CCAP.L Regulatory News (CCAP)

11 January 2011

Charlemagne Capital Announces Unaudited Revenues and Assets under Management and Advice ("AuM") for the year ended 31 December 2010

Charlemagne Capital Limited ("Charlemagne" or the "Group") today issues a trading update for year ended 31 December 2010 in advance of the preliminary results announcement scheduled for 4 March 2011.

Key figures for the 12 months ended 31 December 2010

·; AuM was US$3.5 billion, an increase of 26.1% since June and 14.1% over the full year.

·; Net management fees in the second half of 2010 were 12.5% higher than those for the first half.

·; Net management fees for the year were US$22.1 million, an increase of 18.8%.

·; Net performance fees for the year were US$6.1 million, an increase of 45.2%.

·; Total revenue for the year was US$28.3 million, an increase of 18.9%.

·; Additional non recurring income of US$3.8 million, net of applicable costs, was recorded in 2010 in relation to a private equity vehicle.

·; Ordinary interim dividends of 0.6 US cents in respect of 2009 and 0.4 US cents in respect of 2010 have been paid during the year.

·; Special interim dividends of 0.75 US cents in respect of 2009 and 1.1 US cents in respect of 2010 have been paid during the year.

·; Maintained financial strength with cash balances held of US$24 million.

Key Financial Items for the year ended 31 December 2010

The key financial items and AuM for the financial year which ended on 31 December 2010 are set out below. Values in relation to 2010 are unaudited and may be subject to adjustment during the audit process.

Unaudited revenue numbers for the year

In accordance with the Group's accounting policy, accrued fund performance fees are not recognised by the Group until they crystallise either at the year end of the relevant fund or on redemption. As at 31 December 2010, there were accruing, but uncrystallised, performance fees of US$0.3 million (2009: US$ nil). 

Actual performance fees crystallised in 2010 were US$4.2 million earned from OCCO (2009: US$ 3.3 million) and US$1.9 million from other funds (2009: US$ 0.9 million). 

As reported in the interim financial statements, additional non recurring performance fee income of US$3.8 million, net of applicable costs, was earned in 2010 in relation to a private equity vehicle. As in 2005 and 2009, when the bulk of the income from this vehicle was recognised, this income will be treated as non-operational in the Group's published figures in order not to distort regular income trends.

As at 31 December 2010, the Group maintained its financial strength with unaudited net assets of approximately US$27 million (2009: US$27 million) and cash balances of approximately US$24 million (2009: US$22 million).

The Directors have adopted a dividend and capital return policy that seeks to reflect the long-term earnings and cash flow potential of the Group. Buying back shares for cancellation is one of the mechanisms by which the Group has sought to manage its capital structure and return surplus capital to shareholders. During the year to 31 December 2010, it has not been considered appropriate to repurchase any shares.

Group AuM as at 4 January 2011(i)

The table below shows the distribution of the Group's AuM across it product ranges as at 4 January 2011 and the movements experienced during 2010.

(i) Data is reported as at the first business day of the following period in order to capture all subscription and redemption orders placed during the period but not processed until the next dealing date for the funds concerned. AuM data is net of any crossholdings and is unaudited and may be subject to adjustment during the audit process.

(ii) "Reorganisations" reflects significant movements between categories at the request of the investing institutions comprising one main transaction; transfers totalling US$60m from Magna into a new class of shares of an existing fund for one of the Group's institutional clients.

(iii) The percentage for net performance is calculated based upon the average AuM for the year.

Summary

Emerging markets have recovered in the second half of 2010 leading to an increase in asset values over the year. Investment performance for the Group has been in line overall and strong in certain areas. The second half of the year has seen net inflows into the Magna mutual fund range and significant inflows into OCCO resulting in it reaching capacity and being closed to new investors for the time being. The White Label business experienced net outflows, particularly in the second half and the last quarter has seen portfolio rebalancing by clients within Institutional Mandates.

Consensus opinion for emerging markets remains positive with an optimistic view on possible gains in equity values due to the potential superior economic and corporate growth within these markets. The Group considers that emerging markets will therefore continue to attract inflows and that, given its specialisation, reputation and experience in this area, it is well placed to benefit from this trend.

Charlemagne remains well-capitalised with substantial cash balances and has invested in strengthening and building resources within the business. In the absence of unforeseen circumstances, it is intended that a second ordinary and special dividend will be declared in respect of 2010. Further details will be provided in the final results announcement.

Results presentation

It is intended that there will be an analyst presentation on 4 March 2011 to discuss the results for 2010.

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 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 estimates regarding revenue and trading conditions experienced by Charlemagne Capital Limited in the year ended 31 December 2010. The unaudited data contained in this statement are currently provisional and all such data are subject to change and may differ materially from the final numbers that are expected to be reported on 4 March 2011. This statement is produced in order to provide greater disclosure to investors and potential investors of currently expected outcomes, and to ensure that they all receive equal access to the same information at the same time.