Business Update (1585D)
17 März 2011 - 3:43PM
UK Regulatory
TIDMREC
RNS Number : 1585D
Record PLC
17 March 2011
RECORD PLC
BUSINESS UPDATE
Record plc ("Record" or the "Company"), the specialist currency
manager, announces today that it has agreed, subject to formal
documentation, to amend the terms of its investment management
agreement with its largest client, a $6.1 billion AuME US-based
dynamic hedging client. As a result of this change, a tiered
management fee structure will be introduced shortly that will
result in a reduction in management fees going forward of
approximately GBP3.2 million on an annualised basis for this
client. The on-going impact on pre-tax profits is estimated to be
GBP2.2 million.
Additionally, the mandate's size is anticipated to be increased
so as to cover a greater range of currencies and asset classes. The
net effect of both these changes is expected to be a reduction in
revenues earned in connection with this mandate of approximately
GBP2.9 million on an annualised basis. The total on-going impact on
pre tax profits is estimated to be GBP2.0 million.
There are no contractual obligations to extend a similar fee
structure to any other client.
Record will announce its fourth quarter trading update on 15
April 2011.
For further information, please contact:
Record plc Tel: +44 (0) 1753 852 222
James Wood-Collins
Paul Sheriff
Hogarth Tel: +44 (0) 20 7357 9477
Nick Denton
John Olsen
Notes to Editors
Record plc
Record is a specialist currency manager and provider of currency
hedging services for institutional clients. Founded in 1983, Record
has established a market leading position as a currency manager.
Specifically, the Group has a leading position in managing Dynamic
Hedging and Currency for Return for institutional clients.
The Group has three principal product lines:
- Currency for Return, in which Record enters into currency
contracts for clients with the objective of generating positive
returns;
- Dynamic 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 or
partially 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 3(rd) 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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