Record Regulatory News (REC)

22 JULY 2016

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 2016 totalled $53.0 billion (31st March 2016: $53.7 billion).

AUME expressed in sterling as at 30th June 2016 totalled £39.7 billion (31st March 2016: £37.4 billion). Exchange rate movements during the period materially affected the conversion of non-sterling mandate sizes into sterling AUME with an impact of +£1.8 billion.

1. AUME composition

AUME expressed in US dollars decreased by 1.3% between 31st March 2016 and 30th June 2016 and increased by 6.1% 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 2016 by product were as follows:

Record had 61 clients at 30th June 2016 (31st March 2016: 58 clients).

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

(i) Exchange rate movements: -$1.5bnExchange 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: +$0.9bnSubstantially all the Passive and Dynamic Hedging, and some of the Currency for Return mandates, are linked to stock and other market levels. Consequently AUME may be affected by movements in these markets.

3. Investment performance

For US Dynamic Hedging clients during the quarter, our programmes' performance was negative, as the US dollar weakened against the basket of hedged currencies. Losses came from hedging the Japanese yen, which appreciated substantially in the wake of the UK's decision to leave the EU, but these were limited as hedge ratios fell in line with yen strength. The euro range-traded against the dollar before depreciating marginally at the end of the quarter leading to negative returns from hedging the euro.

For UK-based Dynamic Hedging clients the programmes adjusted hedge ratios in line with fluctuations of the pound ahead of the EU referendum vote. As a precautionary measure and in consultation with clients, the level of activity on these programmes was reduced shortly before the referendum to limit clients' exposure to volatile market conditions, ensuring programmes performed in line with their respective benchmarks during this period.

Investment performance in Record's Active Forward Rate Bias (FRB) product was negative during the three months to 30th June 2016, and for an ungeared portfolio equated to a return of -1.92% (three months to 31st March 2016: return of -1.40%). This compares to a 0.78% 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 of these two strategies to some of the more volatile currencies in the quarter. 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 positive during the quarter and for an un-geared portfolio equated to a quarterly return of 0.63% (three months to 31st March 2016: return of 3.46%). This performance was mainly attributable to gains in the Brazilian real, Russian rouble and Colombian peso. Annualised performance since inception (30th November 2009) for an un-geared portfolio was +1.05% p.a.

Investment performance in the Multi-Strategy product that uses the Active FRB strategy was positive during the quarter as the Value, Momentum and Emerging Market components offset losses from the Active FRB strategy. For an un-geared portfolio, the return was 1.48% over the quarter (three months to 31st March 2016: return of 0.53%). Annualised performance since inception (31st July 2012) for an un-geared portfolio is +1.39% p.a.

The Multi-Strategy product that uses the FTSE Currency FRB10 Index strategy instead of the Active FRB strategy produced positive returns of 1.79% for an ungeared portfolio during the three months to 30th June 2016 (three months to 31st March 2016: return of 1.04%) as all four strategies contributed positively to investment performance. Annualised performance since inception (27th February 2015) for an un-geared portfolio is 1.43% p.a.

4. AVERAGE FEE RATES AND PERFORMANCE FEES

During the quarter to 30th June 2016, 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:

"As widely anticipated, volatility increased over the quarter as a consequence of fluctuating market expectations prior to the EU referendum, further heightened in the last week of the quarter by the seemingly-unexpected 'Leave' vote. Although the consequent decline in sterling has been dramatic, the FX market continued to function even in the immediate aftermath. Market-wide transaction volumes were exceptionally high, albeit with poorer liquidity and wider spreads than normal.

"The protective measures we put in place prior to the referendum, of anticipating periods of elevated volatility and managing the impact on clients' portfolios, served their purpose by limiting the increase in trading costs and managing liquidity requirements for our clients.

"Uncertainty seems set to continue at least over the short-term and will likely continue to suppress expectations for monetary policy divergence. However, in the current environment, it is pleasing to note the encouraging performance of the Multi-Strategy product since the start of the year.

"We continue to see a wide divergence of views amongst investors as to their preferences in managing currency risk and opportunity. Our diversified range of strategies, with the ability to tailor these to specific client objectives, means we are well placed to assist clients. Engagement with investors continues, which we believe will lead to further progress being made in the current financial year."

Record will announce its second quarter trading update on 21st October 2016.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

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

Ollie Hoare

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.