TIDMREC

RNS Number : 3497T

Record PLC

22 July 2022

22 July 2022

RECORD PLC

FIRST 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 30 June 2022 ("Q1-2023").

Q1-2023 Highlights

   --    AUME net inflows of US$2.0 billion during the quarter 
   --    Performance fees of GBP2.3 million earned during the quarter

-- Awarded new Passive Hedging mandate, expected to build up to $8.0 billion by the end of the financial year

Leslie Hill, Chief Executive of Record plc, commented :

"Notwithstanding the current challenging macro-economic environment, it is pleasing to report a positive quarter for the Group in terms of net inflows of US$2.0 billion, performance fees of GBP2.3 million and the award of a new and significant Passive Hedging mandate (subject to successful completion of final contract negotiations).

"As expected, uncertainty in financial markets linked to both economic and heightened political pressures has continued to have an impact on the value of some clients' underlying portfolios, primarily within our Passive Hedging product, reflected by a decrease in AUME from market movements of 4.7% (US$3.9 billion) over the quarter."

Trading Analysis

   1.            AUME composition

The Group's AUME as at 30 June 2022 totalled US$77.9 billion (31 March 2022: US$83.1 billion), and expressed in sterling totalled GBP64.2 billion (31 March 2022: GBP63.1 billion). The composition of AUME by product was as follows:

 
                 AUME - US$ billion 
                        30 June 2022   31 March 2022 
                       -------------  -------------- 
 Dynamic Hedging                10.6            10.6 
 Passive Hedging                58.2            62.8 
 Currency for Return             4.5             5.0 
 Multi-Product                   4.4             4.5 
 Cash & Futures                  0.2             0.2 
                       -------------  -------------- 
 Total                          77.9            83.1 
                       -------------  -------------- 
 
   2.            AUME Movement

Net client AUME movement in the three months to 30 June 2022 was as follows:

 
               Net AUME movement - US$ billion 
                               3 months to     3 months to 
                               30 June 2022    31 March 2022 
                             --------------  --------------- 
 Dynamic Hedging                        1.5            (0.3) 
 Passive Hedging                        0.7              1.3 
 Currency for Return                  (0.3)              0.0 
 Multi-Product                          0.1            (0.2) 
 Cash & Futures                         0.0              0.0 
                             --------------  --------------- 
 Total net flows                        2.0              0.8 
                             --------------  --------------- 
 FX movements and mandate 
  volatility targeting                (3.3)            (0.7) 
                             --------------  --------------- 
 Movements in global stock 
  and other markets                   (3.9)            (2.3) 
                             --------------  --------------- 
 TOTAL AUME MOVEMENT                  (5.2)            (2.2) 
                             --------------  --------------- 
 
   3.            AVERAGE FEE RATES AND PERFORMANCE FEES

During Q1-2023, average fee rates remained broadly unchanged from the previous quarter. However, over time, a slight decrease to the overall average Passive Hedging fee rate is expected, linked to the size of the new Passive Hedging mandate noted above.

Performance fees of GBP2.3 million were earned in the quarter.

Record will announce its second quarter trading update on 21 October 2022.

-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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END

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