14th Jan 2014 12:52
LONDON (Alliance News) - Charlemagne Capital Ltd Tuesday said the assets it manages for clients were up 3.8% over its last financial year, bolstered by strong fourth-quarter net inflows, resulting in higher net management and performance fees.
In a trading update ahead of its results for the full-year ended December 31 2013, Charlemagne said it was managing USD2.73 billion of assets at the end of at the end of December, compared with USD2.6 billion for the year before that, and USD2.5 billion at the start of the fourth-quarter.
"We have seen encouraging flows into the Magna funds, notably in the Global Emerging Markets funds, and into Eastern European and Frontiers strategies. Despite the difficult environment for asset raising in our class, the fourth quarter saw net inflows across all fund categories and, with strong underlying performance, we believe we are well positioned to benefit from renewed inflows into emerging markets funds," Jayne Sutcliffe, Chief Executive, said in a statement.
Total revenue for the year ended December 31 amounted to USD41.3 million, up 35%, driven by increases in net management and performance fees.
The emerging markets-focused asset manager has recovered since the time of its half-year results, when it warned that it required an increase in the assets it manages if it was to secure sustainable profits on a recurring management fee basis.
Since then, when assets under management were reported at USD2.4 billion, Charlemagne saw its assets under management increase in both the third and fourth quarters of its last financial year.
However, it wasn't until the fourth-quarter that Charlemagne could boast net inflows - assets under management were bolstered by performance in the third-quarter - which totalled USD135 million, taking net inflows over the year to USD48 million.
According to its half-yearly report, published in September, Charlemagne had seen USD80.0 million in net outflows by that point of its last financial year. Over the third-quarter, Charlemagne saw another USD6 million in net outflows.
In terms of its net performance, Charlemagne had a successful year overall, moving up by USD51 million, with the third and fourth quarters outweighing poor results at the half-year point.
Charlemagne said it intends to declare a second interim dividend for the last full-year, in the absence of unforeseen circumstances.
The asset manager's results for its last financial year are scheduled for March 18.
Charlemagne shares were Tuesday quoted at 15.00 pence, up 0.75 pence, or 5.3%.
By Samuel Agini; [email protected]; @samuelagini
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