REG - Record PLC - Fourth Quarter Trading Update

RecordAnnouncement

22/04/2022 07:00

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RNS Number : 9693I  Record PLC  22 April 2022

22 April 2022

RECORD PLC

FOURTH QUARTER TRADING UPDATE

 

Record plc ('Record' or the 'Company'), the specialist currency and
derivatives manager, is pleased to announce its trading update for the three
months ended 31 March 2022 ("Q4-2022").

 

Highlights

 

·    AUME increased by +3.7% during the financial year ended 31 March 2022

·    Net inflows of US$2.4 billion during the financial year

·    Performance fees of £0.5 million earned during the quarter

·    Post period end US$1.0 billion inflow in Dynamic Hedging; a further
US$1.0 billion anticipated in the first half of the current financial year

 

Leslie Hill, Chief Executive of Record plc, commented:

 

"We closed the financial year with AUME at US$83.1 billion, an increase of
US$3.0 billion (+3.7%) over the financial year. This included positive net
inflows in the final quarter and for the financial year of US$0.8 billion and
US$2.4 billion, respectively.

 

"As expected, increased uncertainty in financial markets linked predominantly
to the war in Ukraine impacted the value of some clients' underlying
portfolios, reflected by a decrease in AUME of US$2.3 billion (-2.7%) from
market movements over the quarter.

 

"Performance fees of £0.5 million were earned in the quarter from
opportunities arising from recent increases in interest rate differentials
linked to changes in central banks monetary policies.

 

"Meanwhile, the positive momentum in the growth of our higher-margin revenue
products over the financial year to 31 March 2022 has continued since
quarter end with further inflows from an existing Dynamic Hedging client of
approximately US$1.0 billion, which is expected to grow to approximately
US$2.0 billion by the end of the first half of the current financial year."

 

Trading Analysis

 

1.            AUME composition

The Group's AUME as at 31 March 2022 totalled US$83.1 billion
(31 December 2021: US$85.3 billion), and expressed in sterling totalled
£63.1 billion (31 December 2021: £63.0 billion).  The composition of
AUME by product was as follows:

 

 AUME - US$ billion
                      31 March 2022    31 December 2021
 Dynamic Hedging      10.6             11.5
 Passive Hedging      62.8             63.8
 Currency for Return  5.0              4.9
 Multi-Product        4.5              4.9
 Cash & Futures       0.2              0.2
 Total                83.1             85.3

 

2.            AUME Movement

Net client AUME movement in the three months to 31 March 2022 was as
follows:

 

 Net AUME movement - US$ billion
                                                3 months to       3 months to

                                                31 March 2022     31 December 2021
 Dynamic Hedging                                (0.3)             1.1
 Passive Hedging                                1.3               (0.5)
 Currency for Return                            0.0               (0.6)
 Multi-Product                                  (0.2)             (0.3)
 Cash & Futures                                 0.0               0.0
 Total net flows                                0.8               (0.3)
 FX movements and mandate volatility targeting  (0.7)             0.7
 Movements in global stock and other markets    (2.3)             0.8
 TOTAL AUME MOVEMENT                            (2.2)             1.2

 

3.            AVERAGE FEE RATES AND PERFORMANCE FEES

 

During Q4-2022, fee rates remained broadly unchanged from the previous
quarter.  However, a slight decrease to the overall average fee rate from
Dynamic Hedging is expected going forward, which can be attributed to the
recent increase in mandate size from an existing client, as noted above.

 

Performance fees of £0.5 million were earned in the quarter.

 

Record will announce its FY-2022 results on 21 June 2022 and its Q1-2023
trading update on 22 July 2022. If you wish you attend FY results in June,
please contact record@buchanan.uk.com (mailto:record@buchanan.uk.com) .

 

-Ends -

 

For further information, please contact:

 

Record plc
 
Tel: +44 (0) 1753 852 222

Leslie Hill, Chief Executive Officer

Steve Cullen, Chief Finance Officer

 

Buchanan
Tel: +44 (0) 20 7466 5000

Giles Stewart
 
             record@buchanan.uk.com

Simon Compton

Henry Wilson

George Beale

 

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