Tag Archives: City of London Investment

City Of London Investment: Brexit Creates Best H1 Profit For 7 Years

19 January 2017
By Maynard Paton

Quick update on City of London Investment (CLIG).

Event: Trading update and shareholder presentation for the six months ending 31 December 2016 published 17 January 2017.

Summary: CLIG had already acknowledged it would be a Brexit beneficiary, and this week’s update was the first to give shareholders some actual figures based on the weakened GBP. Even with client money barely moving, this emerging-market fund manager delivered a very welcome 61% profit surge to ensure the near-7% dividend yield remains safe for now. However, the usual downsides remain — not least stagnant funds under management and rising staff costs. I continue to hold.    Continue reading

Year In Review 2016

01 January 2017
By Maynard Paton

Happy New Year!

I trust you enjoyed the festive break and are now raring to do battle with the market for another twelve months!

This first Blog post of 2017 provides a ‘year-in-review’ of my current portfolio holdings. I recap how each of the underlying businesses performed during 2016, as well as provide a few remarks about valuation.

As I mentioned this time last year, I find writing such reviews extremely useful — not least because it encourages me to double-check my investment logic to ensure I am still invested for all the right reasons! Continue reading

City Of London Investment: The Staff Don’t Deserve This Extra Bonus And I Hope It Is Voted Down

13 September 2016
By Maynard Paton

Quick update on City of London Investment (CLIG).

Event: Final results for the year ending 30 June 2016 published 12 September 2016

Summary: I’m starting to go off City businesses. First it was Record and now it is CLIG that wants to pay its employees a lot more… despite profits at both having gone nowhere for years. Sadly, CLIG’s revised bonus plan has offset some promising news of greater funds under management and the real prospect (finally!) of a dividend lift. I can only hope the fund manager can soon deliver the much-needed performance to justify the extra bonus cost. I continue to hold. Continue reading

City Of London Investment: Brexit Should Bolster Earnings And Support A P/E Of 10

27 July 2016
By Maynard Paton

Quick update on City of London Investment (CLIG).

Event: Trading update for the year ending 30 June 2016 published 18 July 2016

Summary: Regular monthly updates had already ensured this statement would not be too surprising. However, CLIG trimmed back its projections for 2017 and despite stagnant funds under management, extra costs are filtering into the business. Fortunately the group should benefit significantly from the weaker pound, and its dollar-based income may currently support a P/E of 10 and 7%-plus yield. I continue to hold.   
Continue reading

City Of London Investment: 7% Yield Buoyed By Greater Prospect Of New Client Money

12 January 2016
By Maynard Paton

Quick update on City of London Investment (CLIG).

Event: First-half trading statement published 12 January

Summary: Not a bad statement, given CLIG is an emerging-market fund manager and its markets have slumped since the summer. A particular bright spot was the group’s forward guidance, which for 2016/17 is factoring in an acceleration of new client money. However, I continue to value the shares on today’s funds under management — which suggest the 24p per share dividend and 7% yield remain safe for now. I continue to hold.   

Continue reading

City Of London Investment: Why I’ve Reduced My Holding

15 September 2015
By Maynard Paton

Quick update on City of London Investment (CLIG).

Event: Final results and annual report published 14 September.

Summary: No surprises here, as everything important was revealed within July’s summary figures. However, CLIG did confirm its funds under management had dropped by 17% during the recent market downturn and my sums are now starting to ask questions about the 24p per share dividend. All told, I do not feel comfortable with the current valuation and have therefore decided to reduce my holding.

Continue reading

City Of London Investment: 7% Income Confirmed In Double-Quick Time

15 July 2015
By Maynard Paton

Quick update on City of London Investment (CLIG).

Event: Summary annual results published 15 July

Summary: A set of satisfactory outline results, commendably issued once again in double-quick time. But it was no real surprise to see CLIG downgrade some of its earlier growth assumptions, while new client money continues to be required to help earnings recover and lift the dividend. The accounts remain great and for now I’m content with the 24p per share payout and 7% income. I continue to hold.

Continue reading

City of London Investment: 7% Income Plus Vague Hints Of Dividend Lift

12 February 2015
By Maynard Paton

Quick update on City of London Investment (CLIG).

Event: Half-year results published 11 February.

Summary: Figures already heralded by January trading statement — therefore no surprises. Previous guidance all repeated. Still on course to pay 24p per share dividend and support 7% dividend yield at 335p. Vague hints of dividend increase now emerging. Cash position remains high. P/E remains modest. I continue to hold.  Continue reading

City of London Investment Group PLC: How I’m Banking On An 8.5% Dividend Yield

08 May 2014
By Maynard Paton

I love to buy shares run by owner-orientated bosses. You see, they often ensure shareholders are amply rewarded with reliable dividends and are generally the best people to put things right when progress doesn’t exactly run to plan.

That is certainly the case I think at City of London Investment (LON: CLIG), an emerging-market fund manager, where chief executive Barry Olliff remains committed to a healthy payout even though earnings have suffered a setback.

Having started to issue perhaps the most detailed ‘forward earnings guidance’ of any quoted company, Mr Olliff is perhaps the most open, upfront and shareholder-friendly executive I have ever come across.  Continue reading