Allfunds: Net Flows May Have Reached Inflection Point
Allfunds reported a first-quarter trading update, posting a 7% increase in assets under administration versus the same period a year ago driven entirely by market performance. Positively, net flows came in nearly flat with Allfunds pointing toward a potential reversal of recent downward trends. However, the platform did see continued outflows from existing clients, which were compensated by new clients. Allfunds sees particularly strong outflows from clients in Central Europe, with the rest of Europe and the world mostly contributing positively. The development is an improvement over last year. Revenue grew 18%, primarily on higher net treasury income, which benefited from higher cash volumes. We maintain our EUR 7.20 per-share fair value estimate and narrow moat rating.