Record reports solid rise in assets under management

26th Apr 2024 08:53

(Sharecast News) - Specialist currency and asset manager Record said in a trading update on Friday that in the 2024 financial year, its assets under management equivalent (AUME) jumped 17% to $102.2bn.

The London-listed firm said despite a slight decrease in net inflows to $6.8bn in the 12 months ended 31 March, compared to $9.1bn in the prior year, it maintained its strong momentum in attracting client investments.

Performance fees earned during the year amounted to £5.8m, consistent with the previous year's figure.

Throughout the fourth quarter of 2024, average fee rates remained stable compared to the prior quarter, indicating a consistent performance in revenue generation.

"I am excited to take over the reins as CEO at a time when the group's AUME has reached new heights and the outlook for our business remains strong," said chief executive officer Dr Jan Witte.

"As recently announced in the trading update on 22 March, AUME continues to grow and now exceeds $100bn for the first time in our 40+ year history.

"An AUME increase of 17% over the 2024 financial year, closing the year at $102.2bn, presents a milestone which reinforces the already strong foundations upon which the group can continue to build."

Dr Witte said the company's growth was the result of a combination of increased demand from existing clients, who were increasing their mandates, and new clients.

"The net inflows into currency management of $15.6bn over the last two years represent 19% of 2022 closing AUME.

"In addition, the launch of two new funds has delivered net inflows into asset management of $0.3bn during 2024.

"Building on our existing proposition and the demand we observe for our services as a specialist asset manager, we are now refining our product range to focus on a select number of best-in-class products which present attractive and meaningful opportunities for us, making Record a stronger, less concentrated, and more robust business."

Jan Witte said that, following the decision to discontinue development of the R-Platform and the consequent impairment write down of £1.9m, announced on 22 March, the firm was also continuing its review of its expenditure and resource allocations to ensure they remained fit for purpose and continued to offer value-for-money for our shareholders.

"I look forward to the year ahead, and to working hard with a strong team of colleagues in growing the business further."

Record said it would announce its 2024 results on 28 June, followed by a first-quarter trading update on 26 July.

At 0833 BST, shares in Record were up 5.86% at 65p.

Reporting by Josh White for Sharecast.com.