Record PLC (LSE:REC) generated US$2bn of net inflows during the first quarter of its 2023 financial year, more than double the inflows recorded in the prior quarter, according to a trading update today.
The group’s total assets under management equivalents (AUME) stood at US$77.9bn as of 30 June, down from US$83.1bn at the end of the prior quarter, due to the impact of foreign currency and stock market movements.
Its assets were composed largely of passive hedging assets, which comprised US$58.2bn of the total, followed by dynamic hedging at US$10.6bn.
The currency and derivatives manager said it expects to build the passive hedging mandate it was recently awarded to US$8bn by the end of the year, subject to final negotiations.
It netted £2.3mln in performance fees during the quarter that ended on 30 June, with average fee rates “broadly unchanged” from the previous quarter.
Its net inflows were up 150% from US$800mln in the three months to 31 March.
"Notwithstanding the current challenging macro-economic environment, it is pleasing to report a positive quarter for the group in terms of net inflows of US$2.0bn, performance fees of £2.3mln and the award of a new and significant Passive Hedging mandate,” said the firm’s chief executive Leslie Hill.
"As expected, uncertainty in financial markets linked to both economic and heightened political pressures has continued to have an impact on the value of some clients' underlying portfolios, primarily within our Passive Hedging product, reflected by a decrease in AUME from market movements of 4.7% (US$3.9bn) over the quarter."