Tatton Asset Management Reports Strong FY26 Growth and Confident Outlook in Trading Update

Tatton Asset Management’s FY26 update: 11% AUM/I growth and upbeat outlook

Tatton Asset Management has dropped a confident trading update for the year to 31 March 2026, flagging strong underlying momentum despite a chunky client mandate loss mid-year. Total AUM/I (assets under management and influence) rose 11.0% to £24.216 billion, underpinned by £2.806 billion of underlying net inflows and £2.456 billion of market and investment gains. The Board expects FY26 results to land towards the upper end of market expectations. Final results are due on 16 June 2026.

For context: Tatton is an on-platform discretionary fund manager (DFM) – it runs model portfolios and funds via adviser platforms – and also owns Paradigm, an IFA support services business. “Underlying” figures here exclude the terminated Perspective contract announced in January.

What moved the dial in FY26

The moving parts are worth a closer look. Underlying organic inflows were strong and consistent through the year, investment performance helped meaningfully as markets rallied, and the previously announced client exit reduced reported totals but not the underlying growth trajectory.

Headline reported net outflows were £0.523 billion after including the Perspective contract exit. Strip that out and the growth engine looks robust: underlying AUM rose 26.8% year on year, with underlying net inflows equal to 15.6% of opening underlying AUM.

Net inflows: steady all year, stronger in H2

Net inflows are the lifeblood of a DFM. Tatton posted £2.806 billion of underlying net inflows for the year, averaging £234 million per month – at the top end of its guidance, and accelerating in H2.

• H1 average monthly net inflows: £225 million
• H2 average monthly net inflows: £242 million
• Underlying inflows as % of opening underlying AUM: 15.6%

That second-half step-up, alongside better market performance, helps explain why AUM/I still finished 11% higher despite the big client termination in January.

Distribution muscle: 1,218 IFA relationships and growing

Tatton’s adviser-led model relies on depth and breadth of independent financial adviser (IFA) relationships. The Group added 108 IFA firms in the year, up 9.7% to 1,218. More IFAs typically means more client assets recommended into Tatton’s portfolios over time, which supports future inflows.

In plain English: stronger adviser distribution is a good leading indicator for growth, assuming Tatton keeps service levels high and performance competitive.

Paradigm: record mortgage completions and steady consultancy

Paradigm, Tatton’s IFA support arm, delivered another solid year. Paradigm Mortgages participated in a record £17.5 billion of mortgage completions, up 23.2% from £14.2 billion in FY25. H2 completions of £8.9 billion were 3.5% ahead of H1. New mortgage member firms totalled 99, taking the base to 2,014. Consulting member firms edged up to 433 (FY25: 425).

Why it matters: while Paradigm’s revenues are not disclosed here, higher completions and more member firms usually signal healthy activity and sticky adviser relationships across the Group.

Roadmap to £30 billion by 2029: still on track

Tatton reaffirmed its five-year Roadmap for Growth targeting £30.0 billion in AUM/I by 31 March 2029. After the first two years, the Group has added £6.612 billion, leaving £5.784 billion to go over the next three years. That’s roughly £1.9 billion per year to hit the target.

Given FY26 underlying net inflows of £2.806 billion plus market tailwinds, the target looks achievable if adviser momentum continues and markets don’t turn sharply against them. The Board’s confidence – expecting FY26 results towards the upper end of market expectations – adds weight to that view.

Positives, pressure points, and what to watch

What looks genuinely strong

• Underlying growth engine: 15.6% underlying net inflows on opening AUM and 26.8% underlying AUM growth demonstrate healthy client demand.
• Second-half acceleration: higher monthly net inflows in H2 suggest momentum improved as the year progressed.
• Market contribution: £2.456 billion of investment performance provides a material uplift versus the prior year (£0.6 billion).
• Distribution expansion: 108 new IFA firms to 1,218 should support future inflows.
• Paradigm momentum: record £17.5 billion mortgage completions point to strong adviser activity and a broadening ecosystem.
• Guidance tone: Board expects outcomes towards the upper end of market expectations.

What deserves a careful eye

• Client concentration risk: the previously announced Perspective contract cancellation reduced AUM by £3.329 billion. Underlying trends absorbed the shock, but it is a reminder that large mandates can swing reported numbers.
• Market dependency: £2.456 billion of gains came from market and investment performance. A tougher market backdrop would dampen that tailwind.
• Disclosure gaps: revenue, profit, margins, cash, and dividends are not disclosed in this update; we’ll need to wait for 16 June for the full picture.
• Macro backdrop: management notes ongoing geopolitical and economic volatility – a fair caveat for anyone managing client assets.

Key FY26 metrics at a glance

My take: quality of inflows outweighs the one-off hit

This is a strong operational update. The headline is the 11% rise in AUM/I to £24.2 billion despite losing a large client mandate. Under the surface, Tatton is doing what good DFMs should: adding advisers, attracting steady inflows at scale, and benefiting when markets cooperate.

The FY29 £30 billion target still looks well framed. The key things I’ll be watching at the finals in June are any commentary on client concentration, the durability of H2 inflows into FY27, and how Paradigm’s record volumes are translating into Group earnings – currently not disclosed in this update. For now, the tone is upbeat and, crucially, supported by the numbers.