Foreign exchange is becoming a bigger issue for private capital managers as funds invest and operate across more markets and currencies. FX costs, liquidity requirements and operational complexity can all affect fund outcomes. Yet many managers still rely on arrangements that offer limited pricing transparency and involve manual processes across execution, settlement and reporting.
Record’s Fund Solutions business is designed to address those gaps.
The company acts as an adviser and agent, rather than trading against clients as principal. Its model is built around transparent pricing, institutional counterparty access and outsourced FX infrastructure. Fees are agreed in advance and Record provides transaction cost analysis on every trade. This gives managers clearer visibility over what they are paying and how their FX execution is being handled.
The platform also provides access to more than 25 global Tier 1 counterparties through Record’s agency ISDAs. This allows funds to trade with major banks without having to establish and manage the same range of direct relationships themselves.
Liquidity is another key part of the proposition. Record has experience establishing uncollateralised and unmargined trading lines for clients. Where these arrangements are available, they can reduce the amount of cash tied up in collateral or margin and leave more liquidity available elsewhere in the fund structure.
Record also handles execution, settlement, regulatory reporting and performance reporting through its existing infrastructure. This can reduce the operational burden on fund managers and limit the reliance on manual processes.
The advisory side of the business draws on more than 40 years of experience managing FX mandates for institutional clients. Record says it now supports more than 100 private capital funds and executed approximately $1 trillion of FX trades for clients last year.
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.
