After honouring the commitment to the unchanged 72p FY dividend, the board has opted to restore cover by adopting a (min) 50% payout policy. It was clear with the shares trading on a 15%+ yield that there was no credit being ascribed. We also take this opportunity to adopt more cautious flow/fee margin assumptions given the challenging macro conditions which persist. This drives a 13-14% reduction to our earnings estimates. We continue to see upside, awaiting a return to net inflows, ascribing a 14x PER to arrive at a 620p 12m TP (from 720p).
