Record Regulatory News (REC)

19 OCTOBER 2020

RECORD PLCSECOND QUARTER TRADING UPDATE

Growth in AUME of 4%, ongoing new business momentum with $8 billion Dynamic Hedging mandate win

Record plc ("Record" or "the Company"), the specialist currency manager, today announces a trading update for the three months ended 30th September 2020.

Highlights

· Assets under management equivalents ("AUME") expressed in US dollars grew by 4% over the quarter to $65.9 billion as at 30th September 2020.

· A new Dynamic Hedging mandate of approximately $8 billion was announced during the quarter. The mandate has now started and will build up in tranches over time.

· Management fee rates remained broadly unchanged during the quarter.

· Panmure Gordon (UK) Limited ("Panmure Gordon") were appointed as the Company's sole Corporate Broker with effect from 14 October 2020.

Chief Executive of Record plc, Leslie Hill, commented:

"During Record's second quarter considerable progress was made against our growth objectives. In particular, it was pleasing to announce our Dynamic Hedging mandate win of approximately $8 billion, which will add material scale to our AUME over time. Notwithstanding the size of the mandate, no further investment in systems or personnel is required, underlining the scalability of our operational systems.

"Following updated Government guidance with respect to Covid-19 during the quarter, the majority of our workforce continues to work remotely with no detriment to the level or quality of service provided to our clients. Our operational infrastructure gives us the capability and resilience to continue to work remotely for as long as is necessary whilst ensuring the safety and wellbeing of our employees.

"One of my strategic priorities for the current financial year was that of talent retention and development and planning for generational change. Progress was made in the quarter through the launch of Record's Joint Share Ownership Plan ("JSOP") in September, a new share-based incentive plan which seeks to retain and incentivise key staff below Board level, and to further align their interests with shareholders.

"Our focus on innovation and the diversification of our product range continues, with tangible progress having been made in the development of our market-first Impact/ESG bond offering, upon which we expect to provide further information in due course.

"As we approach the end of the calendar year, we continue to monitor the ongoing Brexit negotiations closely. We will ensure the continuity of service to our current EU-27 based clients, and our plans are in hand to retain the ability to market to potential new EU-27 clients, irrespective of the final outcome of negotiations."

Further Trading Analysis

1. AUME composition

The Group's AUME expressed in US dollars as at 30th September 2020 totalled $65.9 billion (30th June 2020 totalled $63.3 billion), and expressed in sterling totalled £51.0 billion (30th June 2020: £51.2 billion). AUME expressed in US dollars increased by 4% between 30th June 2020 and 30th September 2020 and remained broadly flat 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 September 2020 by product were as follows:

Record had 74 clients at 30th September 2020 (30th June 2020: 72 clients).

Other than client flows, the factors which have had an aggregate impact on AUME during the quarter of +$2.4 billion were as follows:

(i) Exchange rate movements and mandate volatility targeting: +$1.9bnExchange rate movements during the period affect the conversion of non-US dollar mandate sizes into US dollar AUME. In addition certain Currency for Return mandates targeting a specific volatility target may be scaled up or down.

(ii) Movements in global stock and other markets: +$0.5bn Substantially all the Passive and Dynamic Hedging, and some of the Multi-Product 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, hedging returns in the programmes were negative, as the US dollar depreciated versus the weighted basket of hedged currencies.

Record's Dynamic Macro Currency strategy which uses a mix of both discretionary and systematic investment allocations saw negative performance in the quarter, with investment performance for the three months to 30th September 2020 of -0.41% (30th June 2020: -3.39%).

Record's return-seeking strategies using more systematic investment allocations also saw negative performance in the quarter.

Investment performance of the FTSE Currency FRB10 index (excess return in sterling) during the three months to 30th September 2020 was -0.87% (30th June 2020: +2.13%).

Record's Emerging Market product investment performance was negative during the quarter and for an un-geared portfolio equated to a quarterly return of -2.12% (30th June 2020: +3.67%). Annualised performance since inception (30th November 2009) for an un-geared portfolio was +1.28% p.a.

Investment performance in the Multi-Strategy product that comprises the FTSE Currency FRB10, Emerging Market, Value, Momentum and Range Trading strategies was negative during the quarter. The performance of Record's Multi-Strategy composite targeting 4% volatility equated to a quarterly return of -2.20% (30th June 2020: +0.35%). Annualised performance since inception (31st July 2012) for the portfolio was +0.33% p.a.

4. AVERAGE FEE RATES AND PERFORMANCE FEES

During the quarter to 30th September 2020, fee rates remained broadly unchanged from the previous quarter. No performance fees were earned in the quarter.

During the quarter, a small number of Passive Hedging clients elected to change from a management fee only to a combined lower management fee and a performance-related fee, effective from 1st October 2020. The impact will be a small decrease in the overall average management fee rate achieved across Record's Passive Hedging clients, although the change creates the opportunity for Record to earn performance fees which over time may match or exceed foregone management fees, dependent on market conditions. Performance fees earned under this change will be disclosed in quarterly Trading Updates in the ordinary course.

Record will announce its half year results on 24th November 2020 and its third quarter trading update on 22nd January 2021.

For further information, please contact:

Record plc Tel: +44 (0) 1753 852 222

Leslie Hill, Chief Executive Officer

Steve Cullen, Chief Finance Officer

Buchanan Tel: +44 (0) 20 7466 5000

Giles Stewart record@buchanan.uk.com

Henry Wilson

George Beale

Notes to Editors

Record plc

Founded in 1983, Record is an independent, specialist currency manager and has established a market 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.