CCAP.L Regulatory News (CCAP)

7 July 2011

Charlemagne Capital Announces Unaudited Revenues and Assets under Management for the Six Months Ended 30 June 2011

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 13 September 2011.

Key highlights and Group AuM

§ Group AuM US$3.3 billion in total at 30 June 2011, up by 19.3% on June 2010, down 5.5% since 1 January 2011.

§ Net management fees up 16.3% on same period last year and 2.7% on previous six months.

§ Successful fund raising of US$120 million into hedge fund product completed during the period.

§ Declining markets together with net outflows from the long only funds have resulted in an overall fall in AuM during the period.

§ The Group remains well-capitalised and is actively seeking to enhance its Portfolio Advisory team.

The table below sets out the Group's AuM as at 30 June 2011 and the movements experienced in each product range in the period since 1 January 2011.

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 2011

Net management fees receivable were US$12.1 million compared with US$10.4 million for the first six months of 2010, reflecting the higher average AuM in the first half of 2011. Crystallised performance fees were US$0.103 million compared with US$0.126 million (excluding nonrecurring items) for the comparative period in 2010.

Accruing performance fees for 2011 which have not crystallised were US$1.5 million compared with US$2.1 million as at the same date in 2010.

Dividend

In the absence of unforeseen circumstances, the Group intends to declare an Interim dividend in respect of the six months to 30 June 2011. Further details will be provided in the interim results announcement planned for mid-September.

Summary

During the first half of 2011, emerging markets equity returns have been mixed, with commodity prices a key driver. Russia was an early outperformer, although it faded as the period progressed. Conversely, resource importers, such as India, sold off sharply at the start of the year before a more erratic trading pattern emerged from late March onwards. Unsurprisingly, Middle Eastern markets were affected by the falls of the governments in Egypt and Tunisia. Overall, the asset class was barely changed, which meant it has now underperformed North American and European markets over the last nine months. Inflation in emerging markets is likely to remain a concern, but there is increasing evidence that it is levelling off and may start to decline later this year. The emerging market fund industry has seen significant outflows over the period, with inflows being focussed principally into ETFs. This has, in turn, resulted in significant underperformance in smaller companies, where we typically find many of our best ideas. We remain confident that these valuation anomalies will not persist in the medium to longer term.

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