Record Share Discussion Threads

[robsy2] 07/1/2016 08:42

I've bought back in at 25.35, the yield is now nearly 7%. There is plenty of cash.
Reorganising a 500m mandate doesn't sound that catastrophic/material...
so a 12% discount on yesterdays price looks like a buying opportunity.
They are punished for being too transparent.

[topvest] 07/1/2016 07:49

Another bit of bad news for Record, albeit it's just another bit of short term business coming in and then going out again. That's two short term mandates that came in last year and went out again. Hopefully, they will secure some longer term business soon now that the US have raised interest rates. There is also a chance these mandates may come back at some point. Forex and interest rate management is a real issue for businesses and so the background environment is better than it has been for 4/5 years. They obviously need to win some more mandates to keep the business growing. I will keep patient with this one as they are a good business and well run.

[felix99] 08/12/2015 12:39

Shareholders will always earn second here from what I have seen - and despite favourable environment to pick up mandates they seem to lose as many as they win , net result not a lot of progress for shareholders, whilst the salaries keep being drawn regardless.

[chrisdgb] 08/12/2015 12:11

Just going through the report and accounts, some tasty salaries on offer..!!

[topvest] 01/10/2015 14:57

That's a disappointing client loss but at least it won't take effect for a few months. Trouble is this is higher margin business and c10% of their dynamic hedging book. Need some contract wins I guess. Still think this is a good business and these wins will no doubt come sooner or later. Happy to hold.

[robsy2] 01/10/2015 08:56

I have sold down my holdings.I'll stay on the sidelines for now. There has been much talk of engaging with prospects and clients but the clients seem to be leaving.... so I am as well for the time being.
R2

[topvest] 30/8/2015 17:26

It's a bit disappointing but was already flagged that this might happen. Short to medium term prospects are still very good in my view.

[robsy2] 28/8/2015 10:02

Thanks TMF
More or less as expected. 2016 mitigated by having 1/3 of the income booked.
The positives remain in place .
+ more volatility is good for business
+ conservative forcasts.no new mandates factored into the forecast figures.
+ 3 year track record helps sell the higher margin funds.
+ divi high and secure

Let's see if they can deliver their clients and us something.
R2

[tmfmayn] 28/8/2015 09:01

Edison broker note out

[spooky] 25/8/2015 11:58

I would be a little careful with those calculations, my information is that they are inaccurate, you may wish to call the company directly.

[robsy2] 25/8/2015 11:54

yes you are right.
Ok ,lets have another look, rough figures, so please correct me if I'm wildly wrong...
year 2015 return seeking strategy revenue 2.8m of the 20m turnover.so 4.9 down to 2.1 means a 57% drop in fees for the whole year so that is a drop of 1.6million.
so adjusted income 2016 7.7 less 1.6 = 6.32
tax at 22% post tax =1.39, leaving net income 5m GBP ish in 2016 against 2015 figure of 6m GBP . a reduction of 17%
eps 2015 2.65
eps 2016 2.65 -17% = 2.2p, dividend cost 1.65p so yes not good and yes its material but I still see a dividend being paid and mandates can be won, they suggest that this money may flow back in, i did in 2015 and it is only the second quarter of 2016 year
Or is this a sign of something more serious?
R2

[tmfmayn] 25/8/2015 11:26

Robsy2 -- think return-seeking AUMe now $2.1bn (4.9 at Q1 less 2.8). my rough sums suggest hit to revenue of c£2.8m and something above £2m on profits.

[robsy2] 25/8/2015 09:58

I've topped up,had to pay 32p,so they are already off the bottom.At 32p the yield is 5.5%. Overreaction, IMHO. Return seeking strategies year end 2015-4.86b now 3.8b, at 16bps means a bottom line hit of 600k GBP ie a 2.87% fall in net income. Clients will come and go and with quarterly reporting you get a blow by blow acount , maybe too much information.
R2

[wjccghcc] 25/8/2015 09:05

Doesn't look like they've lost the mandate as they say its size may continue to be volatile. Looks more like the client adjusts the amount from quarter to quarter.

[boonkoh] 25/8/2015 09:01

Surprised for the fall. Part of the new mandate was temporary anyways and due to be unwound at some point. But they have lost the new mandate and more from one client, which is troubling.Fall seems really drastic though.

[wjccghcc] 25/8/2015 09:00

Seems a bit of an overreaction. Net, they're only down $1.05bn since the Mar year end position of $55.4bn. Agree it's currency for return so a higher fee rate, but a 22% fall in the value of the company when 50% of the mkt cap is net cash? I've been buying at 29.7p.

[bdroop] 25/8/2015 08:57

Yes. Stinging a bit this morning. Wincing but holding. Yields keep me interested..

[tmfmayn] 25/8/2015 08:37

brownie -- revenue and earnings will take a hit with this news. AIUI, fees are received based on a percentage of AUMe and not that dependent on whether the client makes a profit or not (though there may be performance fees if things go really well). If the client is unhappy with the investment performance and/or the associated fees paid, they tend to walk away.

[brownie69] 25/8/2015 08:33

Does the companies profits take a direct hit with the news today? ie are their fees dependant upon only making profits or will they get their fees regardless of whether the underlying funds make profits or not?

Thanks,

[bdroop] 25/8/2015 08:00

Ah! Apologies. Reliant on a small number of clients for their gains or setbacks...

[qs99] 25/8/2015 07:54

thanks.....will avoid for now, RNS was short / sweet and for an ignoramus like me, not clear!

[felix99] 25/8/2015 07:48

My thoughts are as they were when I sold out a while back - much promise but never seems to perform even when currency volatility should play into their hands to win new clients. Looks like they caught a bath with Chinese devaluation is my only thought of the huge swing? Must mean lovwer fees based on lower value FUM?

[qs99] 25/8/2015 07:45

bdroop, many thanks. i meant on the RNS this morning!

[bdroop] 25/8/2015 07:37

Quality ( and value ) share, with a long formed base around this level, reliant on US pension funds to mitigate currency fluctuation and risk. Which is what we're seeing a lot of right now. Healthy dividend too. My biggest holding currently, so I'm biased.

[qs99] 25/8/2015 07:11

anyone care to comment on this?