Rallying markets and record flows propel D2C assets to new highs in Q226

04 Aug 2026 Rallying markets and record flows propel D2C assets to new highs in Q2

Posted at 10:09h in by Bella Caridade-Ferreira

Equity markets staged a powerful recovery in the second quarter, boosted by soaring AI investment, a sharp drop in oil prices after the (first) US-Iran ceasefire and changes at Number 10. Investors were buoyed by the turnaround in events and delivered a strong ISA season with record quarterly gross and net flows of £27.3bn and £12.7bn. The combination of markets and flows propelled D2C assets to within touching distance of £600bn (£590.5bn), an increase of 11% over the quarter.

Stock market performance is a boon for scale players. This quarter’s asset bounce saw Hargreaves Lansdown smash through £200bn and interactive investor crack £100bn. Together, the two platforms now hold £313.8bn of D2C assets, 53% of the total.

Interactive investor was on a roll this quarter, breaking through the £6bn gross flows ceiling for the first time with £6.6bn, enough to knock Hargreaves Lansdown off the top perch for the first time on Fundscape’s records. Some platforms are fighting to hold onto assets, while others are stealing ground with sticky flows. Interactive investor, AJ Bell and Vanguard are a case in point: between them, they gathered £8bn, or 63% of total net flows. That stickiness is most pronounced at interactive, whose net sales lead widened from £838m to £1.4bn in the quarter.

Overall, Q226 was a record sales quarter for the D2C platform industry. The previous peaks were £21.4bn gross (Q425) and £11bn net (Q126), so this quarter beat both by a clear margin rather than edging past them. What’s more, the money that came in is sticking better than it has in years. Net sales as a proportion of gross sales hit 46.6% this quarter, the highest rate since 2022, and a marked step up from the 27.7% recorded in Q425. Put simply, for every pound that flowed onto platforms, less than 54p flowed back out in withdrawals or transfers.

Gemma Maher, Head of Market Insights at Fundscape, said: “A new prime minister, inflation that won’t budge and a war with no end in sight gave investors every reason to hold back this quarter. They didn’t. Robust net flows show direct investor appetite for investing is undimmed.

“This year we were home to an incredibly strong ISA season, but the landscape ahead may be less settled. The Burnham Bounce should give investors a lift, though stricter rules on cash interest and cash ISAs will offset some of that over the next six to 12 months. Despite these challenges, we expect the D2C market to continue to grow with Targeted Support playing a pivotal role.”

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Notes to Editors:

The Direct Matters report covers the direct market and is published by Fundscape. It has been running since Q121. For further information or background please contact: press@fundscape.co.uk