CCAP.L Regulatory News (CCAP)

11 July 2012

Interim Management Statement for the Six Months Ended 30 June 2012

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 18 September 2012.

Key highlights and Group AuM

§ As at 30 June 2012, Group AuM were US$2.3 billion, down by 2.2% since 1 January 2012;

§ Net management fees of US$9.7 million, down 7.6% on the previous six months; and

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

The table below sets out the Group's AuM as at 30 June 2012 and the movements experienced in each product range in the period since 1 January 2012.

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 2012

Net management fees receivable were US$9.7 million compared with US$10.5 million for the previous six months and US$12.1 million for the comparable period of 2011, reflecting the lower average AuM offset in part by an increase in net margin in the first half of 2012.

Crystallised performance fees were US$0.9 million compared with US$0.1 million for the comparative period in 2011.

Accruing performance fees1 for 2012 which have not crystallised were US$3.5 million compared with US$1.5 million as at the same date in 2011.

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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.

Summary

After a strong opening two months of the year, emerging markets softened over the remainder of the first half, as macroeconomic data from most major economies of the world came below expectations. This in turn increases the likelihood that earnings forecasts, both in developed and emerging economies will be revised downwards, although valuations in the emerging markets already appear to have discounted this outcome. Oil importing Turkey, whose market rose 28% over the six months in US$, was one of the best performers, while amongst the larger markets Brazil lagged, with a decline of 8%.

Over the period, the relative performance of Charlemagne's equity strategies was strong, with six of the eight Magna sub-funds in the top half of their FactSet Morningstar peer group comparisons and none in the bottom quartile.

There have been positive net inflows into the Magna funds over the first half of the year particularly into the Latin American and GEMs Dividend strategies. Institutional mandates experienced outflows mainly in the first quarter which was partially offset in the second quarter with the acquisition of a new US$130 million institutional Latin American mandate. The OCCO Eastern European Fund reopened during the period and the US$120 million new capacity has been fully allocated with US$70 million still to be invested in the third quarter. The fund has therefore been closed once again to new investors.

The trading environment remains challenging, with markets volatile, investor confidence fragile and fund flows subdued. The Group has negotiated these conditions well; achieving the key objective of making money for our investors, but overall reduced asset values has had a direct impact on group revenues. We have continued to improve operational efficiency and to take action on costs, where such measures are not to the detriment of delivering investment performance for clients, but market values will need to rise in order for the group to see meaningful levels of profitability from recurring fee sources.

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