Record PLC (LON:REC), the currency and derivatives manager, saw assets under management equivalents (AUME) rise by 37% in the year to the end of March.
AUME rose to a record level of US$80.1bn (£57.8bn) at the end of the company’s fiscal year, helped by net inflows of US$9.7bn.
The asset management firm saw diversified AUME net inflows in the year of US$2.1bn into Passive Hedging and across its higher-margin Dynamic Hedging (US$6.6bn) and Multi-Product (US$1.0bn) strategies.
Record’s Dynamic Macro Currency strategy and its Global Macro strategy were closed in the quarter owing to sub-optimal customer demand.
Inflows have reduced the dominance of the firm’s lower-margin Passive Hedging products, Record noted, adding that it continues to expect the Passive Hedging products to be subject to fee pressure in the future.
Client numbers grew by 17% during the year to 89 from 72 a year before.
The last quarter of the fiscal year saw AUME grow by 7%, with net inflows of US$4.9bn. Client numbers rose by 10% during the quarter.
Fee rates remained broadly unchanged from the previous quarter. Performance fees of £0.1mln were earned in the quarter, Record said.
"Our business has continued to grow and evolve in line with our strategy of accelerated growth, planning for generational change and adding value for our stakeholders,” said Leslie Hill, the chief executive of Record.
"Good progress has been made on developing the new EM Sustainable Finance fund, which we now expect to launch in the current quarter, slightly later than originally planned, with an initial size anticipated to be between US$200mln and US$500mln,” Hill revealed.
“This product has been developed in collaboration with one of the largest wealth managers in Switzerland, and offers higher margins, product diversification benefits and underscores our capabilities in the fast-growing sector of ESG and sustainable investment, an area of our business that we aim to grow and develop going forward,” he added.
"Our business continues its transition in terms of its modernisation and growth. Looking ahead, we believe digital technology is transforming our industry and will provide opportunities for business growth and diversification, and we are committed to ensuring this opportunity is grasped with both hands. We are well-positioned with a robust balance sheet, long-standing and strong client relationships, and an excellent team,” Hill asserted.
“Both our core and new product offerings give a strong platform for revenue growth, and combined with our innovation and the expected scalability, efficiencies and opportunities afforded through our adoption of new technology we expect to see the financial benefits of these more fully in the current financial year,” the chief executive concluded.