23 July 2021

RECORD PLC

('Record' or the 'Company')

FIRST QUARTER TRADING UPDATE

5% AUME Growth; Record EM Sustainable Finance Fund Launch Provides Further Diversification and Margin Improvement

Record plc, the specialist currency and derivatives manager, is pleased to announce a positive trading update for the three months ended 30 June 2021 ("Q1-2022" or the "period").

Highlights

·    Assets under management equivalents ("AUME") expressed in US dollars grew by 5% over the quarter to US$84.5 billion.

·    AUME net inflows in the quarter of US$1.8 billion split evenly between Currency for Return and Passive Hedging strategies.

·    Record EM Sustainable Finance fund successfully launched in strategic partnership with UBS Global Wealth Management; delivering product diversification and higher margins.

Leslie Hill, Chief Executive of Record plc, commented:

"Since assuming the role of CEO last year, a key objective has been the diversification of Record's business through the introduction of new and relevant investment products driven by client demand and which are able to attract higher margins.

"One way to achieve this aim is to build strategic partnerships, which aligns with our approach of building longstanding and trusted relationships with our clients. This provides us with opportunities to listen to their ideas, understand their investment concerns, and ultimately to deliver new products and solutions to a broader audience and at higher margins. The successful launch of the Record Emerging Market Sustainable Finance Fund on 29 June, alongside UBS Wealth Management, clearly illustrates the benefits of this approach and combines our currency and derivatives expertise with the differentiated investment knowledge and distribution capability of UBS.  The fund launch marks a first important milestone in delivering on our plan to create more products in collaboration with key clients and partners. Of equal importance, this marks Record's first step into the sustainable investment arena, which is anticipated to be a key element of Record's future growth.

"The quarter saw another positive period in terms of AUME growth. Total net inflows of US$1.8 billion were represented by inflows into both Currency for Return and Passive Hedging of US$0.9 billion each, and were further bolstered by positive market movements of US$1.3 billion. The Currency for Return net inflow of US$0.9 billion includes the initial investment upon launch for the new fund of US$0.8 billion.

"The transition of our business continues in line with our change in strategy to support growth, with a focus on modernisation, diversification and succession.  The new financial year has started well opening with a high level of AUME enhanced this quarter by further net inflows and the new fund launch. We will continue to focus on improving both our diversification and profitability, which will be achieved by delivering new and innovative products accompanied by the enhanced efficiency and scalability of our operational systems delivered through our ongoing investment in technology."

Further Trading Analysis

1.            AUME composition

The Group's AUME as at 30 June 2021 totalled US$84.5 billion (31 March 2021: US$80.1 billion), and expressed in sterling totalled £61.2 billion (31 March 2021: £58.1 billion).  AUME increased by 5% between 31 March 2021 and 30 June 2021 when expressed in both US dollars and sterling.  The composition of AUME by product was as follows:

2.            AUME Movement

Net client AUME flows in the three months to 30 June 2021 by product were as follows:

Record had 87 clients at 30 June 2021 (31 March 2021: 89 clients). The net decrease in clients in the quarter is linked to the final outflows from the closure of two legacy funds for which individual AUME amounts were negligible.

Other than client flows, the factors which have had an aggregate positive impact on AUME during the quarter of +$2.6 billion were as follows:

(i)            Exchange rate movements and mandate volatility targeting:                     +$1.3bn
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:                                                +$1.3bn
                                                                                                                                                                      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.  The value added in the quarter for a representative account was -0.44% (31 March 2021: 1.06%), with annualised performance since inception (April 2009) of 0.41%.

For Tenor Managed Passive Hedging clients returns were negative during the quarter, with the respective benchmark hedging structures outperforming the product. The FX forward market has been relatively stable in terms of pricing over the quarter, given the continued high level of intervention from central banks globally. Low volatility as a result of significant injections of US dollar liquidity into financial markets reduced the broader opportunity set during the period.  The value added in the quarter relative to a fixed tenor benchmark for a Tenor Managed Passive Hedging programme for a representative account was -0.004% (31 March 2021: 0.004%), with annualised performance since inception (October 2014) of 0.08% 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 0.88% (31 March 2021: 1.12%).  Annualised performance since inception (31 July 2012) for the portfolio was 0.93% p.a.

4.            AVERAGE FEE RATES AND PERFORMANCE FEES

During Q1-2022, fee rates remained broadly unchanged from the previous quarter.  Revenue generated following the launch of the Record EM Sustainable Finance fund on 29 June will be reported under the Currency for Return product category, and consequently the average fee rate for this category will increase.  No performance fees were earned in the quarter.

Record will announce its second quarter trading update on 22 October 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

Victoria Hayns

Henry Wilson

George Beale

Notes to Editors

Record plc

Founded in 1983, Record is an independent, market-leading specialist currency and derivatives manager with over 38 years of experience which has allowed us to develop a deep and fundamental understanding of the risk and reward opportunities within those markets.

Our range of products typically assist our clients in achieving either their risk-reduction (via Currency Hedging) or return-seeking (via Currency for Return) objectives.

Our clients are largely institutions, including pension funds, charities, foundations, endowments, and family offices, as well as other asset managers and corporates.

Record (LSE: REC) was admitted to trading on the London Stock Exchange on 3 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.