Record Regulatory News (REC)

24 April 2015

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 2015 totalled $55.4 billion (31st December 2014: $52.7 billion).

AUME expressed in Sterling as at 31st March 2015 totalled £37.3 billion (31st December 2014: £33.8 billion).

1. AUME composition

Record saw an increase in AUME between 31st December 2014 and 31st March 2015 when expressed in US Dollars and a larger increase when expressed in Sterling. The composition of AUME by product was as follows:

Note 1: This includes $0.4 billion of Emerging Market strategies (31st December 2014: $0.3 billion).

2. AUME Movement

Net client AUME flows in the three months to 31st March 2015 by product were as follows:

Record had 55 clients at 31st March 2015 (31st December 2014: 51 clients).

The factors other than client flows, which have had an aggregate impact on AUME during the quarter of +$0.1 billion, were as follows:

(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: +$0.2bn 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. The US Dollar strengthened against almost all of the G10 currencies, and as a result the returns of the hedging programmes were positive over the quarter. The largest gains came from hedges on the Euro, Canadian Dollar and Pound, as hedge ratios, for these currencies, remained high over most of 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 mainly from hedging the Euro, where hedge ratios were high. At the same time, the losses in the US Dollar, which continued to strengthen against Sterling, were contained as hedge ratios remained low during the quarter.

Investment performance in Record's Active Forward Rate Bias (FRB) product was negative during the quarter ending 31st March 2015, and for an ungeared portfolio equated to a return of -4.22% over the quarter (3 months to 31st December 2014: return of +1.22%). This compares to a -1.35% return in the quarter for the FTSE Currency FRB10 index (excess return in Sterling). This variance was mainly the result of differences in allocations to the Swiss Franc which appreciated sharply in January following the Swiss National Bank's decision to abandon its cap on the value of the Franc. 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 ending 31st March 2015 and for an un-geared portfolio equated to a quarterly return of +1.19% (3 months to 31st December 2014: return of -1.53%). This positive performance was mainly attributable to gains from the Russian Rouble, Chinese Renminbi and Indian Rupee. Annualised performance since inception (30th November 2009) for an un-geared portfolio was +1.70% p.a.

Investment performance in Record's live Multi-Strategy product was negative during the quarter ending 31st March 2015 as gains from the Emerging Market and Value strategy were overcome by negative returns from the Active FRB and Momentum strategies. For an un-geared portfolio, the return was -1.15% over the quarter ending 31st March 2015 (3 months to 31st December 2014: return of +1.00%). Annualised performance since inception (31st July 2012) for an un-geared portfolio is +1.83% p.a.

Two new Multi-Strategy mandates were established during the quarter. These mandates are based on a standard version of the Multi-Strategy product which uses a FTSE Currency FRB10 index replicating strategy instead of the Active FRB product.

4. AVERAGE FEE RATES AND PERFORMANCE FEES

During the quarter to 31st March 2015, fee rates for all products remained broadly unchanged from the previous quarter. Performance fees of £0.5m were earned from a Dynamic Hedging mandate, based on performance over the 12 month period ended 31st March 2015.

5. CHIEF EXECUTIVE'S COMMENT

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

"During a busy quarter we have seen net inflows of $2.6 billion, made up of the anticipated inflows into Currency for Return, net outflows in Dynamic Hedging, and the majority of the anticipated inflows into Passive Hedging. Currency for Return inflows include our second segregated Multi-Strategy mandate and the launch of a new pooled fund implementing the Multi-Strategy programme, which together with other new business further advance the diversification of business across clients and product types.

"It's also pleasing to have earned a performance fee of £0.5m for the year to 31st March 2015 from one of our Dynamic Hedging mandates - Record's first performance fee for five years.

"During the quarter, currency markets have seen continued divergent monetary policy, contributing in broad terms to appreciation of the US Dollar and depreciation of the Euro. Routine day-to-day volatility has increased from previously-depressed levels, and in addition unanticipated events, most obviously the policy change announced by the Swiss National Bank on 15th January 2015, have had significant market repercussions.

"The diversity of Record's client base by objectives and by geography, the continued predominance of hedging revenues, and diversification of strategies and currency pairs within strategies in return-seeking programmes, have all served well to protect Record from the effects of any single market event over the quarter.

"Furthermore, these market factors continue to contribute to growing interest in currency issues for clients, potential clients and investment consultants, and to create the opportunity for a more supportive environment for both hedging and return-seeking strategies. Our diversified product suite means Record is well placed to take advantage of opportunities as they arise.

"We continue to engage with potential clients across a broad range of currency issues and geographies and are hopeful that further progress can be made in the new financial year, although procurement processes are still expected to be competitive and lengthy with the outcome necessarily uncertain."

Record will announce its financial results for the year ended 31st March 2015 on 16th June 2015 and the first quarter trading update on 17th July 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 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.