St James’s Place (SJP), one of the United Kingdom’s largest wealth managers, reported a slowdown in net inflows for the first half of 2026, citing changes in the pensions tax regime and shifts within its advisory network. Net inflows decreased to £2.7 billion from £3.8 billion during the same period last year, reflecting both evolving client behavior and the departure of some key advisory firms.

Chief Executive Mark FitzPatrick attributed part of the slowdown to upcoming pension reforms, which will bring pension pots within the scope of inheritance tax beginning next year. This prospect has prompted an increase in withdrawals from pension accounts as clients seek to avoid a new 40 percent levy. FitzPatrick noted that despite supportive market conditions, these tax changes have triggered changes in how investors manage their retirement savings.

The firm also faces challenges from changes in its adviser base. Several prominent advisory firms, including Prospera Wealth Management and Wellesley Investment Management, have recently left the St James’s Place network. Another significant partner, Sovereign Wealth, which manages approximately £3 billion of client assets, is reported to be considering a similar departure. Despite these exits, SJP highlighted that adviser numbers grew by 0.3 percent during the period, reaching 4,951, while the client base increased to more than one million. FitzPatrick described adviser movement as typical within the sector and emphasized ongoing growth in both adviser and client numbers.

Previously, SJP reduced the initial advice fees available to advisers and plans to shift fee payments from an annual to a monthly schedule starting March 2027, part of a broader review of adviser pay and benefits. These changes have coincided with competitive pressure from rival wealth management groups, including firms like Söderberg, which has attracted advisers departing from SJP and counts former SJP CEO David Bellamy among its leadership.

In parallel, Aberdeen, another major UK asset manager recently promoted to the FTSE 100, reported pre-tax profits of £276 million—up from £271 million a year earlier—largely boosted by gains on a 10 percent stake in Standard Life. However, Aberdeen faced net outflows of about £3 billion, primarily due to the loss of a £1 billion fixed income mandate and increased withdrawals across its investment and adviser divisions. Its Interactive Investor platform, catering to retail clients, recorded robust inflows of £6.8 billion, its highest on record, contributing to growth in assets under management to £107.7 billion.

Jason Windsor, CEO of Aberdeen, acknowledged ongoing challenges within the asset management industry, including shifts in client asset allocations and a competitive landscape for active management products. He expressed commitment to refining Aberdeen’s offerings and platform to regain sustainable growth in flows.

Meanwhile, Rathbones, a FTSE 250 asset manager, reported net outflows of £900 million in the first half of 2026, citing industry-wide pressure on active equity strategies. CEO Jonathan Sorrell emphasized the firm’s focus on maintaining its quality and value-driven investment approach and highlighted plans to expand emerging markets and Asian equity strategies, targeting outperformance opportunities in select areas.

Shares of St James’s Place and other asset managers experienced declines following the interim reports, reflecting investor caution amid evolving market conditions and sector-specific challenges.