Transact assets break £50bn mark

Transact assets break £50bn mark

Transact has posted its highest ever third quarter gross inflows, seeing its assets pass the £50bn mark for the first time.

In its results for the three months to June 30, out yesterday (July 20), the firm posted gross inflows of £2bn, taking inflows for the year to date to £5.7bn.

However, outflows for the quarter rose slightly to £657m, from £428m, leaving net inflows at £1.3m, compared with £1.4bn in the previous quarter.

Market movements added a further £2.1bn, meaning funds under direction reached £50bn in the period, an increase of 7.2 per cent over the quarter.

Comparatively, the FTSE all share index rose by 4.8 per cent and the MSCI world index rose by 7.2 per cent in the period.

Alex Scott, chief executive of Transact’s parent company IntegraFin, said: “With our highest ever third quarter gross inflows, the strong growth seen in the first half of our financial year has continued. 

“Outflows remained in line with the previous quarter, resulting in record third quarter net inflows. A comparison with the same period from the prior year is distorted by the impact of COVID-19, however, in comparison to the third quarter 2019, net flows have increased at an annual rate of 30 per cent.

"Equity markets remained positive over the quarter and this also contributed to FUD passing £50bn for the first time.

“We continue to invest in high levels of service to drive top-line growth and to maximise customer experience. As previously stated, the full year numbers will include elements of non-recurring cost which we signalled at the half year.”

The platform had reported its highest-ever quarterly inflows in the second quarter, as net inflows hit £1.4bn.

Earlier this year, Transact’s parent company IntegraFin acquired financial planning software provider Time4Advice for an undisclosed sum.

Transact said the deal would help it improve its adviser back office processes as well as its platform.

The firm also said the acquisition would help it assist advisers as they continue with their digital transformation, though Time4Advice will remain a separate legal entity and keep its own brand.