Record PLC Reports Record High AUM of $110.3 Billion in Q2 FY26

Record PLC Q2 FY26: Record-high AUM, modest inflows, and new private markets activity

Record PLC has posted a strong second quarter, with assets under management (AUM) hitting a new peak of US$110.3 billion as at 30 September 2025. The lift was driven mainly by positive market moves in clients’ underlying assets, while overall net client flows were “marginally positive”.

The quarter also saw a first €100 million deployment from Record’s Infrastructure Equity fund and a return to positive momentum in FX Alpha. Performance fees came in at £0.5 million for Q2, taking first-half fees to £0.8 million.

Q2 FY26 at a glance: what moved the numbers

Three levers matter here: net flows (client money in or out), asset movements (market performance of underlying assets), and FX/scaling effects (currency shifts and any sizing changes). In Q2:

• AUM rose from US$107.9 billion to US$110.3 billion.
• Net flows were slightly positive at US$0.1 billion.
• Asset movements added US$2.3 billion.
• FX and scaling were neutral overall.

CEO Jan Witte flagged strong inflows into Solutions for Asset Managers (SAM) and a swing back to positive flows in FX Alpha after successive outflow periods. That helps sentiment, because those are areas where Record is focused on growth and differentiation.

Where the growth came from: product-by-product AUM shifts

Record splits its book into “Risk Management” (currency hedging and related) and “Absolute Return”/“Private Markets” strategies. Here’s the quarter in brief, using Record’s own categories:

• Passive Hedging: AUM up to US$72.0 billion, despite net outflows of US$1.4 billion, thanks to US$2.2 billion of asset gains.
• Dynamic Hedging: Slight net outflow of US$0.1 billion; AUM ended at US$17.2 billion.
• Solutions for Asset Managers (SAM): Net inflows of US$1.1 billion; AUM up to US$17.2 billion. This strategy was previously called Hedging for Asset Managers.
• Risk Management (the sum of the above): Net outflows of US$0.4 billion more than offset by US$2.2 billion of asset gains; AUM rose to US$106.4 billion.
• FX Alpha: Net inflows of US$0.3 billion and a small positive FX effect; AUM increased to US$1.7 billion.
• Custom Opportunities: Small asset gains lifted AUM to US$0.8 billion.
• Other: Net inflow of US$0.1 billion; AUM at US$0.3 billion.
• Absolute Return (FX Alpha, Custom Opportunities, Other combined): Net inflows of US$0.4 billion plus modest asset/FX gains took AUM to US$2.8 billion.
• EM Local Debt: Flat at US$1.0 billion.
• Infrastructure: Now US$0.1 billion following the first €100 million deployment from the Infrastructure Equity fund.
• Private Markets (EM Local Debt and Infrastructure combined): Up to US$1.1 billion.

The headline is that Risk Management benefited from markets rather than flows, while Absolute Return strategies enjoyed a welcome return of client demand. SAM’s continued inflows stand out and support the CEO’s comment on momentum with asset managers.

Performance fees and fee rates: implications for revenue

Record earned £0.5 million of performance fees in the quarter (Q2 FY25: nil), bringing the first-half tally to £0.8 million. Performance fees are variable by nature, so this is a helpful contribution rather than a driver of the story.

Crucially, Record says average fee rates were broadly unchanged from the previous quarter. With AUM higher and fee rates steady, the starting point for management fee revenue into the second half looks supportive. The mix did move – net outflows in Passive Hedging and inflows into SAM and FX Alpha – but not enough to shift the overall fee rate.

Infrastructure Equity fund: first €100 million deployed

Record confirmed its first deployment of €100 million from its Infrastructure Equity fund. While the Infrastructure AUM figure is still modest at US$0.1 billion, the initial capital deployment is an operational milestone. It also diversifies the business beyond currency risk management and absolute return FX into private markets, where fees are often longer dated.

My take: positives, watch-outs, and what could move the shares

What looks positive

• Record-high AUM at US$110.3 billion, with asset gains doing the heavy lifting.
• SAM net inflows of US$1.1 billion reinforce client demand for solutions-based hedging.
• FX Alpha back to net inflows (US$0.3 billion) after a tougher spell – a sentiment boost.
• Performance fees back in the mix (£0.5 million in Q2) and fee rates stable quarter-on-quarter.
• First Infrastructure Equity deployment signals execution progress in private markets.

What to watch

• Risk Management net flows were negative overall (-US$0.4 billion) as clients rebalanced. If this persists, growth will rely more on market tailwinds.
• Absolute Return AUM is still a small slice of the group, so sustained inflows will be key to make it more meaningful.
• Infrastructure is at an early stage. Deployment pace and client commitments will determine how quickly it scales.

Overall, this is a solid, confidence-building update. The mix of higher AUM, resilient fee rates, improving flows in FX Alpha, and a tangible step forward in Infrastructure positions Record well for its interim results.

Key numbers from Record’s Q2 FY26

Product-level net flows: who won and who lost in Q2

• Solutions for Asset Managers: +US$1.1 billion
• FX Alpha: +US$0.3 billion
• Other: +US$0.1 billion
• Infrastructure: +US$0.1 billion
• Private Markets (overall): +US$0.1 billion
• Passive Hedging: -US$1.4 billion
• Dynamic Hedging: -US$0.1 billion

In short, SAM and FX Alpha led the inflow side, while clients trimmed exposures in Passive and Dynamic Hedging as part of rebalancing.

What to watch next

Record will release interim results next month. Key things I’ll look for: revenue progression versus the AUM uplift, any colour on client pipeline for SAM and FX Alpha, detail on the Infrastructure Equity deployment pipeline, and whether performance fees continue into the second half. For now, the direction of travel looks encouraging.