Record Regulatory News (REC)

17 July 2015

RECORD PLCFIRST QUARTER TRADING UPDATE

Record plc ("Record" or the "Company"), the specialist currency manager, announces today that the Group's assets under management equivalents ("AUME") as at 30th June 2015 totalled $56.6 billion (31st March 2015: $55.4 billion).

AUME expressed in Sterling as at 30th June 2015 totalled £36.0 billion (31st March 2015: £37.3 billion).

1. AUME composition

Record saw an increase of 2% in AUME between 31st March 2015 and 30th June 2015 when expressed in US Dollars and a decrease of 4% when expressed in Sterling. The composition of AUME by product was as follows:

2. AUME Movement

Net client AUME flows in the three months to 30th June 2015 by product were as follows:

Record had 53 clients at 30th June 2015 (31st March 2015: 55 clients), excluding a new mandate with six underlying clients signed in the quarter, which we expect to be funded in the current quarter.

The factors other than client flows, which have had an aggregate impact on AUME during the quarter of +$0.6 billion, were as follows:

(i) Exchange rate movements: +$2.1bn 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: -$1.5bn 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.

3. Investment performance

Our Dynamic Hedging programmes performed as expected for US clients during the quarter, controlling hedging losses in response to the US Dollar weakening against the majority of currencies. The largest negative returns came from hedges on the Euro and Pound; however, losses were contained as hedge ratios were reduced over the quarter. There were some partially offsetting gains from hedging the Japanese Yen which weakened against the US Dollar during the period.

For UK-based Dynamic Hedging clients the programmes also performed as expected, generating positive returns as Sterling strengthened against the weighted basket of currencies in the programmes. Gains came from hedging the Japanese Yen and US Dollar, where hedge ratios increased systematically over the quarter in response to appreciating Sterling. Hedging the Euro, where hedge ratios remained high throughout the period, also generated positive returns.

Investment performance in Record's Active Forward Rate Bias (FRB) product was negative during the three months to 30th June 2015, and for an ungeared portfolio equated to a return of -0.46% (three months to 31st March 2015: return of -4.22%). This compares to a -2.61% return in the quarter for the FTSE Currency FRB10 index (excess return in Sterling). This variance was mainly the result of differences in the allocations to the New Zealand Dollar which depreciated significantly during the period. The FTSE FRB10 Index Fund continued to track the index closely, on a 1.8x‑geared basis.

Record's Emerging Market product investment performance was negative during the quarter and for an un-geared portfolio equated to a quarterly return of -0.70% (three months to 31st March 2015: return of +1.19%). This negative performance was mainly attributable to losses from the Peruvian Nuevo Sol, Mexican Peso and Chilean Peso. Annualised performance since inception (30th November 2009) for an un-geared portfolio was +1.49% p.a.

Investment performance in the Multi-Strategy product that uses the Active FRB strategy was negative during the quarter as the Momentum, Value, Emerging Market and Active FRB strategies all generated negative returns. For an un-geared portfolio, the return was -0.81% over the quarter (three months to 31st March 2015: return of -1.15%). Annualised performance since inception (31st July 2012) for an un-geared portfolio is +1.39% p.a.

A version of the Multi-Strategy product which started earlier this year and uses the FTSE Currency FRB10 index strategy instead of the Active FRB product, produced negative returns of -1.14% for an ungeared portfolio during the three months to 30th June 2015.

4. AVERAGE FEE RATES AND PERFORMANCE FEES

During the quarter to 30th June 2015, fee rates for all products remained broadly unchanged from the previous quarter. No performance fees were earned in the quarter.

5. CHIEF EXECUTIVE'S COMMENT

Chief Executive James Wood-Collins, commenting on business development, said:

"Although the first quarter of this financial year has seen fewer inflows than the last quarter of the prior year, it has been no less busy in terms of both market activity and client and prospective client engagement.

"Within markets, the ongoing Greek debt and bailout saga has kept the Eurozone and by implication the Euro firmly in the public eye. Whilst the impact on Euro exchange rates has been modest, and so far there has been little effect on market liquidity or functioning, the crisis does serve to remind investors of currency risk.

"When combined with the continued expectation of divergent monetary policy and heightened volatility, we are not surprised to see elevated levels of interest maintained in both currency risk management and currency for return opportunities from institutional investors and their advisers.

"Our diversified product suite means Record is well placed to take advantage of such interest, whether from a risk-averse or a risk-taking perspective and we continue to engage with potential clients and their advisers across a broad range of currency issues and geographies. As such we are hopeful that further progress can be made in the current financial year."

Record will announce its second quarter trading update on 16th October 2015.

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

Jack Holden

Jennifer Iveson

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 Currency 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.