Advised platform AUM fall despite record-high gross sales in Q1

Assets under management (AUM) across advised platforms fell by 0.26 per cent in the first quarter of 2026, despite strong underlying flows, according to The Lang Cat.

The consultancy primarily attributed the decline in AUM to the conflict in Iran and wider Middle East.

Despite the fall, new business flows hit record-high gross sales of £26.78bn in Q1 2026, with record new flows into ISAs adding to post-Budget reinvestment and the continued effect of IFA consolidation.

Furthermore, outflows dropped following a record-high the previous quarter, falling by 11.14 per cent, although this was still the second highest on record.

Due to continued strong gross sales and falling outflows, advised platform net sales rose by 77.13 per cent from the previous quarter to £7.35bn.

Quilter, Aviva, and Transact continued to dominate flows, with Quilter again breaking records for both gross and net sales, while 7IM ranked fourth for net sales for the first time.

“This quarter feels familiar to the first quarter of 2025 in terms of asset growth,” commented The Lang Cat senior analyst, Rich Mayor.

“This time last year, uncertainty around Liberation Day wiped off any growth in AUM, and this year the conflict in the Middle East has had a similar effect.

“The main difference from a market perspective is that Liberation Day effectively boiled down to negotiating numbers on a chart, and the markets recovered relatively quickly. The conflict in the Middle East is far more complex.

“More locally, the uncertainty around the May elections and the current government, combined with revised interest rate and inflation predictions make an even more complicated picture for platforms to navigate, ahead of big changes to pensions and inheritance tax among others.”

---