Earnings Call: H2 2026

Jun 23, 2026

Summary

FY26 revenue fell 4% and EPS was 3.92p, while AUM rose 14% to $114.6bn. Private markets expanded, and management expects FY27 revenue growth, supported by new mandates and continued fund deployment.

Good morning, and welcome to the Record PLC investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll. I would now like to hand you over to Dr. Jan Hendrik Witte, CEO. Good morning, Jan. Thank you, Lily. Thank you. Good morning, everyone. I am Jan Hendrik Witte, CEO of Record Financial Group, and I am pleased to be presenting the group's results for the year ended 31st of March 2026. I am joined by two colleagues, Sam Dunn, our Interim Chief Financial Officer, and Dr. Othman Boukrami, the CEO of our group subsidiary, Record Currency Management Limited. The 2026 financial year was a year of continued evolution for Record. Against the backdrop of volatile currency markets and macroeconomic uncertainty, we delivered a stable result and stayed focused on executing our strategy, purposefully positioning the business for sustainable long-term growth. As the business evolves, it is worth revisiting who Record is and what we do for our clients. We are a specialist asset manager delivering best-in-class solutions for large institutional investors. We manage an AUM of $114.6 billion for our global client base, and we have developed a reputation for exceptional client focus and trusted operational execution over the last 40 years. We have built deep knowledge, technical expertise, and a broad set of capabilities in derivative foreign exchange and structuring complex solutions. These characteristics not only allow us to set ourselves apart in our core risk management business, but are readily transferable to other situations and asset classes, particularly in private markets. This allows us to pursue a broader range of opportunities for both existing and new clients, targeting long-term recurring revenues at higher margins. I will start with some financial and operational highlights before handing over to Sam, who will take you through the financials in more detail. Total revenue was down 4% for the year, in line with expectations, driven mainly by the 5% decline in management fees. This decrease reflects the full impact following a mandate write-down at the end of the last financial year and has been partly offset by new client growth. Disciplined cost management continues to be an area of focus, ending the year with operation costs down 2% while continuing to fund key investments across the business. AUM grew 14% to $114.6 billion, driven by consecutive quarters of inflows and coupled with favorable FX movements. Largely in line with expectations, EPS has decreased to 3.92 pence per share. As a result, the total ordinary dividend for the year was 3.6 pence per share, with the dividend payout ratio maintained at 92% of EPS. The 2026 financial year has seen meaningful operational progress. It was a year focused on transitioning to growth as we continued to execute against our vision for long-term value, guided by our strategic pillars: organic growth, improving quality of earnings, and operational excellence. Notably, we completed the first deployment for the Record Infrastructure Equity Fund. We also secured the next two deployment targets, which are set to be deployed in the coming months. Once completed, this will bring total deployment up to 35% of the total $1.2 billion initial commitment, and the fund remains on track to be fully deployed within three years of launch. In addition to the fee growth, it also improves quality of earnings as the fund has a 15-year lock-up period. Solutions for Asset Managers has grown strongly, with AUM up 19% and fees up 39%. This is a very exciting growth area where we apply our risk management capabilities to solve problems for asset managers, generating a new source of revenue and diversifying and broadening the clients across the business. As the product has evolved, these clients have increasingly been alternative asset managers with funds invested in private credit and private equity. For that reason, this Solutions for Asset Managers have evolved from our risk management product category into the private markets category. We have also made some impressive advances in automation and AI integration this year, driven by the expertise and commitment of our talented in-house teams. In line with operational excellence, we have strengthened our senior executive leadership team with the appointment of Dr. Othman Boukrami as CEO of our group subsidiary, Record Currency Management, and Andreas Dänzer as Group Chief Investment Officer. Overall, as a group, we are pleased with the operational performance in the period. To discuss the financial performance for the year, let me introduce you to our interim CFO, Sam Dunn. Sam joined Record in February 2026 and brings a strong track record of financial leadership across asset management, private markets, and regulated investment businesses, reinforcing continuity and discipline at this transitional stage for the group. Sam, over to you. Thanks, Jan, and good morning, everyone. I am pleased to be presenting our financial performance for the 2026 financial year. Despite the challenging and evolving market backdrop, the group has maintained operational consistency while continuing to invest selectively in key areas that support its strategic objectives. I will begin with the earnings summary, highlighting a few of the key movements in the year. Revenue was down 4%, remaining in line with expectations. This was due to a combination of lower management fees and lower performance fees. Despite this, we protected operating margin from most of the impact through stringent, disciplined cost management, reducing costs by 2% while continuing to hire and invest in staff and technology. Profit before tax saw a 10% decrease, driven by the decrease in revenues and coupled with increased finance costs. The larger decrease in profit after tax is a reflection of the tax rate returning to a more normalized level in FY 