FIRST QUARTER TRADING UPDATE

202207220200RNS_____UKDISCLO_20220722_3497T REC True <![CDATA[FIRST QUARTER TRADING UPDATE]]> Fri, 22 Jul 2022 07:00:00 GMT Fri, 22 Jul 2022 06:58:59 GMT
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 £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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