Shares in Record PLC (LSE:REC), the currency and asset manager, dropped over 5% in early trading on Tuesday after it reported net outflows of around US$2.5bln in the first quarter.
The London-listed group currently has US$86.4bln in assets under management (AUM), a first-quarter update revealed.
In total AUM dropped by US$1.3bln due to "foreign exchange movements and mandate volatility targeting" offsetting around US$1.2bln of outflows.
Passive hedging was the driver for reductions in AUM dropping by US$2.2bln to a total of US$61.6bln.
All other areas of investments including currency for return and dynamic hedging increased quarter-on-quarter.
Foreign exchange movements and mandate volatility targeting added an extra US$1.2bln to the assets, reducing the outflows to US$1.3bln
Record made £500,000 from performance fees in the three months to the end of June.
Leslie Hill, chief executive of Record, believes the group can still achieve targets for the 2024 financial year despite the drops in AUM.
She said: “Notwithstanding the challenging macro-economic backdrop, we expect the business to achieve a number of important milestones in 2024, and look forward to the rest of the year with optimism."
Shares in Record opened at over 86.5p on Tuesday before falling as low as 80.5p