Record Regulatory News (REC)

9 Jan 2008 07:00

Record PLC09 January 2008 9 JANUARY 2008 RECORD PLC INTERIM MANAGEMENT STATEMENT Record plc ("Record" or the "Company"), the specialist currency investmentmanager, is pleased to make its first Interim Management Statement since itsadmission to the official list of the Financial Services Authority and totrading on the London Stock Exchange's main market. Record announces today that as at 31st December 2007 its assets under managementequivalents ("AuME") totalled $54.8 billion (30th September 2007: $54.7billion). This comprised $28.7 billion in respect of currency for absolutereturn, $4.3 billion in respect of active hedging, $18.5 billion in respect ofpassive hedging and $3.3 billion of client cash and futures positions managed byRecord to support currency management activity. Absolute return AuME comprised$13.3 billion in segregated mandates and $15.3 billion in pooled funds. Inaddition to these AuME, Record has since 31st December 2007 agreed andimplemented increases in segregated absolute return mandates with two existingclients amounting to an additional $1.1 billion of absolute return AuME. Record's development was strong in the period between 30th September 2007 and31st December 2007, with continued growth in client numbers. Net client inflowsin the three months to 31st December 2007 by product were as follows: ($ million) Net AuME inflows (three months to 31st December 2007) Absolute return - segregated mandates 744Absolute return - pooled funds 1,571Active hedging 83Passive hedging (321)Client cash and futures positions 245 Record had 127 clients as at 31st December 2007, compared to 115 at 30thSeptember 2007. Two of the new clients since 30th September 2007 are based inNorth America. Notwithstanding the growth in client numbers and the net AuME inflows set outabove, AuME in US dollar terms has remained broadly constant from 30th Septemberto 31st December. The offsetting amount is substantially a result of theinvestment performance of the Company's currency for absolute return product,which is compounded into the AuME in its pooled funds, but other contributingfactors were (i) changes in exchange rates over the period, which affect theconversion of non-US dollar mandate sizes into US dollar AuME; and (ii) changesin stock market levels, on which many of the sizes of the Company's mandates arebased. Investment performance in the three months to 31st December 2007 waschallenging, as currency markets continued not to exhibit the patterns ofbehaviour on which Record's systematic strategies are based. However, thisoutcome is not unexpected, has occurred before, and Record's directors continueto have confidence in the investment process. Record is not contemplating anychanges to the investment process, and the Company continues to keep its clientsand their investment consultants closely informed. Given investment performance in the three months to 31st December 2007, Recorddoes not expect to earn significant performance fees in respect of this period. Record continues to have a strong pipeline of new clients for its absolutereturn products, with confirmation from a number of potential clients that theyhave selected Record for currency management mandates, and are now engaged inthe documentation process, with an expectation that these mandates will beinitiated before 31st March 2008. These clients and AuME are not included in theAuME and net inflows figures above. Record expects to announce its preliminary results for the year to 31st March2008 in June. For further information, please contact: Record plc Tel: +44 (0) 1753 852 222Peter WakefieldMike Timmins Hogarth Tel: +44 (0) 20 7357 9477Nick DentonJulian Walker This announcement includes information with respect to Record's financialcondition, its results of operations and business, strategy, plans andobjectives. All statements in this document, other than statements of historicalfact, including words such as "anticipates", "expects", "intends", "plans","believes", "seeks", "estimates", "may", "will", "continue", "project" andsimilar expressions, are forward-looking statements. These forward-looking statements are not guarantees of the Company's futureperformance and are subject to risks, uncertainties and assumptions that couldcause the actual future results, performance or achievements of the Company todiffer materially from those expressed in or implied by such forward-lookingstatements. The forward-looking statements contained in this document are based on numerousassumptions regarding Record's present and future business and strategy andspeak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate anyupdates or revisions to any forward-looking statements contained in thisannouncement whether as a result of new information, future events or otherwise. This information is provided by RNS The company news service from the London Stock Exchange EN