15 November 2024
Recordfg.com
Record Financial Group
H1 FY25 Results Presentation
15 November 2024
Recordfg.com
Agenda
Highlights
Strategic Update
Financial Performance
Summary & Outlook
Highlights
AUM | 4% | |
$106.0bn | ||
vs 31/3/24 | ||
Revenue | (2%) | |
£21.1m | ||
vs H1FY24 | ||
Operating margin | (178bps) | |
26.8% | ||
vs H1FY24 | ||
EPS | 4% | |
2.58p | ||
vs H1 FY24 | ||
Interim dividend | ||
per share | -% | |
2.15p | ||
- AUM up 3.7% since year end; up 25% y-o-y
- Growth in management fees from core currency management products
- Launch of Infrastructure Equity Fund marks a new chapter for Record and a foundation for future growth
- Key hires in RAM to build on success and accelerate growth
- Higher EPS to Record shareholders reflecting minority cost share
- Interim dividend maintained at 2.15p
AUM ($bn)
87.7 | 102.1 | 106.0 | ||||||
65.9 | 80.1 | 84.1 | 83.1 | 80.8 | 84.5 | |||
H1-21 | H2-21 | H1-22 | H2-22 | H1-23 | H2-23 | H1-24 | H2-24 | H1-25 |
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15 November 2024
Recordfg.com
Agenda
Highlights
Strategic Update
Financial Performance
Summary & Outlook
Focus on our strategic objectives
Organic Growth
- Overall revenue down 2% with growth offset by the one-off impact of a large client mandate restructure
- AUM inflows in higher-margin products - Hedging for Asset Managers, FX Alpha, EM debt
Improve Quality of Earnings
- Business reorganised by product with clearly defined accountabilities
- Infrastructure Equity Fund will deliver committed long-term revenues
Operational Excellence
- Under the new IT leadership, implemented roadmap to ensure client technology remains state-of-the-art and internal infrastructure can be scaled to support growth
- Operational infrastructure to support growth in European asset management business
- Lease signed on new London headquarters
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Products
Product categories where we can offer a unique value proposition and where we can be best-in-class
- AUM up $21.5bn (25%) over the last 12 months across all products
- Risk management products increasingly attractive in periods of political and economic uncertainty
Currency Management ($103.4bn)
Passive FX | Active FX | Hedging for | ||||
Asset | FX Alpha | |||||
Hedging | Hedging | |||||
Managers | ||||||
Asset Management ($2.6bn)
Custom Solutions | ||||
EM Debt | ||||
Infrastructure | Private Credit | |||
Equity | ||||
Risk Management | Return-seeking |
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Currency Management
- Currency Management AUM increased by $25bn since last year, to reach a record $103.4bn. During the period, AUM increased in every Currency Management product
- Strong pipeline for Hedging for Asset Managers and FX Alpha
Passive FX
Hedging
- AUM growth driven by FX movements; modest underlying outflows
$68.3bn | 3% |
vs H2 FY24 | |
Active FX Hedging
- Weak USD affecting performance
$16.8bn | 2% |
vs H2 FY24 | |
Hedging for Asset
Managers
- New mandate wins during the period
- Strong sales pipeline
$12.3bn 18%
vs H2 FY24
FX Alpha
- Highly attractive offering continues to deliver for existing client and attract new interest
$6.0bn | 33% |
vs H2 FY24 | |
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Asset Management
- Launch of Infrastructure Equity Fund, an important milestone in building our Asset Management offering
- Active pipeline of large scale opportunities
EM Debt
- EMSF launched June 2021
- Trailblazing approach to EM local debt
$1.1bn | 14% |
vs H2 FY24 | |
Infrastructure
Equity
- Respond to demand from Swiss pension fund clients
- Investor opportunities in
world's megatrends
(eg energy transition; digital transformation)
$1.1bn | NEW |
(commitments) | |
Active pipeline
- Focussed on our unique capabilities to deliver custom solutions at large scale
- Includes Private Credit and expansion of GP Stakes
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Record Asset Management
• Growing demand for credible, long-term |
partners with a strong execution track |
record |
• Comprehensive asset management services: |
• effective governance framework |
• managing legal structures |
Record plc | RAM | |
management | ||
team | ||
100% 41% 59%
(51% voting rights)
• supporting complex private market |
investment strategies |
• Bafin regulated, Frankfurt-based subsidiary |
• Highly experienced team based in Frankfurt, |
Zurich, Zug, and London |
• Management shareholding aligns incentives |
Record
Currency
Management
Limited
Record Asset
Management
GmbH
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