City Of London Investment Share Discussion Threads

[masurenguy] 28/9/2017 10:27

Absolutely correct. The XD date is October 13 and the payment date is October 31.

[my retirement fund] 28/9/2017 10:24

450 ? When is dividend date?

[montyhedge] 28/9/2017 10:17

Still not ex div yet, nice 17p coming.

[montyhedge] 26/9/2017 16:23

Should settle around 450p.

[my retirement fund] 26/9/2017 16:01

Good to see some buying momentum

[nobbyx] 25/9/2017 15:11

The Chronic Investor says 'buy'. Hmm. Isn't it conventional wisdom that the prudent investor reads this journal in order to do the exact opposite to whatever it is they advise..

[my retirement fund] 24/9/2017 12:00

IC rate as a buy stating its excellent income at 6.3% yield.Where else can you get that?

[montyhedge] 23/9/2017 14:24

Great article Investors Chronicle said BUY.

[montyhedge] 23/9/2017 14:23

Great article in Investors Chonicle said BUY.

[my retirement fund] 22/9/2017 14:48

Looking perky

[montyhedge] 21/9/2017 09:49

Nice 17p divi on the way and tax free in the ISA.

[topvest] 18/9/2017 20:01

Yes, nice quality business here. Happy to hold. Good day for Impax and CLIG!

[masurenguy] 18/9/2017 12:38

Why this 6% yielder is on my buy list for September

"City of London Investment Group (LSE: CLIG) is an asset management group which invests at least 90% of its funds in emerging markets. The group’s pre-tax profit rose by 45% to £11.6m last year, while after-tax earnings rose by 58% to 36.9p per share. However, shareholders shouldn’t get too excited by these dramatic figures. Last year’s results were given a big boost by the pound’s fall against the US dollar, and by a reduction in the group’s tax rate. Neither of these factors is likely to repeat this year, in my opinion. So does the group’s underlying performance justify further gains?

A cash-backed 6.2% yield

City of London’s funds under management rose by 17% to $4.7bn last year. Although that’s less than the 24% gain logged by the group’s benchmark index over the same period, management says that this is a result of clients taking profits on their emerging market funds and shifting some money elsewhere.

What’s certainly true is that the group’s cash generation continued to be very strong. Net cash rose from £10.2m to £13.9m last year, meaning that 13% of the group’s £106m market cap is now covered by net cash. Cash reserves are now high enough to pay two years’ dividends at the current level of 25p per share. So the company should be able to pay a stable income through lean years as well as good years, providing more reliable returns to shareholders.

After today’s results, City of London Investment Group shares trade on a P/E of 11 with a dividend yield of 6.2%. In my view this continues to represent good value for investors looking for a long-term income. I’d be happy to buy at current levels."

[westcountryboy] 18/9/2017 11:09

Another mouthwatering performance in terms of cashflow. Divi v safe and is surely set to increase, as you say.

[stun12] 18/9/2017 08:34

Indeed. The 5-year rolling calculation based on dividend cover of 1.2x (currently 1.46x) should both bolster reserves and ensure further increases in the divi. Would take the divi to just over 30p on constant earnings.

[masurenguy] 18/9/2017 07:23

Stellar set of results with dividend yield on the current offer price of 6.25%, which is still a very attractive proposition for new investors. Longer term investors will be looking at a yield that is approaching 9% on their original investment. CLIG has previously maintained the dividend during some past leaner years by subsidizing it out of reserves and the increased profits are now providing the opportunity to rebuild them.

[skinny] 18/9/2017 07:11

SUMMARY

· Funds under management (FuM) at 30th June 2017 were US$4.7 billion (2016: US$4.0 billion), an increase of 17%. In sterling terms, FuM increased by 20% to £3.6 billion (2016: £3.0 billion). The MSCI Emerging Markets TR Net Index rose 24% in US$ terms over the same period.

· Revenues, representing the Group's management charges on FuM, were £31.3 million (2016: £24.4 million). Profit before tax was £11.6 million (2016: £8.0 million).

· Basic earnings per share were 36.9p (2016: 23.3p) after a tax charge of 21% (2016: 27%) of pre-tax profits.

· An increased final dividend of 17p per share is recommended, payable on 31st October 2017 to shareholders on the register on 13th October 2017, making a total for the year of 25p (2016: 24p)

[cockerhoop] 06/9/2017 10:23

FUM up to $4.9bn

[masurenguy] 28/8/2017 11:19

Big gains attract new money to emerging markets, but should investors stay?
An estimated $6.7 billion has flowed into emerging-market stock funds and ETFs so far this year, according to Morningstar

"The MSCI Emerging Markets Index has lost 0.5% a year the past 10 years in U.S. dollar terms, versus 7.2% average annual gains for the Standard & Poor's 500 stock index. The global financial crisis gave emerging markets a big shove downhill. The so-called "taper tantrum" in 2013 — a spike in Treasury yields spurred by fears of the end of the Federal Reserve's quantitative easing program — kicked them down again, as did later worries about China's economic slowdown. The result: very cheap valuations in emerging-markets stocks.

That trifecta of valuations, momentum and liquidity has convinced many respected firms, such as Research Affiliates and GMO, to enthusiastically endorse emerging markets for long-term investors. GMO, for example, projects that emerging markets will rise at a real rate of 2.9% a year the next seven years, the highest of the 11 asset classes in tracks. Research Affiliates puts the 10-year real growth rate at 6.8% annually for the next 10 years.

"There's no way you'd want to underplay the risk in emerging markets," said Research Affiliates' Mr. Brightman. "Without question, it's one of the riskiest things you can invest in." A decline in U.S. stocks, for example, would certainly drag emerging markets down. So would a sharp rise in interest rates, which the emerging markets' reaction to the taper tantrum proved. And a trade war with the United States could also put the kibosh on investors' enthusiasm for emerging markets.

For advisers, the best defenses are honesty about the volatile nature of emerging-markets stocks, and a commitment to rebalancing periodically to keep risk in check. If you're going to put an investor in, say, Vanguard Emerging Markets Index, you should mention that the fund's maximum drawdown from peak to trough in the past three years has been a 29.7% loss, according to Morningstar. Keeping emerging markets part of an overall asset allocation is important as well — which means selling when the funds have done better than expected, and even harder, buying when they plunge. Should you do it today? "This is a wonderful time to diversify," said Mr. Brightman. "Many leading endowments now allocate equally between the U.S., developed markets and emerging markets. It's time to move towards that equity allocation."

Complete article here:

[vfast] 24/8/2017 15:20

Emerging Markets are having a good time so hope all bodes well for CLIG.

[stun12] 03/8/2017 15:06

Cable is doing pretty well, so probs mostly FX. Damn good show anyway though.

[cockerhoop] 03/8/2017 13:54

FUM up to $4.8bn

[vfast] 25/7/2017 19:43

Very interesting article Dave.

Positive news for CLIG!

[cockerhoop] 25/7/2017 15:13

Good article Dave, any action that closes the discounts on the IT's will increase FUM which everyone welcomes. I didn't realise how large a % CLIG holds in some Emerging Market trusts.

As an aside the underlying index has done well so far in July.