2026, following the recognition of a deferred tax asset in the prior period, which lowered the tax rate last year. As a result, profit after tax was down 23%. After adding back the minority share of losses of Record Asset Management, profits attributable to Record shareholders fell to GBP 7.7 million, and earnings per share of 3.92 pence. The group earns revenue across our three product pillars: risk management, Absolute Return, and private markets. This is through a combination of management fees, performance fees, and other services income. Total revenue was down slightly in a challenging market, with strong performance in private markets partially offsetting lower management fees in risk management and Absolute Return. Both risk management and Absolute Return management fees were down, now reflecting the full impact of changes in the composition of some client mandates at the end of FY 2025. Growth in private markets was driven by Solutions for Asset Managers, which saw an increase in management fees of 39%. As Jan noted in his operational highlights, as Solutions for Asset Managers have grown and evolved, the clients we serve have increasingly been alternative asset managers with funds invested in private credit and private equity. Because of this, we have reallocated Solutions for Asset Managers from risk management to private markets, and all prior periods in this presentation are restated accordingly. We have included a reconciliation on slide 25 in the appendix to illustrate this. As a whole, management fees continue to be a highly repeatable revenue source and make up 88% of our total revenue. Performance fees of GBP 2.8 million are once again an important component of total revenue. Performance fees were recognized for mandates under both the risk management and Absolute Return pillars. Other income represents a combination of distribution, introducer, and deployment fees and will continue to scale with growth in private markets. We flagged the uneven revenue recognition in the early stages of raising and deploying funds. However, we expect other income to partially offset the usual J-curve impact on earnings as funds are deployed. Looking at how all this is reflected in AUM, we see that risk management AUM showed strong growth. Passive hedging brought in a combination of net inflows and favorable net exchange rate movements, while dynamic hedging AUM was driven by growth in the value of underlying assets. In Absolute Return, the net outflows were as a result of client mandate recomposition, slightly offset by favorable FX movements. In private markets, Solutions for Asset Managers was the main driver of growth as it continues to see strong inflows with AUM up 19% for the year. A further increase in private markets AUM was as a result of the first capital deployment for the Record Infrastructure Equity Funds during the period. While small relative to group AUM, it commands a higher management fee yield and will be a material contributor to revenue once the fund is fully deployed over the next two years. We remain encouraged by the potential in private markets. On to operating costs, which were down 2% in FY 2026. This represents the consistent progress in the restructuring of our cost base and aligning investment to our strategic priorities. Growth in the business saw headcount increase by 4%, reflecting our deliberate investment in private markets capabilities ahead of the revenues those funds will generate. Despite this, overall staff costs fell, reflecting lower variable compensation in line with operating performance. We also continue to see some cost capitalization as our in-house development team progresses with our operational infrastructure improvements and automation. Thanks to this internal IT development, we continue to see savings elsewhere, with technology costs down by 8%. The decrease in occupancy costs reflects the move to Paddington and the cessation of the dual running costs incurred last year. Although we are incurring higher depreciation relating to the new London office and an increase in amortization of the internally developed software that is now in use by the business. Finally, onto our balance sheet and capital review. We continue to be a high cash generative business, maintaining a strong balance sheet with a regulatory capital surplus. This surplus supports both our dividends and ongoing investment for future sustainable growth of the business. As mentioned in the interim results announcement, company performance relative to market expectations is highly dependent on the timing of closing the various projects. As a result of that, and following the uncovered interim dividend of 2.15 pence per share, the final dividend declared for the FY 2026 financial year is 1.45 pence per share, bringing total ordinary dividends for the period to 3.6 pence per share. While the total ordinary dividend for the year has decreased in line with EPS, the dividend payout ratio has been maintained at 92% of EPS. Record remains committed to an attractive and sustainable dividend, recognizing its importance to our shareholders. At the same time, we are focused on ensuring an appropriate balance between capital allocation to support future growth, maintaining a resilient balance sheet, and ensuring liquidity and flexibility. As we progress through key milestones in our asset management business, the board will therefore be monitoring the dividend policy to ensure it continues to strike the right balance. With that, I will hand it back to Jan to discuss the group's strategy and divisional achievements in FY 2026. Thank you, Sam. We are now entering the third year of execution under our three strategic pillars. A commitment to operational excellence, organic growth driven by client needs, and improving our quality of earnings. These pillars reflect our vision for the growth of the business and form the framework of our strategy. Operational excellence is foundational for us. It is critical to how we serve clients, and superior client outcomes are our utmost priority because they underpin the entire evolution