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26 Apr 2024 07:00
26 April 2024
RECORD PLC
FOURTH QUARTER TRADING UPDATE
Record plc ("Record", the "Company" or the "Group"), the specialist currency and asset manager, is pleased to announce its trading update for the three months ended 31 March 2024 ("Q4-2024") and the financial year ("FY-2024").
Highlights: FY-2024
· AUME increased by 17% to US$102.2 billion (FY-2023: US$87.7 billion)
· Net inflows of US$6.8 billion for the year (FY-2023: US$9.1 billion)
· Performance fees of £5.8 million earned during the year (FY-2023: £5.8 million)
Dr Jan Witte, Chief Executive of Record plc, commented:
"I am excited to take over the reins as CEO at a time when the Group's AUME has reached new heights and the outlook for our business remains strong. As recently announced in the trading update on 22 March, AUME continues to grow and now exceeds USD$100 billion for the first time in our 40+ year history.
"An AUME increase of 17% over FY-2024, closing the year at USD$102.2 billion, presents a milestone which reinforces the already strong foundations upon which the Group can continue to build.
"Our growth is the result of a combination of increased demand from existing clients, who are increasing their mandates, and new clients. The net inflows into currency management of USD$15.6 billion over the last two years represent 19% of FY-2022 closing AUME. In addition, the launch of two new funds has delivered net inflows into asset management of USD$0.3 billion during FY-2024.
"Building on our existing proposition and the demand we observe for our services as a specialist asset manager, we are now refining our product range to focus on a select number of best-in-class products which present attractive and meaningful opportunities for us, making Record a stronger, less concentrated, and more robust business.
"Following the decision to discontinue development of the R-Platform and the consequent impairment write down of £1.9 million announced on 22 March 2024, we are also continuing our review of the Group's expenditure and resource allocations to ensure they remain fit for purpose and continue to offer value-for-money for our shareholders.
"I look forward to the year ahead, and to working hard with a strong team of colleagues in growing the business further. More information on future strategic plans will be given in the full year results announced in June."
Trading Analysis
1. AUME composition
The Group's AUME as at 31 March 2024 totalled US$102.2 billion (31 December 2023: US$99.5 billion), and expressed in sterling totalled £80.9 billion (31 December 2023: £77.9 billion). The composition of AUME by product was as follows:
AUME - US$ billion | ||
31 March 2024 | 31 December 2023 | |
Dynamic Hedging | 16.5 | 15.4 |
Passive Hedging | 76.4 | 76.3 |
Currency for Return | 5.5 | 4.9 |
Multi-Product | 3.4 | 2.5 |
Cash & Futures/other | 0.4 | 0.4 |
Total | 102.2 | 99.5 |
2. AUME Movement
Net client AUME movement in the three months to 31 March 2024 was as follows:
Net AUME movement - US$ billion | ||
3 months to 31 March 2024 | 3 months to 31 December 2023 | |
Dynamic Hedging | 0.0 | 0.0 |
Passive Hedging | (1.0) | 11.0 |
Currency for Return | 0.1 | (0.0) |
Multi-Product | 0.8 | (3.2) |
Cash & Futures/other | 0.0 | 0.1 |
Total net flows | (0.1) | 7.9 |
FX movements and mandate volatility targeting | (4.2) | 5.3 |
Movements in global stock and other markets | 7.0 | 1.8 |
TOTAL AUME MOVEMENT | 2.7 | 15.0 |
3. AVERAGE FEE RATES AND PERFORMANCE FEES
During Q4-2024, average fee rates remained broadly unchanged from the previous quarter.
Performance fees of £0.8 million were earned in the quarter.
Record will announce its FY-2024 results on 28 June 2024 and its Q1-2025 trading update on 26 July 2024. If you wish to attend the FY-2024 results in June, please contact record@buchanan.uk.com.
-Ends -
For further information, please contact:
Record plc Dr Jan Witte, 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 |
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