Charlemagne AUM fall in first half

Date: Friday, July 9, 2010
Author: Cecilia Valente, Reuters

* Assets under management down 9.5 pct

* Net management fees up 24 pct year on year (Adds details)

LONDON July 9 (Reuters) - Emerging markets equity specialist Charlemagne Capital (CHAR.L) said on Friday it had posted a sharp fall in assets under management in the first half of the year due to negative markets and outflows.

The boutique said in a statement that assets under management stood at $2.8 billion at the end of June, a 16 percent increase compared with the same period last year but a 9.5 percent decline since the beginning of the year.

The result is in line with a forecast issued by Singer Capital Markets.

In March Charlemagne said it had seen a recovery in client money flows at the beginning of the year. [ID:nLDE62A069] but since March emerging markets indices fell by around 8 percent.

The group said it had experienced "modest net outflows" in the first half but added that their OCCO hedge fund range was "attracting strong and continuing inflows", while the group had recommenced fund raising for property specialist investments.

Broker Singer said outflows would not be "substantial". Net management fees were up 24 percent on same period last year and 1 percent on the previous six months at $10.4 million compared to $8.4 million last year.

Charlemagne said it will pay ordinary and a special interim dividend for the first half of the year, adding further details would be given when the interim financial results are published in September.