16th Sep 2014 08:34
LONDON (Alliance News) - Charlemagne Capital Ltd shares were lower in early trade on Tuesday after the emerging markets asset manager said its pretax profit fell in the first half and said performance fees are unlikely to prove a material contributor to its results for the full year.
Charlemagne shares were down 7.2% to 13.925 pence in early trade on Tuesday.
The company said its pretax profit in the six months to June 30 was down to USD1.2 million from USD1.3 million last year. That came on a slight fall in net performance fees in the period, falling to USD0.3 million from USD0.5 million last year as the group contended with what it called a "challenging" environment for emerging markets.
Assets under management in the period were up to USD2.8 billion on June 30 from USD2.4 billion a year earlier. The June 30 figure was boosted by a 9.7% uptick in assets under management in the second quarter, following a 5.7% decline in the first.
Charlemagne warned in July that assets under management would need to rise in order to ensure sustainable profits for the company. In the same update, the company said its full-year profit will depend on the generation of performance fees in the remainder of the year.
Jayne Sutcliffe, chief executive of Charlemagne, said Tuesday the company is confident that the emerging markets investment environment will improve in the second half, but warned that performance fees, which had been a significant contributing factors to its results in recent years, are unlikely to be a material contributor this year.
The group said it will pay an interim dividend of 0.5 cent per share, the same as last year.
By Sam Unsted; [email protected]; @SamUAtAlliance
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