REG - Record PLC - Third Quarter Trading Update

RecordAnnouncement

26/01/2024 07:00

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RNS Number : 9777A  Record PLC  26 January 2024

26 January 2024

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 2023 ("Q3-2024").

 

Q3-2024 Highlights

 

·    AUME increased by 17% to US$99.5 billion (FY-24 YTD: +13%)

·    Net inflows of US$7.9 billion for the quarter (FY-24 YTD:
US$6.9 billion)

·    Performance fees of £3.5 million earned during the quarter (FY-24
YTD: £5.0 million)

 

Leslie Hill, Chief Executive of Record plc, commented:

 

"In a busy quarter it is pleasing to announce a 17% increase in headline AUME
to $99.5 billion and further performance fees of £3.5 million. Strong net
inflows of $7.9 billion were further bolstered by tailwinds from both market
and FX movements of $1.8 billion and $5.3 billion respectively.

 

"Our core currency management business continues to grow with net inflows into
Passive Hedging of $11 billion in the quarter. This represents approximately
$7 billion from new and existing clients and $4 billion of assets
transferred towards the end of the quarter from the Multi-Product strategy
into Passive Hedging by a longstanding client, following a strategic decision
to switch their mandate.

 

"In our asset management business, we continue to work alongside our clients
in making progress towards the launch of Record's first infrastructure fund.
Both we and our clients remain fully committed to achieving the launch in the
final quarter of the financial year, with revenue flows starting from
FY-25."

 

Trading Analysis

 

1.            AUME composition

The Group's AUME as at 31 December 2023 totalled US$99.5 billion
(30 September 2023: US$84.5 billion), and expressed in sterling totalled
£77.9 billion (30 September 2023: £69.2 billion).  The composition of
AUME by product was as follows:

 

 AUME - US$ billion
                           31 December 2023    30 September 2023
 Dynamic Hedging           15.4                14.5
 Passive Hedging           76.3                60.5
 Currency for Return       4.9                 3.9
 Multi-Product             2.5                 5.3
 Cash & Futures/other      0.4                 0.3
 Total                     99.5                84.5

 

2.            AUME Movement

Net client AUME movement in the three months to 31 December 2023 was as
follows:

 

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

                                                31 December 2023     30 September 2023
 Dynamic Hedging                                0.0                  0.0
 Passive Hedging                                11.0                 1.7
 Currency for Return                            (0.0)                (0.3)
 Multi-Product                                  (3.2)                (0.1)
 Cash & Futures/other                           0.1                  0.2
 Total net flows                                7.9                  1.5
 FX movements and mandate volatility targeting  5.3                  (1.5)
 Movements in global stock and other markets    1.8                  (1.9)
 TOTAL AUME MOVEMENT                            15.0                 (1.9)

 

3.            AVERAGE FEE RATES AND PERFORMANCE FEES

 

During Q3-2024, average fee rates remained broadly unchanged from the previous
quarter. The transfer of approximately $4 billion of assets from
Multi-Product into Passive Hedging, described above, will impact the ongoing
average fee rate for the Multi-Product strategy, which is expected to decrease
by approximately 4 basis points per annum.

 

Aggregate performance fees of £3.5 million were earned in the quarter across
both the Currency for Return and the enhanced Passive Hedging products.

 

Record will announce its fourth quarter trading update on 26 April 2024 and
its financial results for the year ending 31 March 2024 on 28 June 2024.

 

-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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