Key facts
- Utmost, a wealth firm planning a London IPO, saw inflows fall to £4.4bn in the first half of the year, down from £5.3bn a year prior.
- The company cited the tapering effect of UK tax changes, including capital gains tax hikes and inheritance tax inclusion for pensions, as the reason for the decline.
- Despite the overall drop, inflows in Utmost's European business doubled, and total assets under administration rose to £123.4bn.
- Client retention improved to 94.4 per cent.
Utmost, a wealth firm preparing for a London IPO, has reported a decline in inflows for the first half of the year. The company recorded £4.4bn in inflows, a decrease from £5.3bn in the same period last year. Utmost attributed this slowdown to the fading impact of changes to the UK tax system introduced in the 2024 Autumn Budget, which had previously driven approximately £1.5bn in one-off flows into UK products. These changes included former Chancellor Rachel Reeves' decision to increase capital gains tax rates and bring pensions into the scope of inheritance tax from 2027.
Despite the overall dip, Utmost noted that inflows across the rest of its business increased by 16 per cent. Specifically, inflows in its European business doubled to nearly £3bn, with clients engaging in wealth advice amid geopolitical events impacting equity markets. Total assets under administration grew by six per cent to £123.4bn, up from £116.3bn the previous year. Client retention also saw an improvement, rising to 94.4 per cent from 93.1 per cent, which the firm credited to its client proposition and adviser relationships.
Utmost, owned by private equity firms Oaktree Capital and Brookfield, specialises in cross-border wealth structuring and insurance for high-net-worth individuals. Owners are reportedly planning a £2.5bn float on the London Stock Exchange in September, which could provide a boost to the market amidst a slowdown in listings and a reduction in market size due to takeovers.