17 JULY 2020

RECORD PLC
FIRST QUARTER TRADING UPDATE

Growth in AUME of 8%, enhancement of distribution capability and the launch of Record's Dynamic Macro Strategy

Record plc ("Record" or "the Company"), the specialist currency manager, today announces a trading update for the three months ended 30^th June 2020.

Highlights

·    Assets under management equivalents ("AUME") expressed in US dollars grew by 8% over the quarter to $63.3 billion as at 30^th June 2020

·  Management fee rates remained broadly unchanged during the quarter, notwithstanding sustained fee pressure linked to Passive Hedging

·    Appointment of third party distributor to expand US distribution capability

·    New business initiatives momentum with post quarter end launch of Record's Dynamic Macro Strategy with plans advancing for further product launches

Chief Executive of Record plc, Leslie Hill, commented:

"Following a challenging preceding quarter to 31^st March linked to the impact of covid-19, Record's AUME increased by 8% in the quarter, including favourable underlying market movements of $3.6 billion.

"One of our strategic priorities for the current financial year is to enhance the capabilities of our marketing infrastructure to facilitate our accelerated growth plans.  During the quarter, the Group appointed KPG Capital Partners LLC, a US-based third party distributor with broad institutional reach across North America, which will enhance Record's existing distribution capabilities in a key market.

"While competition and fee pressure linked to our Passive Hedging products persists, we continue to respond by enhancing our products and service offerings.  We have diversified our product range with the launch of a new multi-asset offering, Dynamic Macro Strategy and have made good progress in developing our market-first, innovative Impact/ESG bond offering, although the ultimate timing of any potential launch remains uncertain.

"Record continues to illustrate its resilience and to operate effectively through the crisis, maintaining the strong relationships with its high quality, institutional clients by providing the highest levels of service and communication.  This is testament to the strong commitment and capability of our people, and gives me confidence that we can succeed in achieving our goal of continued growth that I outlined at our recent full year results."

Further Trading Analysis

1.         AUME composition

The Group's AUME expressed in US dollars as at 30^th June 2020 totalled $63.3 billion (31^st March 2020 totalled $58.6 billion), and expressed in sterling totalled £51.2 billion (31^st March 2020: £47.3 billion).  AUME expressed in US dollars increased by 8% between 31^st March 2020 and 30^th June 2020 and by 8% 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 30^th June 2020 by product were as follows:

Record had 72 clients at 30^th June 2020 (31^st March 2020: 72 clients).

Other than client flows, the factors which have had an aggregate impact on AUME during the quarter of +$5.2 billion were as follows:

(i)         Exchange rate movements and mandate volatility targeting:   +$1.6bn
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:                          +$3.6bn
                                                                                                                             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.

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 30^th June 2020 of -3.39% (three months to 31^st March 2020 was +6.92% (restated from +6.84%)).

Record's return-seeking strategies using more systematic investment allocations saw positive performance in the quarter.

Investment performance of the FTSE Currency FRB10 index (excess return in sterling) during the three months to 30^th June 2020 was +2.13% (three months to 31^st March 2020 was -3.98%).

Record's Emerging Market product investment performance was positive during the quarter and for an un-geared portfolio equated to a quarterly return of +3.67% (three months to 31^st March 2020 return of -8.76%).  Annualised performance since inception (30^th November 2009) for an un-geared portfolio was +1.51% 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 +0.35% (three months to 31^st March 2020: return of -5.64%).  Annualised performance since inception (31^st July 2012) for the portfolio was +0.62% p.a.

4.         AVERAGE FEE RATES AND PERFORMANCE FEES

During the quarter to 30^th June 2020, fee rates remained broadly unchanged from the previous quarter.  No performance fees were earned in the quarter.

Since quarter end, one Passive Hedging client has elected to change from a management fee only to a lower management fee with a performance-related fee, effective from 1^st July 2020.  Performance fees earned under this change will be disclosed in quarterly Trading Updates in the ordinary course.

Record will announce its second quarter trading update on 19^th October 2020.

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 5163

Giles Stewart                                                                           record@buchanan.uk.com

Victoria Hayns

Henry Wilson

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.