Risk management is becoming a defining factor in how asset managers protect returns and maintain control over increasingly complex portfolios. The model presented by Record centres on embedding risk oversight directly into the investment process, with a particular focus on currency and macro exposures that can materially influence outcomes.
The core proposition is straightforward. Asset managers retain control of their investment strategy while outsourcing specific risk management functions to a specialist provider. This allows firms to address exposures such as foreign exchange risk with greater precision, without diverting internal resources or altering portfolio construction. The result is a clearer separation between alpha generation and risk mitigation, which can improve consistency of returns.
Risk solutions are structured around each mandate, ensuring that hedging strategies align with benchmark requirements, client objectives and investment time horizons. This reduces the likelihood of unintended exposures and supports more predictable performance.
By using established infrastructure and specialist expertise, asset managers can implement and manage hedging programmes without building in-house capabilities. This can lower operational burden and support scalability, particularly for firms expanding into new asset classes or geographic markets where currency risk becomes more prominent.
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.
