26 January 2024

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 2023 ("Q3-2024").

Q3-2024 Highlights

·    AUME increased by 17% to US$99.5 billion (FY-24 YTD: +13%)

·    Net inflows of US$7.9 billion for the quarter (FY-24 YTD: US$6.9 billion)

·    Performance fees of £3.5 million earned during the quarter (FY-24 YTD: £5.0 million)

Leslie Hill, Chief Executive of Record plc, commented:

"In a busy quarter it is pleasing to announce a 17% increase in headline AUME to $99.5 billion and further performance fees of £3.5 million. Strong net inflows of $7.9 billion were further bolstered by tailwinds from both market and FX movements of $1.8 billion and $5.3 billion respectively.

"Our core currency management business continues to grow with net inflows into Passive Hedging of $11 billion in the quarter. This represents approximately $7 billion from new and existing clients and $4 billion of assets transferred towards the end of the quarter from the Multi-Product strategy into Passive Hedging by a longstanding client, following a strategic decision to switch their mandate.

"In our asset management business, we continue to work alongside our clients in making progress towards the launch of Record's first infrastructure fund. Both we and our clients remain fully committed to achieving the launch in the final quarter of the financial year, with revenue flows starting from FY-25." 

Trading Analysis

1.            AUME composition

The Group's AUME as at 31 December 2023 totalled US$99.5 billion (30 September 2023: US$84.5 billion), and expressed in sterling totalled £77.9 billion (30 September 2023: £69.2 billion).  The composition of AUME by product was as follows:

2.            AUME Movement

Net client AUME movement in the three months to 31 December 2023 was as follows:

3.            AVERAGE FEE RATES AND PERFORMANCE FEES

During Q3-2024, average fee rates remained broadly unchanged from the previous quarter. The transfer of approximately $4 billion of assets from Multi-Product into Passive Hedging, described above, will impact the ongoing average fee rate for the Multi-Product strategy, which is expected to decrease by approximately 4 basis points per annum.

Aggregate performance fees of £3.5 million were earned in the quarter across both the Currency for Return and the enhanced Passive Hedging products.

Record will announce its fourth quarter trading update on 26 April 2024 and its financial results for the year ending 31 March 2024 on 28 June 2024.

-Ends -

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