CCAP.L Regulatory News (CCAP)

10 Jan 2008 07:00

Charlemagne Capital Limited10 January 2008 10 January 2008 Charlemagne Capital Announces Unaudited Revenues and Assets under Management ("AuM") for the year ended 31 December 2007 Charlemagne Capital Limited ("Charlemagne" or the "Group") today issues atrading update for year ended 31 December 2007 in advance of the audited resultsannouncement scheduled for 27 February 2008. Highlights for the 12 months ended 31 December 2007 • AuM increased by 40% to US$6.5 billion • Total revenue increased by 48% to US$135.4 million • Net management fees increased by 13% to US$43.5 million • Net performance fees increased by 66% to US$85.5 million The key revenue items and AuM for the financial year which ended on 31 December2007 are set out below. Values in relation to 2007 are unaudited and may besubject to adjustment during the audit process. Unaudited revenue numbers for the year ended 31 December 2007 Year ended Six months ended Year ended Six months ended 31 December 2007 31 December 2007 31 December 2006 31 December 2006 (unaudited) (unaudited) (audited) (unaudited) US$m US$m US$m US$mNet management fees 43.5 24.5 38.6 17.6Net performance fees 85.5 69.1 51.4 24.6Other income 6.4 1.4 1.2 1.1Total Revenue 135.4 95.0 91.2 43.3 In accordance with the Group's accounting policy, accrued fund performance feesare not recognised by the Group until they crystallise either at the year end ofthe relevant fund or on redemption. As at 31 December 2007, accruing, butuncrystallised, performance fees which may or may not become payable during 2008amounted to US$17.6 million (2006: US$9.8m). The Group is well positioned to continue to deliver on its stated strategy andto benefit from demand for emerging market products. Group AuM as at 2 January 2008(i) During 2007, Group AuM increased by 39.9% or US$1,853 million to US$6.5 billionas at 2 January 2008. The table below shows the distribution of the Group's AuM across it productranges as at 2 January 2008 and the movements experienced during 2007. 2 January Net Fund Wind Ups & Net 2 January 2007 Subscriptions Reorganisations Performance 2008 Movement AuM (ii) AuM in Year (US$m) (US$m) (%) US$m) (%) (US$m) (%) (US$m) (%)------------ ------- ------ ------ ------ ------ ------ ------ -------- --------Magna 1,255 96 7.6 (142) (11.3) 441 35.8 1,650 31.5%OCCO 333 57 17.1 83 23.0 473 41.7%InstitutionalWhite Label 2,259 (235) (10.4) 640 29.9 2,663 17.9%InstitutionalMandates 326 430 131.9 147 45.1 246 40.0 1,149 252.5%Specialist 472 39 8.3 (129) (27.3) 180 42.2 563 19.1%------------ ------- ------ ------ ------ ------ ------- ------ -------- --------Total 4,645 387 8.3 (124) (2.7) 1,590 33.3 6,498 39.9%------------ ------- ------ ------ ------ ------ ------- ------ -------- -------- (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) "Fund Wind Ups & Reorganisations" reflects significant movements betweencategories made at the request of the investing institutions comprising threemain transactions: transfers totalling US$142m from Magna into new segregatedaccounts (Institutional Mandates) for two of the Group's institutional clients;the final liquidation of the Novy Neft product, leading to redemptions of US$40m(Specialist), with US$5m being transferred to a segregated institutional clientaccount (Institutional Mandates); and the third transaction being the partialliquidation of assets of ECPC in anticipation of returning capital toshareholders, US$89m (Specialist). Dividend policy and Share Repurchases The Directors have maintained a dividend policy that seeks to reflect thelong-term earnings and cash flow potential of the Group. In the absence ofunforeseen circumstances, the Group intends to declare both a second ordinaryinterim dividend (first interim dividend US 2.20 cents per share) as well as asecond special dividend (first special dividend US 1.65 cents per share) inrespect of the year ended on 31 December 2007. Further details will be providedin the audited results announcement. Buying back shares for cancellation is one of the mechanisms by which the Groupseeks to manage its capital structure and return surplus capital toshareholders. During the year to 31 December 2007, the Group repurchased andcancelled shares representing 3.0% of the company's issued share capital as atthe beginning of the year, at an average price per share of 71.85p and a totalcost of US$12.68 million. Results presentation There will be an analyst presentation to discuss the results on 27 February 2008 Enquiries: Charlemagne Capital Tel. 020 7518 2100Jayne Sutcliffe, Chief ExecutiveDavid Curl, Finance Director Smithfield Consultants Tel. 020 7360 4900John KielyGeorge HudsonTom Hardman 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 white labels and institutional mandates and specialist fundproducts primarily covering GEMs, Eastern Europe, Latin America and Asia.Charlemagne Capital employs a range of investment strategies including: longonly, long/short, structured products and private equity. Charlemagne Capital'sfunds aim to exploit the inefficiencies in the market via a strict bottom upapproach 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 2007. 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 27 February 2008. This statementis produced 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