Record Regulatory News (REC)

22 October 2021

RECORD PLC

('Record' or the 'Company')

SECOND QUARTER TRADING UPDATE

Record plc, the specialist currency and derivatives manager, is pleased to announce a positive trading update for the three months ended 30 September 2021 ("Q2-2022" or the "period").

Highlights

· Assets under management equivalents ("AUME") as at 30 September 2021 totalled US$84.1 billion (30 June 2021: US$84.5 billion)

· Growth of US$75 million in the new Record EM Sustainable Finance Fund

· Net inflows of US$600 million in the higher-margin Dynamic Hedging product

· New product development in collaboration with new EU-based partner, anticipated launch by the end of the calendar year

· Client numbers grew by 2% during the period

· New London-based office opened in mid-October

Leslie Hill, Chief Executive of Record plc, commented:

"Our focus continues on the diversification of our products and revenue streams. In this respect, building strategic partnerships remains core to our growth strategy and we are excited to be working in collaboration with a new EU partner to develop an investment product focused on the German institutional market, which we hope to launch by the end of the calendar year. This will add further diversification to our product range and broadens our expertise in financial derivatives outside of pure currency.

"It is pleasing to report net inflows of US$600 million into Dynamic Hedging and US$100 million into Currency for Return, both of which provide further diversification and scale to our higher margin client base.

"We continue to work hard on implementing our growth and modernisation strategy across our business and, as expected have now started to see the financial impact through both increased revenues and operating margins. I look forward to providing a further update to shareholders at our interim results on 23 November."

Trading Analysis

1. AUME composition

The Group's AUME as at 30 September 2021 totalled US$84.1 billion (30 June 2021: US$84.5 billion), and expressed in sterling totalled £62.4 billion (30 June 2021: £61.2 billion). AUME expressed in US dollars saw a negligible percentage decrease between 30 June 2021 and 30 September 2021, and an increase of 2% 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 30 September 2021 by product were as follows:

Record had 89 clients at 30 September 2021 (30 June 2021: 87 clients).

Other than client flows, the factors which have had an aggregate negative impact on AUME during the quarter of -$0.5 billion were as follows:

(i) Exchange rate movements and mandate volatility targeting: -$1.0bnExchange 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 positive as the US dollar appreciated versus the weighted basket of hedged currencies. The value added in the quarter for a representative account was +0.36% (30 June 2021: -0.44%), with annualised performance since inception (April 2009) of +0.43%.

For Tenor Managed Passive Hedging clients returns were negative during the quarter, with the respective benchmark hedging structures outperforming the product. The FX forward market has seen a further reduction in volatility of interest rate differentials given the sustained high level of intervention from central banks and through government stimulus packages globally. Low volatility as a result of significant injections of US dollar liquidity into financial markets reduced the broader opportunity set during the period. The value added in the quarter relative to a fixed tenor benchmark for a Tenor Managed Passive Hedging programme for a representative account was -0.01% (30 June 2021: -0.004%), with annualised performance since inception (October 2014) of +0.08% 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 +0.81% (30 June 2021: 0.88%). Annualised performance since inception (31 July 2012) for the portfolio was +1.00% p.a.

The Record EM Sustainable Finance Fund performed well when compared to major market EM sovereign bond indices, returning -0.42% in the quarter (JPM Government Bond Index EM Global Diversified ("JPM GBIEMGD"): -3.1%)[1]. The overweight exposures in high-yielding currencies of Eastern Europe and Central and Eastern Asia contributed positively to the outperformance. The return from short selling a diversified basket of developed market currencies to fund the long exposures in emerging market currencies also added positively to the fund's outperformance in the quarter. Exposure to currencies in Latin America performed poorly in the period following growing local political and fiscal uncertainties, inflationary pressures, concerns over a slowdown in global growth, in particular in China, and volatile commodity prices. The USD-denominated bonds in the portfolio closed slightly weaker on the back of increasing yields in the US market as the Federal Reserve indicated that tapering could start as early as November 2021 amid rising price pressures and strong growth momentum.

4. AVERAGE FEE RATES AND PERFORMANCE FEES

During Q2-2022, fee rates remained broadly unchanged from the previous quarter. No performance fees were earned in the quarter.

Record will announce its half year results on 23 November 2021 and its third quarter trading update on 21 January 2022.

-Ends -

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

Victoria Hayns

Henry Wilson

George Beale

Notes to Editors

Record plc

Founded in 1983, Record is an independent, market-leading specialist currency and derivatives manager with over 38 years of experience which has allowed us to develop a deep and fundamental understanding of the risk and reward opportunities within those markets.

Our range of products typically assist our clients in achieving either their risk-reduction (via Currency Hedging) or return-seeking (via Currency for Return) objectives.

Our clients are largely institutions, including pension funds, charities, foundations, endowments, and family offices, as well as other asset managers and corporates.

Record (LSE: REC) was admitted to trading on the London Stock Exchange on 3 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.