Currency manager Record assets under management falls

(Reuters) - Currency management company Record Plc said its third-quarter assets under management equivalents (AuME) fell 12 percent from the previous quarter due to loss of its second largest dynamic hedging client in November.

The company said on Tuesday AuME at its dynamic hedging business reduced by $2.0 billion (1.3 billion pounds) after its largest client restructured their programme, while the second largest client client terminated the deal. Total AuME were $25.4 billion at end-December, compared with $28.9 billion at September 30.

Record had earlier said it faced challenges to gain acceptance for its products and reported a fall in its first-half profits.

The company, however, said it saw a number of enquiries for passive hedging in Continental Europe, particularly Switzerland, and for dynamic hedging in the UK.

"Although the quarter has seen an overall decline in AuME, we continue to believe we are well positioned to secure further hedging mandates in the current financial year," Chief Executive James Wood-Collins said in a statement.

The company manages currency fluctuations by either neutralising or profiting from movements in foreign exchange markets, not the underlying assets, which means its assets under management are referred to as "equivalent."

Record shares, which have lost nearly half their value over the last three months, closed at 12.875 pence on Monday on the London Stock Exchange, valuing the company at about 30 million pounds.

(Reporting by Tresa Sherin Morera in Bangalore; Editing by Maju Samuel)