TIDMREC
RNS Number : 7266C
Record PLC
19 April 2013
RECORD PLC
FOURTH QUARTER TRADING UPDATE
Record plc ("Record" or the "Company"), the specialist currency
manager, announces today that as at 31(st) March 2013 the Group's
assets under management equivalents ("AUME") totalled $34.8 billion
(31(st) December 2012: $34.0 billion).
AUME expressed in Sterling as at 31(st) March 2013 totalled
GBP22.9 billion (31(st) December 2012: GBP20.9 billion).
1. AUME composition
Record saw an overall increase in AUME when expressed in both US
Dollars and Sterling during the period between 31(st) December 2012
and 31(st) March 2013. The composition of AUME at 31(st) March 2013
was as follows:
AUME $ billion
-----------------------------------------------------------
31(st) March 2013 31(st) December
2012
--------------------- ------------------ ----------------
Dynamic Hedging 11.0 10.3
Passive Hedging 22.1 22.1
Currency for Return
(Note 1) 1.6 1.5
--------------------- ------------------ ----------------
Cash & Futures 0.1 0.1
--------------------- ------------------ ----------------
Total 34.8 34.0
--------------------- ------------------ ----------------
Note 1: This includes $0.8 billion of Emerging Market strategies
(31(st) December 2012: $0.8 billion).
Since 31(st) March 2013, Record has started a new combined
passive and dynamic hedging programme for a UK client with AUME
totalling approximately $1.7 billion, including a performance fee
element. The combination of strategies across this new programme
ensures the blended management fee rate is at a small premium to
Record's average passive hedging management fee rate.
2. AUME Movement
Net client AUME flows in the three months to 31(st) March 2013
by product were as follows:
Net client AUME flows - $ bn
--------------------------------------------------------
3 months to 3 months to
31(st) March 31(st) December
2013 2012
--------------------- -------------- -----------------
Dynamic Hedging 0.3 0.1
Passive Hedging (0.1) 0.5
Currency for Return - -
--------------------- -------------- -----------------
Cash & Futures - -
--------------------- -------------- -----------------
Total 0.2 0.6
--------------------- -------------- -----------------
Record had 44 clients at 31(st) March 2013, compared with 45 at
31(st) December 2012.
The factors other than client flows which have impacted AUME
during the quarter, totalling $0.6 billion, were:
(i) Movements in global stock and other markets: +$1.8bn
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: -$1.2bn 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 continued strengthening
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 reversed its previously established
trend and weakened during the quarter and the Dynamic Hedging
programmes were able to capture most of the overseas currencies'
strength.
Investment performance in Record's established Active Forward
Rate Bias (FRB) product was positive during the quarter ending
31(st) March 2013 and for an ungeared portfolio equated to a
positive return of 1.01% over the quarter (3 months to 31(st)
December 2012: positive return of 1.20%). This compares to a
positive return in the quarter of 2.25% for the FTSE Currency FRB10
index (excess return in Sterling).
Investment performance in Record's Emerging Market product was
positive during the quarter ending 31(st) March 2013 and for an
un-geared portfolio equated to a positive return of 4.22% over the
quarter (3 months to 31(st) December 2012: positive return of
3.57%).
3. AVERAGE FEE RATES
During the quarter to 31(st) March 2013, 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 including net
inflows of $0.2 billion from existing mandates. In total AUME have
increased by $3.9 billion (13%) over the 12 month period to 31(st)
March 2013.
"It is pleasing to be able to report an additional UK hedging
mandate since the period end. Furthermore, we continue to
participate in a number of formal procurement processes,
particularly for Passive Hedging in Switzerland, as highlighted in
the third quarter trading update. Although such processes in
general are taking longer to conclude than has historically been
the case, and the environment continues to be competitive, we are
hopeful that we will be successful in securing additional mandates
in the first half of the new financial year.
"Encouraging engagement also continues with prospective clients
and investment consultants in North America across our product
range. Whilst the timing of any formal procurement processes is
uncertain we are hopeful that further progress can also be made in
this market in the new financial year."
Record will announce its financial results for the year ended
31(st) March 2013 on 11(th) June 2013 and its first quarter trading
update on 19(th) July 2013.
For further information, please contact:
Record plc Tel: +44 (0) 1753 852 222
James Wood-Collins
Steve Cullen
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, 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, 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
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