23 April 2021

RECORD PLC

('Record' or the 'Company')

FOURTH QUARTER TRADING UPDATE

Growth in AUME of 37% for the year, including net inflows of US$9.7 billion

Record plc, the specialist currency and derivatives manager, today announces a trading update for the three months ended 31 March 2021 ('Q4-2021' or the 'period').

FY-2021 Operational Highlights

·    Assets under management equivalents ('AUME') grew by 37% for the 12 months to 31 March 2021 ('FY-2021') to US$80.1 billion.

·    Client numbers grew by +17 (24%) to 89 in FY-2021.

·    Diversified AUME net inflows in the year of US$2.1 billion into Passive Hedging, and across our higher-margin Dynamic Hedging (US$6.6 billion) and Multi-Product (US$1.0 billion) strategies.

·    New EM Sustainable Finance fund in the final stages of development and expected to launch in the current quarter, further diversifying Record's product offering and revenue streams.

Q4-2021 Operational Highlights

·    AUME grew by 7% over the quarter to US$80.1 billion as at 31 March 2021.

·    Net AUME inflows of US$4.9 billion in the quarter.

·    Client numbers increased by +10 over the quarter to 89.

·    Performance fees of £0.1 million were earned in the quarter.

Leslie Hill, Chief Executive of Record plc, commented:

"Our business has continued to grow and evolve in line with our strategy of accelerated growth, planning for generational change and adding value for our stakeholders.

"I am pleased to report Record's highest ever AUME, which ended the year 37% higher than last year at US$80.1 billion, including 12-month net inflows of US$9.7 billion assisted by positive movements in both markets and exchange rates of US$8.4 billion and US$3.4 billion respectively. Whilst the growth to date has broadly been across our core suite of currency products and services, inflows into our higher-margin products including Dynamic Hedging and Multi-Product have changed the revenue mix, reducing the dominance of our lower-margin Passive Hedging products over which we expect to see continued fee pressure in the future. Rationalisation of our products continues where we see little or no prospect of client demand, and consequently both our Dynamic Macro Currency strategy and our Global Macro strategy were closed in the quarter to focus those resources in areas where we anticipate greater opportunities for future growth.

"Good progress has been made on developing the new EM Sustainable Finance fund, which we now expect to launch in the current quarter, slightly later than originally planned, with an initial size anticipated to be between USD 200 million and USD 500 million.  This product has been developed in collaboration with one of the largest wealth managers in Switzerland, and offers higher margins, product diversification benefits and underscores our capabilities in the fast-growing sector of ESG and sustainable investment, an area of our business that we aim to grow and develop going forward.

"Our talented team of employees also continues to evolve.  We have made progress in our plans for succession during the quarter with the recent appointment of our new CIO, Dmitri Tikhonov, as well as with changes to bolster our client-facing and technology teams during the year. We will continue our focus on ensuring the well-being of our greatest asset, our employees, as well as on our continued operational resilience as proven over the last 12 months.

"Our business continues its transition in terms of its modernisation and growth.  Looking ahead, we believe digital technology is transforming our industry and will provide opportunities for business growth and diversification, and we are committed to ensuring this opportunity is grasped with both hands.  We are well positioned with a robust balance sheet, long-standing and strong client relationships, and an excellent team.  Both our core and new product offerings give a strong platform for revenue growth, and combined with our innovation and the expected scalability, efficiencies and opportunities afforded through our adoption of new technology we expect to see the financial benefits of these more fully in the current financial year."

Further Trading Analysis

1.            AUME composition

The Group's AUME as at 31 March 2021 totalled US$80.1 billion (31 December 2020: US$74.6 billion), and expressed in sterling totalled £58.1 billion (31 December 2020: £54.6 billion).  AUME increased by 7% between 31 December 2020 and 31 March 2021 and by 6% 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 March 2021 by product were as follows:

Record had 89 clients at 31 March 2021 (31 December 2020: 79 clients).

Other than client flows, the factors which have had an aggregate positive impact on AUME during the quarter of +$0.6 billion were as follows:

(i)            Exchange rate movements and mandate volatility targeting:                      -$2.5bn
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:                                                +$3.1bn
                                                                                                                                                                      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 positive as the US dollar appreciated versus the weighted basket of hedged currencies, driven by a positive US vaccine outlook and expectations of fiscal stimulus which supported treasury yields and the US dollar.  The value added in the quarter for a representative account was 1.06% (31 December 2020: -0.64%), with annualised performance since inception (April 2009) of 0.45%.

For Tenor Managed Passive Hedging clients returns were positive during the quarter, owing to optimised FX hedge tenor selections relative to client benchmarks. Hedging structures were actively managed, such that clients benefitted from these preferred duration profiles. The FX forward market has been relatively stable in terms of pricing over the quarter, given a high level of intervention from central banks globally.  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 December 2020: 0.03%), 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 1.12% (31 December 2020: 3.64%).  Annualised performance since inception (31 July 2012) for the portfolio was 0.86% p.a.

4.            AVERAGE FEE RATES AND PERFORMANCE FEES

During Q4-2021, fee rates remained broadly unchanged from the previous quarter.  Performance fees of £0.1 million were earned in the quarter.

Record will announce its FY-2021 results on 17 June 2021 and its Q1-2022 trading update on 23 July 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, specialist currency and derivatives 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 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.