THIRD QUARTER TRADING UPDATE

RNS Number : 8963N

Record PLC

26 January 2023

 

26 January 2023

RECORD PLC

THIRD QUARTER TRADING UPDATE

Record plc ("Record" or the "Company"), the specialist currency and asset manager, is pleased to announce its trading update for the three months ended 31 December 2022 ("Q3-2023").

Q3-2023 Highlights

· AUME increased by 6% to US$86.0 billion

· Net inflows of US$0.6 billion in the quarter (FY-23 YTD net inflows: US$ 9.2 billion)

· Performance fees of £3.0 million earned for the quarter (FY-23 YTD performance fees: £5.8 million, FY-22 performance fees: £0.5 million)

Leslie Hill, Chief Executive of Record plc, commented :

"In line with our growth strategy, we continue to focus on the modernisation and diversification of our business.  We are working hard to deliver new products and investment strategies for our clients and we look forward to discussing this further at our Capital Markets Event on 9 February.

"In the meantime, it is pleasing to report continued growth in our more traditional currency hedging products alongside a fourth consecutive quarter of performance fees, which now total £5.8 million for the current financial year."

Trading Analysis

1.  AUME composition

The Group's AUME as at 31 December 2022 totalled US$86.0 billion (30 September 2022: US$80.8 billion), and expressed in sterling totalled £71.5 billion (30 September 2022: 72.3 billion).  The composition of AUME by product was as follows:

AUME - US$ billion
	31 December 2022	30 September 2022
Dynamic Hedging	13.4	10.0
Passive Hedging	63.4	62.2
Currency for Return	4.7	4.3
Multi-Product	4.3	4.2
Cash & Futures	0.2	0.1
Total	86.0	80.8

2.  AUME Movement

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

Net AUME movement - US$ billion
	3 months to 31 December 2022	3 months to 30 September 2022
Dynamic Hedging	1.8	0.2
Passive Hedging	(1.3)	6.5
Currency for Return	0.3	0.0
Multi-Product	(0.2)	(0.1)
Cash & Futures	0.0	0.0
Total net flows	0.6	6.6
FX movements and mandate volatility targeting	4.3	(2.8)
Movements in global stock and other markets	0.3	(0.9)
TOTAL AUME MOVEMENT	5.2	2.9

3.  AVERAGE FEE RATES AND PERFORMANCE FEES

During Q3-2023, average fee rates remained broadly unchanged from the previous quarter.

Performance fees of £3.0 million were earned in the quarter from opportunities arising for added value for some of our enhanced Passive Hedging mandates linked to increases in interest rate differentials.

Record will announce its fourth quarter trading update on 28 April 2023 and its financial results for the year ending 31 March 2023 on 16 June 2023.

-Ends -

For further information, please contact:

Record plc Leslie Hill, Chief Executive Officer Steve Cullen, Chief Finance Officer	Tel: [phone]
Buchanan Simon Compton Henry Wilson George Beale	Tel: [phone] [e-mail]

 

END

 

 

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