Record PLC Reports Record AUM, Fueled by Strong Inflows

Record plc (LON: REC) announced a robust trading update for the three months ended December 31, 2025 (Q3 FY26), highlighted by a record Assets Under Management (AUM) figure. The specialist currency and asset manager reported AUM of US$115.9 billion, marking a new high for the company.

This AUM growth was primarily driven by positive net flows and underlying asset growth, partially offset by foreign exchange movements. The company also reported a strong quarter for performance fees.

Key revenue drivers included significant inflows and growth in underlying assets within the Passive Hedging segment, which contributed substantially to the overall AUM increase. The FX Alpha segment also experienced a second consecutive quarter of inflows, signaling growing investor confidence in Record plc's currency strategies. Furthermore, the company earned £1.6 million in performance fees during Q3 FY26, bringing the year-to-date total to £2.4 million.

The increase in AUM from US$110.3 billion at September 30, 2025, to US$115.9 billion at December 31, 2025, reflects the impact of net flows, asset movement, and FX fluctuations across various product lines. Passive Hedging saw a notable increase, reaching US$76.0 billion, driven by US$2.4 billion in net flows and US$2.3 billion in asset movement, partially offset by a US$0.7 billion FX impact. FX Alpha also saw significant gains, climbing to US$2.7 billion, supported by US$0.9 billion in net flows and a US$0.1 billion FX impact. Dynamic Hedging AUM increased slightly to $17.6bn.

Record plc's consistent AUM growth directly impacts its revenue and profitability. The increase in performance fees further enhances earnings, demonstrating the company's ability to generate returns for its clients. Average fee rates remained broadly unchanged from the previous quarter. The company's strong cash flow and stable financial position allow it to consider various options for returning value to shareholders, such as dividends or share buybacks, although no specific announcements were made in this update.

The positive Q3 FY26 results are likely to have a favorable impact on Record plc's stock price. The record AUM figure and strong inflows suggest growing investor confidence in the company's strategies and management team. The increased performance fees could also lead to upward revisions in earnings estimates.

CEO Jan Witte commented: “At US$115.9bn, AUM ended another quarter at the highest level we have ever reported, following positive net flows and underlying asset growth. We saw strong inflows and growth in underlying assets for Passive Hedging, and a second successive period of inflows for FX Alpha. It was also an excellent quarter for performance fees, with a further £1.6m earned, bringing total performance fees for the year to date to £2.4m.”