Charlemagne Capital, a specialist emerging-markets fund manager, suffered an 11.6% drop in assets under management during the first half and a 29% decline in operating profits, which it blamed on adverse market conditions.

The profits fall was primarily due to an 80% decline in the company's performance fee revenue, which fell to $3.3m (€2.3m). During the six months to June 30 2007, the company made $16.4m from such fees, which are levied only when performance targets are met.