Record Regulatory News (REC)

RECORD PLC

FOURTH QUARTER TRADING UPDATE

Record plc ("Record" or the "Company"), the specialist currency manager, announces today that as at 31st March 2014 the Group's assets under management equivalents ("AUME") totalled $51.9 billion (31st December 2013: $51.1 billion).

AUME expressed in Sterling as at 31st March 2014 totalled £31.1 billion (31st December 2013: £30.8 billion).

1. AUME composition

Record saw a small increase in AUME during the period between 31st December 2013 and 31st March 2014. The composition of AUME at 31st March 2014 was as follows:

Note 1: This includes $0.8 billion of Emerging Market strategies (31st December 2013: $0.8 billion).

2. AUME Movement

Net client AUME flows in the three months to 31st March 2014 by product were as follows:

Net client AUME flows in dynamic hedging reflect the commencement of the new dynamic hedging mandate of approximately $600 million announced on 14th January 2014, but not the termination of a dynamic hedging mandate announced on 1st April 2014. The net client outflows are attributable to reductions in mandate size for some existing clients. Record also saw inflows of approximately $20 million into the Record FTSE FRB10 Index Fund during the quarter.

Record had 48 clients at 31st March 2014 (31st December 2013: 46 clients).

The factors other than client flows which have impacted AUME during the quarter had an aggregate impact of +$0.5 billion, being:

(i) Exchange rate movements: +$0.2bn 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: +$0.3bn 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 the basket of exposure currencies, and as a result the returns of the hedging programme were negative. Losses came from hedges on the Euro, which range-traded against the Dollar and consequently generated risk-management costs, and on the Japanese Yen and Australian Dollar, which strengthened against the Dollar. The systematic lowering of hedge ratios in these latter two currencies helped to limit these losses.

For UK-based Dynamic Hedging clients the programmes also performed as expected, as Sterling range-traded over the quarter, ultimately strengthening marginally. The programmes participated in some Sterling gains during February, while costs associated with adjusting hedge ratios affected performance in January and March. These costs, and the range-bound nature of Sterling moves, meant that the programmes modestly underperformed over the quarter.

Investment performance in Record's established Active Forward Rate Bias (FRB) product was negative during the quarter ending 31st March 2014 and for an ungeared portfolio equated to a return of -0.66% over the quarter (3 months to 31st December 2013: positive return of 1.41%). This compares to a positive return in the quarter of 1.31% for the FTSE Currency FRB10 index (excess return in Sterling). This variance is the result of differences in the allocations in 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 31st March 2014 and for an un-geared portfolio equated to a return of 0.35% over the quarter (3 months to 31st December 2013: positive return of 0.60%). Annualised performance since inception (30th November 2009) for an un-geared portfolio is 1.85% p.a.

Investment performance in Record's Multi-Strategy product was negative during the quarter ending 31st March 2014 and for an un-geared portfolio equated to a return of -0.36% over the quarter (3 months to 31st December 2013: positive return of 1.28%¹). Cumulative performance since inception (31st July 2012) for an un-geared portfolio of 3.83% for the twenty months to 31st March 2014 equates to annualised performance of 2.28% p.a.

3. AVERAGE FEE RATES

During the quarter to 31st March 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 "As already announced, this quarter has seen the commencement of a new dynamic hedging mandate as well as modest but welcome inflows into the FTSE FRB10 Index Fund. This news was tempered somewhat by the termination of a dynamic hedging mandate just following quarter-end.

"Given the size of Record's hedging mandates and the infrequent nature of their being awarded, it is no surprise that this quarter's inflows have been less dramatic than those of last quarter. Furthermore, some of the interest from US investors in currency hedging observed since last summer has weakened in the absence of pronounced US Dollar appreciation, although this interest could return quickly. Our currency management strategies continue to be of interest to more potential clients and consultants than has been the case historically, which we expect to lead to opportunities in return-seeking mandates as well as in hedging.

"Our diversified range of strategies and ability to provide flexible, bespoke solutions means we are well placed to help investors with their currency requirements. Whilst procurement processes are typically competitive, and their timing uncertain, we are hopeful that further progress can be made in 2014."

Record will announce its financial results for the year ended 31st March 2014 on 17th June 2014 and first quarter trading update on 18th July 2014.

¹The return on Record's Multi-strategy product for the quarter ended 31st December 2013 was originally stated as +1.39% in the quarterly update dated 17th January 2014, this has now been confirmed as +1.28%.

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

Nick Hayns

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.