LONDON (Alliance News) – Specialist currency manager Record PLC said Friday its assets under management equivalents fell in sterling terms in its first quarter, due to flat net client flows and negative market movements, but was boosted by foreign exchange.
Record said that as at June 30 its assets under management equivalents stood at USD59.90 billion, up 2.9% from USD58.20 billion as at March 31. However, in sterling terms, assets fell 1.0%.
Net client flows in the period were flat, following USD500.0 million of outflows in the prior quarter. UD1.10 billion of outflows from Dynamic Hedging strategies were offset by inflows into Passive Hedging, Currency for Return and Multi-Product mandates.
Beyond client flows, Record said its assets under management equivalents lost USD700.0 million due movements in markets, but this was more than outweighted by USD2.40 billion gains due to exchange rate movements.
Record noted it earned no performance fees during the quarter, while fee rates for all products remained broadly unchanged.
“It’s pleasing to report continued growth in aggregate AUME in the quarter and to note the diversity of inflows from existing clients across both hedging and return-seeking products, sufficient to offset the previously announced termination of a USD1.2 billion Passive Hedging mandate,” said Chief Executive James Wood-Collins.
Record said it will release a second quarter trading update on October 20.
Shares in Record were down 3.3% at 43.24 pence Friday morning.
By Adam Clark; [email protected]
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