Record Regulatory News (REC)

RECORD PLC

SECOND 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 September 2014 totalled $52.6 billion (30th June 2014: $54.1 billion).

AUME expressed in Sterling as at 30th September 2014 totalled £32.4 billion (30th June 2014: £31.6 billion).

1. AUME composition

Record saw a small decrease in AUME between 30th June 2014 and 30th September 2014 when expressed in US Dollars, and a small 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 (30th June 2014: $0.8 billion). The change in the period reflects a reallocation by an existing client from a bespoke Emerging Market mandate to a Developed Market mandate.

2. AUME Movement

Net client AUME flows in the three months to 30th September 2014 by product were as follows:

Net client AUME flows in Hedging and Currency for Return products principally reflect amendments to mandate sizes for existing clients.

Record had 49 clients at 30th September 2014 (30th June 2014: 48 clients).

The factors other than client flows which have impacted AUME during the quarter had an aggregate impact of -$1.3 billion, being:

(i) Exchange rate movements: -$3.2bn 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: +1.9bn

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 strengthened against all 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, Swiss Franc and Japanese Yen, which depreciated against the US Dollar resulting in the systematic increase in hedge ratios for these currencies.

For UK-based Dynamic Hedging clients the programmes also performed as expected, controlling hedging losses in response to Sterling weakening against the basket of currencies in the programmes. The main contributor to the negative performance was the US Dollar, which strengthened against Sterling. Some offsetting gains were made from hedging the Euro, which depreciated over the quarter.

Investment performance in Record's established Active Forward Rate Bias (FRB) product was positive during the quarter ending 30th September 2014 and for an ungeared portfolio equated to a return of +1.36% over the quarter (3 months to 30th June 2014: return of +0.07%). This compares to a -0.38% return in the quarter for the FTSE Currency FRB10 index (excess return in Sterling). This variance is the result of differences in the allocations of these two strategies to some of the stronger-performing currencies in the quarter (US Dollar, Norwegian Krone and Canadian Dollar). The FTSE FRB10 Index Fund continues to track the index closely, on a 1.8x-geared basis.

Record's Emerging Market product investment performance was positive during the quarter ending 30th September 2014 and for an un-geared portfolio equated to a quarterly return of +0.28% (3 months to 30th June 2014: return of +1.11%). Annualised performance since inception (30th November 2009) for an un-geared portfolio is +1.95% p.a.

Investment performance in Record's live Multi-Strategy product was also positive during the quarter ending 30th September 2014, with positive contributions from three of the four strategies. For an un-geared portfolio, the return was +0.66% over the quarter ending 30th September 2014 (3 months to 30th June 2014: return of +0.58%). Annualised performance since inception (31st July 2012) for an un-geared portfolio is +2.33% p.a.

3. AVERAGE FEE RATES

During the quarter to 30th September 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:

"Increasing divergence in central bank policy, and the related rise in volatility in currency markets, continue to generate interest in our Currency for Return strategies, after a prolonged period of little or no new demand. This has been accompanied by more recent US Dollar appreciation which, if sustained, we would expect to foster further interest in currency management amongst US investors, as well as by renewed interest in hedging from UK investors.

"We continue to see broad interest across our diversified product range from potential clients and consultants in North America, Switzerland and the UK. Whilst procurement processes are typically competitive, and their timing uncertain, we are hopeful that further progress will be made in the current financial year."

Record will announce its half year results on 14th November 2014 and its third quarter trading update on 16th January 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

Vicky Watkins

James Moncrieff

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.