Record Regulatory News (REC)

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

17 JANUARY 2020

RECORD PLCTHIRD QUARTER TRADING UPDATE

New business momentum yields growth in AUME and client numbers; performance fees earned

Record plc ("Record" or "the Company"), the specialist currency manager, today announces a trading update for the three months ended 31st December 2019.

Highlights:

·; Assets under management equivalents ("AUME") expressed in US dollars grew by 8% over the period to $64.7 billion as at 31st December 2019.

·; Net inflows of $2.5 billion in the period, of which $1.0 billion relates to a tactical bespoke mandate as previously announced.

·; Client numbers increased by 3 over the period to 73.

·; Management fee rates remained broadly unchanged, and performance fees of £1.8 million were earned in the third quarter.

Chief Executive James Wood-Collins commented:

"In the third quarter we have demonstrated momentum in terms of new business, as illustrated through positive net inflows of $2.5 billion and continued growth in client numbers for the quarter. Overall, AUME is up 12.9% in dollar terms in the nine months to 31st December 2019.

"Performance fees of £1.8 million earned in the period highlight our ability to add value to mandates and underscore our capabilities.

"Management fee rates held up in spite of continued competition and fee pressure. Our focus remains on building on current business opportunities and on enhancement and innovation of our products and services."

Record will announce its fourth quarter trading update on 17th April 2020 and its financial results for the year ending 31st March 2020 on 19th June 2020.

1. AUME composition

The Group's AUME expressed in US dollars as at 31st December 2019 totalled $64.7 billion (30th September 2019: $59.9 billion), and expressed in sterling totalled £48.8 billion (30th September 2019: £48.6 billion). AUME expressed in US dollars increased by 8% between 30th September 2019 and 31st December 2019 and remained broadly flat 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 2019 by product were as follows:

Record had 73 clients at 31st December 2019 (30th September 2019: 70 clients). Three new clients associated with an existing client relationship started passive hedging mandates with AUME of $0.7 billion. The Multi-Product net inflows of approximately $1 billion disclosed above were first reported on 23rd December 2019 and represent an increase to a tactical bespoke mandate. As such the increase is expected only to be temporary.

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) Exchange rate movements and mandate volatility targeting: +$2.3bnExchange 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.

(ii) Movements in global stock and other markets: +$0.0bn 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.

3. Investment performance

Investment performance of the FTSE Currency FRB10 index (excess return in sterling) during the three months to 31st December 2019 was +0.19% (three months to 30th September 2019 was +0.63%). 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 +1.04% (three months to 30th September 2019 return of +0.61%). Annualised performance since inception (30th November 2009) for an un-geared portfolio was +2.15% p.a.

Investment performance in the Multi-Strategy product that comprises the FTSE Currency FRB10, Emerging Market, Value, Momentum and Range Trading strategies was negative during the quarter. The performance of Record's Multi-Strategy composite targeting 4% volatility equated to a quarterly return of -0.46% (three months to 30th September 2019: return of +1.47%). Annualised performance since inception (31st July 2012) for the portfolio was +1.41% p.a.

For US Dynamic Hedging clients during the quarter, hedging returns in the programmes were negative, as the US dollar depreciated versus the weighted basket of hedged currencies.

4. AVERAGE FEE RATES AND PERFORMANCE FEES

During the quarter to 31st December 2019, fee rates remained broadly unchanged from the previous quarter. Record earned performance fees of £1.8 million during the quarter, of which £1.3 million related to performance over the six months, and £0.5 million to performance over the twelve months, to 31st December 2019. 

For further information, please contact:

Record plc Tel: +44 (0) 1753 852 222

James Wood-Collins, Chief Executive Officer

Steve Cullen, Chief Finance Officer

Buchanan Tel: +44 (0) 20 7466 5000

Giles Stewart record@buchanan.uk.com

Victoria Hayns

Henry Wilson

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.