City Of London Investment Share Discussion Threads

[eggbaconandbubble] 18/12/2018 13:17

And still doing so!

[masurenguy] 08/12/2018 09:10

Shareprice has held up well, especially compared to other financial stocks, during the market turmoil.

[cascudi] 12/11/2018 11:46

7per cent dividend yield. Undervalued imo

[masurenguy] 11/10/2018 10:09

You're right stun12/skinny - I got my date mixed up this morning. Anyway - aside from current market conditions - the shareprice fall is primarily due to going XD today.

[tim 3] 11/10/2018 10:04

Ahh thanks Skinny.

[skinny] 11/10/2018 10:01

Yes - today is XD.

[skinny] 11/10/2018 10:00

You mean today :-)

[stun12] 11/10/2018 09:59

Did we go XD today. or is this just the usual exaggerated move?

[masurenguy] 11/10/2018 09:59

Goes XD tomorrow

[tim 3] 11/10/2018 09:55

wow thats some drop even in this market!

[masurenguy] 08/10/2018 07:56

FUM marginally down by 2.5% at Q1 compared to the last fiscal year end. This was primarily due to EM & Frontier which underperformed compared to DEV and OGV which showed modest increases. Last years final dividend increase of 8% will be recommended for approval at the AGM in 2 weeks time.

RNS Number : 2045D
8th October 2018

Trading Update - 1st Quarter Funds under Management (FuM)

City of London (LSE: CLIG), a leading specialist asset management group offering a range of institutional products investing in closed-end funds, announces that as at 30th September 2018, FuM were US$5.0bn (£3.8bn). This compares with US$5.1bn (£3.9bn) at the Company's year-end on 30th June 2018. A breakdown by strategy follows:

FuM ($mn) Strategy Index

Sep-18 Jun-18 % Net %
(estimate) inc/dec Flows inc/dec
EM 4,016 4,207 -5% (95) MSCI EM -1%
DEV 577 481 20% 98 MSCI ACWI 4%
Frontier 215 245 -12% (21) MSCI Frontier -2%
Opportunistic ACWI/Barclays Global
Value 200 174 15% 26 Agg 2%
5,008 5,107 8

Note: Opportunistic Value includes the new Municipal Bond strategy.

IM Performance

IM performance was slightly behind benchmark over the quarter. Specifically, in the Emerging Market and Frontier strategies underlying NAV performance was weak (that is, the underlying closed-end fund managers underperformed their relevant benchmark indices). In the Developed strategy relative returns were impacted by widening discounts. Flows were neutral over the quarter. The EM, Frontier and Opportunistic value strategies saw rebalancing outflows which were offset by continued strong flows into the Developed strategy and the funding of a new Municipal bond mandate.

Operations

The Group's income currently accrues at a weighted average rate of approximately 77 basis points of FuM, net of third party commissions. "Fixed" costs are c. £1.1m per month, and accordingly the current run-rate for operating profit, before profit-share of 30% and an estimated EIP charge of 4%, is approximately £1.4m per month based upon current FuM and a US$/GBP exchange rate of US$1.3 to £1 as at 30th September 2018. The Group estimates that the post-tax profit for the first three months of the year will be approximately £2.2m (2017: £2.5m).

Dividends

The final dividend of 18p per share, subject to AGM approval on 22nd October 2018, will be paid on 30th October 2018, bringing the total dividend for the financial year 2017-18 to 27p (2016-17: 25p).

[skinny] 26/9/2018 13:41

I've still got 5 years to wait for that pleasure!

[eggbaconandbubble] 23/9/2018 19:27

Nobby & Skinny I bought some more last week and the same thing happened. Still onwards and hopefully upwards and enjoy the divi.

Just as an aside I was 65 last week so the State Pension started. I get £1.08 for every hour I now live!

All taxable of course!

However it did occur to me that if I lay in bed till 9 o'clock the government would have given me enough money to get up, go out and buy a double espresso, a copy of The Telegraph and a Full English in the local cafe!!!

Kushti!

[masurenguy] 23/9/2018 17:19

Strengthening cash position to boost returns

City of London has released its annual results for 2018. As headline figures were
given in the July trading statement, there are no big surprises in these results.

