Last checked at 22 Jul 2008 07:00
22 July 2008
RECORD PLC
FIRST QUARTER TRADING UPDATE
Record plc ("Record" or the "Company"), the specialist currency investment manager, announces today that as at 30th June 2008 the Group's assets under management equivalents ("AuME") totalled $56.2 billion (31st March 2008: $55.7 billion).
1 AuME composition
Record continued to grow AuME and client numbers during the period between 31st March 2008 and 30th June 2008. The composition of the AuME at 30th June 2008 was as follows:
| AuME $ bn | ||||
| 30 June 2008 | 31 March 2008 | |||
| Absolute Return | ||||
| Segregated | 13.9 | 14.1 | ||
| Pooled | 16.5 | 14.9 | ||
| Absolute Return Sub Total | 30.4 | 29.0 | ||
| Active Hedging | 5.3 | 5.0 | ||
| Passive Hedging | 17.4 | 18.3 | ||
| Cash & Futures | 3.1 | 3.4 | ||
| Total | 56.2 | 55.7 | ||
2 AUME Growth
Net client AuME flows in the three months to 30th June 2008 by product were as follows:
| Net Client AuME flows - $ millions | ||||
| 3 mths to 30th June 2008 | 3 mths to 31 March 2008 | |||
| Absolute Return | ||||
| Segregated | (454) | 875 | ||
| Pooled | 391 | 1,098 | ||
| Absolute Return Sub Total | (63) | 1,973 | ||
| Active Hedging | 200 | 434 | ||
| Passive Hedging | (1,085) | 697 | ||
| Cash & Futures | 17 | 229 | ||
| Total | (931) | 3,333 | ||
Record had 147 clients at 30th June 2008, compared to 141 at 31st March 2008. Seven new clients invested in the pooled absolute return product.
One client loss during the first quarter reduced Passive AuME by $1.0bn and Absolute Return AuME by $0.3bn. The factors other than client flows which impacted AuME during the quarter were:
Investment performance in Record's Absolute Return product was positive in each month of the quarter ending 30th June 2008 and for an un-geared portfolio equated to 90 bps over the quarter as a whole. While concerns over credit persist in the markets, the unusually high correlation between currency and equity returns experienced during the second half of calendar year 2007, now appears to be returning to low correlation which has been the long term norm. Record's directors are encouraged by these developments and maintain their confidence in the investment process.
3 AVERAGE FEE RATES
During the quarter to 30th June 2008, average management fee rates were maintained across all product categories. Modest performance fees were earned during the quarter.
Chairman and CEO, Neil Record, commenting on trading, said 'We are encouraged by the recent performance of the Absolute Return investment process and by the apparent return to the long term low correlation between currency and equity returns. During the recent challenging environment we have been supported by the high quality relationships we have developed with investment consultants and with our clients, which are based on our long term track record and our commitment to communicate. We will continue to work hard to maintain these relationships and to communicate information on market developments and the implications for Absolute Return investment performance.'
For further information, please contact:
Record plc Tel: +44 (0) 1753 852 222
Neil Record
Mike Timmins
Hogarth Tel: +44 (0)20 7357 9477
Nick Denton
Julian Walker
Notes to Editors
Record plc
Record is a specialist currency investment manager and provider of currency hedging services for institutional clients. Founded in 1983, Record has established a market leading position as a currency asset manager. Specifically, the Group has a leading position in managing currency for absolute return for institutional clients, a new asset class which the Directors expect to continue to increase in popularity with institutional investors, including defined benefit pension schemes, both in the United Kingdom and overseas.
The Group has three principal product lines:
Record (LSE: REC) was admitted to trading on the London Stock Exchange on 3rd December 2007.
This announcement includes information with respect to Record's financial condition, its results of operations and business, strategy, plans and objectives. All statements in this document, other than statements of historical fact, including words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "may", "will", "continue", "project" and similar expressions, are forward-looking statements.
These forward-looking statements are not guarantees of the Company's future performance and are subject to risks, uncertainties and assumptions that could cause the actual future results, performance or achievements of the Company to differ materially from those expressed in or implied by such forward-looking statements.
The forward-looking statements contained in this document are based on numerous assumptions regarding Record's present and future business and strategy and speak only as at the date of this announcement.
The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement whether as a result of new information, future events or otherwise.