24th Apr 2015 10:07
LONDON (Alliance News) - Currency manager Record PLC Friday reported net inflows of USD2.6 billion in its fourth quarter, as client money poured into its passive hedging and currency for return products to more than offset an outflow from its dynamic hedging products.
Clients put USD1.9 billion into Record's currency for return products and USD1.7 billion into its passive hedging products, while there were outflows of USD1.0 billion from dynamic hedging products in the three months ended March 31.
Net inflows were the driver of an increase in assets under management equivalents to USD55.4 billion from USD52.7 billion during the quarter, with the growth getting a boost of about USD200 million from market movements and partly offset by a detractor of about USD100 million relating to exchange rate movements. Record's passive hedging products account for the bulk of assets under management equivalents, at USD41.2 billion.
The company said it had 55 clients at the end of the fourth quarter. It also recorded a performance fee of about GBP500,000 in the year ended March 31.
"During the quarter, currency markets have seen continued divergent monetary policy, contributing in broad terms to appreciation of the US dollar and depreciation of the euro," Chief Executive James Wood-Collins said in a statement.
The chief executive said that volatility has made a return from its previously depressed levels, while there were "significant" market repurcussions when the Swiss National Bank unpegged the franc from the euro on January 15.
"The diversity of Record's client base by objectives and by geography, the continued predominance of hedging revenues, and diversification of strategies and currency pairs within strategies in return-seeking programmes, have all served well to protect Record from the effects of any single market event over the quarter," Wood-Collins said.
"Furthermore, these market factors continue to contribute to growing interest in currency issues for clients, potential clients and investment consultants, and to create the opportunity for a more supportive environment for both hedging and return-seeking strategies. Our diversified product suite means Record is well placed to take advantage of opportunities as they arise," Wood-Collins said.
"We continue to engage with potential clients across a broad range of currency issues and geographies and are hopeful that further progress can be made in the new financial year, although procurement processes are still expected to be competitive and lengthy with the outcome necessarily uncertain," the chief executive added.
Record shares were down 0.1% at 33.73 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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