City of London founder buys shares

City of London Investment Group founder Barry Olliff has acquired 50,000 shares in the asset management company.

Olliff, who is chief executive, paid 265p a share, making his investment £132,500. Olliff, who owns 19.9% of AIM-quoted City of London Investment, has been a seller in recent months.

Last October, Olliff announced that he planned to sell 500,000 shares when the share price hit 310p. Olliff intended to sell a further 500,000 shares if the share price reached 350p and another 500,000 when it reached 400p.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

He sold 100,000 shares at 310p a share in January and 25,000 at 310p a share in February. Those sales raised £387,500. Since then the share price has fallen sharply, although it is still more than three-fifths higher than one year ago.

Chairman Andrew Davison bought 18,000 shares and non-executive director Allan Buffered acquired 10,000 shares. Both paid 265p a share, which is the same price paid by the company for 439,000 shares it bought back.

Asset Management Investment Company and Lloyds Banking have both been sellers of City of London Investment shares this week.

Olliff has been involved in the investment trust and closed-end fund sector for more than four decades. He started stockbroker Olliff & Partners in 1987 and this formed the basis of City of London Investment.

City of London Investment's total funds under management slipped slightly to $4.5bn in the three months to February 2010. Funds under management were $4.7bn at the end of November 2009.

Revenues rose by one-third to £13.8m in the six months to Novemebr 2009, while profit increased by 75% to £4.8m. There was £4.7m in the bank at the end of November 2009.

The interim dividend was increased by 40% to 7p a share and the company has hinted that the final dividend could be 14p a share.

Top Director Buys

City of London Investment Group (CLIG) Director name: Mr Barry M OlliffAmount purchased: 50,000 @ 265.00p Value: £132,500

Kirkland Lake Gold (KGI) Director name: Mr George A MiltonAmount purchased: 7,000 @ 516.06p Value: £36,124

City of London Investment Group (CLIG) Director name: Mr Andrew J DavisonAmount purchased: 18,000 @ 265.00p Value: £47,700

City of London Investment Group (CLIG) Director name: Dr Allan Seymour BufferdAmount purchased: 10,000 @ 265.00p Value: £26,500

Kirkland Lake Gold (KGI) Director name: Mr George A MiltonAmount purchased: 3,000 @ 512.82p Value: £15,385

Cape (CIU) Director name: Mr Richard Keith BinghamAmount purchased: 10,000 @ 227.00p Value: £22,700

Moss Bros (MOSB) Director name: Mrs Debbie Howard HewittAmount purchased: 76,923 @ 26.00p Value: £20,000

Morrison (Wm) Supermarkets (MRW) Director name: Ms Johanna WaterousAmount purchased: 6,716 @ 297.76p Value: £19,998

Development Securities (DSC) Director name: Mr Graham ProtheroAmount purchased: 7,375 @ 269.00p Value: £19,839

Public Service Properties Investments (PSPI) Director name: Mr Derek James LivingstoneAmount purchased: 27,515 @ 70.00p Value: £19,260

Top Director Sells

Kier Group (KIE) Director name: Miss Deena E MattarAmount sold: 25,000 @ 1,100.00p Value: £275,000