26 January
2024
RECORD PLC
THIRD 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 December 2023 ("Q3-2024").
Q3-2024 Highlights
·
AUME increased by 17% to US$99.5 billion
(FY-24 YTD: +13%)
·
Net inflows of US$7.9 billion for the quarter
(FY-24 YTD: US$6.9 billion)
·
Performance fees of £3.5 million earned
during the quarter (FY-24 YTD: £5.0 million)
Leslie Hill, Chief Executive of Record plc,
commented:
"In a busy quarter it is pleasing to
announce a 17% increase in headline AUME to $99.5 billion and
further performance fees of £3.5 million. Strong net inflows
of $7.9 billion were further bolstered by tailwinds from both
market and FX movements of $1.8 billion and $5.3 billion
respectively.
"Our core currency management
business continues to grow with net inflows into Passive Hedging of
$11 billion in the quarter. This represents approximately
$7 billion from new and existing clients and $4 billion
of assets transferred towards the end of the quarter from the
Multi-Product strategy into Passive Hedging by a longstanding
client, following a strategic decision to switch their
mandate.
"In our asset management business,
we continue to work alongside our clients in making progress
towards the launch of Record's first infrastructure fund. Both we
and our clients remain fully committed to achieving the launch in
the final quarter of the financial year, with revenue flows
starting from FY-25."
Trading Analysis
1.
AUME composition
The Group's AUME as at
31 December 2023 totalled US$99.5 billion
(30 September 2023: US$84.5 billion), and expressed
in sterling totalled £77.9 billion
(30 September 2023: £69.2 billion). The
composition of AUME by product was as follows:
|
AUME - US$
billion
|
|
|
31 December 2023
|
30 September 2023
|
|
Dynamic Hedging
|
15.4
|
14.5
|
|
Passive Hedging
|
76.3
|
60.5
|
|
Currency for Return
|
4.9
|
3.9
|
|
Multi-Product
|
2.5
|
5.3
|
|
Cash & Futures/other
|
0.4
|
0.3
|
|
Total
|
99.5
|
84.5
|
2.
AUME Movement
Net client AUME movement in the
three months to 31 December 2023 was as
follows:
|
Net AUME
movement - US$
billion
|
|
|
3 months
to
31 December 2023
|
3 months
to
30 September 2023
|
|
Dynamic Hedging
|
0.0
|
0.0
|
|
Passive Hedging
|
11.0
|
1.7
|
|
Currency for Return
|
(0.0)
|
(0.3)
|
|
Multi-Product
|
(3.2)
|
(0.1)
|
|
Cash & Futures/other
|
0.1
|
0.2
|
|
Total net flows
|
7.9
|
1.5
|
|
FX
movements and mandate volatility targeting
|
5.3
|
(1.5)
|
|
Movements in global stock and other markets
|
1.8
|
(1.9)
|
|
TOTAL AUME MOVEMENT
|
15.0
|
(1.9)
|
3.
AVERAGE FEE RATES AND PERFORMANCE FEES
During Q3-2024, average fee rates
remained broadly unchanged from the previous quarter. The transfer
of approximately $4 billion of assets from Multi-Product into
Passive Hedging, described above, will impact the ongoing average
fee rate for the Multi-Product strategy, which is expected to
decrease by approximately 4 basis points per annum.
Aggregate performance fees of
£3.5 million were earned in the quarter across both the
Currency for Return and the enhanced Passive Hedging
products.
Record will announce its fourth
quarter trading update on 26 April 2024 and its financial
results for the year ending 31 March 2024 on
28 June 2024.
-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
|