The Morning Briefing: UK passive funds capture 70% of Q2 net inflows as active flows slump
Good morning and welcome to your Morning Briefing for Friday 24 July 2026. To get this in your inbox every morning click here.
UK passive funds capture 70% of Q2 net inflows as active flows slump
Passive funds captured more than 70% of net fund inflows on UK platforms during the second quarter of 2026, as advisers and investors sought low-cost index tracking.
According to new data from distribution intelligence platform Finscape, UK funds gathered £4.6bn in net inflows across Q2.
Passive strategies dominated the allocations, bringing in £3.2bn, while active funds attracted £1.4bn over the three-month period.
Matt Storey: The Platform Borg III – The off-platformers guide to the galaxy
Well, I’m back for a third go-around, which means it’s official – my Platform Borg rants have definitely gone #biannual. Aren’t you lucky.
I hope you’ve had a good couple of quarters, but if all your eggs are STILL in one Borg-shaped basket, your friendly neighbourhood dolphin is back with yet another warning (I promise that will make sense later).
For those of you unfamiliar or in need of a recap, the Platform Borg is my characterisation of the all-encompassing provider blob, on which advisers nowadays tend to hold essentially all their clients’ wealth.
Quote Of The Day
The latest sell-off in AI-linked stocks is a reminder that markets can become fragile when too much of the global equity narrative rests on one theme
– James Flintoft, head of investment solutions at AJ Bell
Stat Attack
Over a third of non-retired people in their 60s expect to work for longer as a direct result of the state pension age rise, according to new research from the Standard Life Centre for the Future of Retirement.
The study highlights how financial pressures and the adequacy of savings are driving later-life working across the UK. It shows:
36%
Over a third of non-retired people in their 60s say they will need to work longer as a direct result of the state pension age rise.
38%
Nearly two in five 60–65-year-olds are working later in life to cover day-to-day bills and expenses.
37%
Over a third of working 60–65-year-olds say they are delaying retirement until they receive the state pension.
16%
One in six retirees have either returned to work (8%) or are considering doing so (8%) as the inadequacy of their retirement finances becomes clear.
15 million+
people across the UK are currently not saving enough for retirement.
Source: Standard Life Centre for the Future of Retirement
In Other News
HSBC Group has agreed to sell HSBC Life Singapore to Allianz for S$2.7bn (£1.6bn), generating an expected pre-tax gain of $1.8bn (£1.4bn) and boosting HSBC’s CET1 ratio by up to 15 basis points.
Expected to complete in the first half of 2027 subject to regulatory approval, the deal forms part of HSBC’s strategy to simplify group operations and double down on core competitive strengths.
Upon completion, HSBC will sign an exclusive 15-year bancassurance agreement to distribute Allianz insurance products to its Singapore retail and wealth clients, receiving an initial S$0.2bn cash lump sum.
Rosemount Financial Solutions (IFA) has added 12 new advisers in Q2, spanning mortgages, protection and financial planning.
The recruitment drive follows record financial performance, with total business revenues surging 39% year-on-year across the first half of 2026, driven by a 60% leap in investment revenues.
The new recruits comprise both Appointed Representatives and advisers moving from direct authorisation, including representatives from Investor First Broker, Castle Stonebridge, and JW Private Finance.
Chief executive Ahmed Bawa attributed the network’s ongoing growth to its personalised support structure and strong collaborative company culture.
From Elsewhere
Burnham’s cost of living crusade derailed by $100 oil prices (The Telegraph)
Trump imposes forced labour duties on 60 trading partners as 10% US tariffs expire (Reuters)
Barclays trading boss hunts for growth Against Wall Street giants (Bloomberg)
Did You See?
The risks, limitations and regulatory implications of using artificial intelligence in financial advice will come under scrutiny at Money Marketing Interactive London 2026.
The panel, titled AI – The Limitations and Repercussions, will explore how advice firms can benefit from the technology without exposing clients or their businesses to unacceptable risks.
AI is increasingly being used to support meeting notes, client communications, data analysis and administrative processes.
