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 2015 totalled $53.5 billion (30th September 2015: $53.3 billion).

AUME expressed in Sterling as at 31st December 2015 totalled £36.3 billion (30th September 2015: £35.2 billion).

1. AUME composition

AUME expressed in US dollars increased by 0.4% between 30th September 2015 and 31st December 2015 and increased by 3% 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 2015 by product were as follows:

Record had 58 clients at 31st December 2015 (30th September 2015: 54 clients).

Other than client flows, the factors which have had an aggregate impact on AUME during the quarter of +$0.4 billion, were as follows:

(i) Movements in global stock and other markets: +$1.6bn 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 may be affected by movements in these markets.

(ii) Exchange rate movements: -$1.2bn Exchange rate movements during the period affect the conversion of non-US dollar mandate sizes into US dollar AUME.

3. Investment performance

For US clients during the quarter, our Dynamic Hedging programmes generated positive returns as the US dollar strengthened against the basket of foreign currencies. The largest gains came from hedging the Canadian dollar, as hedge ratios remained high throughout the period. Substantial gains were also made from hedging the euro, as the currency weakened and the hedge ratio increased over the quarter. There were some partially offsetting negative returns from hedging the Australian dollar; however, losses were contained as the hedge ratio fell significantly over the quarter.

For UK-based Dynamic Hedging clients the programmes controlled hedging losses in response to Sterling weakening against the basket of foreign currencies. Negative returns were primarily driven by hedging the US dollar; however, losses were limited as the hedge ratio fell close to zero over the quarter.

Investment performance in Record's Active Forward Rate Bias (FRB) product was positive during the three months to 31st December 2015, and for an ungeared portfolio equated to a return of 0.39% (three months to 30th September 2015: return of -0.46%). This compares to a 2.56% return in the quarter for the FTSE Currency FRB10 index (excess return in Sterling). This variance was mainly the result of differences in the allocations of these two strategies to some of the stronger performing currencies in the quarter (mostly New Zealand and Australian dollar). 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 1.32% (three months to 30th September 2015: return of -6.53%). This positive performance was mainly attributable to gains from the Brazilian real, Indonesian rupiah and Turkish lira. Annualised performance since inception (30th November 2009) for an un-geared portfolio was +0.47% p.a.

Investment performance in the Multi-Strategy product that uses the Active FRB strategy was positive during the quarter as gains from the Value, Active FRB, and Emerging Market components offset the negative return from the Momentum component. For an un-geared portfolio, the return was 0.26% over the quarter (three months to 30th September 2015: return of -0.87%). Annualised performance since inception (31st July 2012) for an un-geared portfolio is +1.00% p.a.

A version of the Multi-Strategy product which started earlier this year and uses the FTSE Currency FRB10 index strategy instead of the Active FRB product, produced positive returns of 0.46% for an ungeared portfolio during the three months to 31st December 2015 (three months to 30th September 2015: return of -0.95%).

4. AVERAGE FEE RATES, PERFORMANCE FEES AND PRODUCT DEVELOPMENT

During the quarter to 31st December 2015, fee rates for all products remained broadly unchanged from the previous quarter. No performance fees were earned in the quarter.

At the end of the quarter, Record entered into a licensing agreement with WisdomTree Investments, Inc. to provide currency signals that will be used to dynamically hedge currency exposures within WisdomTree's rules-based index family. WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe (collectively, "WisdomTree"), is an exchange-traded fund and exchange-traded product sponsor and asset manager headquartered in New York. Record is optimistic that this development will allow dynamic hedging strategies to be accessible to a wider range of investors than has been the case thus far.

5. CHIEF EXECUTIVE'S COMMENT

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

"The quarter saw tangible examples of central banks pursuing their own domestic objectives, underlining the growing divergence in international monetary policy. The Federal Reserve raised interest rates for the first time in almost ten years whilst the ECB continues to consider additional measures to drive rates further downwards.

"The potential consequences of diverging monetary policy and rising volatility, and their effect on currencies and clients' portfolios, further reinforces the high levels of interest in currency hedging and return-seeking opportunities for clients and prospective clients.

"The increase in client numbers over the quarter reflects this growing interest, and we are enthusiastic about the further opportunities presented by our partnership with WisdomTree."

Record will announce its fourth quarter trading update on 22nd April 2016.

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 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 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.