Shares in Record slide on news of management fee cuts

7th Nov 2013 13:56

Shares in specialist currency manager Record tumbled 16 per cent after it revealed it was cutting its management fees in a bid to woo new clients amid increased competition in its market. It said it would amend the fee scale applied to its existing dynamic hedging mandates to bring them in line with those being proposed to potential new clients.This is expected to knock £1.8m off pre-tax profits on an ongoing annualised basis due to the expected £2.6m reduction to management fees.Record's Chief Executive James Wood-Collins said "A higher level of new business enquiries and procurement processes has been accompanied by increased competitive activity. "We have taken the decision to recognise this in fee arrangements with existing and long-standing clients, as well as with potential new clients. In doing so we are hopeful that growth in volume will more than compensate for reduced revenue margins." Shares in Record were down 16% at 28.75p at 14:07 on Thursday.TB