Integrafin, the company that owns the Transact platform, has reported a 14 per cent growth in funds under administration year on year at the end of June 2019 as it expects costs to come down.
Funds under administration at Transact were £36.352bn at the end of June, compared with £31.884bn a year ago, and £34bn at the start of the quarter.
Positive market movements contributed £1.1bn of the rise, while net inflows were £796m. The net inflows number was lower than for the same period in 2018 however, when £959m came through the door.
The company’s chief executive Ian Taylor said: "I am pleased to report again that, despite persistent political and economic uncertainties, funds under direction have grown well.
"Net flows, although lower, proved resilient and market growth in the quarter contributed to the overall increase.
"The business is well positioned as we continue to grow assets and pleasingly our costs are modestly below our initial expectations for the current year."
Higher funds under administration combined with lower costs are likely to mean higher profits.
Integrafin’s share price has risen from £2.69 to £3.83 since October 2018, and the company has a market cap today (23 July) of £1.27bn.
For the six months to the end of March 2019, the company reported an operating profit of £22m.
The Transact platform has been popular among advisers.
Research out last year showed Transact attracted more net assets from advisers than any other platform in the quarter to 30 September when it attracted £979m, putting it £3m ahead of Standard Life and £19m ahead of AJ Bell.
Assets under administration on the platform had already risen by 15.6 per cent in the six months to the end of March 2019 following net inflows of £1.81bn.
david.thorpe@ft.com
