Last checked at 28 Apr 2023 07:00
28 April 2023
RECORD PLC
FOURTH 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 March 2023 ("Q4-2023") and the financial year ("FY-2023").
Highlights: FY-2023
· Increase in AUME of US$4.6 billion (+6%) to US$87.7 billion (FY-2022: increase of US$3.0 billion to US$83.1 billion)
· Increase in net inflows of US$6.7 billion (+279%) to US$9.1 billion (FY-2022: net inflows of US$2.4 billion)
· Increase in performance fees of £5.3 million (+1060%) to £5.8 million (FY-2022: £0.5 million)
Leslie Hill, Chief Executive of Record plc, commented:
"Our AUME continues to grow, ending the financial year FY-2023 at $87.7 billion, representing an increase of almost 6% and including positive net inflows of $9.1 billion over the 12 months.
"Our growth agenda remains on target. We continue to make progress and invest in the modernisation and diversification of our business. Looking ahead to the current financial year (FY-2024), we expect to see continued growth in currency management linked to the return of currency volatility to markets, accompanied by the delivery of new and higher-margin revenue streams from our continued focus on developing our asset management products and capabilities.
"I remain fully committed to our strategy and excited by the strong pipeline of opportunities for growth and diversification that we are currently seeing, which will be discussed in more detail in our annual results released at the end of June."
Trading Analysis
1. AUME composition
The Group's AUME as at 31 March 2023 totalled US$87.7 billion (31 December 2022: US$86.0 billion), and expressed in sterling totalled £71.0 billion (31 December 2022: £71.5 billion). The composition of AUME by product was as follows:
AUME - US$ billion | ||
31 March 2023 | 31 December 2022 | |
Dynamic Hedging | 14.7 | 13.4 |
Passive Hedging | 63.8 | 63.4 |
Currency for Return | 3.9 | 4.7 |
Multi-Product | 5.2 | 4.3 |
Cash & Futures | 0.1 | 0.2 |
Total | 87.7 | 86.0 |
2. AUME Movement
Net client AUME movement in the three months to 31 March 2023 was as follows:
Net AUME movement - US$ billion | ||
3 months to 31 March 2023 | 3 months to 31 December 2022 | |
Dynamic Hedging | 0.7 | 1.8 |
Passive Hedging | (1.0) | (1.3) |
Currency for Return | (0.6) | 0.3 |
Multi-Product | 0.8 | (0.2) |
Cash & Futures | 0.0 | 0.0 |
Total net flows | (0.1) | 0.6 |
FX movements and mandate volatility targeting | 1.1 | 4.3 |
Movements in global stock and other markets | 0.7 | 0.3 |
TOTAL AUME MOVEMENT | 1.7 | 5.2 |
3. AVERAGE FEE RATES AND PERFORMANCE FEES
During Q4-2023, average fee rates remained broadly unchanged from the previous quarter. No performance fees were earned in the quarter.
Record will announce its FY-2023 results on 30 June 2023 and its Q1-2024 trading update on 18 July 2023. If you wish to attend the FY-2023 results in June, please contact record@buchanan.uk.com.
-Ends -
For further information, please contact:
Record plc Leslie Hill, Chief Executive Officer Steve Cullen, Chief Finance Officer
| Tel: +44 (0) 1753 852 222 |
Buchanan Simon Compton Henry Wilson George Beale | Tel: +44 (0) 20 7466 5000 record@buchanan.uk.com |