Record Currency Management (RCM), the UK currency management arm of London-listed Record Financial Group, has secured two new mandates covering its FX Alpha and FX Frontier strategies, including a new USD 3bn allocation to FX Alpha.
The new FX Alpha mandate increases the assets allocated to the strategy to more than USD 12bn. The allocation has been designed to complement an existing currency risk management mandate with Record, adding further scale to a strategy that has been operating since 2012.
FX Alpha is designed to generate risk-adjusted returns across different market conditions without requiring capital outlay. The strategy is part of Record’s Absolute Return offering and is intended to have limited correlation with traditional asset classes.
The size of the new allocation provides a significant addition to Record’s existing FX Alpha business and increases the scale of its Absolute Return activities. The mandate also demonstrates the potential for the company’s currency management capabilities to generate additional business from existing client relationships.
Record has also won a new FX Frontier mandate, initially valued at USD 80m and expected to grow substantially. The strategy builds on the group’s existing Emerging Markets Sustainable Finance strategy and is focused on supporting sustainable projects in Sub-Saharan Africa.
The two mandates extend Record’s activities across both its Absolute Return and Private Markets operations. The company has previously stated that these two areas are targeted to account for around half of group revenue over the coming years, increasing the contribution from businesses outside its traditional currency management operations.
Record plc (LON:REC) develops bespoke, high-quality, sophisticated solutions for institutional investors, a unique offering stemming from Record’s knowledge and expertise gained from its core currency hedging markets.
