Interim profits are lower than in the prior-year period but stronger than the market may have inferred from the previously announced equivalent of assets under management (AUM). Revenue is lower, as expected, due to a lower product revenue mix on higher average funds. But cost control has been better than expected and appears sustainable, leading to full-year earnings upgrades. It is positive that AUM equivalent is again growing but for now this is focused on lower fee margin passive hedging products. Over the past 18 months Record has invested in sales and marketing and in broadening its higher margin product set. With successful translation of these efforts into further fund growth, especially in higher margin products, the potential operational gearing in the business model should become apparent.