TIDMREC

RNS Number : 9693I

Record PLC

22 April 2022

22 April 2022

RECORD PLC

FOURTH QUARTER TRADING UPDATE

Record plc ('Record' or the 'Company'), the specialist currency and derivatives manager, is pleased to announce its trading update for the three months ended 31 March 2022 ("Q4-2022").

Highlights

   --    AUME increased by +3.7% during the financial year ended 31 March 2022 
   --    Net inflows of US$2.4 billion during the financial year 
   --    Performance fees of GBP0.5 million earned during the quarter

-- Post period end US$1.0 billion inflow in Dynamic Hedging; a further US$1.0 billion anticipated in the first half of the current financial year

Leslie Hill, Chief Executive of Record plc, commented :

"We closed the financial year with AUME at US$83.1 billion, an increase of US$3.0 billion (+3.7%) over the financial year. This included positive net inflows in the final quarter and for the financial year of US$0.8 billion and US$2.4 billion, respectively.

"As expected, increased uncertainty in financial markets linked predominantly to the war in Ukraine impacted the value of some clients' underlying portfolios, reflected by a decrease in AUME of US$2.3 billion (-2.7%) from market movements over the quarter.

"Performance fees of GBP0.5 million were earned in the quarter from opportunities arising from recent increases in interest rate differentials linked to changes in central banks monetary policies.

"Meanwhile, the positive momentum in the growth of our higher-margin revenue products over the financial year to 31 March 2022 has continued since quarter end with further inflows from an existing Dynamic Hedging client of approximately US$1.0 billion, which is expected to grow to approximately US$2.0 billion by the end of the first half of the current financial year."

Trading Analysis

   1.            AUME composition

The Group's AUME as at 31 March 2022 totalled US$83.1 billion (31 December 2021: US$85.3 billion), and expressed in sterling totalled GBP63.1 billion (31 December 2021: GBP63.0 billion). The composition of AUME by product was as follows:

 
                   AUME - US$ billion 
                        31 March 2022   31 December 2021 
                       --------------  ----------------- 
 Dynamic Hedging                 10.6               11.5 
 Passive Hedging                 62.8               63.8 
 Currency for Return              5.0                4.9 
 Multi-Product                    4.5                4.9 
 Cash & Futures                   0.2                0.2 
                       --------------  ----------------- 
 Total                           83.1               85.3 
                       --------------  ----------------- 
 
   2.            AUME Movement

Net client AUME movement in the three months to 31 March 2022 was as follows:

 
                 Net AUME movement - US$ billion 
                               3 months to        3 months to 
                               31 March 2022    31 December 2021 
                             ---------------  ------------------ 
 Dynamic Hedging                       (0.3)                 1.1 
 Passive Hedging                         1.3               (0.5) 
 Currency for Return                     0.0               (0.6) 
 Multi-Product                         (0.2)               (0.3) 
 Cash & Futures                          0.0                 0.0 
                             ---------------  ------------------ 
 Total net flows                         0.8               (0.3) 
                             ---------------  ------------------ 
 FX movements and mandate 
  volatility targeting                 (0.7)                 0.7 
                             ---------------  ------------------ 
 Movements in global stock 
  and other markets                    (2.3)                 0.8 
                             ---------------  ------------------ 
 TOTAL AUME MOVEMENT                   (2.2)                 1.2 
                             ---------------  ------------------ 
 
   3.            AVERAGE FEE RATES AND PERFORMANCE FEES

During Q4-2022, fee rates remained broadly unchanged from the previous quarter. However, a slight decrease to the overall average fee rate from Dynamic Hedging is expected going forward, which can be attributed to the recent increase in mandate size from an existing client, as noted above.

Performance fees of GBP0.5 million were earned in the quarter.

Record will announce its FY-2022 results on 21 June 2022 and its Q1-2023 trading update on 22 July 2022. If you wish you attend FY results in June, please contact record@buchanan.uk.com .

-Ends -

For further information, please contact:

Record plc Tel: +44 (0) 1753 852 222

Leslie Hill, Chief Executive Officer

Steve Cullen, Chief Finance Officer

Buchanan Tel: +44 (0) 20 7466 5000

Giles Stewart

record@buchanan.uk.com

Simon Compton

Henry Wilson

George Beale

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