City Of London Investment Share Discussion Threads

[montyhedge] 18/2/2019 15:58

Trying to pick more up below 400p, no luck yet.

[2wild] 18/2/2019 11:25

Was hoping for 10p intrim and 20p final. This is like getting 4.5 years increase (5x1 & 4x2p) upfront. Toped up at 396 this morning.

[masurenguy] 18/2/2019 08:40

If the final dividend just remains @18p in September the yield in 2019 will be over 10% at the current price and even quite a bit higher for longer term buy-and-hold investors here. :0)

[montyhedge] 18/2/2019 08:38

I would have thought 415p today.

[montyhedge] 18/2/2019 08:36

Put in ISA so tax free dividends. Yippee

[rogerbridge] 18/2/2019 08:31

What excellent news.

[montyhedge] 18/2/2019 08:24

So 22.5p dividend payed 22nd March, that will do me.

[montyhedge] 18/2/2019 08:12

It's a brilliant company with the special 10% yield.

[robsy2] 18/2/2019 07:47

I love this company. So much to admire about them, striaghtforward coomications, honest, open, focussed, and principled.
Also given give great returns over the years.
R2

[montyhedge] 18/2/2019 07:29

It's a one off.

[eggbaconandbubble] 18/2/2019 07:23

That gives a yield of over 10%!!! Can that be sustained?

If it can........!

[montyhedge] 18/2/2019 07:10

Wow Special dividend.

[skinny] 18/2/2019 07:06

City of London (LSE:CLIG) announces half year results for the six months to 31st December 2018.

HALF YEAR SUMMARY

• Funds under Management ("FuM") of US$4.6 billion (£3.6 billion) at 31st December 2018. This compares with US$5.1 billion (£3.9 billion) at the beginning of this financial year on 1st July 2018 and US$5.3 billion (£3.9 billion) at 31st December 2017

• FuM at 31st January 2019 of US$5.1 billion (£3.9 billion)

• Revenues representing the Group's management fees on FuM were £15.6 million (31st December 2017: £17.1 million)

• Profit before tax of £5.2 million (31st December 2017: £6.6 million)

• Maintained interim dividend of 9p per share (31st December 2017: 9p) payable on 22nd March 2019 to shareholders on the register on 8th March 2019

• Special dividend of 13.5p per share payable on 22nd March 2019 to shareholders on the register on 8th March 2019

CHAIRMAN's QUOTE

"Your Board is pleased to announce a special dividend of 13.5p per share, equivalent to one half of the current annual distributions, to coincide with this year's interim payment. It is your Board's view that this additional payment represents a fair balance between the need to reward shareholders while maintaining sufficient reserves to capitalise on any opportunities that may arise."

[davebowler] 06/2/2019 13:06

-Is that a Mrs Brown quote?
hxxps://bonsaieejit.com/2012/02/14/as-mrs-brown-would-say-thats-nice/

[montyhedge] 04/2/2019 18:32

That's nice.

[topvest] 04/2/2019 18:30

That’s a nice jump.

[cockerhoop] 04/2/2019 15:39

FUM up nicely from $4.62bn to $5.07bn mirroring the MSCI EM Index.

[masurenguy] 21/1/2019 16:18

New report issued by Hardman & Co today.

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. FY’17 and FY’18 both saw dividend increases and, unless there is significant market disruption, more should follow in the next few years.

[montyhedge] 16/1/2019 17:30

Is it nearly fill yer boots time ?

[cockerhoop] 16/1/2019 14:38

MSCI EM Index is up 5% since the end of Dec so probably adds $200m to FUM. I'd guess realtime FUM approx $4.8bn.

[masurenguy] 16/1/2019 14:01

Graham Neary's view: "This investor in closed-end funds has seen a net outflow of $42 million over six months, and negative performance has contributed to a total reduction in funds under management (FuM) of some $480 million.

Key points
*FuM is $4.6bn at Dec 2018, versus $5.1bn at June 2018.
*The primary strategy, Emerging Markets, outperformed, but the newer strategies all underperformed.
*A positive note, CLIG has been notification of inflows worth $125m to be funded over Q3
*The dividend yield is a stonking 8%.

I would think that prospects for long-term growth are probably still good - emerging market asset managers enjoy some nice tailwinds. Short-term developments have been a bit disappointing, and the share price reaction has left the stock with a ValueRank of 98. The Stocko system ranks this as a Super Stock. So this is another fund management company that I am keenly interested in."

[masurenguy] 16/1/2019 09:00

This is one of my larger holdings and I've been invested here for almost 9 years, primarily for the yield. A few years ago, from 2011 - 2014, they maintained their dividend even when the the cost exceeded profit after tax by subsidising it from reserves and I think they would do this again if necessary.

I certainly don't plan to reduce my investment here but I will review my position when Barry Olliff finally retires in October this year. Tom Griffith has a tough act to follow in this respect and he will have to win his spurs in his new role from next month before Barry departs in October.

[stun12] 16/1/2019 08:28

The link to a graph showing dividend cover is

Coverage looks a bit skinny, but still possible to maintain the divi. Not a great quarter for them, but most markets have been falling - the FuM numbers fell more due to loss of value rather than outflows.

No reason not to stick with it for the while, I'd have thought.

[masurenguy] 16/1/2019 07:58

Unfortunately a Q1 profit warning with overall FUM down by circa 10% and a projected profit decline of 20%. This will inevitably hit the shareprice today.

As at 31 December 2018, FuM were US$4.6 billion (£3.6 billion). This compares with US$5.1 billion (£3.9 billion) at the Company's year-end on 30th June 2018.

The EM strategy outperformed due to narrowing discounts and good country allocation over the period. Negative relative investment performance was recorded across Developed, Opportunistic Value and Frontier strategies. Generally, a combination of NAV performance and discount widening, relating to year-end tax-loss selling in the US, affected relative performance.

During the period under review, the Developed and Opportunistic Value strategies recorded combined net inflows of $136 million. The EM and Frontier strategies saw net outflows of $157 million and $21 million, respectively. During the most recent period of volatility, we have to date received notification of $125 million of net inflows in aggregate across all strategies, which we expect to be funded over the next quarter. With regard to business development, the Group continues to maintain an active pipeline across all of its major CEF offerings, with increased interest continuing to be seen in the non-Emerging Market CEF strategies (i.e. Developed, Opportunistic Value).

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 5%, is approximately £1.2m per month based upon current FuM and a US$/GBP exchange rate of US$1.275 to £1 as at 31 December 2018. The Group estimates the unaudited profit before taxation for the six months ended 31 December 2018 to be approximately £5.2 million, which compares with £6.6 million for the equivalent period to 31 December 2017.

The Company is currently in a close period which will end with the publication of results for the six months ended 31 December 2018 on 18 February 2019.