REG - Record PLC - Second Quarter Trading Update

RecordAnnouncement

21/10/2022 07:01

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RNS Number : 6316D  Record PLC  21 October 2022

21 October 2022

RECORD PLC

SECOND QUARTER TRADING UPDATE

 

Record plc ('Record' or the 'Company'), the specialist currency and asset
manager, is pleased to announce its trading update for the three months ended
30 September 2022 ("Q2-2023").

 

Q2-2023 Highlights

 

·    AUME net inflows of US$6.6 billion during the quarter

·    Performance fees of £0.5 million earned during the quarter

·    Commencement of previously announced Passive Hedging mandate
following successful conclusion to final contract negotiations

 

 

Leslie Hill, Chief Executive of Record plc, commented:

 

"Our growth strategy continues to deliver as evidenced by a third consecutive
quarter of AUME net inflows and further performance fees of £0.5 million.

 

"Sustained uncertainty in financial markets continues to have only a limited
impact on the value of some clients' underlying portfolios in our traditional
business for currency products and services.

 

"Conversely, heightened volatility and inflationary pressure underscores the
relevance of our products and offers new opportunities for growth and
diversification.  Our focus is on ensuring we make the most of such
opportunities and I look forward to giving more detail on the progress in our
diversification plans at our forthcoming half-year results in November."

 

Trading Analysis

 

1.            AUME composition

The Group's AUME as at 30 September 2022 totalled US$80.8 billion
(30 June 2022: US$77.9 billion), and expressed in sterling totalled
£72.3 billion (30 June 2022: £64.2 billion).  The composition of AUME
by product was as follows:

 

 AUME - US$ billion
                      30 September 2022   30 June 2022
 Dynamic Hedging      10.0                10.6
 Passive Hedging      62.2                58.2
 Currency for Return  4.3                 4.5
 Multi-Product        4.2                 4.4
 Cash & Futures       0.1                 0.2
 Total                80.8                77.9

 

2.            AUME Movement

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

 

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

                                                30 September 2022    30 June 2022
 Dynamic Hedging                                0.2                  1.5
 Passive Hedging                                6.5                  0.7
 Currency for Return                            0.0                  (0.3)
 Multi-Product                                  (0.1)                0.1
 Cash & Futures                                 0.0                  0.0
 Total net flows                                6.6                  2.0
 FX movements and mandate volatility targeting  (2.8)                (3.3)
 Movements in global stock and other markets    (0.9)                (3.9)
 TOTAL AUME MOVEMENT                            2.9                  (5.2)

 

3.            AVERAGE FEE RATES AND PERFORMANCE FEES

 

During Q2-2023, average fee rates remained broadly unchanged from the previous
quarter.

 

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

 

Record will announce its half year results on 29 November 2022 and its third
quarter trading update on 26 January 2023.

 

-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

 Simon Compton                          record@buchanan.uk.com

 Henry Wilson

 George Beale

 

 

 

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