22nd Sep 2015 11:36
LONDON (Alliance News) - Fund manager Charlemagne Capital Ltd on Tuesday posted a fall in underlying pretax profit for the first half as its assets under management fell amid a challenging backdrop for emerging markets.
The company said its pretax profit in the first half rose to GBP3.3 million from USD1.1 million a year earlier, thanks to an exceptional tax credit gain. The group said its interim dividend has been maintained at 0.5 US cents per share.
Stripping out one-offs, however, Charlemagne's profit fell to USD51,000 in the recent half from USD1.2 million a year before. Assets under management dipped to USD2.1 billion from USD2.2 billion, while net management fees fell to USD10.7 million from USD12.5 million.
Charlemagne said it was hit by falls in emerging market equities in the half, following renewed concerns about the timing and extent of any monetary policy shift in the US and by the slowdown in the Chinese economy.
"Over the longer term, almost all of our strategies have produced strong relative performance, which should leave us in a good position when sentiment and flows reverse. We are optimistic that our strong performance will continue, especially once markets revert, to rewarding the well-managed, consistently profitable quality companies, which are the focus of our research," said Jayne Sutcliffe, Charlemagne's chief executive.
Shares in Charlemagne were down 2.6% on Tuesday at 9.25 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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