LONDON (26 May 2026) – Net U.K. fund sales were muted in the first quarter of 2026 amid heightened market volatility and renewed tensions in the Middle East.
The latest Pridham Report, produced by ISS Market Intelligence (ISS MI), shows total retail net sales came in approximately -£5bn in Q1, broadly in line with Q4 2025. This is a negligible fraction of the over £1.5 trillion of total assets under management in the U.K.
Despite this, 56% of reporting fund groups experienced increased quarterly onshore and offshore net retail sales. While net sales were broadly flat, gross sales growth ended the quarter in positive territory, reflecting continued portfolio repositioning by advisers and investors. ISS MI said the trend also points to a changing of the guard with regards to portfolio construction, as portfolios are increasingly being outsourced to model portfolio services (MPS) and unitised multi-asset strategies. Such outsourcing decisions often lead to a portfolio seeing a significant turnover in the funds selected.
However, volatility did not drive investors decisively in any one direction, with flows spread relatively broadly across strategies and asset classes.
Asian equities, emerging markets, and absolute return strategies continued to attract attention as diversifiers, while multi-asset and unitised MPS solutions remained comparatively resilient. Money market funds also continued to hold investor interest, reflecting ongoing defensive positioning within portfolios.
Long-term active single-strategy funds and passive equity strategies both struggled over the quarter. Passive equity funds continue to show a pattern of depressed sales during periods of heightened volatility.
Benjamin Reed-Hurwitz, Report Author and Head of Research Development, EMEA & North America at ISS MI, said: “While net sales were muted in the first quarter, that only tells part of the story. Beneath the surface, there was still a considerable amount of portfolio activity as advisers and fund selectors continued to reposition in response to volatility and an increasingly uncertain geopolitical backdrop.
“What stands out is that flows were not moving in one clear direction. Instead, we saw continued demand for diversification across a broad range of strategies, from emerging markets and Asian equities through to absolute return and money market solutions.
“MPS and multi-asset solutions also continued to attract flows, although the picture underneath those allocations is becoming increasingly nuanced. In periods like this, it becomes harder to distinguish between genuinely new money entering the market and ongoing portfolio rebalancing within existing investment structures.”
| Rank | Fund Group | Onshore Retail Gross Sales £m |
| 1 | BlackRock | £10,916.4 |
| 2 | Vanguard | £9,541.0 |
| 3 | L&G | £6,918.9 |
| 4 | Fidelity | £6,767.6 |
| 5 | HSBC Asset Management | £5,037.8 |
| 6 | Artemis | £4,434.7 |
| 7 | Royal London Asset Management | £4,148.0 |
| 8 | Schroders | £1,852.5 |
| 9 | Invesco | £1,800.0 |
| 10 | M&G | £1,747.5 |
| Rank | Fund Group | Onshore Retail Net Sales £m |
| 1 | Vanguard | £2,618.0 |
| 2 | Artemis | £1,523.2 |
| 3 | Fidelity | £988.5 |
| 4 | Orbis Investments | £417.6 |
| 5 | HSBC Asset Management | £332.7 |
| 6 | Hargreaves Lansdown | £252.0 |
| 7 | Aegon Asset Management | £124.7 |
| 8 | Ninety One | £118.0 |
| 9 | T. Rowe Price | £51.7 |
| 10 | Royal London Asset Management | £43.4 |
“Offshore fund ranges are an important driver for many fund groups’ sales to U.K. investors. Several of today’s largest fund selectors are looking for the broadest selection of funds possible, leading to interest in many of the best-selling offshore ranges. Offshore fund adoption is particularly strong within the MPS and unitised multi-asset portfolios,” commented Reed-Hurwitz.
| Rank | Fund Group | Offshore Retail Net Sales £m |
| 1 | HSBC Asset Management | £865.0 |
| 2 | Man Group | £246.0 |
| 3 | L&G | £245.6 |
| 4 | Schroders | £202.9 |
| 5 | Aegon Asset Management | £175.9 |
On a group level, Vanguard led the onshore net sales table in Q1, thanks to strong passive equity sales and demand for its LifeStrategy multi-asset range.
Artemis followed, achieving record gross sales in Q1 thanks to high demand for its equity strategies, especially its global income fund.
Fidelity achieved record onshore retail sales during the quarter, led by strong interest in its passive equity strategies and fixed income range.
HSBC led the offshore net sales leaderboard in Q1 and also had a strong quarter for its mixed-asset onshore funds.
Orbis Investments carried over its strong momentum from recent quarters, achieving record multi-asset and equity sales.
For Aegon, both onshore and offshore high yield strategies proved a success story, although its broader fund range also experienced strong sales.
Looking forward, Reed-Hurwitz believes that the Financial Conduct Authority’s (FCA) targeted support regime could lead to fresh money entering the market.
He added: “With flows relatively subdued, it is understandable that the industry is paying close attention to initiatives such as the FCA’s targeted support framework. While it remains too early to judge the eventual impact, it reflects a broader push to increase participation in investment markets and encourage more consumers to engage with long-term investing.
“If targeted support succeeds in bringing more investors into the market, the opportunity for asset managers could be significant. And while targeted support looks to bridge the advice gap, it must be noted that engaging do-it-yourselves investors is also increasingly on the radar, a trend that spans the globe.”
The Pridham Report is a comprehensive report monitoring sales and asset trends in the U.K. fund market, using data supplied by over 45 of the largest fund groups operating in the U.K. For more information and to request access to the full report, visit https://www.issmarketintelligence.com/solutions/marketsage/the-pridham-report/
###
About ISS Market Intelligence
ISS Market Intelligence (MI) is a leading provider of data, insights, and market engagement solutions to the global financial services industry. ISS MI empowers asset and wealth management firms, insurance companies, distributors, service providers, and technology firms to assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business. Clients benefit from our increasingly connected global platform that leverages a combination of proprietary data, powerful analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry-leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards.
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,800 professionals operating across 30 global locations in 20 countries. Its approximately 5,500 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
Media Contact:
Georgia Reveley
Associate Director, Marketing
press@issmarketintelligence.com
