Record Regulatory News (REC)

RECORD PLC

THIRD QUARTER TRADING UPDATE

Record plc ("Record" or the "Company"), the specialist currency manager, announces today that as at 31st December 2013 the Group's assets under management equivalents ("AUME") totalled $51.1 billion (30th September 2013: $37.7 billion).

AUME expressed in Sterling as at 31st December 2013 totalled £30.8 billion (30th September 2013: £23.3 billion).

1. AUME composition

Record saw an overall increase in AUME during the period between 30th September 2013 and 31st December 2013. The composition of AUME at 31st December 2013 was as follows:

Note 1: Figures for the period ended 30th September 2013 reflect the reclassification of a bespoke hybrid hedging and return-seeking mandate as described in the interim report for the six months then ended, the result of which was a reclassification of $1 billion of AUME from Dynamic Hedging to Currency for Return.

Note 2: This includes $0.8 billion of Emerging Market strategies (30th September 2013: $0.8 billion).

2. AUME Movement

Net client AUME flows in the three months to 31st December 2013 by product were as follows:

Record had 46 clients at 31st December 2013 (30th September 2013: 46 clients).

The factors other than client flows which have impacted AUME during the quarter, had an aggregate impact of +$1.4 billion, being:

(i) Exchange rate movements: +$0.8bn Exchange rate movements during the period affect the conversion of non-US Dollar mandate sizes into US Dollar AUME.

(ii) Movements in global stock and other markets: +$0.6bn 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.

Our Dynamic Hedging programmes performed as expected for US clients during the quarter. The US Dollar strengthened against exposure currencies overall, and as a result the returns of our hedging programmes were positive. Losses in hedges on Sterling and Euro, which both rose against the Dollar, were outweighed by positive returns in hedges on the Japanese Yen, which weakened substantially. The systematic raising of Yen hedge ratios helped to capture more of this trend.

For UK-based Dynamic Hedging clients the programmes also performed as expected. Sterling strengthened over the quarter, and as a result the programmes generated outperformance. Similarly to the US Dollar programmes, the sustained weakening trend of the Yen generated positive hedging returns as the programmes benefited from maintaining high hedge ratios in this currency.

Investment performance in Record's established Active Forward Rate Bias (FRB) product was positive during the quarter ending 31st December 2013 and for an ungeared portfolio equated to a positive return of 1.41% over the quarter (3 months to 30th September 2013: negative return of 0.59%). This compares to a negative return in the quarter of 0.39% for the FTSE Currency FRB10 index (excess return in Sterling). This variance is the result of differences in the allocations in these two strategies to the currencies that moved the most in the quarter (Australian Dollar, New Zealand Dollar and Japanese Yen).

Investment performance in Record's Emerging Market product was positive during the quarter ending 31st December 2013 and for an un-geared portfolio equated to a positive return of 0.60% over the quarter (3 months to 30th September 2013: negative return of 1.86%).

Investment performance in Record's Multi-Strategy product was positive during the quarter ending 31st December 2013 and for an un-geared portfolio equated to a positive return of 1.39% over the quarter (3 months to 30th September 2013: negative return of 0.47%). Cumulative performance since inception (31st July 2012) has been 4.33% for the seventeen months to 31st December 2013, equating to annualised performance of 3.04% p.a.

3. AVERAGE FEE RATES

As announced on 7th November 2013, Record has amended the fee scales applied to its existing Dynamic Hedging mandates to align existing clients' fees with those being proposed to potential new clients. The impact of these amendments alone, excluding the impact of any potential new business, is estimated to be a reduction in future annualised management fees of approximately £2.6 million, with an on-going annualised impact on pre-tax profits of approximately £1.8 million. Fee rates for all other products remained broadly unchanged from the previous quarter.

4. CHIEF EXECUTIVE'S COMMENT

Chief Executive James Wood-Collins, commenting on trading, said "During a busy quarter, there have been developments in both Dynamic and Passive Hedging, which on balance give grounds for optimism.

"Having observed increased competitive activity following the higher level of new business enquiries and procurement processes in recent months, we decided to recognise this in fee arrangements with existing and long-standing clients, as well as with potential new clients. In doing so we are pursuing growth in volume that would more than compensate for reduced revenue margins, and in this respect we were pleased to announce the award (subject to contract) of a new Dynamic Hedging mandate for AUME of initially approximately $600 million on 14th January 2014.

"The Passive Hedging mandate announced on 3rd June 2013 commenced during the quarter, and in total Passive Hedging mandates of approximately $12 billion in AUME have started since 30th September 2013. These mandates are expected to generate approximately £2.3 million in annualised management fees, with an on-going annualised impact on pre-tax profits of approximately £1.6 million.

"As a consequence of the start of these new mandates Record's total AUME has now exceeded $50 billion for the first time in over five years.

"Engagement with prospective clients and investment consultants in North America, UK and Switzerland continues, with interest received across our product range. Whilst formal procurement processes are by nature competitive, and their timing uncertain, we are hopeful that further progress can be made in 2014."

Record will announce its fourth quarter trading update on 23rd April 2014.

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

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, 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, 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.