Record PLC Reports Record AUM of $115.9bn in Q3 Trading Update

Record PLC hits all-time high AUM of US$115.9bn in Q3 FY26

Record PLC has delivered another quietly confident quarter. Assets under management (AUM) rose to a fresh record of US$115.9bn at 31 December 2025, up from US$110.3bn at the end of September. The engine was a mix of positive net flows (new client money), supportive markets, and a modest headwind from currency movements.

Management fee rates were broadly unchanged and earnings expectations for the year remain intact. On top, performance fees for the quarter were strong at £1.6m, taking the year-to-date total to £2.4m.

Quick read: the key numbers that matter

Metric	Q3 FY26	Comment
AUM (period end)	US$115.9bn	New record high
Change in AUM (quarter)	+US$5.6bn	From US$110.3bn to US$115.9bn
Net flows	+US$3.3bn	Positive client demand
Underlying asset movement	+US$3.1bn	Market appreciation
FX movement and scaling	−US$0.8bn	Currency headwind
Performance fees	£1.6m in Q3; £2.4m YTD	Q3 ahead year-on-year; YTD behind prior year’s £2.9m
Average fee rates	Broadly unchanged	Stable revenue yield
Earnings expectations	Unchanged	Guidance maintained

Where the growth came from: product-by-product

Record breaks out AUM by strategy. Passive Hedging did the heavy lifting, while FX Alpha chalked up a second quarter of inflows. Here is the official breakdown for the three months to 31 December 2025 (US$bn):

Product	30 Sep 2025	Net flows	Asset movement	FX/scaling	31 Dec 2025
Passive Hedging	72.0	+2.4	+2.3	−0.7	76.0
Dynamic Hedging	17.2	−0.1	+0.5	0.0	17.6
Solutions for Asset Managers	17.2	+0.1	+0.3	−0.2	17.4
Risk Management (total)	106.4	+2.4	+3.1	−0.9	111.0
FX Alpha	1.7	+0.9	–	+0.1	2.7
Custom Opportunities	0.8	–	–	–	0.8
Other	0.3	–	–	–	0.3
Absolute Return (total)	2.8	+0.9	–	+0.1	3.8
EM Local Debt	1.0	–	–	–	1.0
Infrastructure	0.1	–	–	–	0.1
Private Markets	1.1	–	–	–	1.1
Total	110.3	+3.3	+3.1	−0.8	115.9

My take on the mix

• Passive Hedging was the standout, adding US$4.0bn to end at US$76.0bn. That combination of healthy inflows and asset growth signals steady institutional demand for currency risk control.
• Dynamic Hedging saw a small outflow of US$0.1bn but still grew to US$17.6bn thanks to markets. Not a worry, but worth monitoring.
• FX Alpha posted a second consecutive quarter of inflows, with US$0.9bn of net new money and AUM up to US$2.7bn. Momentum here matters, as alpha strategies typically carry higher fees and diversify revenue.
• Absolute Return in aggregate increased from US$2.8bn to US$3.8bn, driven by flows and positive FX. Individual asset movements were not disclosed for these lines.

Performance fees: strong quarter, mixed year-to-date

Record booked £1.6m of performance fees in Q3 FY26, up from £1.3m in the same quarter last year. Year-to-date, fees stand at £2.4m versus £2.9m in the prior year-to-date. That is a good reminder that performance fees are episodic. The quarter was excellent, but the nine-month tally is still trailing last year.

The more durable read-across comes from management fees, where average fee rates were broadly unchanged. With AUM at a new high, that points to a supportive backdrop for recurring revenue.

Why this update matters for shareholders

• Record AUM is not just cosmetic. Management fees are typically charged as a percentage of AUM, so bigger usually means better for revenue, all else equal.
• Net inflows of US$3.3bn show client demand remains positive across core strategies. That is more powerful than market moves because it reflects mandate wins and retention.
• FX was a modest headwind this quarter at −US$0.8bn. Currency can cut both ways, but the impact was comfortably outweighed by flows and asset gains.
• Earnings expectations are unchanged. In plain English, management sees no change to the outlook for this financial year based on what they know today.

Jargon buster

• AUM: Assets under management. The total value of client assets Record manages.
• Net flows: The sum of client subscriptions minus redemptions. Positive = more money coming in than going out.
• Underlying asset movement: The change in AUM from market performance of clients’ underlying assets.
• FX movement and scaling: The impact of currency swings and any client-led changes to hedge ratios or exposure sizing.
• Performance fees: Variable fees earned when strategies outperform agreed benchmarks or hurdles.

What I’ll watch next

• Continuation of FX Alpha inflows. A second successive period is encouraging. A third would sharpen the trend.
• Stability in fee rates. The RNS says rates were broadly unchanged. Holding the yield while growing AUM is a sweet spot.
• Performance fee cadence. A strong Q3 helps, but the year-to-date comparison remains slightly behind. It would be positive to see that gap close into year-end.

Bottom line: a clean, confidence-building quarter

This is a tidy update from Record. AUM is at an all-time high, flows are positive in key areas like Passive Hedging and FX Alpha, fee rates are steady, and guidance is unchanged. The only soft note is that year-to-date performance fees trail last year, but that is inherently lumpy.

Overall, the direction of travel looks favourable. If Record can maintain inflows and keep fee rates steady, the higher AUM base should support earnings momentum into the close of FY26.