TIDMREC
RNS Number : 8362V
Record PLC
18 January 2013
18 JANUARY 2013
RECORD PLC
THIRD QUARTER TRADING UPDATE
Record plc ("Record" or the "Company"), the specialist currency
manager, announces today that as at 31(st) December 2012 the
Group's assets under management equivalents ("AuME") totalled $34.0
billion (30(th) September 2012: $32.5 billion).
AuME expressed in Sterling as at 31(st) December 2012 totalled
GBP20.9 billion (30(th) September 2012: GBP20.1 billion).
1. AuME composition
Record saw an overall increase in AuME when expressed in both US
Dollars and Sterling during the period between 30(th) September and
31(st) December 2012. The composition of AuME at 31(st) December
2012 was as follows:
AuME $ bn
----------------------------------------------------------
31(st) December 30(th) September
2012 2012
--------------------- ---------------- -----------------
Dynamic Hedging 10.3 9.9
Passive Hedging 22.1 21.0
Currency for Return
(Note 1) 1.5 1.5
--------------------- ---------------- -----------------
Cash & Futures 0.1 0.1
--------------------- ---------------- -----------------
Total 34.0 32.5
--------------------- ---------------- -----------------
Note 1: This includes $0.8 billion of Emerging Market strategies
(30(th) September 2012 $0.8 billion).
2. AUME Movement
Net client AuME flows in the three months to 31(st) December
2012 by product were as follows:
Net client AuME flows - $ bn
------------------------------------------------------------
3 months to 3 months to
31(st) December 30(th) September
2012 2012
--------------------- ----------------- ------------------
Dynamic Hedging 0.1 -
Passive Hedging 0.5 1.1
Currency for Return - 0.2
--------------------- ----------------- ------------------
Cash & Futures - (0.1)
--------------------- ----------------- ------------------
Total 0.6 1.2
--------------------- ----------------- ------------------
Record had 45 clients at 31(st) December 2012, compared with 43
at 30(th) September 2012.
The factors other than client flows which have impacted AuME
during the quarter, totalling $0.9 billion, were:
(i) Movements in global stock and other markets: $0.4bn
Substantially all the Passive and Dynamic Hedging, and some of
the Currency for Return mandates are linked to stock and other
market levels. Consequently AuME is affected by movements in these
markets;
(ii) Exchange rate movements: $0.5bn
Exchange rate movements during the period affect the conversion
of non-US Dollar mandate sizes into US Dollar AuME.
Our Dynamic Hedging programmes performed as expected for US
clients during the quarter. The US Dollar performed strongly during
the quarter especially against the Japanese Yen and as a result the
quarterly performance was positive.
For UK-based Dynamic Hedging clients the programmes also
performed as expected. Sterling strengthened during the quarter and
the Dynamic Hedging programmes delivered overall outperformance
with the most notable contribution from hedging the Japanese Yen
exposure.
Investment performance in Record's established Active Forward
Rate Bias (FRB) product was positive during the quarter ending
31(st) December 2012 and for an ungeared portfolio equated to a
positive return of 1.20% over the quarter (3 months to 30(th)
September 2012: positive return of 0.31%). This compares to a
positive return in the quarter of 1.02% for the FTSE Currency FRB10
index (excess return in Sterling).
Investment performance in Record's systematic Emerging Market
product was positive during the quarter ending 31(st) December 2012
and for an un-geared portfolio equated to a positive return of
3.57% over the quarter (3 months to 30(th) September 2012: positive
return of 1.20%). This product reached the third anniversary of its
live track record in November 2012.
3. AVERAGE FEE RATES
During the quarter to 30(th) December 2012, fee rates for all
products remained broadly unchanged from the previous quarter.
4. CHIEF EXECUTIVE'S COMMENT
Chief Executive James Wood-Collins, commenting on trading, said
"Overall AuME increased once again during the period mainly due to
increases in existing mandates.
"As we have previously stated, we are participating in a number
of formal procurement processes, particularly for Passive Hedging
in Switzerland. Whilst none of these were finalised in the quarter,
we are hopeful that we will be successful in securing additional
mandates before the end of the financial year.
"Similarly in North America we have continued to see encouraging
engagement with prospective clients and investment consultants.
Whilst the timing of any formal procurement processes is uncertain
we are hopeful that further progress can be made in 2013."
Record will announce its fourth quarter trading update on 19(th)
April 2013.
Ends
For further information, please contact:
Record plc Tel: +44 (0) 1753 852 222
James Wood-Collins
Paul Sheriff
MHP Tel: +44 (0) 20 3128 8100
Nick Denton
John Olsen
Vicky Watkins
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:
- Dynamic Hedging, formerly known as 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;
- 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; and
- Currency for Return, formerly known as Absolute Return, in
which Record enters into currency contracts for clients with the
objective of generating positive returns.
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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