23rd Apr 2014 12:04
LONDON (Alliance News) - Record PLC Wednesday said its assets under management equivalents increased by USD800.0 million over the fourth-quarter, driven by its passive hedging product line and positive movements in exchange rates and in global stock and other markets.
In a statement, the specialist currency manager said assets under management equivalents increased to USD51.9 billion at the end of March from USD51.1 billion at the end of December.
Net inflows totalled USD300.0 million, as USD1.3 billion in passive hedging net inflows offset net outflows from dynamic hedging and cash and futures. However, the dynamic hedging figures, which showed a USD900.0 million net outflow, don't reflect the termination of a dynamic hedging mandate announced on April 1. In the previous quarter, Record attracted USD12.0 billion in net client inflows.
The net client outflows were attributable to reductions in mandate size for some existing clients, Record said.
Assets under management equivalents also were boosted by a combined USD500.0 million arising from movements in exchange rates and in global stock and other markets.
During the quarter ended March 31, fee rates for all products remained broadly unchanged from the previous quarter.
"As already announced, this quarter has seen the commencement of a new dynamic hedging mandate as well as modest but welcome inflows into the FTSE FRB10 Index Fund. This news was tempered somewhat by the termination of a dynamic hedging mandate just following quarter-end," Chief Executive James Wood-Collins said in a statement.
"Given the size of Record's hedging mandates and the infrequent nature of their being awarded, it is no surprise that this quarter's inflows have been less dramatic than those of last quarter," Wood-Collins added.
"Furthermore, some of the interest from US investors in currency hedging observed since last summer has weakened in the absence of pronounced US dollar appreciation, although this interest could return quickly. Our currency management strategies continue to be of interest to more potential clients and consultants than has been the case historically, which we expect to lead to opportunities in return-seeking mandates as well as in hedging," he said.
"Our diversified range of strategies and ability to provide flexible, bespoke solutions means we are well placed to help investors with their currency requirements. Whilst procurement processes are typically competitive, and their timing uncertain, we are hopeful that further progress can be made in 2014," Wood-Collins said.
Record shares were Wednesday quoted at 34.90 pence, down 1.3%.
By Samuel Agini; [email protected]; @samuelagini
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