of the group. It is this operational excellence that gives Record the right to grow, both with new and with existing clients, and in new and existing markets. As we expand our product offering through organic growth, it has reinforced our expertise, our knowledge base, and our close client relationships. It is this that has allowed us to move more aggressively into private markets with focus on Solutions for Asset Managers, infrastructure equity, EM and frontier strategies, and further expansion into the private equity and private credit space. Finally, this organic growth improves our quality of earnings by diversifying revenue by client and by asset class. Intentional growth in private markets will expand fee margins and improve revenue visibility through longer lockup periods and more predictable fee profiles. This, in turn, grows earnings, which then enables us to invest further in advancing our capabilities. As you can see, these three strategic pillars are not individual and discrete objectives, but each enable the others, and ultimately the central overarching plan for Record over the medium to long term. Over four decades, we have formed a unique set of capabilities that forms Record's DNA and define what we do, which is to deliver best-in-class solutions to complex problems for large institutional investors. We think about operational excellence in terms of building, maintaining, and improving our core capabilities. These capabilities are central to how Record serves clients, and we are constantly maintaining, improving, and adapting the strength and experience developed over 40 years in business. We do this through investment in people, technology, governance, and systems. Our capabilities are our key differentiator and enable us to serve and build trust with our clients. While the exact solution tends to differ for every investor, every asset class, and every fund, they share common challenges that Record has extensive expertise in solving. Those core capabilities are expertise in derivatives, liquidity and cash flow management, and delivering a fully integrated end-to-end service. Which means not just designing a solution or its implementation, but full execution, governance, reporting, and collateral management. This then is supported by our strong structuring capabilities and long-standing trusted relationships with a strong reputation for solving complex problems. These skills were developed in risk management, which contributes 66% of our revenue base. But we are now using these core capabilities to solve a much wider range of problems for our clients. As we have evolved, clients have engaged us to expand into Absolute Return in private markets, applying our expertise to deliver bespoke solutions they could not achieve through conventional products. Leveraging of these capabilities is the future of our growth. We have three complementary product categories: Risk management, Absolute Return, and private markets. We have provided institutional risk management products for over 40 years, and it remains the largest contributor to revenue, providing a stable, highly cash generative base for the rest of the group. As we expand to solve other problems for clients, our growth is coming from Absolute Return and private markets, which together contributed around 35% of revenue in FY26. These newer segments carry higher fee yields, so despite accounting for a smaller proportion of AUM, they generate material revenue against the investments we're making. As they grow, this will become more obvious. They also improve the quality of earnings by serving a more diversified client base and, as is the case for the infrastructure equity funds, long-term visibility of future revenue. I'll now hand over to Othman. After joining the Record PLC board as a non-executive Director, Othman has since moved into an executive role as CEO of our group subsidiary, Record Currency Management. He brings with him decades of experience as a pioneer in emerging and frontier market currencies. Othman will now take you through our Risk Management and Absolute Return divisions. Thanks, Jan, and good morning, everyone. I am Othman Boukrami, and I became Chief Executive Officer of Record Currency Management in the first half of this year. Before that, I served on the Record PLC board, where I came to appreciate the unique position Record Currency Management holds in the industry. Since making the transition, I have gained an even deeper understanding of the quality of the team and the strength of our client relationships. What stands out most is the commitment across our organization to delivering excellence with integrity and consistency. Record is specialist, it is independent, it is full service, and it has a deep pool of experts working to solve problems for clients. Demand for Risk Management continues to rise, with several structural drivers increasing our importance to institutional clients across all their investing, growing FX volumes and rising hedging complexity. The financial year 2026 saw several operational highlights. First, we had positive net flows in three of four quarters into Risk Management, principally driven by Passive Hedging. The average fees rates per product remained broadly stable across the year. After the period ends, I am pleased to say we launched two new Dynamic Hedging mandates. Looking to financial year 2027, I am excited about the opportunity to enhance our position in G10 currency markets and to expand through product innovation and geographic reach. One of the most exciting opportunities is the continued development of our frontier market currency strategies. Prior to joining the group, I spent 16 years managing EM and frontier currencies, and I came to realize that Record is uniquely positioned to source its exposures through our established network of banks and development finance institutions, enabling us to deliver attractive opportunities to private investors. At the same time, we are expanding geographically, and we are launching a new product, Evolution, tailored to the Swiss market, designed