Record Plc (LON:REC) has reported another record level of assets under management equivalent (AUME), supported by significant new client mandates and improving momentum across its higher-margin investment strategies.
The latest research note from Panmure Liberum, dated 22 October 2026, highlights the strength of the company’s recent performance, with assets reaching $130.3 billion and net inflows delivering their strongest quarterly result in more than four years.
Lead research analyst Abid Hussain maintains a Buy recommendation and 120p target price, compared with the 43.5p share price recorded at the close on 21 October 2026.
Record Assets Reach $130.3 Billion
Record’s assets under management equivalent increased by 7% during the quarter ended 30 September 2026, reaching a new high of $130.3 billion.
This was comfortably ahead of Panmure Liberum’s forecast of $122.8 billion, with particularly strong demand for the company’s Absolute Return strategies.
Importantly, the growth was driven primarily by new client inflows rather than movements in financial markets.
Key operational highlights include:
- Assets under management equivalent: $130.3 billion, up 7% during the quarter.
- Quarterly net inflows: $10.4 billion, significantly ahead of the broker’s $0.4 billion estimate.
- Absolute Return inflows: $9.8 billion, taking assets in the division to $14.6 billion.
- Private Markets inflows: $0.9 billion, increasing divisional assets to $19.8 billion.
- Risk Management: Modest net outflows of $0.3 billion.
- Consecutive positive quarters: Five quarters of positive net flows.
- Performance fees: £2.2 million crystallised in the first half of FY2027, compared with £0.8 million a year earlier.
These figures represent an encouraging period for Record as it continues developing higher-margin products alongside its established currency hedging operations.
Absolute Return Strategies Drive Growth
One of the most significant developments highlighted by Panmure Liberum is the strong demand for Record’s Absolute Return strategies.
The division attracted $9.8 billion of new mandates during the quarter, more than tripling its assets under management equivalent from $4.4 billion to $14.6 billion.
This is particularly important because Absolute Return represents one of Record’s higher-margin revenue areas.
The company has been gradually moving towards a business model that combines its established currency management expertise with investment strategies and services offering stronger revenue margins.
The latest mandate wins provide evidence that this strategy is gaining traction.
Record’s Private Markets business also contributed positively, attracting another $0.9 billion of net inflows.
Panmure Liberum Sees Momentum Building
In the latest research note, lead analyst Abid Hussain and his colleagues highlight the disconnect they see between Record’s improving business momentum and its share price valuation.
The analysts write:
“There is considerably more momentum in the business than the share price is discounting.”
This assessment reflects the broker’s view that the recent mandate wins could contribute more significantly to earnings in future financial years.
Panmure Liberum has adopted a cautious approach to forecasting the immediate contribution from these mandates, particularly while awaiting further information about fee rates and the timing of funding.
Nevertheless, the broker has increased its earnings forecasts to reflect the company’s improving prospects.
Earnings Forecasts Revised Higher
Following the latest trading performance, Panmure Liberum has increased its FY2027 estimated earnings per share by 9% to 4.4p.
The larger revisions come in the following two financial years, when the new mandates are expected to contribute over a full year.
The broker has increased its FY2028 earnings estimates by 15% and FY2029 estimates by 18%.
Selected revised financial forecasts include:
- FY2027 estimated revenue: £44.8 million.
- FY2028 estimated revenue: £51.0 million.
- FY2029 estimated revenue: £53.3 million.
- FY2027 adjusted earnings per share: 4.4p.
- FY2028 adjusted earnings per share: 5.6p.
- FY2029 adjusted earnings per share: 6.1p.
- FY2027 forecast dividend: 3.2p per share.
- FY2028 forecast dividend: 4.1p per share.
The forecasts suggest that Record could benefit from meaningful earnings growth as its higher-margin activities expand.
However, the eventual contribution will depend partly on the fees agreed with clients and the timing of revenue recognition.
Dividend Potential Remains Attractive
Record’s dividend outlook is another element of Panmure Liberum’s positive investment assessment.
On the broker’s revised estimates, the shares were trading at approximately 9.9 times FY2027 forecast earnings, falling to 7.7 times FY2028 earnings.
The research note also highlights an estimated dividend yield of 7.3%, potentially increasing to more than 9% in the following year.
These valuations are considered attractive by Panmure Liberum in the context of Record’s improving fund flows and growing higher-margin business.
Nevertheless, dividends remain subject to financial performance and company decisions, while the forecast yields are based on the share price and assumptions used in the October research.
Looking Ahead to Record’s Interim Results
Record’s interim results, scheduled for 6 November 2026 according to the research note, are expected to provide further insight into the recent mandate wins.
Investors will be particularly interested in the pricing arrangements for the new Absolute Return mandates and how quickly they begin contributing to revenue.
Panmure Liberum also notes that performance fees have started the financial year strongly, with £2.2 million already crystallised during the first half.
Despite this, the broker has maintained its full-year performance fee forecast at £3 million, reflecting its cautious approach.
With substantial new mandates secured and a growing proportion of assets allocated to higher-margin strategies, the company enters the next stage of its financial year with improved commercial momentum.
Final Thoughts
Record’s latest quarterly performance represents an important development in its strategy to expand higher-margin investment services.
The substantial $10.4 billion of net inflows, record assets of $130.3 billion and stronger performance fee generation provide encouraging evidence of progress.
While uncertainty remains around mandate pricing and the exact timing of future revenue, Panmure Liberum believes the company’s longer-term earnings outlook has improved.
The broker’s Buy recommendation and 120p target price reflect its confidence in Record’s prospects following the latest trading update.
For investors following the asset and wealth management sector, Record’s ability to convert its growing asset base into sustainable earnings and dividend growth will be an important development to monitor.
