News Column

Record PLC Reports Rise In Assets Under Management Equivalents

July 18, 2014

Samuel Agini

LONDON (Alliance News) - Specialist currency manager Record PLC Friday said its assets under management equivalents increased to USD54.1 billion from USD51.9 billion in the three months to the end of June, as net client inflows to passive hedging programmes more than offset net client outflows from dynamic hedging programmes.

In a statement, Record reported GBP900,000 in passive hedging net client inflows, mainly due to new mandates for existing clients. It reported GBP600,000 in dynamic hedging net client outflows, as it was hit by a previously reported decision by a dynamic hedging client to terminate a mandate that would have been expected to generate GBP700,000 in revenue and add GBP500,000 to pretax profit in the financial year to the end of March 2015.

Record's dynamic hedging product line aims to eliminate the impact of currency movements on elements of clients' investment portfolios that are denominated in foreign currencies when these movements are expected to result in an economic loss to the client, but not to do so when they are expected to result in an economic gain. Its passive hedging product line aims to eliminate fully or partially the economic impact of currency movements on elements of clients' investment portfolios that are denominated in foreign currencies.

"It remains the case that many US investors have greater exposure now to foreign currencies than has historically been the case and, whilst interest in currency hedging observed since last summer has abated somewhat in the absence of pronounced US dollar appreciation, this interest could return quickly. We've also seen the re-emergence of interest in currency for return strategies, and we hope to build further on the recent flows into the FTSE FRB10 Index Fund," Chief Executive James Wood-Collins said in a statement.

"Our currency management strategies continue to be of interest to potential clients and consultants in North America, Switzerland and the UK. Furthermore, our diversified product range and ability to provide flexible, bespoke solutions means we are well-placed to help investors with their varied currency requirements. Whilst procurement processes are typically competitive, and their timing uncertain, we are hopeful that further progress will be made in the current financial year," Wood-Collins added.

Record shares were Friday up 1.4% at 34.98 pence.

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Source: Alliance News

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