City Of London Investment Share Discussion Threads

[skinny] 14/1/2020 08:40

New multi year high @460p.

[masurenguy] 14/1/2020 07:53

TU Main Points
*FuM was US$6bn (£4.5bn) compared with US$5.4bn (£4.3bn) at Y/E 30 June 2019.
*H1 unaudited pretax profit estimated to be approximately £6.3m compared to £5.2m last year.
*The interim dividend to be increased 10% by 1p to 10p per share, paid on 20 March 2020.
NB: If followed through on the same basis for H2 then the final dividend could be increased by 2p to 20p making 30p for the current year.

[robsy2] 14/1/2020 07:17

yes looking very good indeed.

[joe say] 14/1/2020 07:15

Thanks Skinny

I for one am pleased with that/and the direction of travel

[gdcox] 04/1/2020 10:48

Thes FUM figures. What exchange rate is used; eg end of period or average. What exchange rate is relevant given that the underlying assets are highly unlikely to be in US dollars .

[hirani2] 03/1/2020 18:28

Thanks Jay

[masurenguy] 03/1/2020 17:12

Yes estimated FUM was at its highest monthly level in December. The official figure should be confirmed on January 14th. It is also up by 30% over the past 12 months and 11.6% since June, which augurs well for both the H1 results and the potential H2 performance.

[cockerhoop] 03/1/2020 16:45

AUM above $6bn for the 1st time at the end of December. Appears to be outperforming the underlying index over the last 3 months which itself had a good end to the year. If maintained it should signal a decent H2.

[jayjmckenna] 01/1/2020 19:11

With the exception of the Dublin listed fund, all other EM funds are private placements. They are designed for the USA Foundation and Endowment market

[hirani2] 01/1/2020 18:57

Is there any way you can invest in there funds ?

[topvest] 01/1/2020 17:46

Yes, let’s hope so. He’s a genius!

[montyhedge] 01/1/2020 11:32

Barry will always be there in the background.

[masurenguy] 31/12/2019 07:54

Good to see that the well planned handover by the founder has been extended for a little bit longer so that Barry can continue to advise the board on business development during 2020 as we head toward the uncertain terms of the final Brexit deadline in December. He also still maintains a holding of just over 2m shares (7.6%) which are currently worth circa £8.75m.

"Barry M. Olliff, Founder and Director, has retired from his executive role effective 31 December 2019, having retired from the Board of City of London Investment Management Company Limited on 1 December 2019. The Board re-confirms that Barry has agreed to serve as an advisor to the executive team for the next two years. In addition, the Board has now asked him to complete his current term as a Non-Executive, non-independent Director on the Group Board through October 2020, in order to advise on the continued development of the business, and the Directors are pleased to announce his acceptance."

[masurenguy] 09/12/2019 16:27

Company's Employee Benefit Trust appears to see value at the moment having purchased 425,000 shares over the past 4 weeks at between 4.15p and 4.25p. That constitutes 25% of their total current holding of 1.68m shares

[robsy2] 14/11/2019 12:04

Nice update masurenguy.
Very pleasant reading.
I wish more companies were run this way!

[masurenguy] 14/11/2019 11:28

A small top up @420p this morning. At this price the yield (excluding any further special dividends) is still 6.6% although the actual yield on my overall holding is well above 8%. Barry Olliff is still looking to reduce his current shareholding from circa 2m to 500k as he approaches retirement and is expecting to achieve a shareprice well in excess of today's current Offer. It is also worth noting that Tom Griffth, his successor as CEO, is also very confident in further future value creation and has a significant pro rata personal investment in the company, which aligns his interest with those of the external shareholders.

"As he approaches retirement on 31st December 2019, Barry intends to sell 500,000 shares at each of 450p, 475p, and 500p subject to close periods. We believe that this statement of Barry's intentions should continue in order to maintain the openness and accountability with shareholders that he has provided over the years and leading up to his retirement..........As Barry has mentioned relative to his own CLIG share ownership on previous occasions, albeit on a much smaller scale, any wealth that I may have is invested in shares of CLIG. I am fully committed to the continued value creation of CLIG shares now and into the future." Tom Griffth, CEO, 16 September 2019.

Edit: I note that there was confident buyer for 100,000 shares @4.25p just 20 minutes ago !

[masurenguy] 12/11/2019 10:17

New institutional investor. APQ Global acquires 1,472,495 shares to take a 5.54% stake in CLIG.

[sharesoc] 25/10/2019 12:27

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[skinny] 18/10/2019 14:38

Some forward planning by Barry Olliff!

.

[skinny] 14/10/2019 16:56

Yes a 12+ month high @454p.

[luderitz] 14/10/2019 14:22

Up over 1%, Market makers still at it today.

[pvb] 14/10/2019 13:14

Whoops! ;-)

[masurenguy] 10/10/2019 15:45

New report from Hardman

Summary: City of London has announced a trading update for 1Q. Weak markets were largely offset by inflows and outperformance in the Emerging Markets strategy, meaning FUM finished the quarter at $5.34bn, down $61m from the June figure of $5.39bn. The main beneficiary of inflows was the Developed Markets strategy, which received a net $142m, and assets rose 16.5% to $849m. In the Emerging Markets strategy, outperformance came from positive NAV performances and narrowing discounts. The Developed Markets strategy was impacted by European and UK weakness, while Frontier Markets saw an impact from exposure to Argentina.

Operations: The increased FUM in the diversifying strategies continue to affect the revenue margin, which slipped to 75bps. This, together with weak markets, weighed a little on revenues and, with costs in line with expectations, the expected post-tax profit of 2.4m for 1Q 20 is a little behind our forecast.

Board: From 1 January 2020, Carlos Yuste, Head of Business Development, will re-join the board as an Executive Director. He was previously on the board from 2006 until 2015.

Valuation: The 2020E P/E of 10.6x is at a significant discount to the peer group. The underlying 2020E yield of 6.2% is attractive, in our view, 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 raise the risk of such outflows, although increasing diversification is also mitigating this.

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. FY17 and FY18 both saw dividend increases and, unless there is significant market disruption, more should follow in the next few years.

Full Report: