19 January 2018
By Maynard Paton
Update on City of London Investment (CLIG).
Event: Trading update and shareholder presentation/summary results for the six months ending 31 December 2017 published 17 January 2018.
Summary: Favourable market movements helped CLIG report its best-ever first-half figures, with revenue, profit, net cash and the dividend all moving higher. However, the finer details showed the emerging-market fund manager struggling to capture new clients as its main strategy under-performed. Meanwhile, fee rates are still being chipped away and staff costs keep on climbing. The shares may look under-appreciated on a P/E of 10 and yield of 6%, but sadly a re-rating does not appear imminent. I continue to hold.