17 April 2019 – trading update
Currency specialist Record has released a trading update covering the final quarter of the financial year. Assets under management equivalents expressed in US dollars decreased by 0.9% between 31 December 2018 and 31 March 2019 and decreased by 3.1% when expressed in sterling. Record had 65 clients as at 31 March 2019 (31 December 2018: 65 clients). Net outflows of assets include the remainder of the Passive Hedging mandates previously notified as expected to terminate, and the tactical changes recently undertaken to a client’s Dynamic Hedging portfolio in order to realise gains. For US Dynamic Hedging clients during the quarter, hedging returns in the programmes varied as the US dollar showed mixed performance against the respective weighted baskets of hedged currencies. Investment performance of the FTSE Currency FRB10 index (excess return in sterling) during the three months to 29 March 2019 was +1.67% (three months to 31 December 2018 was -0.34%). The FTSE FRB10 Index Fund continued to track the benchmark index closely, on a 1.8x geared basis. Record’s Emerging Market product investment performance was positive during the quarter and for an un-geared portfolio equated to a quarterly return of +0.98% (three months to 31 December 2018: return of +2.42%). Annualised performance since inception (30 November 2009) for an un-geared portfolio was +1.82% p.a. Investment performance in the Multi-Strategy product that comprises the FTSE Currency FRB10, Emerging Market, Value and Momentum strategies was positive during the quarter. For an un-geared portfolio, the return was +0.41% over the quarter (three months to 31 December 2018: return of +0.77%). Annualised performance since inception (31 July 2012) for Record’s longest-standing Multi-Strategy mandate on an un-geared portfolio basis is +1.02% p.a. During the quarter to 31 March 2019, fee rates for most products remained broadly unchanged from the previous quarter. No material performance fees were earned in the quarter. Results for the year ended 31 March 2019 are due out on 13 June and a first quarter trading update is scheduled for release on 19 July. We rate the shares as a BUY.