While the figure represents a sharp drop on the previous quarter it was 1.7% up year on year due to strong growth in 2019.

The company pointed out that over the first quarter the FTSE All Share Index fell by 26% and the MSCI World Index fell by 16.1%.

Alex Scott, chief executive, said: "I can report that in our second quarter (of 2019) we achieved our highest ever quarterly inflows, both gross and net. This follows on from our highest ever first quarter gross inflows in the previous quarter.

"Despite the substantial, downward movements in world equity markets since mid-February, this strong inflow growth has contributed to a small increase in FUD over the year.

“My primary concerns are, of course, the welfare of our staff and the maintenance of services to clients. Our staff are currently working from home whilst providing as good a quality service as possible to clients and their advisers. There have been costs involved in implementing these new arrangements - but these should not have a meaningfully detrimental effect on the business or the delivery of Transact.

He said the outlook for the second half of the year would depend on the effects of measures to combat Covid-19 and their impact on equity markets, FUD and flows.

Historical Flow and FUD data by quarter 

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

The company expects to announce half year results on 21 May.