CCAP.L Regulatory News (CCAP)

13 Jan 2009 07:00



13 January 2009 

Charlemagne Capital Announces Unaudited Revenues and Assets under Management and Advice ("AuM") for the year ended 31 December 2008

Charlemagne Capital Limited ("Charlemagne" or the "Group") today issues a trading update for year ended 31 December 2008 in advance of the preliminary results announcement scheduled for 5 March 2009.

Key figures for the 12 months ended 31 December 2008

Net management fees were US$39.5 million, a decrease of 9%.

Net performance fees were US$3.5 million, a decrease of 96%. 

Total revenue was US$43.4 million, a decrease of 68%.

AuM was US$2.2 billion, a decrease of 66% of which 7.8% was due to net redemptions.

Net Subscriptions in the Institutional Mandate category were US$535 million, or 46.6% of the starting AuM for that category: 

twelve mandates in total for 2008

five further new institutional mandates in the second half of the year, of which four were in the final quarter 

continue to see significant potential for new mandates in this area.

Key Financial Items for the year ended 31 December 2008

The key financial items and AuM for the financial year which ended on 31 December 2008 are set out below. Values in relation to 2008 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 2008, there were no accruing, but uncrystallised, performance fees (2007: US$17.6 million).

As at 31 December 2008, the Group had unaudited net assets of approximately US$26 million (2007: US$57 million) and cash balances of approximately US$28m (2007: US$33 million). 

The Group remains profitable and cash flow generative. 

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 seeks to manage its capital structure and return surplus capital to shareholders. During the year to 31 December 2008, the Group repurchased and cancelled shares representing 1.6% of the company's issued share capital as at the beginning of the year, at a total cost of US$2.6 million. The Group has returned over US$45 million (2007: US$37 million) to shareholders during 2008 by way of dividends and share buy backs. 

Group AuM as at 2 January 2009(i)

The table below shows the distribution of the Group's AuM across it product ranges as at 2 January 2009 and the movements experienced during 2008.

(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) "Fund Wind Ups & Reorganisations" reflects significant movements between categories at the request of the investing institutions comprising two main transactions; transfers totalling US$48m from Magna into new segregated accounts (Institutional Mandates) for two of the Group's institutional clients and an initial capital return to shareholders of European Property Convergence Company plc in January 2008, US$88m (Specialist).

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

Outlook 

The Group expects the effects of the recent difficult market conditions globally will present attractive growth opportunities for the Company's strategies and products. The Group has the experience and expertise to deliver on its strategy through the cycle and remains well positioned to benefit from the inherent demand for emerging market products.

The Group is well-capitalised, has a flexible and lean operational base and continues to invest in strengthening and building the business. 

Results presentation

It is intended that there will be an analyst presentation to discuss the results on 5 March 2009.

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 December 31 2008. 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 5 March 2009. 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.