UK fund flows picked up modestly in September, rising 5% year-on-year, according to Investment Association data cited by UBS.
The recovery followed a weak August, though overall third-quarter flows were still down 1% compared with last year.
UBS said the drag came mainly from “UK and non-UK intermediaries, both down -9% and -27%, respectively”, while “UK fund platform flows were up +12% year-on-year, with discretionary fund manager flows also up +2%”.
Analyst Nasib Ahmed noted that attention is now turning to the 26 November Budget, which “remains a key overhang for UK stocks, with tax rises expected.”
However, he added that lower interest rates could help wealth managers such as St James's Place PLC (LSE:STJ), reducing client cash holdings and supporting inflows.
UBS also flagged AI as an emerging disruptor to UK advice businesses, citing research showing that 56% of UK adults used AI tools to manage money in the past year.