Transact reaches record Funds Under Direction and announces single wrapper fee for family linked pensions

It has been another outstanding year for Transact against a backdrop of worldwide economic pressures. For the year ended September 2024:

• Funds Under Direction (FUD) was £64.1bn on 30 September 2024 and the average for the year was £59.6bn (an 11% increase on FY23).
• Gross inflows were £8.1bn and net inflows were £2.5bn.
• Clients using the Transact platform grew 2% from c.230k to c.235k.

Today Transact announces:

• Another charge reduction, with a single pension wrapper fee for clients in a linked family group, from 1 April 2025.*
• The quarterly £20 pension fee can be split equally across a linked group or allocated to an individual portfolio.
• The single wrapper fee applies to Personal Pension and SIPP wrappers separately.
• A reduction set to benefit new clients and up to 45,000 existing clients with pensions currently in linked family groups.

Which means:

• Simplification of charges for clients.
• Better value for lower value portfolios which could have no pension wrapper fee.
• Consistency from the leading** UK adviser only platform: This is the latest in a long track record of Transact reducing charges for clients with eighteen charge reductions in 17 years.

We continue to pay all interest earned on pooled cash to clients and pay market leading rates as we actively manage the cash across a range of mainstream UK banks. Around a quarter of clients using the platform benefit from the complete offset of their platform annual charge from the cash interest earned. Transact previously removed buy commission for all clients in 2024, and does not charge wrapper fees on junior client portfolios (in linked family groups aged under 18).

Jonathan Gunby, Transact Chief Executive Officer, commented: “We are pleased with our annual results and thank advisers for their continued support. We are very well placed to support advisers and customers as they adjust plans to reflect the changes announced in the budget. Our ability to manage software change, manufacture all of our own wrappers and provide technical support remains at the core of our proposition.”

Tom Dunbar, Transact Deputy Chief Executive Officer, commented: ‘‘This simplification of the pension wrapper fee will help drive further value across client portfolios. Advisers can choose which client is charged the pension wrapper fee in linked family groups. Our improvements with platform digitalisation have continued to help us reduce our charges. We intend to continue to assess opportunities to use our scale to benefit clients. Our approach to passing all interest earned on pooled cash back to clients continues to be well received by our supporting advisers. While net flows continue to be a challenge across the industry, we are delighted to consistently rank among the top few platforms and maintain a market share of net flows of over 20%.”

Notes

* Under the current charging structure, each client incurs a wrapper fee for a personal pension and/or SIPP.

** Transact has been rated the UK’s top investment platform for overall satisfaction for 15 consecutive years (2010-2024 inclusive) in the Investment Trends UK Adviser Technology & Business Report (among primary users).