15th Jul 2014 10:07
LONDON (Alliance News) - Charlemagne Capital Ltd saw its shares decline Tuesday after it said its current level of assets under management is below the level required to ensure sustainable profits, while full-year profit levels will depend on the generation of performance fees during the remainder of the year.
The company's shares were down 6.9% Tuesday morning at 16.00 pence.
The independent asset management company said group assets under management at the end of the first half of the year to June 30, were USD2.8 billion, up 3.6% since January 1. It said net management fees of USD12.4 million were up 3.3% on the previous six months.
However, the company said more growth in assets under management is required.
"The current level of assets under management remains below that required to ensure sustainable profits on a recurring management fee basis and the generation of performance fees during the remainder of the year will be a significant factor in determining full year profit levels," the company said.
Going forward, Charlemagne Capital said that while economic growth in some countries is subdued, the outlook for many is improving.
"From a bottom up perspective, we see evidence of more realistic earnings expectations, which should help share prices in the asset class," the company said.
It said it expects to declare an interim dividend for the six months to June 30.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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