for the evolving needs of asset owners in today's rapidly changing global environment. Our frontier market expertise, combined with our broader currency management capabilities and a state-of-the-art operational platform, gives us a significant competitive advantage as we scale these activities further. Absolute Return comprises our FX Alpha and Custom Opportunities products. These products typically have more volatility and shorter term mandates but have bigger upside potential from performance fees. Financial year 2026 performance in this space demonstrate exactly this. Despite the reduction in Absolute Return AUM due to the discontinuation of some mandates that were driven by client-led internal restructurings, we still continue to generate strong performance fees. The outlook for this product remains positive. We are actively engaged in discussions on new mandates reflecting continued demand. The strategy is exceptionally well-positioned for large institutional investors in the current environment of geopolitical uncertainty and pronounced dislocations between market behavior and underlying fundamentals. Demand continues to be led by our expert judgment in the active management of exposures. There are several growth drivers, which you will see here on the slide. In an increasingly volatile environment, investors and pension funds in particular, are under growing pressure to hit specific return targets while carefully managing liquidity. In that context, specialized unfunded return strategies can be highly complementary source of return enhancements alongside traditional funded investments. For Record, they are also a source of performance fees, giving upside beyond the more repeatable management fees that they contribute. For FY 2027, we anticipate both an increase of FX Alpha AUM and revenues due to the institutional demand. Thank you, Othman. Moving on to our third product pillar, private markets. This slide intends to shed some light on how private markets opportunities go from an idea to deployment at Record. Our move into private markets was purposeful. It has been a considered step, shaped by client demand, and enabled by the skills and capabilities within the group built up over many, many years. The funds and strategies we are building have not developed in isolation. They have been built in close collaboration with clients, tailored to the specific mandates, risk tolerances, and governance requirements. This normally begins with a client identifying a problem and engaging with Record to help because of the strength of our relationships and our reputation as a problem solver. We listen, we understand, and we then apply our expertise across the core capabilities I described earlier, and we design products around that problem. Thereafter, we secure an anchor commitment from that original client before we launch. So by the time we launch, we already have meaningful committed capital and strong medium-term revenue and earnings visibility as the funds are deployed. When we believe the product has broad application, we design the inclusion and governance framework from day one to accommodate subsequent institutional allocators. Critically, our private markets work is bespoke, it is complex structuring and not simpler products. This is how we differentiate relative to peers and generalist alternative asset managers. Our private market strategies involve a combination of longer lock-up periods, higher margins, more predictable fee profiles, even a combination of the three, thereby improving earnings visibility over time. These solutions continue to make good momentum and now contribute 28% of our revenue base. This momentum is most evident in our infrastructure equity strategy, which I am pleased to say, following the completion of the first deployment, we have since had additional inflows and the number of clients has now grown from four cornerstone investors on day one to eight, validating the scalable design. Additionally, we have the next two deployments lined up and due for execution in the first half of FY 2027. Our Record EM Sustainable Finance Fund continues to demonstrate strong and consistent performance, and we are excited about having Othman on board, who will be leading the pursuit of identifying additional growth opportunities in the EM and frontier space for us to capitalize on. With that in mind, we are now broadening our reach across geographies and clients in these new asset classes. We are working with our partners based in Hong Kong to support the distribution and delivery of private equity and credit products across Asia. The local team will focus on institutional investors and family offices in the region. We continue to make encouraging progress with Sharia compliant mandates. Our focus is on private markets opportunities structured in line to establish Sharia principles, combining institutional investment discipline with a robust ethical framework. We are also in conversation with a Swiss asset manager about a partnership through which we will obtain a Swiss FINMA license, strengthening our regulatory standing and operational capabilities, and expand our real estate offering in Switzerland. We will communicate further details in due course. Lastly, our strategy that saw the highest growth levels during the period is Solutions for Asset Managers. Othman will walk us through this strategy and its unique capabilities. As I mentioned at the outset, Solutions for Asset Managers has been reallocated from Risk Management to private markets. This reflects the nature of the underlying funds that Record builds solution for. Solutions for Asset Managers offers alternative asset managers a full service derivative, liquidity, and FX solution, tailored specifically to the individual asset manager's strategy and structure of their underlying investment. This unique solution deserves to be elevated on its own. It is a material part of AUM, a significant contributor to fees, and growing at an impressive rate. It uses Record expert capabilities to find bespoke solutions to the same structuring and flow