CCAP.L Regulatory News (CCAP)

12 July 2013

Interim Management Statement for the Six Months Ended 30 June 2013

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 17 September 2013.

Key highlights and Group AuM

§ As at 30 June 2013, Group AuM were US$2.4 billion, down by 8.1% since 1 January 2013;

§ Net management fees of US$11.9 million, up 10.2% on the previous six months;

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

·; Strong relative performance in key investment strategies.

The table below sets out the Group's AuM as at 30 June 2013 and the movements experienced in each product range in the period since 1 January 2013.

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 2013

Net management fees receivable were US$11.9 million compared with US$10.8 million for the previous six months and US$9.7 million for the comparable period of 2012, reflecting the higher average AuM over the period of US$2.6 billion compared with US$2.4 billion in 2012 and a small increase in net margin arising from the greater proportion of OCCO higher fee classes that have been present for the full period. OCCO management fees, which are subject to a minority interest, account for nearly 44% of total net fee income during the period.

Crystallised performance fees were US$0.5 million compared with US$0.9 million for the comparative period in 2012. Accruing performance fees1 for 2013 which have not crystallised were US$5.9 million, principally from OCCO, compared with US$3.5 million as at the same date in 2012.

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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 2013. Further details will be provided in the interim results announcement planned for 17 September 2013.

Summary

Emerging markets have returned a negative performance over the period with the greatest falls in value occurring in June, when the MSCI Emerging markets index was down by 6.4% for the month resulting in a 9.6% ( in US$) drop over the full half year.

Over the period, the relative performance of Charlemagne's key equity strategies has been strong, with seven of the nine Magna sub-funds in the top half of their FactSet Morningstar peer group. Notably, theMagna Emerging Markets Dividend Fund, which has a full three year track record as of June 2013, has achieved first quartile performance over all periods since inception and has outperformed the MSCI EM index by 7.6% for the year to date with lower volatility than the index.

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. The institutional business benefitted from the acquisition of a new US$45 million Eastern European mandate and US$60 million from existing mandates. However a partial asset reallocation from a long standing mandate, together with outflows from sub advisory business caused the overall net flows to be negative in this category. The OCCO Eastern European Fund also suffered net outflows as some investors reassessed their exposure to the asset class.

Outlook

In the last quarter of 2012, emerging markets began to outperform developed markets after a period of two years when they had lagged. Inflows returned to the asset class and the outlook was optimistic. The outperformance has reversed in 2013 as not only have emerging markets produced negative returns, but they have also again underperformed developed markets. Momentum has stalled as investors have reassessed asset allocations and industry flows have been negative. Despite strong relative performance our asset values have consequently fallen over the period. Although the Group remains profitable overall in the year to date, an increase in AuM is required in order to ensure sustainable profits on a recurring management fee basis. Under current circumstances, the generation of performance fees during the remainder of the year will be a significant factor in determining full year profit levels. We are reviewing the cost base but are committed to preserving the necessary infrastructure required to service our investors and for future expansion.

We believe that, although markets will remain volatile now that the issue of reduced Central Bank support to liquidity is out in the open, there are still reasons for a positive outlook. Equity markets have overreacted and have quickly over discounted a worst possible outcome. Deflationary forces are still such that meaningful interest rate hikes are a long way off and valuations are sufficiently below average to suggest returns from such levels should typically be strong over subsequent 12-18 month periods.

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