Record Regulatory News (REC)

RECORD PLCFOURTH 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 31st March 2017 totalled $58.2 billion (31st December 2016: $56.6 billion).

AUME expressed in sterling as at 31st March 2017 totalled £46.6 billion (31st December 2016: £45.8 billion).

1. AUME composition

AUME expressed in US dollars increased by 2.8% between 31st December 2016 and 31st March 2017 and increased by 1.7% 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 31st March 2017 by product were as follows:

Record had 59 clients at 31st March 2017 (31st December 2016: 64 clients). During the quarter, six associated Passive Hedging clients representing $0.6 billion AUME terminated, and one client reduced its Multi-Product mandate by $0.9 billion. The impact of these AUME reductions was offset by a new Passive Hedging client (+$0.2 billion) and inflows of +$0.8 billion to existing hedging mandates. Record has been notified of the termination of a Passive Hedging mandate of $1.2 billion expected during the current quarter.

Other than client flows, the factors which have had an aggregate impact on AUME during the quarter of +$2.1 billion, were as follows:

(i) Movements in global stock and other markets: +$1.4bn Substantially all the Passive and Dynamic Hedging, and some of the Currency for Return and Multi-Product mandates, are linked to stock and other market levels. Consequently AUME may be affected by movements in these markets.

(ii) Exchange rate movements: +$0.7bnExchange rate movements during the period affect the conversion of non-US dollar mandate sizes into US dollar AUME.

3. Investment performance

For US Dynamic Hedging clients during the quarter, hedging returns in the programmes were negative, as the US dollar weakened against the weighted basket of hedged currencies. Losses came primarily from hedging the Japanese yen and the euro. The Dynamic hedging programmes performed as intended, and hedge ratios fell through the period in line with US dollar weakness, allowing US investors to capture gains in the underlying overseas exposures.

For UK-based Dynamic Hedging clients, hedging returns were negative over the quarter. Although sterling strengthened overall against the basket of hedged currencies it followed a volatile path in doing so, which led to elevated costs associated with varying the hedge ratios. Losses came primarily from hedging the US dollar.

Investment performance of the FTSE Currency FRB10 index (excess return in sterling) during the three months to 31st March 2017 was +0.27% (three months to 31st December 2016: return of +1.96%). 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 +2.85% (three months to 31st December 2016: return of +4.02%). Annualised performance since inception (30th November 2009) for an un-geared portfolio is +2.22% p.a.

Investment performance in the Multi-Strategy product that comprises the FTSE Currency FRB10, Emerging Market, Value and Momentum strategies was positive during the quarter as positive returns from the FRB10 and Emerging Markets strategies more than offset losses from the Momentum and Value components. For an un-geared portfolio, the return was +0.64% over the quarter (three months to 31st December 2016: return of +1.11%). Annualised performance since inception (31st July 2012) for Record's longest-standing Multi-Strategy mandate on un-geared portfolio basis is +1.82% p.a.

4. AVERAGE FEE RATES AND PERFORMANCE FEES

During the quarter to 31st March 2017, 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:

"Net flows into hedging mandates were positive by $0.4 billion in the quarter despite the previously announced termination of Passive Hedging clients representing $0.6 billion. A reduction of $0.9 billion from a Multi-Product mandate this quarter offset inflows of $0.4 billion in the prior quarter, underlining the variable nature of certain mandates. The continued growth of AUME over the financial year, by +10% and +26% in US dollar and sterling terms respectively, has taken AUME to its highest level in Record's history.

"The environment of political uncertainty that has prevailed since the middle of 2016 looks set to continue. European elections are now at the forefront of investors' minds, as is continued uncertainty over the nature of the UK's departure from the EU, and US political and economic policy. Modest divergence in monetary policy has continued with the Federal Reserve's decision in March to raise the federal funds target range by a further 0.25%.

"This backdrop continues to support discussions on how Record is able to assist clients and potential clients in achieving their investment objectives. As a result good engagement continues across Record's diversified range of strategies."

Record will announce its financial results for the year ended 31st March 2017 on 16th June 2017 and its first quarter trading update on 21st July 2017.

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 four principal reporting 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;

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

- Multi-Product, where the client mandate includes combined hedging and return-seeking objectives.

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.