CCAP.L Regulatory News (CCAP)

6 Oct 2006 07:00

Charlemagne Capital Limited06 October 2006 6 October 2006 Charlemagne Capital Announces Unaudited Assets under Management for the Nine Months Ended 30 September 2006 Charlemagne Capital Limited ("Charlemagne", or the "Group") sets out below themovements in Assets under Management ("AuM") for the first nine months of itscurrent financial year. Group AuM total US$4.1 billion as at 2 October 2006(i) The table below sets out the Group's AuM as at 2 October 2006 and the movementsexperienced in each product range in the period since 1 January 2006. Novy Neft 1 January 2006 Net subscriptions reorganisation Net performance 2 October 2006 Movement in AuM (US$m) (US$m) (%) (US$m) (%) (US$m) (%) AuM (US$m) period (%) -------------------------------------------------------------------------------------------------------------------Magna 988 (40) (4.0)% 59 6.0% 43 4.3% 1,050 6.3%OCCO 254 112 44.1% - - (3) (1.0%) 363 42.9%Institutional 1,998 132 6.6% 77 3.8% 45 2.1% 2,252 12.7%Specialist 844 (18) (2.1%) (537) (63.6%) 157 27.7% 446 (47.2%)-------------------------------------------------------------------------------------------------------------------Total 4,084 186 4.6% (401) (9.8%) 242 6.1% 4,111 0.7%------------------------------------------------------------------------------------------------------------------- Since 1 January 2006, Group AuM has risen to US$4,111 million, an increase ofUS$27 million or 0.7%. This is after taking into account the return of US$401million or 9.8% of the opening AuM, as a result of the planned Novy Neft capitalreturn(ii) as indicated in the Group's AIM Admission Document. Excluding theNovy Neft capital return, the Group's AuM increased by 10.5%. Jayne Sutcliffe, Chief Executive commented: "The year to date has seen significant volatility in emerging markets. Theseconditions have inevitably impacted both the market value of the Group'sproducts as well as flows into these products. This is evident from thequarterly fund flows. During the first quarter, the Group saw US$611m of netsubscriptions, followed by US$333m of net redemptions in the second quarter. Inthe third quarter net redemptions reduced to US$92m. In aggregate and despitethis volatility, during the first nine months of the year, net inflows(excluding the effect of Novy Neft) were positive at US$186 million. "The third quarter has seen a return to stability in many of the markets inwhich the Group invests. In the three month period ended 2 October 2006,Charlemagne's investment performance contributed growth of 5.4% to Group AuM, incomparison to the MSCI Emerging Markets Index(iii) which increased by 4.1%.Investor confidence has been slower to recover and has resulted in continuedoutflows from the emerging market fund industry as a whole. We continue tobelieve that emerging markets are fundamentally undervalued compared withdeveloped markets and offer superior growth opportunities." (i) Data is reported as at the first business day of the following period inorder to capture all subscription and redemption orders placed during the periodbut not processed until the next dealing date for the funds concerned. (ii) Novy Neft and Novy Neft II ("Novy") are Bermudian companies listed on theBermuda Stock Exchange. Novy Neft was launched in November 2003 and Novy Neft IIin February 2004 with the objective of investing in local Gazprom shares viastructured products. In December 2005, and as highlighted at the time of theCharlemagne IPO, Gazprom received legal permission to allow direct foreigninvestment into local Gazprom shares and, as a result, the two funds have beenrestructured during June 2006. As at 3 July 2006, AuM within Novy has reduced toUS$71 million which may roll off over time. Novy generates an annual managementfee of 1 per cent and no performance fees. The positive fund attribution to Magna and Institutional as a result of the NovyNeft re-organisation is caused by the unwinding of shareholdings by funds inthese categories in Novy. (iii) MSCI Emerging Markets Index, excluding dividends for the period 1st July -30th September 2006 Enquiries: Charlemagne Capital Tel. 020 7518 2100Jayne Sutcliffe, Chief ExecutiveDavid Curl, Finance Director & Head of Investment Smithfield Consultants Tel. 020 7360 4900John KielyGeorge Hudson This announcement is not for publication or distribution to persons in theUnited States of America, its territories or possessions or to any US person(within the meaning of Regulation S of the US Securities Act of 1933, asamended). Neither this announcement nor any copy of it may be taken ortransmitted into Australia, Canada or Japan or to Canadian persons or to anysecurities analyst or other person in any of those jurisdictions. Any failure tocomply with this restriction may constitute a violation of United States,Australian, Canadian or Japanese securities law. The distribution of thisannouncement in other jurisdictions may be restricted by law and persons intowhose possession this announcement comes should inform themselves about andobserve any such restrictions. This announcement contains certain forward-looking statements with respect tothe financial condition, results of operations and businesses of the CharlemagneCapital Group. These statements and forecasts involve risk and uncertaintybecause they relate to events and depend upon circumstances that will occur inthe future. There are a number of factors that could cause actual results ordevelopments to differ materially from those expressed or implied by theseforward-looking statements and forecasts. Nothing in this announcement should beconstrued as a profit forecast. This statement is aimed at providing information regarding the Assets underManagement on which revenue is derived by Charlemagne Capital Limited. Theunaudited data contained in this statement are currently provisional and allsuch data are subject to change. This statement is produced in order to providegreater disclosure to investors and potential investors and to ensure that theyall receive equal access to the same information at the same time. Notes to Editors: Charlemagne Capital is a specialist emerging markets equity investmentmanagement group. Charlemagne Capital Limited was admitted to the AIM market ofthe London Stock Exchange on 4 April 2006. Charlemagne's product range comprises mutual funds, hedge funds andinstitutional and specialist fund products primarily covering GEMs, EasternEurope, Latin America and Asia. Charlemagne Capital employs a range ofinvestment strategies including: long only, long/short, structured products andprivate equity. Charlemagne Capital's funds aim to exploit the inefficiencies inthe market via a strict bottom up approach and focused stock selection. Through the strong long-term investment performance track record of itsprincipal funds, Charlemagne Capital has established itself as a market leaderin emerging markets investment management. Its performance has been recognisedthrough numerous awards and top rankings for its funds, including the 2005Standard and Poor's 5-year best performing fund award in Austria, the 2006 SwissLipper Leaders 5-year award winner for Emerging Markets Europe and an AAA-ratingby Standard & Poor's for its Magna Eastern European Fund (a sub-fund of MagnaUmbrella Fund Plc). This information is provided by RNS The company news service from the London Stock Exchange