Shares digital

Most fund managers have been struggling to hold on to assets. But, given the statistics it has provided us in recent months, the story would appear to be different for Charlemagne Capital (CCAP:AIM). Following a rocky patch in November, Charlemagne’s fund range – which is focused on emerging markets – has bounced back in December.

Today (10 January) the company will deliver to the market its trading update for the year ending 31 December. Here we will learn what the overall assets under management (AUM) are at the year end (a combination of fund performance and fund inflows) and the consequential impact on fees and earnings.

The indications point to forecast-beating earnings but given the share price has remained flat over the past six months, hovering around 70p, this is not in the price. Even after November’s performance dip, AUM were still $6.3 billion at 3 December, which was way ahead of the 31 December AUM forecast of $5.6 billion from Katrina Preston at independent broker Landsbanki.

Up until now Preston has refrained from adjusting her earnings forecasts as Charlemage’s funds can display some pretty sharp month-on-month volatility. Most of Charlemagne’s earnings have historically come from performance fees and one month’s poor performance can potentially wipe these out. But December’s strong fund performances (available from Charlemagne's website) should all but guarantee upgrades now.

Shares says: Charlemagne is focused on emerging markets that have not taken the hit experienced by European and US equities.

by: Simon Keane