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We are concerned about changes to Record's fee structure
Thursday 26 Apr 2018 Author: David Stevenson

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.


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