Record Regulatory News (REC)

RECORD PLCTHIRD 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 31st December 2017 totalled $63.9 billion (30th September 2017: $61.2 billion).

AUME expressed in sterling as at 31st December 2017 totalled £47.3 billion (30th September 2017: £45.6 billion).

1. AUME composition

AUME expressed in US dollars increased by 4.4% between 30th September 2017 and 31st December 2017 and increased by 3.7% 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 31st December 2017 by product were as follows:

Record had 60 clients at 31st December 2017 (30th September 2017: 59 clients).

Other than client flows, the factors which have had an aggregate impact on AUME during the quarter of +$1.3 billion were as follows:

(i) Movements in global stock and other markets: +$1.4bnSubstantially 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: -$0.1bnExchange rate movements during the period affect the conversion of non-US dollar mandate sizes into US dollar AUME.

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. The Dynamic Hedging programmes performed as intended, with hedge ratios varying systematically in line with US dollar movements. Although the US dollar followed an unstable path, which led to elevated costs associated with varying hedge ratios, low hedge ratios allowed US investors to capture currency gains in the underlying overseas exposures.

Investment performance of the FTSE Currency FRB10 index (excess return in sterling) during the three months to 31st December 2017 was -0.09% (three months to 30th September 2017: return of +0.06%). 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 +1.29% (three months to 30th September 2017: return of +0.60%). Annualised performance since inception (30th November 2009) for an un-geared portfolio was +2.23% 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 gains from Value and Emerging Markets offset losses in the Momentum and FRB10 components. For an un-geared portfolio, the return was +0.30% over the quarter (three months to 30th September 2017: return of +0.08%). Annualised performance since inception (31st July 2012) for Record's longest-standing Multi-Strategy mandate on un-geared portfolio basis is +1.51% p.a.

4. AVERAGE FEE RATES AND PERFORMANCE FEES

During the quarter to 31st December 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:

"This quarter saw further growth in AUME and in client numbers, with growth in particular from existing client mandates as well as new business.

"A busy quarter included final preparations for new regulatory requirements under EMIR and MiFID II. The reversal by European regulators of the imposition of mandatory variation margin achieved the outcome which Record had long advocated, even though significant resources had been committed in the meantime to preparing for the change. The scope of the MiFID II changes was substantial, requiring significant resources and system enhancements and it's pleasing to note that Record achieved full operational readiness by the 3rd January 2018 deadline.

"Volatility in currency markets linked to political and economic uncertainty continues to create opportunities for engagement with existing and potential clients on risk management, return-seeking and combined strategies. We remain confident of making further progress in the rest of the financial year and through to the next financial year."

Record will announce its fourth quarter trading update on 20th April 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

- 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.