City Of London Investment Share Discussion Threads

[my retirement fund] 19/2/2018 11:18

Can only put this astonishing underperformance down to brexit

[my retirement fund] 19/2/2018 11:14

Very mute reaction to shareprice. This really ought to be above £5 now and more like £5.50 imo

[my retirement fund] 19/2/2018 09:18

If the press pick this up it could easily be a tipped.

[masurenguy] 19/2/2018 08:41

Historically the interim dividend has been a third of the annual dividend so the increase to 9p presages an annual dividend of 27p for the current year. That would constitute an increase of 12.5% in the annual dividend, which at todays current actual buying price of 424p constitutes a yield of 6.4% for any new investor coming on board.

[montyhedge] 19/2/2018 08:02

Wow, better than my forecast, dividend up, superb.

[rogerbridge] 19/2/2018 07:49

Very nice increase in the dividend and a positive report.

[my retirement fund] 19/2/2018 07:46

Excellent progress and feeding down ti the dividend.

[skinny] 19/2/2018 07:22

SUMMARY

• Funds under Management ("FuM") of US$5.3 billion (£3.9 billion) at 31st December 2017. This compares with US$4.7 billion (£3.6 billion) at the beginning of this financial year on 1st July 2017 and US$4.1 billion (£3.3 billion) at 31st December 2016

• FuM at 31st January 2018 of US$5.8 billion (£4.1 billion)

• Revenues representing the Group's management fees on FuM were £17.1 million (31st December 2016: £15.4 million)

• Profit before tax of £6.6 million (31st December 2016: £5.8 million)

• Increased interim dividend of 9p per share (31st December 2016: 8p) payable on 16th March 2018 to shareholders on the register on 2nd March 2018

• Cash and cash equivalents at the period end of £15.6 million (31st December 2016: £10.5 million)



For access to the full interim report, please follow the link below:

[topvest] 10/2/2018 12:51

Thanks - interesting. Suspect the US$ rate has been going against them in recent months, but still a long term hold for me. Really like the way they do business.

[robsy2] 10/2/2018 12:30

Thanks for taking the trouble masurenguy, very helpful.
Like you say, Good progress, bodes well.
Best
R2

[masurenguy] 10/2/2018 10:55

The FUM at the end of January was $5.78bn, an increase of 8.3% over December. This also represents a 6 year high for FUM and is just below its all time high in May 2011 of $5.82bn. If this trend continues during the second half it should positively feed through to both the bottom line and subsequent yield.

[skinny] 18/1/2018 10:21

Slightly topical -

[stun12] 17/1/2018 16:51

Not too sure about the favourable FX moves. These may have helped in the early part of last year, but the pound has been steadily rising against the dollar since last March - about 14% from the low point.

The growth - albeit from a low level - of the other funds is heartening. As you say, the EM fund is approaching capacity. Dividend cover looks great though, so even if there isn't too much in the way of capital appreciation, it beats leaving it in the building society.

[tmfmayn] 17/1/2018 15:28

MRF

"Also how on earth can this be yielding 6.4% ?"

A fair question to ask.

If you look in the 2017 annual report, on page 18 there is a chart titled 'Total in flows - outflows'.

The yellow boxes show the amount of client money added/lost during each financial year. You will see that the yellow boxes are quite small, and suggest CLIG has difficulty winning new mandates.

The market I guess has applied a low valuation to CLIG because of the lack of fresh mandate wins. It is not clear how CLIG will ever win significant new mandates. CLIG management has said there is a 'capacity' to its Emerging Market FUM of c$5bn, and so growth beyond that will involve the group's other strategies, which represent only 13% of total FUM.

Recent profit/FUM growth has been based almost entirely on favourable FX and market movements. And yet the staff now take a greater share of earnings through the EIP.

It will take notable FUM wins before the share price enjoys a re-rating. In the meantime, shareholders receive the chunky dividend and wonder what happens when Barry retires.

[masurenguy] 17/1/2018 13:20

2015 "Yes I know I was buying bucket loads of them on a 10+ yeild! We were still not out of the woods fully in 2012 having just seen Fukishima and Europe's second lurch into the abis. I know this company well."

Really - I set up this thread nearly 8 years ago and strangely you only first appeared here in May 2015.

[my retirement fund] 17/1/2018 12:08

Yes I know I was buying bucket loads of them on a 10+ yeild! We were still not out of the woods fully in 2012 having just seen Fukishima and Europe's second lurch into the abis.I know this company well. Since then the US has doubled along with Japan and several other developed nations.I just dont get how you think this should not now be sensibly valued. Either something is wrong or you know something I do not.

[masurenguy] 17/1/2018 11:15

You should research the company properly, understand its business model and look at is performance and progress over the past 7 years before coming to any such unqualified conclusions. There is plenty of historical information on this thread and their annual reports can be viewed on their website (link in the header). The current projected yield of 6.4% (based on a projected 28p) would be the lowest yield on this share for the past 5 years. There is absolutely nothing "wrong" here !

In 2012 and 2013 the yield was circa 9.5%/10.0% and in 2014 - 2016 it was around 7%/7.5%. The company has a clearly stated dividend formula which it has overruled in the past when FUM and profits were lower as it was able to fund dividends out of cash reserves. Furthermore Barry Oliff has sold several million shares during this period in his run up to retirement in 2 years time and the target price and volume that he planned to sell has always been flagged up well in advance to prospective buyers.

[my retirement fund] 17/1/2018 09:47

Surley there should be commercial buyers queuing up to take any large amounts going at 4.50 now. Also how an earth can this be yielding 6.4% ? Thats insane surley the market price need to rise and push this comfortably below 6 to around 5.5 at the very worst.What an earth is wrong here? Is it simply because its got British people running it and its listed in London?

[stun12] 17/1/2018 08:43

Nice figures. The chart linked to in the RNS of future dividend cover shows a gradual increase in retained earnings as the cover rises, pointing to either higher dividends in future or maybe a share buyback?

[masurenguy] 17/1/2018 08:43

Major points from a very positive update. If they maintain the 12.5% dividend increase at the year end then the final payment could be 19p making a total of 28p for the full year. This would represent a yield of 6.4% on this mornings midprice of 440p. Worth also remembering that Barry Oliff has scheduled another tranche of personal share sales when the price reaches 450p.

"Total funds under management (FuM) at the Group's half year on 31 December 2017 were US$5.3bn (£3.9bn). This compares with US$4.7bn (£3.6bn) at the year-end on 30 June 2017. Generally, a combination of strong NAV performance, discount narrowing and opportunistic participation in event driven US situations drove relative performance. The EM strategy underperformed due to widening discounts and an underweight to the Chinese IT sector which posted very strong returns. Net flows were positive in aggregate over the period, particularly in the Developed strategy which continues to benefit from a focused marketing strategy and excellent long term investment results.

"Fixed" costs are c£1.0m per month, and accordingly the current run-rate for operating profit, before profit-share of 30% and an estimated EIP charge of 2%, is approximately £1.7m per month based upon current FuM and a US$/£ exchange rate of US$1.35 to £1 as at 31 December 2017. The Group estimates the unaudited profit before taxation for the six months ended 31 December 2017 to be approximately £6.6m, which compares with £5.8m for the equivalent period to 31 December 2016.The Board has decided to declare an interim dividend of 9p (2017: 8p). The dividend will be paid on 16 March 2018 to shareholders registered at the close of business on 2 March 2018."