Home Market Shares in currency hedging firm Record have plummeted after outflows

Shares in currency hedging firm Record have plummeted after outflows


Shares in London-listed Record, which provides currency hedging services to investors, have plummeted by more than 12 per cent today after it revealed cloudy fourth-quarter results.

The firm said it had experienced a drop in its assets under management equivalents, of 2.7 per cent in US dollar terms or 6.3 per cent in sterling.

Its assets under management slipped from £47.3bn to £44.3bn, partially due to movements in "stock and other market levels" which its products were linked to.

Read more: Commodity investors: how to hedge your US dollar exposure

Investment performance was negative across Record's FTSE Currency FRB10 Index Fund, which tracks the currency index, due to the index's downward slide. Its emerging markets products were also negative.

"Progress on Record's Currency for Return product has continued to be made with the seeding of a Multi-Strategy fund during the quarter and the signing of a segregated Multi-Strategy client expected to fund in the current quarter," said Record's chief executive James Wood-Collins.

"We continue to engage with existing and potential clients on currency management strategies across Record's full product suite, and we are optimistic about making further progress in the current financial year."

Fee rates across most products were generally unchanged, Record said, and it earned no performance fees.

Read more: The currency hedging conundrum


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