Key Highlights

  • Record plc (LSE:REC) is listed on the London Stock Exchange Main Market with a Dividend Yield of 7.53%.
  • The ordinary dividend for the year to 31 March 2026 fell to 3.60p per share from 4.65p.
  • The final dividend of 1.45p, down from 2.50p, was paid on 27 July 2026.
  • An Interim Dividend of 1.00p was declared for H1 FY27, and a new dividend policy will apply for the full year.
  • Assets under management reached a record, rising to $122.0bn by 30 June 2026.
  • Earnings per share fell 22% to 3.92p in FY26.

Overview of Record plc

Record plc (LSE:REC) is a specialist asset manager founded in 1983, best known for currency management for large institutional investors. It has expanded into private markets and other Investment solutions, with offices in London, the USA, Germany and Switzerland.

The 7.53% yield is based on dividends already paid. The key point for investors is that the board has rebased the payout and introduced a new policy.

Latest Results

For the year ended 31 March 2026, Record reported AUM of $114.6bn, up 14%, but Revenue of £40.1m and lower profits as it invested in private markets. Earnings Per Share fell 22% to 3.92p. The board kept the Payout Ratio at 92% of earnings, so the dividend fell in line with earnings to 3.60p.

In its interim results for the six months to 30 September 2026, published on 6 November 2026, Record reported a strong first half with record AUM, inflows across all three product pillars and a return to revenue and earnings growth. Chief executive Jan Witte described margins strengthening while the Business invests for growth.

Dividend Decision and New Policy

The FY26 final dividend of 1.45p, down from 2.50p, took the full-year ordinary dividend to 3.60p from 4.65p. The board had highlighted the need to review the dividend policy to ensure it is sustainable and aligned with growth targets. In November 2026, it declared an interim dividend of 1.00p per share and said the new dividend policy will be implemented for the full year, with more detail on Capital allocation at the full-year results.

Dividend Cover

Under the previous approach, Record paid out around 92% of earnings, leaving little cover. A new policy is likely to retain more earnings to fund growth, which could mean lower dividends but greater sustainability.

Balance Sheet

Record has a solid net asset position and no significant debt. Its capital-light model generates cash, though investment in private markets requires some resources.

Growth Strategy

Record is shifting towards higher-margin, longer-lasting revenue in private markets and specialist solutions. Strong inflows in H1 FY27 suggest the strategy is gaining traction. Albert Soleiman joined the board as chief financial officer on 28 September 2026.

Currency Management Franchise

Record's core currency hedging business serves pension funds and institutions that need to manage foreign exchange risk. This expertise built over four decades gives it durable client relationships, which underpin recurring fee income even as the company diversifies.

Risks

Risks include fee pressure in currency management, performance fee volatility, execution of the private markets strategy and client concentration.

Market Sentiment

Commentators called the FY26 dividend cut sensible but unpopular with income investors. Shares fell to around 44p in mid-2026, boosting the trailing yield.

How REC Fits an Income Portfolio

Record now looks more like a growth-and-income story than a pure high yielder. Income investors should base expectations on the new policy rather than the trailing yield.

Earnings Recovery Potential

The return to revenue and earnings growth in H1 FY27 is encouraging. If AUM growth continues and private markets fees build, earnings could recover, supporting a rising dividend from a lower base.

Dividend Sustainability Scorecard

  • FY26 dividend: 3.60p, down from 4.65p.
  • Current interim: 1.00p under a new policy.
  • Growth: record AUM and earnings recovery in H1 FY27.
  • Balance sheet: solid with no significant debt.
  • Key risk: lower payout under new policy.

What Investors Should Watch

Watch details of the new dividend policy at the FY27 results, AUM trends, private markets fundraising and margins.

Is the 7.53% Yield Sustainable?

The trailing 7.53% yield is unlikely to be repeated in full. The 1.00p interim and new policy point to a lower, more sustainable payout funded by growing earnings. LSE:REC suits investors focused on total return from a recovering asset manager.