CCAP.L Regulatory News (CCAP)

9 July 2010

Charlemagne Capital Announces Unaudited Revenues and Assets under Management for the Six Months Ended 30 June 2010

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 7 September 2010.

Key highlights and Group AuM

§ Group AuM US$2.8 billion in total at 30 June 2010, up by 16% on June 2009, down 9.5% since 1 January 2010.

§ Net management fees up 24% on same period last year and 1% on previous six months.

§ Overall decline in emerging markets in the first half of the year following the fall in global equities markets during the second quarter.

§ The Group remains well-capitalised and is continuing to invest in building the business.

The table below sets out the Group's AuM as at 30 June 2010 and the movements experienced in each product range in the period since 1 January 2010.

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 2010

Net management fees receivable were US$10.4 million compared with US$8.4 million for the first six months of 2009, reflecting the higher average AuM in the first half of 2010.

Crystallised performance fees were US$3.8 million compared with US$0.3 million for the comparative period in 2009. As previously announced, US$3.7 million of crystallised performance fees received in the period relate to the distribution of the net assets of SWR Investments Limited, a jointly controlled entity now in the process of being wound up.

Accruing performance fees for 2010 which have not crystallised were US$2.1 million compared with US$0.9 million as at the same date in 2009. Performance 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 Ordinary and a Special Interim dividend in respect of the six months to 30 June 2010. Further details will be provided in the interim results announcement.

Summary

The period has seen declines in emerging market indices and the Group has experienced modest net outflows during the period. However it is encouraging to note that the OCCO product is attracting strong and continuing inflows and the Group has again recommenced fund raising for property (specialist) investments. Outflows within the institutional mandate category were largely caused by the enforced rebalancing of mandates and there were no client losses. In the last week of the half year, two new Magna sub funds were launched, the Undervalued Assets Fund and the Emerging Markets Dividend Fund.

Emerging market equities lost ground in the second quarter of this year following the recovery made in 2009 and the first quarter of 2010. The asset class as a whole lost 8% in the quarter and around 6% in the first half of the year. This is due to a combination of global and market-specific factors. Globally, fears of a broadening of the Greek sovereign crisis frightened some investors. Furthermore, investors continued to fret about the slowing Chinese economy which negatively impacted commodities markets. There is however growing evidence that the policy tightening in China is succeeding and may be coming to a close.  Charlemagne's investment performance in key areas has improved in the last twelve months and we are confident that this, together with some degree of normalisation in markets, will lead to improved business flows going forward.

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