Investing funds owned by institutional investors into emerging markets and charging a fee is how City of London Investment Group (CLIG) makes its money. So it's hardly surprising that net fee income was down 15 per cent at £20.3m, as assets under management swung between $3.2bn (£2bn) and $3.9bn in volatile markets during the year.
More encouragingly, subscriptions and redemptions for the 13-month period (the year end has moved from 31 May to 30 June), were virtually the same, with net outflows in the first half offset by a net inflow in the second half. Fresh funds are being attracted by new closed-end vehicles such as a special situations fund strategy. The company is pacing itself by restricting flows into its emerging markets closed-end funds to $100m per month, but still has a target to raise $750m by December 2015.
Custody payments, which are paid to third parties who introduce new business to City of London, continue to run down, falling from £4.2m to £3.1m. These payments are expected to cease altogether by 2020.
Prior to these figures, analysts at Hardman were forecasting pre-tax profits for the current year of £9.17m and EPS of 26.6p.
CITY OF LONDON INVESTMENT GROUP (CLIG) | ||||
---|---|---|---|---|
ORD PRICE: | 321p | MARKET VALUE: | £86m | |
TOUCH: | 320-328p | 12-MONTH HIGH: | 344p | LOW: 225p |
DIVIDEND YIELD: | 7.5% | PE RATIO: | 16 | |
NET ASSET VALUE: | 52p | NET CASH: | £10.2m |
Year to 31 May | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2010 | 30.0 | 10.4 | 28.5 | 22 |
2011 | 36.5 | 13.1 | 35.1 | 24 |
2012 | 34.1 | 11.5 | 33.8 | 24 |
2013 | 29.4 | 8.9 | 24.9 | 24 |
30 Jun | (£m) | (£m) | (p) | (p) |
2014* | 24.2 | 7.2 | 20.7 | 24 |
% change† | -24 | -25 | -23 | -8 |
Ex-div: 9 Oct Payment: 31 Oct *13 months †Annualised |