Record’s underlying PBT increased 21% in H1 due to growth in AUME and operational leverage. Although the recently announced reduction in average fees on existing business will reduce the revenue run rate, Record has done this to position itself for future expected growth; it is hopeful that new client wins will more than compensate. New business enquiries are at their highest level since 2008. Record has announced it is in advanced discussions relating to a ‘handful’ of new hedging mandates ranging in size from $1-10bn. Our fair value of the existing business is 33p. This increases to 49p if we assume $2bn pa of new dynamic hedging mandates.