DEBT FINANCING. Charlemagne sees lower second-half management fees

n">(Reuters) - Emerging market equity manager Charlemagne Capital's first-half pretax profit more than halved, mainly due to a weak performance in North America and Europe, and said it expected management fees to be lower in the second half.
"There seems a near-inevitability of a prolonged period of stagnation in developed economies and there is significant volatility and uncertainty as a result ... Volatile market conditions will impair the ability to generate performance fees," the company said in a statement.
Charlemagne (CHAR.L), which manages mutual funds as well as hedge funds investing in Africa, Asia and Latin America, said emerging markets endured their worst month in August since 2008, after share prices fell around the world on fears of an economic meltdown in the U.S and Europe.
January-June pretax profit was $2.1 million (1.3 million pounds), compared with $4.9 million a year ago, with worried clients withdrawing cash from some funds on concerns of a global economic slowdown.
Assets under management stood at $3.3 billion, compared with $2.8 billion a year ago. Net management fees rose to $12.1 million from $10.4 million last year, driven by the growth in assets under management.
Charlemagne also said it would pay an interim dividend of 0.4 cents a share. It paid a dividend of 0.4 cents a share and a special interim dividend of 1.1 cents last year.
However, fund manager Ashmore Group (ASHM.L) saw its pretax profits jump 13 percent after clients looked to its emerging market products to see them through volatile times.
Charlemagne's shares, which have shed about 13 percent in value over the past three months, closed at 16.1 pence on Monday on the London Stock Exchange, valuing the business at 45 million pounds.

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