IntegraFin Holdings, the parent company of adviser platform Transact, has reported a 1.9% drop in funds under direction in its second quarter as global markets took a tumble.

Net inflows for the quarter at £1.4bn were 4% lower than the same quarter in the financial year 2021 (£1.47bn).

The company said despite the drops its net inflows for the first half of its 2022 financial year were the “best ever” at £2.7bn - up 16% on the same period in 2021.

Funds were hit by the fall in equity prices in markets around the world with the company citing the 3.8% fall in the MSCS World Index (Large & Mid Cap) over the same period.

Despite volatile markets in the period leading up to and after the Russian invasion of Ukraine, the company saw record inflows for H1 of financial year 2022, surpassing £4bn for the first time. 

Funds under Direction were £53.5bn as at 31 March, a fall of 1.9% over the quarter. 

Source: Integrafin (1) Includes fees, taxes and investment income. 

CEO Alex Scott said the economic outlook was “challenging” but the company continued to invest in the business.

He said: “I am pleased to report another strong quarter of inflows on to our platform. 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 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 financial year 2021 (£2.31bn). 

“Our net inflows for the quarter (£1.4bn) were 4% lower than the same quarter in 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. 

“Despite strong net inflows, our FUD reduced overall to £53.5bn. This is the result of unexpected, and continuing, geo-political 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 market leading proprietary software for the Transact platform and the Time4Advice adviser back office system, in order to deliver the high quality service standards for which we are renowned. We look forward to reporting our half year results on 26 May 2022.”