REG - Record PLC - FIRST QUARTER TRADING UPDATE

RecordAnnouncement

22/07/2022 07:00

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RNS Number : 3497T  Record PLC  22 July 2022

22 July 2022

RECORD PLC

FIRST 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 30 June 2022 ("Q1-2023").

 

Q1-2023 Highlights

 

·    AUME net inflows of US$2.0 billion during the quarter

·    Performance fees of £2.3 million earned during the quarter

·    Awarded new Passive Hedging mandate, expected to build up to
$8.0 billion by the end of the financial year

 

Leslie Hill, Chief Executive of Record plc, commented:

 

"Notwithstanding the current challenging macro-economic environment, it is
pleasing to report a positive quarter for the Group in terms of net inflows of
US$2.0 billion, performance fees of £2.3 million and the award of a new and
significant Passive Hedging mandate (subject to successful completion of final
contract negotiations).

 

"As expected, uncertainty in financial markets linked to both economic and
heightened political pressures has continued to have an impact on the value of
some clients' underlying portfolios, primarily within our Passive Hedging
product, reflected by a decrease in AUME from market movements of 4.7%
(US$3.9 billion) over the quarter."

 

Trading Analysis

 

1.            AUME composition

The Group's AUME as at 30 June 2022 totalled US$77.9 billion
(31 March 2022: US$83.1 billion), and expressed in sterling totalled
£64.2 billion (31 March 2022: £63.1 billion).  The composition of AUME
by product was as follows:

 

 AUME - US$ billion
                      30 June 2022    31 March 2022
 Dynamic Hedging      10.6            10.6
 Passive Hedging      58.2            62.8
 Currency for Return  4.5             5.0
 Multi-Product        4.4             4.5
 Cash & Futures       0.2             0.2
 Total                77.9            83.1

 

2.            AUME Movement

Net client AUME movement in the three months to 30 June 2022 was as follows:

 

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

                                                30 June 2022     31 March 2022
 Dynamic Hedging                                1.5              (0.3)
 Passive Hedging                                0.7              1.3
 Currency for Return                            (0.3)            0.0
 Multi-Product                                  0.1              (0.2)
 Cash & Futures                                 0.0              0.0
 Total net flows                                2.0              0.8
 FX movements and mandate volatility targeting  (3.3)            (0.7)
 Movements in global stock and other markets    (3.9)            (2.3)
 TOTAL AUME MOVEMENT                            (5.2)            (2.2)

 

3.            AVERAGE FEE RATES AND PERFORMANCE FEES

 

During Q1-2023, average fee rates remained broadly unchanged from the previous
quarter.  However, over time, a slight decrease to the overall average
Passive Hedging fee rate is expected, linked to the size of the new Passive
Hedging mandate noted above.

 

Performance fees of £2.3 million were earned in the quarter.

 

Record will announce its second quarter trading update on 21 October 2022.

 

-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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