FUM
grew 9.5% in US Dollar terms over the year to $5.1bn. With Sterling strengthening
relative to the US Dollar and lower fee margins, revenue growth was a little behind
this at 8.4%. Total expenses grew at 8.2%, giving a net 8.9% growth in operating
profit to £12.5m. EPS growth was 7.0%, lower than the 10% increase in earnings
due to fewer shares being held by employee benefits schemes.

► Cash: City of London usually has excellent cash conversion. The 2018 figure of
120% was boosted by changes in working capital, notably a £1.4m increase in
trade payables. The year-end cash balance of £19.7m is more than 40% up on a
year ago, with suggestions that some might be returned to shareholders.

► Management and board changes: The coming year is going to see significant
changes. In early 2019, Tom Griffith, who is currently Deputy CEO, will become
Group CEO in advance of Barry Olliff’s retiral at the year end. David Cardale will
also be stepping down as Chairman, to be replaced by Barry Aling.

► Valuation: The prospective P/E of 10.3x is at a significant discount to the peer
group. The historical yield of 6.3% is attractive and should, at the very least,
provide support for the shares in the current markets.

► Risks: Although emerging markets can be volatile, City of London has proved to
be more robust than some other EM fund managers, aided by its good
performance and strong client servicing. Further EM volatility could increase the
risk of such outflows, however.

► Investment summary: Having shown robust performance in challenging market
conditions, City of London is now reaping the benefits in a more supportive
environment. The valuation remains reasonable. FY2017 and FY2018 both saw
dividend increases and, unless there is significant market disruption, more
should follow in the next few years.

[nobbyx] 18/9/2018 15:49

Thanks, Skinny. I was puzzled why I missed eggs' trade. Answer is his post was from yesterday so I looked up the Trades for the 17th. Presumably, eggs, you made the trade on the 17th but it was reported as being at 10:18:33 this morning.

[eggbaconandbubble] 18/9/2018 11:05

I use the advfn trades page for my info. I note quite a few of my trades flash up later in the day, if at all. That 5000 at 08.19 wasn't mine. Can,t remember my exact price but it was lower than 420p.

[nobbyx] 18/9/2018 10:26

eggsetc, a trade for 5000 on the NEX market at 420p went through at 08:19:11 yesterday morning. Correct number, wrong time.

Only LSE trades are reported on the 'Java' Trade page. If you change to the 'HTML5' option you will see both NEX and LSE trades. (Most private as opposed to institutional bargains appear to be done on the NEX market).

[eggbaconandbubble] 17/9/2018 22:03

Interesting that my purchase of 5000 at 10.18 am today has not shown up on 'trades'

[topvest] 17/9/2018 10:35

Another good set of results. The main risk is managing the transition of the founder. He's staying on in a consultancy role by the sounds of things. I know its a bit of a Corporate Governance "no-no" but it would be nice if he could stay as a NED. He's tried to step away before, but it didn't work out!

[masurenguy] 17/9/2018 07:57

Strong set of results. With the dividend increase, the annual yield on Fridays closing price is 6.6% but significantly higher for LTH. :0)

[skinny] 17/9/2018 07:17

FINAL RESULTS FOR THE YEAR TO 30TH JUNE 2018

SUMMARY

• Funds under management (FuM) at 30th June 2018 were US$5.1 billion (2017: US$4.7 billion), an increase of 10%. In sterling terms, FuM increased by 8% to £3.9 billion (2017: £3.6 billion).

• Revenues, representing the Group's management charges on FuM, were £33.9 million (2017: £31.3 million). Profit before tax was £12.8 million (2017: £11.6 million).

• Basic earnings per share were 39.5p (2017: 36.9p) after a tax charge of 21% (2017: 21%) of pre-tax profits.

• An increased final dividend of 18p per share is recommended, payable on 30th October 2018 to shareholders on the register on 12th October 2018, making a total for the year of 27p (2017: 25p).

For a copy of the full report or further information, please visit the shareholders page of our website or contact:

[montyhedge] 17/9/2018 07:04

Wow, I thought superb, dividend increase again.