Record has reported that assets under management equivalent (AUME) in dollar terms were broadly flat in the quarter to December 2014, with net inflows amounting to just $0.1bn. However, management has announced it expects $2bn of net inflows in the current quarter. We estimate that these will produce a small uplift in profits despite a further shift from higher-margin dynamic mandates to lower-margin passive ones. We do not expect any impact from the Swiss franc currency turmoil as Record uses high-quality bank counterparties for its clients’ business and not retail brokers. Unlike most other asset managers, Record should benefit from increased market (especially currency) volatility, which should increase demand for its hedging services and offer more scope for its currency for return strategies to perform. When allowance is made for the high element of cash in its balance sheet, the shares are modestly rated compared with other asset managers.