Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineRecord caught by dollar weakness, outflows and change to fees
Record (REC) 43p
Loss to date: 6.8%
Original entry point: Buy at 46.12p 22 June 2017
Currency manager Record’s (REC) recent quarter to 31 March update led to a 10% decline in its share price, erasing the gains the company had made since we highlighted it.
Record helps large institutional investors such as pension funds reduce the risk of losing money due to changes in the values of currencies.
The company revealed that its assets under management equivalents had declined by $1.7bn due in part to clients making redemptions from its passive and dynamic hedging strategy.
Most concerning for us are changes to the fee structure. Record says that some of its passive hedging clients have changed from a management-only fee to a low management fee with a performance related fee.
The company did not generate any performance fees during the fourth quarter and this was not the first quarterly period to disappoint in this way.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Big News
- Eurozone relief... but for how long?
- Good week for the markets but setbacks for Reckitt and Clarkson
- Stadium purchase to accelerate TT Electronic’s profits scale
- Online isn’t necessarily the ticket to retail success
- Should shareholders get involved with Capita’s £701m rights issue?
- Fast growth vaping firm Supreme to float on the stock market
