Record Plc (LON:REC) has started the new financial year with fresh momentum, according to Panmure Liberum, which kept its BUY rating and 120p target price after a quarterly update that showed assets under management rose to $122bn at the end of June.
The broker said net flows of $2.3bn were comfortably ahead of its forecast, marking the fourth consecutive quarter of positive inflows. Markets also helped: asset performance added $5.4bn over the period, well above the broker’s earlier estimate. Together with a stable foreign exchange backdrop, that pushed Record’s end-June AUM above both the previous quarter’s $114.6bn and Panmure Liberum’s own $116.4bn projection.
The strongest contribution again came from Record’s core risk management business, which climbed from $92.8bn to $98.7bn over the quarter. Absolute return assets increased to $4.4bn from $3.7bn, while private markets rose to $18.9bn from $18.1bn. Panmure Liberum said all three reporting segments delivered positive flows, although the firm’s emphasis remained on the combination of steady inflows and the market uplift rather than any single product line.
Within that mix, Passive Hedging and Solutions for Asset Managers continued to do the heavy lifting. Panmure Liberum described Solutions for Asset Managers as a standout, pointing to $2.6bn of flows in FY26 and estimating it accounted for the majority of private markets inflows this quarter. The analyst also highlighted a new mandate win in the FX Alpha division, which it characterised as a higher-margin area within the business.
The update also included signs that Record is still pushing deeper into products beyond its traditional hedging franchise. The Infrastructure Equity Fund saw deployment activity continue into the first quarter of FY27, while undeployed commitments rose to $1.2bn from $1.1bn at the end of March. Panmure Liberum said the fund remains part of an effort to build a business line with a meaningfully higher revenue margin than the core risk management operation.
Another theme in the note was the changing shape of the client base. Management is shifting toward smaller customers that need bespoke offerings, which Panmure Liberum said should support a stickier fee stream over time. The broker also noted that the costs of that repositioning are already reflected in its numbers, meaning the benefits from operating leverage have yet to emerge in headline results.
On the numbers side, Panmure Liberum raised its AUM estimates for FY27 and later years by about 5% after the stronger-than-expected quarter. The uplift to earnings is smaller, at around 2.5%, because some of the improvement is tied to a positive mark-to-market move in the lower-margin Passive Hedging product. Even so, the broker pointed out that about £4m of new mandate revenue flagged at the FY26 results has not yet reached the profit and loss account, leaving room for further contribution if and when it is recognised.
Its valuation work continues to imply a relatively modest multiple for the shares. Panmure Liberum said Record trades on 10.9 times FY27 earnings, easing to 9.0 times in FY28 and 8.5 times in FY29. It said the dividend yield could approach 8% in FY28, assuming a 70% payout ratio. The balance sheet, meanwhile, was described as strong, with £13.0m of cash and cash equivalents and another £3.5m of investments.
The shares were quoted at 43.4p at the close on 22 July 2026, leaving the stock well below the 120p target price. Panmure Liberum’s note does not argue for a rapid rerating, but it does suggest the combination of recurring inflows, a growing range of higher-margin products and a net cash position could support the company’s next phase of development if execution holds up.
About the company
Record Plc provides currency and hedging services, helping institutions manage foreign exchange risk. It also offers solutions for asset managers and invests in selected private market opportunities.
