Intelligent currency management

Record plc

Annual Report 2020

Our purpose to deliver innovative, thought leading and practical solutions to the needs of currency market users and investors, while maintaining independence and integrity.

Contents

Strategic report

Financial statements

pages 1 to 49

pages 90 to 130

Highlights

1

Independent auditor's report

91

About us

2

Financial statements

96

Chairman's statement

4

Notes to the financial statements

103

Chief Executive Officer's statement

6

Additional information

Business model

10

pages 131 to 132

Markets

18

Strategic priorities and goals

22

Five year summary

131

Key performance indicators

26

Information for shareholders

131

Operating review

30

Definitions

132

Financial review

34

Risk management

38

Corporate social responsibility

46

Governance

pages 50 to 89

Corporate governance

50

Chairman's introduction

51

Board of Directors

52

Corporate governance report

54

Nomination Committee report

62

Audit and Risk Committee report

64

Remuneration report

70

Directors' report

86

Directors' responsibilities statement

89

Highlights

Assets Under Management

Earnings per share

Equivalents1 ("AUME")

$58.6bn

3.26p

2019: $57.3bn

2019: 3.27p

+2.3%

-0.3%

Revenue

Ordinary dividend per share

£25.6m

2.30p

2019: £25.0m

2019: 2.30p

+2.4%

0.0%

Profit before tax

Special dividend per share

£7.7m

0.41p

2019: £8.0m

2019: 0.69p

-3.2%

-40.6%

1. As a currency manager Record manages only the impact of foreign exchange and not the underlying assets, therefore its "assets under management" are notional rather than real. To distinguish this from the AUM of conventional asset managers, Record uses the concept of Assets Under Management Equivalents ("AUME") and by convention this is quoted in US dollars. AUME is an alternative performance measure and further detail on how it is defined is provided on page 132.

Record plc Annual Report 2020

1

report Strategic

Governance

statements Financial

information Additional

About us

A client-focused approach. A culture of integrity.

Strengths developed through 37 years of experience.

Who we are

We are an independent, specialist currency manager and have been since our formation in 1983. We have over 37 years of experience in currency markets which has allowed us to develop a deep and fundamental understanding of the risk and reward opportunities within those markets. Record plc has a premium listing on the Main Market of the London Stock Exchange, and is majority‑owned

by its Directors and employees.

What we do

We listen to our clients and use our years of experience and thought leadership in currency markets to develop solutions tailored to their individual currency-related needs, including robust and innovative products and market-leading service levels.

Our range of products typically assist our clients in achieving either their risk‑reduction or return-seeking objectives, or alternatively our bespoke Multi-product mandates have combined risk-reducing and return-seeking objectives.

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

Research

Experience and

know how

Innovation

Bespoke

Where we operate

Head office

Sales office

Sales office

Windsor

New York

Switzerland

North America

Europe

Rest of the World

2

Record plc Annual Report 2020

About

Business

Strategic

Key

Operating

Finance

Corporate

priorities

performance

Markets

social

us

model

review

and risk

and goals

indicators

responsibility

report Strategic

How we create value

Quality client

Technology and

Talent

experience

innovation

development

Superior service is core to our client

Over the last 37 years Record has

We aim to develop and retain a

proposition and we achieve this on

developed a leading position in its

diverse pool of talent which is key

various levels by assigning a

sector. Our knowledge of the

to delivering our "best in class"

dedicated and experienced

currency market is sustained by our

business model and ensuring the

relationship manager to oversee each

research, and results in innovative

long-term stability of the business.

client portfolio. Direct communication

products and continued process

between our operational and

enhancement whilst incorporating

administrative specialists with each

advances in technology.

client's own internal functions builds

on the general level of interaction with

the client and underpins the overall

"trusted adviser" relationship.

Governance

The Group's main geographical markets as determined

The Group's Head Office is in

Windsor, UK from where the

by the location of clients to whom services are provided,

majority of its operations are performed and controlled.

are the UK, North America and Continental Europe,

The Group also has offices in

New York and in Zürich.

in particular Switzerland. The Group also has clients

In addition to these main markets, we continue to explore

elsewhere, including Australia.

new geographical markets which we believe may offer

attractive opportunities.

72%

14%

11%

3%

AUME

AUME

AUME

AUME

$42.3bn

$8.1bn

$6.7bn

$1.5bn

Europe (excluding UK)

North America

United Kingdom

Rest of the world

statements Financial

information Additional

Record plc Annual Report 2020

3

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Record plc published this content on 17 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 June 2021 00:05:04 UTC.