TIDMREC
RNS Number : 1466Q
Record PLC
17 October 2019
RECORD PLC
SECOND QUARTER TRADING UPDATE
Record plc ("Record" or "the Company"), the specialist currency
manager, announces today that the Group's assets under management
equivalents ("AUME") as at 30(th) September 2019 totalled $59.9
billion (30(th) June 2019: $58.3 billion).
AUME expressed in sterling as at 30(th) September 2019 totalled
GBP48.6 billion (30(th) June 2019: GBP45.8 billion).
1. AUME composition
AUME expressed in US dollars increased by 2.7% between 30(th)
June 2019 and 30(th) September 2019 and increased by 6.1% when
expressed in sterling. The composition of AUME by product was as
follows:
AUME $ billion
30(th) September 30(th) June 2019
2019
----------------- -----------------
Dynamic Hedging 3.2 3.4
Passive Hedging 50.4 48.9
Currency for Return 2.9 2.6
Multi-Product 3.1 3.1
----------------- -----------------
Cash & Futures 0.3 0.3
----------------- -----------------
Total 59.9 58.3
----------------- -----------------
2. AUME Movement
Net client AUME flows in the three months to 30(th) September
2019 by product were as follows:
Net client AUME flows - $ billion
3 months to 30(th) 3 months to 30(th)
September 2019 June 2019
------------------- -------------------
Dynamic Hedging (0.1) 0.3
Passive Hedging 1.5 0.1
Currency for Return 0.3 (0.1)
Multi-Product - -
------------------- -------------------
Cash & Futures - -
------------------- -------------------
Total 1.7 0.3
------------------- -------------------
Record had 70 clients at 30(th) September 2019 (30(th) June
2019: 68 clients). The above net inflows of $1.7 billion are
predominantly adjustments to existing clients' mandates.
Other than client flows, the factors which have had an aggregate
impact on AUME during the quarter of -$0.1 billion were as
follows:
(i) Movements in global stock and other markets: +$1.3bn
Substantially all the Passive and Dynamic Hedging, and some of
the Multi-Product mandates, are linked to stock and other market
levels. Consequently AUME may be affected by movements in these
markets.
(ii) Exchange rate movements and mandate volatility targeting: -$1.4bn
Exchange rate movements during the period affect the conversion
of non-US dollar mandate sizes into US dollar AUME. In addition
certain Currency for Return mandates targeting a specific
volatility target may be scaled up or down.
3. Investment performance
For US Dynamic Hedging clients during the quarter, hedging
returns in the programmes were positive, as the US dollar
appreciated versus the weighted basket of hedged currencies.
Investment performance of the FTSE Currency FRB10 index (excess
return in sterling) during the three months to 30(th) September
2019 was +0.63% (three months to 30(th) June 2019 was -0.61%). The
FTSE FRB10 Index Fund continued to track the benchmark index
closely, on a 1.8x geared basis.
Record's Emerging Market product investment performance was
positive during the quarter and for an un-geared portfolio equated
to a quarterly return of +0.61% (three months to 30(th) June 2019
return of +3.04%). Annualised performance since inception (30(th)
November 2009) for an un-geared portfolio was +2.10% p.a.
Investment performance in the Multi-Strategy product that
comprises the FTSE Currency FRB10, Emerging Market, Value, Momentum
and Range Trading strategies was positive during the quarter. The
performance of Record's Multi-Strategy composite targeting 4%
volatility equated to a quarterly return of +1.47% (three months to
30(th) June 2019: return of +0.90%). Annualised performance since
inception (31(st) July 2012) for the portfolio was +1.52% p.a.
4. AVERAGE FEE RATES AND PERFORMANCE FEES
During the quarter to 30(th) September 2019, fee rates remained
broadly unchanged from the previous quarter. No performance fees
were earned in the quarter.
5. CHIEF EXECUTIVE'S COMMENT
Chief Executive James Wood-Collins, commenting on business
development, said:
"Economic, political and market uncertainty continues to
prevail. The client engagement opportunities which this creates, in
conjunction with our ongoing focus on enhancement and innovation,
have contributed to the inflows we have seen during the period.
"We also continue to see an attractive range of further new
business opportunities, still balanced against competition and fee
pressure. We remain confident of making further progress in the
current financial year."
Record will announce its half year results on 22(nd) November
2019 and its third quarter trading update on 17(th) January
2020.
For further information, please contact:
Record plc Tel: +44 (0) 1753
James Wood-Collins, Chief Executive Officer 852 222
Steve Cullen, Chief Finance Officer
MHP Tel: +44 (0) 20 3128
Andrew Fleming 8100
Ollie Hoare record@mhpc.com
Robert Collett-Creedy
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 Currency
Hedging and Currency for Return for institutional clients.
The Group has four principal reporting 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;
- Currency for Return, in which Record enters into currency
contracts for clients with the objective of generating positive
returns; and
- Multi-Product, where the client mandate includes combined
hedging and return-seeking objectives.
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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