mismatch problems which we solve for all our clients. Critically, that growth is supported by structural demand for private market assets and is linked to the AUM flows of our clients. This is being shown by the impressive growth in both AUM and revenue. Of the total growth, this has been predominantly driven by our existing clients with AUM up 14% and revenues up 26% derived entirely from existing clients. This highlights the importance of this strategy since AUM and revenues tend to increase exponentially over time from existing relationships. Alongside our existing client base, we secured new clients who we expect to contribute to additional AUM and revenue growth in the period ahead. Looking to FY 2027, we anticipate the consolidation of our market position, underpinned by increased revenues from existing clients and the addition of new names to our clients' roster. Record is a business in purposeful evolution. We are excited for the future. Our core is unchanged. We deliver best-in-class solutions to large institutional investors. What is changing is the breadth of problems we solve and the quality of the earnings that follow. Risk Management gives us a stable cash generative base. Absolute Return and private markets give us higher yielding, longer duration growth. As mentioned in previous results announcements, our approach to capital allocation has always been focused on balance, recognizing the importance of dividends to our shareholders. The board will be monitoring the dividend policy to ensure that it continues to strike the right balance between dividends, capital allocation, balance sheet strength, and liquidity. We have started the new year with strong momentum. We have some new mandates near completion, which we expect to add an additional GBP 4 million in annualized revenue to the group, setting us up well to meet market expectation for FY 2070. Given that we still have more than 9 months for the team to conclude other projects and add further revenues, this makes a good start to the year, and we will give further updates in due course. While we are looking to grow all parts of the business, in the short to medium term, we target towards an equal revenue split between risk management on the one hand and Absolute Return and private markets on the other. With our three pillars guiding us, a strengthened leadership team, growing visibility over the medium term, we are confident in the direction of travel. Thank you for listening. Sam Dunn and I are now happy to answer the questions that have come in through the chat. Thank you very much. That is great. Thank you very much for your presentation. If I may just bring back up your camera. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A pod situated on the top right-hand corner of the screen. Just while the company takes a few moments to review those questions committed today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via your investor dashboard. As you can see, we have received a number of questions throughout today's presentation. Please feel free to read out the questions and give responses where appropriate to do so, and I will pick up from you at the end. Very good. Let us take them from the top. If you scroll up, I will just take them one by one. I will just go through the questions one by one and try to answer all of the questions in the time we have got here. The first question from Xander is, what is genuinely new in your thinking, strategy or opportunity set today compared with a prior cycle that would justify a change in that perception? What is genuinely new is we have been consistent in the execution of strategy. The strategy which we presented, which now is quite clearly articulated in the materials on the website and our presentation, was one where a number of years ago we looked at the business identifying or trying to identify what was truly unique or what really made the USP that had made Record successful up to that point, and how we could use that USP going forward to contradict some of the, or counter some of the pressures that we have been experiencing, particularly on the fee side in the risk management business. So what we now clearly identify as our USP is what is a recurring theme through the presentation, is our ability to service large institutional investors in a way where as a business we are large enough to do that We are large enough to, with trading volumes, again, trading volumes highlight our operational capabilities quite nicely. We trade north of $1 trillion a year in the market. We have true institutional scale operational capabilities. At the same time, as a business, we are still small enough to be relatively agile and attuned to what it is that our clients want. The sweet spot really for USP is service large investors in a way that allows us to really play that agility combined with that operational strength to our advantage. That is an area where there is not a lot of other asset managers that compete because a lot of our competition, they are agile, but they are too small to truly be convincing operationally, pass due diligence and onboard mandates that are from day one in the billions, or they are too large, which is of the banks and the really large houses where, of course, they have got the operational capabilities, but they do not have the agility anymore that we can demonstrate to our clients. In terms of what is new today compared to a number of years ago, that strategy has been consistent. We are today now at a point where strategy is starting and has started to deliver. While we report revenues which are more or less flat, the replacement of revenue that has really taken place is noticeable and now at this point really starts to validate strategy. In that sense, the proportion of revenue that is now attributable to higher margin products, higher fee-based products is something that is new, that we did not have a number of years ago. Two, three years ago, all of this was a plan and an intention. Today, we are here and we are truly active in these new areas. We are truly in a position where