Utmost, the wealth management firm backed by private equity giants Oaktree Capital and Brookfield, has reported a slide in inflows during the first half of the year.
The group recorded £4.4bn of inflows in the first half, a notable decline from the £5.3bn posted in the same period the prior year.
Utmost attributed the fall to a slowdown in activity that followed a surge driven by changes introduced in the UK government’s 2024 Autumn Budget.
The Budget, delivered by former Chancellor Rachel Reeves, prompted wealthier Britons to act swiftly in response to hikes in capital gains tax rates and the decision to bring pensions into the scope of inheritance tax from 2027.
That scramble generated roughly £1.5bn of “one-off flows into UK products,” which artificially inflated the prior year’s figures and made this year’s comparison more challenging.
Despite the overall dip, inflows across the rest of Utmost’s business increased 16 per cent during the first half, signalling underlying commercial momentum beyond the tax-driven activity.
Chief executive Thompson struck an optimistic tone on the firm’s prospects, saying: “This momentum is already translating into increased sales across our key markets.”
He added that “the breadth of our distribution model…positions us well to capitalise on the highly attractive growth opportunities in both of our core and emerging markets.”
Utmost specialises in cross-border wealth structuring and insurance policies for high net-worth individuals, giving it a distinctive position across international markets.
Its owners are reportedly planning a £2.5bn float on London’s stock market in September, which would represent one of the more significant listings the exchange has seen in recent years.
A successful listing would offer a timely boost to the London Stock Exchange, which continues to struggle with a slowdown in new listings and a shrinking pool of publicly traded companies.
Takeover activity from private buyers has reduced the size of the market to its lowest level ever, with stalwarts including Schroders and Beazley among those snapped up this year.
Utmost’s European business delivered a stronger performance, with inflows doubling compared to last year and reaching nearly £3bn as clients engaged more actively with wealth advice amid geopolitical turbulence in equity markets.
Total assets under administration grew six per cent to £123.4bn, up from £116.3bn in the prior year period, reflecting steady growth in the firm’s overall client base.
Client retention also edged higher, rising to 94.4 per cent from 93.1 per cent, which the firm credited to the “long-term attractiveness of the group’s client proposition and enduring adviser relationships.”