FIRST QUARTER TRADING UPDATE

202207220200RNS_____UKDISCLO_20220722_3497T REC True Fri, 22 Jul 2022 07:00:00 GMT Fri, 22 Jul 2022 06:58:59 GMT

RNS Number : 3497T

Record PLC

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 £2.3 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 £2.3 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 £64.2 billion (31 March 2022: £63.1 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 30 June 2022	3 months to 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 £2.3 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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