for some of what we do, we reposition ourselves from the low end of the fee spectrum to the high end of the fee spectrum, which is what we believe will deliver growth as said in the presentation over the coming years. In that context, I will also take one of the other questions, which was on the benefit of being listed. Again, being a listed business in this context is very valuable because it gives further credibility to not just the operational skills that we have to onboard large clients, take on often complex operational structures with large AUM on day one. Also it is very evident that we have got the governance and the structure that comes with a listed business that assures clients firm. In that sense, certainly one of the main benefits of being a listed business is there is some competition friends on what we do, there is strong governance in all areas, and we have got the operational capabilities of a company that trades $115 billion in assets under management and trades more than $1 trillion a year. That is on those two questions. From Peter, "Private markets now account for 28% of revenue. What percentage do management expect in 3 and 5 years' time?" As we said, we expect we will be successful in the medium term, but we expect Absolute Return in private markets, those two pillars, to relatively quickly now reach a point where they contribute half the revenue of the group. That is a meaningful development compared to where we were a number of years ago, where almost the entirety of the business was focused on risk management. Let me just read through. Okay. Here is from Peter. "The company has stated that 35% of the Record Infrastructure Equity Fund's initial commitment has now been pledged. What is the timetable for deploying the remaining 65%?" When we launched the fund in late 2024, the deployment period that we committed to was 3 years. We expect the entire initial commitment of the fund to be deployed in that period of time. So we are on track for that. To answer that question, we expect that the remaining 65% to be deployed then by the end of next year. That deployment does not stop there because as we said, we have now had further inflows and we expect another closing with more inflows later this year. Again, it is hard to overstate the importance of that because we have been talking about the Record Infrastructure Equity Fund for a long time before we launched it, because it did take a while to get it right and get an initial commitment from the first four pension funds that seeded the fund with EUR 1.1 billion. But it was then necessary in marketing the fund to other investors to join the fund for these investors to see that we truly do have the ability to deploy, that we can deploy at speed, but also to highlight, and a lot of that information is in the public domain, but also to highlight the types of assets that we are able to buy. Now that we have started to deploy and publicize some of the investments we have participated in, which are very large and high-profile assets that are otherwise not easily accessible even for large investors, we start to see real traction on the fund. In that sense, that has led to an additional four pension funds investing earlier this year. We expect another four investors later this year, which then by the end of this year should take the AUM to close to EUR 1.5 billion. There's one side again. Does she have one? Yeah. Here, a longer question. I'll quickly read through it. Share price reaction. Broker downgrade suggests investors are questioning whether Record can successfully transition from a currency management business into higher growth private markets manager. What evidence will you provide during FY27 that demonstrates this transition is already generating shareholder value rather than simply consuming capital? What concrete milestones should shareholders expect over the next 6 to 12 months? We have now completed a lot of the transition that we've talked about over the last couple of years. We now do have all of the teams in place that we need to deliver in these new asset classes which we have added to the business. We do have a fixed income team, we do have a credit team now, we do have an infrastructure team, and all of that integration has taken place, but also all of the costs have now been borne. At this point, as I said earlier, we've seen a lot of replacement of existing or traditional revenue from these new asset classes. In a perfect world, we'd already now have had a large increase in revenue and thereby profits. We're not quite at that point, but we do feel like we're at the brink of that point where now the investments have been made, the mandates and the new asset classes have been on-boarded. Making it clear internally and externally that we can do this. Yeah. At this point we haven't been able to demonstrate that increase in revenue. There is a little bit of now skepticism in the market where a lot of the original shareholders would have still know us as a currency manager, which still makes up 66% of what we do, but we have now added material ability to grow from here. It's now a task over the coming months to tell that story. As we said in the presentation, we have started to now add mandates that will lift revenue from where we are today. Those new mandates, they now came in slightly after the year-end. That's not part of what we report now. But we do expect, in that sense, a very positive FY27, which then also will validate in numbers what we've talked about today in terms of strategic evolution. Okay. Something on the CEO report. From Roger. In his report, the CEO said that the core risk management business provided capital-light revenues. Can I infer from this statement that the newer non-core businesses are more capital-intensive, and thus we should brace ourselves for lower dividend payout ratios on a permanent basis? One of the big differences between what we now have classified as private markets work, and we did try to explain that in the presentation, is that this is transferring the skill set. This is transferring what Record