REG - Record PLC - THIRD QUARTER TRADING UPDATE

RecordAnnouncement

26/01/2023 07:00

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RNS Number : 8963N  Record PLC  26 January 2023

26 January 2023

RECORD PLC

THIRD 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
31 December 2022 ("Q3-2023").

 

Q3-2023 Highlights

 

·    AUME increased by 6% to US$86.0 billion

·    Net inflows of US$0.6 billion in the quarter (FY-23 YTD net inflows:
US$ 9.2 billion)

·    Performance fees of £3.0 million earned for the quarter (FY-23 YTD
performance fees: £5.8 million, FY-22 performance fees: £0.5 million)

 

Leslie Hill, Chief Executive of Record plc, commented:

 

"In line with our growth strategy, we continue to focus on the modernisation
and diversification of our business.  We are working hard to deliver new
products and investment strategies for our clients and we look forward to
discussing this further at our Capital Markets Event on 9 February.

 

"In the meantime, it is pleasing to report continued growth in our more
traditional currency hedging products alongside a fourth consecutive quarter
of performance fees, which now total £5.8 million for the current financial
year."

 

Trading Analysis

 

1.            AUME composition

The Group's AUME as at 31 December 2022 totalled US$86.0 billion
(30 September 2022: US$80.8 billion), and expressed in sterling totalled
£71.5 billion (30 September 2022: £72.3 billion).  The composition of
AUME by product was as follows:

 

 AUME - US$ billion
                      31 December 2022   30 September 2022
 Dynamic Hedging      13.4               10.0
 Passive Hedging      63.4               62.2
 Currency for Return  4.7                4.3
 Multi-Product        4.3                4.2
 Cash & Futures       0.2                0.1
 Total                86.0               80.8

 

2.            AUME Movement

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

 

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

                                                31 December 2022    30 September 2022
 Dynamic Hedging                                1.8                 0.2
 Passive Hedging                                (1.3)               6.5
 Currency for Return                            0.3                 0.0
 Multi-Product                                  (0.2)               (0.1)
 Cash & Futures                                 0.0                 0.0
 Total net flows                                0.6                 6.6
 FX movements and mandate volatility targeting  4.3                 (2.8)
 Movements in global stock and other markets    0.3                 (0.9)
 TOTAL AUME MOVEMENT                            5.2                 2.9

 

3.            AVERAGE FEE RATES AND PERFORMANCE FEES

 

During Q3-2023, average fee rates remained broadly unchanged from the previous
quarter.

 

Performance fees of £3.0 million were earned in the quarter from
opportunities arising for added value for some of our enhanced Passive Hedging
mandates linked to increases in interest rate differentials.

 

Record will announce its fourth quarter trading update on 28 April 2023 and
its financial results for the year ending 31 March 2023 on 16 June 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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