CCAP.L Regulatory News (CCAP)

12 Jan 2007 07:00

Charlemagne Capital Limited12 January 2007 12 January 2007 Charlemagne Capital Announces Unaudited Revenues and Assets under Management ("AuM") for the year ended 31 December 2006 Charlemagne Capital Limited ("Charlemagne" or the "Group") today issues atrading update for year ended 31 December 2006 in advance of the auditedpreliminary results, scheduled to be announced on 13 March 2007. Highlights • Group AuM of US$4.65 billion • Net management fees increased by 40% to US$38.1 million • Net performance fees for the second half of US$24.8 million The key revenue items and AuM for the financial year which ended on 31 Decemberare set out below. Unaudited revenue numbers for the year ended 31 December 2006 Year ended 31 Six months ended 31 Year ended 31 December 2006 December 2006 December 2005 (unaudited) (unaudited) (audited) US$m US$m US$m________________________________________________________________________________Net management fees 38.1 17.1 27.3Net performance fees 51.6 24.8 60.6Other income 1.7 1.6 2.9________________________________________________________________________________Total Revenue 91.4 43.5 90.8________________________________________________________________________________ Performance fees accrue throughout the accounting period in the accounts of eachrespective fund. It is the Group's accounting policy only to recogniseperformance fees as they crystallise at the year end of the relevant fund or, incertain cases, on redemption. As at 31 December 2006, accrued performance feeswhich had not crystallised were US$9.8 million (2005: US$20.9m). Levels ofaccrued performance fees at any particular time should not be seen asnecessarily indicative of the eventual crystallised figures, especially inperiods of above average market volatility. All values in relation to 2006 contained in the above table are unaudited andmay be subject to adjustment during the audit process. Group AuM totals US$4.65 billion as at 2 January 2007(i) After allowing for the planned withdrawal of Novy Neft monies(ii) of US$440million or 10.8% of the opening AuM during 2006, Group AuM has increased by24.5% or US$1,001 million during the year. As at 2 January 2007, the total AuMstood at US$4,645 million. This represents a year on year increase of US$561million or 13.7% without making any adjustment for the Novy Neft capital return. The table below sets out the Group's AuM as at 2 January 2007 and the movementsexperienced in each product range during 2006. 2 January 1 January 2006 Net Novy Neft Net 2007 Movement AuM subscriptions reorganisation performance AuM in Year (US$m) (US$m) (%) (US$m) (%) (US$m) (%) (US$m) (%)__________________________________________________________________________________________Magna 988 (67) (6.8%) 59 6.0% 275 27.9% 1,255 27.0%OCCO 254 52 20.5% - - 27 9.6% 333 31.1%Institutional 1,998 4 0.2% 77 3.9% 506 24.8% 2,585 29.4%Specialist 844 16 1.9% (576) (68.2%) 188 33.3% 472 (44.1%)__________________________________________________________________________________________Total 4,084 5 0.1% (440) (10.8%) 996 25.8% 4,645 13.7%__________________________________________________________________________________________ Dividend policy As stated previously, the Directors intend to adopt a progressive dividendpolicy that reflects the long-term earnings and cash flow potential of theGroup. In the absence of unforeseen circumstances, the Group intends to declareboth a second ordinary interim dividend (first interim dividend US 2.10 centsper share) as well as a second special dividend (first special dividend US 1.65cents per share) in respect of the year ended on 31 December 2006. Furtherdetails will be provided in the audited preliminary results announcement. Share Repurchases Buying back shares is one of the mechanisms by which the Group seeks to manageits capital structure and return surplus capital to shareholders. During theperiod since listing on 4 April 2006, the Group has repurchased on market forcancellation, shares representing 1.2% of the company's issued share capital atan average price of 68p and a total cost of US$4.7 million. The Group willcontinue to buy back shares as it deems appropriate subject to not being in aclosed period for trading. The current such period will expire once the auditedpreliminary results are announced on 13 March 2007. ________________________________________________________________________________ (i) Data is reported as at the first business day of the following period inorder to capture all subscription and redemption orders placed during the periodbut not processed until the next dealing date for the funds concerned. AuM datais net of any crossholdings and is unaudited and may be subject to adjustmentduring the audit process.(ii) Novy Neft and Novy Neft II ("Novy") are Bermudian companies listed on theBermuda Stock Exchange. Novy Neft was launched in November 2003 and Novy Neft IIin February 2004 with the objective of investing in local Gazprom shares viastructured products. In December 2005, and as highlighted at the time of theCharlemagne IPO, Gazprom received legal permission to allow direct foreigninvestment into local Gazprom shares and, as a result, the two funds have beenrestructured during June 2006. As at 2 January 2007, AuM within Novy has reducedto US$45 million which may roll off over time. Novy generates an annualmanagement fee of 1 per cent and no performance fees. The positive fundattribution to Magna and Institutional as a result of the Novy Neftre-organisation is caused by the unwinding of shareholdings by funds in thesecategories in Novy. Enquiries: Charlemagne Capital Tel. 020 7518 2100Jayne Sutcliffe, Chief ExecutiveDavid Curl, Finance Director & Head of Investment Smithfield Consultants Tel. 020 7360 4900John KielyGeorge Hudson Notes to Editors: Charlemagne is a specialist emerging markets equity investment management group.Charlemagne Capital Limited was admitted to the AIM market of the London StockExchange on 4 April 2006. Charlemagne's product range comprises mutual funds, hedge funds andinstitutional and specialist fund products primarily covering GEMs, EasternEurope, Latin America and Asia. Charlemagne Capital employs a range ofinvestment strategies including: long only, long/short, structured products andprivate equity. Charlemagne Capital's funds aim to exploit the inefficiencies inthe market via a strict bottom up approach and focused stock selection. Through the strong long-term investment performance track record of itsprincipal funds, Charlemagne has established itself as a market leader inemerging markets investment management. Its performance has been recognisedthrough numerous awards and top rankings for its funds, including the 2005Standard and Poor's 5-year best performing fund award in Austria, the 2006 SwissLipper Leaders 5-year award winner for Emerging Markets Europe and an AAA-ratingby Standard & Poor's for its Magna Eastern European Fund (a sub-fund of MagnaUmbrella Fund Plc). This announcement is not for publication or distribution to persons in theUnited 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, asamended). Neither this announcement nor any copy of it may be taken ortransmitted into Australia, Canada or Japan or to Canadian persons or to anysecurities analyst or other person in any of those jurisdictions. Any failure tocomply with this restriction may constitute a violation of United States,Australian, Canadian or Japanese securities law. The distribution of thisannouncement in other jurisdictions may be restricted by law and persons intowhose possession this announcement comes should inform themselves about andobserve any such restrictions. This announcement contains certain forward-looking statements with respect tothe financial condition, results of operations and businesses of the Group.These statements and forecasts involve risk and uncertainty because they relateto events and depend upon circumstances that will occur in the future. There area number of factors that could cause actual results or developments to differmaterially from those expressed or implied by these forward-looking statementsand forecasts. Nothing in this announcement should be construed as a profitforecast. This statement is aimed at providing estimates regarding revenue and tradingconditions experienced by Charlemagne Capital Limited in the year ended December31 2006. The unaudited data contained in this statement are currentlyprovisional and all such data are subject to change and may differ materiallyfrom the final numbers that will be reported on 13 March 2007. This statement isproduced in order to provide greater disclosure to investors and potentialinvestors of currently expected outcomes, and to ensure that they all receiveequal access to the same information at the same time. This information is provided by RNS The company news service from the London Stock Exchange