Transact reports £4bn inflows in H1 as overall funds drop almost 2%

Jenna Brown
clock • 2 min read
Transact reports £4bn inflows in H1 as overall funds drop almost 2%

Platform Transact has reported record inflows for H1 of the 2022 financial year, surpassing £4bn of for the first time, however, funds under direction reduced overall.

In a trading update released on Wednesday (20 April) it also said its net inflows for H1 were its best ever at £2.7bn, an increase of 16% on the comparative period in 2021.

The platform added its funds under direction were £53.5bn as at 31 March 2022, representing a decrease of 1.9% over the quarter. It pointed out that over the same period, the MSCI World Index (Large & Mid Cap) fell by 3.8%.  

Chief executive Alex Scott said: "Our gross inflows for the first half-year of the financial year were our best ever at £4.07bn, with outflows remaining low and lower than the first half of the financial year 2021. This resulted in a 16% increase in net inflows for the first half of the financial year 2022 (£2.68bn), compared to the first half of the financial year 2021 (£2.31bn).

 "Our net inflows for the quarter (£1.40bn) were 4% lower than the same quarter in the financial year 2021 (£1.47bn). However, the net flows for this quarter were impacted by the timing of Easter and the resultant number of days prior to tax year-end in April 2022 when compared to the prior year.

"Overall, these results demonstrate the resilience of our platform business model through different market conditions."

He added: "Despite strong net inflows, our FUD reduced overall to £53.50bn. This is the result of unexpected, and continuing, geopolitical events impacting stock markets. This has a corresponding impact on our revenue.

"We are mindful of the challenging economic outlook and the impact of inflationary pressures on our cost base.

"However, we continue to invest in our people and to develop our proprietary software for the Transact platform and the Time4Advice adviser back-office system."

Transact will report its half-year results on 26 May.