CCAP.L Regulatory News (CCAP)

15 July 2014

Interim Management Statement for the Six Months Ended 30 June 2014

Charlemagne Capital Limited (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 16 September 2014.

Key highlights and Group AuM

§ As at 30 June 2014, Group AuM were US$2.8 billion, up by 3.6% since 1 January 2014;

§ Net management fees of US$12.4 million, up 3.3% on the previous six months;

· The Group remains well-capitalised with a strong and liquid balance sheet; and

· Positive net inflows over the period

The table below sets out the Group's AuM as at 30 June 2014 and the movements experienced in each product range in the period since 1 January 2014.

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.

Unaudited revenue numbers for the six months ended 30 June 2014

Net management fees receivable were US$12.4 million compared with US$12.0 million for the previous six months and US$11.9 million for the comparable period of 2013, reflecting the small increase in average AuM and net margin arising over the period. OCCO management fees, which are subject to a minority interest, accounted for over 45% of total net management fee income during the period.

Crystallised performance fees were US$0.3 million compared with US$0.5 million for the comparative period in 2013. Accruing performance fees1 for 2014 which have not crystallised were US$0.5 million compared with US$5.9 million as at the same date in 2013.

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1Performance fees accrue throughout the reporting 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

In the absence of unforeseen circumstances, the Group intends to declare an interim dividend in respect of the six months to 30 June 2014. Further details will be provided in the interim results announcement planned for 16 September 2014.

Summary

Emerging markets have returned a positive performance over the six month period with gains in the second quarter overcoming negative returns in the first, the low point being in February. The MSCI Emerging markets index was up by 6.6% for the quarter resulting in a 6.1% (in US$) gain over the full half year. This turnaround follows six months of heavy and almost continuous selling by mutual funds and suggests that sentiment may be turning. Investors are adjusting to the ending of super-easy monetary policy in the US, with emerging currencies recovering from weakness of the previous nine months, while political risk has reduced following the BJP' victory in India as well as elections in South Africa, Turkey and Indonesia.

Over the period, four of the nine Magna sub-funds were in the top half of their FactSet Morningstar peer group. The overall performance in the institutional funds business was lower than the broader market performance, because a number of the largest mandates are focused on Eastern Europe or Russia. These were the markets most affected by the crisis in Ukraine, which showed signs of abating towards the end of the half.

The positive net inflows into the Magna funds over the first half of the year are predominantly due to subscriptions into the Magna Emerging Markets Dividend Fund with net inflows also achieved into MENA and Frontier funds. The institutional business was impacted by rebalancing of existing mandates, together with outflows from sub advisory business. The OCCO Eastern European Fund had net inflows as capacity from earlier redemptions was filled.

Outlook

During the year to date, emerging markets have performed similarly to developed markets after a sustained period of underperformance. The industry has reported outflows from dedicated emerging markets funds over the period although this trend has started to reverse in the most recent quarter. While economic growth in some countries may be subdued, the outlook for many is improving. From a bottom up perspective, we see evidence of more realistic earnings expectations, which should help share prices in the asset class.

The Group has again seen net inflows in a challenging environment and has achieved modest growth in AuM. The current level of AuM remains below that required to ensure sustainable profits on a recurring management fee basis and the generation of performance fees during the remainder of the year will be a significant factor in determining full year profit levels.

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