Record Regulatory News (REC)

16 OCTOBER 2012

RECORD PLC

SECOND QUARTER TRADING UPDATE

Record plc ("Record" or the "Company"), the specialist currency manager, announces today that as at 30th September 2012 the Group's assets under management equivalents ("AuME") totalled $32.5 billion (30th June 2012: $29.9 billion).

AuME expressed in Sterling as at 30th September 2012 totalled £20.1 billion (30th June 2012: £19.1 billion).

1. AuME composition

Record saw an overall increase in AuME when expressed in both US Dollars and Sterling during the period between 30th June and 30th September 2012. The composition of AuME at 30th September 2012 was as follows:

Note 1: This includes $0.8 billion of Emerging Market strategies (30th June 2012 $0.8 billion).

2. AUME Movement

Net client AuME flows in the three months to 30th September 2012 by product were as follows:

Record had 43 clients at 30th September 2012, compared with 40 at 30th June 2012.

The net flow into Currency for Return in the quarter includes Record's first multi-strategy currency mandate, which represents an important strategic step for the Group. The quarter also saw the closure of the Euro Stress Fund, due to our recognising that Eurozone stress has been more evident in markets other than currency and we believe this may continue. Record will continue to explore tactical and non-systematic investment strategies to complement our longer-standing more systematic approaches.

The factors other than client flows which have impacted AuME during the quarter, totalling $1.4 billion, were:

(i) Movements in global stock and other markets: $1.0bn 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;

(ii) Exchange rate movements: $0.4bn Exchange rate movements during the period affect the conversion of non-US Dollar mandate sizes into US Dollar AuME.

Our Dynamic Hedging programmes performed as expected for US clients during the quarter. The US Dollar performed strongly at the beginning of the quarter and then declined in August and September. As the US Dollar strengthened, the Dynamic Hedging programmes protected clients against the decline in the value of foreign currencies. As the path of the Dollar changed direction, the programmes only partially offset clients' underlying gains.

For UK-based Dynamic Hedging clients the programmes also performed as expected. Sterling strengthened during the quarter and the Dynamic Hedging programmes delivered outperformance.

Investment performance in Record's established Active Forward Rate Bias (FRB) product was positive during the quarter ending 30th September 2012 and for an un-geared portfolio equated to a positive return of 0.31% over the quarter (3 months to 30th June 2012: negative return of 1.02%). This compares to a positive return in the quarter of 1.02% for the FTSE Currency FRB10 index (excess return in Sterling).

Investment performance in Record's systematic Emerging Market product was positive during the quarter ending 30th September 2012 and for an un-geared portfolio equated to a positive return of 1.20% over the quarter (3 months to 30th June 2012: negative return of 2.95%). This product will reach the third anniversary of its live track record in November 2012.

3. AVERAGE FEE RATES

During the quarter to 30th September 2012, fee rates for all products remained broadly unchanged from the previous quarter.

4. CHIEF EXECUTIVE'S COMMENT

Chief Executive James Wood-Collins, commenting on trading, said "Overall AuME increased during the period due to the commencement of new passive hedging mandates. AuME has also increased over the first six months of the financial year, with Passive Hedging having grown by 11%.

"As we had anticipated, we have seen a notable increase in the level of Requests for Proposals towards the end of the quarter, particularly for Passive Hedging in Switzerland. We are hopeful that we will be successful in securing additional mandates from these proposals.

"Whilst the UK continues to be a competitive market with lower levels of activity, we continue to see encouraging engagement with prospective clients and investment consultants in North America.

"We remain confident that further progress can be made in acquiring new business during the second half of the financial year."

Record will announce its half year results on 16th November 2012 and its third quarter trading update on 18th January 2013.

Ends

For further information, please contact:

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

James Wood-Collins

Paul Sheriff

MHP Tel: +44 (0) 20 3128 8100

Nick Denton

John Olsen

Vicky Watkins

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, formerly known as Active 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, formerly known as Absolute 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.