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21 Oct 2022 07:00
21 October 2022
RECORD PLC
SECOND 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 30 September 2022 ("Q2-2023").
Q2-2023 Highlights
· AUME net inflows of US$6.6 billion during the quarter
· Performance fees of £0.5 million earned during the quarter
· Commencement of previously announced Passive Hedging mandate following successful conclusion to final contract negotiations
Leslie Hill, Chief Executive of Record plc, commented:
"Our growth strategy continues to deliver as evidenced by a third consecutive quarter of AUME net inflows and further performance fees of £0.5 million.
"Sustained uncertainty in financial markets continues to have only a limited impact on the value of some clients' underlying portfolios in our traditional business for currency products and services.
"Conversely, heightened volatility and inflationary pressure underscores the relevance of our products and offers new opportunities for growth and diversification. Our focus is on ensuring we make the most of such opportunities and I look forward to giving more detail on the progress in our diversification plans at our forthcoming half-year results in November."
Trading Analysis
1. AUME composition
The Group's AUME as at 30 September 2022 totalled US$80.8 billion (30 June 2022: US$77.9 billion), and expressed in sterling totalled £72.3 billion (30 June 2022: £64.2 billion). The composition of AUME by product was as follows:
AUME - US$ billion | ||
30 September 2022 | 30 June 2022 | |
Dynamic Hedging | 10.0 | 10.6 |
Passive Hedging | 62.2 | 58.2 |
Currency for Return | 4.3 | 4.5 |
Multi-Product | 4.2 | 4.4 |
Cash & Futures | 0.1 | 0.2 |
Total | 80.8 | 77.9 |
2. AUME Movement
Net client AUME movement in the three months to 30 September 2022 was as follows:
Net AUME movement - US$ billion | ||
3 months to 30 September 2022 | 3 months to 30 June 2022 | |
Dynamic Hedging | 0.2 | 1.5 |
Passive Hedging | 6.5 | 0.7 |
Currency for Return | 0.0 | (0.3) |
Multi-Product | (0.1) | 0.1 |
Cash & Futures | 0.0 | 0.0 |
Total net flows | 6.6 | 2.0 |
FX movements and mandate volatility targeting | (2.8) | (3.3) |
Movements in global stock and other markets | (0.9) | (3.9) |
TOTAL AUME MOVEMENT | 2.9 | (5.2) |
3. AVERAGE FEE RATES AND PERFORMANCE FEES
During Q2-2023, average fee rates remained broadly unchanged from the previous quarter.
Performance fees of £0.5 million were earned in the quarter.
Record will announce its half year results on 29 November 2022 and its third quarter trading update on 26 January 2023.
-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 |
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