26 July 2019
By Maynard Paton
Results summary for City of London Investment (CLIG):
- These 2019 summary figures contained no surprises, as lower funds under management (FUM) throughout the year left revenue down 6% and profit down 16%.
- FUM ironically ended the year at its highest-ever level in GBP terms (£4.2b), as client money once again trickled out of the main emerging-market funds and in to other strategies.
- The overall fee rate paid by clients slid from 80 basis points to 76 basis points.
- The accounts continue to sport high margins, a robust return on equity, decent cash flow and net cash.
- The P/E is approximately 10 and the yield tops 6%, although the shares have traded on a similar rating for years. I continue to hold.