Record (REC) Investor Update summary

Management and strategic developments

• New CEO and CFO appointments, plus key hires in Chief of Staff and Chief Investment Officer roles, strengthening leadership and expertise.

• Opened a new head office in London, consolidating UK staff and enhancing collaboration.

• Reset technology strategy with an in-house IT team, improving cost-effectiveness and operational alignment.

• Launched new product pillars: risk management, absolute return, and private markets.

• Expanded product offering with innovative funds, including infrastructure equity and Sharia-compliant supply chain finance.

Financial performance and outlook

• Assets under management remained above $100 billion, despite some mandate terminations and outflows.

• Total revenue decreased 8% due to lower management and performance fees, but costs were reduced by 6%.

• Operating margin declined to 25.6%, with operating profit down 15%; EPS increased 4% to 5.03p.

• Ordinary dividend increased to 4.65p, representing 92% of EPS.

• Outlook anticipates low single-digit revenue growth and flat EPS, with future growth tied to private market fund deployment.

Product and client developments

• Risk management products, especially hedging for asset managers, saw strong growth and remain the core revenue driver.

• Absolute return products experienced revenue decline due to mandate losses, but FX Alpha continued to grow.

• Private markets pillar expanded with new funds and bespoke solutions, expected to drive long-term, higher-margin growth.

• Performance fees from enhanced passive hedging increased, providing more stable revenue.

• Client base remains concentrated but features long-term, stable relationships.