A year is a long time for an emerging markets asset manager, and despite the high levels of volatility City of London Investment Group (CLIG) came through the year to June 2016 in pretty good shape. Of the many influencing factors, sterling's fall against the dollar was perhaps the most significant because most of the funds under management (FUM) are in dollars. So while FUM at the year-end stood at $4bn, down from $4.2bn a year earlier, in sterling terms funds rose by 11 per cent to £3bn. And since the year-end funds have risen to $4.4bn. Happily, around 40 per cent of central costs are in sterling.
And while chief executive Barry Olliff's preferred management performance indicator is the share price (up 10 per cent from June 2015), it's also worth noting that the change in funds under management outperformed the MSCI emerging markets index by 7 per cent.
The group invests in closed-end funds, and the core emerging market strategies attracted net inflows of $115m, while diversification products, which now make up 9.1 per cent of FUM (up from 8.5 per cent) attracted net inflows of $10m.
Analysts at Zeus Capital are forecasting adjusted pre-tax profits of £11.2m and EPS of 33.1p for the year to June 2017 (from £8m and 23.7p in 2016).
| CITY OF LONDON INVESTMENT GROUP (CLIG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 375p | MARKET VALUE: | £101m | |
| TOUCH: | 360-380p | 12-MONTH HIGH: | 390p | LOW: 265p |
| DIVIDEND YIELD: | 6.4% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 50p | NET CASH: | £10.1m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 34.1 | 11.5 | 33.8 | 24 |
| 2013 | 29.4 | 8.9 | 24.9 | 24 |
| 2014* | 24.2 | 7.4 | 21.1 | 24 |
| 2015 | 25.4 | 8.9 | 26.4 | 24 |
| 2016 | 24.4 | 8.0 | 23.3 | 24 |
| % change | -4 | -11 | -12 | - |
Ex-div: 13 Oct Payment: 31 Oct *13 months, restated | ||||
