Last checked at 29 Jun 2021 07:00
RNS 29 June 2021
Record plc
("Record" or "the Company")
Launch of the Record Emerging Market Sustainable Finance Fund
Record secures exclusive Strategic Partner: UBS Global Wealth Management for a Global First
Record plc, the specialist currency and derivatives manager, is pleased to announce, on an exclusive basis, the strategic partnership with UBS Global Wealth Management for its newly launched Record Emerging Market Sustainable Finance Fund.
Record has a longstanding and valued relationship with the UBS group. This represents a new collaboration with the UBS Global Wealth Management arm, as both managers seek to provide innovation in sustainable investments via exposure to emerging market ("EM") local currencies. The managers believe this unique investment strategy for private clients shows both significant innovation and commitment to the development of new sustainable investment products, which they expect to have broad and growing appeal for years to come.
The new UCITS ICAV fund aims to improve the flow of development finance to emerging markets and to enhance financing projects in illiquid markets. The strategy targets positive sustainability outcomes using trading in liquid EM currencies designed to help stabilise EM exchange rates and to absorb currency risk. Further, active engagement with counterparty banks encourages improvements in areas of ESG, and investing in an underlay of social and sustainability bonds in addition to bonds issued by multilateral development banks will have a positive environmental, social and economic impact.
Record will leverage every component of its strategy to increase its contribution to sustainable finance by investing over longer time horizons, in illiquid currencies, and in currencies with elevated volatilities, or in periods of drawdowns.
The new exclusive partnership between Record and UBS Global Wealth Management allows UBS clients to benefit from a unique investment strategy and from Record's expertise and experience gained in over 38 years in the currency markets. The fund aims for an attractive, reliable return, with the additional benefit of daily liquidity. Fund size at launch will be approximately USD 750 million.
Leslie Hill, CEO of Record plc commented:
"Today's milestone is a pioneering achievement for UBS Global Wealth Management, Record and the industry, but also one which reflects Record's strengths both in building on its long-term and trusted client relationships to collaborate in developing new and innovative investment products, but also in our team's perseverance to make this sustainability fund a reality. The target universe for Record's Emerging Market Sustainable Finance Fund is large; with UBS Global Wealth Management in partnership responding to the anticipated demand for a sustainable currency strategy, we aim to grow and develop this fund further over the coming years.
This fund launch is the latest development in our strategic transition towards modernisation and growth, whilst also developing our ESG and sustainable investment capabilities, a very important area for Record."
Mark Haefele, Chief Investment Officer, Global Wealth Management at UBS commented:
"Shaping a sustainable path for our clients at UBS Global Wealth Management is paramount. This strategic partnership with Record is another important step in our journey to create long-term effective ESG opportunities for our clients, while supporting sustainable development projects in selected emerging markets by helping to reduce exchange rate volatility and manage currency risk. The academic community has provided substantial evidence for the need to reduce exchange rate uncertainty and increase availability of local currency financing in support of economic growth in developing markets. We are confident that with Record's expertise in sophisticated currency products, we can capitalize on the latent demand for an innovative fund of this kind to deliver sustainable outcomes from our investments and long-term attractive returns for our clients."
Enquiries:
Record plc +44 (0) 1753 852 222
Leslie Hill - Chief Executive Officer
Steve Cullen - Chief Financial Officer
Buchanan +44 (0) 20 7466 5000
Giles Stewart record@buchanan.uk.com
Victoria Hayns
Henry Wilson
George Beale
Notes to Editors
Record plc
Founded in 1983, Record is an independent, specialist currency and derivatives manager and has established a market leading position in managing Currency Hedging and Currency for Return for institutional clients.
The Group has four principal reporting lines:
- | Dynamic Hedging, where Record seeks to eliminate the impact of currency movements on elements of clients' investment portfolios that are denominated in foreign currencies when these movements are expected to result in an economic loss to the client, but not to do so when they are expected to result in an economic gain; |
- | Passive Hedging, where Record seeks to eliminate fully or partially the economic impact of currency movements on elements of clients' investment portfolios that are denominated in foreign currencies; |
- | Currency for Return, in which Record enters into currency contracts for clients with the objective of generating positive returns; and |
- | Multi-Product, where the client mandate includes combined hedging and return-seeking objectives. |
Record (LSE: REC) was admitted to trading on the London Stock Exchange on 3 December 2007.