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 2018 totalled $57.8 billion (30th September 2018: $61.8 billion).

AUME expressed in sterling as at 31st December 2018 totalled £45.4 billion (30th September 2018: £47.4 billion).

1. AUME composition

AUME expressed in US dollars decreased by 6.5% between 30th September 2018 and 31st December 2018 and decreased by 4.2% 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 31st December 2018 by product were as follows:

Record had 65 clients at 31st December 2018 (30th September 2018: 66 clients). Of the $2.5 billion AUME in Passive Hedging mandates previously notified as expected to terminate during the quarter ended 31st December 2018, one commercial relationship representing two clients and $1.7 billion of AUME remained at 31st December 2018, although this is expected to terminate imminently.

Other than client flows, the factors which have had an aggregate impact on AUME during the quarter of -$2.9 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 and mandate volatility targeting: -$0.9bn

Exchange 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 generally strengthened against the weighted basket of hedged currencies.

Investment performance of the FTSE Currency FRB10 index (excess return in sterling) during the three months to 31st December 2018 was -0.34% (three months to 30th September 2018 was -0.40%). 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 2.42% (three months to 30th September 2018: return of -1.24%). Annualised performance since inception (30th November 2009) for an un-geared portfolio was +1.76% 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. For an un-geared portfolio, the return was 0.77% over the quarter (three months to 30th September 2018: return of -0.74%). Annualised performance since inception (31st July 2012) for Record's longest-standing Multi-Strategy mandate on an un-geared portfolio basis is +0.99% p.a.

4. AVERAGE FEE RATES AND PERFORMANCE FEES

During the quarter to 31st December 2018, fee rates for most products remained broadly unchanged from the previous quarter. Record earned performance fees of £1.3 million during the quarter, all of which related to performance over the six month period ended 31st December 2018.

5. CHIEF EXECUTIVE'S COMMENT

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

"We continue to make progress in diversifying Record's business and in enhancing our products and services to clients.

"Our ability to add value to client portfolios is demonstrated by the performance fees earned in the period of £1.3 million. Product enhancements include the seeding of the pro-ESG Multi-Strategy portfolio, as well as the addition of the Range-Trading strategy to client portfolios.

"We continue to see a range of new business opportunities across products and client locations, balanced against competition and fee pressure. With our diversified product suite and our ability to offer tailored solutions, we aim to make further progress in the rest of this financial year and the next."

Record will announce its fourth quarter trading update on 17th April 2019.

For further information, please contact:

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.