Record reports solid growth in assets under management

26th Jan 2024 07:17

(Sharecast News) - Currency and asset manager Record reported a significant increase in assets under management and earnings (AUME) in its third quarter on Friday, surging 17% to reach a total of $99.5bn.

The London-listed firm said the robust growth in AUME built on the year-to-date increase of 13%, showcasing Record's steady progress in managing and growing its clients' assets.

During the quarter, Record saw net inflows of $7.9bn, contributing to the year-to-date net inflows of $6.9bn.

Additionally, the company reported performance fees of £3.5m generated in the quarter, with a year-to-date total of £5m.

The fees were earned across both the currency for return and enhanced passive hedging products.

Record said the composition of AUME by product showed an impressive growth trajectory, with the total AUME in dollars standing at $99.5bn as of 31 December, compared to $84.5bn on 30 September.

In sterling, that translated to £77.9bn, up from £69.2bn at the end of the previous quarter.

Average fee rates remained relatively stable during the third quarter.

However, the transfer of about $4bn of assets from multi-product into passive hedging was expected to impact the average fee rate for the multi-product strategy, leading to an estimated decrease of approximately four basis points per annum.

Looking ahead, Record said it was planning to release its fourth-quarter trading update on 26 April, and its financial results for the year ending 31 March on 28 June.

"In a busy quarter it is pleasing to announce a 17% increase in headline AUME to $99.5bn and further performance fees of £3.5m," said chief executive officer Leslie Hill.

"Strong net inflows of $7.9bn were further bolstered by tailwinds from both market and foreign exchange movements of $1.8bn and $5.3bn, respectively.

"Our core currency management business continues to grow with net inflows into passive hedging of $11bn in the quarter."

Hill said that represented approximately $7bn from new and existing clients, and $4bn 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 the 2025 financial year."

At 1053 GMT, shares in Record were up 6.5% at 70.5p.

Reporting by Josh White for Sharecast.com.