Interim Management Statement
20 Oktober 2009 - 8:00AM
UK Regulatory
TIDMREC
RNS Number : 0425B
Record PLC
20 October 2009
20 October 2009
RECORD PLC
SECOND QUARTER TRADING UPDATE
Record plc ("Record" or the "Company"), the specialist currency investment
manager, announces today that as at 30th September 2009 the Group's assets under
management equivalents ("AuME") totalled $36.0 billion (30th June 2009: $36.0
billion).The AuME figure includes $7.6 billion from the two recent US active
hedging mandates, which are expected to grow to approximately $7.9 billion over
the next 3 months.
AuME expressed in Sterling as at 30th September 2009 totalled GBP22.5
billion (30th June 2009: GBP21.9 billion).
1 AuME composition
Record saw no overall movement to AuME during the period between 30th June 2009
and 30th September 2009. The composition of AuME at 30th September 2009 was as
follows:
+------------------------+------------+-----------+-----------+-----------+
| AuME $ bn |
+-------------------------------------------------------------------------+
| | 30th September 2009 | 30th June 2009 |
+------------------------+------------------------+-----------------------+
| Absolute Return | | | | |
+------------------------+------------+-----------+-----------+-----------+
| Segregated | 4.2 | | 5.1 | |
+------------------------+------------+-----------+-----------+-----------+
| Pooled | 6.0 | | 6.5 | |
+------------------------+------------+-----------+-----------+-----------+
| Absolute Return Sub | | 10.2 | | 11.6 |
| Total | | | | |
+------------------------+------------+-----------+-----------+-----------+
| Active Hedging | | 11.0 | | 8.8 |
+------------------------+------------+-----------+-----------+-----------+
| Passive Hedging | | 13.5 | | 14.5 |
+------------------------+------------+-----------+-----------+-----------+
| Cash & Futures | | 1.3 | | 1.1 |
+------------------------+------------+-----------+-----------+-----------+
| Total | | 36.0 | | 36.0 |
+------------------------+------------+-----------+-----------+-----------+
The above active hedging figure includes the addition in the quarter from the US
active hedging mandates together with the termination of one European active
hedging mandate.
2 AuME MOVEMENT
Net client AuME flows in the three months to 30th September 2009 by product were
as follows:
+------------------------+------------+-----------+------------+-----------+
| Net client AuME flows - $ bn |
+--------------------------------------------------------------------------+
| | 3 mths to | 3 mths to 30th June |
| | 30th September 2009 | 2009 |
+------------------------+------------------------+------------------------+
| Absolute Return | | | | |
+------------------------+------------+-----------+------------+-----------+
| Segregated | (1.2) | | (3.5) | |
+------------------------+------------+-----------+------------+-----------+
| Pooled | - | | (0.2) | |
+------------------------+------------+-----------+------------+-----------+
| Absolute Return Sub | | (1.2) | | (3.7) |
| Total | | | | |
+------------------------+------------+-----------+------------+-----------+
| Active Hedging | | 1.1 | | 4.5 |
+------------------------+------------+-----------+------------+-----------+
| Passive Hedging | | (2.1) | | 0.3 |
+------------------------+------------+-----------+------------+-----------+
| Cash & Futures | | 0.2 | | (0.2) |
+------------------------+------------+-----------+------------+-----------+
| Total | | (2.0) | | 0.9 |
+------------------------+------------+-----------+------------+-----------+
Record had 118 clients at 30th September 2009, compared to 119 at 30th June
2009.
The factors other than client flows which impacted AuME during the quarter,
totalling +$2.0 billion, were:
(i) Exchange rate movements:+$0.3bn
Exchange rate movements during the period affect the conversion of non-US Dollar
mandate sizes into US Dollar AuME;
(ii) Movements in global stock and other markets:+$2.1bn
Substantially all the Passive and Active Hedging, and some of the Absolute
Return mandates are linked to stock and other market levels. Consequently AuME
is affected by movements in these markets which had a positive impact in the
quarter;
(iii) Pooled fund investment performance: -$0.4bn
Investment returns are compounded on a geared basis into the AuME of the pooled
funds and so impact AuME;
Investment performance in Record's Absolute Return product was negative during
the quarter ending 30th September 2009 and for an un-geared portfolio equated to
a decrease of 137 bps over the quarter as a whole (quarter to 30th June 2009:
increase of 229 bps).
3 AVERAGE FEE RATES
During the quarter to 30th September 2009, average management fee rates were
maintained across all products.
Chairman and CEO, Neil Record, commenting on trading, said "We are pleased to
have commenced the implementation of the two large US active hedging mandates
that should be completed towards the end of the financial year.As a result, the
active return business is now slightly larger than the absolute return business.
Although investment performance in the quarter was slightly negative, investment
performance of our Alpha Composite was 0.89% for the first half of the financial
year. This compares to a negative return of 3.49% for the whole of the financial
year ended 31st March 2009. For our Cash Plus fund, being seven times geared,
this equated to a positive return of 5.42% for the first half.
The co-operation agreement with FTSE which we announced on 23rd June 2009 led to
the announcement of the launch of the FTSE Currency Forward Rate Bias Index
Series 'FRB5' from 21st September 2009. The FRB5 Index is now operational and we
intend to launch a tracker fund towards the end of the financial year.
We continue to promote the benefits of active hedging both in the US and UK."
Record will announce its half year results on 17th November 2009.
+---------------------+--------------------------------------------------+
| For further information, please contact: |
+------------------------------------------------------------------------+
| | |
+---------------------+--------------------------------------------------+
| Record plc | Tel: +44 (0) 1753 852 222 |
+---------------------+--------------------------------------------------+
| Neil Record | |
+---------------------+--------------------------------------------------+
| Paul Sheriff | |
+---------------------+--------------------------------------------------+
| | |
+---------------------+--------------------------------------------------+
| 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.
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
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