has done well historically and continues to do well when we look at derivatives and risk management. Just expanding those skills to be active in asset classes where fees tend to be higher and where fee structures tend to provide more long-term lock-up periods. One of the features that come with that is certainly less regular payments on some of these fees. That's the trade-off that comes with the fees being higher and also the margins being higher. It doesn't quite have the same regularity in fee payments. With regards to our core business being capital light, I don't think that's exactly right. I don't think that's the word I would have used in the CEO report. The core of Record's business still continues to be the trading activity that we conduct and the operational backbone. We have over the years invested in that. We continue to invest in that because at the end of the day, on the trading volumes that we have, which vary between lower single digit billions a day to at times 10, 12 billion in a day, we do take operational risk. Part of the service we offer to clients is we take that operational risk away from the client and transition that to what we do. Having a state-of-the-art operational infrastructure is important and is part of what we do. We are in the position where for the traditional part of the business, because that has been built over many years, we can now evolve in a way that is slightly less capital-intensive in some of the new areas. At the same time, as I said earlier, we have now made a lot of the investments in infrastructure credits and for Solutions for Asset Managers. So we don't expect big costs coming our way from here forward. We do think we're now at a point where we are ready to benefit from the upside. Yeah. Yeah. There were a couple of- Sorry, I'm going to add a bit more detail on the dividend actually. We said in our RNS on Friday morning that we will be monitoring our dividend policy over the next couple of months, but that doesn't necessarily mean that a cut to the payout ratio or the absolute amount is confirmed. We recognize the importance of the dividend to our shareholders. At the same time, we're keen to make sure that we strike the right balance between dividends, capital allocation, balance sheet strength, and liquidity. I think Yann spoke earlier as well about how our asset management business is going to hit some key milestones over the rest of this year. As that happens, we will see the relationship between revenue and EPS change in the business. This is because the revenue from asset management activities is consolidated in the top line, but the share of profits payable to minority shareholders is deducted before we get to EPS at the bottom. I wouldn't necessarily say that we are looking at reducing the payout ratio. It's more we just want to pave the way for a review of the policy and a change going forward as the way in which the business brings in its revenues changes to match. Yeah. There were a couple of questions related to the currency business. One was about the management fees in our risk management, especially the passive mandates that we have. Do we face pressure? Well, the reality is that this is a continued discussion, but the adjustment was already made over the past few years, as we see the AUM going up, especially for passive mandates, and the client retention. This is a continued discussion, but I don't see it as a source of concern going forward. Related to the performance fees, we had two source of performance fees in risk management. One was the Enhanced Passive, the tenor management mandates, and the second one is FX Alpha. Both basically contribute to the performance fees of the group. We see, as Yann mentioned in the earlier communication, we see actually quite a strong pipeline coming our way going forward, especially in Absolute Return strategies, where we are finalizing a number of mandates which will contribute even more to the performance fees going forward. Just to add to that, Othman just commented, we are in addition to deploying the core skill set of the group across a wide range of asset classes. We now do have a very strong focus on emerging and frontier currencies. That is a logical continuation from the success of the EM Local Debt fund that we launched in 2021, which has now come out of the incubation three-year period, where typically investors will watch performance for a period of time. We are now well past that point. The performance is very strong. Once again, the benchmark is convincing and highlights our abilities in that space. We are very excited to have Othman on board with his unique background in particular frontier currencies, where, again, we had a couple of sentences on that in the presentation, but he is one of the world's pioneers in this space. That allows us to now, in addition to what we already have done, to really move with a lot of purpose into that direction. Just to give some context there in terms of what the lack of liquidity, the main question to what are the differences in spreads? I think it is helpful to put that into context. When we are trading G10 currencies, which is developed market currencies, which we do for a lot of our developed market clients, we are looking at fractions of basis points, typically in trading costs, which we help the clients minimize. Of course, there is a relationship between what we can charge for our services relative to the savings we achieve. Helpful, I think, to comment on spreads in frontier markets just in that context. That is a very fair point. If you look at frontier currencies, the bid-ask spread is about 250-300 basis points for non-deliverable forwards and non-deliverable swaps. Which means that if you are a price maker or price taker, makes a huge difference in term of trying to capturing this spread and offering access to this market to private investors, which we have the network, the operational platform, and the technical capabilities, thanks to our five years experience in the EMSF, will allow us to capture a large part of this spread without necessarily