2 IN. DI LETTURA
* Assets under management fall by $1.7 billion
* Clients continue to withdraw assets (Adds details)
LONDON, April 20 (Reuters)- UK currency asset management Record (RECL.L) said on Tuesday outflows continued in its fourth quarter, bringing down assets under management despite positive markets.
In the three months to end-March Record had $34 billion in assets under management equivalent (AuME) compared with $35.7 billion during the previous quarter.
The firm also posted net outflows, of $300 million, in its third quarter results.
Record manages the impact of foreign exchange, not the underlying assets, making assets under management notional rather than real and described as AuME.
It posted net outflows of $1.3 billion and a further $300 million negative performance on pooled funds and $1.1 billion through negative exchange movements but positive markets yielded $1 billion returns.
The company had 93 clients at the end of the quarter, down from 102 at the end of December but it said the board anticipated it will deliver pre-tax profits for the financial year in line with market expectations.
Chairman and CEO Neil Record said that over the quarter the active hedging business, used to manage random currency risk and enhance clients' returns, grew to 35 percent of assets, compared with 13 percent at end-March 2009.
"We continue to see interest in the active hedging product and anticipate seeing further client additions within the next twelve months," Record said. (Reporting by Cecilia Valente, Editing by Alex Chambers)