17th Oct 2014 08:08
LONDON (Alliance News) - Increasing divergence in central bank policy and related rise in volatility in currency markets is generating interest in Record PLC's currency for return strategies, Chief Executive James Wood-Collins said in a statement.
In a statement, Wood-Collins, who has led the currency manager for four years this month, said Record expects US investors to show greater interest in currency management and renewed interest in hedging from UK investors if the recent appreciation in the dollar is sustained.
"We continue to see broad interest across our diversified product range from potential clients and consultants in North America, Switzerland and the UK. 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 said in a statement.
In a second-quarter trading update, Record said its assets under management equivalents fell to USD52.6 billion at the end of September from USD54.1 billion at the end of June. In sterling, assets under management equivalents increased to GBP32.4 billion from GBP31.6 billion.
Record said its dynamic hedging programmes, under which it seeks 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, saw USD100 million of net outflows in the three months ended September 30.
Record said its dynamic hedging programmes performed as expected for US and UK clients.
The currency manager's passive hedging programmes, under which it seeks to eliminate fully or partially the economic impact of currency movements on elements of clients' investment portfolios that are denominated in foreign currencies, saw USD200 million of net outflows.
However, its currency for return programmes, through which Record enters into currency contracts for clients with the objective of generating positive returns, saw USD100 million of net inflows.
Record shares were Friday quoted up 4.8% at 31.95 pence.
By Samuel Agini; [email protected]; @samuelagini
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