Last checked at 18 Oct 2022 07:00
LEI Number: 213800CYIZKXK9PQYE87
18 October 2022
IHP Group quarterly update - Q4 of financial year 2022
Resilient Transact platform performance in spite of volatile markets
Headlines
· Highly resilient Transact platform gross inflows for the quarter of over £1.5bn, with solid net inflows during the quarter of over £0.7bn.
· Net inflows to the Transact platform for the financial year ended 30 September 2022 of £4.4bn.
· Growth of the Transact platform's adviser base - at the end of the financial year (30 September 2022) there were 7.5k advisers registered on the Transact platform (an increase of over 5% from 30 September 2021).
· At the end of the financial year (30 September 2022) there were 224.7k clients on the Transact platform (an increase of 8% from 30 September 2021).
· The average (daily) funds under direction (FUD) on the Transact platform during the financial year ended 30 September 2022 was £52.5bn. This compares with an average during the prior financial year of £47.2bn.
· Other than the cost implications from the HMRC VAT decision (RNS issued on 20 September 2022), the detailed cost guidance, which we disclosed in the Q3 market update (19 July 2022), remains unchanged.
· The development of Time4Advice's CURO 365 software remains on schedule, and is planned for release to a beta client for live testing by the end of the year.
· The Transact-BlackRock Model Portfolio Service (MPS) was launched in September 2022. This is available exclusively to Transact platform clients.
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Quarter ended 30 September 2022 |
Quarter ended 30 September 2021 |
Financial year ended 30 September 2022 |
Financial year ended 30 September 2021 |
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£m | ||||
Opening FUD | 50,300 | 50,310 | 52,112 | 41,093 |
Inflows | 1,505 | 1,967 | 7,275 | 7,695 |
Outflows | -785 | -660 | -2,873 | -2,744 |
Net Flows | 720 | 1,307 | 4,402 | 4,951 |
Market movements | -927 | 553 | -6,248 | 6,297 |
Other movements(1) | -23 | -58 | -196 | -229 |
Closing FUD | 50,070 | 52,112 | 50,070 | 52,112 |
Average daily FUD for the period (£m) | 52,217 | 51,647 | 52,544 | 47,240 |
Number of registered advisers | 7,537 | 7,161 | 7,537 | 7,161 |
Number of platform clients | 224,705 | 208,611 | 224,705 | 208,611 |
Notes:
(1) Includes fees, taxes and investment income.
Alex Scott, Chief Executive Officer, commented:
''I am very pleased with the strength of our business performance during the financial year ended 30 September 2022.
The Transact platform is utilised by clients and advisers for long term financial planning. Therefore, Transact platform outflows have remained relatively stable during the course of the year. This has contributed to our continued very high retention rate of funds under direction on the Transact platform of 94% for the financial year.
At a time of economic uncertainty, clients rely even more on the support and knowledge of their financial adviser. Our business model is centred on providing long term support for our clients and their financial advisers. We will continue to advance the development of our proprietary software, and we will train users in how to best use the extensive functionality now available. All of this will enable our clients, with their advisers, to stay on track with their long term financial plans.
We are mindful of the difficult economic environment and the significant volatility in asset markets, however we expect the performance of the Transact platform to remain robust during the forthcoming financial year, with new clients and advisers joining, and continued resilient flows onto the Transact platform.''
Historical information
£m | Q1 FY21
| Q2 FY21
| Q3 FY21
| Q4 FY21
| Q1 FY22
| Q2 FY22
| Q3 FY22
| Q4 FY22
|
Opening FUD | 41,093 | 44,824 | 46,929 | 50,310 | 52,112 | 54,539 | 53,500 | 50,300 |
Inflows | 1,581 | 2,153 | 1,994 | 1,967 | 1,976 | 2,092 | 1,703 | 1,505 |
Outflows | -741 | -686 | -657 | -660 | -688 | -697 | -703 | -785 |
Net Flows | 840 | 1,467 | 1,337 | 1,307 | 1,288 | 1,395 | 1,000 | 720 |
Market movements | 2,938 | 694 | 2,112 | 553 | 1,207 | -2,376 | -4,152 | -927 |
Other movements(1) | -47 | -56 | -68 | -59 | -68 | -58 | -48 | -23 |
Closing FUD | 44,824 | 46,929 | 50,310 | 52,112 | 54,539 | 53,500 | 50,300 | 50,070 |
Average daily FUD for the period (£m)
| 42,905 | 45,873 | 48,677 | 51,647 | 53,514 | 52,551 | 51,889 | 52,217 |
Number of registered advisers | 6,836 | 6,962 | 7,056 | 7,161 | 7,278 | 7,356 | 7,469 | 7,537 |
Number of platform clients | 194,857 | 201,104 | 205,532 | 208,611 | 213,178 | 218,787 | 221,992 | 224,705 |
Notes:
(1) Includes fees, taxes and investment income.
Enquiries
Investors |
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Luke Carrivick, IHP Head of Investor Relations | +44 020 7608 5463 | |
Media |
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Lansons: Tony Langham Lansons: Maddy Morgan-Williams | +44 (0)7979692287 +44 (0)7947364578 |
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