Allfunds Earnings: Assets Under Administration Growth Ahead of Market

Allfunds closed 2023 with assets under administration up 7%, a good performance given 4% market growth. Growth came in the form of market performance (6%) and flows from new clients (4%) Allfunds onboarded. Existing clients withdrew funds on a net basis (4%), driven predominantly by higher interest rates and rising opportunity costs. However, higher interest rates also benefited Allfunds as the fund platform booked EUR 76.4 million in net treasury income, more than offsetting a weaker margin on platform volumes compared with a year ago. We maintain our EUR 7.20 per share fair value estimate and narrow moat rating.