23rd Oct 2018 13:03
LONDON (Alliance News) - IntegraFin Holdings PLC on Tuesday said Transact's funds under direction at the end of its financial year grew significantly, a result of strong inflows and the completion of a lock-up period for certain shareholders.
Shares in IntegraFin were down 6.4% at 292.00 pence on Tuesday. Peel Hunt issued a broker note on IntegraFin, upgrading its rating to Buy from Add.
IntegraFin provides UK investment platform Transact. As at September 30, the end of its financial year, Transact's funds under direction stood at GBP33.11 billion, up 3.9% over the quarter and 18% over its prior year end.
Inflows during the quarter totalled GBP1.51 billion, up from GBP1.45 billion in the same quarter of 2017. Outflows increased to GBP537 million from GBP414 million, resulting in a reduction in net flows to GBP979 million from GBP1.04 billion.
In the year ended September 30, inflows totalled GBP5.96 billion versus GBP5.30 billion the year before. Outflows totalled GBP1.86 billion versus GBP1.64 billion. This produced overall net flows for the year of GBP4.09 billion, up from GBP3.66 billion.
Outflows decreased as a proportion of opening funds under direction, on an annual basis, to 6.7% from 7.2%, IntegraFin noted.
A lock-up period for non-management principal selling shareholders completed in August. As such, significant transactions in IntegraFin shares took place on the Transact platform after that time. These produced a GBP58 million increase in net inflows post-completion. Removing these transactions, annual inflows were up 10% year-on-year and outflows amounted to 6.6% of opening funds under direction.
The annual contribution to funds from market movements came to GBP1.14 billion, accounting for 3.4% of funds. This was below the GBP1.42 billion market movement contribution the year before, which equated to 5.1% of funds.
This was largely accounted for by a USD1.05 billion loss on market movements in the second quarter of Integrafin's year, though this loss was offset by a GBP1.14 billion gain on market movements in the third quarter.
Market movements contributed GBP316 million in the quarter, up from GBP138 million in the year-ago period.
In the three months to September, the FTSE All Share Index fell 1.8%, while the MSCI World Index increased 5.8%.
On an annual basis, Other Movements - which includes investment income, fees, and taxes - produced a GBP46 million loss for the year, reversing a GBP153 million gain on Other Movements the year before.
"We report another positive funds under direction update in what is becoming an increasingly challenging market environment. Net inflows for the financial year were 12% higher than last year and outflows have decreased as a proportion of opening funds under direction," said IntegraFin Chief Executive Ian Taylor.
IntegraFin's annual results are expected to be announced on December 13.
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