22 January 2021

RECORD PLC

('Record' or the 'Company')

THIRD QUARTER TRADING UPDATE

Growth in AUME of 13%, including net inflows of $5.1 billion

Record plc, the specialist currency manager, today announces a trading update for the three months ended 31^st December 2020.

Highlights

·    Assets under management equivalents ("AUME") expressed in US dollars grew by 13% over the quarter to $74.6 billion as at 31^st December 2020, exceeding $70 billion for the first time in Record's history.

·    Diversification of AUME inflows in the quarter across our higher-margin Dynamic Hedging and Multi-Product strategies of $4.7 billion and $1.2 billion respectively.

·    Management fee rates remained broadly unchanged during the quarter.

Leslie Hill, Chief Executive of Record plc, commented:

"Our third quarter saw AUME grow by 13%, including net inflows across Dynamic Hedging ($4.7 billion) and Multi-Product ($1.2 billion).  These strong inflows have also increased AUME in our higher-margin products helping to diversify revenues across our existing product range and leading to an aggregate AUME exceeding $70 billion for the first time in our 37 year history.

"We continue to make good progress on developing our market-first Currency Impact/ESG bond offering, which we expect to launch before the end of the financial year and to deliver further diversification to our future revenue streams.

"Our business continues to grow and to prove its resilience through challenging market conditions, and we remain focused on maintaining this momentum whilst achieving the efficiencies and scalability offered through our ongoing investment in technology.  We are confident that the benefits flowing from the delivery of such improvements will begin to be seen over the final quarter, and more fully early into the next financial year."

Further Trading Analysis

1.            AUME composition

The Group's AUME expressed in US dollars as at 31^st December 2020 totalled $74.6 billion (30^th September 2020: $65.9 billion), and expressed in sterling totalled £54.6 billion (30^th September 2020: £51.0 billion).  AUME expressed in US dollars increased by 13% between 30^th September 2020 and 31^st December 2020 and by 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 31^st December 2020 by product were as follows:

Record had 79 clients at 31^st December 2020 (30^th September 2020: 74 clients).  The significant increase in Dynamic Hedging inflows versus the prior period reflects the start of the new mandate announced on 21 September 2020.  The Multi-Product net inflows of $1.2 billion includes an increase of approximately $0.4 billion from a certain tactical bespoke mandate that is expected to be temporary in nature.  The remaining $0.8 billion inflow to Multi-Product AUME represents another separate tactical mandate, the revenue from which was previously reported as 'Other investment services income', rather than as part of AUME.  This has now been reclassified and will be reported under the Multi-Product category within net client AUME flows for the duration of the mandate.  Approximately $0.3 billion of this mandate will be more variable in nature.  Both mandates generate fees consistent with Record's other Multi-Product mandates.

Other than client flows, the factors which have had an aggregate positive impact on AUME during the quarter of +$3.7 billion were as follows:

(i)            Exchange rate movements and mandate volatility targeting:                     +$2.4bn
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.

(ii)           Movements in global stock and other markets:                                                +$1.2bn
                                                                                                                                                                      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

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 driven by positive vaccine news and a market-friendly US election outcome which improved the global economic outlook.

Record's Dynamic Macro Currency strategy which uses a mix of both discretionary and systematic investment allocations saw negative performance in the quarter, with investment performance for the three months to 31^st December 2020 of -2.68% (30^th September 2020: -0.41%).

Investment performance of the FTSE Currency FRB10 index (excess return in sterling) was positive during the three months to 31^st December 2020 at +0.61% (30^th September 2020: -0.87%).

Record's Emerging Market product investment performance was positive during the quarter and for an un-geared portfolio equated to a quarterly return of +3.48% (30^th September 2020: -2.12%). Annualised performance since inception (30^th November 2009) for an un-geared portfolio was +1.56% p.a.

Investment performance in the Multi-Strategy product that comprises the FTSE Currency FRB10, Emerging Market, Value, Momentum and Range Trading strategies was positive during the quarter.  The performance of Record's Multi-Strategy composite targeting 4% volatility equated to a quarterly return of +3.64% (30^th September 2020: -2.20%).  Annualised performance since inception (31^st July 2012) for the portfolio was +0.75% p.a.

4.            AVERAGE FEE RATES AND PERFORMANCE FEES

During the quarter to 31^st December 2020, fee rates remained broadly unchanged from the previous quarter.  No performance fees were earned in the quarter.

Record will announce its fourth quarter trading update on 23^rd April 2021 and its financial results for the year ending 31^st March 2021 on 17^th June 2021.

-Ends -

For further information, please contact:

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

Leslie Hill, Chief Executive Officer

Steve Cullen, Chief Finance Officer

Buchanan                                                                                                                   Tel: +44 (0) 20 7466 5000

Giles Stewart                                                                                                             record@buchanan.uk.com 

Henry Wilson

George Beale

Notes to Editors

Record plc

Founded in 1983, Record is an independent, specialist currency manager and has established a market 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 3^rd 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.