Record Regulatory News (REC)

RECORD PLC

FIRST QUARTER TRADING UPDATE

Record plc ("Record" or the "Company"), the specialist currency manager, announces today that as at 30th June 2014 the Group's assets under management equivalents ("AUME") totalled $54.1 billion (31st March 2014: $51.9 billion).

AUME expressed in Sterling as at 30th June 2014 totalled £31.6 billion (31st March 2014: £31.1 billion).

1. AUME composition

Record saw a small increase in AUME during the period between 31st March 2014 and 30th June 2014. The composition of AUME by product was as follows:

Note 1: This includes $0.8 billion of Emerging Market strategies (31st March 2014: $0.8 billion).

2. AUME Movement

Net client AUME flows in the three months to 30th June 2014 by product were as follows:

Net client AUME flows in Dynamic Hedging reflect the termination of a mandate announced on 1st April 2014. The net client inflows in Passive Hedging are attributable principally to new mandates with existing clients.

Record had 48 clients at 30th June 2014 (31st March 2014: 48 clients).

The factors other than client flows which have impacted AUME during the quarter had an aggregate impact of +$1.8 billion, being:

(i) Exchange rate movements: + $0.1bn

Exchange rate movements during the period affect the conversion of non-US Dollar mandate sizes into US Dollar AUME.

(ii) Movements in global stock and other markets: +$1.7bn Substantially all the Passive and Dynamic Hedging, and some of the Currency for Return mandates, are linked to stock and other market levels. Consequently AUME is affected by movements in these markets.

Our Dynamic Hedging programmes performed as expected for US clients during the quarter. The US Dollar weakened against a basket of exposure currencies, and as a result the returns of the hedging programmes were negative. Losses came from hedges on the Euro, which range traded against the US Dollar generating risk-management costs, and on the Japanese Yen, Canadian Dollar and Australian Dollar which strengthened against the US Dollar. The systematic lowering of hedge ratios in these latter currencies helped to limit the losses.

For UK-based Dynamic Hedging clients the programmes also performed as expected delivering positive returns as Sterling strengthened against a basket of hedged currencies over the quarter. The programmes participated in Sterling gains during April and June, while costs associated with adjusting hedge ratios affected performance in May when Sterling weakened marginally. The main contributors to the positive performance were the US Dollar and Euro.

Investment performance in Record's established Active Forward Rate Bias (FRB) product was positive during the quarter ending 30th June 2014 and for an ungeared portfolio equated to a return of +0.07% over the quarter (3 months to 31st March 2014: return of -0.66%). This compares to a +0.50% return in the quarter for the FTSE Currency FRB10 index (excess return in Sterling). This variance is the result of differences in the allocations of these two strategies to some of the stronger-performing currencies in the quarter. The FTSE FRB10 Index Fund continues to track the index closely, on a 1.8x-geared basis.

Investment performance in Record's Emerging Market product was positive during the quarter ending 30th June 2014 and for an un-geared portfolio equated to a return of +1.11% over the quarter (3 months to 31st March 2014: return of +0.35%). Annualised performance since inception (30th November 2009) for an un-geared portfolio is +2.00% p.a.

Investment performance in Record's Multi-Strategy product was positive during the quarter ending 30th June 2014 and for an un-geared portfolio equated to a return of +0.58% over the quarter (3 months to 31st March 2014: return of -0.36%). Annualised performance since inception (31st July 2012) for an un-geared portfolio is +2.29% p.a.

3. AVERAGE FEE RATES

During the quarter to 30th June 2014, fee rates for all products remained broadly unchanged from the previous quarter.

4. CHIEF EXECUTIVE'S COMMENT

Chief Executive James Wood-Collins, commenting on business development, said "Growth in our Passive Hedging AUME has continued since the start of the financial year through net inflows of $0.9 billion, principally into new mandates for existing clients, and we continued to see further modest inflows into the FTSE FRB10 Index Fund. As already announced, we also saw the termination of a Dynamic Hedging mandate at the start of the quarter.

"It remains the case that many US investors have greater exposure now to foreign currencies than has historically been the case and, whilst interest in currency hedging observed since last summer has abated somewhat in the absence of pronounced US Dollar appreciation, this interest could return quickly. We've also seen the re-emergence of interest in Currency for Return strategies, and we hope to build further on the recent flows into the FTSE FRB10 Index Fund.

"Our currency management strategies continue to be of interest to potential clients and consultants in North America, Switzerland and the UK. Furthermore, our diversified product range and ability to provide flexible, bespoke solutions means we are well-placed to help investors with their varied currency requirements. Whilst procurement processes are typically competitive, and their timing uncertain, we are hopeful that further progress will be made in the current financial year."

Record will announce its second quarter trading update on 17th October 2014.

For further information, please contact:

Record plc Tel: +44 (0) 1753 852 222

James Wood-Collins, Chief Executive Officer

Steve Cullen, Chief Finance Officer

MHP Tel: +44 (0) 20 3128 8100

Nick Denton record@mhpc.com

Vicky Watkins

James Moncrieff

Notes to Editors

Record plc

Record is a specialist currency manager and provider of currency hedging services for institutional clients. Founded in 1983, Record has established a market leading position as a currency manager. Specifically, the Group has a leading position in managing Dynamic Hedging and Currency for Return for institutional clients.

The Group has three principal product lines:

- Dynamic Hedging, where Record seeks to eliminate the impact of currency movements on elements of clients' investment portfolios that are denominated in foreign currencies when these movements are expected to result in an economic loss to the client, but not to do so when they are expected to result in an economic gain;

- Passive Hedging, where Record seeks to eliminate fully or partially the economic impact of currency movements on elements of clients' investment portfolios that are denominated in foreign currencies; and

- Currency for Return, in which Record enters into currency contracts for clients with the objective of generating positive returns.

Record (LSE: REC) was admitted to trading on the London Stock Exchange on 3rd December 2007.

This announcement includes information with respect to Record's financial condition, its results of operations and business, strategy, plans and objectives. All statements in this document, other than statements of historical fact, including words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "may", "will", "continue", "project" and similar expressions, are forward-looking statements.

These forward-looking statements are not guarantees of the Company's future performance and are subject to risks, uncertainties and assumptions that could cause the actual future results, performance or achievements of the Company to differ materially from those expressed in or implied by such forward-looking statements.

The forward-looking statements contained in this document are based on numerous assumptions regarding Record's present and future business and strategy and speak only as at the date of this announcement.

The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement whether as a result of new information, future events or otherwise.