UK-listed emerging markets specialist Charlemagne Capital reported its assets under management have almost halved in the third quarter, hit by sharp falls in markets amid financial turmoil.

The London-based asset manager launched its first Middle East and North Africa fund in May, said its AuM total is down 46.8 per cent since 1 January 2008 to almost £2 billion ($3.5 billion) as at 30 September.

The group, which is chaired by City investment management veteran Jim Mellon, puts this substantial drop down to the current turbulence in global markets, which it said “directly impacted AuM”.

Charlemagne Capital appeared to be holding its own earlier this year. Despite reporting a 15 per cent first quarter drop in the value of its funds after the first quarter, which it also blamed on market conditions, assets under management were still up 6.4 per cent, compared with the year before.

The group’s financial director, David Curl, said at the time that: "In a quarter where the industry contracted, we were actually able to raise money."

However, developments have taken a turn for the worst in recent months. Other key movements in AuM recorded by the manager for this quarter include: one new institutional mandate, increasing the total number of new mandates to eight year to date, with total initial subscriptions almost £224 million.

The group also noted that the average management fee margin has remained stable throughout the period despite the changing mix of business.

Through Charlemagne Capital’s subsidiaries the firm manages mutual funds, hedge funds, and specialist funds. The group invests in the public equity, and alternative markets internationally with a focus on emerging markets including Asia, Eastern Europe, Latin America and, most recently, the Middle East and North Africa.

The firm employs equity long/short strategies for its hedging investments and employs a fundamental analysis with a bottom-up approach to create its equity portfolio mix.