UK Savings Market "UK Fund Flow Flash: May fund flows up 2% yoy" Ahmed

Research evidence excerpt

UK Savings Market "UK Fund Flow Flash: May fund flows up 2% yoy" Ahmed

Global Research

2 July 2026ab

UK Savings Market Equities

Europe including UKUK Fund Flow Flash: May fund flows up 2% yoy

Insurance, Life

Nasib Ahmed, FIA

Investment Association UK fund flow data for May 2026 Analyst

May gross flows reported by the IA were up +2% yoy, an appreciation following April's nasib-za.ahmed@ubs.com

-3% decrease (see here). The 2QTD (April and May) IA data indicates -1% yoy +44-20-7568 8231

deterioration overall for the two months of 2Q. This appears to be driven by Other Michael Christelis, FIA CFA

UK intermediaries including IFAs (flows down -22% yoy 2QTD) and Discretionary Analyst

Manager (flows down -13% yoy 2QTD). As such, we believe that gross flow growth for michael.christelis@ubs.com

SJP will remain muted over 2Q26. We summarise key debates we expect to take centre +27-11-322 7320

stage for SJP at 1H26 results on 29 July below. Haley Tam

Analyst

SJP remains cheap; however, key debates remain at 1H26 results haley.tam@ubs.com

+44-20-7567 6176

SJP trades at c.11x FY27E earnings versus peers QLT and AJ Bell at c.14x and 18x. SJP

also screens with double-digit growth over the medium-term from margin expansion as Will Hardcastle, CFA

its Gestation FUM runs off to 2031. We believe there are a number of debates on the Analyst

stock that management need to address for the discount to narrow: will.hardcastle@ubs.com

+44-20-7567 9763

Qian Lu1) Gross flow growth outlook: This has been lower relative to history, given

uncertainties following the Middle East conflict, continued higher returns on cash (due qian-za.lu@ubs.com

to higher interest rates) and inflation potentially limiting clients' disposable incomes/ +44-20-7567 4657

capacity to invest.

Chloe Ryan

Associate Analyst