Record Share Discussion Threads

[topvest] 22/4/2022 11:59

This point is the particularly interesting one, given what is going to happen with interest rates imminently:

"Performance fees of £0.5 million were earned in the quarter from opportunities arising from recent increases in interest rate differentials linked to changes in central banks monetary policies."

[wolsey] 22/4/2022 08:54

Decent trading update. Of particular note:
1. Increased inflows to the higher margin Dynamic Hedging product since financial year end (up to possibly USD 2bn by end first half of current financial year)
2. Performance fees of GBP 0.5m for the quarter

I am interested to get the thoughts of others on progress over the past year or two.

[trident5] 22/4/2022 08:27

Yes TV - the interesting snippet in the RNS was about the interest rates. Things would get interesting here if the carry trade returned and their clients fell for it.

[topvest] 22/4/2022 08:13

Well I think its positive, particularly post year-end with the US$2bn dynamic hedging inflow. The £0.5m performance fee in the quarter and net inflows in the quarter are also very positive compared with other asset managers. The critical points for me are 1) growth in higher margin products; and 2) whether there is likely to be materially increased appetite for currency for return type products given the interest rate dynamics in 2022 across the developed world. It's currency for return where they used to make enormous profits before and after IPO in a more normal interest rate environment.

Point 1 is partly factored in to the valuation and is enough to buy the shares and have good forward profitability growth. Point 2 is more of a long-shot, but if it happens will generate a multi-bagger on the share price.

[robsy2] 22/4/2022 07:13

Can't see much to get excited about with these results though as you say Topvest, margins should be improving with higher margin products being sold but costs have also increased substantially as well with (from memory) higher spend on salaries,tech upgrades + a new office. There are also substantial costs involved in handing the business over to the next generation. A Hold at best for me.

[topvest] 22/3/2022 09:51

I've added a few more. It will be interesting to see whether the diversification strategy improves margins. Interest rate increases may also significantly assist the original currency for return strategy that has been lying low for a decade or so.

[konradpuss] 15/3/2022 20:46

Well this must be a record (now did you see what I did there?) 8 shares went through the market today.

The volumes have been very low of late.

I wonder if there would be any bidders for a large block in such a market?

[cockerhoop] 21/1/2022 08:02

This describes the fund pretty well, short term loans to European municipalities juiced with short term loans on receivables debt from Euro blue chips.

[trident5] 17/1/2022 22:32

Today's RNS says Record is the asset manager with EDS (?), Universal seems to be providing the admin.
I think they could make it clearer. I mean how much currency advice does a Euro fund need if investors are based in Europe and UK and assets in Europe- there's effectively only one currency pair to worry about and if you can't predict future currency prices (and no-one reliably can) then you only have a hedge to worry about - which probably could be done on a single Excel sheet.

[cerrito] 17/1/2022 22:28

The way I read it is that it is a fund composed of Euro assets being marketed to German investors so not sure where the currency angle is

[konradpuss] 17/1/2022 22:06

trident5, are you sure? I think you will find they are providing currency advice (as they have always done) to funds e.g. one set up by UBS. This is secondary currently to their usual fee paid advice to large endowments, family offices etc. etc.

[trident5] 17/1/2022 19:28

Yes, since inception they have been a currency manager, they are now an asset manager with no track record in managing these types of assets. I note good asset managers like Jupiter and Polar are trading on a PE of c10.

[cerrito] 17/1/2022 17:26

Good that Mr Market like this mornings RNS.
I need to say when I read it this morning at 730 I did ask myself if REC are wandering away from their core area of expertise.
Anyone else ask the same question?

[johndoe23] 16/1/2022 19:30

Trading update Friday.

[cockerhoop] 23/12/2021 08:32

Cerrito,

There is an additional IMC presentation following last years finals.

Along with a couple of Proactive interviews from 2021



Robsy2,

Leslie Hill didn't come in, she was promoted from head of sales. Certainly appears to be doing a decent job as CEO and a nice touch to suggest the current HoS is better than she was.

[cerrito] 22/12/2021 23:13

I have been a shareholder here for 7/8 years and never managed to get to an AGM. Just caught up with the IMC presentation and to the best of my knowledge they have never done one like this before.
It was the most lively and enjoyable IMC presentation I have listened to and Leslie Hill came over very well. Not often that you hear CEO's saying they do not want to bedblock.
Yes very positive although we need to recognize risks as they transition the tech and management.
Well done to those who bought at under 70 in recent weeks.

[robsy2] 09/12/2021 11:43

Good presentation from the REC team this morning.Things are moving apace . What is becoming clearer now is how sleepy this business had become before Leslie Hill came in. She seems to have energised the culture , sorted out the tech, the motivational pay structure,upgraded the sales function,refreshed the staff culture and got the right people in the right places. They have opened up offices and opportunities and have collaborations with strategic partners that have led to a widening of their product offering to more clients in different geographies and at higher fees.
It has already been quite transformational and bodes well.

[johnrxx99] 03/12/2021 08:19

LOL - City of London Investments

[konradpuss] 02/12/2021 19:01

johnrxx00, from Manchester City? I though it was United that were quoted.

[johnrxx99] 02/12/2021 06:48

Swapped from City to this. Like the results.

[konradpuss] 23/11/2021 20:06

The share price has bounced around a bit however mainly of late on low volumes.

[toptomcat] 23/11/2021 17:20

ST covering this one in IC tonight. Very bullish, past inflection point and on to higher revenue and higher margin growth. Still 50% upside here to his 120p target

[robsy2] 23/11/2021 09:29

I thought so too. The share price has been bouncing around a lot but I am sitting tight.
This is a company on the move.

[trident5] 23/11/2021 08:03

Very good figures today; but I suspect these were largely in the price.