CCAP.L Regulatory News (CCAP)

10 Jul 2007 07:00

Charlemagne Capital Limited10 July 2007 10 July 2007 Charlemagne Capital Announces Unaudited Revenues and Assets under Management for the Six Months Ended 30 June 2007 Charlemagne Capital Limited ("Charlemagne" or the "Group") sets out below thekey revenue items and Assets under Management ("AuM") for the first half of itscurrent financial year. It is expected that the interim financial results willbe announced on 3 September 2007. Group AuM • Group AuM total up 9.8% since 1 January 2007 to US$5.1 billion as at 2 July 2007(i) • Group AuM total up 27.6% since 3 July 2006 (US$4.0 billion) During the first half, Charlemagne successfully launched three new fundproducts: Naya Bharat Property Company, European Convergence Development Companyand the Magna Africa Fund which have raised a combined US$205 million. The table below sets out the Group's AuM as at 2 July 2007 and the movementsexperienced in each product range in the period since 1 January 2007. 1 January 2007 Net Reorganisation Net 2 July Movement subscriptions performance 2007 in AuM (US$m) (US$m) (%)(US$m) (%) (US$m) (%) AuM (US$m) period(%)------- ------- ------ ------ ------ ------ ------- ------ --- --------- --------Magna 1,255 (22) (1.8%) (142) (11.3%) 194 16.5% 1,285 2.4%OCCO 333 17 5.1% - - 44 12.9% 394 18.3%Institutional 2,585 (293) (11.3%) 147 5.7% 306 12.2% 2,745 6.2%Specialist 472 178 37.7% (40) (8.5%) 67 12.4% 677 43.4%------- ------- ------ ------ ------ ------ ------- ------ --- --------- -------- Total 4,645 (120) (2.6%) (35) (0.8%) 611 13.4% 5,101 9.8% ------- ------- ------ ------ ------ ------ ------- ------ --- --------- -------- Key areas of movement in AuM during the period included: 1. Magna Africa Fund launch (Magna), raising US$70m.2. "Reorganisation" reflects significant movements between categories at the request of the investing institutions comprising transfers totalling US$142m from Magna into new segregated accounts (Institutional) by two of the Group's institutional clients and the final liquidation of the Novy Neft (Specialist) product range, leading to net redemptions of US$35m.3. The launch of Naya Bharat Property Company (Specialist), raising US$57m.4. Capital raising and listing on AIM of European Convergence Development Company (Specialist), raising US$78m. (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. Charlemagne has continued to develop its sales effort and has extended thedistribution of its products into the Middle East. The Group has also made goodprogress on the marketing of its institutional global emerging market equityproduct. Unaudited revenue numbers for the six months ended 30 June 2007 Net management fees receivable were US$18.9 million compared with US$20.9million for the comparative period in 2006, primarily due to higher monthlyaverage AuM in the first half of 2006. Total performance fees (both crystallised and accruing) were US$50.4 millioncompared with US$27.1 million for the first half of 2006. Crystallisedperformance fees were US$16.7 million compared with US$26.8 million for thecomparative period in 2006. Accruing performance fees which have notcrystallised were US$33.7 million compared with US$0.3 million as at the samedate in 2006. Performance fees accrue throughout the accounting period in the accounts of eachrespective fund. It is the Group's accounting policy only to recognise suchrevenues as they crystallise at the year-end date of the relevant fund or, incertain cases, on redemption. Levels of accrued performance fees at anyparticular time should not be seen as necessarily indicative of the eventualcrystallised figures, especially in periods of above average market volatility. The Board of Charlemagne is pleased with the financial performance of the Groupin the first half and remains positive on its prospects in the second half ofthe year, subject to market conditions. Dividend policy In the absence of unforeseen circumstances, the Group intends to declare anordinary interim dividend as well as a special dividend in respect of the sixmonths to 30 June 2007. Further details will be provided in the interim resultsannouncement. Share Repurchases During the first six months of 2007, the Group repurchased and cancelled 1.75%of the company's issued share capital at a total cost of US$7.86 million. Thisbrings the total number of shares repurchased since listing to 8,806,900 or3.05% of current outstanding shares. Buying back shares is one of the mechanismsby which the Group seeks to manage its capital structure and return surpluscapital to shareholders. The Group will continue to buy back shares as it deemsappropriate. Market Background Over the last year, the emerging markets equity sector has been experiencing anunusual disparity between the underlying market performance and fund flows. Inthe twelve months to 31 May 2007, the MSCI Global Emerging Markets Index hasrisen by c. 35% whilst there have been very low net inflows of US$700 million(sector size US$540 billion). In line with the industry, Charlemagne has experienced net flows into Asian andLatin American funds, but overall AuM have been impacted by industry outflowsfrom EMEA. This is particularly the case for the lower margin white label EastEurope accounts. Emerging stock markets continued to trend higher over the first six months ofthe year, apart from a marked correction in late February / early March, asfears of a further tightening of US monetary policy threw doubts over continuedglobal expansion in general and rising property markets in particular. Againstan essentially benign economic and political backdrop, together with growth incorporate profits, the emerging stock markets soon resumed their upward trend. The Chinese stock market saw significant volatility but underlying investorsentiment remains firm. Elsewhere in Asia economies are increasingly moving froman export focus to greater emphasis on capital investment and infrastructureexpenditure, supporting consumer spending. Stock markets across emerging Europe have also shown some volatility over thepast six months, due to the gyrations of energy prices and concerns over Russia's international relations. However, investor appetite for risk remained strong,as illustrated by a number of large public offerings that were broadlysuccessful. Latin America's stock markets returned the strongest performance over the pastsix months and this has been matched by the flow of funds into the region and anincrease in the number of IPOs. Economies across Africa continue to mature, and,although further down the development curve, progress in many countries has beenencouraging. As economic development continues, the region is likely to attractfurther funds as investors seek out the greatest growth potential. ENDS Enquiries: Charlemagne Capital Tel. 020 7518 2100Jayne Sutcliffe, Chief ExecutiveDavid Curl, Finance Director & Head of Investment Smithfield Consultants Tel. 020 7360 4900John KielyGeorge Hudson 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 CharlemagneCapital Group. These statements and forecasts involve risk and uncertaintybecause they relate to events and depend upon circumstances that will occur inthe future. There are a number of factors that could cause actual results ordevelopments to differ materially from those expressed or implied by theseforward-looking statements and forecasts. Nothing in this announcement should beconstrued as a profit forecast. This statement is aimed at providing information regarding the Assets underManagement on which revenue is derived by Charlemagne Capital Limited. Theunaudited data contained in this statement are currently provisional and allsuch data are subject to change. This statement is produced in order to providegreater disclosure to investors and potential investors and to ensure that theyall receive equal access to the same information at the same time. This information is provided by RNS The company news service from the London Stock Exchange