Market's view on City Lon Inv
Published on April 2024
- Concerns were raised about potential reduction in fees to drive funds under management (FUM) inflows and the absence of the monthly profit run rate in the latest trading update.
- The company has a strong cash position, which is currently earning at a good rate.
- Speculation exists about the possibility of a special dividend being declared in the future.
- Recognition of the firm’s current price as an opportunity to buy a high dividend business at low cost.
- Reports indicate an increase in FUM to $10.1bn, accompanied by cost-cutting measures expected to improve margins and cover dividends.
- Positive outlook on share price recovery due to similar trends observed in other companies.
- Mention of net inflows of $224m led by International Equity and Municipal Bond strategies, indicating a return to growth.
- Dividend payment issues were discussed, with an interim dividend of 11p per share paid recently and final dividend announcement anticipated.
- Detailed trade practices were explained, differentiating between retail investors and larger institutional trades.
- Challenges in owning shares due to large bid-ask spreads and only dividend income being realized were noted.
- Concerns about the dividend cover depending on whether projected earnings growth materializes.
- FUM increased slightly over the year, with a mention of a stable dividend despite a challenging market.
- There is ongoing attention to cash management and shareholder influence on company strategies.
- Discussions on share price trends and the financial health of the company, with comparisons to historical performance.
- Observations made on the company’s efforts to maintain dividends, even if it potentially impacts their reserves.