CCAP.L Regulatory News (CCAP)

14 January 2014

Charlemagne Capital Announces Unaudited Revenues and Assets under Management and Advice ("AuM") for the year ended 31 December 2013

Charlemagne Capital Limited ("Charlemagne" or the "Group") today issues a trading update for year ended 31 December 2013 in advance of the results announcement scheduled for 18 March 2014.

Key highlights for the 12 months ended 31 December 2013

· Group AuM US$2.73 billion, an increase of 7.1% in the quarter, 3.8% over the full year and 12.9% since June.

· Total revenue for the year was US$41.3 million, up 34.5% on the prior year.

· Net management fees for the year were US$23.9 million, up 16.6%.

· Net performance fees for the year were US$16.2 million, up 80.0%.

· Interim dividends of 1.0 US cents in respect of 2012 and 0.5 US cents in respect of 2013 have been paid during the year.

· Strong investment performance and net inflows into key investment strategies.

· Financial strength maintained with cash balances held of US$25 million.

Key Financial Items for the year ended 31 December 2013

The key financial items for the financial year which ended on 31 December 2013 are set out below. Values in relation to 2013 are unaudited and may be subject to adjustment during the audit process.

Unaudited revenue numbers for the year

Management fees for the year include US$10.5 million earned from OCCO (2012: US$8.0 million). Performance fees crystallised in 2013 were US$15.6 million earned from OCCO (2012: US$ 8.8 million) and US$0.6 million from other funds (2012: US$ 0.2 million). Of total revenues in the year, 63% derives from the OCCO product.

As at 31 December 2013, the Group maintained its financial strength with unaudited net assets of approximately US$28 million (2012: US$28 million) and cash balances of approximately US$25 million (2012: US$27 million).

Comment

Commenting on 2013 trading Chief Executive, Jayne Sutcliffe said: "2013 was another difficult year for emerging equity markets with significant market volatility during the period and a small fall in the MSCI Emerging Markets Index over the year as a whole. Within this environment, we have produced strong investment performance for our investors; six out of nine Magna funds are in the first quartile over the year and we have achieved top decile one and three year performance for the Global Emerging Market income and growth strategy, demonstrating the quality of our team, and the strength of our stock picking ability.

"We have seen encouraging flows into the Magna funds, notably in the Global Emerging Markets funds, and into Eastern European and Frontiers strategies. Despite the difficult environment for asset raising in our class, the fourth quarter saw net inflows across all fund categories and, with strong underlying performance, we believe we are well positioned to benefit from renewed inflows into emerging markets funds."

Dividend

In the absence of unforeseen circumstances, the Group intends to declare a second interim dividend in respect of the year ended 31 December 2013. Further details will be provided in the results announcement planned for 18 March 2014.

Group AuM as at 2 January 2014(i)

The tables below show the distribution of the Group's AuM across its product ranges as at 2 January 2014 and the movements experienced during the final quarter and the year for 2013.

4th Quarter 2013

Full year 2013

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

Summary

Emerging markets ended the year with a small loss in 2013 (the MSCI Emerging Markets Index was down 2.6%) continuing a trend of underperforming developed markets which has persisted over the last three years and the extent of this underperformance was greater in 2013 than in previous years. Investors were enthused by the prospect of a recovery in richer countries and concerned about the worsening macroeconomic environment in some developing economies. There were also worries that the end of the US Federal Reserve's super-easy money would lead to withdrawals from fixed income markets. At the micro level, too, company profits were affected by increased wage costs - a natural and desirable outcome for the long term development of these countries, as long as they are broadly matched by productivity gains.

The outlook depends on the extent to which the above trends are behind us and are now 'in the price'. In the case of some of the weaker economies, currency declines since the second quarter of last year have already had a positive impact on current accounts. The short term outlook is challenging, but valuations are reasonable and we have confidence that emerging market economies will continue to generate sustainable growth opportunities.

In this difficult environment, there have been substantial net outflows from the industry asset class over the year, reversing the previous year's trend. These were at their highest in the second quarter, coinciding with the worst quarter for market performance, and continued throughout the second half of the year despite improved performance.

In contrast to the general trend, the Group has seen net inflows over the year. It is encouraging that these inflows have been into the core, long funds in line with our asset raising strategy and that there were substantial inflows during the final quarter in a particularly difficult environment for asset gathering. It should be noted that the outflows from the Institutional range of products include US$129 million in respect of white label managed funds where the Group has no control over distribution.

2013 has again been a very strong year for performance in key areas. The emerging market equity income and growth strategy has achieved top decile performance over one and three years in its Morningstar peer group and has grown substantially with net inflows of $240 million over the year. Eight out of nine of the Magna sub funds performed better than their respective median fund for the year, with six providing top quartile performance.

The OCCO fund has again provided consistent investment returns and increased management and performance fees have been generated during the year. Its contribution to the Group's revenue and ultimately financial result is therefore important but it should be noted that profits derived from this source are subject to a 49.9 % minority interest.

The last year has again showed the value of stock picking in emerging markets, as investors distinguish between good and bad companies, and as better businesses - those that create consistent value for shareholders - continue to command a premium valuation. In the absence of a massive beta rally in risk assets, we expect this trend to continue, and thus provide an environment in which our investment process should further add value.

Results presentation

It is intended that there will be an analyst presentation on 18 March 2014 to discuss the results for 2013.

Enquiries:

This announcement is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States of America, Australia, Canada, Japan or South Africa or any other jurisdiction into which the release, publication or distribution would be unlawful. Any failure to comply with this restriction may constitute a violation of United States, Australian, Canadian, Japanese, South African or other securities law. The distribution of this announcement in jurisdictions other than the United Kingdom 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 (or may contain) certain forward-looking statements with respect to the financial condition, results of operations and businesses of the Group. These statements and forecasts are based on Charlemagne's beliefs, assumptions and expectations of the Group's future performance. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to Charlemagne at the date of this announcement or are within its control, that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Data or statements contained in this announcement regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Nothing in this announcement should be construed as a profit forecast or to imply that the earnings of the Company for the current or future financial years will necessarily match or exceed the historical or published earnings of the Group.

This announcement is for information purposes only and shall not constitute an offer to buy, sell, issue or subscribe for, or the solicitation of an offer to buy, sell, issue, or subscribe for, any securities in Charlemagne or any other entity. This announcement is aimed at providing information regarding the Assets under Management on which revenue is derived by Charlemagne. The unaudited data contained in this announcement are currently provisional and all such data are subject to change without notice and, except as required by applicable law, neither Charlemagne nor N+1 Singer assumes any responsibility or obligation to update publicly or review any of the data or statements contained herein.