Record Regulatory News (REC)

RECORD PLCSECOND 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 2019 totalled $59.9 billion (30th June 2019: $58.3 billion).

AUME expressed in sterling as at 30th September 2019 totalled £48.6 billion (30th June 2019: £45.8 billion).

1. AUME composition

AUME expressed in US dollars increased by 2.7% between 30th June 2019 and 30th September 2019 and increased by 6.1% 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 2019 by product were as follows:

Record had 70 clients at 30th September 2019 (30th June 2019: 68 clients). The above net inflows of $1.7 billion are predominantly adjustments to existing clients' mandates.

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

(i) Movements in global stock and other markets: +$1.3bnSubstantially 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.

(ii) Exchange rate movements and mandate volatility targeting: -$1.4bnExchange 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.

3. Investment performance

For US Dynamic Hedging clients during the quarter, hedging returns in the programmes were positive, as the US dollar appreciated versus the weighted basket of hedged currencies.

Investment performance of the FTSE Currency FRB10 index (excess return in sterling) during the three months to 30th September 2019 was +0.63% (three months to 30th June 2019 was -0.61%). The FTSE FRB10 Index Fund continued to track the benchmark index closely, on a 1.8x geared basis.

Record's Emerging Market product investment performance was positive during the quarter and for an un-geared portfolio equated to a quarterly return of +0.61% (three months to 30th June 2019 return of +3.04%). Annualised performance since inception (30th November 2009) for an un-geared portfolio was +2.10% p.a.

Investment performance in the Multi-Strategy product that comprises the FTSE Currency FRB10, Emerging Market, Value, Momentum and Range Trading strategies was positive during the quarter. The performance of Record's Multi-Strategy composite targeting 4% volatility equated to a quarterly return of +1.47% (three months to 30th June 2019: return of +0.90%). Annualised performance since inception (31st July 2012) for the portfolio was +1.52% p.a.

4. AVERAGE FEE RATES AND PERFORMANCE FEES

During the quarter to 30th September 2019, fee rates remained broadly unchanged from the previous quarter. No performance fees were earned in the quarter.

5. CHIEF EXECUTIVE'S COMMENT

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

"Economic, political and market uncertainty continues to prevail. The client engagement opportunities which this creates, in conjunction with our ongoing focus on enhancement and innovation, have contributed to the inflows we have seen during the period.

"We also continue to see an attractive range of further new business opportunities, still balanced against competition and fee pressure. We remain confident of making further progress in the current financial year."

Record will announce its half year results on 22nd November 2019 and its third quarter trading update on 17th January 2020.

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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 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.