malaysian ringgit, the Korean won, the Indonesian rupiah, the Brazilian real, a number of key emerging markets currencies have tested at all-time lows,’ he said. ‘In Asia, many of the currencies are approaching or are at the levels that we didn’t see since the Asian financial crisis, when Asia was the source of the crisis. Today fundamentals are very different than they were back in the late ’90s that caused that crisis,' he added. ‘In fact, most countries have significantly higher reserves from large current account surpluses, growth is on much stronger footing than it was back in that period where there was an investment bubble, and huge macro imbalances that led to a collapse. We’re seeing tremendous value in that region.'

Despite some near-term growth stumbles, Asia’s prospective growth rates are still three times that of developed economies: 6% versus 2%, according to Goldman Sachs estimates,' he said. ‘When Asia has traded in the valuation range of 0.9 to 1.4 times book value (current level is 1.3 times book value, Citigroup data shows), then the probability of a positive return on a 12-month and 36-month view is greater than 80%.’

masurenguy
28/8/2015
12:22
Yes, I thought the letter was very good. Straight forward, no nonsense + to the point.
speedsgh
28/8/2015
11:57
No holds barred!
skinny
28/8/2015
11:33
Seems like CLIG aren't very happy with the way one of the investment companies that have invested in is being run...

Text of letter to icapital.biz Berhad -

speedsgh
25/8/2015
15:51
Hi Mayn, I would assume that the 5 year average starts from the beginning of the last fiscal year which commenced in July 2014. However they have demonstrated considerable flexibility in the past when they maintained an unchanged dividend when the cover was based upon 1.5 x eps and have already indicated a continuation of this by maintaining it at 16p (FY 24p) for the year just ended when it would have been 14p (22p) if the 1.1 x cover had been strictly applied.
masurenguy
25/8/2015
13:57
I closed all of my other shorts yesterday but left this one running. I expect FUM to come under continued pressure in this much more risk averse environment.

With regard to TMFMayn's question, I would have thought the 1.2 would be applied to five years on a prospective basis, i.e. the current year would always be the first year.

effortless cool
25/8/2015
11:00
Hi masurenguy,

"They have subsequently announced a further reduction in this cover in last months year end trading update "the Board's dividend policy is based around a cover of 1.2 times earnings on a rolling five year average."

Throwing this out for discussion. The 5-year average, does it start from when the policy was declared (i.e. 2014 onwards)... or does it start further back?

You see, div cover for last 3 years has been 1.1, 0.9 and 1.0, and if we get say 1.0 for 2016, we need div cover of 2.0 for 2017 to get to an 1.2 average. Div cover of 2.0 of course requires big EPS jump or div cut.

Anyway, I assume (or hope!) the 5-year average starts from when the policy was declared last year and as you say, there is leeway with the cash reserves. EPS should improve anyway with the marketing costs running off.

Even so, if FUM stays at $4bn, 5-year cover may become tight. Cover was 1.0 in 2015, and say 1.0 for 2016 -- we still need 1.33 cover (i.e. 32p EPS) for 2017, 2018 and 2019 for a 1.2 average.

tmfmayn
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