Assets across advised platforms dropped in the first quarter of 2026 due to the conflict in the Middle East.
The latest data from the lang cat shows that despite strong underlying flows, adviser platform assets dropped 0.26% in the three months to March 31.
However, outflows recovered after a record high last quarter caused by rumours of what the Chancellor may announce in the Budget. The lang cat called the 11.4% drop this quarter “welcome respite” for platforms, despite being the second highest on record.
There were new business flows of £26.78 billion, marking another record quarter for gross sales onto advised platforms.
As a result of continued strong gross sales and falling outflows, advised platform net sales recovered to £7.35 billion in the first quarter, up 77.13% compared to the fourth quarter of 2025 and 37.12% year-on-year.
Rich Mayor, senior analyst at the lang cat, said: “This quarter feels familiar to the first quarter of 2025 in terms of asset growth. 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.”
The lang cat said Quilter, Aviva and Transact continue to dominate flows, with Quilter setting new records for both gross and net sales.
Looking ahead, the lang cat said platforms face a “complicated picture”, navigating both political uncertainty, revised interest rate and inflation predictions, as well as incoming changes to pensions and inheritance tax.
Mayor said: “Net sales recovered well in a time where markets struggled, a reverse trend to much of what we’ve seen in recent years in the advised platform market. But how the rest of the year might develop is as uncertain as you could have reasonably predicted at the start of the year.
“The proposed changes to IHT and pensions was the biggest surprise in November, and we’ve researched advice professionals to see how they’re thinking of mitigating the changes. Increasing use of onshore bonds, as well as trust planning, and utilising gifting more are the most popular plans on the table at the moment, and all affect platforms.
“For platforms, we think this means that the more traditional elements of a proposition like product and investment range, as well as technical support and trust options are likely to play a key role in success.”
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