Transact parent company Integrafin reported its fund under direction (FUD) grew 15.7% year-on-year, despite an uncertain backdrop in Q1 2019.
In the three months to 31 March 2019, FUD totalled £34.4bn, up from £29.7bn during the same period last year. Over the quarter, this represented an increase of 8.7%.
Bella Caridade-Ferreira, CEO at Fundscape, said the results were still positive. “Given the uncertain backdrop and the intense focus on Brexit over the quarter, these results are excellent. I would imagine that Nucleus and AJ Bell will be similarly upbeat, although I don’t expect them to be as strong as Transact’s.”
In the update this morning, Integrafin said the FTSE All Share Index rose by 8.3% and the MSCI World Index rose by 9.4%.
Diversified assets
Stuart Duncan, analyst at Peel Hunt, said in a note: “Rising asset values over the quarter helped push FUD up by 9% to £34.4bn. Flows were slower than the comparative period at £926m, but this reflects short-term sentiment rather than a change in the longer term prognosis.”
Duncan said Integrafin’s diverse exposure to asset classes in its funds under management provided some protection.
Caridade-Ferreira added: “Transact doesn’t have proprietary funds under management. It hosts funds and so assets will be well diversified because advisers select funds for their clients. Some more vertically integrated platforms may be less diversified as assets are concentrated in fewer funds.”
Ian Taylor (pictured), CEO at Integrafin, said: “I am pleased to report that funds under direction have shown strong growth, reflecting positive net flow growth in the quarter and the upward movements in world equity markets. Political and economic uncertainties have not gone away, however, and still give rise to unhelpful background noise.”