deploying much capital. Going forward, given our core skills in the company and our network, we will certainly continue our evolution towards this market since we have gained experience. We have the platform in place, and we will be trying to increase our profitability and the spreads going forward by expanding our product range to more frontier markets. We've got another question here from Xander. What are we trying to do to convince long-term investors of Record's ability to generate sustainable, high-quality growth from here? What evidence should our investors be looking for over the next 12 to 24 months to validate that view? When we started out with the question, what would be Record's strategy for the future? That precedes my time, that builds back all the way to 2020, 2021, when we started to set direction on the strategies we now executed. The concern was always on the timing between existing traditional parts of the business and with the new part of the business, and would we manage to grow in an ideal case in what's almost a straight line up? Would we, in terms of revenues, experience a bit of a wobble, or would we have to go through a more defined J-curve in transitioning or broadening what the group does? With looking at revenue this year compared to revenue the year before, and where revenues were slightly higher before that. The decrease in revenue that we've experienced over the last two, three years is purely down to one or two large active mandates. In one case, it was a client who, their whole pension fund got sold. In the other case, we retained a client, but the client switched from active to passive, and that had an effect on our revenues. But it did highlight as an experience some of the risks in the traditional parts of the business, which are very sticky and long-term relationships, but they do show when these events happen. Where we stand today, the quality of earnings in the group that we have today is materially better than the quality of earnings we had a year ago, as I said before. Because there's been a lot of replacement of larger clients for smaller clients and of short-term contractually assured revenues to longer, contractually assured revenues. In that sense, it hasn't shown in the revenue top line yet. But in reality, a lot of the evidence of strategy now working is there, which is why we've now taken the step to be much more clear in the external materials on the website in how we present the business now in terms of how we see the business evolve over the coming years. What we then expect, to answer the question for FY27, we expect revenue now to increase in FY27. With hindsight, we wouldn't have been able then in evolution or execution of strategy to deliver that ideal straight line up. But we do believe it'll be a very mild J-curve in revenue. FY27 does look very encouraging, as Othman said in the presentation, in that we're now onboarding new clients to launch in 2-3 weeks, which will give us a very strong start to FY27. That doesn't take into account what is a strong pipeline for the year. I think the strategy that we have initiated several years ago is not a strategy anymore, but a reality. If you look at our expansion into the asset management space and the large success that we have had with the $1 billion Record EM Sustainable Finance Fund that we created in 2021 and the Record Infrastructure Equity Fund that we have launched a couple of years ago. These are pure asset management solutions where we have been largely successful in the industry. We have a number of other initiatives that we are carrying, but the positive track record is already being built. It's not a strategy anymore, but more a reality today. One more here from Peter. Lots of questions from Peter. Thank you. I think lots of good questions. Risk management still contributes approximately two-thirds of revenues. How much pricing pressure is the company seeing in its core hedging products? As I said earlier, I'll be quick on the questions. As we do expect over the short to medium term to proceed parity between risk management revenue and Absolute Return private markets revenue. We are on track for that. The pricing pressure on the risk management side has stabilized. There was a lot of industry-wide, that wasn't Record specific. There was a lot of pressure on fees generally in the years 2015 to 2020, which marked a material change for us as a business and for a lot of other businesses in other asset classes. Equities, liquid markets went through the same thing. Which I believe was a combination of technological advancements and also a shift to passive and consultants and the whole industry becoming very fee conscious in certain parts of the industry. At the same time, obviously, the non-listed and private market part of the industry has nonetheless continued to grow. But in terms of our services there, the fees have stabilized. So it hasn't continued to be and have a decreasing experience. But they've stabilized around the current level in 2021, and that has stayed there more or less since then. That's great. Think we are fine. Yeah. Thank you for answering those questions you've had from investors. Of course, the company can review all questions submitted today, and we'll publish those responses on the Investor Meet Company platform. Just before redirecting investors to provide you with their feedback, which is particularly important to the company, Jan, could I please ask you for a few closing comments? Thank you very much. I think we've covered all the things that were important for us to cover. But thanks, everyone, for the questions, and thanks to Othman and Sam for helping me go through the presentation and hopefully address everyone's questions with clarity. Thank you, everyone. That's great. Thank you for updating Thank you. -investors today. Could I please ask investors now to close the session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This will only take a few moments to complete and I'm sure will be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation, and good morning to you all.