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 2017 totalled $61.2 billion (30th June 2017: $59.9 billion).

AUME expressed in sterling as at 30th September 2017 totalled £45.6 billion (30th June 2017: £46.1 billion).

1. AUME composition

AUME expressed in US dollars increased by 2.2% between 30th June 2017 and 30th September 2017 and decreased by 1.1% 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 2017 by product were as follows:

Record had 59 clients at 30th September 2017 (30th June 2017: 58 clients).

For UK-based clients, Dynamic Hedging achieved cost-effective protection of currency gains from sterling's depreciation in the six months following the EU referendum. However, persistent weakness in sterling meant negative returns and cash flows were unavoidable. As a result Record's remaining UK-based Dynamic Hedging clients converted their mandates to Passive Hedging or terminated during the period.

Other than client flows, the factors which have had an aggregate impact on AUME during the quarter of +$2.3 billion were as follows:

(i) Movements in global stock and other markets: +$2.0bn 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.

(ii) Exchange rate movements: +$0.2bnExchange rate movements during the period affect the conversion of non-US dollar mandate sizes into US dollar AUME.

During the quarter certain Currency for Return mandates targeting a specific volatility target were scaled up, which resulted in an increase to AUME of +$0.1 billion.

3. Investment performance

For US Dynamic Hedging clients during the quarter, hedging returns in the programmes were negative, as the US dollar weakened against the weighted basket of hedged currencies. Losses came primarily from hedging the euro and sterling. The Dynamic Hedging programmes performed as intended, and hedge ratios fluctuated in line with US dollar movements, generally allowing US investors to keep currency gains in the underlying overseas exposures.

For UK-based Dynamic Hedging clients the programmes performed as expected, controlling hedging losses in response to sterling weakness against the weighted basket of currencies with the losses limited as hedge ratios fell systematically over the first two months of the quarter. In September, hedge ratios rose in response to sterling strength, thus helping to protect against foreign currency weakness. As the quarter drew closer to its end the UK-based Dynamic Hedging programmes were either transitioned to Passive Hedging or terminated at the clients' requests.

Investment performance of the FTSE Currency FRB10 index (excess return in sterling) during the three months to 30th September 2017 was +0.06% (three months to 30th June 2017: return of -0.79%). The FTSE FRB10 Index Fund continued to track the 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 +0.60% (three months to 30th June 2017: return of -0.13%). Annualised performance since inception (30th November 2009) for an un-geared portfolio was +2.14% p.a.

Investment performance in the Multi-Strategy product that comprises the FTSE Currency FRB10, Emerging Market, Value and Momentum strategies was positive during the quarter as positive returns from Value, FRB10 and Emerging Markets offset losses in Momentum. For an un-geared portfolio, the return was +0.08% over the quarter (three months to 30th June 2017: return of -0.70%). Annualised performance since inception (31st July 2012) for Record's longest-standing Multi-Strategy mandate on un-geared portfolio basis is +1.52% p.a.

4. AVERAGE FEE RATES AND PERFORMANCE FEES

During the quarter to 30th September 2017, fee rates for all products 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:

"Growth in AUME over the quarter in US dollar terms has resulted in Record's highest ever level of $61.2 billion. We were pleased to open our office in Zürich, which will enable us to enhance our relationships with Swiss clients and to heighten our presence in the Swiss local market.

"We have continued to innovate and enhance our products to meet clients' developing needs. This focus on service enhancement has contributed to growth in employee numbers and hence costs over the first half of the financial year.

"We will continue to dedicate significant resources between now and the end of the year to implementing regulatory changes. With respect to EMIR, we have made good progress in introducing daily variation margin for our affected clients, although there remains a risk that this will prove too onerous for some of our smaller Passive Hedging clients. This may lead to some mandate losses, although these are not expected to be material. With respect to MiFID II, there may be additional costs associated with the provision of research. We have decided that any such costs will be absorbed by Record, although these too are not expected to be material.

"The theme of volatility in currency markets linked to political and economic uncertainty continues, and the consequent uncertainty provides opportunities for engagement with both existing and potential clients. We remain confident of making further progress in the second half of the financial year."

Record will announce its half year results on 17th November 2017 and its third quarter trading update on 19th January 2018.

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

Ollie Hoare

Notes to Editors

Record plcRecord 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.