Analysts buoyant despite drop in Transact assets

Analysts buoyant despite drop in Transact assets

Negative market movements pushed Transact’s funds under direction down in value by 4 per cent, despite net inflows.

In a results statement released today (December 14), IntegraFin, the platform’s parent company, said net inflows for Transact were £4.4bn, with gross inflows of £7.3bn.

However, funds under direction ended the year down 4 per cent at £50bn.

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The company’s underlying profits were slightly head of analysts’ expectations, rising 1 per cent to £65.8mn, with the consensus forecast at £63mn.

The platform’s adviser base rose 5 per cent to 7,500 registered advisers, and the number of clients on the platform rose 8 per cent to 225,000.

IntegraFin’s total revenue rose 8 per cent to £133.6mn, with pre-tax profit dropping by just under £10mn to £54.3mn.

Alex Scott, chief executive of IntegraFin, said: “Looking ahead, I believe that the outlook remains positive for the group, with demand for independent financial advice expected to remain strong.”

He added that prior experience has shown that during periods of economic uncertainty new clients will continue to seek independent financial advice to facilitate the setup and implementation of their financial plans. 

“In respect of our current clients, we expect they will continue to rely on the support and knowledge provided by their financial adviser.”

Scott said the company is mindful of the difficult economic environment. 

“However, we expect the performance of IntegraFin to remain resilient during financial year 2023," he added.

In a note released today, analysts at Peel Hunt said although market conditions have been challenging and volatile, IntegraFin still delivers strong returns.

“Importantly, Transact has continued to attract new advisers…this is a key indicator for future flows,” the note said.

MPS launch

Earlier this year, Transact announced it was working with BlackRock in a deal that saw the asset manager provide and manage the platform's own model portfolio service.

The MPS deal was exclusive, meaning Transact is the only UK platform to host this MPS.

It sits on Blackrock’s Aladdin investment management system, which it also uses to power products for asset managers and pension schemes, and there will be seven model portfolios in total.

Ian Taylor

Scott closed the results statement with a tribute to Ian Taylor, Transact’s co-founder, who passed away in October.

“Ian was an incredible individual who, with Mike Howard, set out to completely transform the delivery of financial plans in the UK market…his focus was always to deliver the best outcome for "Mrs Miggins"," Scott said.

“Ian was always happy to share his thoughts and experience and equally willing to listen to others, but never diverted from his principles.  

“We continue to drive the business on those principles: "Do the right thing" and "Stick to our knitting".”