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Foreign Exchange

Assets under management drop at Record

UK currency management company Record announced assets under management (AUM) dropped 12% in the fourth quarter.

The company said funds under its control fell from $28.9 billion at the end of September to $25.4 billion at the end of December. Record said the drop was largely due to the loss of its second-largest dynamic hedging contract, while there were also sizeable outflows as the currency manager’s largest client restructured its programme.

There was also a continuation of outflows from Record’s currency-for-return mandate, formerly known as absolute return, that the fund manager enters into currency contracts to generate positive returns.

The company said it had 40 clients on December 31, down from 43 clients on September 30.

James Wood-Collins, chief executive at Record, said although the quarter saw an overall decline in AUM, the company was well positioned to secure further mandates this financial year.

Woods-Collins said the company had taken enquiries for passive hedging in Continental Europe, in particular Switzerland, and for dynamic hedging in the UK.

“We are optimistic about our prospects with these opportunities and we have been awarded, but not yet started, passive hedging mandates, including one for SFr1.8 billion,” he says.

“In the longer term, we are also confident that the increased attention being paid to currency risk by US investors will create more opportunities for hedging in that market.”

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