RNS Number : 5519Z
  Record PLC
  22 July 2008
   
      22 July 2008
    

    RECORD PLC
    FIRST QUARTER TRADING UPDATE
    Record plc ("Record" or the "Company"), the specialist currency investment manager, announces today that as at 30th June 2008 the
Group's assets under management equivalents ("AuME") totalled $56.2 billion (31st March 2008: $55.7 billion).  
    1   AuME composition
    Record continued to grow AuME and client numbers during the period between 31st March 2008 and 30th June 2008.  The composition of the
AuME at 30th June 2008 was as follows:

                       AuME $ bn
                            30 June 2008  31 March 2008
 Absolute Return
     Segregated             13.9          14.1
     Pooled                 16.5          14.9
 Absolute Return Sub Total          30.4           29.0
 Active Hedging                      5.3            5.0
 Passive Hedging                    17.4           18.3
 Cash & Futures                      3.1            3.4
 Total                              56.2           55.7

    
    2   AUME Growth 
    Net client AuME flows in the three months to 30th June 2008 by product were as follows:

                      Net Client AuME flows - $ millions
                            3 mths to 30th June 2008  3 mths to 31 March 2008
 Absolute Return
     Segregated               (454)                          875
     Pooled                     391                        1,098
 Absolute Return Sub Total                   (63)                       1,973
 Active Hedging                              200                          434
 Passive Hedging                          (1,085)                         697
 Cash & Futures                               17                          229
 Total                                      (931)                       3,333

    Record had 147 clients at 30th June 2008, compared to 141 at 31st March 2008.  Seven new clients invested in the pooled absolute return
product.
    One client loss during the first quarter reduced Passive AuME by $1.0bn and Absolute Return AuME by $0.3bn.  The factors other than
client flows which impacted AuME during the quarter were: 

(i)                  Pooled fund investment performance:                                   +$1.2bn              Investment returns are
compounded on a geared basis into the AuME of the pooled funds and so impact AuME. This was positive and the most significant factor
influencing AuME in the quarter; and
(ii)                Movements in global stock and other markets:                   +$0.6bn              Substantially all the Passive and
Active Hedging, and some of the Absolute Return mandates are linked to stock and other market levels. Consequently Record*s AuME is affected
by movements in these markets which had a positive impact in the quarter;
(iii)               Exchange rate movements:                                                 -$0.4bn 
Exchange rate movements during the period affect the conversion of non-US dollar mandate sizes into US dollar AuME which resulted in a
reduction in AuME valuation during the quarter.


    Investment performance in Record's Absolute Return product was positive in each month of the quarter ending 30th June 2008 and for an
un-geared portfolio equated to 90 bps over the quarter as a whole.  While concerns over credit persist in the markets, the unusually high
correlation between currency and equity returns experienced during the second half of calendar year 2007, now appears to be returning to low
correlation which has been the long term norm.  Record's directors are encouraged by these developments and maintain their confidence in the
investment process.
    3    AVERAGE FEE RATES 
    During the quarter to 30th June 2008, average management fee rates were maintained across all product categories. Modest performance
fees were earned during the quarter. 
    Chairman and CEO, Neil Record, commenting on trading, said 'We are encouraged by the recent performance of the Absolute Return
investment process and by the apparent return to the long term low correlation between currency and equity returns.  During the recent
challenging environment we have been supported by the high quality relationships we have developed with investment consultants and with our
clients, which are based on our long term track record and our commitment to communicate. We will continue to work hard to maintain these
relationships and to communicate information on market developments and the implications for Absolute Return investment performance.' 
    For further information, please contact:

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

    Hogarth                                                                                                    Tel: +44 (0)20 7357 9477
    Nick Denton
    Julian Walker

      Notes to Editors

    Record plc

    Record is a specialist currency investment manager and provider of currency hedging services for institutional clients. Founded in 1983,
Record has established a market leading position as a currency asset manager. Specifically, the Group has a leading position in managing
currency for absolute return for institutional clients, a new asset class which the Directors expect to continue to increase in popularity
with institutional investors, including defined benefit pension schemes, both in the United Kingdom and overseas.

    The Group has three principal product lines:

*       currency for absolute return, in which Record enters into currency contracts for clients with the objective of generating positive
returns;
*        active hedging, where Record seeks to eliminate the impact of currency movements on elements of clients* investment portfolios that
are denominated in foreign currencies when these movements are expected to result in an economic loss to the client, but not to do so when
they are expected to result in an economic gain; and
*        passive hedging, where Record seeks to eliminate fully the economic impact of currency movements on elements of clients* investment
portfolios that are denominated in foreign currencies.



    Record (LSE: REC) was admitted to trading on the London Stock Exchange on 3rd December 
2007.


    This announcement includes information with respect to Record's financial condition, its results of operations and business, strategy,
plans and objectives. All statements in this document, other than statements of historical fact, including words such as "anticipates",
"expects", "intends", "plans", "believes", "seeks", "estimates", "may", "will", "continue", "project" and similar expressions, are
forward-looking statements. 

    These forward-looking statements are not guarantees of the Company's future performance and are subject to risks, uncertainties and
assumptions that could cause the actual future results, performance or achievements of the Company to differ materially from those expressed
in or implied by such forward-looking statements. 

    The forward-looking statements contained in this document are based on numerous assumptions regarding Record's present and future
business and strategy and speak only as at the date of this announcement.  

    The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements
contained in this announcement whether as a result of new information, future events or otherwise.  

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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