CCAP.L Regulatory News (CCAP)

11 Jul 2008 07:00



11 July 2008

Charlemagne Capital Announces Unaudited Revenues and Assets under Management for the Six Months Ended 30 June 2008

Charlemagne Capital Limited ("Charlemagne" or the "Group") sets out below the key revenue items and Assets under Management ("AuM") for the first six months of its current financial year. It is expected that the interim financial results will be announced on 3 September 2008.

Group AuM

Net management fees US$25.0 million up 31.6% compared to the first six months of 2007 (US$19.0 million).

Group AuM total up 3.8% since 31 March 2008 (US$5.5 billion).

Group AuM total down 11.6% since 1 January 2008 to US$5.7 billion as at 30 June 2008.

Group AuM total up 12.6% since 30 June 2007 (US$5.1 billion).

The table below sets out the Group's AuM as at 30 June 2008 and the movements experienced in each product range in the period since 1 January 2008. 

Notes

Closing AuM is stated as including all subscription and redemption orders received for the relevant funds as at the close of the period but not processed until the first dealing date of the following period.

Key areas of movement in AuM over the period included:

1. Initial capital return of US$88.0 million to shareholders by European Convergence Property Company plc in January 2008.

2. Re-alignment of holdings by one investor, resulting in a US$48.0 million movement from Magna to an institutional segregated account.

3. During the first half, Charlemagne successfully attracted seven major new institutional investors with combined new subscriptions of around US$350 million.

4.  Within Specialist, the BRIC property programme launched with an initial capital raising of US$21 million. Charlemagne Capital Limited is continuing to raise monies into the second half of the year.

Unaudited revenue numbers for the six months ended 30 June 2008 

Net management fees receivable were US$25.0 million compared with US$19.0 million for the first six months of 2007, reflecting the higher average AuM in the first half of 2008. 

Crystallised performance fees were US$3.3 million compared with US$16.4 million for the comparative period in 2007.  Accruing performance fees which have not crystallised were US$1.2 million compared with US$33.7 million as at the same date in 2007. 

Performance fees accrue throughout the accounting period in the accounts of each relevant fund. It is the Group's accounting policy only to recognise such revenues as they crystallise at the year-end date of the fund or, in certain cases, on redemption. Levels of accrued performance fees at any particular time should not be seen as necessarily indicative of the eventual crystallised figures, especially in periods of above average market volatility. 

Dividend policy 

In the absence of unforeseen circumstances, the Group intends to declare an ordinary interim dividend in respect of the six months to 30 June 2007.  Further details will be provided in the interim results announcement. 

Share Repurchases 

Buying back shares for cancellation is one of the mechanisms by which the Group seeks to manage its capital structure and return surplus capital to shareholders. During the first six months of 2008, the Group repurchased and cancelled 1,250,000 of the Company's ordinary shares at an average price per share of 59.0p and a total cost of US$1.46 million. The Group will continue to buy back shares as it deems appropriate.

Summary

Over the first half of 2008, emerging markets have experienced significant volatility as experienced across the global markets. Overall, global emerging markets are down 11.8% USD year to date (18.1% EUR year to date) (MSCI GEMS NTR), with certain major markets underperforming the global index (e.g., MSCI China NTR -26.3% USD -31.6% EUR, MSCI India NTR -41.4% USD -45.6% EUR).  Given this challenging environment, we are pleased that we have been able to continue to grow core revenues. 

Although it is unlikely in the current market environment that we will repeat 2007's record levels of performance fees in 2008, we believe the Group's ability to generate significant revenues from performance fees in the future remains intact.

Emerging markets trailing and forward looking PE multiples are at a discount to historic averages and we remain confident that the long term investment case for high growth emerging markets remains valid. 

Enquiries:

This announcement is not for publication or distribution to persons in the United 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, as amended). Neither this announcement nor any copy of it may be taken or transmitted into Australia, Canada or Japan or to Canadian persons or to any securities analyst or other person in any of those jurisdictions. Any failure to comply with this restriction may constitute a violation of United States, Australian, Canadian or Japanese securities law. The distribution of this announcement in other jurisdictions may be restricted by law and persons into whose possession this announcement comes should inform themselves about and observe any such restrictions.

This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of the Charlemagne Capital Group. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Nothing in this announcement should be construed as a profit forecast.

This statement is aimed at providing information regarding the Assets under Management on which revenue is derived by Charlemagne Capital Limited. The unaudited data contained in this statement are currently provisional and all such data are subject to change. This statement is produced in order to provide greater disclosure to investors and potential investors and to ensure that they all receive equal access to the same information at the same time.